of actions being taken to protect the border. >> president trump is taking desighsive action to call on méxico to get further action to intervene in massive flow of people that are coming north from central america to our border. dagen: vice president pence talked about usmca, canada, méxico trade deal but still waiting for congress to act, he hopes to pass this summer. china trade new round of tariffs on american goods said to go into effect tomorrow. maria's exclusive interview coming up. trade fears hitting those markets, you really saw the selloff pick up stream when president trump announced new tariffs on méxico, 284-point loss at the moment after a bit of rebound. yesterday, dow, and nasdaq all managed to eke out small gains, again, we still are long-term yields below shorter-term

yields. worries of recession on the horizon. we have losses of 1% or more across those markets n asia overnight stocks mostly in the red with only korea showing a slight gain, here to break it all down with me greg gutfeld, national review reporter, all around great gal kat kempf and mike murphy, welcome to all. >> good morning. dagen: maria is interested in this that we've got the manufacturing purchaser's manager index out of china, fell, contracted in the month of may, we got that overnight, drop bigger than expected but mike, what do you make of surprise announcement on tariffs? >> the market doesn't obviously

like it. if the question can this make things worse, obviously it's yes, if you look a little bit deeper, what are the odds now of rate cut, they are gone up significant, is that part of the president's overall plan, i'm not sure but hopefully that will get work out and right now the markets don't like it and it could get worse. dagen: jonas, this is not good. >> doesn't make a whole lot of sense unless usmca was falling apart. that was barely going to happen. trump had to come off the tariffs. it was going to raise minimum wages in méxico, that was one of the problems with nafta, you could pay people so little in méxico and they would be work here illegally, but that would be less of a situation, improvement that is were made.

you would be surprise, that would be the best solution forward to lower -- >> guacamole is going to get very expensive. dagen: it is, you talk about avocados largely come from méxico. >> méxico. dagen: it's produce, it also hurt hurt exports from our farmers who have been hammered by the fight that we've gotten into with china and the supply chain for automobile manufacturers incredibly complicated between méxico and the united states and it just simply disrupts business, jonas, makes it harder to operate and create jobs, does it not? >> it's not that trump is wrong and they should be doing more so we don't have to, but that doesn't necessarily mean, look, avocado point, the mexican government can't keep the mob out of the avocado people and can't people across the border nor our military that are less

corrupt than police. dagen: méxico deported more central americans this year than the united states have, so they are trying to do something to prevent the flow of illegal immigrants into the u.s. turning to vice president mike pence, he sat down with exclusive interview in ottawa, canada yesterday moments after joint conference with canadian prime minister justin trudeau where vice president was rallying support for the usmca trade agreement. maria: you are back from a meeting with justin trudeau, how will you get usmca across the finish line? >> well, first and foremost let's recognize that the american economy is booming, 5.8 million new jobs in the last quarter 3.1% growth, more importantly wages are rising at the fastest level in more than 10 years and we have seen 500 manufacturing jobs created and the president has done all of

that because he's been rolling federal red tape, unleashing american energy, but also a central pillar is become free and fair and reciprocal trade but we negotiated in the usmca, the president drove a hard bargain, american workers first and we are taking the message not just to capitol hill but literally been traveling across the country carrying message to farms, factories and we have every confidence that as the american people let their voice be heard, that the usmca would be approved by the congress of the united states, but we are just determined to carry the message of what this will mean for jobs, for growth, for opportunity and we think it's absolutely essential just like they are doing here in canada, the congress move on approving is u.s. smca and approving usmca

this summer. maria: you want this approved by this summer and speaker pelosi said she's not sure she will bring it down to the floor for vote. how do you convince her to bring it down for a vote assuming that it does pass once it gets down on the floor? >> we have been in regular consultations with democratic in the house and republicans in the senate. what usmca is going to mean in their districts, up in minnesota, collin peterson's district, the impact that it would have in minnesota. you know, i think the american people know that trade means jobs but when it comes to nafta, we saw lots of jobs head south of the border so the president took this issue before the american people like many of predecessor had, it really is

interesting as i talk to some leaders here in canada, they noted many people that had been elected had been critical of nafta but only president trump that stepped up and renegotiated trading relationships with canada and méxico. we believe as we carry message forward to the american people that the democratic leadership in the congress and we know with strong support of republican leadership in the senate will move this bill to the floor and if it's put on the floor of the copying we know usmca will pass. maria: the president lifted the tariffs on canada and méxico on steel and aluminum. >> most important that the president impose those tariffs, look, our steel and aluminum industries are absolutely sirr to our -- essential to our natil security and the president took decisive action and we have seen roaring across the country.

the president was able to make an arrangement, principally while still reaching agreement with us about volume in the united states, we will still be standing by steel and aluminum jobs and american farmers can breathe easier, with the president negotiating a trade in the impasse it has really opened the way to usmca to be approved in the united states and in canada and méxico. maria: some democrats want a stronger enforcement mechanism in place so méxico in particular keeps labor laws, they want changes to drug patents, buy logics getting 10 years of protection. has any of those things been addressed, have you made changes to the trade ideas as a result of the demands?

>> well, let me say discussions are all underway with leaders on capitol hill on implementing legislation, we are in negotiations with democrats in the house of representatives to bring about some of the changes in the way that the usmca will actually be unpacked for the american people and when it comes to drug prices, i tell you you never met anybody more determined to lower drug prices for american people than president donald trump and we are so proud of the reforms the president has already advanced. we know it's going to result in lowering of drug prices over the counter and so as we work through all the deals with usmca the american people can be confident, this president will continue to fight to lower drug prices for them. maria: let's go through some of the most important issues and some of the most important things that usmca does relative to what nafta was doing. it's eliminating some of the barriers that prevent farmers

from selling into canada and méxico. it's boosting wages but you tell me what you think is most important about usmca and how it impacts the american people. >> well, let's go back to what nafta did, there were elements of nafta without creating an incentive for companies to factories in méxico outside of the united states and what we have done in usmca by creating level, we are literally protecting american jobs, we are removing the incentive for companies to in effect go south of the border to chase lower wages, that's going to help american workers, protect american jobs but also it's also going to we believe bring wages up in our neighbors to the south, i mean, the simple fact is that in my home state of indiana we literally saw almost entire communities hollowed out as you saw factories close, automotive factories close and go south of the border, those

incentives are out of the usmca huge win for american workers and american jobs. maria: so what is the timing on this, when will the president officially submit usmca to congress and they have 60 days to vote on it, you want this done by this summer, when do you expect the president to push this through officially? >> we are in discussions as we speak, the u.s. trade representative will be on capitol when congress reconvenes this coming week and in discussion with members of the democrat majority about implementing legislation. i can tell you president trump is ready to go and as soon as we believe there's a pathway forward for approval we will send the usmca to the hill but, look, there's a lot that washington, d.c. arguing about, a lot the media spends its time on, this ought to be an issue that brings people together, republicans, democrats, left, right and center because the

usmca will meet jobs and more growth and just think, maria n this growing economy, if we pass and put into effect the largest trade deal in american history, we are going to see growth like we have never seen in recent memory in this country, and so we think usmca is an idea and time has come and as soon as we see a pathway, i know the president will send usmca to the hill and speaker pelosi puts it on the floor we know it'll pass. maria: next couple of weeks. >> we will leave the decision to the president but our team will be on capitol hill this week talking to leaders in both political parties and seeing what the pathway is, what the timing is, but the american people can be confident that president trump has negotiated a deal in usmca that really puts american jobs and american workers first, carry the message to capitol hill and urge them to take this measure up this morning. maria: gdp in your opinion just

this week at 3.1%. this is a time that there's difficult relationship between president and congressional democrats. the president left meeting on infrastructure because of what nancy pelosi said walking into the meeting, how much of a distraction is this that it's constant attack on the president, they don't want him to have a victory? >> the president said in japan during his state visit with prime minister abe that he believes congress ought to be able to pass usmca, we will have differences as congress continues to spend so much time on investigations, chasing after baseless allegations. i can assure the american people this president is going to continue to remain focused on this economy, that's how we got done everything we've gotten done so far. i mean, the largest tax reform and tax cuts in american history, this president has cut back more federal regulation in 2 and a half years than any president in american history, unlearned american energy, uscma

along with other trade agreements with south korea and evidence that this is focus on jobs and continue to maintain focus until we get usmca across the finish line. dagen: tune in next hour top of 7:00 a.m. hour for part 2 of maria's exclusive interview with vice president mike pence. coming up futures pointing to a major selloff this morning. it was surprise announcement that president trump will start hitting mexican import in the u.s. to stop immigration. more of maria's interview with the vice president, stay with us .

2,000 fence posts. 900 acres. 48 bales. all before lunch,

which we caught last saturday. we earn our scars. we wear our work ethic. we work until the work's done. and when it is, a few hours of shuteye to rest up for tomorrow, the day we'll finally get something done. ( ♪ ) can the past help you write the future? the day we'll finally get something done. can you feel calm in the eye of a storm? can you do more with less? can you raise the bar while reducing your footprint? for our 100 years we've been answering the questions of today to meet the energy needs of tomorrow. southern company the doctor's office might mejust for a shot.o but why go back there when you can stay home

with neulasta® onpro? strong chemo can put you at risk of serious infection. in a key study neulasta® reduced the risk of infection from 17% to 1% a 94% decrease. neulasta® onpro is designed to deliver neulasta® the day after chemo and is used by most patients today. neulasta® is for certain cancer patients receiving strong chemotherapy. do not take neulasta® if you're allergic to it or neupogen (filgrastim). an incomplete dose could increase infection risk. ruptured spleen, sometimes fatal as well as serious lung problems allergic reactions, kidney injuries and capillary leak syndrome have occurred. report abdominal or shoulder tip pain, trouble breathing or allergic reactions to your doctor right away. in patients with sickle cell disorders, serious, sometimes fatal crises can occur. the most common side effect is bone and muscle ache. if you'd rather be home ask your doctor about neulasta® onpro. pay no more than $5 per dose with copay card.

dagen: breaking news, president trump curving méxico to do more on illegal immigration by imposing tariffs with méxico, starts with 5% tariffs on mexican goods starting june 10th and would go up to 25% if nothing is done according to president by october the first. vice president mike pence telling maria that the president will push for action from congress and méxico. >> we have a crisis on our southern border, you traveled and we are on track to have more than a million apprehensions in southern border and yet congress, some in congress continue to focus on investigations, baseless allegations while -- while literally last month alone more than 118,000 people were apprehended at our southern border and congress continues to refuse to act to close the loopholes that are being used by cartels and drug traffickers to

entice to make long journey to southern border. maria: can you tell us anything about that, what we should expect from the president? >> what i can tell you the american people can be confident that this president is going to continue to take such action necessary and to see the congress do its job to address the crisis on southern border and to have neighbor to the south in méxico to do more to prevent this massive wave of people that are coming across the border. dagen: kat, your reaction to this, maybe some agree on end goal but sur certainly surprise but americans that will get hit new tax and wouldn't help a mexican economy, mexican economy was contracting, mexican has fewer resources and ability to curve central american illegal immigration.

>> right, it's not potentially on american consumers, it is, we have paid for all of that in terms of taxes and price increases in goods and now pay more on things like avocados as we mentioned earlier, i understand the goal, i really do, but you have to make sure not to hurt american citizens in the process and that's exactly what the tariffs will do. dagen: mike, this is misuse of authority and counter to congressional intent i support nearly one of president trump's immigration policy but this is not one of them. >> a lot of that but we heard about tariffs and how bad they are when they started with china and i think more people have come around to it, so i think you have to let this play out a little bit and hopefully ends up working in a positive way. >> the last tariff thing based

on national security made no sense, there's no national security with steel, we are not going to war with tanks, there's more of security issue with people coming across the border, so totally reverse. dagen: coming up futures pointing to selloff on news of this mexican tariff, we will be right back.

dagen: let's take a look at futures this morning, markets managed to eke out a small gain yesterday but this is largely reaction to president trump announcing that tariffs on mexican import starting on june 10th, starts at 5% tariff and then will go up to 25% by october the first. what to make of this? bruce point capital ben, ben, good to see you, you sat down, i'm a short seller, you enjoy

markets going down, take a view from 35,000 feet for us and what this move by the president means for overall economic backdrop and the markets? >> last time i was on in february we warned that market had technical correction and investors needed to brace for the new normal trade wars and here i said today trade wars are escalating, you know, what does that mean? investors really need to play defense, need to understand, you know, what they own, we do forensic look at companies that we recommend as shorts so with that means, investors need to understand the supply chains of where the products are coming, where the companies sell to, what the embedded risks are and make sure they are comfortable with those positions. dagen: jonas. >> individuals that use any strategies like that, seems like does bad job short-selling,

market neutral consistently perform very badly, how would investor, if you can imagine, i'm talking about van guard, everybody, the fear is okay, something goes wrong, well-quality stocks and high-quality stocks, why does it go back and does it ever work without a real source or just information. >> we live in an information age where there's plenty, we read all of the sec filings, we always recommend listening to conference calls, try to ask questions, again, understand what the management strategies are particularly in a changing fluid environment right now. we have seen certain companies have to reposition their entire supply chain, what does that mean from long-term strategic position, a company might be invested. you have to get comfortable with the management team as a plan and get comfortable with the valuation you're pay if r the stock, doing research, doing homework will always get

investor an edge. dagen: many morning, mike, investors are not only trying to digest new tariff threat on méxico but we found out activity in chinese factories slumped in the month of way, first critical information after chinese new year and the like, what do you make of what's going on in china versus the united states and does this -- we were talking about this earlier, does this force the federal reserve's hands potentially and that could be benefit to the markets? >> i think it does force the fed's hands. if you're in the united states china doing more bad than the u.s. economy i don't think that's a win for us, i don't think that helps anybody. so you would want the trade tariff deal, the trade war to be over so chinese economy can grow and be a good trading partner with us and like looking for shorts in the markets, if the trade war is over, would you then say, look for another reason to short the market or do

you think that would lead to rally in the markets? >> it certainly would lead to rally in the market but change our focus of the companies we would look to short, we are starting to see a little bit of a crack in late cycle here, we've had headline ipo's like uber and lyft, they're already down 15, 20%, we've also had companies with unproven business models losing a lot of money, high valuations. dagen: nice to see you, so much to talk about ben axller. cheryl: monitoring this, dagen, pompeo is meeting with german chancellor angela merkel in berlin, tensions have risen, of course, between u.s. and iran, there are the two, secretary mike pompeo and angela merkel right there. the secretary will be visiting switzerland which represented washington's interest in tehran.

big visit for secretary of state. back at home mentioning it, uber reported a billion dollar lost since going public earlier this month. uber blaming lost on competition from other ride-hailing and delivery companies, price wars are starting to ease in bigger markets, there are the numbers on the screen, uber plans to keep spending to expand operations. stocks are up about 1 and a quarter percent and in amazon, they are getting to the cellular business, reuters reporting the tech giant looking to buy boost mobile from sprint and t-mobile. t-mobile ice wireless network for at least 6 years, the company also reportedly looking to buy wireless spectrum, t-mobile would consider releasing, amazon stock under pressure in the premarket down 2%. deliveries 7 days a week, fedex

to expand options for customers, now saying it'll be begin offering residential delivery every day starting next year, fedex's president told journal that shopping is 7 days a week. those are your headlines right now, dagen, thank you. dagen: coming up futures pointing to selloff this morning, it's trade-related stocks are getting hammered on this méxico-tariff threat, general motors and ford, those stocks premarket are down 4 to 4 and a half percent and investigating the investigators, attorney general william barr speaking out on the mueller report, that's next.

itso chantix can help you quit "slow turkey." along with support, chantix is proven to help you quit. with chantix you can keep smoking at first and ease into quitting. chantix reduces the urge so when the day arrives, you'll be more ready to kiss cigarettes goodbye. when you try to quit smoking, with or without chantix, you may have nicotine withdrawal symptoms. stop chantix and get help right away if you have changes in behavior or thinking, aggression, hostility, depressed mood, suicidal thoughts or actions, seizures, new or worse heart or blood vessel problems, sleepwalking, or life-threatening allergic and skin reactions. decrease alcohol use. use caution driving or operating machinery. tell your doctor if you've had mental health problems. the most common side effect is nausea. quit smoking "slow turkey." talk to your doctor about chantix.

the cloud i need? it has to keep up with sales, supply chain, inventory - ♪ ♪ it needs to track it all, from cincinnati to singapore. ooo! ♪ ♪ and protect it all. customer records, our financials, they better be secured. but i also need easy access, to manage data across my clouds - no matter where it lives. ♪ ♪ so if an auditor shows up, i can be a step ahead. that's the cloud i want. is that to much to ask? expect more from your cloud. ibm cloud.

dagen: welcome back, i'm dagen mcdowell in for maria bartiromo, friday may 31st, top stories at 6:30 a.m. eastern. breaking news this markets in selloff mode, president trump

threatens tariffs in méxico, import into the united states over immigration, the president says he would impose escalating tariffs starting at 5% beginning on june 10th, moving up to 25% by october the first potentially, trade fears hitting the markets and hard, a 282-point lose on dow futures and it is trade related stocks, again, there's a lot of cross-border supply chain activity particularly among automakers between méxico and the united states, that disrupts business, these tariffs, general motors stock down 3 and a half percent in premarket. eke out small gain, still on pace of worst month since december. in europe we have losses across the board, all 1% are higher, england, france and germany and in asia overnight markets in the red except for slight gain in south korea. u.s. and china trade, new round of tariffs on american goods set to hit tomorrow, meantime

chinese technology giant huawei reportedly ordering employees to cancel meetings with u.s. contacts, maria sat down with vice president mike pence where he discussed china and the dangers of huawei. >> the whole issue of huawei it's an issue of national security. huawei is in effect a wholly-owned subsidiary of the chinese communist party. dagen: more of that interview coming up at the top of the hour. moving on, let's go to the investigating the investigators and also the mueller report, attorney general bill barr speaking to cbs after robert mueller's first public statement this week. >> i personally felt he could have reached a decision, he could have reached a conclusion, the opinions that you cannot indict a president while he's in office but he could have reached a decision as to whether it was criminal activity, but he had his reasons for not doing it

which he explained and i'm not going to argue about those reasons, but he didn't make the decision, the deputy attorney general general rod rosenstein and i felt it was necessary for us as the heads of the department to reach that decision. dagen: joining me now he's written extensively about this and he can tell you everything that you need to know about the road ahead, former federal prosecutor fox news legal analysts andrew mccarthy, andy, so good to see you this morning. >> good to be with you, dagen. >> andy, what is the road ahead and what do you make of bill barr's comments, do you think ultimately that the democrats do get bob mueller to testify in front of congress behind closed doors or even in public because he seems reticent to do that in statement earlier during the week? >> well, let me start with that, i think, dagen are probably savvy enough to realize, i think jerry nadler certainly is that it doesn't get better for him

than the way mueller left it in his press statement the other day and basically he did a connect the dots thing in which he could been interpret today say that he thinks he probably had a prosecutable case but in this system it's for congress not federal prosecutors to address presidential misconduct, so i don't see how if he testified it would get better for nadler that way because in terms of the factions of congress particularly on the hard left that would like to see the president impeached, he very much mueller did strengthen their argument that if they don't deal with trump he's effectively above the law and no one will deal with him, so i think from nadler's perspective that would be as good as he could get it.

i think the republicans, on the other hand, probably have a lot of questions that they'd like to ask mueller. i know i sure would. dagen: let's start when where you knew there was no conspiracy, it was probably between last fisa right when mueller was getting feet wet as special counsel and the fall when it would have to have been renewed and it wasn't. these questions will never get answered? >> well, you know, he can be called but it's interesting the democrats were the ones who were sort of demanding that he come in and testify. after the gift he gave them the other day it'll be interesting, now the republicans i think will be agitating for him to testify and democrats to decide whether that happens or not. they are the rule-making body,

they can stop witnesses from coming in but i think there may be enough clamber for mueller between the noise republicans will make about it and the noise the media will make about it that they will have to bring him in. if i were nadler i wouldn't want him. >> you wrote after mueller statement that congress does not need prosecutable offense, misdemeanors can be felonies. american people are going to see attempting to impeach a president for obstructing a crime that doesn't exist. >> yeah, well, you know, the thing about impeachment, dagen, it's a political process, not a legal one, it's got a lot of legal to it, essentially political, so what i think they'll do is slowly begin to actually continue the kinds of hearings that are already going

on in the judiciary committee, the intelligence committee and the oversight committee and they'll have one and a half on the polls to see if they get any traction or not because i think the smarter strategic people in the democratic party are weighing the -- the angst or order that the base of the party has to impeach trump against the feeling of the rest of the country. i think at least two-thirds would not see that happen. they feel good to impeach trump and they had the numbers if they can hold the democrats and the trump-friendly districts, they can get articles of impeachment passed but the object of the game for them has to be to hold congress and try to win the election in 2020 and if this

blows back on them and backfires it's from their perspective it's a disaster. dagen: nancy pelosi will be asked about this continually, she was on jimmy kimmel last night talking about die word. >> when we go down the path and has to be clear to the american people and hope it would be clear to republicans in the united states senate. >> so are you saying that you want to make sure everybody is on board before you would get into something like impeachment? >> no, no, well, we are on a path of getting information, for public deserves to know the truth. when you see what they say, i didn't know it was wrong to talk to russians about this, i didn't know. how do you explain to kids in the hood when they're approached by law enforcement and they said, well, i didn't realize i was supposed to do this or not, we were supposed to know.

these very wealthy people with high-priced lawyers can get away with saying i didn't know. >> right, that's why we need you to get in there and take care of this. dagen: yeah, take care of it because the liberals don't like the president, they don't like his behavior and how he speaks, but andy, what the heck is she talking about? it was almost 2-year investigation, there were 500 search warntsz, searching and sea -- seizure warrants. they can read almost entire mueller report, what is he talking about? >> i know what she's not talking about is bill clinton taking half a million dollars for 20 minute speech in russia while the uranium one transaction was in front of the obama administration including his wife's state department.

i think what she's referring to which is not crazy and she's quite right, if you're going to pull trigger on impeachment you need to build political support for it. the only reason we've had 3 real impeachments, andrew, johnson and clinton and one has been moved from office. nixon didn't get impeached, he resigned, but the reason for that, dagen, is the super majority requirement in the senate where you have to get two-thirds to remove the president means that unless you have conduct that's so egregious that it cuts across partisan lines and there's a real consensus in the country that the president has to be removed. it's not wise to go down this road. i think if we learned anything from the clinton episode it's that, you know, you could have a million impeachable offenses but if the country doesn't want the president removed they're probably going to take it out on the people who try to remove

them. dagen: andy, so good to see you, so much to talk about, we didn't get to investigating the investigators, they'll be more time for that, again the ig report probably coming out at the end of next month, great to see you, andy. >> thanks, dagen, have a great weekend. >> you too. market selloff at the open after president trump threatens 5% tariffs on méxico plus general motors new investment in an american plant, gm stock dragging down the markets this morning, it's off by more than 5%, gm, again, big supply chain between méxico and the united states getting hammered, more after this.

dagen: take a look at futures, futures, been rough month for stocks overall and this news from president trump about the tariffs on mexican import into the u.s. that will begin in june, starting at 5%, it is hammering trade-related stocks, let's take a look, why is general motors down 4 and a half percent at the moment? it was down more than 5%, ford motors down 4%, gm has a lot of cross-border activity manufacturing in méxico but also the supply chain run across borders as they do with canada. this is disrupt i have to business even in the short run, how do you manage a business

when your parts potentially are going to be more expensive or will cars made in méxico be more expensive in the u.s., that's rattling the markets, apple has been hard hit again with threat of every dollar of import in the united states being hit with tariff by this white house, that's the potential and it would certainly raise the price of an iphone, apple stock is down double digit percentages this month. let's move onto cheryl, kim jong un reportedly executed north korea's special envoy to the united states, hey, cheryl. cheryl: envoy reported executed along with four high-level officials over failed hanoi summit with president trump. this is according to south korean newspaper. the top diplomat, apparently sentence today hard labor since the failed summit kim jong un has resumed missile testing we

should add. good news if you're shopping for a home, mortgage rates falling below 4%, now 3.99%. this is from freddie mac, a percent lower from november highs, and speaking of two mega million mansions, estimated 50 extremely high-end homes built in the area some costing hundreds of millions of dollars. one too many. those are headlines back to you. >> they all look like sleazy casinos on the inside. pay $50 million for what looks like the inside of a rio. [laughter] dagen: no, they are really unattractive homes and they'll be torn down in 10 years, so good investment. 276-point loss on dow futures,

again, this is an economy in the united states that has been looking a little weak, this is concerns that you see in the markets, stay with us because when others take rain checks... ...we take the wheel. with 3-wide seating, heat & a/c. this is the coolest, most comfortable gator™ yet. nothing runs like a deere™. run with us. ♪ test drive a gator™ xuv835 at your john deere dealer today. can the past help you write the future? can you feel calm in the eye of a storm? can you do more with less?

can you raise the bar while reducing your footprint? for our 100 years we've been answering the questions of today to meet the energy needs of tomorrow. southern company the latest inisn't just a store.ty it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome.

dagen: let's take a look at future, this was triggered the selloff by the announcement that the u.s., president trump would prepare to impose tariffs on méxico, tariffs on import into the united states, again, out of nowhere this was his bigly announcement and it's rattling markets, trade-related stocks all down, take a look at general motors down 5%, let's move onto something lighter, bigger, godzilla, king of the monsters returns, debuting in theaters

today, joining us in the fox michael tamaro. give me godzilla, my friend. >> probably pulling $53 million this weekend coming at number one. behind the initial one that pulled in 93 a couple years ago but the big story this weekend, dagen, is rocket man coming at number 3, elton john musical biopick, pull around $20 million, made $40 million, it is fabulous. it is everything bohemian rhapsody should have been. elton sings in the movie, he's fantastic. dagen: wait, he sings? >> yes, he sings and now --

>> bo rhap. >> that's what they call it in the biz. no one has performed his song as good -- dagen: kat, what would you see this week, the horror movie? >> i mostly watch horror movies and then happy gilmore over and over again. [laughter] >> that's what my movie assortment is. dagen: this movie looks good, michael. >> the critics have not been big fan of it. the movies are made for about 2 hours and 17, $20 million. octavia spencer is great at what she does. normally i would say yes but so far out from award season, the real thing turning around in

paramount, they are looking to make movie at the movie. dagen: money talks and oscars, you know where they go. good see you, michael tamaro, mike pence straight ahead with maria in exclusive interview. stay with us moving? that's harder now because of psoriatic arthritis. but you're still moved by moments like this. don't let psoriatic arthritis take them away. taltz reduces joint pain and stiffness and helps stop the progression of joint damage. for people with moderate to severe psoriasis, 90% saw significant improvement. taltz even gives you a chance at completely clear skin. don't use if you're allergic to taltz. before starting, you should be checked for tuberculosis. taltz may increase risk of infections and lower your ability to fight them. tell your doctor if you have an infection, symptoms,

or received a vaccine or plan to. inflammatory bowel disease can happen with taltz, including worsening of symptoms. serious allergic reactions can occur. for all the things that move you. ask your doctor about taltz. woow! yeahhh! there we go! this memorial day, start your summer off right in a new chevrolet. oh, wow!! it's time to upgrade. you guys out did yourselves there. i'm gonna go and get a chevy. an exciting summer begins at your chevy dealer.

and now, during the chevy memorial day sales event, get 0% financing for 72 months on these select chevy models. or current gm owners can get thirty two fifty total cash allowance on this colorado. find new roads at your local chevy dealer.

dagen: good morning, i'm dagen mcdowell in for maria bartiromo, friday may 31st, breaking news right here right now markets selling off as president trump threatens tariffs on méxico over immigration. this bigly announcement well, shocked investors, the president plan to go impose escalate tag riffs starting at 5% june 10th, tariffs could go up to 25% by october 1st, if méxico doesn't do more to curve the flow of central american immigrants, illegal immigrants into the united states. maria sat down for exclusive interview with vice president mike mike pence and talked about usmca and when it could finally

be passed. >> president trump has negotiated a deal in usmca that really puts american jobs and american workers first and carry that message to capitol hill and urge them to take this measure this summer. dagen: vice president pence also discussing china trade as new round of tariffs on american goods set to go into effect tomorrow, exclusive interview coming up. trade fears hitting markets, let's take a look at futures this morning, 275 point loss on the dow futures, if you look at chart last night of when this news broke about the imposition of tariffs on mexican import in the u.s., markets took a nose dive, trade-related, general motors, apple, apple more impacted by what's going on with china but certainly general motors has cross-border activity between méxico and the united states, that stock hammered this morning down on almost 5%.

yesterday's markets managing rebound. let's take a look at europe, european markets are down across the board in england, france and germany off their lows of the morning certainly in england and asia overnight, markets mostly in the red there, south korea showing a slight gain. here to break it all down fox news contributor geg -- greg gut felt reporter, kat kemp. mike, is our economy in a position that we can handle this, the yield curve, 10-year year below the 3-month yield, inverted a sign that the fed could be forced to cut rates but maybe we are headed towards recession and now this. >> yes, so i think the short answer is, yes, the economy can handle this, the stock market, though, has had a pullback and you don't want to give it a reason to sell off more because a lot of times selling begets more lower, more pressure on it.

you hit an important point that now odds of the fed cutting rates to boost economy is near certainty this year. we will get rate cut and hopefully that will help and we know the president is watching stock market closely and hopefully thought where it won't affect the stock market. dagen: money flowing at and yield falling this morning, what do you say? >> tariffs on money coming in yet, always the top destination for money during any economic slowdown. you know, i don't know what to make of all of this at this point. the president, if he wants to do something about the border and he's hand strong. he goes to tariffs because you can play national security angle. from this video, pence sounds like it's really a national security issue all the tariffs,

i don't understand why democrats aren't more usmca in my opinion is what would happen if unions readied nafta, it's actually prolabor, it's not to make general motors profit go up -- dagen: the president will not give the president one win even if it helps the united states. he sat down for exclusive interview with maria in canada yesterday, former special counsel robert mueller breaking silence earlier this week, part 2 of interview she asked the vice president about take on mueller, possibility of impeachment, listen. >> it is pretty extraordinary that the president is getting so much done given the fact that the democrats are still talking about impeaching the president, what was your reaction to what robert mueller said this week? >> well, i was -- frankly i was pleased to see the special

counsel announce that the investigation is over, case closed. the special counsel sent report and he concluded that there was no collusion and after review of the facts the department of justice confirmed there was no collusion, no obstruction. the american people want to see this congress move on. things that are making difference in their lives. maria: if we knew that the president did not committed a crime we would have said so and that's stoking for impeachment talks, are you expecting impeachment proceedings? >> well, i wouldn't know why there would be. i really wouldn't. i mean, this president has been delivering for the american people, these questions were raised about election interference and we know that russia interfered in the 2016 election, we don't believe it affected the outcome in any way but we held him accountable for

that and taken steps to ensure that that doesn't happen again but the other questions raised about collusion and even the special counsel confirmed that there was no collusion between our campaign and the russians and the department of justice has confirmed that there was no collusion, no obstruction, the matter is entirely over, it's entirely close, the american people got the answers. and i couldn't be more proud, maria, of the fact that for more than 2 years hundreds of witnesses, millions of pages of documents, full cooperation with the special counsel, this president and our office and our entire administration fully cooperated and the american people now know that the investigation is at an end and they have their answers. what i think the country see us do is focus on the things that are now most important to them and that's jobs and security. you know, we are in discussions

right now about a budget agreement that would allow us to continue to make historic investments in national defense. we have a crisis on our southern border. you traveled there very recently, you saw it firsthand as did your viewers on this program. i mean, we are on track to have more than a million apprehensions at southern border and yet congress, some in congress continue to focus on investigations, baseless allegations while literally last month alone more than 118,000 people were apprehended at our southern border and congress continues to refuse to act to close the loopholes that are being used by cartels and drug traffickers to -- to entice people to make the long and dangerous north to the southern border. the american people want to see a congress focus where this president and our team are focused and that is under security, on securing our border, on losing loopholes, bringing about asylum reform and advancing policies that will

continue to create jobs in this booming economy. maria: what we saw at the border was actually quite extraordinary, the children in dangerous positions, women are renting out their kids, $140 apparently so smugglers can bring children over the border, are you expecting real reform on immigration, will the congress actually take that up in terms of changing the flores decision, asylum standards? is that even doable this year? >> it has to happen. president trump has taken decisive action to call on méxico to take further action and intervene in flow of people that are coming from central america and take advantage of loopholes and the president will continue to call on this congress to pass common sense reforms. look, we have a humanitarian and a security crisis at our southern border. the drug cartels and human traffickers, you heard it firsthand, they are telling people in guatemala and el salvador and throughout central

america about loopholes in our laws and if they come up with children that they'll have the opportunity to come into the country and that's just unacceptable. this congress ought to be willing to set politics completely aside and -- and at minimum bring the changes in our asylum laws that would fix this immediate problem overnight. we are building a wall, we are building hundreds of miles of wall over the next several years, the president kept his promise in that regard, we are providing resources for customs and border protection but we have to close the loopholes in our law and the action the president has taken and will continue to take are all designed to say that congress needs to step up, bring about the kind of reforms that will close the loopholes and end the magnet that drug cartels and human traffickers are using and will continue to call on méxico and take actions necessary to see through that méxico does their job to ensure that this

mass exodus and humanitarian crisis comes to an end. maria: let me move onto china, this week the retaliatory tariffs from china on u.s. goods go into effect on the $60 billion of u.s. goods, are we at a stalemate at this point? do you see an end to the china fight? >> well, i would tell you that it's been -- it's been amazing to watch this president and the way he's forged relationships with leaders around the world. being with prime minister trudeau in canada, seemingly he was able to negotiate usmca with canada and méxico and it all begins with president trump personal relationships and i've witnessed it. the relationship people saw with prime minister abe, but now has us talking about free trade agreement with japan. the president will be traveling to -- to the uk just in a few days and you'll see that

relationship grow large as he visits with the queen and -- and as we continue to talk to the eu about -- about the possibility of a free trade agreement even as brexit continues to work its way through for the uk. but with regard to china, i can attest firsthand that the president has forged a good relationship with president xi but we have our differences and it's not just the structural -- it's not just the fact that china owns half of international trade deficit, it is structural issues, intellectual property rights, forced technology transfers, essentially the respect for private property that at this point china has not reflected in their practices and we need to see reforms in that regard. maria: big-ticket items. >> these are the big-ticket items and we have been clear

with chinese leadership that these are the things that have to be addressed. president trump will meet with president xi, g20 in just a few weeks and we remain hopeful that china will step forward, they were coming our direction, we have made great progress, but as the president said last week, they started to step backwards and so the president called it off and what we believe we are in a very strong position with the tariffs that we imposed. we can more than double, the president hopes for better, hopes we can make a deal with china but reset relationship for the american jobs and american workers first and really level the playing field in ways that it's never been leveled in modern history of our relationship with china. maria: interesting to see how aligned you were with justin trudeau with china given the fact that you both discussed the detention of two canadian

citizens after cfo of huawei was arrested. have you gotten a response from china on this, what are you expecting in terms of two citizens? >> china knows where we stand. prime minister tra -- trudeau discontinued today and it's unacceptable and the united states will continue to stand with canada until canadians are free and hopefully back home in canada. the whole issue of huawei is an issue of national security. huawei is in effect a wholly-owned subsidiary of the chinese communist party and to have huawei operating as 5g network in our country or in our allies' countries we believe represents fundamental compromise of national security and the privacy of millions of

citizens so we will continue to communicate that message very strongly to allies in canada and all over the western world, but we are also going to continue to promote alternatives for 5g networks, this is the most dynamic, innovative economy in the history of the world. we know we could meet that global need for 5g with enterprises that respect our values, respect privacy and individual rights, intellectual property and preserves our national security and will continue to drive that. dagen: part 3 of exclusive interview coming up at 8:00 a.m., the top of the hour, stay tune for that, we are watching this futures selloff, 280 point lose on the dow futures, president trump threatening tariffs on méxico over immigration, the announcement came out of nowhere and the markets rattled, stay with us

2,000 fence posts. 900 acres. 48 bales. all before lunch, which we caught last saturday. we earn our scars. we wear our work ethic. we work until the work's done. and when it is, a few hours of shuteye to rest up for tomorrow, the day we'll finally get something done. ( ♪ ) in the unstoppable john deere gegator™ xuv835.ne. and be prepared to go the extra mile. because when others take rain checks... ...we take the wheel. with 3-wide seating, heat & a/c. this is the coolest, most comfortable gator™ yet. nothing runs like a deere™. run with us.

♪ test drive a gator™ xuv835 at your john deere dealer today. going back to the doctor just for a shot. with neulasta onpro... ...patients get their day back... ...to be with... ... family... ...or just to sleep in. strong chemo can put you at risk of serious infection. in a key study... ...neulasta reduced the risk of infection from 17%... ...to 1%... ...a 94% decrease. neulasta onpro is designed to deliver... ...neulasta the day after chemo... ...and is used by most patients today. neulasta is for certain cancer patients receiving strong chemotherapy. do not take neulasta if you're allergic to it or neupogen (filgrastim). an incomplete dose could increase infection risk. ruptured spleen, sometimes fatal as well as serious lung problems, allergic reactions, kidney injuries and capillary leak syndrome... ...have occurred. report abdominal or shoulder tip pain, trouble breathing... ... or allergic reactions to your doctor right away in patients with sickle cell disorders, serious, sometimes...

...fatal crises can occur. the most common side effect... is bone and muscle ache. ask your doctor... ...about neulasta onpro. pay no more than $5 per dose with copay card. dagen: major selloff at hand, dow futures down by 277 points at the moment, this comes as president trump has threatened tariffs on mexican import in response to the migrant surge into this country, president trump coming to the aid of u.s. corn farmers, farmers that could potentially be hurt with a fight with méxico. cheryl: basically the trump administration is expected to announce today, it's going to lift the ban on et nil for -- ethnyl. they are concern about higher

gas prices and air pollution. cosco warning that trade deadline will lead to higher prices, quote, at the end of the day prices will go up on things, we want to be the last to raise them and prices will be going down, we want to be the first to lower them. let's take a look at share of the company, more than 18% this year, german chancellor angela merkel taking swipe during commencement speech at harvard, she warned students against, quote, building walls and going along approach. [applause] cheryl: merkel has been chancellor since 2005, she announced she's stepping down in 2021. she has clashed with president trump on issues of trade and, of course, dagen of immigration

which the europeans have had to deal with as well. dagen: thank you, cheryl. maybe worry about your own country, rising anti-semitism, migrant crisis that led to sexual assault of multiple women over the holidays a few years ago, mike murphy, what do you have to say about them? >> i think people need to check themselves a little bit and start acting, people read headlines and get crazy, act like normal people, treat people the way you want to be treated. dagen: commencement address is -- >> why can't they just focus on the people who are graduating? dagen: send us off into the -- send them off into the yonder with upbeat information. president trump threatening tariffs on méxico over immigration, plus the trump economy maria talks about is during exclusive interview during mike pence, that's ahead.

let me ask you something. can the past help you write the future? can you feel calm in the eye of a storm? can you do more with less? can you raise the bar while reducing your footprint?

for our 100 years we've been answering the questions of today to meet the energy needs of tomorrow. southern company

dagen: breaking news, major selloff in the making, u.s. futures are pointing to 280-point loss, markets rattled by threats of mexican import into the united states trying to curve the flow of central american families through méxico and across our border. coming out of nowhere, again, it's been a rough market in the month of may. we've had inversion of yield curve where longer-term interest rates are below short-term interest rates, investors seeming to bet that the federal reserve is going to have to cut interest rates, we will get to more of that with steve moore coming up. meantime moving to more of maria's exclusive interview with vice president mike pence, she sat down yesterday in canada

where she asked vice president about his pro-life stance. maria: mr. vice president, the recent rulings on abortion have put abortion on front page, do you want to see roe v. wade challenge? >> i'm pro-life, i couldn't be more proud to be a part of the pro-life administration. from early in this administration president trump has taken decisive action to stand for the right to life at home and abroad and it's a great source of -- it's a great source of meaning to me to be a part of that. president donald trump most pro-life president in american history and we hope to today that we saw life restored to the american law. maria: are you comfortable leaving decisions to the states?

>> well, ultimately that's a decision that goes to the american people. roe versus wade was all about a decision that literally took the decision away from the political process and where all 50 states had banned abortion before roe versus wade and that all changed with that decision and so for our part, returning legislation not so much to the states as to the american people, and i just -- i have to tell you as i look around the country today, i think life is winning in america. more and more young people are embracing the sanctity of life, we are seeing states around the country that are taking efforts to advance sanctity of life. held portion of indiana law that i've signed when i was governor of the state and the contrast, maria, with the other party, this week in illinois, again, we

see the democrats toward late-term abortion and i think more and more americans see the importance of standing for the uniqueness of human life and i'm proud to be part of the administration that stands for right to life. dagen: more of maria's exclusive interview coming up. meantime major selloff this morning as president trump threatens tariffs on méxico over immigration. plus u.s. trade disputes putting the federal reserve in a bind, why some see tensions as a threat, the wait-and-see approach by the fed, how long can it hold onto that 10-year yield down this morning. money flowing into treasuries, 2.16%, more straight ahead

dagen: welcome back, i'm dagen mcdowell in for maria bartiromo, friday may 31st, breaking news, markets selling off in direct response to president trump threatening tariffs on méxico over immigration. the president ready to impose escalating tariffs that would start at 5% on june 10th and potentially escalate go up to 25% by october the first. maria sat down for exclusive interview with vice president mike pence who weighed in on u.s. economy and the 2020 race. >> whether it's joe biden or any of the rest of them, this is a president who is standing for strong national defense, he's promoted policies that have this economy booming, making appointments to courts at every level that are upholding the constitution of the united states, free and fair trade, i can't wait to take the case to the american people.

dagen: vice president mike pence discussing china trade as new round of tariffs on american goods that are exported from here over there are set to go into effect tomorrow. big exclusive interview more of that coming up. trade fears hitting the markets, futures showing heavy losses across the board. 266-point loss on the dow futures to wrap up this month. been a rough month, rough may for all your major market gauges, dow down more than 5%, nasdaq down more than 6 and a half and indicater of future economic activity, 8 and a half percent in may. trade-related stocks this morning getting hammered, general motors, the hardest-hit, down 5 and a quarter percent, again, a lot of activity, business activity across the border business between méxico and the united states for general motors, in europe you have a selloff in the making as well, england, france and germany all suffering losses

this morning, the hardest hit the dax in germany off 1 and two-thirds of a percent. in asia stocks in the red with only south korea higher. we begin with trade tensions, president trump threatening to hit méxico with 5% tariffs on all goods import intoed the united states, ramping up efforts to secure the southern border. the president says the tariffs will kick in next month and gradually increase 25% if the surge of illegal immigrants does not stop ahead of china's retaliatory tariffs in the u.s. taking effect at midnight tonight, maria bartiromo spoke exclusively with vice president pence and weighed in on trade dispute on the u.s. economy. maria: you are just back from a meeting with canadian prime minister justin trudeau, how will you get usmca across the finish line? >> first and foremost let's

recognize that the american economy is booming, 5.8 million new jobs in the last quarter 3.1% growth, more importantly wages are rising at the fastest level in more than 10 years and we have seen 500,000 manufacturing jobs created and the president has done all of this because he drove for tax cuts, he's been rolling federal red tape, unleashing american energy but also central pillar of president trump's economy is become free and fair and reciprocal trade that we have negotiated in the usmca. dagen: joining us freedom works economic consultant and trumponomics author, steven moore, good to see you this morning, thanks for being here. >> thank you. dagen: president trump's threat to put tariffs on import coming in from méxico, it's clearly -- even though he had mentioned it earlier, it took investors by surprise, why now and does it

damage the u.s. economy potentially? >> well, look, dagen, i've been someone who has been supportive of what trump is doing in china, i think that's the epic battle of our time. i think china is a menace increasingly from economic and security standpoint to the united states. i'm puzzled frankly about this new action against méxico. i think the timing is wrong, you know, we want to isolate china as the bad actor and you heard the discussion with the vice president and i agree with everything that he said, we want to pass the canada-méxico trade agreement so we have the north american free trade zone and this seems to run counter to that. i'm puzzled by it. i'm hoping, dagen, this is a tactic that donald trump is use to go try to get méxico to be cooperative on the border which we all want but i'm -- i'm a little bit nervous about the new tactic. dagen: steve mike murphy is here

and he has a question for you. >> steve, you the tariffs with china that i think a lot of people were first negative on and came around to, could -- i see this as possibly watering that down a little bit that maybe could look at this and say the president is going to use tariff as a tool to -- to win political disputes, can you speak to that. >> yeah, i mean, i think that is a concern that every time we have a dispute with a country the tariffs as retaliatory measure. i don't like that approach. i'm a free-trade guy, as i said i think the strategy should be and one i think almost all americans really agree with is get very tough with china, they've become existential threat to the united states, abusive relationship with china and can't continue but i've always advised the white house that let's try to isolate china as the bad actor and have our allies, you know, solemnly in our camp on this, but méxico is not a security threat to the

united states, they are one of the great allies and so i am, you know, and i'm a big supporter of this president i just don't like this policy and i also work at the heritage foundation and we are concerned about it, so free traders do have a concern as you just said that all of a sudden tariffs will simply be used every time a country does something we don't like we will use tariff, i'm not so sure that's the best approach. dagen: before we get to jonas, do i want to point out that chuck grassley in the senate called it misuse of presidential tariff authority, he's come out against the tariffs on mexican import, making a statement saying that she -- it's clear that we need to address unprecedented flow of illegal immigrants and that's imperative but the livelihood of ohio farmers are at stake. >> can i make a point, dagen, constitutional issue about, look, as i read the

constitution, you know, the congress has the authority to tax, tariffs are taxes, in some instances they are useful tactic against china, but i think the senators make a good point, you know, shouldn't the congress be the one -- if we are going to impose tariff on méxico, shouldn't congress be the one that enacts that and starts in the house of representatives and so on, so this is a legitimate gripe that some in congress have about the use of executive or the. >> it's easy to get bogged down in legality, constitution or loophole which is overblown, just fundamentally the whole idea of trade agreement is so gm can build a factory and spend billions of dollars and not have be political change in some countries where there's canada, méxico, here and then all of a sudden the game is different and whole new tariff. that's the whole point new of it

fundamentally going to all of them, do these kind of tariffs violate our strength going forward to be in agreement that a country can trust us or countries, you know what, this is specifically about china being totally ridiculous and not have trade deficit with america and méxico not doing anything illegal immigrants across the border, we can still trust america fundamentally? >> the president has legitimate gripe that méxico is not doing enough to stem immigration. i'm proimmigration, they have to come in legally and we have to secure the border. i'm with him on that. i'm wondering why he thinks this is the best tactic. dagen: steve, i want to interrupt you, do you think federal reserve is forced to cut interest rates, i wanted to get that in there.

>> okay, i mean, i think that's my point. it's canada -- canada and méxico are our allies and we want to get usmca sign intoed law so we have free trade agreement and the president saying we will put 5, 15% tariff on méxico at the same time we are trying to pass this in the congress. i think it's a mixed message. now, i have strong feelings about this, i've been saying for last 6 months that the fed should be lowering rates because we've got -- look at what's happening with the farmers, look at what's happening with commodity prices, falling dramatically, inverted yield curve right now is a sign that people are more worried abdeflation than inflation and the fed should be cutting rates but they shouldn't be doing it because, quote, the economy is slowing down, they should be doing it because the economy needs more dollar liquidity and that's what the markets are saying through interest rates and prices of world, cotton, soybeans, that's the biggest problems for the farmers right

now, it's not even the trade war, the continuous decline in these prices that dagen predate it is trade war with china. dagen: great to see you. >> have a great weekend. dagen: in case you missed it some of the top moments from the show. >> i can assure the american people this president is going to continue to remain focused on this economy, that's how we got done everything we've gotten done so far. i mean, the largest tax reform, tax cuts in american history, this president is cutting back more federal regulation in 2 and a half years than any president in american history, unleash american energy, uscma along with other trade agreements that were negotiated with south korea and one off some other countries, all evidence that this president is focused on jobs, he's focused on growth and we will continue to maintain that focus until we get usmca across the finish line.

maria: what are the implications of no trade deal with china? >> i couldn't tell you the answer to that. an instrument of chinese government, something hard for americans to understand. companies cooperate with government, they comply with our laws, but no president directs american private company, that's very different in china. they operate under a different set of rules. i'm convinced that there's no power in the world that america couldn't if required handle in a way that would protect america's interest. >> close to a deal and chinese step back, that's not a good sign and then we are also seeing a rising number of complaints by american companies who export to china oh -- or import items that are complaining about nontariff obstacles to trade. >> the key thing are farmers in midwest, how do they feel about, this that's a very important part for republican candidate.

i think as that gets resolved and they feel pretty good about things and all production and normal prices, it's fine. serious recession -- >> what kind of an impact do you see from retaliatory tariffs? >> of course, what i see resolved in short period of time, both sides get hurt by it, china gets hurt by it even more. i have talked with other fellow, if they do go to effect, have price increases temporarily. maria: you lived in china for 7 years. >> 7 years. maria: tell me about your experiences there? >> there was an interesting time, the time of integration, we had good business in china, growing business, great opportunity, the biggest market globally for china and we had a very interesting time there.

>> if as mueller says there never could have been a prosecution if the president under the constitution, then why does he appoint it. >> these are the veterans that we see in our states that they deserve to have some relief and we have asked, urged the department of education to put program, 24,000 by statistics, 42,000 or so of the veterans who are totally and permanently disabled due to military service. >> the most dangerous thing that i've seen, maria, is letting young adults come home without any kind of financial expectation, you're actually setting them up for failure. maria: first astronaut to go to mars, why? >> because i think it's the next step that the united states and the world as a whole needs to take and someone needs to be willing to take the step. from an early age i decided that i had passion for space travel

and help push humanity forward in that regard.

dagen: we have major selloff in the making this morning. president trump threatening tariffs on mexican import into the u.s. in response to surge of migrants coming across our border. again, one analyst describing as bomb being thrown, economic bomb of tariffs and certainly rattling markets, we have 268 point selloff on the futures to wrap up the month of may, rough

month for stocks, losses of 5 to 6 and a half percent on major market gauges and more selling today. certainly this morning, waiting for the opening bell. in the meantime measles cases in the u.s. reaching 25-year high, cheryl casone has the details, hey, cheryl. >> incredible, dagen, center for disease control and prevention 971 cases have been reported this year, including 91 cases this past week and a half alone in 5 months measles cases have surpassed the number in all of 1994. measles have been declared eliminated in the u.s. 19 years ago, cdc now warning that could end if cases aren't curved by fall. well, facebook admitting it has work to do when it comes to fighting vaccine information. wall street journal reporting that 10 weeks promise to go crack down on the problem antivaccine content is so widely available on facebook and the instagram app, facebook says it's till working on tools to

detect the ban content, facebook shareholders have rejected proposal to split mark zuckerberg's role as chairman and ceo. well, the finally over, opening at california today, more than 5 years to develop and finish, of course, big new attraction, disney ceo bob iger speaking about theme park with an interview with our own degreedra -- driedra bolton. >> they love that challenge. they would be impressed. cheryl: that was disneyland, disney world plan to go open star wars theme attraction next year. coming up next, sharp selloff, futures pointing to decline, president trump threatening

tariffs on méxico over immigration, dow down 265 in premarket right now, we will be right back. let me ask you something. can the past help you write the future? can you feel calm in the eye of a storm? can you do more with less?

can you raise the bar while reducing your footprint? for our 100 years we've been answering the questions of today to meet the energy needs of tomorrow. southern company it's a revolution in sleep. the sleep number 360 smart bed is on sale now during our memorial day sale. it senses your movement, and automatically adjusts to keep you both comfortable. it even helps with this. so you wake up ready to hit the ground running. only at a sleep number store. don't miss the final days to save $1000 on the new queen sleep number 360 special edition smart bed, now only $1,799. ends sunday. sleep number. proven, quality sleep.

dagen: selloff in the making, 260-something point loss on dow futures as all major market gains wrap up a really rough month for stocks again this selling triggered almost solely by president trump threatening tariffs on mexican import, again, why now, people searching for an answer. reality check in the meantime for two-time defending champion golden state warrior, jared max has the highlights from knapp finals opener in toronto.

>> hey, dagen, happy friday, warriors are not in such a golden state after last night's opening in toronto just as they did in both regular season games against raptors, warriors lost first nba finals game ever outside of the united states. toronto led after every quarter, up 10 by half time. 14 of 17 shot, scored 32, leonard had 23. raptors win game 1. trying to get under steph curry 's shirt. got into it with worry yours after the game, it really wasn't scuffle because i didn't hit him and he did not hit me. game 2 sunday night. 13 days away from u.s. open on fox and fs1 this weekend it's jack nichols tournament.

tiger 5 strokes off the lead entering second round, jordan played a great first round, jordan spieth shot, tested the rules on the 17th hole. where did it land? ball has gotten further indicated by ball pitch mark, they looked at video and decided, sorry, he shot 73 and he's 8 back. attendance figure for miami marlins so bad being outdrawn by minor league team 4 years in a row. take a look at the numbers from this year, 1.4% lower from the same time last year, fourth straight year with decline in baseball numbers down, lower attendance, averaging more than 10,000 fans more this year than last, that's the bryce harper effect but baseball attendance is down, dagen.

dagen: thank you, jared max, fox news headlines 24/7, siriusxm 115, i promise i will let mike murphy respond to what happened last night. more on that and more on the breaking news of the futures, selloff in the making, president trump threatening tariffs on méxico, more when we come back. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. 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 doctor's office might mejust for a shot.o but why go back there when you can stay home with neulasta® onpro? strong chemo can put you at risk of serious infection. in a key study neulasta® reduced the risk of infection from 17% to 1% a 94% decrease. neulasta® onpro is designed to deliver neulasta® the day after chemo and is used by most patients today. neulasta® is for certain cancer patients receiving strong chemotherapy. do not take neulasta® if you're allergic to it or neupogen (filgrastim). an incomplete dose could increase infection risk. ruptured spleen, sometimes fatal as well as serious lung problems allergic reactions, kidney injuries and capillary leak syndrome have occurred. report abdominal or shoulder tip pain, trouble breathing or allergic reactions to your doctor right away.

in patients with sickle cell disorders, serious, sometimes fatal crises can occur. the most common side effect is bone and muscle ache. if you'd rather be home ask your doctor about neulasta® onpro. pay no more than $5 per dose with copay card. 2,000 fence posts. 900 acres. 48 bales. all before lunch, which we caught last saturday. we earn our scars. we wear our work ethic.

we work until the work's done. and when it is, a few hours of shuteye to rest up for tomorrow, the day we'll finally get something done. ( ♪ ) dagen: good morning, everyone. i am dagen mcdowell for maria bartiromo. friday, may 31 breaking news markets in sell-off mode as president trump threatens tariffs on mexico over immigration. the president ready to impose what would be escalating tariffs it startling at 5% june 10, maybe go up to 25% by october . if the president doesn't see movement by to mexico to stop flow of immigrants into u.s. maria sat down for exclusive interview with vice president mike pence talked about actions being taken to protect the border. >> president trump has taken

action to intervene in massive flow of people from traditional america to our border. dagen: vice president pence also talking about usmca hopes for it to pass this summer -- last hour steve moore said you wantis u.s. signed into law? well now mexico tariffs throw a wrench into that i paraphrase trade fears 274-point loss on dow futures down 5% or more in the month of may we've had inversion of the yield curve 10 year yield falling more, this morning, take a look at u.s. automakers general motors ford particularly general motors presence in mexico a lot of crossborder action in terms of supply chain with mexico that stock more than 5% in premarket trading for a hit as well down 4%, in europe we

have a he sell-off across the board, stocks lower in england, france, germany down 1% or more in europe in asia overnight, markets in the red as well only south korea gaining, fox news about contributor greg gutfield "national review" reporter, rosecliff ceo managing partner mike murphy with max funds.com cofounder jonas, quickly what does this mean for the markets is this more concern about a slowing economy? >> specifically, look 1% decline not over play very hot year in the market, made all the losses from last quarter fourth quarter bad quarter back, so coming back a little look. the bond market says we are having economic slow downey stock market saying otherwise until few weeks ago whether tariff -- easier to have a tariff war people are worried

about it -- tariff -- war after depression started depression case economy was weak, we were in a strong position our position slightly weaker now if economy is slower but a global phenomena not in trade spat with china or mexico i don't want to overballet the tariff situation over general global economic concerns economy slowing was slowing before trump election about probably got a boos about it the tax cuts, increased spending kind of brought us out we have going to have a recession at some opponent eventually going to have one. >> mike take a look at trade related stocks mention general motors ford but, again, apple has been hammered, in the month of may, i think apple has double-digit percentage loss. >> it does, that has a lot to do with the china trade war. that is going on, what they may do, to apple jonas hitsnail on head strong economy makes fighting things through tariffs easier, i hope the president is aware of what he is doing, has a bigger plan

to settle things with mexico settle things with canada, focus on china. >> nevertheless this announcement on mexico the tariffs is disruptive to business. >>, of course, disruptive to business the average american consumer is going to feel when they see prices going up, may not be able to see bigger picture i think that is important that border security but there has to be a way to go about it that doesn't affect americans negatively. >> we have reported all morning president trump thanking tariffs on mexico over immigration, in her exclusive interview with the vice president mike pence talking to maria about border crisis and the -- and trade. here is part three. >> is the president considering some kind of tpp arrangement now that we see how difficult it is to -- to do a deal with china because some of it is cultural, a lot of people are saying well, walking away from tpp was a mistakes president planning to do some kind of alliance with

other asian nations to team up against china to call out some behaviors. >> president trump made right decision, to withdraw united states from the tpp. what this president really understands he talks about it a lot, is the importance of he bilateral negotiations the ability to be able to fight fer our nation's interests when we are negotiating at arm's length, with one another nation there are circumstances will be different we hope to enter into free trade agreement with the european union that is a different arrangement but president trump really believes whether it be china, japan or any other nation, in the world, that with just a couple of sxep exceptions american worker jobs economy better served if we enter into er bilateral trading relationships better able to hold trading pairnz

accountable to the promises they have made. >> how concerned are you about retaliatory tariffed and retaliatory moves from china is not just the think a putting tariffs on 60 billion dollars this weekend, are we going to see prices go up nor coffee, beats salmon flowersfruits vegetables there is also the other thing, like drulg fedex, american companies trying to operate there or threatening that they will halt rare earth material imports into the united states. how concerned are you about those things that china is no i fighting back with? united states is the most powerful economy in the history of the world. we have every confidence that the united states and american economy has the ability to do what is necessary to reset this relationship. with china and other nation, look president has been very clear. he believes far too long we have tolerated trading relationships that are much more of a one-way street.

for the united states. we see nations that have broad social security to our marketplace and give us limited access, to their marketplace, those days are really over, i think the american people can be confident when it could emphasis to china president is going to continue to stand firm, until china steps forward, and not only resets the trading relationship but, as i said, embraces those international rules of order that should govern all economic exchange in, free world. >> is it doable even in a cultural thing they don't believe in patents, they have been stealing intellectual property for decades, can you really move the needle and changing that? >> is it you know the president favorite two words are we'll see. >> see what happens. >> american people should no president believed we are in a very strong position either way we have imposed he more than 250 billion dollars in tariffs can more than double that, and for far too long, we've looked the other way, in

our relationship with china. and those days are over, what the american people have, in president donald trump is a president that is fighting for them, and when you look at the enormous imbalance in our trading relationship, with china, i think the american people will be proud to see the way this president has engaged the leadership in china, has formed a relationship that makes dialogue possible stood firm for american jobs and workers. >> joe biden seems getting a lot of the numbers in the polls a lot of the fund-raising money as well how do you feel about going begins a ticket including joe biden. >> look, i -- the president and i look at the field, we are ready to run against any one of them. i mean with regard to the joe biden -- he was part of an administration that presided over less than 2% growth 8 years, i mean it was under the obama-biden administration, it was the weakest recovery in the history of the united

states of america. and it is because instead of doing what president 2r has done cut taxes cut red tape unleash energy negotiate free and fair trade for the american people, the last administration, was -- was regulates taxes increasing regulations stifling american energy innovation loud kind of trade deals we are working to set right today whether it is joe biden, or any of the rest of them, this is a president who is standing for a strong national defense, he is he is patrolled policies that have this economy booming, we are making appointments to our courts, at every level that are upholding the constitution of the united states, free and fair trade, i can't wait to take that case to the american people. >> the president said he has a big league announcement on the border can you tell us anything about that what we should expect from the president. >> i can tell you american people can be confident, that this president is going to continue to take such action necessary to see congress do

its job, to address the crisis on our southern border, and to have our neighbor to the south in mexico do more to prevent this massive wave of people that are coming across our border, look, maria people are being hurt on both sides of the border. i mean you saw it firsthand. you have human about trafficking exploiting vulnerable populations in central america take 5:15,000 dollars cash per person, and then taking them on a long and dangerous journey northmost often abused and of these are vulnerable families that come into the united states and all because mexico is not done their part to preventative this incredible surge of migration to the north, and frankly it is because the congress, the congress is refused so far, to do its part to close the loopholes that human trafficking are using to exploit vulnerable families, are american people can be confident, this president just

as he did when he declared emergency, identified resources we are building the wall there will be hundreds of mild of wall built, by the end of next year. but the end of the day we know that we've got to fix this broken immigration system end humanitarian crisis on our southern border we've got to close those loopholes bring about the kind of asylum reform time for congress to act. >> do you think you can you can get a free trade agreement with japan this year? >> i think the president is in ongoing negotiations i think talked about timing being a little bit later this year but as you may recall the president had me work with my counterpart last two years for economic dialogue with japan, now we've agreed to negotiate a free trade agreement, with japan, and our hope is whether it is this year, or er shortly into next year that we will be changing that relationship with japan for the betterment of our economy, and benefit of american workers. >> mr. vice president anything

you would like to add? >>. >> one final pet mentioned turkey releasing american hostage, he has been imprisoned two years this happened after a phone call between erdogan and president trump what went on in that phone call how did that happen? >> well the president spoke to president erdogan about a broad range of issues strategic issues, issues in the region, but american people can always be confident where meps are detained anywhere in the world they are on the heart this have president we greatly he welcomes release of nasa scientists had been detained in turkey, the record that we've had, whether it be seeing people released from detention in egypt whether pastor released from turkey last year president trump is always going to stake a strong stand whatever the other issue and other topics are, in dealing with foreign leaders

always going to put american citizens first. >> certainly has been doing that vice president pence it is good to see you now good to see you maria. >> thank you so much for joining us. >> thank you. >> sharp sell-off in making declines across the board all three major market gauges as president trump threatens tariffs on mexico, over immigration. and a big loss for uber ride-sharing giant losing a billion bucks that is next. my body is truly powerful. i have the power to lower my blood sugar and a1c. because i can still make my own insulin. and trulicity activates my body to release it like it's supposed to. trulicity is for people with type 2 diabetes. it's not insulin. i take it once a week. it starts acting in my body from the first dose. trulicity isn't for people with type 1 diabetes or diabetic ketoacidosis. don't take trulicity if you're allergic to it, you or your family have medullary thyroid cancer, or have multiple endocrine neoplasia syndrome type 2.

stop trulicity and call your doctor right away if you have an allergic reaction, a lump or swelling in your neck, or severe stomach pain. serious side effects may include pancreatitis. taking trulicity with a sulfonylurea or insulin increases low blood sugar risk. side effects include nausea, diarrhea, vomiting, belly pain and decreased appetite, which lead to dehydration and may worsen kidney problems. i have it within me to lower my a1c. ask your doctor about trulicity.

. dagen: breaking news fueling president trump's threat of new tariffs on mexico we have losses across the board, 282-point loss on dow futures solely because of that. you saw futures fall off a cliff when this was announced last night president mexico odor will be prudent with u.s.

disputes must be resolved by dialogue there is no point in coercive measures mexico has been deporting more central american grants than u.s. has markets down this morning after the tariff threat on mexico from the president. and uber posting a-billion-dollar loss first quarter, but lo and behold look at that stock react upside kristina partsinevelos with more hey. >> you are right lo and behold investors rewarding this company why is that on conference call they talked about investing in their future diversification focusing on uber, and did acknowledge tight competition in the market almost a jab at lyft the reason i say that you had uber ceo talk about competition but he said, hey we're not too worried competition in the united states is health anything competitors focusing more on product and brand as opposed to incentives, incentives

pretty much a first to pay you saw reaction uber, lyft down, switching gears completely you head family dollar, dollar tree acquired family dollar 2015 stores should have been a struggling quite sometime this family dollar what are they doing? adding new product, alcohol you can now get alcohol at a thousand locations cross-country at family dollar, hoping it will help rejuvenate inmate soles trying to bring in more revenue traffic in stores they are increasing prices as well, back to you. >> what kind of alcohol some states like virginia you got abc stores you can't sell liquor beer and wine. >> coolers because alcohol content is lower. >> thank you, chris tina. you are right. >> all. >> -- two -- two dollar wine trader joe's. >> is its. dagen: not two bucks stocks sinking as president trump

threatens tariffs on mexico what it means for global markets, again, money is flooding into trshsdz what does that mean for the future? speaking out, attorney general bill war commencementing on mueller report, that is next. woow! yeahhh! there we go! this memorial day, start your summer off right in a new chevrolet. oh, wow!! it's time to upgrade. you guys out did yourselves there. i'm gonna go and get a chevy. an exciting summer begins at your chevy dealer. and now, during the chevy memorial day sales event, get 0% financing for 72 months on these select chevy models. or current gm owners can get thirty two fifty total cash allowance on this colorado. find new roads at your local chevy dealer.

can the past help you write the future? can you feel calm in the eye of a storm? can you do more with less? can you raise the bar while reducing your footprint? for our 100 years we've been answering the questions of today to meet the energy needs of tomorrow. southern company

at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ 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.

attorney general bill barr speaking with cbs following the first public statement listen to this. >> i preferentially felt he could have reached a decision he would have reached conclusion upon says you cannot indict a president while in office he could have reached a decision as to when it was criminal activity. but he had his reasons for not

doing it when he explained i am not going to you know, argue about those reasons. but what he didn't make a decision, the deputy attorney general rod rosenstein and i felt it was necessary for us as the heads of the department to reach that decision. dagen: joining me the five co-host juan williams what do you think happens now, whether you agree with what bob mueller said or not basically said hey congress have at it now they've got to decide whether they try to call andy -- thinks as good as getting from mueller for the democrats they probably -- just move on make a decision about impeachment. >> i think that is right i think what muellliterally a sai another process as opposed to criminal process indictment obviously, a hearing to office of legal council policy as established by justice department there is a lot of things going on here i love that interview, dagen, because i think, bob mueller and bill

barr literally a once were close former justice department official you see friendship fraying because i think barr comes out as a defy who distorted the intent that have report initially suddenly you see him barr now saying, you snow what he should have made a decision. i don't think that was the message that was being sent at the time. >> you know the democrats' reaction to bob mueller, bob mueller didn't add anything to -- so the reaction by the democrats was like okay now we know you did not read the mueller report the back-and-forth about how what bill barr did before the actually report was released, i think that mueller stood up for barr in that what he in statement he made earlier this week, and just read mueller report the democrats can make a decision whether this they are going to start impeachment proceedings for no obstruction. >> the flip conservatives read the ones reactoring oh my god he is saying should go on

another process if you want to intreech go ahead not my decision not my responsibility i think lots of conservatives are alarmed the idea that in fact, mueller said, he had evidence of obstruction. >> he didn't say it that way you -- >> well he said. >> he didn't have evidence that there wasn't. >> not clear. >> the standard. >> he side couldn't clear the president. >> you can say about that anybody, about anything, that there is no evidence that you did not do something. we had don't have time to get to nancy pelosi on jimmy kimmel last night if -- nancy pelosi knows this if democrats are even going to start impeachment proceedings they need to get more americans on their side of it, i don't know how you do that because at the end of the day there is no underlying crime there was no conspiracy juan that is in the mueller report i don't know how you try to remove a president by impeaching him even mueller report he didn't obstruct anything.

>> you don't need crime to have obstruction but i hear your point irlarger point is political it is the box that pelosi is in, because she has a -- a constitutional mandate to provide oversight of the executive in terms of congress but on the other hand most americans don't want impeachment most democrats do, by the way, so the base is push not what is good in terms of of the 2020 election. >> where we just go to impeach whoever the president is if on a different side than our political -- >> that is not what this is about. >> we got to go i will say if jerry nadler adam schiff salesman on impeachment good luck selling is that to the american people! love you much. >> always juan williams coming up, global trade septensions futures economic data the bottom of the hour. in one place. because when it's decision time... you need decision tech.

only from fidelity.

dagen: dagen mcdowell for maria bartiromo, friday, may 31 we've got breaking news on the economy, coming out in

about 15 seconds. permanent income spending due out in moments we will have that for you. meantime markets are in sell-off mode president trump threatens tariffs on mexico over immigration. the idea would be to start he imposing tariffs at 5% on june 10th, escalating them raising them to even 25% by october 1st if according to the president mexico doesn't do more to stop the flow of migrants particularly central american into u.s.-mexico president obrador saying will not respond to provocations country is meeting its responsibilities. >> we have a -- a spending gain for the month of april, .3%. and income was up half of 1% so that is better than expected a .5% increase in personal income that is better than expected we will see if

that helps the futures' picture at all again as that tariff threat from the president, on mexico, that rattled markets but we are getting better-than-expected data on personal income and spending came in a little bit higher than expected. maria sat down for exclusive interview with vice president mike penn who talked about the importance of the trade deal between u.s.-mexico and canada. >> if we pass and put into effect what will be the largest trade deal in american history, we are going to see growth like we have never seen in recent memory in this country. dagen: it is trade fears hitting the markets threat of tariffs on mexico what does that do to new usmca steve moore who one point was a federal reserve nominee from the president, if the president wants usmca signed into law, this potentially those a wrench into that, again take a look at futures

this morning we see if futures are -- again, giving up some of these losses, can't look at the moment trade related stocks gop gm ford, two in pillar hammered about this over this announcement on mexico. in europe, we have losses across the board, and in are asia overnight it was also mostly in red south korea a slight gain there bring in stephanie pomboy all over this number one day after we found out that the economy still growing 3.1%, in first quarter but if you did you go into that it was not some good news the corporate profit picture was soft. >> right. >> what do you make of the overly economic picture right now given what we found out last couple weeks. >> well i think that -- i know this all feeds back into trump's sort of strategy with mexico and china which is he really seem to be playing his strong economy hand if the idea that you know we can

impose tariffs and it hurts you he more than it hurts us because our economy is in such great shape. and unfortunately, the data just told there out right now, you may recall dagen i was on at the beginning of the month i was actually warning that we could have a dead-cat bounce in the economy, because we had had this huge decline in the tone of the data after the fourth quarter market meltdown in you had a string of such depressed numbers almost recessionary readings, that i thought we were due for a little bit of a just a reflexive bounce in part you had a huge drop in interest rates when generally does fuel housing, and obviously, invigorates the economy signs globally economy starting to turn. and instead, the cat not only did not bounce it land withed a deafening thud we got

yesterday as you mentioned profit number according to bea shows corporate profits are already in recession. two quarters fourth quarter first quarter, negative, and we know that analysts are forecasting another down quarter in the second quarter so this is not a time to really be pushing our strong economy hand -- >> let me ask you two things tariff first of all, going to a 5% tariff does that matter in a country that has 4.15 minimum wage doesn't seem cost advancing in that country anywhere even if tariffed there forever, especially mentioned corporate profits, let's say this screws up usmca i see usmca maybe you see it differently, as not being pro -- corporate profits were more pro-nafta having things you got to make certain parts in america pay workers more in mexico those are not pro

profit things, if this does scuttle -- >> why wouldn't that be better for u.s. profits old nafta regime would still be in effect. >> i hate to fall back on the -- uncertainty and this sort of damocles hanging over the corporate sector during all tariff tiffs, i think that is an important point we have seen capex you mentioned durable goods orders really start to slow, and i think you know, all of this just creates an environment where if you are a ceo, trying to decide am i going to continue to you know, produce the same number of cars in mexico or am i going to have to start work around it? it is just another layer of uncertainty at a time when your pricing power is being squeezed you are facing issues auto saeldz peaked a while ago have been slowing massive inventories they have had to discount so this is just one more thing that is added to the equation that i think

really dps. dagen: existing home sales down 14 months in a row sub4% 30-year fixed-rate morm mortgage going to help. >> remarkable thing if you would have expected lower rates to start to really help intraincentive sectors, it hasn't worked that way that is a powerful statement about underlying fundamentals of the economy. dagen: i want to bring in data points we have been watching 10-year treasury yield again, the inversion with three year where ten-year yield is lower than the three month yield. and we are getting this morning, the core at 1.6% most closely watched indicator bank stocks hammered, 20-month low on 10-year yield. >> there is a lot of negative you can take from out there, i wonder do we get back into bad is good scenario where if data

gets bad fed will cut rates will boost economy then are the algorithms looking past that to say hey this is good so i think most importantly for people watching at home, you know it is really -- important i think to not getting caught up in the day-to-day headlines or one person swing kind of have a plan stick to it the economy is going to do what it is going to do the fed is going to cut or not ultimately, for long-term investment right approach. >> i guess i would dispute that because i think the market is incredibly overvalued right now. i do think that profits are technically in recession now i don't think that there is going to be the second half rebound that takes us back to the promised land double-digit, gains necks year again i think underlying fundamentals are not nearly as strong as on surface that 3.1%

first quarter, percent versely was 3.1% because of all this tariff stuff you containing away trade and inventories, real domestic final sales 1 1/2% that is not a strong economy and i don't know if trump realized it was one and half percent he would be so aggressive in pushing the tariffs you know,card right now, in negotiatinging with trade partners. >>. dagen: personal income number is better than expected. >> it is, people are they are saving that money. maria: agent. >> why not spending that is thing not spending money not putting back in market about they took out during the crash the end of the year why sooikdz ourselves into a recession because supposed to have one so many years what is the reason investors and consumers are skittish skeptical. >> the left wingnuts will blame trump there is that. >> right. maria: go ahead. >> well it is interesting there is definitely a shift in

behavior maybe scared by fourth quarter meltdown but, you know, the new york fed came out with a quarterly credit survey of households they were the lowest amount of credit inquires indication of demand for credit in history so why is that happening, people are saving their paying down debt where they can, for whatever reason, the consumer is not feeling this recovery at this point right now. maybe it is temporary but, you know, those kind of numbers lowest credit inquires saving rights o over 6%. >> they are -- record amount of money seem to think worth borrowing high interest rates, why are companies -- borrowing consumers -- >> i am cynical i don't think companies are more mofoptimisti i think they have to keep

buyback going, borrowing as much as they can to keep that going because a key impact one of the reasons why this profits recession, with was surprise to most people is that the bea profit numbers are not affected by buybacks s&p earnings are flattered by them everyone looking at s&p numbers thought oh earnings are really strong large part because buyback -- >> fundamental of the tax cuts, excessive cash netflix not buying stock buying, expansion plans a lot going for buying back stock i didn't see that. >> that is attraction netflix i mean buybacks are not new weren't new in 2018 on tax cut we have been looking at you know really, enormous buybacks year after year. dagen: historically as you said repeatedly 6 months between the last interest rate hike and first interest rate cut by federal reserve how soon do you think a cut comes if at all.

>> you know, i keep falling back on depends on what stock market does. dagen: this is inverted yield curve all week a stock market that is basically had a very rough month of may. >> yeah, although it is not panic levels you know i think that going to take a little more to get the fedoff the dime, right now. but, you know, we will see what happens with the market i definitely think that that is their number one input right now. dagen: a market. >> ye. dagen: great to see you as always terrific conversation. markets sell-off mode futures pointing to declines the selling pressure easing teeny bit stuart varney weighs in and special update right now from tennis channel. >> welcome back to another tennis channel court report fox business i am jonathan

novack serena remains on track for 24th major title after leads third round in roland-garros, american dropped five games tick took care of wisconsin gwynne japan, 36 wins for serena in victory. >> -- i had a tough year since i twisted my ankle in australia, this has been really tough after that so everything definitely feels a little bit harder than normal but at the same time i know that it is going to get better. >> elsewhere will number one osaka has a fight back from to get closing out two-time 6-3 in decider. don't forget tennis channel live coverage from paris hits air daily 5:00 a.m. eastern i am jonathan novak.

my ideal cloud? it has to work like air traffic control. it's gotta let new data integrate with data from our existing systems. ♪ ♪ be able to pull from reservation platforms built 20 years ago. and also be able to use apps to book super-personalized trips on shiny new phones from the future. plus, i need freedom to move my workloads wherever, whenever - but manage it all from right here.

and that's the cloud i want. simple, right? expect more from your cloud. ibm cloud.

dagen: whyr interest rates down so much and what is with negative yield in europe? joining me now the host of "varney & company," stuart varney. i almost just wander to say inverted yk -- yield curve to make your head exploded. >> you asked why are interest rates down as much as they are. 218 on 10 year treasury yield my answer to that question is: this is a flight to safety, when everything is falling part all over the world what do you do?

you go to safety of u.s. treasurer security when you buy that pushes up the price yield comes down only silver lining mortgage rates probably fall well below 4% because of low yielded on 10-year treasury i think there is a search for yield investors want safety they want thet a little bit of yield with it interest here where do you get good interest on u.s. treasury security you absolutely don't get it on a european bond, there are 11 trillion-dollar worth of yeah 11 trillion euros worth i believe it is of bonds carry no interest at all in fact thv got a negative interest rate, in other words, you pay the authorities to keep your money. you give them a hundred bucks only get 99 back maybe you can help me with this where are we going with this how does this come to an end why are we in this situation? what is endgame here?

i absolutely don't know how this thing works itself out. dagen: poor management poor governance in europe certainly part of it, can you get your head around having to pay germany for the privilege of along that country money? loaning that reason i money where they are they spend so it well i pay you for the privilege. >> supposed to get economies going again you lower cost of borrowing money bring it down people have to spend money, and then they are not doing it europe is not quite entirely in recession but we have got word this morning italy is in recession everywhere else slowing down. again, what on earth is end game i don't think we have seen a situation like this, 11 trillion euros worth of negative yielding bonds what have we ever been there before how do we get out of it? i don't have an answer to questions going to be something bad isn't it no good

tend of this game if not working to get your economy going the end game is bad that is all i can say. dagen: you've got three hours this morning to come up with an answer, three hours, every monday through friday, stuart varney. >> i will take it. dagen: coming up exactly u minutes "varney & company" starts every day 9:00 a.m. eastern to noon mr. varney coming up bracing for a market sell-off at open, after president trump's threat of tariffs on mexican imports into u.s. scheduling pressure easing a little bit with better personal income spending numbers, we got the bottom of the hour mexico's mountain saying mexican people don't deserve to about treated this way he expects usmca still to be ratified stay with us. what's going on up here? can't see what it is yet. what is that? that's a blazer? that's a chevy blazer? aww, this is dope. this thing is beautiful. i love the lights.

oh man, it's got a mean face on it. it looks like a piece of candy. look at the interior. this is nice. this is my sexy mom car. i would feel like a cool dad. it's just really chic. i love this thing. it's gorgeous. i would pull up in this in a heartbeat. i want one of these. that is sharp. the all-new chevy blazer. speaks for itself. i don't know who they got to design this but give them a cookie and a star. but i can tell you liberty mutual customized my car insurance so i only pay for what i need. oh no, no, no, no, no, no, no... only pay for what you need. liberty. liberty. liberty. liberty. ♪ run with us in the unstoppable john deere gator xuv835, because when others take rain checks... we take the wheel. run with us. search "john deere gator" for more.

>> turning to millennials, parents new poll shows instagram generation wants mom and dad to keep the distance. lauren simonetti has details. >> is if you can't choose your parents but you can choose where you live, and for millennials choosing to live 15 to 45 minds away from mom and dad, 62% say, 4 % saying you know what we love you don't pop in, unannounced this is a major stress according to ally home so 52% say road trip you don't have a radio, right there another stress is living close with inside minutes from

parents. perhaps one of the bigger stroes is whole issue of home affordability. >> i like political -- i am saying -- >> mom and day about my dad? >> giveaway stress going on road trip with parents what are they 27 go on road interest up. >> i was trying to think where that would with happen road tripping with dad sounds fun would love to go on road trip with dad watching right now so not like i would say anything else, dad is the best. >> -- twitter account. >> dad -- one day like to live with you? because as much as millennials don't want to live with mom and dad mom and dad when they get older don't want to live with older children. >> my dad would never say that about me! he misses me very much. >> you are holding back now. >> i think -- yeah good to be close to parents when you need them for a lot of kids, when you don't need them they want space not speaking about my

children specifically but i have seen that a lot, that you know you want your space until you don't want your space then you want go to mom and dad. >> we have seen in market cohousing tradition -- >> live in basement cohousing, called kids are in basement. >> there is a reason for this a stress aurnlt of homesteads for millennials cheaper homes no supply of them, 3.3 months average that is it. >> they don't want to buy them they are in basement in "washington post" not enough incentives for millennial to have babies get married have kids tax code set up to haveto babies buy houses they gripe they need more incentives. >> they don't know how to go adulting without government telling them. >> once you have it -- >> got more stuff to do after that. >> -- podcast. lauren off from podcast --

>> would be awesome lauren thank you. >> sorry to cut it stort right right stay with us more on the market sell-off. let me ask you something. can the past help you write the future? can you feel calm in the eye of a storm? can you do more with less? can you raise the bar while reducing your footprint?

for our 100 years we've been answering the questions of today to meet the energy needs of tomorrow. southern company

♪ call j.g. wentworth ♪ (phone ringing) j.g. wentworth, how can i help you get cash? i want to pay off my debt and move into my own place. but i need cash now to do it. do you get regular payments from an insurance company? yes. in exchange for some or all of your future payments, we give you a lump sum of cash now. call now, and you'll also get $25 for receiving a quote. (announcer) call 877-cash-now.

877-cash-now. that's 877-cash-now. we are basing for the marke. the dow is easing a bit after personal income and spending numbers came in for the month of april. a bit better than education exp. this is after president trump threatened a 5% tariff on mexico. a final thought on the markets. >> the bull market is nervousness. everyone is panicking about everything. they said in germany it will cost them a doomsday. just because they are being thrifty. a 5% tariffs is not going to causa great depression. people are scared and it's irrational. >> i'll second that.

don't panic. sit at home with a plan about what you mr. will invest in. >> it's your anniversary? >> yeah, today. four years ago today. >> now it's mr. varney and company. >> good morning, everyone. in a nu nutshell this is what is happening. trump threatens mexico with new tariffs. the market sales off big time and interest rates go down more. mr. trump tells mexico take action to stop the flow of migrants or starting june 10th we will slap tariffs on anything you send to america. he sends his foreign minister to washington. they said it's a misuse of