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tv   Cavuto Coast to Coast  FOX Business  July 11, 2019 12:00pm-2:00pm EDT

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>> the story has legs. aoc says pelosi is singling out women of color. there is the story about the i.c.e. raids. stuart: chucked gender, race into this extraordinary discussion. what a day. i'm done. connell mcshane, good to see you. it is yours. connell: welcome to "cavuto: coast to coast." i'm connell mcshane filling in for neil. first of all president trump is likely to take some sort of executive action today over the census question. fox news has learned about that. alexandria ocasio-cortez says nancy pelosi is sing -- singling out certain members. we'll have the comments.
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flooding winds and a dangerous storm surge. we're all over it. how about this? a all-time high for the dow jones industrial average. we're above 27,000 for the first time ever. the market performing so well, thanks to some might say to an underperforming economy that has the federal reserve set to cut interest rates. gerri willis starts it off for us at the new york stock exchange. hey, gerri. >> connell, that's right. we're up 200 points. 61 points over 27,000 level. therefore i can wear my hat. one is outshining the others. united healthcare is up 5% after the president decided to kill a proposal that would have overhauled rebates collected by the middlemen between insurance plans and drug companies. unh owns optum rx. that is the biggest of these middlemen. dow jones reported that
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unitedhealthcare was responsible for 200 points of the dow's move. also contributing to gains today, goldman sachs and boeing each up. you can see here nearly 2%. the move to 27,000 took 372 trading days. that is the longest stretch between 1000 point milestones since the dow took 483 days to achieve 19,000 back in 2016. according to our own charles brady. the biggest winners at 27,000 were, get this, microsoft, visa, cisco. mr. softy alone jumping 4%. because of microsoft, visa, mcdonald's, accounted for all the dow's gains since the first close above 26,000. connell, back to you. connell: gerri, a lot of stuff. we'll see if we close above it. busy day at the white house as well. the president is likely to take executive action over the census citizenship question. but that is not it. he is also hold social media
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summit of his amid complaint from conservatives of censorship on some social media platforms. let's go to blake burman at the white house, he puts it all together for us. blake? >> let's start with the census. a senior white house official told me earlier today that an executive action or executive actions is likely what we're expecting from the president later this afternoon. we still do not have any details from the white house though, any specifics really, what those actions may or may not be. though we can tell you that attorney general bill barr is expected to be in attendance for this event later today. here is where everything stands with the census right now the 2020 census is being printed. it is being printed though without the citizenship question on it which is what president trump wants, however, a couple weeks ago the supreme court kicked the administration's case down to a lower court. democrats right now are already making the case that whatever the president puts forward later today, it will not hold up in
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court they say. >> so we're printing the forms. we fully expect the census to go forward. the president's effort to put the citizenship question on the census will continue to be challenged in court. supreme court destroyed the administration's argument that the question was needed to support the voting rights act. reporter: we'll hear from the president 5:00 this afternoon, hour 1/2 before that. the p will anticipate in a social media summit at white house. the president teed it up this morning, saying following in a tweet about the summit. it will address tremendous dishonesty, bias, censorship practiced by certain companies. social media as you well know, connell, no two bigger companies in that space are facebook and twitter though the expectation they will not be a part of this summit this afternoon. i reached out to both companies today and they did not comment.
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connell: we don't know for sure because you don't have the list? >> white house has been pretty tight-lipped on the list who exactly will be in attendance. we will hear from the president. connell: possibly in the rose garden if it doesn't start pouring rain. reporter: the census event was going to be in the rose garden potentially. it will pour down here this afternoon. connell: late afternoon, earl evening. thank you, blake. we'll get back to the social media question but on the census question will it as blake suggests lead to another court fight? almost definitely seems to be consensus. judge andrew napolitano is here, host host of "the liberty file" on "fox nation," among many other things he does good to see you, judge. >> thank you. connell: blake in his reporting as he should be is very careful to not say the president will necessarily sign an executive order because there are other options but what options are available to the president here? >> we don't know exactly what the president is going to do.
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connell: yeah. >> without getting into the weeds, inactive order to the president, direction to somebody that works for him in the department of commerce, for example, which runs the census telling them what to do. executive action is more of an amorphous phrase which expresses goals, aspirations wishes of the government, doesn't carry the force of law. if the president signs or purports to sign or says he is going to sign an executive order this afternoon directing the printing of the census forms with the citizenship question on it, i believe that will be stayed by the courts before the end of the day because this very issue is being litigated by two federal courts, one in maryland, one in new york city. both of those judges are bound by the decision the supreme court came down with last week. connell: the argument that the government has been making something to effect, we need a question whether someone is a citizen in order to enforce the voting right act, right? >> supreme court said that
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answer was contrived. connell: in other words they made it up just to get the question on? >> correct. for several reasons. voting rights act implies only 1/4 of states. enforced by the doj, not department of commerce, and doj did to the ask for this. can you come up with justification afterwards, not when you have a constitutional challenge. you can't come up with a new reason for something you didn't tell the court first time around. so i think the doj is in a pickle here. connell: it brings up all these wider discussion what is the purpose of the census is to begin with, which is just to count how many people are the in country. >> good question. not only to count only americans. not to account americans unlawfully here but all heim beings. connell: the question essentially how many people are in the house. there are other questions. >> the constitution only permits one question. how many human beings live there. the congress, however in my opinion defiance constitution, permitted ancillary questions,
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as long as answers questions help government do the job. connell: how old are people in the house. >> how many bathrooms s anybody living in the basement? connell: education, race and gender. >> depend which form you get, long form or short form. president, we don't know what he will do. when he wanted citizenship question, wanted on both forms. long form and short. connell: asking about that whether or not any of that creates a precedent for getting the citizenship question on? >> that is a very good question. it creates a precedence for this, the government must have rational basis for each questions it asks. when the government says rational basis voting rights act, you could hear the laughter up here in new york from down there in new york. connell: you have loud laughter. >> not just you. i know my laugh is loud. nobody believed it. connell: there is no other rational basis in your view? >> there is no other rational basis they could advance now. it would be an afterthought, you can't justify constitutional or
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unconstitutional behavior by an afterthought. connell: one thing we can definitely bet on this is boeing back into the courts. >> it will go back in the courts if he signs the executive order today. keeps everything, keeps everything status quo. connell: right. >> the supreme court ordered the two trial judges to keep their injunctions in place until they find out what the real reason is for asking this question. connell: good enough. i got to move on right now. that is always asterisk explanation, analysis of all this, judge. want to go to a tech story we're talking about with the white house, with the president set to tackle complaints coming in from conservatives there is bias with the big technology companies. now as blake said, we don't expect anybody from these companies, facebook or twitter, even alphabet to be there at this summit as they're calling it. from elevation partners, cofounder, author of the book "zucked," roger mcnamee joins us from out west. you have had your own issues in particular facebook, not necessarily issues, i don't think roger will be discussed
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today. what do you make of this summit as it is being called even happening without the companies at the white house? >> so, connell, there are some issues on which the administration and congress are now investigating these companies. that we can just add this to the very, very long list. the department of antitrust division is going deep on google with respect to antitrust activity. the federal trade commission is doing the same with facebook. there are investigations going on in other areas. congress is doing stuff. so, there are very real issues. the reality of these companies, they have this notion, that it is okay to take all of our lives, everything we do, convert it all into data, then use that to manage the choices available to us. i happen to think that's really un-american. i really think that america is about liberty, about making your own choices. we do not want to turn over our business life, our personal life
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to a bunch of algorithms. connell: there's a question here, i know what the judge would have said if i asked him about it because i have spoken to him about it in the past, if you say to a private company, they're basically saying there is a lot of censorship of conservative voice going on. you can get into debate about conservative opinion which is hate speech, back and forth in a lot of places, someone like the judge, hey, listen, these are private companies. even if that exists, even if that bias exists let's not tell private companies what to do. what is your view on that back and forth? >> i don't think any of us should want any kind of censorship of private companies. i think we should focus on this is important point, difference of freedom of speech which we all support, what is known in the industry as freedom of reach. the fact these guys amplify
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really hostile voices all the time. that is the core of their business model. the whole thing of conspiracy theories and hate speech, disinformation, those are catnip for these business models and they hurt everybody. it is just, you look at this, and i think it is completely legitimate, people say, wow, i feel like i'm being discriminated against online. i think every user is to one degree or another. these guys are building a model, not treating us as customer, not even by treating us as a product. they get our data, they use as fuel for their profits and i this that that, they have gone too far, that's all. connell: but you're saying essentially it is in their interests to allow some of this speech that might be considered to be hate speech to be there to get people reeled up. it helps business? >> for sure. connell: white house saying essentially the opposite. they're saying what i'm, what i'm putting out there is hate speech but their point will be it is not.
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it is a conservative opinion that the leaders of the companies don't agree with? >> forget politics for a second. what i'm saying connell, we're not dealing with issue of right versus left. we're dealing with issue of right versus wrong. this issue that, for example, we have an epidemic of measles going on right now. people are dying unnecessarily. because, disinformation and conspiracy theories on these platforms are treated the same as an alert about a national disaster right? connell: right. >> if you have got a hurricane going on in new orleans right now, if you're on one of these platforms it is just buried in there with all the other stuff that is going on. >> only way to do something about that, regulate them more. things like -- go ahead. >> i was going to say, i think you do need to change the way their business works, right? the at end of the day, this notion they're allowed to gather all data known about us, go to
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our banks, credit card processing companies. cellular companies, they buy all the data. they create a digital voodoo doll of each and everyone of us, that allows them to predict with uncanny precision what we're thinking and what we're doing. then they use the search results on google or the news feed on facebook to then essentially manipulate our choices? i'm sitting there going, come on guys, you can be successful without -- connell: the politics you're right, doesn't really matter left or right. the president makes that point. his point, his point essentially, if you google i think he said if you google trump news, of course you only find bad stories about me the president said but you're making a similar point in some ways, that information is being manipulated, that you find in a search? >> everything is being manipulated according to that digital data voodoo doll for each and everyone of us.
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they find stuff that provokes you. not necessarily stuff you agree with. connell: right. >> the stuff that gets you pissed off, right? that is the stuff that the algorithms are amplifying. they're not sitting there making a judgment about the content. they sit there, oh, wow, that got connell to be emotionally positive or negative. so i will hit that button harder and harder. my simple point about this we do not want to substitute the algorithms of google and facebook for democracy. that is just a terrible idea. when i say democracy in this case, your choice which road you take to go to work, which products you're going to buy. you would like to have, i would like to have the liberty of making my own choices without everything being manipulated by guys who have alexa, pokemon spying on us. connell: that is all fueled to earlier point by data. roger we have to run. great discussion, we'll see what happens later at white house.
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thanks for coming on. roger mcnamee. >> take care. connell: we said the dow crossed 2thousand. it is still above it. we'll follow the markets with fed chair jay powell on capitol hill. he is on the senate side. we'll bring you up to date on his testimony. on "after the bell," melissa joins me 4:00 p.m. eastern time whether or not the dow is able to sustain at these levels. close on a record, close above 27,000. we'll be right back. ♪ that move us forward. every day, invesco combines ideas with technology, data with inspiration, investors with solutions. because the possibilities of life and investing are greater when we come together. ♪
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best devices. best value. simple. easy. awesome. click, call or visit a store today. connell: we are indeed above 27,000 for first time ever on dow jones industrial average. jay powell on the senate side after being over on the house side yesterday, signaling openness to rate cuts. let's get to edward lawrence
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live on the hill. just wrapped up, right, edward? reporter: he just finished hearing there. chairman jerome powell told senate finance, senate banking urban affairs and housing committee that the economy is solid. he went on to say that trade tensions have increased uncertainty since their last meeting. he also says that the global slowdown is starting to seep into the u.s. data that we're seeing here. he believes the u.s. is undershooting inflation targets again. powell stressed that the federal reserve will use tools to keep expansion going. came closest ever saying there is a rate cut, without saying there is a rate cut. listen to this. >> i think we're learning that interest rates, that the neutral interest rate is lower than we had thought. i think we're learning that the natural rate of unemployment is lower than we thought. monetary policy hasn't been accommodative as we thought. i think we're learning all of those things. at the end of the day there has
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to be a connection, low unemployment will drive wages up, ultimately higher wages will drive inflation. we haven't reached that point. reporter: powell says the last time we had recovery was this long, was 50 years ago. the economy is drawing people in off the sidelines. companies are training workers to do jobs. here on capitol hill u.s. trade representative robert lighthizer speaking with democrats, working group, about usmca. democrats are concerned specifically about the worker, environmental protections in the agreement. the white house today released a statement about this saying usmca is the best trade agreement ever negotiated. it's a bipartisan agreement that deliver as win for american farmers, ranchers, businesses and workers. the house speaker has not scheduled a vote for ratification yet. i spoke to a high-ranking republican who says that they believe she is slow-playing this in order to make it uncomfortable for the administration. connell? connell: edward lawrence on capitol hill today.
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to edward's reporting you can look at it, you don't have to read between the lines too much the first rate cut in a decade is about certainty. whether or not that is the right thing to do, joe durant. a probability of quarter-point cut 79%. that is because some people are betting, joe, it actually might be half a point. whether or not they cut rates, but by how much, right? jay powell coming out saying i thought it was interesting the sound bite we say is federal reserve was not accommodative as they thought it was seeing. a lot of people would say the fed has been fairly accommodative a long, long time. we had rates close to zero for years. what do you make of that? >> well i think what he is saying, connell, he is basically saying to the president, you were right. i should not have raised rates last year. connell: right. >> i made a mistake. so that is as close as you will get to acknowledgement that was
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unnecessary move. i would say quarter of investors think it would be 50 basis point cut. that would be an overreach. i don't think that is what we'll see. i think it its unlikely. he says definitely will be a rate cut in july. what we're seeing is three things. number one, inflation is not coming with now months and months of incredibly low unemployment. number two we're very concerned about global growth. we're seeing that for sure in europe with negative rates slightly positive in some countries. three, we're seeing a concern about trade and whether the chinese and u.s. are actually going to get something done. connell: right. >> interestingly we have this weird paradox, more likely it is the president gets reelected, more likely it is he will get a deal. connell: right. >> the chinese right now are basically doing a standoff, as long as he doesn't get reelected we're probably better off stalling. if he might get reelected we might have to do something.
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connell: depends where you take it. funny enough, we have to squeeze a commercial break in. i apologize, joe duran. we'll get the break in. much more on a breaking news day on "cavuto: coast to coast". can't see what it is 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.
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connell: let's get to iran who is acting up again, trying to seize a british tanker in the persian gulf. backing off as after the british warship warned they would open fire. stephen yates is with this. one little thing is after another. i don't know if anything is little things. iran is pushing here. what is going on? >> they do test edges what they can get away with in many ways. we had the drone shot down recently. there have been attacks on other vessels in ports, you know, u.a.e. so i think they're trying to assert themselves in the region but also i think, they're running a little bit of a risk trying to provoke multilateral
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response. they want to get back to the old iran deal. >> right. >> trying to get the europeans to bring this administration back into the negotiation fold. connell: what would they think? i don't see this administration getting back into negotiation, nobody does under that old deal. nobody does. can they leverage europe against the united states and hope the president loses in 2020, essentially? >> i do think they, a lot of other people, listening to same advisors that told them trump couldn't win in 2016, telling them he will never get reelected waiting him out for better deal. connell: that would backfire. if he does win re-election, you're iran, you're kind of stuck here. the bigger picture question, whether it leads to military conflict. do all the skirmishes, provocations increase odds? >> it leads to miscalculation. every time they go out there, a warship is escorting a
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commercial vessel through the strait there is a risk things could go wrong. always have a little bit of escalation problem in the region. just like east asia with chinese challenging vessels. this was one where they tested, they got pushed back, they went back to their foxhole, sew to speak. we'll have more of this i think in the days ahead. connell: is there a strategic response from the united states that make sense here, something that changes that paradigm at all? what can the u.s. do? what are the options? >> the president has a lot of options, some he said he is not inclined towards. he has maximum pressure in place with sanctions. he talked about increases sanctions. they had cyber plan they talked about publicly. i hope there is a lot they're doing they're not talking about publicly. connell: on cyber front. >> absolutely. connell: this president doesn't want to go with iran. >> correct. connell: doesn't necessarily want to go to where anywhere.
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>> right. connell: that hasn't been his foreign policy, he wants to get out of wars generally speaking. >> right. connell: he is trying to avoid that any way he can. cyber is a way to do that? >> cyber is a way and pressure allies to do what they need to do in the region and otherwise. conspicuous this british vessel guarded by british naval capability. that is one of the points president was making. others need to secure the region, not u.s. alone or try to get on our back for security. connell: basically saying europeans are not doing enough here? >> they played a double deal. they have done business with iran. some ways they have blunted sanctions. they do try to press us to make deals. when we're the one that is there to stand by israel at times when european allies are not as clear in support of our allies in the middle east as well. connell: all right. stephen yates good to see you. thanks for coming in. >> my pleasure. connell: as we move on, this
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feud we'll call it, people seem to be calling it on capitol hill between these two members of congress, speaker of the house, nancy pelosi, and aoc they have been going back and forth with, at times nasty public comment. aoc had some stuff to say and then the speaker not long ago, certainly not backing down. we'll bring you her comment when we come back here "cavuto: coast to coast." don't go away. ♪ my experience with usaa has been excellent. they really appreciate the military family and it really shows. with all that usaa offers why go with anybody else? we know their rates are good, we know that they're always going to take care of us. it was an instant savings and i should have changed a long time ago. it was funny because when we would call another insurance company, hey would say "oh we can't beat usaa"
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connell: now to this feud between alexandria ocasio-cortez and speaker of house nancy pelosi. if anything getting bigger over the last few hours even as aoc has accused the speaker of singleing out newly-elected women of color. that is a quote from here. came after miss pelosi scolded members of her own caucus for use of twitter. speaker pelosi certainly not backing down. her comment from earlier today. >> they took offense because i addressed at the request of my members an offensive tweet came out one of members offices that referenced our blue dogs and our new dems, essentially as segregation its. our members took offense to that i addressed that. how they interpreting and carrying to another place up to them. i will not be discussing it any further. connell: real clear politics, white house reporter phil
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wegmann joins us right now. he joins us from washington. we knew there was tension. it come out into the open a new way over last couple days, phil. >> alexandria ocasio-cortez, she has a very large public presence but it is not very helpful to democrats. that was essentially nancy pelosi's message just a second ago. this type of interparty fighting is really bothering democratic leadership because it comes at a time they would much rather be focusing their efforts on defeating donald trump in 2020 rather than mediating these squabbles between progressives and moderates in their own party. connell: is that all it is? is it idealogical? is some of it a kind of generational thing? that could play itself out. we saw debate stage in 2020, generational struggle in the party, young versus old? >> that is a smart pick up here. there is generational rift between the two of them, but larger thing is the idealogical
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question. nancy pelosi knows what alexandria ocasio-cortez is enabling is this type of circular firing squad inside of her own party. not only much farther to the left idealogically but she is pushing the entire party in that direction. republicans see this as a gift. regardless who wins the eventual nomination, they are going to argue that because of alexandria ocasio-cortez, and others, the party has moved so far left, whoever is eventual nominee, republicans say look, another democratic socialist. connell: of course it plays right into the argument. you wonder if you should bet against nancy pelosi? people have gotten that wrong many times over the years. we'll see if she can get things under control this time. i want to get thoughts on the alex acosta stuff, labor secretary was out there defending himself in the news conference defending the role he had in the epstein plea deal case in florida. here is part of what he said? >> simply put the palm beach state attorney's office was
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ready to let epstein walk free, no jail time, nothing. prosecutors in my former office found this to be completely unacceptable and they became involved. our office became involved. connell: phil, the question on political basis for someone like you covering the white house is whether or not secretary acosta did enough to help himself? was his job on the line? if so, does he keep his job after yesterday's performance? >> well the secretary certainly tried to do as much as he could to keep his job and to dispel questions. he took questions from the press for more than 50 minutes. several times even kept that press conference going when he had an opportunity to step away from the podium. like you just heard he seemed to be singling out the palm beach state attorney general's office. what we saw shortly after that press conference is a former prosecutor from that office came out in a very strongly-worded statement, accused acosta of
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trying to rewrite history. so there are more questions. there will be more controversy, because democrats are not going to let this to. so this is going to be a problem for acosta and the administration. connell: that keeps it in the news, right? that official said that basically everything acosta said was wrong, trying to pin the blame on local officials. phil, always good to see you, phil wegmann, "real clear politics" in washington. we'll get to the weather story. severe flash flooding hitting new orleans. the gulf coast bracing for the firstt hurricane of the season. we have an update. $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
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connell: gulf coast bracing for possibility of a hurricane. new orleans is already flooded. the worse may yet be to come. fox meteorologist rick reichmuth joins us with the latest. rick? >> the worst is likely to come in new orleans and along the
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mississippi river. beginning of the year, we need to refresh everyone, don't follow center, storms are one big point. that is where the center of the storm is. look at that big batch of thunderstorms way off to the west of it. most of it towards the southeast. not much activity in the center. that will make the storm, it will take a while to get itself organized f it does likely could strengthen quickly up to category 1 storm because these waters here are incredibly warm. record breaking temperatures for the water temperature here. that gives fuel it needs. we have tropical storm warnings in effect, hurricane watches in effect across coastal areas of louisiana. yesterday we saw one batch of storms move through the new orleans area that dropped eight inches of rain that caused incredible flooding. our big concerns with flooding, category 1 storm will that be such a big deal? because, connell, all the moisture this year, all of the rain way up to the north of it,
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the mississippi river is 16 feet at new orleans. at 20 feet is height of level vees. additional four feet of the river it will go over the levees. that is our big concern. for example, for reference point, katrina went through here, we're familiar with that. mississippi river was three feet. they had a lot of area to rise. we don't have that because the water is so high along the river. three to six feet, water moving up the mississippi river, up plaque can man's parish. that could potentially be catastrophic around the new orleans area. tropical models, most of them in pretty good agreement making northerly turn here. get the idea somewhere from louisiana towards mississippi. where it does make landfall, we'll will have some impact, who gets bulk of the rain. here is the water temperature i was talking about. water temperatures around 90 degrees.
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these are not temperatures for july. these are temperatures for later in the summer. this is what we have. future radar not if you fully getting act together overnight and tomorrow. doesn't have a ton of real estate to do that. because waters are so warm we're watching it. this is one of the models. look we have rainfall totals possibly going over the new orleans area. anywhere from 10 to 20 inches. we'll see 10 to 20-inch rainfalls, the other model does exact same thing. this is farther off to the west. we don't know where this will go exactly, somebody will get a bullseye of a lot of rain. because, connell that river is so high, that is our big concern. that flooding could be catastrophic. connell: very important perspective. doesn't take much given what they have been through or as much. >> you bet. connell: rick reichmuth. let's move on to trade. we're covering robert lighthizer on capitol hill working with speaker pelosi's working group, trying to pass the trade deal tweens u.s. and mexico and
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canada. we have former ambassador under president obama, bruce heyman. they're trying to get it passed by the fall, is that realistic for the usmca, do you think? >> putting a a timeline on is premature. reality if we find agreement to improve flaws in usmca, this can get passed very quickly. saying fall, summer, spring is the wrong approach. i think right approach, let's gets flaws fixed. we'll get that passed quickly. connell: talk about the flaws, this is up essentially to the speaker, when she wants to bring this to a vote. what would need to change? correct me if i'm not wrong, sticky situation with countries involved if there is change? tell me i can quickly what are the flaws. >> let's do this in most simplest of terms. the agreement we have are a set of rules, the rules are established in trade, existing nafta or new nafta.
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the question is what happens if somebody breaks the rules if what happens if mexico, u.s., canada breaks the rules? the issue is enforcement. that is the conversation that the democrat have been having with ustr, how do we make sure that the rules you put in place on labor and environment and elsewhere are upheld and enforced. i think that is where the language needs to be improved. i think the speaker has used words carefully, surgeally changing language so we protect american workers, farmers, the environment, et cetera, along the lines ustr is proposing in the agreement. connell: one last point, there are changes, you said they may be surgical, if there are changes what is reaction from canada, mexico? could we be back to square one potentially? >> look, canada, mexico are going to say every day that the agreement's good, they don't want to reopen it but the reality is, if the united states of america comes in and says
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we'd like to change these few words to enhance this agreement to make sure whatever we've agreed to is enforced look i have a lot of confidence that the united states can work with our allies next door to the north and to the south and get those changes implemented. connell: we'll see. sometimes seems like a new world out there in terms of how those relationships go together. bruce, good to see you. ambassador heyman, we appreciate you coming on. amazon set to retrain, really interesting story out there today, retrain a third of its workforce because technology is threatening many of those jobs. why it won't end with amazon just ahead meantime, tech giant amazon topped the one trillion dollar mark in market cap today, intraday. first time it happened in 10 months. a trillion dollars for amazon. we'll be right back. ♪
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connell: there is all kinds of things going out, going on in sun valley. big tech executives not at white house. they're out there today. secretary of state showing up. bigger than all of that, charlie gasparino who is still there. here he comes flying in for us. charlie, talk about your scoop or scoops. can you look up, please, charlie, if you're on the air. >> i'm sorry. i'm sorry. connell: i thought you didn't like me. >> i got my cue. connell: t-mobile, sprint, i was going to get into, your scoop or scoops, start from that, move from there. what are you hearing? >> here is what we got. reason i'm looking down, here is what i have my notes. this is what we've been reporting, i can't tell you this thing will definitely happen tomorrow the next day. what i said earlier in the week,
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i said two things, number one, likely tuesday or wednesday. that is how the deal talks were progressing, that doj would get comfortable with the structure of deal, sale of spectrum to dish, possible creation of a fourth network to alleviate the antitrust concerns. i also said, there is one potential roadblock. so don't believe anything until you see the press release. that is charlie ergen. that is exactly what's happening right now. here is what we know. some of it what we already foreshadowed. t-mobile and sprint, negotiations are run largely by john legere, ceo of t-mobile, dish, fattened up with spectrum is long-time worry, not just as competitor as a fourth network, they're not too worried about dish. they're worried about charlie ergen turning around, selling all the spectrum, including spectrum he has to major competitor, a charter, a
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comcast. that is the long-time worry. we reported that in the past. that is now come up in the discussions and it is still, that is still essentially, slowing the discussions where the doj would have a deal on the table where everybody would feel comfortable. that is the -- connell: that is the sticking point? >> that is the sticking point always been. even though looked like progress early in the week. for all i know, they deal with it tomorrow and it is done. i can only tell you my sources working for the government, working for the firms, tell me about the progress for the deal. it looks like tuesday or wednesday. this overhang i reported on 100 times on your show with neil, the ergen overhang, what he will do with the spectrum in the future concerning t-mobile, particularly john legere, he wants to put handcuffs. he can't sell it too soon. he could be the fourth network
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but can't turn around and sell it to comcast which would be a huge competitor in the 5g space. we have that out of the. turn to pompeo. connell: what is significance of i am being there? >> we can only go what we've been told. i haven't seen him riding around here. you usually see people walking around. we've been told by people in the conference, that he arrived, is here. mike pompeo, secretary of state. which is interesting. you usually get economic types, ivanka trump, eric trump, they were here two years ago. mnuchin was here invited last year of the those are more people in the economic sphere of the trump administration. as you know jared does everything, right? pompeo is here raises a few eyebrows. why the secretary of state? some people are tied up with trade negotiations, larry kudlow, steve mnuchin, you
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name it, speaks to his power within the administration. he is clearly rising star. he came back from international trip, i believe from asia over last couple weeks, meeting with various players. he is a player, a major player in this administration. connell: right. >> send him to a place like this. why is the place important? billionaires galore. 5g is here. negotiating 5g rollout in the united states. the players are here. this is big important -- connell: that is big important policy issue. 5g in of itself. we'll come back, charlie, if you hear anything from the secretary or anybody else. charlie gasparino. >> if i run into him you will be the first to know. connell: text me. charlie gasparino in sun valley. we'll take a break. we come back we'll talk about the president announcing executive action on the census that is going on at the white house. why it could cause more legal issues. that's when we come back. [ dogs barking ]
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connell: we've got a lot going on today. france passing a digital tax, that being passed despite threats here in the united states. then we have this feud between the speaker of the house, nancy pelosi and congresswoman alexandria ocasio-cortez. it's out and it's public and if anything, today it got worse. plus new orleans already under water ahead of a possible hurricane that could hit there tomorrow. we are all over all of that. it's hour number two of "coast to coast." starts right now. connell: all right. good to have you with us. busy thursday. connell mcshane filling in for neil. we're looking at these markets, up 200 points plus on the dow and crossing that mark of 27,000 for the first time ever. of course, a lot of it is rate cut hopes. 27,065.
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constitutional law attorney jenna ellis-reese is with us. moody's chief economist john n lonski and deirdre bolton is with us. we talk round numbers all the time. the guy at the stock exchange -- deirdre: i was going to say, there's hats, gear, swag, tee shirts juggling down there. connell: exactly. but the reason that the markets go up now is the debate, john will get into this, too, i'm sure, you're going up because the economy is suffering, we are counting on rate cuts, it's kind of an interesting time. deirdre: just when we heard from the testimony from fed chair jay powell, he seemed to confirm that we're going to get a cut at the end of this month. i think that's pretty much what buoyed the markets yesterday and today and if you look at the pattern, it's risk on. treasuries are up, gold's up, stocks are up, dollar's down, okay, fine, maybe slight
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worrisome, but i feel like markets are -- and investors are saying we get the cut. we got it and here's the result. not sure that's the best idea. we can talk about that. >> markets are further assuming that these rate cuts will prove effective at rejuvenating business activity. that's been kind of flat. we noticed a decline, the year to year growth rate of business sales with and without energy products since last summer. this has got to end soon. if it doesn't, we are going to be in trouble with capital spending and eventually employment. connell: right. right now, it's great on the employment. >> definitely. connell: what's the risk here? sometimes you say everybody gets all, you know, we can talk all the time about the economy being great now and that's fine, and the employment picture being great now, which is also true and fine but what's the risk here if we get into rate cutting mode? >> the risk is that spending doesn't respond to lower interest rates and the other risk would be that the fed is too slow at cutting rates for the purpose of getting this economy back up to speed.
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those would be the two big -- deirdre: using all the dry powder, right? if something does come up that's a threat, what tools do you have left. i know there are people who say there's plenty of tools, there's all forms of qe, there's things they can do, but what most investors understand is just moving the rates around so if you cut them and they in theory don't really need to be cut, then also you are pushing people to take more risk. we are already seeing risk on and we saw -- connell: that's one of the dangers of the corporate bond market. if benchmark interest rates drop too low, companies start adding on too much debt. connell: why not, yeah. >> i think the key thing here is to keep the stock market where it is, if not moving higher, have it move higher, the economy growing, profits have to grow. that's of critical importance. according to facts they provide these estimates for s&p 500 earnings, growth rates, they have earnings per share declining year to year, first three quarters of 2019. that's got to end after the
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third quarter. if we are going to have a continuation of this -- connell: it will be really interesting. one quick point i want to move on to the census question. go ahead. deirdre: i was just going to say, to your point, it's quite possible this pe expansion is due essentially to higher bond prices, not so much to growing profitability. that's a huge important point he just made. connell: all right. we will come back to all of that. we have plenty of time to talk about all of that. in your area of expertise today at the white house, it's -- something's going to happen. the president is going to use some sort of executive action related to a citizenship or related to the census in some way, whether that is directly related to citizenship or he tries to find a different way to count how many people are citizens in the united states. a lot of what's going to happen later is unclear, then there are legal questions about what the president can do. what do you expect? >> yeah. well, i expect that president trump is going to try every legal avenue as the attorney
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general has said to get the citizenship question reinterstated on the census. i think that's a very important point. this question in some form has been used since 1820. this is nothing new. this is nothing that should actually even be a political hot topic. this is actually a mundane sort of routine thing. what people need to understand about the census is that article one mandates that the federal government take an accurate count for the purpose of apportioning the house of representatives. but article one does not provide the process. who provides the process? congress. connell: we were having this discussion with judge napolitano last hour. he has a different point of view which is fine. that always happens in the legal community on some of these issues. but his larger point i think was that if you are conducting a census, the real point is just to count how many people. that's what the constitution says. in the judge's interpretation, how many people are in the country. if you start getting into these other issues you have gone too far. he backs it up by saying the courts have already said that, the president goes back, he will
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lose again in the courts. >> but the courts actually said the citizenship question didn't violate the enumerations clause or the implementing legislation. they only asked for the political point of the process question. connell: the voting rights act, right? >> with the voting rights act. connell: whether that's the reason for putting it back on. >> the reason shouldn't actually matter. the 14th amendment clarifies who persons are under the constitution. i think there's a very good argument that persons means citizens. for the purpose of an accurate representation, are we going to count visitors or people who can't vote? this is a very clear-cut issue that for the purpose of free and fair elections, there is absolutely no reason other than politics this shouldn't be on the census. connell: we will see how he plays it today, by the afternoon or evening. the other thing, guys, before you guys go, i want to get a little into foreign policy and the 2020 presidential race, because the former vice president, joe biden, is beginning a speech at this hour here in new york city and he's supposed to outline his plan for foreign policy.
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of course, there's a couple things here. obviously he's been around forever, he was in the senate, he was vice president and -- deirdre: senate foreign relations committee. connell: he has the credentials on foreign policy. for our purposes, i think china is one thing that people will talk a lot about. the one time he brought it up so far during the campaign early on, there was a lot of pushback on the question of china. there are other issues. deirdre: i was going to say he's going to have to field, i don't know if it will be open to the press, but i think he will field some questions whether it's today or later, apparently our sources say he was the one who advised president obama not to go after at least at that particular junction, osama bin laden. connell: it's okay to say you have your credentials on foreign policy, another to say whether or not you were right. >> and whether he's been consistent as well. i think that's something that's a really big problem for him. connell: on what issues? >> that he's on foreign policy and almost everything else, he started his campaign on basically an apology tour and has gone even in the 2020 debates, he's kind of gone back
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and forth on where he actually stands because he has a long track record, he's actually flip-flopped on a bunch of issues. connell: one of the things people look at here, maybe even investors, is joe biden still or should he be considered the democratic front-runner and most likely opponent for the president. do you look at him that way? >> well, i do at this point in time, but i can't help but think that these millenial democrats are going to have their george mcgovern moment when it comes to nominating a president and what happens in the 2020 president l presidential -- i must add democrat baby boomers had a mcgovern moment, a real one, back in -- connell: you want to go too far left it will backfire. >> unless donald trump makes some horrible mistakes. there's a lot of similarities with the public's attitude towards donald trump and their attitude towards richard nixon, who beat mcgovern handily in the '72 election. deirdre: i don't know what biden is going to say other than
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today, other than i am not president trump. one thing that he said, we are going to call together the world's democracies, i'm going to try to mend some fences. we had this incident with the uk ambassador, right. so i don't know, he's going to have to differentiate that message in some other way. >> he totally failed to do that during -- connell: one is china, which i mentioned, and the other is iran. you could argue both china and iran, if you try to look from their point of view, are trying to wait out this president, hoping they have a new president. if you are iran, you would probably rather deal with the president who was in the administration that -- well, he was involved directly with the iranian nuclear deal. how does he handle that issue and china? real quick. >> you know, i think trump actually showed us we do have some issues with china. we have issues with iran. it's going to be very difficult for the next president, democrat or republican, to suddenly just push aside these issues, to forget about them. they're out there. there are many democrats who
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disagree with biden's ambivalent attitude towards china. pretty sure about that. especially on trade. connell: they're not a threat or words to that effect. you guys are coming back. we will talk to you later. on this story about immigration, we will get to it in a moment, i.c.e. reportedly prepared to carry out raids, deportation raids, and those could happen according to the "new york times" as early as this sunday. that's coming up next. we will talk about what that might look like. don't forget to catch "after the bell" at 4:00 p.m. eastern time. we will see whether or not the dow closes above the 27,000 mark, more on jay powell and more on whether the markets close at record highs. we'll be right back. hey, who are you? oh, hey jeff, i'm a car thief... what?! i'm here to steal your car because, well, that's my job. what? what?? what?! (laughing) what?? what?! what?! [crash] what?! haha, it happens.
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connell: this "new york times" story, the "times" is reporting that i.c.e. is set to carry out deportation raids and start those raids as they call them, this sunday. back to our panel. trump 2020 advisory board member jenna ellis-rives is with us, deirdre bolton and john lonski. there actually are legal questions even on this one. for example, i didn't know if someone from i.c.e. comes to your door, apparently, reading this in the "times" that you don't have to open your door. they can't forcibly enter. i wonder how that will mix things up if this story is right and they start these raids, how effective they will be. >> it depends. certainly we have the fourth amendment that's in place for unreasonable search and seizures and you know, and unauthorized entry without a warrant, those kind of things. let's remember that president trump is doing everything that he can to secure the border and these types of things, this isn't just to terrorize. these are people who have already been legally required for deportation.
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connell: they were given that hearing date, then didn't show up, probably, in some cases. >> in some cases. this could be either -- but in whatever their particular case, these are people who have been authorized by the court system to be removed. so why are they still here in the united states? these are people who had due process, even more than i believe the constitution requires, right, so to remove them is part of law enforcement's job. this shouldn't be as big of a political question as it actually is. this is just something where people are looking at the trump administration and trying to make this an overblown political issue, where president trump is actually promoting the safety and security of the american people. connell: let's talk about that. deirdre: sanctuary cities, right, where cities and states have been protecting people. it should be states' rights versus almost federal law we are setting up in some areas. >> i'm glad you mentioned that. sanctuary cities are fundamentally unconstitutional. when you have federal implementation and article one, section 8 gives congress the ability to provide uniform rules for immigration and naturalization. when you have sanctuary city policies that overstep a state's
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role constitutionally, when that power is given to the federal government, those are absolutely unconstitutional. connell: your point is it shouldn't become, you were saying earlier, a huge political issue. it already is, obviously. is it a winning one for the president? the risk, something the "times" brought up about this today is you get into the situation if you start arresting young children, that becomes the news story. >> then it goes and backfires. it might especially backfire among women voters who are undecided, who are perhaps more sensitive to this issue. i want to make another point here. there's no denying the demographic change the united states is going to go through over the next ten years. we need immigrants. put it this way. in the past, we used to have working age population, those 16 to 64 years of age, grow by more than two million a year, the senior citizens growing by a quarter million. next ten years, the working age population, that growth slows to
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a quarter of a million, 250,000, while the senior citizens are growing by 1.8 million. making a switch. connell: you are making an economic argument. >> that's one of the things. they have to look at this issue, i think, more soberly, let's say, and come to the conclusion, the inevitable conclusion that you perhaps need more immigrants in order that at least you will be able to fund the retirement. connell: quick point. >> we need legal immigrants. in the past president trump has consistently said congress needs the reform that. quick point on children as well. so many of these children that are coming across the border are not actually related, they are being human trafficked and so the left is playing on that narrative to get women voters to be sympathetic when you actually look at the amount of children that are coming across being human trafficked, this is something, there is a humanitarian crisis but president trump is on the right side of this. >> i agree with you. connell: there you go. i was going to say quick point -- >> no denying the demographic change. connell: which is another big
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economic issue. deirdre: go back to congress. connell: thanks, guys. we appreciate it. in a moment, nancy pelosi hitting back at aoc, alexandria ocasio-cortez, with this i guess feud they're having. the latest for you when we come back. what do you look for when you trade? i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪ on a scale of one to five? wait... one to five? when it comes to feelings, it's more like five million. there's everything from happy to extremely happy. there's also angry. i'm really angry, clive! actually, really angry.
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connell: back to the speaker of the house, nancy pelosi, certainly not backing down in this feud that she's having with congresswoman alexandria ocasio-cortez. the democrat fund-raiser and donor and real estate developer don peebles is here. this kind of sets up either an idealogical fight within the dkdk democratic party or generational divide within the party, but strong words, aoc going after the speaker, the speaker going right back at her. what do you think? >> we are having a generational kind of civil war right now. aoc is really not a politician so she doesn't understand the nuances of politics. the house of representatives is
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kind of a congenial get-along environment, so you have nancy who probably has stayed too long, and you have aoc and her group that want to kind of take over. they've got to just have a big tent where everybody can work together and get in. i think that's what they are struggling with. connell: is it fair for ocasio-cortez to bring race into this equation, saying women of color, you know, are kind of being singled out is what she said by the speaker of the house? that fair? >> i don't think that's really relevant in this moment, because i think she's being singled out because she's probably the most visible member of the house of representatives right now. probably aoc has got more visibility than the speaker. i think she's struggling with that. i think this is more about the speaker trying to maintain control of her caucus. aoc and others disrupting her caucus. and also, aoc's inexperience. making a lot of mistakes politically. connell: what does it mean for 2020? that's kind of the bigger picture. we can talk about what it means for legislating. doesn't seem like much is going
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to get done big picture wise between now and then. what does this mean for 2020, this fight within the party? >> i think they are running a risk that they go into 2020 without a real vision and message. if you look at the democrat debates, two of them they've had already, no one's talking about where they want to take america. they are all talking about how they are going to beat trump or how they are against trump or what they're against and they're pointing fingers at what each other's pasts have been but no one's looking forward. same thing is happening with pelosi. she's trying to run the party the way it's been run for 30, 40 years and these people want change. i think it's going to put them in an unstable position and the democrats need to get a message, they need to start articulating the future. connell: i was in miami for those debates, and particularly on night two, a lot of it afterwards, there was talk about the actual issue that came up, between kamala harris and vice president biden on busing but in the spin room that night, it seemed like it was more about the tone that, she was able to
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stand on that stage and really go after the former vice president. you could tell she needed to establish herself and know all the politics behind it but what did you make of that? did it really change the race? >> i mean, if the world were a movie or broadway play, and running for president was one of those, she would do really well because she scripted that out. i mean, biden should have known it was coming. he didn't expect it coming from her. connell: you got to be ready for that, though. >> yeah, i think he's got to be ready for it. they are making an issue out of what happened 40 years ago. let's talk about what biden has done as vice president, what he's done in the senate, what he's talking about now and more importantly, kamala harris needs to articulate her vision for america. it's going to have to be beyond reparations, it's going to have to be beyond increasing housing for minorities which are all very good causes but where does she want to take america? she hasn't articulated that yet. knocking biden down so she's the last candidate standing as a centrist democrat is not going to be the way to be successful. connell: you have been around this party for a long time and
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watched these kind of things play out. maybe this is new, maybe this is different now, the likes of aoc and social media and everything else involved in it, but how many of these democrats, in your view, if you look at it, try to look at the analytics or look at the state, how many could actually beat the president? i'm sure you think biden could, right? >> i think biden is the best chance the democrats have. he is going to have a tough problem. look -- connell: if biden ran against trump today, think trump would win? >> i think it would be more of a fight than people think. i think the reality is, look, he's four points ahead of trump and harris is about three or four points ahead of trump. elizabeth warren cannot beat donald trump. no matter what the polling says, i think you look at who's left. i think it's really biden is their best chance. cory booker in theory, he's got some good qualifications. but i think it's going to be a tough race for him. i would say the top three -- bernie sanders is not going to beat donald trump. anything that's a choice between socialism or capitalism,
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capitalism's going to win. this is a capitalistic democracy. connell: that leaves warren out, too far left. you have biden and harris. you said three. you throwing in mayor pete? >> no, i think of all kind of the dark horse there is booker. i think booker as a mayor -- connell: haven't seen much out of him. >> he just hasn't gotten traction. look, kirsten gillibrand has conducted herself well and stayed on issue so i think in terms of debate performance, i think she would have been someone under different circumstances that should have gotten more points. there's too many of them up there. most of them are not capable of being president or qualified. now you got to get that field a little smaller. maybe it will be a different argument in the fall. >> i'm struck by the fact this is such a weak field. connell: really. >> so many of them but they are very weak. i haven't seen so few people running for the nomination that are qualified to be president. connell: that's really interesting. good to see you. thanks for coming in.
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quick break here. president trump himself holding this big tech summit, social media summit, i think he's calling it, at the white house. many of the big tech leaders from silicon valley are not there. they weren't invited. in fact, they are out in sun valley at the big conference there. we will have a look at both meetings, next.
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connell: when you look at some of the big leaders from silicon valley, you thought maybe they
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would be invited to the white house today. you would be wrong about that. but many of them, there's tim cook, are out in sun valley for the big conference that's taking place out there. jackie deangelis is there for us. she joins us with the latest. hey, jackie. jackie: hey, good afternoon, connell. that's right. they are not going to be at the white house. they are here in idaho. they come every year, the tech giants and the media titans, they come together to listen to panels, to have conversations, not just about industry issues, but about politics, about social issues as well. little bit of everything. of course, you can check out this beautiful landscape behind me. they take some time to bond and do activities in the afternoon as well. we saw tim armstrong here this morning. we saw barry diller and we saw bob iger and his wife, we saw tim cook, we saw ceo of fox corp and this station here as well. all of those folks here having
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major important conversations. what's interesting, they say it gives them an opportunity to sort of branch out, to think about things that they haven't thought about before, and one of the themes is what's happening in washington and this criticism that these social media companies specifically are under, how much regulation are they going to face, do they want the merge more with media or try to keep that separation. it was interesting because john malone told us with respect to facebook, amazon and google, he said they are fabulous, he said they have changed the world and he said you can't fight them. certainly there's a feeling here that these industries are coming together and in some way, with their growing pains, it will all have to work itself out. connell: good reporting, thank you, from sun valley. as that's happening out there, president trump's social media summit as it's being called, happening back in washington, missing these notable names, as jackie pointed out. bret larson is with us, fox news headlines 24/7. it's interesting, you have a social media summit without the likes of facebook or google or
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twitter, right? >> so what's the point, really. connell: i don't know if it's a point -- are you bringing people together or rallying your own base in some ways. >> it would be more the latter and less of the former. you know, we have been hearing this from the president, it's gotten heated more so over the last couple of months about this censorship of him, censorship of conservative voices, shadow banning, these are all things that we keep hearing about. i've had conversations with facebook and twitter, i have talked to twitter extensively about these accusations of shadow banning and they stand by it very firmly that that is not what is happening. we have to look at social media as a bit of a popularity contest. if you are saying something that is popular among people, you know, the algorithm doesn't just know what you like, it also knows what i like, what other people like, and it's going to unfortunately for, you know, a conversation, it's going to prevent me from seeing a lot of things i may or may not agree with. so if someone is talking about things on social media that i
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don't agree with, it's likely not going to end up in my twitter feed. connell: often what ends up, you know roger mcnamee, one of the big names in venture capital, he wrote the book about facebook recently, he was making the point what often ends up there is the stuff that gets you the most fired up, and he was talking about that's because they have so much data on us. let's listen to what he said. here he is. >> should be focused on, and i think this is a super important point, the difference between freedom of speech which i think we all support, and what is known in the industry as freedom of reach, which is the fact that these guys amplify really hostile voices all the time, and that's core to their business model. connell: right? >> it's the tv ratings model. you want to get the most eyeballs on your stuff, and you know, we've seen this a lot in
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local news. that's why when you turn on the local news, don't see a story about puppies. you see a story about a car crash or fire. connell: if it bleeds, it leads. >> that's what's going to make you -- he's absolutely right. the more extreme stuff, the stuff that really gets us involved, but it tends to be extreme stuff that still kind of falls in with where we believe maybe a little outside of our coverage area but still something we want to talk about. connell: i think that's the argument which is separate from what roger is talking about, that's the argument that might be happening or being put together at the white house today because you have -- there's all conservative voices that are going to be there. supporters of the president, largely, as far as we know. unless something happens that we don't expect which sometimes does at the white house. but these are the people that are going to be at the white house today and they are making the argument that the speech that they have is being, like you used the word shadow banning which is out there, that there's a dispute now, it seems, about what is really hateful speech, what is really provocative speech. they might say it's just a conservative viewpoint and someone at the company who they will argue is just a liberal who
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doesn't understand or agree with them, is saying that now you're banned because of that, it's not hate speech. that seems to be the real debate here. >> there is a lot of back and forth. there's a lot of meat to this debate which is probably why it keeps going. but we don't know who's at the white house, which is a good point. they should be there. but the other thing that we're seeing a lot here is it's not just what you're saying that's getting you banned. it's things that you have said in the past. it's people that you have liked, it's things that you've liked. there's a whole soup of data, sorry to use that expression, but there's a whole collection of information that goes into deciding where things go. the other problem that a lot of people are having specifically with facebook, you know, you spend all this time getting likes, i need more people to like me, i need more followers, i need more whatever to build my brand, that doesn't necessarily mean if you've got 300,000 followers that all 300,000 people are going to see what it is that you're writing. now facebook is saying we want you to pay to promote that post. we want you to pay to reach a
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wider audience. you can't just spout whatever you want. connell: some of this might change and that may be part of what's happens today and in coming days. let me get to hillary vaughn. she's done some terrific reporting, in fact, last week she came out with a report that these catering trucks at the airports were not passing proper security protocols. she joins us from washington. now i guess the tsa has moved on that, made some changes, right? reporter: that's right. we are learning the tsa issued an internal memo on the heels of our report that exposed a major security flaw surrounding catering trucks. the memo that we obtained that was sent out widely internally at the tsa says that they need to make some changes to their catering screening process. last week we reported on a trove of internal documents that show catering trucks roll right through our airport gates unchecked by tsa. instead, they farm their security out to private contractors and trust them to stop explosives from ending up
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airborne in catering carts. our investigation, though, turned up tsa internal audits that proved these private contractors repeatedly failed to follow protocol. in 2018, the tsa audited a catering company that served airplanes at jfk international airport, they found that 95% of these security contractors failed to correctly check the catering cargo before it was delivered to the airplane. in this new memo that was issued two days ago, the tsa recommends that something new is done, that searches now include tsa employees and not just airline workers and their paid contractors. whistleblowers point to this addition in the memo saying, this is in direct response to our reporting that the tsa is denying that we are the ones who prompted this investigation. instead, they say they discovered the issue in what they call a special emphasis assessment giving us this statement. quote, the referenced special assessment was conducted in march and april of 2019, as with
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sea's working group to discuss enhancements to policy, security measures, training and procedures as a result of the assessment's finding. one interesting piece of information that was in this internal document, they also found a major security flaw not just with food, but other products being delivered to the aircraft unchecked and unscreened, including buckets of ice, magazines and blankets that are then delivered on to the aircraft. connell: wow. terrific reporting, obviously. i know you will stay on this, make sure these changes actually go into place. thank you. hillary vaughn in washington, reagan national. in a moment, new orleans is bracing for a potential hurricane on top of everything else that may come this weekend. the latest on the storm's path after a quick break. we'll be right back. from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time...
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around new orleans. this with tropical storm barry taking aim at the gulf coast. casey steagall is in new orleans and joins us now. talking about this earlier, because of what you're going through, it's not going to take much with this storm to get those, because the water levels are already so high, right, that you could have a real issue on your hands. >> yeah, exactly, connell. nowhere is that more evident than the mighty mississippi river back here behind us. it is extremely high. in fact, 16 feet or so. and the levee system, all eyes are going to be on these levees because these are the levees that were heightened and they were rebuilt following hurricane katrina and they range 20 feet to 25 feet high. so again, the river's already at 16. we are really hoping we're not talking about any type of a significant storm surge here. the problem is, there's not much wiggle room. so thousands are not taking any
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chances. they are sandbagging, they are boarding up, they are getting out of town. here is the governor of this state. >> we know it's going to be a big storm, a significant rain and storm surge event. if you haven't already prepared yourself and your family, for severe weather event, you need to go ahead and do that. reporter: many have told us they are afraid that yesterday's torrential rains could be a sign of what's to come. look at this video. yesterday morning, basically new orleans came to a full and complete stop. eight inches of rain fell in a few hours, but it was localized flash flooding, sending it into businesses. in fact, the hotel we're staying in took on water, but then it all went down. emergency management officials say more is on the way, some 16
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inches in spots, before monday when this is all said and done. connell? connell: wow. all right. casey, thanks. casey steagall in new orleans. now, to the debt clock is ticking and has been for quite some time. the treasury secretary steve mnuchin urging congress to raise the debt ceiling before its recess in august. this is the federal reserve chairman jerome powell gave a warning, a stark warning, to the congress today. take a listen. >> what will happen, i think, is we'll just spend more and more of our precious resources paying interest on debt as opposed to investing in the stuff that we really need. connell: ben stein joins us now. i guess that's kind of obvious, right, but put succinctly by the fed chairman. we're going to be paying this interest forever, can't do other things, but nobody ever seems to get it. >> nobody's ever going to get it. it's supply side economics which is the doctrine of the trump
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administration, says we can just keep running up the debt forever, and we can't. at some point, the interest on the debt is going to crowd out spending on defense, crowd out spending on social security, crowd out spending on medicare. at some point the interest on the debt is going to get to be so high it's going to cause a choke in the general business of government. this is really a tragedy and it's really due to supply side economics, i'm sorry to say, because i like art laffer very much. but we've just got to get our heads out of somewhere and realize that we cannot keep spending more than we're taking in. connell: we won't tell art you said that, of course. he watches a lot. >> he's a great guy. really great guy. connell: it's interesting, because we have been having this conversation forever. there's a couple parts to it, like i had the former cbo director on last night or yesterday, and one of the things we have is this debt ceiling we put in place. i said why do we even have this, because what's the purpose? at some point we always raise
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it, right. it just becomes about politics and you give a little, take a little. i feel like it never really accomplishes much. maybe there's a better way or i guess common sense, but why do we even have this debt ceiling? >> why do we have common sense? when there is no common sense in the government? the amount by which this debt is growing each year is enough to bankrupt the country within a measurable period of time. i am 74 years old. so i don't know if i will live to see this country go bankrupt, but my son is 31. he's going to live to see this country go bankrupt. god bless him but i don't know what he's going to do when that happens. connell: powell got into that a little bit today. he said, he did bring up the point, there's still the reserve currency, we can borrow at low rates. so you can kind of keep this going. you might not like it but you can keep it going for an extended period. >> you can keep it going for an extended period, until that period comes to an end. my father, who was a very famous economist, had a saying which is
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if something cannot go on forever, it will stop. we cannot keep running up the deficit forever, it will stop. it's going to stop with tears, not with laughter. it's going to stop with people saying what happened, we can't defend our country anymore. something is drastically wrong. it will not take that much of a wrench to get things straightened out. we are going to have to raise taxes. i hate to say it, because i'm a high taxpayer myself, but we are going to have to raise taxes. there's just no two ways about it. connell: sometimes the simplest things are sometimes the most effective. thank you. we have to run. always good to see you, ben stein. thanks for coming on. >> thank you. connell: amazon, this story out that amazon is going to be retraining basically a big part of their work force with the threat from technology. we will talk about it, what it means, when we come back. [ sigh ] not gonna happen.
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connell: here's a story definitely worth talking about. concerns being raised as employment of prime age men, 24 -- 25 to 54, essentially, that's been falling. our panel's back. you know, this came from deutsche bank. they put out research and the first thing the trump advisory board, this is kind of the group, i think, that would help elect the president. there was already a lot of anger so to speak brewing in this group, a lot of it had to do with jobs, i would think. >> obviously the unemployment rate overall has dropped but i think that we can look at society and the culture that are really targeting white men in this specific demographic and when you look at all of the, you know, the employment stuff that people have to make so many hiring decisions, a lot of
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companies are choosing these so-called diversity -- connell: the type of jobs they have which are a lot of times impacted by technology changes and the move to automation which is probably the biggest part of this, but people mentioned the opioid crisis as being part of it. whatever the case ages 25 to 54 declining about 100,000 over the past three months, according to deutsche bank. what does it mean? >> well, this is highly unusual. the last time we had an unemployment rate less than 4% was in 2000 and at that time, labor force participation rate for white males between the ages of 25 to 54 was higher by two percentage points. that's millions of people you're talking about that you're missing from the labor force. it's hurting the overall economy. you pointed out the problems with drugs. there's probably also problems with alcohol, sense of despair. they just quit too early. maybe the fault lies with how they were educated that they were not educated in a manner that made it easier for them to adapt to technological change.
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connell: let's talk about that. automation is a story, we talk a lot about it but we will be talking a ton more about it the next decade or so. to that point, amazon -- deirdre: this is amazing. they are retraining. connell: a third of their work force at amazon, something like $700 million invested in all of this. but it follows up on the point john's making about the other story. deirdre: it certainly does. i think it also gives a nod to the fact that the technology's changed so quickly that being current is actually a greater challenge now than maybe it was a generation ago and that's part of what amazon is working on. they are going to be spending about $7,000 a head. what i find interesting about amazon's program as well is that some of the jobs they are allowing people to train for may not actually end up staying at amazon. that's not even the goal of the program. they are just trying to help people be current. now, i'm assuming -- connell: yeah. deirdre: they are hoping but for example, nursing, you can train to be a nurse if you work at amazon, for the moment. amazon, even though we heard
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jeff bezos, jamie dimon and warren buffett talk about a potential health care collaboration, we haven't heard too much since that initial announce president, who knows, maybe there are blueprints. connell: i wonder what your view, do you think we can quote unquote, retrain our way out of this issue? i read the book on artificial intelligence. they don't think we can. there will be too many jobs. >> i speak to small business people, what they tell me, it's not just a question of aptitude. it's also a question of attitude. a lot of these people just dwoont don't want to learn new skills. we have to somehow have this change in attitude take place, this embrace of new technologies, of changes, so that they can remain gainfully employed. connell: quick thought on that. that is an interesting point. >> yeah. yeah. i would agree that artificial intelligence specifically, a lot of people, feel like myself as an attorney, will say that's going to automate us out of business. you have to also say what about
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the analysis. you can't just go to automation and say they will be good at someone who is actually looking at all the different factors. i think we have to take that kind of with a grain of salt. deirdre: there is advising, there is true counselor work. connell: real quick. >> this all gets back to the simple fact when we rank the achievement of u.s. students, primary, secondary education, the rest of the world, we are like in 15th place and that is inexcusable given how wealthy this country is. it's not just a matter of money. it's a question of our approach and attitude. connell: larger issue but probably the biggest. thanks, guys. great panel throughout the show. we appreciate it. quick break. back to wrap it up right after this.
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4:00 p.m. eastern time be sure to join us, see if the dow can stay above 27,000. we were up, charles payne, 200 plus. now 150. a round number for what it is worth. over to you. charles: i will get it back, my man. thanks a lot. good afternoon, everyone, i'm charles payne. this is "making money." yes the dow crossing that historic 27,000 mark for the first time today. nasdaq struggling a little bit. they want to make a second straight record close there. coming up why investors should ignore the naysayers. i think you can chase the rally. i will explain it. president trump is about to host conservatives at the white house to call out alleged bias from big tech. fox favorite deneen borelli says facebook censorship destroyed her video career. she refuses to be silent by mark zuckerberg. she will share her story with us. border officials are planning to


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