Skip to main content

tv   Cavuto Coast to Coast  FOX Business  July 7, 2017 12:00pm-2:00pm EDT

12:00 pm
so you're right, i think this is -- could be part -- definitely what's on the table. ashley: all right. we'll get more details on that meeting, we leave now with the market up 87 points, gaining back more than half of yesterday's losses. dave asman in for neil. take it away, david. david: okay. we owe all those wins to you. ashley, great to see you. welcome to "cavuto coast to coast." i'm in for neil cavuto. g20 summit is up and running, and leaders are going to be gathering for a big reception with a bigger bunch of stuff on their plate. over the next two hours, we're going to be diving into the many storylines and questions that urgently need answers. how to reel russia in, how to get syria to surrender chemical weapons, how to keep north korea in check all while anti-capitalist protests are ripping up the city over there. we've got key guests lined up to let you know everything you have to know. but first, the top story, the meeting the whole world is watching, president trump face
12:01 pm
to face with vladimir putin. it's going on right now. the u.s. and russia prepared, apparently, to announce a ceasefire in southwest syria that according to the ap. to former cia analyst tar rah mahler on what we can expect from all of this. tara, first of all, the expectations of the media, obviously, far different from the sort of stuff that we expect because we think outside of the box. going to eat trump's lunch. that's actually a headline in "business insider," that he is not prepared for a meeting, he doesn't have an agenda to which i would say what meeting does the president of the u.s. ever go into without an agenda? aren't folks like you always prepping presidents for that? >> hopefully, there was an agenda going into this, and i'd hope on the agenda syria, hopefully, was top and center, and i think we're hearing that it was. i hope the ukraine was at the top of the agenda and cyber hacking and other cybersecurity concerns related to russia's
12:02 pm
intervention in the election and otherwise were on the agenda. so i think, hopefully, those three points were hit. there's obviously other issues of concern, north korea, a top security matter. that probably made it onto the list. i i think some of the concerns were not that there wasn't an agenda, it's just sometimes he does stray from the script his advisers have put before him. hopefully, he stuck on message, hopefully this was a productive meeting i. remains to be seen what comes out of it. i think there's room to try the improve cooperation where cooperation can be found but also to take a firm line for u.s. strategic interests. and you really do need to take a firm line with regards to putin on the ukraine and with regards to -- david: sure. but, you know, sometimes -- >> those aren't mutually exclusive -- david: i understand, tara, but sometimes perception is not as important as reality. and you think of the way in which donald trump has been portrayed over the past year or so, that he's taking too soft a line on putin, that putin can
12:03 pm
eat his lunch, that putin's smarter than he is. when, in effect, you look at a what he has actually done, what he has done is so different from the perception. going after syria, which is russia's best ally in the middle east, going after him like no president ever has, taking a very different line on iran which has been allied at various times with russia. and, of course, the announcement this week that he's open to selling oil and gas to eastern europe and, of course, that's exactly how russia has sort of held those states in a kind of a blackmail situation with their oil and gas. all of these areas which really get under the skin of putin instead of, instead of sort of making him feel good. >> well, i agree that on syria we've been making progress, we've been making progress on rah a ca. i do think with regards to russia and syria though we haven't really seen the administration take a firm position in terms of pressuring the russians with regards to their dealings with assad -- david: what about the tomahawk
12:04 pm
missile attack? that was a direct shot over the bow or into the bow of russia. >> fully agree, that was a strong measure, and i supported that on at the time. i -- on air at the time. it would be interesting to hear if the use of assad's chemical weapons came up, because russia can play a role in pressuring assad. i think it would be wonderful if those issues were at the forefront of this conversation. a ceasefire, you have to make sure the parties in the ceasefire are going to carry them out. putin and trump can declare a cease fire, but until the parties on the ground are agreeing to that, we have to see. it's too early to say. this is very preliminary reporting, and we don't know the terms. has assad been made a aware of this, and is he going to be cooperative? any sort of agreement on a ceasefire is a good thing, so i'm going to praise that preliminarily, but we don't really know the terms yet. ceasefires are good in theory, but a lot of times you don't necessarily see them pan out on
12:05 pm
the ground. david: and also what russia says is good in theory, but in it's very often quite different, isn't it? >> true. the rhetoric that may or may not happen in these bilateral discussions not just with president trump and putin, but with other leaders as well. what really matter is the the follow through, it isn't the rhetoric that putin spews about being cooperative against isis because the reality is we haven't seen isis be the primary focus of putin in syria. we've seen him go after others and a lot of the support leaning towards the assad regime. so actions speak louder than words, and that's what i'm curious to see, what changes on the ground. david: tara, one last question. it's about security of the meeting itself, because there are only to six people in that room, two interpreters, putin and trump and lavrov and tillerson. six people. if there's any leak coming from that meeting, where do you think it would come from? >> that's a million dollar question, but it could come from any of those parties in there
12:06 pm
both intentionally or unintentionally, and it could come from somebody without claiming that it came fromç th. so it remains to be seen if there's an official readout of the meeting, president trump and tillerson might put out an official readout which is not going to give us the tone, the body language, the precise wording. but, i mean, putin might leak out information, and we don't really necessarily know the veracity of that information. i'll be curious to see if there is an official readout or each transcript. i'm not sure if there was a stenographer or anyone recording this meeting in any way. david: thank you very much for being here. well, many on the left talking more about russia meddling than fixes to issues like north korea and syria. to washington free beacon contributor editor daniel halper. first of all, with regard to syria, news of a ceasefire at least in the southwest of the country, what do you think? >> yeah, look, we have to see the details, as tara said, but it could be significant,
12:07 pm
obviously. this is something that the obama administration really wanted badly. john kerry met any number of times with his counterpart in russia trying to get a ceasefire, and trump comes in, his first meeting with putin appears to be productive. i think that is something that both sides, the trump and the putin side, wanted to show perhaps as a diss to obama and a way to show that there's a new relationship between the u.s. and russia and that each side is going to use each oh to help -- each other to help achieve their own national interests. david: the most immediate danger to the united states and the whole world right now, i think, is north korea. eventually it might be iran or something else, but right now north korea's so erratic, has so many dangerous weapons to toy around with, that's the biggest problem. russia came out with a weird comment. i thought it was -- it was intentionally provocative, suggesting that the united states was just as much to blame for tensions in the korean peninsula as north korea was. i mean, that -- the moral
12:08 pm
equivalency, putting the u.s. and north korea together is morally equivalent, really kind of an evil way of looking at it, don't you think? >> yeah, it's ridiculous, obviously. and you're right, north korea will be -- if everything goes badly, if it goes wrong, it will be the trump foreign policy legacy. hopefully, it's not. hopefully it's sort of a side issue or even resolved and it goes well, and it's the legacy in that regard. but it's very, very dangerous, what north korea's doing. and hopefully, president trump has a plan to deal with north korea and, hopefully, you know, he's talking about it now with russia and trying to pressure them to help deal and unarm north korea. david: well, i hope he mentions somehow the fact that there's zero moral equivalency between us and the north koreans. finally, i just want to ask about the perception, because as i was telling tara, very often it's not as important as reality. trump very often begins a relationship with excessive praise and then hammers down on
12:09 pm
whoever it is he's talking to, whether it's an ally or an adversary. my feeling is it was the same with putin; that is, before he met putin he was setting him up with all this praise kind of for putin the to let his guard down. what do you think about that? >> yeah. i think there is an element of president trump that just wants to be loved by whoever he's talking to, whether he's holding a big rally or having a one-on-one meeting. he tends to flatter the person and try to have that person really like him and, therefore, be able to assert his will over that that person. obviously, these are two personality, two big personalities and a couple in the translation, which i think is significant in a certain way, you know, things do get lost in translation. it does slow down the meeting because you have to wait for everything to be, basically, repeated. david: sure. >> i think this is just the beginning, obviously. this is their first meeting. there's a lot of attention due to the meddling and to other issues, but i think we'll just have the see how this
12:10 pm
relationship actually develops over time, and it could realign the united states' foreign policy. david: what i love is that nobody's doing this kind of smiley stuff that they did either with the hillary clinton meetings with lavrov or the meetings that president obama had with putin -- >> yeah. i didn't see any reset button. david david yeah, they're getting straight to the point. i kind of like that. daniel, thank you. appreciate it. >> thank you, david. david: protests turning quite violent. is capitalism the thing they should be embracing? to harold group vice president sabrina schafer and -- [inaudible] senior political correspondent aaron delmore, sabrina, these writers have a lot of time on their hands, don't they? [laughter] i wouldn't be at all surprise if they are the perfect example of the welfare state; that is, able-bodied young people that could very easily be working, very easily be at their jobs right now. instead, they're getting enough
12:11 pm
welfare so they can be out in the streets. >> and enough apparently the charter their own train to germany. david, i think you're right. these people should not be fighting capitalism, they should not be, you know, pitting this idea of wealthy countries against poor countries. the fact is they have legitimate grievances. they're concerned about human rights, they're concerned about climate change, they're concerned about economic growth. societies. that generates wealth and opportunity, and it allows the luxury to think about all of those other challenges that face our different countries. so they should not be sort of pitting themselves against the g20, they should be, you know, figuring out how we could all work together to lift up some of the poorer nations around the globe. david: erin, you know, angela merkel, the head of germany, she chose hamburg knowing full well that it is kind of the epicenter of these radical groups in that part of europe. it's located right between amsterdam and copenhagen, it's on the north side of germany.
12:12 pm
there are a lot of liberal if not radical groups that are based there. do you think she did it as a sort of in-your-face thing for trump? >> angela merkel took a risk by choosing hamburg as the city here, and whether she did it to rankle trump or as a strategic move remains to be seen. now, like you said, this city has a population that is leftist. it has a radical history. and merkle isn't without risk. she's facing re-election in september. she's looking to solidify her status as the primary leader in europe. and she's saying here protests, even if they are massive and violent, can be a sign of a healthy democracy. that's what makes hamburg a tough place to host. david: it does. we should mention, by the way, sabrina, she was originally from hamburg, and for some reason her father brought her over to the east part of germany back in the days of the soviet union which wasn't a very pleasant place to grow up. but again, the question of whether she's sort of positioning herself as the leader of europe, how muchen
12:13 pm
influence donald trump would have in that kind of situation, i just think of the fact that when he was pushing them to pony up more money for nato, all of the merkle acolytes were snickering and saying it'll never be done? well, guess what? it was done. so he got more progress done there than angela merkel did. >> right. i mean, i don't think it really does angela merkel any good to have these protests though. obviously, there is tension right now between germany and the united states as well as other allies in western europe. but i don't think anyone wants to take the attention away from what should be constructive conversations between these different nations. so i wouldn't think she necessarily set in this up, but i do think she has an opportunity here, as do trump and other leaders who are attending, to sort of point out the contradictions in that we all have the same goals in mind. we all want to see women have equal rights, and we all want to make sure that refugees who truly do need to find new homes find themselves in safe environments. these are things that we all
12:14 pm
want. the question is how do we best get there -- david: be careful of that word "all," because the folks on the streets of hamburg certainly don't want that. they want something that looks more like venezuela right now. >> well, that's true. and it's hard to take some of them too seriously. there is something to be said for dressing for success, and when you have more piercings than i have teeth -- [laughter] i find it hard to pay attention. david: okay. earp, i owe you one -- erin, i owe you one, thank you very much for being here. appreciate it. much more on fallout at g20 and how it impacts your wallet. but next, senator mitch mccanal plan b's -- mcconnell's plan b on health care. and are jobs back? we are going to break down the better-than-expected jobs report right after this.
12:15 pm
liberty mutual stood with me when this guy got a flat tire in the middle of the night. hold on dad... liberty did what? yeah, liberty mutual 24-hour roadside assistance helped him to fix his flat so he could get home safely. my dad says our insurance doesn't have that. don't worry - i know what a lug wrench is, dad. is this a lug wrench? maybe? you can leave worry behind when liberty stands with you™. liberty stands with you™. liberty mutual insurance.
12:16 pm
12:17 pm
12:18 pm
won't replace the full value of your totaled new car. the guy says you picked the wrong insurance plan. no, i picked the wrong insurance company. with liberty mutual new car replacement™, you won't have to worry about replacing your car because you'll get the full value back including depreciation. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™. liberty mutual insurance. david: well, the dow just hitting session highs after the june jobs report crushed the estimates, 220,000 jobs added
12:19 pm
compared to the 179,000 jobs expected. average hourly earnings up 2.5% from a year ago, to fbn's adam shapiro with not-so-positive news on the health care front. we should mention, by the way, there were revisions of the previous couple of months that were also good, right? >> reporter: yeah. the revisions for april and may, it was a gain i believe upwards of 47,000. let's talk about health care. want to talk about what's going on with mitch mcconnell and the impact with the slowdown in bringing the better care reconciliation act to the forefront and introduction to the senate for a vote, because he doesn't have the support. remember when they went on recess, david, they were only five senators who were saying they were opposed, but that was more than enough to kill the thing. then you got ted cruz with a possible amendment which has not been attached to the bill yet. now you have mitch mcconnell who just yesterday in rural kentucky said, quote: if my side
12:20 pm
is unable to agree on an adequate replacement, then some kind of action with regard to the private health insurance market must occur. now, that was interpreted to mean -- and he actually talked about possibly working with the democrats. and then you got a statement from senator schumer. because remember, the democrats have said they won't go anywhere near any of this. they won't help, they won't negotiate, nothing as long as they're talking about repealing obamacare. but schumer said yesterday it's encouraging that senator mcconnell acknowledged that the issues with the exchanges are fixable. then he goes on to say: at the top of the list should be insuring cost-sharing payments are permanent which will protect health care for millions. schumer responding to the open door that maybe they can make a deal, and nowhere in his statement, by the way, does it say anything about if this is on the table, we're not coming to to the table. so believe it or not, you might see people working together in washington. don't hold your breath. [laughter] but, you know, the republicans don't like the idea that mcconnell's backing away from
12:21 pm
his own bill. david: right. >> reporter: democrats, they're going to be weary because it's eventually going to have to be a replacement the republicans say of obamacare. so next week's going to be a hot one. david: well, you know what will bring schumer in, adam? you know this better than anybody, the fact that all the attention right now is on the president's trip abroad. he gets so jealous of somebody hogging the camera, that thatgsç going to -- whatever he can do to bring the camera in to cover himself, he will do. >> reporter: well, i'm not going to criticize senator schumer because i have to work with his staff -- [laughter] i will say this, david, they all acknowledge that something has to be to done about the premiums, because they're going up. that's the window that they can go through together. the rest of it they can figure out later. david: this' one thing both republicans -- that's one thing both republicans and democrats agree on. well, health care and tax reform delays are sparking fears about the economy stalling. charlie gasparino, senior correspondent for everything, nan hayworth, former republican
12:22 pm
congresswoman from new york, and dan schafer of schafer asset management. charlie, what do you make of the jobs? it is looking in the rearview mirror, but that doesn't show signs of slowdown yet. >> yeah. i think it's a good one, and here's the thing, you can't say this is complete affirmation of donald trump and his economic plans. but look at it this way, we're in the eighth year or doing on the eighth year of an economic expansion -- david: albeit starting from ground zero after the recession. >> right. but things should be slowing by historical standards, and they're not slowing. and you have to -- if you talk to business executives and the liberals on twitter will go nuts when i say this, because they were already going nuts -- david: but you love it when that happens. >> i love it. here's the bottom line, when you talk to business executives they say, okay, even if we don't get tax cuts, at least we have an administration that's not trying to kill us every day. thus, we see our bottom line getting better. you combine that bit of optimism with better corporation or decent corporate earnings, you
12:23 pm
know, it's a less negative -- even if you don't get tax cuts, it's a less negative scenario for the stock market. david: so, dan, at least we don't have hillary clinton or barack obama adding a new regulation every day. but you do see a slowdown coming, don't you? >> absolutely. i think the stock market's way ahead of itself. if you look at the cost to of shipping goods overseas, that index is way down. it's not even jumped. you look at the cost of raw materials, finally we're getting the grains to move. you look at the soft commodities, raw materials -- david: is there nothing we can do to turn that around? >> no, this is a natural cycle. i've been waiting about 18 months to the get to july. the bond market is signaling to us that some of these commodities may have bottomed and that inflation may be coming, and the stock market hates inflation. if they get a whiff of that -- david: how is the bond market signaling inflation? >> bond prices are going up. >> bond prices are dropping in the last three weeks. the yield on the ten-year -- david: okay. let's not get too in the weeds, nan, because what i want to
12:24 pm
focus on is what happens if we do get tax cuts? >> right. david: is it possible -- assuming for a moment that dan is right and all these negative indicators indicate some kind of slowdown, if we get a big tax cut, won't that turn things around? >> absolutely. i think we've got, basically, the equivalent of two tectonic plates of the economy, if you will. there's a pent-up desire for growth, that's what americans were built to do, do things better, do things more, do things in a modern way and grow the economy. but by the same token, dan is reflecting, basically, the fact that we have had eight years of terrible policy that have put americans out of jobs, that have deprived americans of income, of savings. so we have got to have an event that breaks that tectonic lock. and i think tax reform could do it. david: charlie, we have kind of a hangover of that that even republicans have taken on, the idea that government can solve all problems. one of those things is a minimum wage. you even have republicans that are pushing minimum wage.
12:25 pm
>> right. david: we should mention in this jobs number between 20 and 24 years old, we saw a loss of 185,000 jobs. that's the people -- these are the people that are hurt most when a minimum wage goes up and the employers say, hey, i've got to fire somebody. >> absolutely. we had a tremendousing rally in bonds over the last sort of three, four months. a tremendous rally where the yield on the ten-year started getting close to 2%, correct? >> absolutely. but it had been lower before. >> so that's a tremendous rally this bonds. the last three weeks -- david: which means for you what? >> it means bond prices go up, yields go down which means that people are worried about not necessarily inflation, but they're worried about a stock market crash or the markets being overbought. david: but i sense you're kind of in between dan and nan, that if we get tax cuts -- [inaudible conversations] >> i don't think that the bond market is signaling deflation
12:26 pm
right now as it sells off. >> no, no, it's inflation. let me explain. let's go back to the gop agenda for a second. if they cut taxes with the amount of debt that the united states has, that's going to slow down the economy. if they cut taxes -- >> whoa, wait a minute -- david: dan, hold on a second. 1980s, something completely different happened when we cut taxes. >> hold on -- david: we had a tremendous increase in growth. >> but we didn't have the deficits we have today. >> ooh, dan -- >> the government then spends less. isn't part of trump's agenda less government? >> -- >> government is a partç of gdp factor. if the government slows down spending -- [inaudible conversations] >> the bond market selling off right now, people believing that the trump tax cuts -- >> right. they're discounting for that. >> and that -- david: nan, go ahead. >> i disagree with that. >> i asked this question of tim geithner when testifies treasury
12:27 pm
secretary -- when he was treasury secretary. we have 50 states that are laboratories for economic growth or not. and i asked him to name one state with high taxes and heavy regulations that was doing better than states that had lower taxes and less regulation, and he could not come up with a state. >> well, hold on -- [inaudible conversations] david: -- come from more economic activity because of lower tax rates. we very often fix a lot of the problems that come with high deficits. >> absolutely. but, but lowering taxes lowers the money that the government has to spend -- david: not necessarily. if there's more economic activity, the government gets more revenue. >> look at illinois, look at connecticut. i live in connecticut. their budget is way out of whack -- >> they're high-tech states. >> yes! because a they keep taxing -- >> but the low tax now -- >> people are leaving. >> we've never had this -- >> dan, dan, there's no way -- let's be real clear, you cannot pay down the debt in any way unless you get economic growth -- >> right. >> -- approaching 3%.
12:28 pm
now, if you ask me how do you get 3% growth? some liberals would say let's build a lot of infrastructure, go into debt that way. i would say tax cuts are the most efficient because you do incur -- david: nan, you make a great point which is that the states are little petri dishes. and people vote with their feet. they're leaving connecticut, they're leaving illinois -- i think illinois has the largest number of people leaving the state. and where are they going? they're going to florida. florida gets 300,000 new residents a year. >> absolutely. because it is a fallacy, it is a dreadful fallacy, and i know it firsthand, to think that somehow government is as efficient as enterprise. it is not. david: okay. we're going to leave it at that. meanwhile, we've got a live shot -- do we have that, that we can put up? yes, we do. donald trump, i believe -- oh, no. they're still meeting with -- donald trump and putin are still meeting. in the meantime, there is stuff going on around, but everybody's focused on the trump/putin
12:29 pm
meeting, wondering what they're saying. we're getting certain information from inside the room. we don't know exactly how this is coming to us. i don't know if i'd use the word cute, charlie. [laughter] unless you're talking about the translators. >> honored and delighted to be -- david: more from the g20 coming right up. and biometrics. in 574 branches. all done by... yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformation. a data fueled, security driven shift in applications and customer experience. which is why comcast business delivers consistent network performance and speed across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver.
12:30 pm
12:31 pm
12:32 pm
12:33 pm
david: well, it's over. we are hearing that the meeting between trump and putin is over. it lasted, actually, two and a half hours. it wasn't supposed to take that long. they had a lot to talk about. a good first face to face meeting if you believe the length of the meeting indicates goodness. right now leaders are gathering for a reception at a concert hall in hamburg. president trump is expected to attend. colorado republican congressman mike coffin joining us now. i guess it's a good sign it went off for two and a half hours, don't you think? >> i think that's a very good
12:34 pm
sign. david: well, what exactly do you think is the main agenda? some people say it's syria, some people say it's the relation between the u.s. and russia itself, north korea, what's most important to you? >> certainly, all of the above. there's no question we need russian cooperation in north korea, i mean, to stop them from moving forward with their nuclear program. russia sits on the u.n. security council, and they've, they've not -- they're not supportive at this point in time. david: no, not at all. in fact, they came out with this awful information this week saying that the united states is just as responsible for tension in the region as north korea is, which is ridiculous. >> yeah. no, that's ridiculous. we need their cooperation. they've not been cooperating in syria in terms of deconflicting of our air authorities against isis, and so we need their cooperation there. their cooperation certainly in fighting isis and dealing with the assad regime. and lastly, we certainly need a
12:35 pm
pledge for them not to do any state-sponsored meddling in our elections again. david: right, right. let me switch to china, if i can, because they also play a critical role with regard to north korea, much more than russia does, and we had the tweet from the president which caught me off guard. it turned out the president's tweet figures were on, trade has increased by 40%. the actual number is 37.4, so it's pretty close to 40%. why do you think that is? >> well, china is a lifeline to north korea. we, i mean, certainly all options have to be on the table to include a military option, but even on a conventional level that would be horrific. what we need is the cooperation of china to put pressure on north korea to give up their nuclear weapons program -- david: but they're not doing that. an increase of 40%. i look at some of the weapons displays they have certainly
12:36 pm
when they exploded the missile, you could see that it was a mobile missile launcher. they don't make those things in north korea. where does all this stuff come from? >> oh, we -- you trace it back to china. and so the fact is that we have to put sanctions on north korea that impact china, sanctions on china as well in terms of their trade relationship dealing with north korea because china really has all the cards in this in terms of getting north korea to stop its program. and so that, i think the president's right in saying that china's not cooperating, and we're going to have to be tough on china. david: o.k. of course, a -- of course, a lot of people wonder who's going to buy the debt if not china if we begin putting on the screws. representative, thank you very much for coming in. mike coffman, representative republican from colorado. much more on the fallout from the g20 meeting tomorrow on fox news. i'm going to be hosting a special cost to freedom, it all begins at 10 a.m. eastern time,
12:37 pm
carries through the noon eastern time. that's just when a lot of the biggest action's going to be happening. that's on fox news channel. coming up, more fallout from the trump-putin meeting. the former defense official with the one thing we can do to get a handle on russia. he'll tell you what that is right after this.
12:38 pm
12:39 pm
12:40 pm
12:41 pm
david: business from the auto factories, tesla's model 3 is rolling off the assembly lined today, making the start of productions for the 35,000 mid-sized car. it's an electric car, of course. the stock recovering a little today after plunging about 15% the previous three days. and oil is falling again. around 2.5% today, leaving it down nearly 4% for the week. meanwhile, did president trump just quote a fix to the russia problem? take a listen. >> we are sitting on massive energy, and is we are now exporters of n.
12:42 pm
so whenever you need energy, just give us a call. the united states will never use energy to coerce your nations, and we cannot allow others to do so. you don't want to have a monopoly or a monopolistic situation. the united states is firmly committed to open, fair and competitive markets for global energy trade. david: so can we remove russia's energy hold over european countries by opening the floodgates right here? former deputy assistant defense secretary under bush 43, peter brooks, says that would end russian blackmail. well, it's a win-win for the united states, peter. first of all, it'd be a tremendous boon for particularly those frakers who were kind of worried about the price of oil going down, this would give them a second life. and then, of course, it would pull out russia's hold over most of europe, particularly eastern europe. >> that's right. well, of course, it'd be good for the u.s. economy, u.s. jobs. we're actually starting to
12:43 pm
export liquefied natural gas, lng, to europe. lithuania recently openedded a station to allow our ships to come over and deliver that. so there is some diversification going on there. also russia, the russian economy is heavily feint on hydro-- dependent on hydrocarbon exports. it sends 60-70% of its natural gas to europe which creates 40% of the russian federal budget. so. if you're worried about harassing nato planes and ships, what they're doing in syria, their, you know, violation of the intermediate nuclear force's missile treaty, cyber, etc., etc., this is a point of leverage for us if we're able to get europe to diversify their energy imports. david: it sure is. and i don't think it was accidental, peter, that the president's first stop was in poland, in eastern europe used to be held by the soviet union, partly held in check by the hold that they have in energy over some of these eastern european nations, and that's where he
12:44 pm
gave his energy speech. he knew what he was doing. >> yeah, absolutely. and i think he made a point there about saying they should not be held hostage to people who would be coercive with the use of energy, and russia has done that. remember, david, in the past they've shut off energy the ukraine, that's a major transit point. after the end of the cold war, russian energy -- remember, rub, shah is -- rush a shah is the world's largest producer of oil and second largest producer of natural gas. the russian energy replaced the red army as its major instrument of power in europe. david: well, how does russia respond to this? they're not going to give up their market share easily, are they? >> no, certainly not. it's so important to them. like i said, think 43% of the russian federal budget comes from that, and they're already hurting by low oil prices, sanctions that have been put on them over ukraine -- david: so let me just set something up here. could it be that a what donald trump was doing in that
12:45 pm
announcement, clearly a well-planned announcement. some of it he read, some of it he talked off the cuff. but it was clearly planned out. could that have been a shot across the bow of putin for this discussion they just ended, this two-and-a-half hour discussion in which he could say, look, you want to hold onto that market share, you better play ball? >> yeah, it certainly could have been. there's a lot of things behind it, as we know, the american economy, helping europe diversify its energy imports, transatlantic ties, you know, critically important and, of course, russia's all of its adventurism around the world that we're concerned about with its cyber and spying operations. david: and when they're making statements painting a moral equivalency of the united states with north korea, this could do a lot to kind of end that sort of talk that does nobody any good. >> i hope so. i hope so. i hope out of this meeting, you know, once again which went a pretty long time, i mean, considering. of course, about half of it is going to be in translation, but still it was supposed to be only a half an hour total. perhaps the russians will come
12:46 pm
around and help us where they can on issues such as north korea where they don't have as much influence as china, but they are a major power and a major player at the u.n. syria, ukraine, there's so many issues out there, and it's a point of leverage for us in this respect. david: energy and money, it seems they are always connected somehow with power. peter brooks, thank you very much. >> thank you, david can. david: next, stunning details about threats coming from within our own government. some people would say the deep state. ♪ ♪ ♪
12:47 pm
12:48 pm
[vo] progress is seizing the moment. your summer moment awaits you now that the summer of audi sales event is here. audi will cover your first month's lease payment on select models during the summer of audi sales event.
12:49 pm
won't replace the full value of your totaled new car. the guy says you picked the wrong insurance plan. no, i picked the wrong insurance company. with liberty mutual new car replacement™, you won't have to worry about replacing your car because you'll get the full value back including depreciation. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™. liberty mutual insurance.
12:50 pm
david: as the world is focusing on the meeting with russia, new details on leaks about russia. a new senate report revealing the trump administration is hit with at least one leak a day that is potentially damaging to national security. former cia analyst fred flights. fred, i want to bring both stories together, meeting that trump and putin justed had. do you think there'll be any leaks coming out of that? >> well, you know, i think that's less likely because the president allowed almost no one to attend. even the national security adviser was not invited to attend. there was no one from the state
12:51 pm
department except for secretary tillerson, that's how concernedded this president is about leaks. david: well, and that is exactly how they are trying to tighten up the situation. i mean, it was just a terrible problem. even president obama was having some sympathy for the leaks inside the trump administration. and the way they deal with it, it seems to me, is they've been tightening the circles. fewer and fewer people have access to sensitive information. >> you know, that's exactly true. you know, sources and methods are our intelligence community's most sensitive secrets because without them, we would have no secrets. and when they're compromised, lives can be lost, the bad guys know our capabilities. but, you know, concerning president obama, this is something that i think has to be done. the republicans have to say to the former president tell your former staff to stop leaking. i think obama's aides know who these leakers are. david: yeah. >> i think they're organizing the leakers, and the president has to send a message this is to stop, because this is becoming his legacy. david: can't you just get rid of
12:52 pm
those people? all the people that are hired, i know sometimes this is a trick that some administrations play, they bring people on as political appointees or helpers of political appointees, and then they become lifelong bureaucrats. is that what's happened here? >> a lot of the leaks are taking place from former obama officials. and guess what? a lot of them kept their clearances. all those clearances should be pulled. there also are a lot of careerists who the obama administration put in senior jobs. now, since there are very few trump people in place, these people are running the government. mr. trump has to staff the government, and there has to be a major house cleaning at state, cia, the defense department and the office of the direct every of national intelligence. david: we've got some breaking news on the meeting that just ended. russian president putin says the discussion included syria, ukraine, fight against terror and cybersecurity. now, again, this is directly from putin. as you said, fred, there were
12:53 pm
only six people in that meeting; two translators, two presidents and two foreign secretaries or secretaries of state. so what do you think of that? syria, ukraine, the fight against terror and cybersecurity. nothing there about north korea. >> i hope north korea was discussed. i'm sure that mr. trump raised it. the issue here is that these two men have to find a way to work together. we're going to have to hold russia accountable, we're going to have to be tough on it where it's doing things that are against our interest or violating international law. but i think we have to find a way to cooperate. i believe this meeting is the beginning of trying to put together such a relationship. david: you know, david -- [inaudible] who's a very thoughtful guy wrote an op-ed piece in "the wall street journal" yesterday in which he said, you know, there's a lot of these tweets i don't want agree with, but i'd rather have somebody who has a bad tone and does the right thing in action than the other way around. very often president obama had a great tone, but he didn't get that much done that helped the united states. what do you think of his theory? >> it was right.
12:54 pm
and he was also talking about how for the last eight years people on right have been not involved in the cultural war. they haven't been standing up to the damage that mr. obama was doing in the foreign policy realm and in the national security realm. and i think donald trump is really an answer to all of that. david: and i'm wondering if rex tillerson is an answer to part of the problems of the state department. the state department has been a bug in the bonnet of conservatives for decades, the fact that they have kind of their own ethos, their own way of doing things that doesn't necessarily benefit the people of the united states as much as their buddies abroad. do you think somebody like tillerson, a smart guy who's been around the world a dozen times or several dozen times is the man to change that ethos? >> my understanding is that tillerson is just appalled at the waste and abuse in the state department -- david: absolutely. >> -- the duplication of bureaucracy. i tried to tackle that when i was chief of staff to undersecretary of state john bolton.
12:55 pm
we got rid of one bureau, and it took almost 18 months to do. [laughter] charges were lodged against us. it was awful. that's just a tiny piece of the disaster at the state department that has to be fixed. david: well, it's the swamp, i mean, let's face it. >> that's right. david: do you think trump's going to have any progress? tillerson is one guy but, apparently, has a great support staff working with him too. >> well, i think that the state department is woefully understaffed with trump people. when you bring in an assistant secretary for a bureau of several hundred people, that assistant secretary will fill in dozens of positions under him or her. that's how you clean the swamp. those people will move people around who may not be supporting the president or might be leaking. until that happens, i think these leaks are going to continue. david: by the way, if you just cut the wine allowance 50% -- [laughter] i think you would save hundreds of millions of dollars for the state department. fred, great to see you. thank you very much for being with us. we are awaiting president trump's arrival at the g20 summit reception just as we're
12:56 pm
hearing russia and the u.s. did agree on a syrian ceasefire, partial syrian ceasefire. as everything with the middle east, it's clouded in suspicion. we'll bring you the latest on that and a lot more right after this. ♪ ♪
12:57 pm
12:58 pm
12:59 pm
david: news is coming up fast and furious out of the g20 summit, the meeting took two and a half hours, a lot longer than expected. we're awaiting president trump's
1:00 pm
arrival at the g20 reception. blake burman is live in hamburg, germany, where i understand at one point you kind of had to -- were locked out of your hotel because they were worried about some of these rioters, right? >> reporter: locked in it. right now we're actually on the second floor of the press filing center here because of protesters, david, coming up and down the street. which we saw yesterday, but things escalated a bit once object toes were starting to get thrown at the windows, several windows had been shattered, and that was kind of our tipping point where we said it's probably ad good idea to bring the camera inside, and that's where we've been along with other media outlets when made the same decision that as these protesters came down the streets, bring things indoors. it has most certainly been heated here, to say the least, at the start of the g20 summit. you mentioned at least on the news front that the meeting between president trump and vladimir putin has ended. it was scheduled to last 30 minutes. instead, it went about 13w --
1:01 pm
130 minutes, north of two hours. in that meeting was just the president, the russian president, rex tillerson, sergey lavrov, their two translators, that was it. we are currently awaiting a briefing from senior administration officials on the united states side to see what exactly was discussed and kind of the line that the u.s. is putting out after this meeting. already though the news agency interfax is quoting, or at least citing vladimir putin himself saying that among the topics of discussion were russia, ukraine, the fight against terrorism in general and cybersecurity. what exactly cybersecurity means and whether or not that was russian meddling in the 2016 elections, we shall see. take a listen here to president trump as he sat alongside vladimir putin at the very beginning of this meeting, now at in this point nearly three hours ago. listen. >> president putin and i have been discussing various things. i think it's gone very well, we've had some very, very good talks. we're going to have a talk now and, obviously, that will
1:02 pm
continue. but we look forward to a lot of very positive things happening for russia, for the united states and for everybody concerned. >> reporter: now, david, as this meeting was wrapping up, as those leaders were still in the room, a report from the associated press came out that said that the united states and syria -- the united states and russia, rather, have agreed to a ceasefire in the southwestern portion of syria that would start over the weekend. i point out that the report came out as the president and the russian president were in the room, because we now await -- david: blake, i'm sorry to stop you in mid sentence there -- [inaudible] the president of the united states as he arrives at this concert hall. there is going to be a concert there, but main reason they're all there so to get together for one of these obligatory photo shoots that they have. they're all going to get together as we see the president's security detail kind of hovering around, waiting for
1:03 pm
the okay to open the door. those vehicles, by the way, are brought in by another 747 besides the air force one that comes right before air force one, loaded to the hilt with all kinds of security details, all kinds of -- but this is really the pride and joy of that collection of goods. and there comes the president of the united states out of his secure car for this meeting. two-and-a-half hour meeting, as blake was just telling us, it was only supposed to last 30 minutes. among the topics of discussion were syria, cybersecurity which, of course, probably has something to do with russian meddling in our election last time. there is melania as well, so the president and the first lady there at the meeting in hamburg. it's pretty quiet there, of course, but the protesters and the rioters not too far away. our own blake burman was locked in his hotel because of security concerns about protesters getting inside the hoe the tell. the hotel.
1:04 pm
but, again, syria -- not mentioned among the topics of discussion with vladimir putin and the president, north korea. and as you may have heard, north korea was the subject of some information or maybe some disinformation from the russians earlier in the week, suggesting that the u.s. was just as much a cause of tension in the korean peninsula as north korea was. not exactly helping to calm any of that tension in the korean peninsula. but we will hear more, no doubt, as the day goes on about exactly what happened in there. so far we've just heard from the putin camp. we'll be hearing from the trump camp shortly. meanwhile, reaction from ohio republican congressman mike turner. good to see you, congressman. so, you know, i think of what is going on inside of the mind of vladimir putin. if he ever thought that trump was going to be easy, he probably has a different thought coming now, don't you think? >> absolutely. you know, when you described
1:05 pm
that room with president trump and secretary tillerson and lavrov and putin, you know, i think one thing we can get from that is we have a really strong team sitting across the table. regardless of the efforts to try to delegitimize the trump administration through allegations of collusion with the russians in the campaign, we really have a team that can stand in front of them and represent the united states well and challenge russia on their aggressiveness. most of the issues that they had to talk about was that bucket of aggressiveness that russia has now undertaken in syria, ukraine and even as you just described, you know, the accusations or the statements that were made that are not helpful with respect to north korea. david: and it's also style. i know style is only part of the thing, but people are talking about what, the style between reagan and his russian counterpart or soviet counterpart back in the '80s, how important those style, those settings really were for back then. but it's really a matter of substance when you think of what
1:06 pm
president trump has done with regard to certain issues involving russia. we're looking at live pictures, by the way, of jared kushner and his wife, ivanka trump. trump going up the stairs there, or ivanka kushner, i should say. they are going along with the president and melania trump for this meeting. but again, you think of the squeeze that donald trump has put on syria. you think of the squeeze that he's put on iran which historically has been somewhat of an ally of russia. you think of helping out our eastern european partners with our oil and gas, snag he mentioned in poland as a kind of full-scale policy. these are all things that hurt putin that i don't think putin really expected to happen. >> i agree. and if you remember the news reports coming out of previous obama-putin meetings, they'd come out with obama gave him a death stare, but nothing would happen with u.s. policy. what we have here is, you know, engagement between the two, but actual actions.
1:07 pm
trump taking action in syria, trump engaging in ukraine, really taking on the issues where russia has been forcing a vacuum of u.s. leadership. instead we're standing strong ask we're inserting -- and we're inserting the u.s. has interesteds, and we're going to stand for them. david: finally, there is the perception of the media and perhaps the establishment inside the beltway about how putin is going to eat trump's lunch at this visit. that literally was the headline in a "business insider" piece that suggested he was unprepared for the meeting, that he had no specific agenda. a two-and-a-half hour meeting with putin, particularly in light of everything that trump has done against putin in the past six months, indicates otherwise, doesn't it? >> absolutely. and secretary of state tillerson is a, you know, consummate professional. i'm certain that he came completely prepared and made certain that donald trump was completely prepared.
1:08 pm
but more importantly, i think it's the fact that the u.s. team would have sat across from them with an actual agenda. the only way that russia wins is when u.s. walks away and leaves a vacuum and gives them the ability to do meddling and to do aggressiveness. as long as the united states is filling that vacuum, strengthening our allies, indicating that we're going to stand strong -- which donald trump is doing in rebuilding our military and working with our allies -- russia certainly becomed diminished. david: and you're right about tillerson, he doesn't take gruff from anybody. one of this happy talk, just serious, straight-on on stuff. mike turner from ohio, great to see you, congressman. meanwhile, anti-capitalist protests erupting in hamburg for a second day as venezuela is learning the hard way the dangers of going too far left. liz macdonald and charlie gasparino joining us. liz, you and i know venezuela. we've got friends there, we've been there. this was supposed thely the
1:09 pm
model -- supposedly the model for these people out on the streets in hamburg. don't they see their model is falling apart? >> no. we haven't heard anything from bernie sanders, danny glover, oliver stone, sean penn, just silence. and, you know, the people of venezuela continue to say to people in the united states this message is not getting through. when chavez took power -- before he took power, there was a two-party system, he got rid of it. so they said, well, here comes the government. we see it on the back lawn, well, okay. we see it on the back doorstep, okay. it came in the door -- david: the government came -- >> the government came in the door and just took, took their private income, their welfare, small businesses. now the middle class and the small business entrepreneurs are left in the black market dealing out of their houses in black market toilet paper, paper towels, and they want to dispel
1:10 pm
once and for all it was the oil price collapse that did this. no, it was socialism. if it was oil price collapses, texas would be in dire straits and so would canada. so the fact that these protesters -- i don't know what they're protesting, by way. they seem mindless. a lot of them are environmentalists, and they're destroying property. the fact that we've got venezuela now, people have lost on average 15 pounds and now 91 people have been killed, thousands injured, thousands detained. possibly -- also now in the news is he's detained 123 soldiers -- david: okay. we are looking right now, by the withdraw, at the leaders of the g20. there you see donald trump, of course, on the right side of your screen. they're all getting together for that photo shoot. we'll keep that up as i move to charlie because, charlie, as we begin to see the destruction that's taking place in venezuela and everybody else that's tried the social experiment, the democratic party in the united states is moving even further to
1:11 pm
the left. they're moving towards, closer to the bernie sanders model, closer to liz warren. when are they going to wise up and realize that the middle is the only place they're going to get any elections? >> that's a good question. mark penn penned a column in "the new york times" with andy stein, former new york city council leader -- david: moderate democrat. >> both moderate democrats about how the movement to the left has hurt the democratic party. listen, here's the problem that the democratic party always had -- david: by the way, let me just stop you for one second. you see the back of melanne a ya there and angela merkel with the pink coat on, i guess it's a pantsuit there, and then the president is -- on the right side of the screen. go ahead. >> donald spent two and a half hours with the russians -- david: isn't that amazing? >> you know, he just loves talking to russians. [laughter] sorry, i couldn't help myself. we're going to get a lot of nasty tweets on that one. david: you're used to it. >> by the way, there's a lot of reasons why we should have
1:12 pm
relations with russia, including terrorism. i'm being a smart ass, obviously. the democratic party has been playing the demographic card for a long time, okay? it's been basically putting together a coalition of minorities, women and also sort of very progressive whites, and that coalition left out white working class who were patriots. and it bit them in the rear end this time. david: and it also left out the fact what's happening around the world with these social experiments is leading to changes not only here electorally, but also in europe. that's why the far left is losing also in europe. >> they thought the defining economic system of that coalition was progressivism, and they didn't care that by focusing so much on demographics they were leaving out a demographic that if they appeal to them in the sort of minute way, they would have won the last election. >> yeah, and charlie's right, i
1:13 pm
mean, i've looked at the democrat national platform going back to the '50s, and every last one of them was about smaller government, lower taxes, get the irs out of your world. remember al gore was about downsizing government? and then it flipped in 2008. and so i'll tell you something, what we see now, this is not our parents' democrat party. i have said repeatedly jfk would not be accepting of his open democrat party. david: my parents too. the reagan democrats which my father was one of concern. >> right. david: -- has kind of lost its place right now. i guess a lot of those people were the folks who voted for donald trump. >> i think when they went and they tried the pose this argument, they basically were saying -- they basically made a demographic, racial argument for their voters instead of a class argument. they went away from the roosevelt model which was more based on class, basically handing out benefits based on class. that's why we have a progressive tax system. when they went on race and you
1:14 pm
can essentially be general pinochet's kids, you lost the white working class. david: e. mac, the biggest fear of free marketeers, people like charlie and myself, for example, was that donald trump's anti-trade talk was going to overshadow his whole economic plan and cause these trade wars. once again we see that his rhetoric is very different from his actions. >> yeah. and it's -- david: when it comes down to, he is actually pulling off some deals, pulling off even diplomacy that we never expected. >> yeah, that's right. and the energy deal he just cut with poland, nat gas, that undercuts russia's relationship with europe and energy trading there. you know, i've got to say that this socialist, magical idea that money grows on trees, this lack of common sense in terms of how they run their governments, it's completely impractical. and i'm still astonished that the socialist strains of thought are still popping up in the
1:15 pm
united states. it should be obliterated once and for all because socialism is one big money grab. you look at venezuela, tens of billions of dollars sluiced out of the country and sunk in real estate here in the united states in places like houston and palm beach. david: by the way, charlie, you also look at what's happening in europe, and while the far right is not necessarily winning elections, neither is the far left. people like the president of france, for example, who did work in a socialist government. he was a finance minister for the socialist government that precede his. nevertheless, he is a businessman, he sings lower tax tune, lower regulation. so there is the same reckoning with the failure of socialism i believe in many quarters in europe that there is here. >> yeah. i mean, listen, i just spent a couple weeks in italy. i love the place. i'm from southern italy -- david: but italy's nuts. 40, 50% of the economy's underground. >> right. and you know why? because it's a socialist state. people work for the government
1:16 pm
or for the underground economy. i'll say one thing about trump, you mentioned that, look, he's cut all these great trade deals. let's give the conservative movement a little credit with trump. when he came out and said let's crush nafta, let's rescind nafta, you know, let's rescind all these -- david: which he did with tpp. >> okay, but he hasn't rescinded nafta, and he hasn't rescinded a lot of these trade deals. david: that's true. >> and he hasn't because people on right, smart, smart economists like a larry kudlow, like you, others, said if you're going to do that, you're going to cost the economy. david: you know, one of biggest myths about trump is that he doesn't listen? he does listen. >> maybe. who does he listen to? david: donald? he listens to you. [laughter] i've seen some of his nasty tweets. >> has he? david: i don't know. >> news for charlie. david: charlie, elizabeth, thank you very much. we are staying on top of all the developments out of g20. it is moving fast and furious.
1:17 pm
we'll bring you more details right after this. ♪
1:18 pm
1:19 pm
1:20 pm
1:21 pm
. >> with such a tight job market, raises should start to rise; right? >> they should start to rise, and that's, you know -- that's what you fear. there is one interesting part of today's report, which is the number of americans in part-time jobs that are looking for full-time jobs. and that number is still a little bit high. that number is around 3.3%. and that's important because there's still a little bit of slack in the economy. david: salaries are kind of slack as well, that's why we need a tax cut. meanwhile, stocks are moving, climbing on the jobs beat of expectations with the dow just hitting an all-time high. this as the u.s. economy added a very strong 222,000 jobs in june. that's big. nicole petallides is live at the new york stock exchange and of course they revised last month's and the month before that to the upside;
1:22 pm
right? >> that's right. and with the job surge and the unexpected beat here, that's even the whisper numbers weren't at 222. so that's really good news there, and that brought optimism to the markets. traders are calling it somewhat of a goldilocks report as far as tepid wage growth coupled with the jobs report, we're seeing up arrows across the board, certainly helps things along. and this is where the jobs were where we saw manufacturing and goods producing and government jobs on the rise. of course in construction and retail as well. and the stocks we saw also moving higher, and that's a big news there as that group over the last five years has been gaining, as you just heard from the labor department talking about part-time jobs. and this, take a look. you can look at names like manpower. and then we'll move on to a lot of the traders are watching is technology. and you can see these all have up arrows today. intel, apple, cisco. but i will say the traders are
1:23 pm
watching the inflation number next week, and that may affect this group. and last but not least, the all-time highs and looking at mcdonald's, which obviously is a direct correlation to ways, and that's the winner all-time high. david: i guess i just went above 100. now at 155 a share. nicole, great stuff. thank you very much. well, meanwhile, fears that congressional inaction could lead to a correction for stocks. senator mitch mcconnell signaling about a health care vote and suggesting republicans may reach out to democrats to pass the obamacare fix. that worries a lot of conservatives among the republican party to politico's capitol hill reporter rachel now on details. so what is the latest, rachel, on any kind of compromise between liberal republicans and conservative republicans? >> well, i think that mcconnell threat there to work with democrats is nothing other than a scare tactic to try to get various parts of his conference that are fighting over this bill to come to an agreement and actually get this done. on the one side, you have
1:24 pm
conservatives who are saying the bill doesn't go further enough in terms of repealing obamacare, and then you are worried about this what this is going to do with constituents, and i think it goes too far and too conservative. so basically, we're hearing mcconnell right now come out and threaten that he's going to work with democrats, and that's sort of a scare tactic to tell them if you don't do this, then you're not going to get any of your priorities. so it's time to come together and get this done. david: now you have the ted cruz amendment. there's no love loss between ted cruz and mitch mcconnell. i remember essentially calling him a liar on the floor of the senate at one point. are they able to get over that? and are they now working together for some kind of compromise? >> there's a lot going on behind closed doors that are absolutely trying to get to a place where they can get these conservatives. they know that they need them in order to pass it back through the house again. once it passes through the senate, there's a lot of talk about this cruz amendment, which would basically allow insurance companies to sell policies that do not meet
1:25 pm
obamacare regulations to offer sort of cheaper coverage. so the question about whether that can get through the senate because of procedural rules. so, you know, i think eventually they're going to figure out how to do this. i don't know if the cruz amendment is actually going to be be called in order and passed through the senate. but he's -- connell has that problem right now. he's got to get these guys. if he doesn't get someone like cruz, there's no way this is going to pass in the house, even if it passes in the senate. so he has this -- he's balancing on a knife set right now. david: and that would be bad for president trump. but it may even be worse for mcconnell. mcconnell absolutely represents the kind of establishment that donald trump says he was voted in to kick out of washington. so that might add a little fuel to that fire. >> yeah. i would say if they don't pass something, that's going to be absolutely detrimental to republicans and congress. there's no doubt about that. i think that if they don't get this done, there's a possibility they could actually lose the house and their majorities in congress.
1:26 pm
so they absolutely need to do this if they're going to showboat or follow through on what they promised. and if they don't, they're going to be in trouble politically. david: well, they could also be in trouble particularly with the conservatives if they add any taxes that didn't exist before. that's why the border tax, a lot of people feel is by the waste side, which is okay by me. i don't think we need another tax. but there was also some suspicion this week, and it was just based on a one-source story. i think steve bannon had voted the idea of raising taxes on the wealthy. i understand that idea is dead as well, no? >> i can't imagine that getting through congress. republican controlled congress. you mention the border tax. i think that that is one of the biggest issues that we're going to see potentially blocking a tax bill from coming forward because that is an idea that paul ryan is gung-ho behind. the white house doesn't like it. moderates in the house don't like it. conservatives don't like it. a lot of people don't like it. but he's insisting that they move forward on that. so they're at a standstill when it comes to tax reform.
1:27 pm
david: one man against so many people. i wonder what happened to paul. i remember when he was forking jack. he was in favor of any tax cut. never in favor of any tax increase. certainly not a new tax. rachel, thank you very much for being here. appreciate it. >> joy to be here opinion thanks. david: thank you. well, billionaire investor mark telling maria bartiromo where he thinks the gop agenda is headed. take a listen. >> i don't think house reform is going to come easy. it may not happen. but i think the tax reform will take place before the end of the year. that's something that is quite possible. >> they want to lower taxes regardless. >> exactly. >> and do you think that moves the needle on the economic growth tax? >> definitely has a big, big -- that combined of bureaucracy and impediments to growth within the small and medium sectors is very important. david: and when you are a billionaire, you can afford to wear a white tie. and you see the white bucks that he was wearing? those shoes were just extraordinary. anyway, the full interview what i focus on wall street week is tonight at 8:00 p.m.
1:28 pm
eastern on fox business. and we have breaking news. secretary of state rex tillerson briefing the press on the trump putin meeting, as you know. we just had the putin interpretation of what happened. now we get it from our side. the meeting was open with discussion on russia's involvement in the presidential election. now, that was kind of the last category that the putin side wanted to get out, and they didn't even say russian's interference in the election. it's the first thing that rex tillerson said they opened the discussion talking about. tillerson said the president was pressuring putin for more than once on russia's involvement in our elections. putin denied the accusations, by the way. we're going to bring you more on this meeting. again, it's an incredible spin that they have going in hamburg right now, and we'll bring you there live when we return. meanwhile, is there a method to happen's twitter madness? how president trump's tweets could be keeping china in check. you don't want to miss that. that's coming right after this
1:29 pm
1:30 pm
1:31 pm
1:32 pm
1:33 pm
david: president trump just entering the concert hall. these are moments ago when people just arriving. next to the president, to's right to your left is the french president and then to melania's right is the president of south korea. south korean president moon and then right behind the president, you see angela merkel will with the pink coat. but situating himself behind the president is the president of china. of course, president trump has been trying to get the chinese to take a more active role in preventing the north koreans from doing the bad stuff that they've been doing. so apparently, sometimes in the corridors and at meetings like this and a comfortable meeting where there are no microphones around, hopefully, the president can turn around to the chinese, hey, why don't you guys step up and help us out with what's happening in the korean peninsula? that's the president of china on the right. his wife, and then it goes on. i don't know who that is, but that's merkel.
1:34 pm
and down one row down is the president and melania. well, we're hearing reports that the president's antichina tweets are putting the chinese kind of off balance. to former nevada gop chair amy who says this is proof that trump should continue tweeting. i love it. it does keep them off guard, does it not, amy? >> absolutely it does, and the president has stated all along that being unpredictable is important for negotiations. normal diplomacy so far hasn't worked with china and north korea. you have china manipulating their currency, and you have north korea on the verge have attacking us with a missile, so i think this is a wise move on the president's part. we're in a new day and age where social media is a important tool, and he's using it to our advantage. david: and, you know, it's difficult enough, it always has been for us to understand, the chinese or the chinese to understand us, i think it's a whole different dimension with donald trump as president. as tough as it is for us to figure out donald trump, imagine the chinese.
1:35 pm
>> oh, yes, and they're not used to somebody with a tone such as our president. the former president was a lot different. you know, he was a lot more of stay calm or as some of us like to call him more of a snowflake, if you will. this president is more bold, brash, and he's going to be very up front. david: yeah, and i always think of that wonderful moment, it must have been, and the president described it when he announced to the chinese president that he had just sent tomahawk missiles into syria as the chinese president was spooning in his beautiful chocolate cake. remember that line from president trump? >> yes, i do. you know, what he's trying to do to president trump, he's trying to create relationships where he sits there, and he'll throw you a compliment leading them to believe that they've actually got him in their corner. and then once he finds that they're abusing the relationship, so to speak,
1:36 pm
then he's going to express his disappoint. and that's what happens now on twitter. so he's able to express that in ten seconds or less. david: by the way, we were first getting announcements from the russian side as to what happened in that two and a half hour meeting with putin. now we're getting it from our own side, directly from the horse's mouth from rex tillerson or secretary of state who's one of only six people who are in that room. he is now saying, just saying, in fact, that the u.s. remains closely engaged with china about the situation in north korea, saying the chinese took action and then paused on north korea, amy, the action they did take, they stopped the coal shipments. as far as we can tell, they stopped dozens of huge coal shipments costing tens if not hundreds of millions of dollars to the north korean currency. and yet china's trade with north korea has increased 40%. so the president's really focusing in on that. maybe he's talking to the president of china about that right now. >> well, i certainly hope so
1:37 pm
because that seems to be more of a slap in the face from what the president was hoping initially from the first conversation he had with the president of china. so if they're going to continue to abuse this relationship and not be forthright and honest with what their initial plans are with north korea, then once again, that's why the president has taken to social media to express -- david: beyond social media, what do we do? the chinese as we all know buy a lot of our debt. we don't want them to stop doing that. they provide us with a lot of cheap goods. we don't want them to stop doing that. so what exactly as we're looking at live pictures of the stragglers waiting to get in to the concert hall and of course the biggest straggler of all vladimir putin just getting in a little bit late. i guess they stopped. i could see the conductor holding his movement. you can see there the orchestra looking to wait. they're getting in right now.
1:38 pm
oh, there comes the conductor, as we see him. putin arrived just in time. but what about that, amy? the fact that there's so much going on here in the way that with china. it's probably best to keep them as much off guard as we can. >> well, sure, and that's once again the president has always stated that is advantageous to remain unpredictable, and i think that is wise on his part. he's known as one of the great negotiators. and as it comes down to if you're not going to work with us, then we don't need you, or we're going to put more sanctions, or we're not going to -- we're going to limit our trade with you. this president is a no nonsense president, unlike they've ever seen before. so i'm feeling pretty confident about president trump. liz: as the conductor begins the orchestra, we're going to see to amy, thank you very much. amy, the orchestra is playing. the president may be discussing under his breath to the chinese president behind
1:39 pm
him his real feelings about what they've been doing or not been doing about north korea. he's sitting right next -- i believe that's beethoven they're playing there. i can't tell which symphony. but they're going to the heart. okay. tillerson, by the way, just saying president trump and putin did have a positive chemistry. very important, and connected very quickly. but there is one issue they differ on in a very big way. more on that when we return
1:40 pm
1:41 pm
1:42 pm
1:43 pm
david: and a little more news from secretary of state rex tillerson who was in the room. again, first, we heard the putin spin on what happened in the room for two and a half hours. now we're hearing from our own secretary of state about what happened. he says, by the way, that neither leader wanted to stop the meeting. i love this next line. first lady melania trump apparently came in at one point to try to get them to conclude. now, how many times has that happened where your spouse comes in and says, you know, come on, guys. break it up.
1:44 pm
we've got to go to the concert or we've got to do this or that. is to real clear markets editor john. john, usually it's me telling my wife because she's latin, and she has these long, latin goodbyes saying, hey, are we going to get to this or that? i love the fact that melania could come in and try to break it up. >> it shows you who's the power in the marriage; right? david: that's a very good point. now, one thing that we haven't heard that they talked about at all is the question of protectionism. although, we did hear from putin himself, vladimir putin an old hard lined communist apparently still has his whole old communist inclinations here, and you see it come out. but listen to what he said about the free market and about trade. he said this a couple of days ago when a german newspaper "i'm confident that only open trade based on common norms and standards can stimulate global economic growth and the gradual improvement of interstate relations."
1:45 pm
now, if i haven't heard it was putin who said that, i wouldt'sn talking. you really want to be echoing putin? >> putin must be reading me. he must be echoing me. but he's absolutely right just as we don't cut our own hair and make our own food. we let others do it, and that makes us more productive. global trade just expands the division of labor. globally, it makes us much more productive. any good america first policy would be one that says the american people are free to transact with and purchase from anyone in the world. they're free to let the world meet their needs. david: all right. here's the problem according to trump. and my sympathies are more with you than the trade issue. however, they talk a good game about free trade and nobody knows how to deceive better than an exkgb agent, so that may be what putin is up to. they talk good, but then they get arrangement together, and they cheat. so you really have to focus on what they do and not their
1:46 pm
accolades about free trade. >> well, to that, i would say so what? why do we get up and go to work every day? we get up and work because we want to get things. if other countries want to send us lots of things in return for our work, let them. if they want to keep up barriers to us such that they cheat their citizens of good-living senators, doesn't mean we should add insult to idiotic injury and do what they do. let the world cheat. that just means we'll get more of the world's production. david: now, what about pressure on certain countries? we know that north korea has a nuclear bomb. we know that they now have missiles and probably an ic bm that will eventually be able to hit the u.s. we want tougher sanctions to sort of prevent them from trading anything with anybod in any kind of currency at all. would that be against your free trade policies? >> well, i don't think it makes any difference. north korea is an unfree economically basket-cased state. what would they have to trade in the first place. david: but they have been
1:47 pm
that, john, for 40 years or more, and they still survive. sometimes you can survive just by the power of a dictatorship by the brutality of a dictatorship, even if it's against free market policies. >> yeah. well, see, that, to me, would be all the more reason to have open trading relations because if people get a taste of something, they logically want more. david: every time we open up with them, they just use that occasion to crack down harder on dissidents with their their borders. >> yeah. this is an area where i very much agree with trump. i just don't think this is our fight. they've got an ibm. what are the odds it could hit us? maybe it could. david: i don't want to take those odds. even if it's 1%, i want to prevent it from happening? >> but i still think this is china's problem. and, to me, the answer has always been china, you have a problem. deal with it. if you take care of this north korean problem, we will remove our troops from south korea. i don't get the purpose of us defending the 13th richest country in the world with our
1:48 pm
blood and treasure. let's make a deal here. david: you know, the great thing about john tammy when i disagree with him, i feel there's no better person who could take his side of the argument, even when i disagree with him. and, by the way, he's the editor of real, clear markets, which you can see on your computer and realize that he puts up the best arguments he can find that are against his position. that's what i love about you, john. you're always willing to test your positions. john thanks for coming. >> thank you for having me. david: a new debt warning could change all of that very soon. details you can't afford to miss after this horseheadswivellychair.com
1:49 pm
it could be the next big thing i should totally get that domain name... get your great idea online too... get your domain today, and get... ...a free trial of gocentral from godaddy
1:50 pm
1:51 pm
1:52 pm
david: lawmakers in norway are proving that a voluntary tax plan doesn't work out very well. so far, their initiative kind of similar to what warren buffett said where he was advising people to raise more revenue by allowing billionaires to pay more money. well, guess what? their initiative, it brought in $1,325. for the whole country. everybody. while, meanwhile, the congressional budget office saying the federal government is going to spend over
1:53 pm
$4 trillion for the first time this year. senior fellow dan mitchell. so, dan, is this more proof than ever? we don't have a revenue problem. we have a spending problem; right? >> we definitely have a spending problem. it took us more than 200 years of our nation's history to get to a 1-trillion-dollar budget. now in the last 30 years or so, we suddenly jumped up to $4 trillion. now, some people might say, well, hold on a second. we've had inflation and things like that. well, go ahead and look at the numbers and inflation of dollars. it has doubled since 1985 in terms of the size of federal spending. that is a major problem for our economy. david: and as we're talking about medicaid spending and all the increase that we've had in that, people say, oh, well, president trump wants to cut this. he doesn't want to cut the spending. nobody's talking about cutting the spending. even the conservative republicans aren't talking about cutting the spending. just slowing the growth a little bit. >> well, i would love to actually cut spending.
1:54 pm
i want to shut down an entire department. liz: hold on a second because that's a great point. that in itself is a great point. you're never going to -- as long as you have a bureaucracy, you're going to have increased spending. it's the nature of bureaucracy. the only way to really cut spending is to cut entire, entire agencies themselves; right? >> i would much rather shut down one department or one program than to cut ten of them by 10% because it's sort of like if you've ever done any gardening, you simply cut a weed off at the base, are you actually solving anything? no. you have to pull it out by the roots. so, yes, i do want to fundamentally shut down and restructure a lot of government programs. but the point you made is fundamentally correct about medicaid. in terms of the obamacare repeal legislation, which of course doesn't really repeal. but all that trump and the republicans are talking about is having medicaid grow at a slower rate. now, i'm much more interested
1:55 pm
and actually restructuring the program by block granting it, putting states in charge, repeating the success we had under bill clinton with welfare reform. david: yeah. well, by the way, dan, the one bureaucracy in my lifetime that has been eliminated under jimmy carter of all people. who would have thought? it's crazy. it should happen now. thank you very much, dan. and we want to take a final live look at the g20 concert. it's going on right now. this was a surprise to many in the mainstream media, by the way. secretary of state rex tillerson saying president trump did put pressure on russia for medaling in the election right out of the gate. first thing that they talked about. of course, according to putin, it was the last thing, and they only mentioned it in passing. much more on the meeting and the fall out from g20 right after this
1:56 pm
. .
1:57 pm
1:58 pm
1:59 pm
david: name that tune. ♪ should know you by the chorus. this is beethoven's 9th symphony. we knew it was beethoven. didn't really remember what it was. this is the night hamburger, that is american mistake. hamburg philharmonic playing for all the leaders of the g20. join me 4:00 p.m. eastern time on "after the bell" on this network. steve forbes with latest take on health care and up tick in jobs. the g20 in focus.
2:00 pm
i will host a live special edition of the "cost of freedom" 10:00 a.m. eastern on fox news channel. trish regan is waiting by. i'm sure she you knew it was beethoven's ninth symphony. >> i have a musical background. i'm much better on opera. david: i'm sure you are. >> i can beat anyone ata trivia. trish: you're looking at a live look at the concert where president trump is attending with g20 summit leaders. rex tillerson reporting to that president trump raised concerns about the russian meddling in our election right at beginning of the meeting. as the president attends this

54 Views

info Stream Only

Uploaded by TV Archive on