Investigators. The Top Republican on the House Intelligence Committee warning that the justice department, the fbi, may have broken the law with those fisa applications. How . Well ask chairman devin nunes hes here. Also looking live outside palm beach florida where the president the expected to return. His latest move sparking fears from wall street to main street, were about to enter a nasty trade war. Thats where we kick things off. Since it seemed to affect some traders and some stocks. Lets get the latest from tracy. Tracy . Good morning, neil. Thats right, a real tariff war could be erupting right now. Lets take a look. Wall street reacting quickly to the president s sudden and somewhat vague announcement on thursday afternoon ig viting a igniting a sell off in a market already on edge on rising u. S. Interest rates and bond yields. The idea of what essentially would be a 25 tax on imported steel and 10 on aluminium sent stocks tumbling. Investors spooked by the prospect of a global trade war. Stocks tried to recover on friday as wall street and the world await more details from the white house next week. But for this week, the dow, s p 500, and nasdaq all ending in the red. Stocks in europe and asia also finishing the week in negative territory following the announcement as countries around the world began reacting and warning they will retaliate if tariffs hit companies in their homeland. However, President Trump defending his decision with a number of tweets, saying, quote, we must protect our country and our workers. Our Steel Industry is in bad shape. If you dont have steel, you dont have a country. He also said, quote, trade wars are good. And easy to win. Secretary of commerce down played the impact tariffs could have on consumers on fbn. Heres what he said. I bought a can of campbells soup today at the 7eleven. It was 1. 99 for the can. Theres about 3 cents worth of steel in this can. If it goes up 25 , thats a tiny fraction of one penny. Thats not a noticeable thing. Sure, it may not be a huge difference for a tin can, but what about a larger purchase like a washing machine, a new car, ford, General Motors and toyota responding to the tariffs with toyota saying car prices would go up, quote, the administrations decision to impose substantial steel and aluminium tariffs will adversely impact automakers, the automotive Seller Community and consumers. Again the white house says it is ironing out the details and should learn more next week. The president says he hopes to sign something very soon. Neil . Neil thank you very much. I dont know if its more remarkable in the commerce secretarys explanation of this the fact the impact of this would be so minimal or the fact that a billionaire pops into a 7eleven to pick up a can of soup. Lets get a read on this with my guests. Where is this all going . If these tariffs arent stopped, it is going to do serious damage to the american economy, u. S. Consumers, and businesses that actually use steel and aluminium to produce goods that we all use. I think that these tariffs punish the many, and i mean americans. I mean, regular old folks like my mom and dad to help the few. And i think that when you have a billionaire cabinet secretary holding up a can of campbells that this is a diversion. It is a ruse to distract from the real damage that this could do to americans. And i mean, i mean Consumer Prices going up because quarter of a car is cost is tied to the price of steel. Number one, a few thousand dollars extra on a car is a hit to Many Americans. Its a hit to those very automakers, but this also is about jobs. You cant stop in at 7 eleven to get a car. No, by the way, it is like lecturing me yesterday on the air about i saw that. Do you know how much a six pack of beer is going to go up . You know what . You know, its more about than a cost of a six pack of beer. It is about the retaliation by countries who are our greatest allies. We have already heard from europe about 3 1 2 billion dollars worth of penalties on harleydavidson, bourbon makers. This will destroy jobs. History shows it will do a lot more damage than it helps. So you like it . [laughter] neil david, what do you think of this . David couple of things, first of all, we just made fun i think rightly so of nancy pelosi calling a thousand dollars in tax breaks crumbs. Remember that . That was just a couple of weeks ago, how soon we forget. And now suddenly you add up all it is not just the tin cans. It is the couple hundred dollars extra you are paying for a car and Everything Else that we use steel and aluminium in and you get well over to a thousand dollars. Thats not crumbs to most americans. Dagen is right. It also a question whether wilbur ross bought that can of soup. I dont doubt that he did. I do know a little bit about his history. He made a lot of money buying distressed Steel Companies. Im wondering if a man who made all this money buying distressed Steel Companies through a conglomerate that he was on the board of is the right person to be lobbying for neil you made a great point. Were told this was not universally shared at the white house, for example, some were not keen on this urging the president against doing this. Theres some Division Within even the white house on this. Nevertheless it is what it is. Sometimes the president does this, bill, to send a message so you never have to enact the tariffs and all this other stuff and countries, you know, sort of bend. Do you see that happening . I dont know, neil. You know, i often dont like what he says, but generally like what he does. In this case, i dont like either one. And, you know, theres so many places to go with this that im concerned. He tends to say these things and then he is a bit of a protectionist and may tend to follow through. But i agree with dagen, i think this is not a good thing for anyone. And the disappointment to those of us in the business community, is we were making so much progress deregulating the economy and then we throw this right back on top. Where does it stop . Do you go to cars next . Textiles . Where does this stop . I think ultimately it leaves confusion and sort of disappointment in the business community, and thats not a good thing. I think thats what the market reacted to when it sold off. Neil i understand where the president is coming from on this, there is frustration you cant find Many American cars in places like japan and china. They make it tough for American Companies to make inroads in its respective markets but yet the world goes nuts if we recognize and state that and try to do something about it. Was this the way to go about it . What do you think . I think im going to be the lone voice in the wilderness here, neil. But i didnt know exactly how to react to this, but there are a couple things, one is this president has been saying this was a problem these unequal trade agreements we have with the rest of the world for a long long time. And so we should have known when we elected him that this was probably forthcoming. Secondly, we have the master negotiator in the oval office. Lets not forget that this guy knows what hes doing in terms of creating leverage which is exactly what i believe hes doing in some of this. And then i think lastly, you know, if we were in a war today, and we looked back, neil, and we could have made some of these decisions to have more control over our steel and our aluminium, its needed in a war. I dont think we regret paying 1 cent on a soda can or even 20 grand on a 727 airplane. I think that some of those costs in wartime, if we could look backward, would have been worth to it. Neil i dont know, im not going to buy a 727 now. Im not going to do it. I need to make a statement. David he was this close but hes not going to do it. Neil i was so so close. [laughter] neil i want to get your sense on the thing. I appreciate where you are coming from, the notion its minimally impact, the message it sends is maximal. It will send a message and let countries know dont even toy with us and they are going to do something. Dagen they are going to retaliate against American Companies. You dont buy the trump argument dagen no i dont. Youve already seen evidence look back in history. David and i were talking about the show started bush imposed in 02 steel tariffs. According to economic analysis, it destroyed more jobs than the total number of people employed be i the Steel Industry employed by the Steel Industry at that time. Neil he was getting heat from both sides though, the left and the right was whining about it. President trump should be getting heat from everybody in the country who understands simple economics quite frankly. It destroyed jobs back in 02 when there were only about 188,000 people employed in the Steel Industry. David can i bring up the fact too that yes there was a big increase in imported steel in 2017, 15 increase, but in 2017, nucor, the biggest u. S. Steel manufacturer increased its profits and increased its revenue by 25 . So yes, there was an increase in imported steel. No, it did not hurt steel profits, u. S. Steel Company Profits they were making more money in 2017 than they were in the year before. Dagen steel dynamics, record sales, record income, record shipments last year, even u. S. Steel posting a profit last year. David are you willing to punish the consumer that much for an industry that is not being punished that much from a growing economy . Dagen by the way holding up a can of soup or lecturing somebody about the cost of a six pack of beer, its condescending. Is this messaging so tone deaf because hope hicks isnt there anymore . I know she just resigned. But again, youve got to think about the way this looks because that looked bad and it sounded worse. Neil bill, is there a way to fix this and make it right to address some of these trade inequities . The president is right about that. There are some disparities. How do we go about changing it . We talked about it before and those disparities continue, they exist. Well, i think you have to continue to put pressure both diplomatically and on businesses in these countries, but the reality is, neil, that you have to be careful because it works both ways. Back to dagens point, i can tell you when i ran heinz, we produced baked beans in the u. K. , using tin plate produced in europe but the beans were almost totally sourced in michigan. What if the british in response say lets put a tariff on navy beans. This thing has repercussions way beyond a simple statement. I worry about this is the unintended consequences on this, lead to production inefficiencies and really ultimately damage businesses. I recognize why hes doing this. I understand it plays to middle america. As a pittsburgher i get it, but still i dont think its the right way to do it. Neil gina . You know, neil, heres how i gauge things that the president does. I watch for the left to go into total and then i watch for the eu to start threatening us. When those two things are happening, i think the president is on the right track. Neil it is not just the left i do think neil that in the long run we will see hes always playing the long game. Hes always playing chess. Watch and see. I bet this goes well. David by the way the left is very happy, the support hes getting is from the democrats and the unions. The left is not unhappy with this move. Neil guys i i meant the leftist media. Thats a different thing than the censor of the democrat party. Thats a different thing. David it is a mistake. Neil everyone here has to hug. [laughter] neil another story. Telling Delta Airlines enough is enough over its stance on the nra backing away from the nra, that is delta, the republican Lieutenant Governor of georgia, with us right now. Governor, very good to have you. You led this charge to stop this tax incentive that delta and other airlines use in georgia because it is separating itself from the nra. Now, the head of delta saying he wont be bullied. Are you trying to bully him . Well, first of all, neil, its great to be with you. I think it is important to note that actually they did not have a tax cut. They were asking for jet fuel exemption that would move to zero on paying any tax on jet fuel. That was in the context of a larger tax bill that we were moving through the legislature. Neil i understand, but you were taking it away from them no, neil, they didnt have the tax cut. Neil i understand that, sir, but im just saying they wanted it, they didnt get it because of this position on the nra; correct . That is correct. Neil is that right to do . You think it is. Others say it is a slippery slope. And youre going to chase them right out of your state if the governor of this state new york where i am now has his way, he will try to woo him here. I mean i think you would agree that capitalism is less about social policy and more about fiscal policy. I think the fiscal policy for delta is very strong here in our state. Were the number one state to do business in, when you look at our low tax environment, you also look at the cost of living, the system, along with our world class workforce, were in a great position. Deltas in a wonderful position to continue to make record profits. The issue here was there were many individuals that were already concerned about giving a special tax cut to delta, and then when they weighed in on the boycott, that really was obviously i think the issue that came to the forefront, and honestly conservatives are getting tired of being kicked around. And im one of those. I think neil governor, there was a time where there was a transgender debate going on North Carolina a lot of groups were punishing North Carolina and states that supported that move, that North Carolina saying they essentially went too far. There was a lot of back and forth on this, but a lot of conservative groups were united a lot of conservative politicians were united that punishing North Carolina went too far. Yet, you are punishing delta for taking this tact, and im wondering if that is hypocritical. Well, i totally take issue with that, neil. I do not think that were punishing delta or any other company for that matter. Neil why would delta ceo say our values are not for sale . He wanted simply to stay away from the controversy, pro or con; right . Any company is going to avoid that like the plague. You want to stay away from controversy. You are punishing a company for maybe purposely valid reasons governor because it didnt welcome the controversy youre very comfortable embracing . Well, absolutely. And they have a choice to make. Im not telling them that they cant make that choice. Im just simply saying that obviously if delta, you know, wanted to weigh in, after they already negotiated a benefit for the convention of nra, which they did, on a national boycott, i find that wrong because that flies in the face of conservative values that we believe in. Had they treated everyone equally and said were suspending all of our benefits that we have negotiated, that would have been one thing. Now, for delta, they have come forward, along with the ceo and said we are very pro 2nd amendment. And i think thats a step in the right direction. Let me very clear, delta is part of our family in georgia, and so i have had a long long record of supporting and helping delta, back when they went through the bankruptcy, i was there in the legislature to actually do away with this jet fuel to help them financially get back. But corporations need to be focused more at their fiduciary responsibility to their shareholders versus trying neil would you extend to other companies that do business . I dont know if you have a Dicks Sporting Goods in georgia. Certainly have a lot of walmarts. They have made moves already to address gun, gun sales, raise the age for those who want to purchase those guns. Neil, that is perfectly within neil what would you do . That is perfectly within their right. They are treating everyone the same. They are not singling out a one individual neil but the nra opposes those moves. You are penalizing a company that had an awards program for nra members to, you know, to take advantage of that and by group sales on ticket prices, that sort of thing. A lot of people look at it let their investors, customers decide whether that is a good or bad move. We will see it prove out in their business. You have added another element to strong arm of the State Government in this case if they dont tow the line; right . Well, i mean, youre right, ive basically, you know, have been very supportive of delta and will continue to be supportive of delta. Neil what if im a company, sir, that wants you are running for governor. You get to be governor. And then i hear that a lot of companies, you know what . I might want to set up shop in atlanta or georgia in general, and now i dont know because, you know, the political winds there could be very fickle and i may not get the treatment i want or the sort of Government Free environment i want. I might choose some other states. Thats a false narrative. A total false narrative. When you look at the fortune 500 companies we have in our state, you look at the fact that we are the capital of the south. No one really compares to who we are. And people and Companies Make decisions based on financial reasons. Okay . And were not being punitive, nor will we be punitive. Neil what would you say if delta said were leaving, what would you say . Delta came out and said they are not leaving. Neil they are still digesting this. If they were to leave, how would you feel . They are not going to leave. First of all. Neil okay, all right. They have a huge financial presence in our state. They are making record profits, and they know that they have a state that has their back, and they are going to be able to make more money than they ever have right here in our state. But again, you know, this is a great lesson for all of us to learn, both in terms of politics, but also in terms of business too. Neil okay, governor. Lets stay focused on the business issues. Neil all right. We will see how it all pans out in the meantime, weve got that other storm, the real storm, the life and death storm thats a noreaster thats not going away, particularly in upper new england. Were on it, after this. See thats funny, i thought you traded options. Im not really a wall street guy. Whats the hesitation . Eh, it just feels too complicated, you know . You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Stepbystep options trading support from Td Ameritrade my healthy routine helps me feel my best. So i add activia yogurt to my day. With its billions of live and active probiotics, activia may help support my digestive health, so i can take on my day. Activia. Now in probiotic dailies. When it comes to travel, i sweat the details. Late checkout. Downalternative pillows. And of course, price. Tripadvisor helps you book a. Hotel without breaking a sweat. Because we now instantly. Search over 200 booking sites. To find you the lowest price. On the hotel you want. Dont sweat your booking. Tripadvisor. The latest reviews. The lowest prices. Neil you are looking live at quincy, massachusetts, a lot of flooding going on there, water rescues in the state going on as we speak. Powerful storm thats wreaking havoc across the east, particularly there. On the phone is massachusetts Emergency Management director. Director, thank you for taking the time. Man oh man this thing looks like horrible. Its been a long 36 hours. Mother nature has really just thrown everything she has at us. You know, damaging winds, rain, snow, and massive coastal flooding. Neil it certainly looks that way. A lot of people were caught offguard, despite the warnings. What can you tell us right now . Whats the latest read . You know, along our entire east and northfacing coast, you know, we have had 30 or more communities that have already gone through two very high, high tides with major coastal flooding, and were going into a third one in about an hour and a half. So weve seen prolonged destructive flooding across our entire coastline. Its forced, you know, thousands of people out of their homes. Its caused local officials and state Public Safety personnel and National Guardsmen to have to rescue hundreds of people. And, you know, it is too early to tell, but it certainly looks like were going to have a lot of homes that have been significantly damaged and a lot of infrastructure destroyed. And then when we move away from our coast, where we received, you know, in some areas 5 inches of rain at the same time that we had hurricaneforce winds, we had gusts yesterday up to almost 100 milesperhour, and they are still gusting over 60. So weve got areas that in many communities that are simply impassable. Hundreds and hundreds of downed trees. Were over 450,000 people without power yesterday. Were down about 380,000. So we have a lot of work ahead of us in the coming days, but were still in Emergency Response mode, and hopefully well transition into a clean up and recovery over the next 12 to 24 hours. Neil yeah, i cant believe be safe yourself, director. Thank you for taking the time. Appreciate it. Pleasure, thank you. Neil much has been made meanwhile about hope hicks, before the House Intelligence Committee, the admission that she sometimes tells white lies for the president. A lot of people are wondering how did that get out so fast because that was vealed as the questioning was that was revealed as the questioning was going on. Virginia house judiciary chair, congressman, you know, it is weird. I have talked to a number of people about this, regardless of the white lies comment and what it meant and what she was implying there, the fact that everyone seemed to know about it. What do you think . Leaks are a serious problem in washington, and they have to be dealt with. We just learned yesterday that the former Deputy Director of the fbi was authorizing leaks in his official capacity to the wall street journal regarding the investigation into the Hilary Clinton email matter. So its an ongoing problem. People should wait for the facts. In this case, with regard to mr. Mccabe, the facts will come out when the Inspector General of the department of Justice Michael horowitz releases a report which is just weeks away. This is a leak however of whats expected to be in that report. Neil do you have faith in mr. Horowitzs report . Do you . I have a lot of confidence in the Inspector General and his office to do a fair job. I think its important that that report get out as quickly as possible. And i dont believe that just the Inspector General looking into all of this is sufficient. A long while ago, last year, i and many other members of the House Judiciary Committee called on the department of justice to appoint a special counsel to look into the fbis handling of the whole clinton email investigation. And not just because of the things that director comey did back then in terms of making a decision before he had interviewed the witnesses, writing this and then having it changed to fit his narrative instead of to fit the law, when he made his statement back last summer. Neil right. But also what happened in, you know, this democrat should be very worried about what happened right before the election, a week, ten days before the election. Neil but that didnt but Jeff Sessions going the route he did, youre comfortable with at least that, unlike the president is not . Im comfortable that as long as that new request by Jeff Sessions does not delay the release of the report regarding the investigation he was already conducting, im fine with that, but i also dont believe thats going to be sufficient, and the Judiciary Committee and the oversite government committee, trey gowdy and i will continue to investigate these matters until there is an appropriate outside investigation with prosecuting powers. Neil alabama senator shelby does not have confidence. This is from a couple days ago. If you are Jeff Sessions, why do you stay attorney general . Thats a question of the day right now. Do you stay neil would you . If it were you senator in that capacity, would you stay . Would you be humiliated and happily humiliated day in and day out . Absolutely not. I wouldnt stay at all unless the president wanted me to stay and he appointed me. I wouldnt be under anybodys i wouldnt be anybodys whipping boy. I wouldnt be belittled because the president is saying you dont have any confidence in me. Thats jeffs challenge right now. What he wants to do and how he does it, and hes a good man. Hes going through a lot. Hes got a lot of challenges. Neil what do you think about that chairman . What do you think about that chairman . Jeff sessions is a good man. Its very unfortunate he found it necessary t