resigned secretly yesterday. blake berman is standing by at the white house. but first let's go to charlie bass a relationship oh. charlie: way heard from my -- what i heard from my sources in washington was neat was done. i didn't know he already announced his resignation other deed was done then. but it was imminent. today we knew it would happen or over the weekends. i did find it strange that he was on the plane with scaramucci, his nemesis in the white house. it did pass through my head that it was sadistic and to have a guy fired and on the plane with you have with his nemesis. it's pretty insane. but we don't know exactly how this went down. did he just quit because he sees the writing on the wall? did he quit because he's sick of the dysfunction in the white house or did trump ask for his resignation. he saw the writing on the wall, basically -- you have a communications director that's acting as the chief of staff on his first day in the job who is openly calling you out, and your boss is not stopping it. reporter: anthony scaramucci said he reports directly to the president. charlie: it's not unusual at this white house. you have five or six chiefs of staff. steve bannon is kind of a chief of staff. jared kushner, anthony scaramucci, it goes on and on and on. >> reporter: for a communications director, don't finds that unusual? charlie: not in this white house it's bad management. will kelly allow this bizarre management structure to exist? will he make it clear to donald trump that all roads lead to him that white house or will he allow scaramucci to freelance some of his messaging that's kind of off message. it wouldn't be so bad if anthony scaramucci was getting into arguments with reporters are tax cuts. but what he's arguing about, the stuff he's messaging is trivial insane stuff if you think about it. reporter: we are hearing general kelly will start officially monday. you mention scaramucci being on the plane with priebus. i wonder what the final straw was. healthcare? with scaramucci coming in? gas rrp scaramucci coming -- charlie: scaramucci coming in to me, he had some animus with this. and when it came to denying anthony scaramucci his job early on it wasn't just priebus, it was bannon. he has some animosity to both of those guys. priebus is a weaker link than bannon inside the white house. it seems like he pushed the president to make the change. my real question is does the new guy come in and act as a real chief of staff? because if he doesn't, he's not empowered. this stuff is dysfunction. we are talking about leaks about some incidental white house dinner become the story. if anthony scaramucci does not report to general kelly, this a real problem. reporter: i can tell you from my service in the it in, i have worked for people like general kelly. he's known for being steady, maintaining a healthy chain of command. if he does take over the traditional roam of chief of staff, it will be a change in this white house. charlie: do you know him? reporter: i don't know him. i only know him by reputation. he's somebody who is focused both in the military -- charlie: i would just say this. i don't know general kelly. when he takes a job where he's been given a neutered -- would he take a job where he's neutered manager alley? reporter: what i have heard about general kelly, he's a patriot and very loyal to this country. when asked to step up to take a position that would be his first priority. he would work to establish the chain of command he's used to in the military in the white house. but we'll see where it lows. let's go to blake berman who is at the white house. reporter: it's been a couple unreal fridays. this time last week the white house named anthony scaramucci the communications director and sean spicer resigned. today you have the chief of staff tweeting out that he moms longer in that role. i think next friday we may have to duck and take cover. kelly will officially start in his post monday. after that there will be a full cabinet meeting that will take place. according to the reporting of fox news if it was reince priebus who resigned yesterday. he was on board air force one for that event in new york. but he returned as no longer the white house chief of staff. they are here at the white house. positioning general john kelly, now secretary of homeland security. sarah huckabee-sanders says general john kelly is one of the true stars of the administration. he helped seal the border and reduce immigration by 70%. lea, i will life with this. sanders said the president had been discussing this with reince priebus for some two weeks. so it appears it has been in the works for quite some time. reporter: do we know if this was something that was asked for or something that was voluntary? reporter: the big question. was he fired or told to go? i guess talking about this it appears for some time and he submitted his resignation and was allowed to stay on fan go on board air force one. lea: connell mcshain has the latest details. reporter: it's interesting to hear blake say sarah huckabee-sanders cribbed general kelly as a real star. the president was here to talk about a crackdown on gang violence which has become a big-time problem out here. he made a comment that seemed to be a throwaway comment given the context of the event. it doesn't seem that way now, however. >> i want to congratulate john kelly who has done an incredible job as homeland security. truly one of our stars. reporter: there you go. one of our stars. now that star is moving much closer to the president himself. this event was scheduled and was followed through upon to crack down on gang violence, particularly this ms-13 street gang here. that's why the president was referencing general kelly. someone who has helped him with a key issue near and dear to his heart. one of our real stars is what the president called him earlier today. lea: giving us some hints earlier in the day. former nypd commissioner bernie carrick was with president trump earlier today. what can you tell us about what you saw and heard today on long island? >> well, a couple things. first of all, i think the law enforcement community on long island definitely knows they have a supporter, they have a friend, they have an advocate in the president of the united states. i think there was no doubt about that. he was extremely well received by all ranges, all departments. i'll tell you personally i was a bit disappointed because some of the elected officials who are under sync, they weren't there. when they should be there. they should be absolutely there supporting the president and they should have had the desire. the elected officials weren't there. but the cops were and he was extremely well received. i also thought as the other journalist speaker just said, i thought this comment on john kelly, general kelly, i thought his comment at the time was good. it was the right comment. john kelly is in charge of homeland security. i.c.e. reports to homeland security. but it was taken a little out of place by some of the people in the audience. they didn't understand it. but now i get it. knowing what happened. lea: one of the questions i have for you since you were there. did you see anthony scaramucci and reince priebus? we know they were on the plane together today. i am wondering for people who actually saw them, what did you notice today? >> as far as i know they weren't at the theater. i was at the theater in the audience. i was up front by the president and i saw the president afterward. i did not see them. i saw a number of people from the president's staff. but i didn't see them. so i don't know if they waited in the theater or on the plane or in the motorcade. lea: he has h.r. mcmaster as his national security advisor. he has general kelly who will be a chief of staff, secretary of defense. general mattis. but one thing that does come to mind is homeland security is so important to this president. and this means he will have to find somebody new. >> these things happen. the first six months to a year of every administration no matter hot president is, you go through these things where you whittle down to the best people you think you can come up with. i'm sure general kelly will are recommendations about who should replace him. for general kelly, some of the people in homeland security and the department of justice, and the president will make the best possible choice. lea: homeland security will be led by the deputy for now. president trump tweet being his new chief staff. here is what he said. i'm pleased to inform you i just named general kelly as white house chief of staff. he is a great american. he is a true tar of my administration. i would like to thank reince priebus for his dedication and service to our country. he has accomplished a lot and i am proud of him. gina, i want to start with you. the president did say something nice about reince priebus in his tweets. they accomplished a lot together. many republicans would say priebus helped bring many members of the gop along election. >> one of the impressive things about this president is his raw gutterral instinct. his ability to know what needs to be done and do it at the perfect time. reince was probably the right one for that time. but now he needed to change that. that's what leadership is. i think most of of america is applauding this non-political choice which i find fascinating for an administration at this juncture. lea: capri, reince priebus was the longest rnc chairman in modern history. do you think president trump sees this as draining the swamp? 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the swamp. but we'll get it done. lea: is there a path forward at this point? >> there absolutely is. it's encouraging to see the president remains committed to repealing obamacare. the path forward doesn't have to start with legislation. speaker ryan laid out a three-phase plan. there are a lot of regulatory changes he can make to loosen up obamacare's coverage mandates and give state more flexibility. so there is a lot of things that both branches of the federal government can get done to make healthcare more affordable going forward and live up to that promise they have been working on in the last four election cycles. lea: chris, you were highly critical in a piece you wrote about the way republicans in the senate were going about this. >> the process with this skinny bill that nobody wanted to vote for but most of republicans did end up voting for was the typical inside baseball washington swamp of insider deals and back room deals. we need to focus on making healthcare and health insurance more affordable. that means loosening up the regulatory structure. lea: ream yum -- premiums are something people are concerned about. insurers have to file their rates by the end of august. >> americans for prosperity has been educating the grassroots on this. insurers will continue to drop out and continue to raise rates until we do something to address costs. we cannot continue to play ball on the left's rhetorical playing field. they have given up control and costs. lea: we'll see what happens. thanks so much. we'll be right back. lee a: reince priebus just releasing this statement it's been one of the honors of my life to serve this president and our country. i can't think of a better person than general john kelly to succeed me and i wish him god's blessing and a great success. this white house shakeup coming a day after white house communications director with a shocking tirade on reince priebus and scott bannon. one white house staffer said they were worried for their safety. lawrence jones of blaze tv is also a radio host. gillian? >> this is shock. priebus was already in trouble. i think it's a lack of class to kick a man when he's down. during the campaign there was a tolerance for trump's rhetoric on the promise that he would bring in the best people and get things done. what we are seeing is if you work for him you can't expect loyalty. lea: if you listen to what anthony scaramucci is saying, it sounds like he thought reince priebus was the source of the leaks. >> i'm not going to speak to the leaks. but our colleague steve hicks said it's interesting that this happened last night and there were no leaks by the to the press. i'll let people take it as that. the white house has been dysfunctional as far as the message, as far as reince priebus' position and the communications direct year. these were people who weren't doing their job to make the president more mainstream and get legislation passed. that's not happening. now, you see the president shifting to his old guard. scaramucci was on the campaign from the beginning. corey lewandowski was on. these are people who are close with the president and he feels like they can get his message out there. lea: if you haven't seen the front cover of the "new york post." it was basically survivor island. you see president trump, you see reince priebus. you see kellyanne conway and steve bannon and anthony scaramucci. you have to wonder whose face would be x'd off of that front cover. now we know it's reince priebus. how much of an effect do you think anthony scaramucci had on reince priebus' resignation? >> we have seen signs of this for quite some time. but since it happened right after the rift, it sends a message that it's okay to talk about your colleagues like this. i don't think priebus deserves this. he was very successful at the rnc. he was instrumental in getting the party to rally after trump after the bruising primaries. >> i'm so sorry. but the notion that reince priebus is responsible for the republican victory is absurd. >> i didn't say that. >> these were the tea party wave that got republicans in. priebus has always been part of the establishment it was donald trump's message that got him elected. it wasn't like he was in line with the republican party. priebus is part of the problem. and i think was more concerned with the president when he brought him in and thought that was going to be a smooth thing. and then wants that same guy to be the lead in getting his policy passed in congress. so i think it president has some blame right now because he wasn't loyal to some of the people who got him into office, now he brought a guy that was establishment. there are a lot more people in the white house that you will see trickle out because they don't see the message the same way the president does. >> this is the new establishment we are creating. what the takeaway is, if you get behind trump early and support his policies you can't expect his loyalty. i think it will make it difficult to have the experts we want making good policies. there have been some struggles with trump's agenda. this drama doesn't help it it's a distraction. >> that's politics. athleta: w -- lea: we have to g. but with general kelly moving in as chief of staff, i think there will be a change in the white house. folks, we'll be right back with more. yes. so let me ask you this... how does diabetes affect your heart? 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that it's time to think about jardiance. ask your doctor about jardiance. and get to the heart of what matters. ♪ the great beauty of owning a property is that you can create wealth through capital appreciation, and this has been denied to many south africans for generations. this is an opportunity to right that wrong. the idea was to bring capital into the affordable housing space in south africa, with a fund that offers families of modest income safe and good accommodation. citi® got involved very early on, and showed an enormous commitment. and that gave other investors confidence. citi's really unique, because they bring deep understanding of what's happening in africa. i really believe we only live once, and so you need to take an idea that you have and go for it. you have the opportunity to say, "i've been part of the creation of over 27,000 units of housing," and to replicate this across the entire african continent. lea: quetta friday evening in the wake of the white house shakeup. reince priebus is out, homeland security secretary john kelly is in and white house chief of staff. blake burman is at the white house for us. what you hearing? >> would the get theirs on the timing. according to the white house press secretary sarah huckabee sanders the discussion about this actually began about two weeks ago. according to white house sources telling her producer it was actually yesterday when priebus submitted his resignation. let's fast-forward to about 4:50 this afternoon, that's when the president upon landing at joint they sanders ended up sending out that tweet and now thinks priebus was out and john kelly is in the white house said kelly will start in his official role as the white house chief of staff on monday. the white house is sent out the following statement about priebus and kelly saying and i quote as it relates to kelly general john kelly is one of the true stars of the. it's helped seal the border and reduced illegal immigration by 70%. user selected by everyone especially the people at the department of homeland security, the entire administration loves them and no one is comparable end quote and went on to thank reince priebus as well. he was president trump earlier this afternoon. >> reince is a good man. john kelly will do a fantastic job. general kelly has been a star and done an incredible job thus far respected by everybody and a great, great american. reince priebus a good man, thank you very much. >> moments ago priebus himself put out a statement that reads as follows quote it's been one of the greatest honors of my life to serve as president and our country that i want to thank the president for giving me the special opportunity that i will continue to serve as a strong supporter of the president's agenda and policies. i can think of a better person than general john kelly to succeed me and i wish them god's blessing and grace success. leah kelly begins his official role in the white house on monday. leia blake, you know of course lots of information coming in that we all want to know what happened behind the scenes on this one and for that we ever programming alert for you. neil cavuto will be live tomorrow morning on the cause of freedom with full coverage on the latest shakeup tomorrow at 10:00 a.m. eastern on "fox news" the potential market impact of this white house shakeup hasn't seen a huge bump in the market from political issues yet. what's going to happen now? he will break it down. that's next. if you spit blood when you brush or floss you may have gum problems and could be on the journey to much worse. help stop the journey of gum disease. try new parodontax toothpaste. ♪ when i was too busy with the kids to get a repair estimate. i just snapped a photo and got an estimate in 24 hours. my insurance company definitely doesn't have that... you can leave worry behind when liberty stands with you™ liberty mutual insurance. lea: reince preibus the shortest serving white house chief of staff in modern history talking 188 on the job -- days on themi: job. we will be right back. n pickup. michael: let's do this. potsch: this new truck now has a cornerstep built right into the bumper. gary: super cool. potsch: the bed is made of high-strength steel, which is less susceptible to punctures than aluminum. jim: aluminum is great for a lot of things, but maybe not the bed of a truck. potsch: and best of all, this new truck is actually- gary: (all laughing) oh my... potsch: the current chevy silverado. gary: i'm speechless. gary: this puts my ford truck to shame. james: i'll tell you, i might be a chevy guy now. (laughing) whatever it takes, wherever i have to go...i'm beating this. breast cancer treatment is continuing to evolve. ctca is definitely on the cusp of those changes. we really focus on taking the time with each individual patient so they can choose the treatment appropriate for them. i empower women with choices. it's not just picking a surgeon. it's picking the care team, and feeling secure where you are. visit cancercenter.com/breast appointments available now. lea: shakeup at the white house reince priebus is replaced as chief of staff by homeland security secretary john kelly. major averages have earned all-time highs despite all this chaos in washington d.c. but what will the market and economic impact be of the shakeup tax we all want to know and joining me to discuss his catherine kelly chief investment officer. thanks for being with us. >> thanks for having me. lea: we have seen attempts at passing health care and we haven't seen a move in the market. you think this white house shakeup will have any impact? >> the white house has been impervious to the disarray happening in washington this year especially with the russian investigation and a lot of things haven't moved on the needle when it comes to fiscal policy so it's interesting and that's because a lot of the markets focus on the global growth is happening to most of these companies are large multinational corporations benefiting from a weaker dollar. the dollar offer 6%, the dollar was off 6% in first half of the annette helps boost their exports and global business and that's why you see a lot of companies earnings are being affected by that. lies somewhere we did see an impact is the tobacco company stocks. it fell off today today. how's about we are seeing. >> what you're seeing is an fda that is the more active especially comes to regulation trying to move the stocks into the e-cigarettes market. this could impact the sales going forward so the market is worried about further regulation when it comes to the health and benefits of nicotine weathered cigarettes or e-cigarettes. lea: we will be watching that and you also mention very quickly i want to talk about earning season and what you have seen. >> earnings season is 70% bead on the top line in the bottom line for the companies that have so far reported. their guidance has been tempered and that's why we are not seeing a breakout. it's things like technology and financial with the market as they are waiting for fiscal policies to help carry them going forward because they've been stretched and have a huge run up so far this year. lee kevin kelly thank you for your insight. breaking news on the white house shakeup lake herman is that the white house with the details. blake what you hearing now? >> we have heard from president trepid we have heard from reince priebus and now we hear from the man of the hour general john kelly. he just put out a statement minutes ago. let me read it for you in full. quote i've been fortunate to serve my country for more than 45 years versus some rain and then as the secretary of the department of homeland security pic i'm honored to be asked to serve as the chief of staff to the president of the united states. he goes on to write the tremendous men and women at dhs i thank you for the opportunity to service your secretary to but when i left the marines i never thought i would find a patriotic as group of individuals that i was wrong you accomplish great things everyday defending our nation i know you're exceptional work will continue. lea technically john kelly remains as the head of the department of homeland security that the weekend. that's what one dh s. official is telling fox. he will officially. reporter: the white house as chief of staff come monday. lea: blake burman thank you. general kelly showing up for work at the white house on monday in a new position so this white house shakeup means there's a job opening at the department of homeland security starting monday. we will discuss that. stay with us. whoooo. i enjoy the fresher things in life. fresh towels. fresh soaps. and of course, tripadvisor's freshest, lowest prices. so if you're anything like me... ...you'll want to check tripadvisor. we now instantly compare prices from over 200 booking sites... ...to find you the lowest price... ...on the hotel you want. go on, try something fresh. tripadvisor. the latest reviews. the lowest prices. van the white house shakeup means homeland security is now looking for new secretary. here to discuss j.d. gordon the pentagon spokesmen and retired naval commander and rebekah grant a former official in the office of the air force secretary and currently with the irs independent research. welcome to you both. >> thank you. lea: rebekah wants us to review. alain duque will be asking dh sex -- dhs secretary what happens then? >> homeland security is a hugely important job. the department was created after nine elevenths of the trump administration won't want to leave that position uncovered for too long but it's a heck of a job, huge sprawling bureaucracies, a lot of different components to it so he will be looking for someone who is a good manager and someone who's going to tap into some of the military support aspects that go into homeland security. lea: j.d. general kelly's last job in the military with city was chief of u.s.'s southern command said in a position he was exposed to immigration, drug trafficking and other cross-border problems and dealing with that now. is this a signal from this administration on where the focus is going? >> perhaps predicting general kelly was well qualified for his role in calcutta more he was seeing -- overseeing operations and that included a major focus on things like immigration and things like counternarcotic operations. very well qualified their buddies also qualified to be the chief of staff of the white house. i know general kelly because we worked together a dozen years ago at the pentagon when he was a one star general in charge of relations for the marines and reince priebus from the rnc because i had been on two presidential campaigns is the senior adviser but i don't think reince is cut out to be the chief of staff. he was very good at winning elections in helping with that but general kelly will with that place into shape. lea: and want to move on to this topic since you are both military experts. american military officials are confirming north korea has test launched another missile another intercontinental ballistic missile. we of course know they launched one back on july 4. this one reportedly going higher and further. rebekah what are we going to do about north korea? >> it's time that we let the military options square in the face and we are hearing are chairman of the joint chiefs and her pacom commander have talked with their counterparts in south korea so kim jong-un has got to understand we can do things to his target set that he has even thought of like the moab is the mother of all bombs but please keep in mind very important we are going to do this the way we want to do it not the way north korea with wants it set up and we have some super missile defenses in place culminating with our interceptors in our base and alaska for greeley and vandenberg in california so we are going to use offense, defense and work with our allies to bring resolution to this. we cannot let it go on. lea: the white house is condemning that launched the j.d. you hear about the different options on the table with north korea trying to use diplomacy, trying to use stronger sanctions and sanctions have not worked. we have heard the idea of military action but then there was another idea of just letting north korea become another nuclear power. where do you think we need to go at this? what's the best option for the united states as we see north korea continuing down this path? >> well we don't have any good options. i do agree with what rebecca just said. to pressure north korea and pressure china and other people trading with north korea. we ought to have an oil embargo. that would really hurt pyongyang and russia and china would have to sign up for the oil embargo. frankly russia and china want us out of the korean peninsula so we don't have too much leverage. we should have military options open although if we don't take a kim jong-un right-of-way right away they could be catastrophic and you could have millions of casualties on the korean peninsula and tens of thousands of u.s. troops as well. lea: rebecca j.d. mentioned an oil embargo on how the chinese would have to plaintiff that. in fact what we are seeing from china is china buzzing our aircraft. we are seeing trouble with our ships trying to conduct freedom of navigation operations. we are not in a good place for china so how how else do you see us being able to put pressure on north korea without actually using military action? >> china is finding that it's not all that easy to be a world power and it's not easy to get north korea back in shape. i think china's pressure is still very important part of what our military forces do is make it easier for china to go ahead and try to get that solution. down the road the trump administration will have to face china's ambitions in the pacific , what those j. contador navy plans was inexcusable and unprofessional. they have airbases established around the south china sea that they have reclaimed so trump will have to face that down the road but there's no question he needs china to be part of the solution to their encouraging talks going on at the u.n.. we have to let china do what it can do as well because it's unimaginable to let north korea develop a nuclear weapon that could land on us or land on our allies. lea: lots of pressure and lots to work on as far as handling this problem in moving it forward. thank you both for your insight. we will be insight. we will be right back. >> thanks lea. copd makes it hard to breathe. so to breathe better, i go with anoro. ♪go your own way copd tries to say, "go this way." i say, "i'll go my own way" with anoro. ♪go your own way once-daily anoro contains two medicines called bronchodilators, that work together to significantly improve lung function all day and all night. anoro is not for asthma . .. reporter: the white house shakeup coming at a critical time for the white house. we have chaos in venezuela, rising tensions with russia and north korea. multiple wars and threats of terror worldwide. j.d., i want to talk about venezuela. what's happening this weekend. there will be a vote to establish a constituent assembly that would set up maduro as a dictator. what do you make of this decision for sanctions and how powerful will it be? >> the sanctions are in step in the right direction. they are targeting their state-owned oil company. i think our allies like colombia have to put pressure on venezuela. this referendum is bad news that's going to take place sunday. it will be able to change the constitution. they will be able to keep maduro in power for life. and venezuela will become a cuba-like government. reporter: what are your thoughts on what needs to happen? >> i think it's important that we have the capabilities to use oil as a foreign policy tool. but if you look at it, every time oil prices sung by a dollar, verns was taking a $700 million hit. any effective foreign policy will have to get at cuba as well. they are running this as a proxy war, and they are effectively doing this. trump took this in the right direction when he was talking about intensifying sanctions on cuba. reporter: can you talk about the threats to the greater region if this goes forward in venezuela as planned? >> it could spiral into a civil war that we need to stay out of. it's have much a class war, if you will. we have to basically manage it and be prepared for a refugee crisis if that happens in the caribbean. it two could be a -- it could be a massive refugee crisis. reporter: congress did pass legislationing to sanction russia. but russia is reacting by saying it's going to kick out some of our diplomats and close down some of tour facilities there. >> across the world what we are seeing is dictators and trouble makers testing trump. i think they are seeing the chaos in the white house is a good opportunity to act. so it's important he takes a strong line on some of this stuff. reporter:chaos is the word of the evening as we look at what's happening in the white house. lou dobbs is next right here on fox business. reporter: a major shakeup at the white house. general john kelly, the homeland security secretary is his replacement. he will officially start monday. two white house sources telling fox that priebus secretly resigned yesterday. the president tweeted i am pleads into form you i just named general john kelly as