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tv   The Intelligence Report With Trish Regan  FOX Business  June 30, 2017 2:00pm-3:01pm EDT

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to hear, the most beautiful voice on the planet, sorry, barbra streisand wherever you are. i might be succeeding. a lot of people might feel uncomfortable with this. joe emails, there is something uncomfortably weird and inappropriate for this woman could be your daughter. as if. lauren simonetti. in for risch reagan. >> hello, can you hear me? neil: i can i'm in adele, you can't be leaving. don't let my troubles be yours. >> thank you, my friend. we're hours away from senate republicans to introduce a new health care bill. at this hour it seems a deal is highly unlikely. let's look how the market is reacting to all of this.
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lauren: i'm lauren simonetti in for trish regan this friday. welcome to "the intelligence report." president trump says if they can't decide on what they are working on now they should immediately repeal and then replace at a later date. will republican senators be on board with this plan? we'll stay on it. how about this for outrage. a i will relate immigrant is about to win a lawsuit for being in the country illegal. the immigrant suing san francisco because police turned him over to the immigration agents. that is in violation of the sank wear city law. adam, the clock ticks or doesn't it at this point? good to see you?
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reporter: good to see you, lauren that's a great he question. this deadline is really pie-in-the-sky. remember mitch mcconnell wanted a vote before the july 4th recess. we're in the land where they get up at 12, work at one, take an hour or lunch and then they're done. a lot of people left for the july 4th recess. they will not submit a updated version of the better care reconciliation act to be scored by the cbo the deadline is kind of out there. it is gone. the only deadline that matters we should he pay attention to as if health care was only thing senate should be worried about. september 30th, when the current budget expires and reconciliation rules operate to do health care. as far as deadlines, not so much. however there is proposal to possibly split the bill and just do repeal first and kick, replace down the road. here is what ben sasse, the
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senator, had to say about it. >> every republican in the u.s. senate except for one already voted for repeal in the past. let's do that first. if we can't do them together. do as much repeal as we can. then let's have the president ask us to cancel august work period and work on this and separate. we made promise to the american people. we should fulfill them. reporter: the senator voted in 2015 against repeal was susan collins. i talked to her office. she would vote again, against repeal. rob portman, would not vote for repeal, he would vote for replace. they're almost at a deficit if they want to do what been sasse is he proposing. there will be health care reform, according to tom price. here is what he says. >> i think so. because the status quo where we are right now is untenable. isn't sustainable. doesn't work for patients. doesn't work for families.
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doesn't work for docs or employees or employers or state or federal government from financial standpoint. we have to move in a better direction. that is the challenge. reporter: lauren, only deadline if they only care about health care, is september 30th. in fact they care about a number of other things. tax reform, all of that. when i speak to people on the hill when would really somebody happen to health care, if something would happen, talking about the end of july. it slows down the whole agenda if that is true but they're talking about something end of july. there was a already that certain senators sent to mitch mcconnell today, the senate leader asking him to essentially do away with the august recess so they can get down to business. but as i said before, get up at 12:00, start to work at 1:00. hour for lunch. and then they are done. lauren: in the letter five imperatives to get done, health care, tags reform, you name it. reporter: keep in mind you can
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not do a 2018 budget resolution and still do health care. the minute they adopt the 2018 budget resolution, simple 51 majority for health care is out the window. lauren: adam, have a beautiful weekend. reporter: you too. lauren: you guys heard adam. there will probably not be any major break through on the senate bill. they go on the july 4th recess. check out the calendar, july 11th. entire month of august. here is the concern, can the gop end the year without one single legislative victory? joining me liberal political analyst, ellis henican, republican strategist and author of "gog, gps" evan sigfried. good to see you. you heard adam's report. you will laugh if i say we can see a victory on health care today. so when can we see it? can we see one? >> in terms of a victory it will
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not come in the form of bcra. this bill is toxic. it has 18% approval rating around the country as poll from quinnipiac said on tuesday. what we need to do incorporate many different things that will hp and repair obamacare. let's be honest in 2016 only 7% of the counties in the united states had either one or no insurers people could get to. in 2017 it is 33%. obamacare is absolutely broken. the bcra doesn't go anywhere addressing that. we need heavy medicare, medicaid reform. medicaid rebill bursts 61 cents on the dollar compared to medicare. if we don't do, incorporate principles the president himself campaigned upon, removal of state lines, allowing small businesses, individuals to group together to buy coverage to make it more affordable this bill doesn't have it. lauren: ellis, do you think that the senators would just vote on he repealing obamacare first,
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then dealing with whatever time gap they have in replacing later? is that doable? >> you're talking about the trust us, strategy. lauren: trust us. >> later we'll come back. this is the party, by the way for the last eight years has been unable to come up with a plan. they were held hostage by mitch mcconnell for weeks couldn't come up with a plan. they still don't have a plan. forget about democrats, actually living, breathing voters. you think moderate republicans yeah, take health care away from tens of millions of americans, promise them later. no way, lauren. lauren: go back, evan to town halls. go back to recess, constituents willing angry. does that pet pressure on republicans to get something done? >> it does. people talk about health care, people feel it tangibly anything related to their health care being messed with. on something like tax reform, democrats would have no real opposition own their token given
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to rich crony corporate capital overlords but we would be able to pass this. why we should have done it first. given us momentum into health care to allow us, trust us, we do know what we're doing. lauren: is the president holding senate hostage, mcconnell is? >> most republicans would wish he would do less. shut up. he doesn't understand the bill, right? he doesn't have relationships with people, the swing voters. he tweets and says stuff that makes it all complicated. lauren: he got on the phone a lot, to put pressure. >> do you think it helped a lot? lauren: unfortunately at this point it doesn't seem like it has. what do you think about that? >> i think ellis hits on something. we need democrats need to show up. 65% believe a bipartisan grand compromise should be forged. no democrat says come to you, mitch mcconnell want to be there. >> as soon as you're willing to have a conversation how will we fix the problem.
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>> democrats on capitol hill, fcc and dccc who manage campaign arms are hoping this passes because they think they will use it as albatross around our neck. they want it to pass at expense of american people. why would democrats do that. lauren: we've been talking about it, why do it for ages. stay with us. don't go far. we'll see you in a bit. meanwhile another big story, president trump speaking alongside south korean president moon. he will renegotiate a trade deal with the country to reduce the trade deficit with them. the two leaders are on opposing side how to deal with north korea's nuclear threat. south korea's new president wants outreach to the north, while the white house is pushing for a much harder line. listen. >> together we are facing the threat of the reckless and brutal regime in north korea. the nuclear an ballistic missile programs of that team require a determined response. the north korean dictatorship
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has no regard for the safety and security of its people, or its neighbors, and has no respect for human life. lauren: today's talks come a day after the u.s. blacklisted a small chinese bank accused of illegal dealings with north korea. let's go to blake burman live at the white house with the latest. hi, blake. reporter: lauren, there was lots of tough talk from president trump on this day. a menace that has know respect for human life a brutal regime, a country that starves its own citizens, that those are many so of the ways president describes north korea as he was standing in rose garden next to the south korean president earlier today as both of them made joint statements. president trump vowed to try to go after north korea and to curtail their nuclear weapons program. neil: the united states calls on other regional powers and all responsible nations to join us
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in implementing sanctions and demanding that the north korean regime choose a better path and do it quickly. reporter: trade was also a major part of those discussions. last year the u.s. had a nearly 28 billion-dollar trade deficit with south korea and today president trump called for what he said would be a level playing field n a bilateral meeting before that rose garden joint statement, top administration officials also singled out china, with gary cohn asking the south koreans this question right here. listen. >> we're dealing with all their policies. at some point we would be interested to hear how you're dealing with chinese policies and how you could help us dealing with chinese policies. reporter: lauren, as you mentioned, yesterday the treasury department announced sanctions targeting certain chinese individuals and a bank there they say acts as a gateway for north korea. by the way back here at the white house for a second, president trump was invited by the south korean president to go
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over to south korea at some point this year. apparently president trump accepted that invitation. lauren: look at that blake burman, thank you. what can the united states do about north korea without damaging relations with china, particularly? joining me now former foreign policy advisor to president george w. bush, paul bonn chilly. good to see you. >> hi, lauren. lauren: can u.s. and south korea find common ground dealing with north korea? >> absolutely. it sounded like it today. for a president his critics say he doesn't know where he wants to go, doesn't know what he wants to do, and doesn't get the strategy of diplomacy showed that every time a foreign leader comes. it was a love-fest today. the south korean president was not some he could be warm with, because he is on the left in his country. they would really not get along very well. i heard equally determined presidents to do whatever it took to fix the north korean problem.
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i saw president trump speak specifically about trade in a way quite blunt but not rude. the south korean president doesn't have any response to that that was negative. in his own quiet talks with our house of representatives was just as tough as donald trump about what we have to do with north korea. i think they're off to a very good start. if i were the chinese government i would be worried alliances are coming together around president trump. lauren: but president trump played nice with the chinese president when he came to visit him in florida a couple months ago. trump said i want to use a carrot instead of a stick in dealing with china, yet the administration showing the patience is over. they blacklist ad chinese bank for doing business with the north. is that -- >> i think the president gave the chinese president an opportunity. the chinese president didn't he believe the united states was changing under president trump. i think he gets that now. i don't think president trump will abandon all efforts to work with the chinese. this is a negotiating tactic to bring people along.
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sometimes you have to take three steps forward, two steps back. you keep on going until you bring them along and i think it is important to know that for the south korean president to be strongly with president trump it makes the chinese come along. lauren: i want to talk to but the trade deficit the u.s. has with south korea. >> sure. lauren: the administration's goal is to put america first, not to abandon these -- >> is that a question foreme? lauren: the question is coming, but abandon trade deals that don't make sense for america, don't put us first. how do you think they can fix the deal with south korea? your boss at the time signed back in 2007? >> lauren, i'm not hearing you. lauren: i want to talk about trade relations. can you hear me now? trade relations with south korea? >> yes i can. lauren: how do we improve them? >> i think we improve them being honest and straightforward. that is what the president does. if you notice the president's language, around the cabinet
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table, in the press conference, sitting in oval office where reporters were tearing up furniture because they were climbing up all over one another, the president was blunt and transparent. not in a rude way, expressing american interests. i think other foreign leaders appreciate that. they know what they're getting. they know there will not be last minute appeal to international organizations or some consensus. the president knows his mine on and is ready to make deals including compromise. it will not just be our way or the highway. he will be clear about it. i think that is why the south korean president responded the way he did i. he appreciates it. lauren: "the art of the deal." paul, have a good weekend. today is the deadline for illinois to finally put an end to its budget crisis. the state owes billions of dollars, has massive pension obligations and on the verge of having its credit rating cut to junk. since it can't declare bankruptcy, what will it figure
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out and what will that something be? all eyes on what illinois lawmakers come up in the final few hours. jeff flock in chicago with the intel next. these days families want to be connected 24/7.
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and a new culture built around customer service. it all adds up to our most reliable network ever. one that keeps you connected to what matters most. lauren: the state of illinois is about to become the first state to have a junk credit rating. today is the last day to pass a budget package before the credit rating is downgraded. if that happens, illinois, fifth largest u.s. state. its financial problems are only just beginning. we're hearing that negotiations will continue into the weekend, meaning they missed the deadline tonight. jeff flock in chicago for us. hi, jeff. reporter: it's bad but it could be worse. lauren, they tried to send a message to the ratings agencies with a short time ago with
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illinois house passing an actual budget, one that could be a balanced budget. 36-dollar budget, 2 billion in cuts but relies on 5 billion-dollar tax increase. that is what the democrats want for this. republicans say they will two along with tax increase but must get freeze on property taxes. illinois has second highest property tax rate. they want reforms to workers' compensation in illinois, which republicans say is being abused. they want to reform that that doesn't happen. reform of the state's pension plans. here is the problem. if we get past the deadline, hopefully, the bond rating doesn't go immediately down but here is what does begin to happen. one, road projects. there is no money for them after midnight tonight, so they stop. schools won't have funding, so they could shut down. colleges and universities in the university system in illinois
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may start to lose accreditation because of the problem. lottery, powerball and megamillions, illinois will zoos to be part of that because they don't have the money. downgrade potential on the bonds. it is a bad scene but right now they're trying to send a message, we're starting to work together. we think we can work this out if we go into tomorrow. i leave you with a tweet from one illinois resident. it says, please, please, please, pass the budget today. look to your constituents who are pleading with you. at this point, that is about all they can do is plead. both sides have been pretty intransigent up until you now, lauren. we'll see what happens. lauren: that is a pretty bleak picture. jeff flock, thank you. bring in "washington examiner" editorial director to talk about this. hugo, this isn't just an illinois problem right now. the united states has 16 states which have yet to pass a budget
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for 2018. what is going on here? what are the big reasons for this? >> the thing to remember these 11th hour negotiations come after decades and decades of democratic politicians mismanagement of enormous number of states and municipalities. there are as much as $4 trillion, $4 trillion of unfunded liabilities that have been built up by politicians basically bribing voters with their own money, pushing, kicking the tax liability on to the next generation. you know there is, one of the experts described these places as playing chicken with their budgets and now the chickens are coming home to roost. this is a really serious problem and the problems and the pain are only just beginning. lauren: illinois knew about this, at least the unyou funded pension problem as recall as 1995. you kick the can down the road, nothing gets done, you reach a point, jeff flock bringing news,
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they did pass a budget. part of it includes a 5 billion-dollars tax increase. >> right. lauren: you can't keep increase taxes, guess what? residents and businesses flee. not just illinois but states like connecticut too. >> this is where real pain, there is pain now. but the pain is going to increase. you raise the taxes and for a short while that helps you. you cover immediate short fall. then families move somewhere where they don't have to pay such high taxes or businesses, why don't i go to a place where there are no business taxes? these short-term improvements or short term bandaids cover the problem, actually make the problem worse in the long term. you know, sometimes there are cures to diseases buts sometimes there is no cure. the patient dies. lauren: oh, boy. you guys are depressing me on this 4th of july weekend. hopefully they get something done over the weekend.
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good to see you. >> good to see you. get a check on your money right now. dow jones industrial average is up 90 points. it could be positive on the week. nasdaq higher today by 12 points. it is a big day, end of the week, the month, second quarter, and first half of 2017 already. full market coverage up next. stay with us. we're back in two.
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lauren: stocks trading higher as wall street looks to close out the quarter in the green. right now the dow, s&p 500, both on track to finish up more than 7% for the first half of the year. joining me now is bonson group founder, david bonson. >> good to be here. lauren: what takes us into the second half of the year? do stocks keep floating higher? >> you don't want to bet against them, there is built-up potential, fiscal stimulus, tax reform.
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we don't know how much of that is priced in. smarter play, risk/reward is selective. take areas underperformed first half of the year. definitely time to lighten up on fang and some other high multiple growth tech stocks. we think financials and energy are the place to be in the second half of the year. lauren: financials and energy have done extraordinarilily well this week. >> they sure have. lauren: we're seeing somewhat of a reversal. how do you feel about tech? tech strong, seven months of gains in a row, not so much this month number eight. will tech be weak in the second half? >> we divide into two sectors, old tech versus new tech. free, high quality cash flow tech, cisco versus new tech. we think there is great growth out of facebooks and amazons, so forth, it is so priced in. on risk/reward basis it looks unattractive. like you said it had incredible run. if we want to be in technology, we have stuff that makes it run.
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lauren: broad picture. report on consumer spending today. inflation, where is it? prices are cheaper at a store, no matter what store you go to. we're not opening wallets wider. we talk about overall growth, gdp, 1.4%. seems like that we're stalled. consumers are not contributing. how do we get to 3%? >> gdp growth at 3% will not largely be consumer driven. it will be business investment driven. deregulation and government sector will alleviate crowding out taking place. taking place since the beginning of the obama administration. right now we have the opportunity for the private sector to make up that gap, have less interference from government and see more robust pro-growth around tax reform, deregulation, things of that nature. we know politically things seem stalled. there is a still a lot of volatility come around that. that is the path to 3% plus real gdp growth. and consumer, everyone to talk about it, but it has not been
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the needle mover since the financial crisis of the consumer is smarter than they were. we don't want the consumer spending recklessly. lauren: reckless -- you want consumer spending. we talk about the death of the shopping mall all the time and retail stocks under pressure, trying to change themselves because of >> the retail shopping is not about the death of consumer, it is about changing habits. that to me is different story. ultimately consumer shopping but not kicking up gdp numbers. lauren: you mentioned energy flat-lining, and bear market in oil, decline of 20%. they have come up this week. we're trading 44, $45 a barrel. drillers can't profit at oil prices much lower than that, can they? >> not much lower. they can at 45. this is the whole story. the u.s. shale industry is becoming the marginal producer. it is incredible paradigm shift
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in the global energy story. i think they can make money at 38 to 42 but not a lot. they used to be able, they used to not be able to make money below 60. innovation, technology, has increased profitability spectrum that much. i still believe 50ish is better number for oil complex than 45. ultimately what we know as shale producers are kind of calling the shots. saudi arabia is getting ready for the largest ipo in history. they have all the motivation out of opec in the world to see supply get under control, production get under control, and see prices move into the 50s. lauren: i want to bring in nicole petallides. she is down on the floor of the new york stock exchange as she is is watching markets, talking to traders. what is the sentiment down there, nicole? we have a holiday weekend upon us. markets close on the fourth. how is volume? what is the sentiment? >> what is interesting, we're coming back.
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going closer to session highs. end of the quarter. anybody with crash on the sidelines, those portfolio managers they want to position and really show they have owned some of the great, great stocks of the year 2017 and latest quarter for today. the action right now, the dow jones industrial average up 100 points. you can see all up arrows across the board. we're seeing some industrials and cyclicals doing well. names this year that have done so well, boeing, mcdonald's and apple. overall here there is really some back and forth action. i know somewhat of a seesaw market. optimism is there for long term. still thinking we heard from steve mnuchin yesterday the idea the tax plan will happen. so everybody is still holding on here for the long term. lauren: all right, nicole, thank you. david, thank you. good to see both of you. coming up president trump today meeting with the president of south korea about major threats from north korea.
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meanwhile two major immigration initiatives he has spearheaded they passed in the house. the so-called travel ban went into effect smoothly and successfully last night. i don't think you haven't heard much of this, well, since the mainstream media is obsessed with president trump's twitter account, his tweets certainly distracting from his pro-growth agenda. so we asked, is it time that he stopped tweeting? that's next.
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lauren: two huge wins for president trump es america first agenda. partial travel order going into effect overnight. the house yesterday passing two immigration bills keeping dangerous illegal immigrant out of this country. but the network news, they barely covered those stories. look at this, on abc, cbs, no mention whatsoever of the immigration bills. less than 30 seconds for the travel ban. you know what they call offered. president trump's twitter account. nbc spending three minutes on those tweets. abc over three minutes. cbs, two 1/2 minutes the question are these tweets distracting from president trump's pro-growth agenda? joining me now, media reporter joe concha. >> lauren, first time you and me. lauren: our first time. so the president's mind is in
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the right place but his fingers are not. what should he do with his twitter account? should he stop tweets like this all together? >> always comes extreme argument, should he stop tweeting or continuing tweeting. there is middle ground. 71% of americans think he should stop all together. if you look at tweets taken president, the cons outweighed the pros. with comey he ended up getting special counsel as result of tweets and threats. the problem with mika brzezinski, he could have criticized her. remember what that show does on daily basis. i cover it. lauren: they criticize him. >> i don't mind criticism on policy, strategy, messaging. they make it personal and childish, like sixth grade childish. they called him demented. questioned his mental state. joe scarborough couple weeks ago said he looked like a kid who pooped in his pants. enjoy your lunch. this is no longer political analysis. this is personal.
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it was building to a crescendo, he felt he had to fire back. start going to facelifts and blood. he could have criticized them without going to that, dream. lauren: he did have the upper hand, let's face it, because just prior that cnn had issue with the russia story, three journalists resign. trump going after the media. well it seems like he won at that point. >> he had momentum. remember cnn had two big retract shuns on stories they found on one named source. lauren: is the media baiting the president. >> baiting? >> every day. >> "morning joe," they have been begging for reaction. they were ostracized as hampton circuit. they were seen too friendly. they tripled down back in the club. they're back in the club, playing victims. they're hardly victims here. trump is wrong here. there is instance where you have all three people wrong in the situation. this is it. i say for donald trump. be like i was, when i was unattached, i was single,
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2:00 in the morning, maybe tweeting while impaired that way, stair at the screen. lauren: twi, tweeting while impaired. >> that is new acronym. i used to stare at screen what is worst-case scenario. show it to somebody, what do you think will happen from this. lauren: or fight back, by passing legislation. that is what everybody wants. joe. >> it did go well me and you first time. lauren: look at that don't twi me later. president trump and house republicans crack down on illegal immigration as well as sanctuary cities, supporters of those cities say they're necessary because they make us safer since illegal immigrants aren't afraid to report crimes. but what this is just a myth? we have intel on this coming up. yes. so let me ask you this... how does diabetes affect your heart? it doesn't, does it? actually, it does. type 2 diabetes can make you twice as likely to die from a cardiovascular event,
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>> the house approving two bills cracking down on illegal
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immigration a key priority for president trump. here is the first measure, named "kate's law" named after a young woman killed by an illegal immigrant deported five times. that law stiffens punishment for people who reenter the united states legally. the other strips federal dollars from sanctuary cities, as former cops in phoenix, arizona, they say their city got safer when it stopped being a sanctuary city. bring in fox news's william la jeunesse. hi, william. reporter: lauren at the core of the debate is a simple question. are sanctuary cities actually safer? politicians and law enforcement in places like los angeles and san francisco, some of these other large cities insist they argue if no one fears being deported, they will report more crime. police will catch more criminals and everyone will be safer. >> we depend on our communities, particularly our immigrant communities to cooperate with
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us, not only to keep them safe, but to keep all of you safe. reporter: so, you know, but some studies do not support that. analysis by uc-riverside found violent crime is slightly higher in sanctuary cities, but concluded on balance there is no statistically discernible difference in violent crime, rape and property crime. many street cops and sheriffs oppose sanctuary policies. phoenix is sanctuary city but ended that in 2008. police say when given discretion to ask about a suspect's legal status, cooperate with i.c.e., the crime rate fell. >> when we eliminated our sanctuary city policy back in about 2008, we saw crime, at least violent crime and stolen vehicles drop by 20, 25%. we saw 20-year low crime rate. >> most assuredly we saw a decrease. what happens, folks felt less comfortable because the risk of apprehension would go up?
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reporter: 30% of illegal aliens committed new crimes after release, four times higher suggested by i.c.e. the bill must pass the senate obviously. sanctuary city supporters are not backing down politically or in court. back to you. lauren: thank you for that, william. we'll bring you guys this outrageous story right now. a man in from el salvador in the united states illegally, he sued the city of san francisco, which is a sanctuary city after police turned him over to immigration authorities there. he was taken into custody after going to a police station when his stolen car had been found. well, now he is set to be awarded $190,000 after a settlement was reached saying the police violated the city sanctuary law. ellis henican and evan siegfried back with us. the reason the police reported him was they ran his name through the system.
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they found a warrant for his arrest. so ellis, is this not the police working to keep us safe? >> no, no. there is reason that the top law enforcement officials across america want sanctuary cities. this guy is like a poster-child for sanctuary cities. he is a crime victim, lawrence. someone stole his car. he goes to the police station. as we want him to retrieve his car and interact with the police. they nokia around violating local laws of community. lauren: there were warrants for his arrest. >> violating local laws of his community. toss the victim in jail? this is terrible case. find a better example. not this guy. lauren: richard, your thoughts. >> i would love to get a deal like he got. ellis you're arguing that by being an illegal immigrant it is not criminal. if you wanted to say, why don't you call rapists undocumented sexual partners? what you're going out -- >> simply mistake. >> you're saying you can pick and choose --
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>> crime victim. >> he is crime victim, not a rapist. >> he is in the country illegally? >> 11 million people. to fill you in on how the left narrative, excuse me, let me finish. >> go ahead. >> two books ago muslim woman, 17, she was murdered by an illegal immigrant from el salvador because he had a fit of road rage. there was detainer from i.c.e. against him. under these sanctuary city laws, this guy would have been not touched and she would have been still been alive had he been deported. what we're seeing left, when they first heard about it muslim woman, has to be donald trump fan who did this in fit of rage. second they found out it was illegal immigrant. complete silent. wouldn't talk about the fact it is a tragedy. >> there is no city in america, despite the passionate argument that allows people to commit murder without them being arrested. let's put that aside. >> what we're talking about criminal illegal actions. >> there is reason that we want to have good relations with people in our community.
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there are 11 million people, 12 million people here in our country illegally. we don't want to deport them all don't want arrest them. lauren: we want bad ones out. >> absolutely. anecdote is not science. truth of matter are less likely than american citizens to commit crimes. not more likely. less likely. >> ellis, why are democrats actually creating a new york city in office to take care of criminal immigrants? new york city has created a an office that will provide legal representation to criminal illegal immigrants. >> we have lowest crime in history. >> we're spending money on that, not on homeless on streets. not fighting opioid epidemic on staten island. what is your priority, illegals or new yorkers. >> whatever new york city is doing, everybody should. we have lowest crime in history in this country right now, to argue -- >> we have more homeless on streets. quality of life has decreased. >> to claim there is a, there is
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a crime wave because of illegal aliens is simply. >> ellis i want whatever you're smoking you're living on another planet. lauren: put cigarettes out. this is another good one. state of maine last november voted to raise minimum wage for restaurant workers there. sounded like great news for rate waiters an waitresses. no. this month the state voted to scrap the law and lower the minimum wage, and guess what, restaurant workers were thrilled. we'll explain this crazy story. it makes sense though. ♪ art. it can be sculpted, bringing to life beautiful detail. or painted in luxurious strokes. and in rare cases... both.
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lauren: talk about unintended consequences, last november, unpressuring share from labor activists the state of maine
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hiked the minimum wage. less than a year later, the state lowered minimum wage for tipped workers, many restaurant workers are thrilled about it. because the wage hike didn't translate to higher wages. what is going on here? "washington examioner" is with me right now. hugo hi, there. >> extraordinary story, but in some ways it should be predictable. when the government gets involved telling people what their wages are worth or work is worth, unintended consequences are pretty lengthy. lauren: you have fight for 15 movement, to get $15 minimum wage across cities and states throughout the nation. maine gets higher wages, then some workers say, whoa, pay us less. their thinking is, okay, we're either going to see our shifts cut back or lost, hours cut, or the customers will be annoyed because menu prices go up, because face it restaurant pays workers more, prices go up and they will not tip. >> exactly.
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all over the country, in all sorts of different tests it has been pretty much shown conclusively if you pretend that the price of an hour's work is 10 bucks, when in fact it is only eight, let's say, employers are going to be giving less work, fewer hours, et cetera. so the wages of people this is supposed to benefit don't go up. the maine case was sort of different because there was a lower minimum wage because it was assumed that the staff, the waiting staff would get money made up in tips, indeed make more than the minimum wage because of those tips. and they were just really worried they would lose it. indeed they started seeing customers assuming that their wages already gone up, and not tipping. so beneficiaries or supposed beneficiaries were actually people who suffered. lauren: so in maine they do it two-ways. there is one rule for tipped workers and untipped workers. do you think untipped workers in any city or state across the
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nation who has higher minimum wage will say wait, hold on, you started paying me more money, now i am losing something as a result? >> yeah, i'm sure there will be people who complain and i'm sure that unions want to see minimum wage, democratic party, want to see minimum wages pushed higher will complain like fury, but, you know, politicians do not have some kind of magic dust they can sprinkle on employment area, and magically raises the value of the work. and there is a principle involved here if somebody says they wan a job for seven bucks an hour, and somebody says, okay, i will employ you for $7 an hour, why is it anybody else's business? it is government getting in the way of freedom of contract. they just should get out of way, let people decide things for themselves. lauren: let capitalism work. >> exactly. lauren: good to see you. we'll be right back.
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>> vinyl is making a major come back. sony music says it's going to produce vinyl records next year after a almost three decade hiatus. the industry seeing big demand for vinyl music. records, hey, if you're young, they're a novelty. if you're a little bit older, they're retroand, liz claman, how do you feel about producing music on vinyl. do you remember those days? liz: of course. of course. remember don mcclain's american pie where he had the thumb and the american flag, and i say that because we're heading into of course the big american holiday. july 4th. lauren, make it a good one. >> you as well. liz: on this final hour on this last day of the stock pick the final run for the quarter. folks, when you see the dow up 108, anything up above 107 means that the dow will turn positive for the week. trying to lock in gains after yesterday's triple digit sell off of the dow. mostly a down week for the s&p and the nasdaq. but you can't argue with the bigger picture.


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