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tv   Cavuto Coast to Coast  FOX Business  August 15, 2017 12:00pm-2:00pm EDT

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did. stuart: include infrastructure. let that slide? all you want big tax cut? >> big tax cut makes subsequently big infrastructure bill. be prepared this fall make an address to the nation to make the tax bill through. go around congress. don't play their games. stuart: maria sitting in for neil. great interview with mr. shkreli. you did a great job. >> thanks, stu. we're live on "coast to coast." i'm maria bartiromo in for neil cavuto this afternoon. north korea blinking at least for now. kim jong-un holding back on planned attack on guam after defense secretary james mattis said an attack from north korea would mean game on of the is this tough talk working for the president. joining me former national security advisor for dick cheney, john hannah and rebecca heinrichs. thanks for joining us. >> good to be here.
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>> is this tough talk working? we see kim jong-un is backing down? china said they would step up. china would suffer most because of sanctions. china is north korea's major trade partner. with the minerals, and seafood and coal, all of these things we're sanctioning china will take the hit this is china's problem. china is the reason that north korea has been able to continue its missile program thus far. so all of these things are good. all of these things are working. but it is only temporary. doesn't solve the problem but helps to de-escalate the tensions. maria: great point you make.
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join, for a while i was thinking should we give up on china. they haven't done much. thoughts on president trump's language and response to the north korean threat? >> thanks, maria. when it comes to kim jong-un you hesitate to say anything is really working because nothing has worked in the past, at least not for long. we may be patting ourselves on the back today but tomorrow, next week, next month there will be new provocation. it may not be firing against guam. it could be another nuclear test or killing south korean soldiers or killing another american hostage like they did to poor otto warmbier. you have to say with greater confidence with president heating up the rhetoric it is not not working. all the experts who told us last week exactly a week ago, that the president's fire and fury statements were going to back kim jong-un into a corner.
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they would cause him to start a suicidal nuclear war. those people have been proven precisely wrong, at least for the moment. maria: so, you could say, sure, this maniac is unknown. we don't know what he is going to do. he may back off today, go back tomorrow with his provocations but the bottom line president trump was very clear. he said it umpteen times in the last week f north korea does anything to the united states, they're going to have major problems. he was tough right out of the gate. so the question is, did he handle this well so far? >> i think he did. i think the president, with his national security team, has done a wonderful job. again the president's remarks were meant to actually just bolster the credibility of these threats from the united states. president obama made very generic threats saying things like all options on the table with north korea. saying things like our military could beat your military.
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and so these things are generic statements. president trump is believable. he is believable. whenever he says that it will be met with fire and fury if you threaten the united states, think about the moab that the united states dropped on isis in afghanistan or 59 tomahawk missiles we dropped on assad forces for using chemical weapons. the president is willing to back up threats with action. that does have effect with the psychological aspect, whenever you're dealing with leaders like kim jong-un in north korea. maria: john, in his first public appearance in two weeks, the head of north korea, kill jong unsaid he inspected the command of the north's army. he did this on monday. he inspect ad plan to fire four missiles near the u.s. pacific territory of guam. if the yankees persist in reckless actions on korean peninsula, testing and self-restraint ever the company the latter will make a important decision as he already declared. he is backpedaling out of here.
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he backpedaling. >> that's right. maria: thank god. >> he is looking for a way out. i would stress a week ago none of the so-called experts on north korea would predict very first words we would hear out of kim jong-un's mouth in response to the president's escalated rhetoric would be, instructing his military to actually stand down from their missile threats against guam. now the real test i think, we've got to wait a week before we're too self-congratulatory. when the u.s. and south korea hold very large annual scheduled military exercises. they have always driven the north koreans nuts in the past. they have always been used as an excuse for things like new missile tests. if in fact all we get out of kim next week is more heated rhetoric but no new military provocations, then i think we'll be in a position to say with some greater degree of confidence that the trump administration strategy is beginning to get some traction,
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not just with the north koreans but more importantly perhaps with the chinese as well. maria: right. so let's talk about the neighborhood if you will. what do you want to see, rebecca out of japan? should we expect anything there? the china story is ongoing, i recognize that, but i wonder if there is more to be done out of china? as john just mentioned, south korea the president there saying seoul would seek to prevent war by all means, even asking the u.s. to back off. >> well that is not the only thing that the president of seoul, south korea said regarding the subject. he had a phone call with the president. he was very pleased with the president's tough talk, the way the president is handling the situation. he is president of his own country. he has to demonstrate he is leader of his own country. looks like south korea is deferring to american leadership on this problem in general which i think is a wise decision. with japan, japan came out very strong, strong support of american leadership handling the north korea problem.
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we collaborate with the japanese on military operations, on missile defense systems. we need to continue doing that. we see a squeeze coming out of the neighborhood on north korea. china piece is difficult to overstate how important this is. maria: right. >> fact that president trump to get the chinese to say they will enforce the sanctions, sanctions are only a small part, if china can work with the united states to squeeze pongyang. this is not a crazy man in pongyang. this is a man who is cruel and inhumane but he understands he wants to stay alive. he wants to keep his regime alive. if he understand that is at risk, he will start behaving more responsibly. maria: i'm glad you said that. it is not crazy. it is cruel. it is killer. it is thug. we'll leave it there, thank you very much for weighing in. north korea is not only one backing off. south korea accused of waivering as it offers an olive branch to its neighbor in the north, not warning north korea without south korea's permission.
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to alabama republican senator luther strange. good to see you. it's a big day for you. you have a big primary. i want to get into that in a moment. let me ask you about north korea. is there a diplomatic way out of this? >> i certainly hope so, maria. that is what we hope for. i'm glad to see the president's tough talk. we're seeing the effect of that. i love our commander-in-chief. i love mattis' response i think we're seeing that response. the diplomatic approach is of course what we're always hoping for. maria: the president has supported you. i will move on to your primary. he did robocalls. this is president donald trump, support luther strange, he did commercials for you. how are you feeling on primary day? >> i feel great. end of a long campaign but having the president's unqualified endorsement, willingness to make phone calls for me. i talked to him on the phone last night, he was very encouraging, he wants somebody up there to get something done, conservative common sense
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solutions to real world problems. i have enjoyed working closely with him. i hope voters send me back up there to do that as we try to get something actually done in washington. maria: so you are vying for jeff session' old seat there in alabama. what do you plan to do? tell me what your positions are, and why you're the man for the job since you have two other competitors right in our own party? >> right. well, these seats only come open about every 15 or 20 years in alabama so it is very competitive and that is the way it should be. my reputation is built on getting things done. as attorney general, as you know we stopped illegal amnesty program of obama, protected the second amendment. stopped waters of the u.s. and clean power plant rule, disasterous policies. now we're on offense. getting to a vote for neil gorsuch is critical for this country. i want to see more conservative judges on the court. i want to see us get something done. i was shocked sitting in the
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senate, see us fail to pass obamacare repeal. people of alabama don't understand that. i don't understand that. neither does the president. i want us dealing with props that affect peoples' lives. one you talked about that is critically important is tax relief. we've got to do that i think we can do more than one thing at a time. my message to mitch mcconnell and my colleagues, work with the president and get these things done. maria: your rival, congressman mo brooks was on this program a few days ago. he said you're part of the problem. listen to this. >> pretty much like if the president truly wants to drain the swamp, don't go around endorsing the swamp's candidate but ultimately the president's decision. personally i believe he has gotten bad advice whoever is giving him advice what is going on in the state of alabama. maria: well there you go. are you swamp candidate, sir? >> i don't think so. i just met senator mcconnell a few months ago when i arrived in washington but congressman
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brooks i think a little bit desperate there. in really, i wouldn't underestimate the president's involvement in this campaign, his knowledge of the voters of alabama. i think that is why he has done something extraordinary endorsed my campaign. i prefer voters listen to the president. hopefully that will persuade them to vote for me today. maria: is there anything you can do to get people out to vote today in the next few hours? zoo i will on the phone myself personally. we have a lot of folks on the ground. we have endorsements like national rifle association, farmers federation, right to light groups. i'm afraid it will be light turnout. i urge all citizens to go out to exercise fantastic right in america. maria: senator, we'll watch the situation. thanks for joining us. >> thank you, maria. maria: senator luther strange. up next, ceo bolts from the white house manufacturing council over the president's charlottesville response. will they regret pulling out? that is next. shrugging off the threat,
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to resign from president trump's manufacturing council over his response to charlottesville this week. president trump tweeted this earlier. for every ceo who drops out of the manufacturing council i have many to take place. grandstanders should not have gone on. jobs. real estate investor sam zell was on earlier reacting on mornings with maria. what is your take three ceos stepping off of the manufacturing council? >> i think that probably too extreme a move. i think all these committees are ways of rewarding people by allowing them to be part of the president's committee. president doesn't need these committees. maria: right. >> president of the united states can get his opinion from anybody he wants to at any moment and does. maria: so is leave an empty seat at the table the right thing for these ceos to be doing? to "national review" editor rich
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lowery is here. turning point usa founder, charlie kirk. former congressman dennis kucinich is here. thanks for joining us. in terms of this group, this latest american manufacturing group, this is a non-profit. they say they support steel workers and manufacturing workers. charlie. >> this is stunning to me. if there is a president whos at least pledged to fight for those people it would be president trump. i don't really understand what the reason is for him stepping down. i mean the president came out yesterday and strongly deannounced these hate groups. i don't know what else they're asking for here. if he really had trouble with president trump, wouldn't right thing to do stay on council i will try to fight for the ideas i believe in, not just walk away from it? doesn't make a lot of sense. not right for the members. maria: you make a really good point because the truth is these executives are representing in this case, steelworkers, manufacturing workers in the case of public companies like under armour, like merck, you're representing shareholders.
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is it good to do that, take your seat off the table while you could have had a voice in terms of policy? is that good for shareholders? >> i agree with the guest on morning program. the councils are for show. all this is for show. i don't think it matters one way or the other whether the ceos are on the councils or not. they're not like parliaments. they're not decision-making bodies. as your earlier guest said, trump can call anyone he wants up all the time and get him on the phone. this is thing for corporate america now. i wouldn't be surprised if we see more. my advice to trump, shake it off and don't seem so wounded by it. maria: sounds like you agree it's a little grand standing? that is what he called it. >> i think whole ideas of councils are show and grand assistanting. to say i'm on a council, you know not as though any of these people are making policy. maria: dennis kucinich, your thoughts? >> welshes let's not look past bigger issue here. america must address the issues
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of violence in our society. we have to be focusing on healing our nation, find a path to uniting our nation. only way we do that is to have everyone involved. captains of industry, people in communities, everyone involved in a new discussion about a path to address issues of racial violence, domestic violence, spousal abuse, child abuse, violence in the school, gang violence, gun violence. maria: sure. >> look, america has problems here that need common sense, compassion, courage and we need ceos to be part of that discussion. also not just on a social side but on the economic side as well. maria: so, you're saying that was it a good move they stepped down or not? >> i think it is important for them to engage the president. they are his peers. maria: right. >> and if be it is important for them to share their concerns. if they have that kind of access, whatever the legitimacy
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of the council, they have access. and that access should be used to provide guidance for the president on the policies that these ceos have articulated they care about. we have a problem with violence in our society, but the way that you deal with it is to bring it forward, look at it, and come up with new policies, social and economic policies, that help heal the country. we're a long way from doing that. maria: that is what you said earlier, charlie. look, if you have a problem the way the president speaks in any way, tell him. that is why you're on the council. >> that's why you're on the council. get this straight, american manufacturing so appalled by what president trump did, walks away, doesn't want to voice the concerns or have venue to voice ideas to him. if you have a program stand up for it, look the president in your eye, i'm on your council, i represent x, y, z, steelworkers and manufacturers. don't walk away. doesn't make any sense.
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>> hate to be a wet blanket, the way to reach the president is not through his manufacturing council. i would hesitate to say dennis kucinich had more direct voice to the president than the anyone on manufacturing council making a point. i don't think manufacturing council is a big deal. >> don't care. you think it is bs you think? >> i don't want to dismiss, i don't want to dismiss the power of ceos to be able to have their companies be agents for benefit of the company and benefits of the world on social and economic matters. so i would like to see a broader involvement. >> put you on the council dennis. >> maybe there are enough empty chairs we get you on manufacturing council. maria: in terms of manufacturing in general, what are the most important things the president should be thinking about right now? put the charlottesville comments aside, talk about manufacturing. this is the council they're stepping down. what do you see about manufacturing policy? >> biggest thing society embraces people don't go to four
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year colleges and technical schools. the president is taking courageous step towards that. he visited wisconsin with governor the wisconsin, scott walker who has done a great job training 19 and 20-year-olds into high-skilled positions. president is taking unprecedented steps for manufacturing and jobs that have gone away. not all the jobs will come back. it doesn't have to be depleted as they have been last 20 years. we as free market capitalists need a workforce as important component of that. maria: congressman, let me ask you a question what needs to be done to move the needle on economic growth and jobs in terms of manufacturing? >> we should have long ago canceled nafta and renegotiated china trade. we need policies which benefit america on trade, on manufacturing, and on rebuilding our infrastructure but preserving it in the public domain. so i think there is a still a big conversation that you know is involved in this administration and i would like to see the ceo's become,
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maintain their role in being part of it. maria: no commentary on any of that, rich. >> as well as labor. maria: this is the manufacturing council. no comment on what the president is doing in terms of policy. >> yeah. i don't think this agenda will be affected one way or another. i agree wholeheartedly with charlie, honor everyone working in the country whether sitting behind a desk or working their hands. we need deregular rage, corporate tax reform and cheap energy. that helps manufacturing. >> and raise wages. >> that is quandary we're in. economy is getting better and wages haven't moved. how do you get wages up? >> something president trump should recommend, get rid of fica tax for people earning $60,000 a year. instead of mandating higher minimum wage, keep more money in your pocket. working man's tax cut. that could invigorate eastern ohio, western pennsylvania, places working every day and
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seeing a paycheck go to government they don't -- >> good match with corporate tax reform. >> populist tax reform. maria: who is the heck is this guy fica and why is he taking my money. >> i hear that all the time. maria: president trump says when he gets hit he wit hit back. he hit the ceo of merck after ken frazier announced he was stepping down. now that ken frazier resigned from president's manufacturing council he will have time to lower rip-off drug prices. merck is leader in higher and higher drug prices while at the same time taking jobs out of the u.s. and not bringing jobs back and lower prices. is this something that the two discussed in past? what do you think, congressman? >> mr. frazier is in unique position as one of the top calf can americans in industry -- african-americans in the industry in the company. that is position ought to be respected and honored.
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at same time he is needed inside of the discussion. certainly drug prices are too high. we need a new health care program, in my opinion that would eliminate these problems of people having to split their pennys in order to pay for their prescription drugs. however, we've got to recognize the economic drivers there are in violence in our society. we need ceos to be part of that discussion. and if i could give the president any advice, it would be this. don't take everything personally. maria: yeah. it is fair point. he does. he gets criticized and he hits back. real quick before you guys go because i know you're looking at these issues a lot. do you think they will get tax reform done? do you think they will have another shot at health care before year-end? >> i don't think health care is totally dead. they're still talking about it. chance they can get to 50 in the senate. i don't think there will be big bang tax reform of entire code. i think there is substantial tax
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cut. maria: charlie. >> i agree with that. politically they have to get health care done. i don't see any of them keep their positions or legitimacy -- maria: we're still in the game? >> have to be. i don't know what they're doing with month. maria: in terms of legislative victories. we see about that. rich, charlie, congressman, great to see you all. stocks are flat, largely shrugging off north korean concerns. steve bannon is about to get bagged? the future of bannon in the white house. charlie gasparino is next. copd makes it hard to breathe.
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maria: welcome back. know co, no problem. markets still near record highs. north korea blinks on attack on guam. if fears of nuclear war do not cause a correction what could? we go to market watcher scott martin and jonathan hoenig. good to see you guys. thanks for joining us. >> thank you. maria: your take where we are
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right now, scott martin, after what, almost 20% rally since election day? >> it is pretty amazing, maria. we're at a point where markets are taking stock of the malaise or stalemate in d.c. as you talked a lot about in the previous segment there. that is where the problem i think lies ahead. i don't believe the next few months. my goodness if we get to the end of the year without health care reform, without tax reform, without infrastructure spending, the list goes on, you are looking at 2018 that will be very difficult from a market standpoint because all these promises basically fallen flat. maria: what about that, jonathan? what do you do in an environment where markets are running, waiting on policy coming out of washington? valuation as little higher than you would like even if some people think it is way too excessive at 18 times earnings? what is your take on markets? >> new high after new high, maria. as we talked about for month now, the real absence of fear in this marketplace. for me, to borrow a line from
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"game of thrones," i do think that winter is coming to this bull market. the warning signs for me isn't so much what is happening in washington but the breadth of the market, maria. two to one new 52-week lows today. two to one, three-month lows. not a lot of stocks doing well, especially the fangs, high-tech stocks which led the market higher. maria: the fang companies like facebook, googles of the world, amazon, are soaring. they racked up incredible gains the last few months. would you sell these names right here? >> i think that depends on one's individual position, maria, but i see weakness in so many stocks that were leading and stocks like energy, new lows across the board today. if the market will rally higher, what is going to bring it so? that is what i'm keeping an eye out for. maria: these stocks, you mention technology names, scott martin, i want to get your take on this, they have rolled over.
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look what happened to energy since the inauguration. look what happened to technology in the last couple weeks or so, after really leading this market higher since election day. your take on all of this, scott. >> well, maria, energy has been a dying dog for a couple years now. i'll tell you what, i think contrary to jonathan's point we're starting to see a little bit reemergence and financials and industrial areas which can take pressure off tech. look across the s&p 500, whether energy, consumer staples or consumer discretionary, you talk about stocks that need tax reform and tax breaks. think about trillions of dollars mind you in the tech sector sitting overseas because of preferential tax treatment they receive over there. if we get that reformed, repatriated you will see another up leg in this market. the problem doesn't appear we'll get the resolution. maria: you make a great point. >> can i build on that quickly, maria. the market soared on that immediately after the election i
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believe in anticipation scott pointed out tax reform as president promised. more that goes on investors might say it is time to take the money and run. maria: what about the fed? we heard obviously from dudley. he gave the u.s. dollar support overnight. the dollar is one of the issues for this market down year-to-date, but what about the federal reserve in general? one issue that sam zell brought up earlier on the morning show, was the fact that cost of capital is probably single most important thing you want to look at when investing in stocks, looking at economy. if the cost of capital is rock bottom, businesses are going to borrow. we'll see more borrowing. very larry you see interest rates moving up at same time stocks are moving up. are we higher interest rates and lower stocks prices, scott? >> i think that is a great thing, maria. interest rates have been so low. that will keep the music playing if you will on the bull market.
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janet yellen as lovely as she appears to be appearance and her dissemination of the policy, remember she is kind of on the chopping block here. hi, janet. she will potentially be removed in february, maria. you're looking possible completely different fed with respect to interest rate policy that could put another brake on stocks if borrowing costs rise. as sam zell said, that put as crimp on borrowing. maria: jonathan, do you think that impacts stocks if janet yellen is at fed, jonathan? >> i will go out on a limb be, i expect a credit shock during the trump administration. he is the king of debt. the debt market so manipulated better part of a decade. fed controls shortened. doesn't control the long end. if you see continuation of interest rates rising recent months, borrow a line from neil, it is katy-bar-the-door. maria: all fits into your scenario that we're perhaps
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entering into dicey times. thank you, gentlemen. the dow is up he have he seven . got to be a -- we have hbo leaks, a development you might have missed. martin shkreli not done fighting. the ex-pharma ceo sat down exclusively with me. he made breaking news. we want to bring it to you. stay with us.
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♪ maria: welcome back now to my fox business network exclusive with martin shkreli, his first interview since being found indicted for securities fraud. do you think you were targeted about the controversy before about you raising price of daraprim? >> in fact the sec really told me so.
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one senior person at sec, he left with a big law firm, he said if i kept my mouth shut this would not have happened. >> fact you were not charged with looting your former company. this is important, are they deciding if you have to forefit more money? that hasn't been decided yet? >> it hasn't. i don't think he will have to forfeit any money. i don't think i'm going to jail. maria: i don't think i'm going to jail he said. fox business network's diedra bolton. great to see you. welcome back. been a while. whole network you're thrilled to be back. >> i appreciate with my colleagues, at a job i love with supportive company. all of you have been so supportive, viewers as well, what happened, where have you been. long story short, i had a freak accident this summer playing baseball with my family. i sustained an injury that took a lot longer i anticipated to come back from. i am so happy to be here. i'm so happy to be back, doing the news, watching the news.
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i saw that fantastic tick interview, slowly saying he will not to to jail. basically he had a big mouth. his lawyer has to be very talented. out of curiosity i want to look at drug prices. you know this they have underperformed the s&p 500 year-to-date if you take a look on 12-month basis as well. since donald trump was elected, have actually outperformed. so a lot of analysts speaking with, obviously this is nod to the idea that maybe donald trump will in fact bring about reform to that industry. but i would say this, the drugmakers really do have a lot of pressures coming from both sides of the aisle. i know that you know senator schumer is calling for medicare to actually be able to get prices down, almost dictate prices. maria: like what hillary clinton wanted to do. >> even set up an entirely separate agency to even look at drug manufacturers. if prices go up too much, to put in punitive pricing. we know donald trump as well tweeting out you were talking
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about this morning, the president tweeting out as well against the merck ceo. okay, you're off my manufacturing council, you will have time to look at drug prices, perhaps bring them down. maria: more time to lower rip-off drug prices. >> very clear and direct. maria: one of the issues with shkreli said, yes, if i kept my mouth shut maybe i would not have been charged but these are two separate things. >> they are two separate things. maria: he definitely annoyed a lot of people. >> he certainly did. i mean you've been covering it, that 5000% increase on aids treatment drug. i think every big pharma ceo honestly must be ready to kill this guy, thinking, are you kidding me, you made me the lightning rod. when you sit down with ceos, they say these drugs cost a lot of money, research and development cost us a lot of money.
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our first bill costs us a billion dollars to develop. we have to pass that along someplace because we are a business. maria: exactly. now with the president tweeting back at ceo of mesh, time to lower prices, in the face of everybody, will we see government intervention? that is what chuck schumer wanted to dos awe reported. >> if you're an investor be mindful of health care group drug stocks already outperformed, wildly-performing s&p 500 since november. maria: we'll see what happens next. >> exactly. maria: deirdre, great to see you. thanks so much. h. deirdre bolton back in her seat where we want her. police in india arrested four people with the leak of "game of thrones" episode. tracee carrasco. tracee? reporter: break in the case of stolen material for the hbo but not in the massive data hack we followed last few weeks. police in mumbai have arrested
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four people in connection with a stolen "game of thrones" season 7 episode leaked online'd of the august 6 air date on hbo. according to reports in india, those four people are current or former employees of prime focus technologies, outside management vendor for hbo's paid tv distribution partner. they apparently had easy access to episodes of the show. they have been charged with criminal breach of trust and computer-related offenses. this is not related to the hack of hbo systems in late july where script of upcoming "game of thrones" episode was leaked online. most recently on sunday when episodes of the highly-anticipated return of curb your enthusiasm, those episodes also leaked ahead of its october debut date. maria, the standoff continues between hbo and unidentified hackers demanded millions of dollars to stop releasing stolen material. maria: tracee, incredible.
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tracee carrasco. up next steve bannon on the outs? charlie gasparino has new developments that could mean this time is different. tune into my program in the morning, with mornings with marie you. every weekday morning 6:00 a.m. to 9:00 a.m. we'll be right back with cavuto. en i have a real treat for you today. michael: awesome. potsch: i'm going to show you a next generation 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)
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>> i said he was. obviously he got caught on tape saying he was. i have no problem saying that. >> okay. will will he gone in a week. >> that is up it president. >> what does mooch think. >> if it was up to me would be gone but it is not up to me. maria: anthony scaramucci saying steve bannon would go. >> i would make editorial observation taking on steve bannon. you better be ready to fight, judo, karate, boxing, all at once. this guy remembers his enemies. the way i understand. anthony has a lost animosity towards bannon because bannon didn't want him in the job. then when he screwed up with the lizza interview, new yorker interview, bannon behind the scenes i understand was prodding him out.
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that said, this guy has a lot of lives. i'll tell you yesterday, we were first to report he was on the ropes, bannon was on the ropes, that it was, he could be out early as this week. trump is being advised by kelly, you name it, to get rid of him. see in the "new york times," following the story today. here is the one wrinkle "the times" missed that i will break right now. bannon is fighting back. what bannon is doing, supporters of his including the mercers, bob mercer, big republican donor, hedge fund executive billionaire, maybe others are going to be calling the white house today saying don't do it. i will say this, you know, i know steve pretty well. if you're going to blame steve for every alt-right statements coming out of trump's mouth or tweet, i mean this is the president of the united states who is an adult. steve bannon is not exactly goose-stepping in the white house, take it from me. i'll say that. the other thing i'll say is that, i covered that campaign
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pretty diligently. i remember at the end of that campaign what happened with the donald trump. he became incredibly focused, good candidate that won. maria: he did. >> that he outhustled hillary clinton. maria: had a better message. >> guess who honed that message? it was largely steve bannon. to some extent kellyanne conway. steve and kellyanne are the reasons why he is president. i don't care what anybody says. trump may think he did it all his own snapping his fingers but steve is it preaching populist coalition that helped him win for a long time. he focused him. if you get rid of him, you lose a big part of your base. you also made an incredible enemy who will be on the outside working at "breitbart." if you want to see how "breitbart" is now gearing up on trump, just go read some recent stories that they have about how if trump gets, paraphrasing, if donald trump gets rid of bannon,
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he is now aligned with the globalists. the elites and globalists, who are lot who are conservative by the way. maria: i think you make a good point about the base. i wonder if the president says to himself, look, i will upset a lot of people who put me here, the base, if i get rid of steve bannon. how much of that is going into it? not only steve bannon's performance, what he does, what he is always advising him, but that base would be upset with the president? >> it will be upset. it won't be just upset. the news organizations that base reads, the "breitbarts," you name it, some of these other outfits, are going to jump to his defense. now you know, the real question is, is steve bannon a liability long term? you know, listen, i covered this pretty tightly. i mean i don't know. i don't see him, anthony scaramucci flamed out in 10 days because of anthony scaramucci. it had nothing to do with steve bannon. i told you that he was going to flame out.
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i thought he would be better as treasury secretary or behind the scenes. literally would be better treasury secretary, communications chief, because that is not his skillset. not being his skillset, as a matter of fact, given his personality, that is type of job you could really flame out on. it is not steve bannon's fault he did this. the real question is steve bannon costing trump anything now? is he costing him legislative victories? i mean, i don't know. i mean, i can't tell you that. it is, kelly believes that. maria: where does kelly, where does kelly stand in all of this? i thought john kelly, new steve of chaff the guy you have to go through to get through the president. -- chief of staff. does steve bannon circumvent that, or goes through general kelly? >> theoretically general kelly. i hear kelly wants him out because he is distraction. doesn't need him. the generals, mcmaster, tightening the ship as they say. but the question they've is this.
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if you get rid of bannon who is pretty conservative, think about who you have around you if you're donald trump. you have mcmasters, a lot of people say is democrat. mattis is democrat. kelly, i'm not sure about his politics but he is not a conservative. gary cohn who is definitely not conservative, liberal. steve mnuchin, amorphous politically. maria: steve mnuchin would call himself a conservative but you're right, he did support obama. >> he is amorphous. i'm leaving out somebody. i can't -- maria: jared kushner. >> liberal. ivanka, liberal. i mean who is going to be the conservative in the administration? and -- maria: i don't see it, charlie. i think you're right. >> so, i think, i think if i was to guess what happens with bannon, just pure guess, he survives this because the guy has got nine lives. puts in another two months. make his self-imposed, it will be eight months, nine months, i've done my job i'm going.
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maria: oh, he said that. >> he said that in the past. maria: i did not know that. >> expected to be there a year, eight months. he goes. saves face. that is what happens here. maria: president would rather have it that way. >> everybody is peaceful. he doesn't have "breitbart" taking shots. i just read "breitbart," indication how the right will come out after him, populist right come after donald trump, read "breitbart" today. maria: i read it. i think "breitbart" does a good job. >> they do, they do. headline is top gop donors, allies of bannon are now mobilized. they're going to reach out to the president. and you will see the mercers, maybe more. if i get another name i come on the air tell you. >> thank you, charlie gasparino. john bolton is next. back in a minute. when you brush or floss you may have gum problems and could be on the journey to much worse. ur try parodontax toothpaste. ♪
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>> and we kick to work "cavuto: coast-to-coast." i maria bartiromo in today for neil cavuto. on top of a number of developing story is starting with korea. kim jong sub one back enough threats after defense secretary james mattis. >> if they fire at the united states, could escalate into war very quickly. that is called wart tissue that is it if they do that, it is game on. trying to north korea blinking
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for now, but will continue to pull back? ambassador, always a pleasure to meet you. your reaction in terms of where we are now. as the situation for us and ambassador. >> north taureans have temporarily back off of the direct confrontation and that has less to do with the statement, which is not stern if i may say so. if united dates attacks, we will respond. only after rigors of barack obama would anyone be surprised by that. north korea recognizes china has sent at least indirectly but publicly if america retaliates for a north korean attack, north korea is on its own. that is a change in chinese policy and i think it was significant. but the underlying issue, the real issue in my view which is north korea's nuclear and ballistic missile capabilities remains unresolved and i find not still unacceptable.
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maria: this hermit kingdom has been pursuing this for a long time stripping the economy of any strength as well and hurting its people. what do you think happens now? >> well, i think north korea continues to develop its ballistic missile and nuclear capabilities. people talk about the u.n. stations resolution. i'm all in favor of sanctions resolution. nine have been passed on north korea since its first breaking the moratorium on missile testing back in 2006. all of them or 15 minute thing. china and russia routinely ignored them. and now another country ignoring them routinely as iran. i think we are still in the same posture and i think that the race of north or rea and iran linked very closely here with the nuclear weapons capability that remains very clear. trade you make a very important point. i spoke with mac thornberry, the
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congressmen chairman of the house armed services and he said well, iran nor is korea, russia, how did they play into this. "the wall street journal" and elsewhere they the rapid advances in north korean ballistic missile technology may stem from purchases that a missile plant in ukraine and still had ties to moscow. this is an indication that people can look you in the face then why not even break a smile. they are living in both moscow and beijing. it is one reason i don't think there is a diplomatic answer in the sense of north korea giving up its nuclear weapons program or iran. efforts such as those proposed and very sad to say by secretary of defense mathis and tillerson
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yesterday to talk to north korea is a fools errand. we have talked to north korea on and off for 25 years. they've lied to us repeatedly. they will lie to us again. the only diplomatic play here is to eliminate the north korean nuclear program by eliminating north korea, reuniting the peninsula. that's an argument we can make to china come a hard argument we started 15 years ago, better late dirty now the number. trade deal are you advocating regime change that the u.s. and u.n. should be leading a change in leadership to north korea? >> i just eliminate north korea. the division of the peninsula is unnatural and to come to an end sooner rather than later. it is in china's national interests to acknowledge that and not the case we have to make. let's be clear. america should judge whether we have solved the problem not by whether things have calm down and nobody's paying attention, but by whether north korea and iran have nuclear weapons capability.
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as long as they do, we are in jeopardy. when we say that's unacceptable, that is we will not accept including the use of military force. nobody wants that to happen, but the essence of statesmanship is taking crises while they are still small and in a relatively lower cost making sure they don't become bigger. that is the choice we are facing right now. maria: the fact that china sent to the north koreans, look, if you trigger war on the u.s., you are on your own. should we then believe that china has done significant moves in terms of rating and north korea? >> i think they've done venting. to me, that signals a windshear between china and north korea, bigger than we've seen before. there is a debate in china about carrying around this ugly piece of baggage that north korea represents. i think if we were to work on that wedge, you could find a path for china to say it's just
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not worth a appear we don't want japan to go nuclear in response to north korea. let's get rid of this problem. let's accept the reunification of the peninsula and certain things they want. i think we can deal with china on. that is the last diplomatic play. anybody who thinks more talks with north korea will produce a result in your 26 of those talks different from the last 25 years needs a history lesson. tree into we should then be watching what north korea does not come advances in terms of nuclear capabilities even further. what is the next catalyst to see where this stance? >> well, i think they've still got some type of logical difficulties to overcome on the ballistic missile side. let's be clear. it is not just that north korea is a threat in northeast asia in the continental united states. it's a technology north korea can transfer or maybe joint venturing with iran right now that gives iran the capability to attack in its region and worldwide and the fact that
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north korea being desperately will sell anything to anybody for her kurdsa. al qaeda, isis had enough dollars or euros coming you better believe north koreans would sell a nuclear device. you don't need ballistic missiles. you can put it on a harbor anywhere in the world, bring it across an open border. this is a real danger, a global danger. maria: we'll see if iran has its own provocations and upsets the nuclear deal. >> let's be clear. we have to remember to deal with nuclear iran. there was the ballistic missile negotiated at the same time. the u.n. security council resolution 2231. they have an excellent study pointing out that three reports by the u.n. secretary-general demonstrate iran is in violation of security council resolution
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20 231. forget the nuclear deal. that the to go after. iranians don't see the nuclear deal and a different from the rest of their policy and neither should we. it's a strategic debacle for the united states. both of these spots are close to boiling. maria: as always, great to see you. we will see you soon. china implementing u.n. sanctions on north korea, but warning it will defend interested the u.s. tries to arm trade ties. former public in virginia governor jim gilmore. good to see you. thanks for joining us. pick up where we just left off. could president trump straight pressure lead to even more problems with china or disagreements? well, listen. the united states is the perfect right to review or trade policies with china. we have to do that and are's own national interests. we need to demand that there be free trade between our two countries. our deficit is over
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$300 billion. it is something we didn't pay attention to during the war and terror. now it's time to pay attention to it. furthermore, the idea that perhaps they will try and leverage against north korea on this as part of the north asian political gain going on that the ambassador addressed a few minutes ago. china is not doing us any favors to helping us on north korea. they know that the united dates is prepared to do what is necessary to prevent them from having nuclear missile. it is in china's interest to cooperate with us on embargoes and not try to leverage us on trade issues. maria: this is a really import point you made because they are not doing us any favors. not just the u.s., but a bigger threat to china and the u.s. at this point. what about the president today authorizing an inquiry into china's alleged theft of intellectual property? let's be honest. we know they've been distilling
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our stuff for years. >> is about time, isn't it? it seems to me the people of the united states rose up and said we want to see change here. we want someone looking at the interest of the united states. i don't think that means we acted contrary to the interest of our allies, but it does mean we have had somebody making sure we are not being taken by bad act as another countries are that includes china stealing intellectual property. it's not appropriate. china has to come in and be part of the concorde of nations. that means they should talk whether they're being back or is or not. maria: you make a great point and it's interesting to see the tough talk out of this administration is so different as they relate to this issue among others come intellectual property. let me switchgears. my condolences to you and your colleagues as former governor of virginia. your reaction to the protest
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there. >> first of all, it's a terrible thing to see white supremacist coming in and trying to use statute issues that some type of white supremacy stand. we can dab all white supremacy attitudes and approaches on organizations, whether they are not the organizations are white supremacist organizations. that can't be the leading edge of any discussion in the state of virginia on any conditions. when i was the governor of virginia, we worked hard to go the opposite way, to bring people together. when i was attorney general, we stopped church burning across the south, both democrats and republicans. when i was governor, i stood up for higher education. we can do things to bring people together and this kind of conflict is not appropriate in the state of virginia or anywhere else in the united states. tree until you make a really important point there. what should the president do to bring people together in that
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regard? you see that they hate them on the left. they hated in the media, within the republican party. what is he going to do to bring people together? >> exactly. we can't allow people in the media -- mainstream media trying to hype this thing up in order to create division. we virginians understand very well with our back round in history that we have all lived together to move our state forward and ultimately find ways to work together and discuss these kinds of issues. that's what i did when i was governor. maria: we will leave it there. thank you so much for weighing in. let's look at markets here. still a market territory, by the way but off of the levels of the morning, shrugging off the north korea threat, down one pays for 62nd consecutive trading days without a 1% move in either direction.
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that longest streak since 1995. traders don't like that kind of streak. no volatility at all. market down nine points on the dow. more ceos pulling out of the white house manufacturing council. president trump firing back. a live report from trump tower next. don't let dust and allergens get between you and life's beautiful moments. switch to flonase allergy relief. flonase outperforms the #1 non-drowsy allergy pill. when we breathe in allergens, our bodies react by overproducing 6 key inflammatory substances that cause our symptoms.
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maria: okay, we are up to four ceos now pulled out of president trump spaniard fracturing council. blake burman live outside of trump tower with the president has been working. good afternoon to you. reporter: good afternoon to you as well. it feels like the thing to do for the ceos at this point. someone not dropping out of the manufacturing initiative. basically a group of ceos would talk about manufacturing type issues. canned fraser who led the charge yesterday, the leader of merck was the first one to announce later into the evening on monday the announcements from kevin plank of under armour for intel. the president yesterday had initially responded by saying on twitter, look him in now ceo can get back to trying to rip off drug prices.
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as more and more are now dropping out, there's fresh reaction from the president. they took to twitter about a while ago and said the following. i quote, for every ceo that drops out of the council, as many grid standards he calls them should not have gone on jobs. however, right after the treat, there is another person from the council but dropped out minutes after that. the alliance for manufacturing and i'm resigning from the manufacturing job initiative and as it is a before and we have seen them around the white house a bunch. he was there at the white house a few weeks ago. he will get going forward. maria: it is interesting to the president thought that the rip off drug prices.
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to ken frazier. >> right, that was his initial risk once yesterday same look, it was tongue-in-cheek. now go back to do what she should be doing, which is lowering the cost of prescription drug prices, which everyone knows is a big problem. but then it seemed to sort of pile on from some of these other ceos soliciting the other response. maria: we will be watching for further risk wants. blake burman in new york. all eyes on alabama senate primary race as they set the polls there. luther strange on the show just last hour makes the case. our yugoslav candidate, sir? >> i don't think so. i just met senator mcconnell when i arrived in washington. congressman brooks is a little bit desperate they are. i wouldn't underestimate the president's involvement in this campaign, his knowledge of
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voters in alabama. that's why such an extraordinary endorsement campaign. maria: dan hemminger is here. gop fundraiser nicole laporte sera fox news network's joy gerri willis on the establishment of conservative wings. great to see everybody. your thoughts on the alabama race first. >> this is really less about the republican party than it is about the party of trump. trump won the state by 62 points. all three candidates are trying to align themselves with donald trump. the question becomes, is the term party a party of protest or a party that's going to produce? during the campaign is in large part a protest vote, protesting the swamp. donald trump is the president of the united states down there trying to pass legislation. they failed monumentally by not passing the health care reform bill. bold overcome on the party
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establishment to it seems like a real portion if the president succeeds or not. a strange phenomenon going on. you luther strange got the endorsement from trump, which is then you have the a crazy dynamics going on with the
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establishment and drain the of the things i thought was really strange is looking donors. there are donors that support the trout movement, donors that at jeff flake. look at robert mercer. can you imagine waking up see jeff flake today. that's exactly others. decide with your morning trump election. i really think this is the mcconnell election. that is what i think is going to stock you told. republicans. we don't like you.
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we will go of those candidates are trying their got the same message in terms of jobs. >> the question becomes whether is not to gain power than execute legislation, fail to do in washington. the only thing republicans are unified at the moment is the fact they can't get anything done. >> that is one thing democrats have. the thing we actually a separating himself, same look, i won all of these things, but it's you guys come in the a wise. it's true. the senate debate mccain came
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to mccain does that nobody expected him to do want talked about so what when the 12 legislative days left in the one to bill on the president's i think it's very maybe it's just tax once you get into 20 control of the house will be a risk. if, a divided congress, the term agenda will be there'll be constant investigations into everything he does with i was
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going to say it's all about the impeachment. the it's an embarrassment is a public and they had seven years to figure out what >> in my going to go to a major donor and say guess what, if we can get the house in the sun and the president say, are going to go we had it fundraising has been going well. every chairman. this guy is a major bundler maria: thanks for sharing. great to see everybody. coming on in the employer fired
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. maria: welcome back. markets are unfazed by north korea tensions and anything else that's apparently an issue. lori rothman on the floor of the new york stock exchange. markets are quiet today. feels like august, lori? >> reporter: it is, good afternoon to you, maria. after two days of gains, the dow up almost 2% over the last two trading days, a little pause. the dow is up -- i'm sorry, off 8 points. the dow is up almost one-half of 1% for the month of august. the nasdaq off about the same. a big story this morning, july retail sales, surging, way better than expected, add to that upwards revision on the june sales, $52.74 billion from online sales, online sales driving that sector of our
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economy, and if you look at the retail sales as a whole, online sales versus department store sales, no surprise, online sales are beating the department store sales by four times. you know, that's the trend we've been talking about the likes of amazon.com day after day, and every new strategy they keep up with. look at the retailers which are struggling today, a lot of the traditional brick and mortars, advanced auto parts down 21%. dicks sporting goods, shares off 20%. earnings missed. poor guidance. basically just a lot of trouble, really, really weak store traffic for dicks and a drag for the entire sector. home depot with a decent housing market is down over 2%. with that, back to you. maria: thank you so much, we'll check back. market is flat on the day. we want to turn to this, james damore, the employee fired by google for memo on diversity
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says the company has definitely political bias, watch? >> there's certain dogmas that you can't defend against at google, and one of them being that there's any difference between people. there are definitely some political biases within google they was trying to shed like on in the document and they affect many parts of the business. maria: all right, that was last night on tucker. judge andrew napolitano on the continuing fallout. good to see you. >> good to see you. maria: what do you think? >> start with the premise that google is not owned by the government, and they can set workplace environment, and they are not regulated by the first amendment. so if they don't want certain ideas promulgated amongst workers, they can punish that distribution of those words. flip side of that is, is this an oppressive workplace environment prohibited under
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california law? if it is as draconian as he described it to our colleague tucker carlson last night where you cannot deviate ever so slightly from the prevailing orthodoxy, he may have a cause of action under california law. he was fired because he sent a memo to ten people. two of them sent it to 40,000, that's what upset management. maria: you make a good point. four times apparently where google is linked directly to hillary clinton, and we know that eric schmidt from google was very helpful to hillary wanting to are her outside adviser when she was running. you wonder if politics does get in the way? >> well, i hope not, california has a statute which prohibits affecting employment relationship on the basis of political opinions expressed outside the workplace. his opinions and i don't know can you characterize them as
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political, they've been rejected by mrs. clinton but it wasn't political in the sense of trump versus clinton, republican versus democrat, like that. if you could characterize that as political, it can be suppressed in the workplace environment as disruptive. so bottom line -- maria: i'm going on what james damore says, he says it's like a cult. >> it's a close call. if he could present prima facie evidence it's a cult, he'll reach a jury, the judge cannot dismiss it. if it's a cult-like environment no matter how competent you are, that is probably a violation of california anti-discrimination laws in the workplace. maria: this is probably one of the most powerful companies on the planet. as it gets bigger, it's going to continue to be a target, they have to make sure practices are right. >> there are trial lawyers in california salivating to take this case, wouldn't charge the kid a nickel.
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they would get a percentage of what they earn if anything. maria: godaddy and web hosts are banning neo-nazi websites. judges is this a slippery slope? >> yes, but again this is not the government. they are free to do that. in theory, if there is a marketplace for the nazi websites, some hosts will pop up and become available. can they politically purify their website? yes, whether the government, the they couldn't. maria: will they? i mean, could they? sure. >> in light of what happened last weekend, you almost can't blame them the question arises, how do they draught line? there were crazy lefties if you watch the pool tapes, out of it as the white supremacists, i don't know if those people are being kept off the website, but we start with the premise that
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they can host whomever they want, but if they do too much of this and don't have a standard, they will lose customers, they will lose business, they'll lose shareholder equity. maria: of course, we'll want to know there are standards at a minimum. >> want and to know what the standards are and fairly and uniformly applied. maria: great analysis as always. judge, good to see you. >> see you in the morning bright and earlying. maria: see you tomorrow, "mornings with maria". thank you. bright and early as the judge just said. north korea may be a threat but iran signaled it could be a bigger one. more on that next. stay with us.
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obviously trying to use the agreement, the nuclear agreement almost as a hostage to prevent any pushback from the united states or other countries against the aggression they're conducting in iraq and syria and yemen and elsewhere in the golf and internal repression. what's been so disappointing about the debate in america since the jcpoa was agreed to in 2015. they're calling in russian airstrikes on hospitals in syria, the answer is you're trying to destroy the agreement. you have a constituency of people from the obama administration who take pride in the fact this was signature diplomatic accomplishment. have you experts on nuclear nonproliferation who wanted prestraints on iran's nuclear program for 30, 40 years, that's very legitimate. we need an american position keeps us united but stands up for principles, we have every right to push back.
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maria: is rohani trying to get past president trump. he has not made secret that the campaign was bad, he is going to reverse it as soon as he gets into office is. iran getting ahead of what we've already heard from this president? >> well, you know, president trump is playing his cards close to the vest. obviously, he doesn't continuing was a very good deal. we gave away concessions at the outset, the iranians pocketed them. you heard people say they're violating the terms of the jcpoa, other people say they allow them to do the things they're doing. at the end of the day, if you're talking about good faith i don't think anyone could give iran high marks on that. i think the rohani administration is playing on our fierce. there is a downside having president trump tear the agreement up. europeans would be on board, go forward with the major deals
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with airbus and totale, et cetera, and the president would have trouble convincing others to sign executive agreements that they want a treaty because he tore up this one. still, he has every right to put a policy together and we'll see that pushes back on all of their activity, including violations of the nuclear accord, and if the iranians pull out, that's a different story, tearing it up with europe as well. maria: do we already have evidence of the iranians going against the nuclear accord? breaking the agreement? >> i'm not the nuclear expert. i've heard people say they engaged in procurement activities and got caught in europe and germany months ago, there are enrichment activities that are suspicious. the iran exiled resistance said they are secret sites and found the nuclear program in the first place as president bush acknowledged. and others say the agreement doesn't prohibit these things and i listen to the former
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deputy director of the iaea at harvard who says at a minimum, we cannot certify the peaceful bent of iran's nuclear program until we get a closer look and under the terms of the agreement, not not clear we'll be allowed to have a closer look. maria: what should the u.s. be doing right now? >> should put together, remember principles. iran is engaged in activities in the middle east and at home that are objectionable. they've also been trying -- there's kind of a drumbeat inside iran for an investigation at the u.n. of a major massacre in 1988 where 30,000 people were pulled out of the prisons and executed very quickly, and three of the people who signed off on the deals have been in rohani's cabinet, you have srebrenica,
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and you have 3100 since you took office and they have about 150,000 men under arms under the quds force in iraq and syria. maria: incredible. >> it is incredible. our military experts warn iran is trying to establish a land border through the mediterranean through iraq, syria and lebanon. secondly, may be establishing a base at the southern approach to the red sea which approaches the suez canal, these are things the united states needs to study and focus on and do nothing about, has nothing to do with the nuclear accord. maria: maybe not, they are serious issues. how about the north korea threat? how involved is iran in terms of north korea building up arsenal? >> if anybody bothered to look at inauguration ceremony for president rohani, they would
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have seen the two deputy foreign ministers opening north korean embassy in tehran and announcing they're going to cooperate on ballistic missile programs in support of their enemy against their common enemy, the united states. so what's tough about this for the president is he's fighting on a lot of fronts, a very tense situation in north korea. the iranians are trying to make another crisis so washington will back off and say we don't want to be fighting on two fronts, et cetera. the americans need to remember principles, stand by what they believe in, oppose aggression, stand by the principles, it's not a violation of the nuclear agreement. maria: we'll be watching. thank you very much, ambassador for weighing in. >> thank you. maria: think your password is strong enough? the guy who came up with the foolproof fix is saying don't be fooled. after this. back in a minute. go
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and we tried to solve that problem by having this wonderful place where they can be children. wtef is the washington tennis and education foundation. we help the kids with their academics, and we teach them tennis. we have retired teachers doing the tutoring and they're here every day. wtef is the sole beneficiary of the citi open® tournament. since citi® has become the sponsor of this tournament, citi® has helped us raise more funds. that means we are able to serve more children. i'm so proud of the fact that 100% of the students in wtef graduate from high school. these kids are keeping the ball inside the lines. inside the lines.
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. maria: password problems. the man who wrote a foolproof way to create uncrackable password is having second thoughts. he wrote the original password standards when he was at the institute of standards and technology, and paul grassy is in the same role. thank you for joining us. >> my pleasure. maria: tell us what happened
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here. bill, initially you gave us guidelines in terms of what a password should be, and now you say not so much. tell us. >> well, we wrote a rather substantial document about electronic authentication, and little bit of it was about passwords, and the password appendix was written in light of what we knew then and what i understood, and it hasn't held up all that well partly because people behave differently than we assumed they would behave, and now we know a lot mow, there's been a lot more research into what people do when they use passwords so time to change it. maria: so what did we learn? >> well, what we learned is that basically the kind of attacks that have been amrieshgsd which are not quite what i expected, we accounted for the online attacks and we knew there were off-line attacks, but what we wound up with was a system that
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encouraged fairly complicated, funny passwords, and at the same time, it was more -- was more than we needed to defeat online attacks and rather less than you would require to defeat what are called off-line attacks, when an adversary steals a file of passwords from a server. and so you kind of put people in the worst of all possible worlds. complicated enough to be a miserable thing for human beings with the number of passwords we have now, and yet not strong enough to actually deal with the best attacks or the strongest attacks if not the most probable. maria: paul, pick up where bill is leaving off here. what are the new rules of the game? >> yeah, we've actually learned and i was fortunate enough to have bill on the team. passwords are a behavioral science than computer science, users are doing very predictable things with the passwords given the complexity
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rules, explanation marks where they use a one or an i. cognitively make it strong and difficult for hackers to breach. so we lengthened the requirements, we asked for common english words that could be strung together in a phrase, something easy for the user to picture in the head but hard for someone to know, we got rid of the special character rules as i mentioned earlier were predictable, we use them in predictable places and the bad guys know those tricks and don't expire them, there is no security benefit for expired password. there is only benefit when we believe our password has been breached. maria: are you saying we don't need to change our password every couple of weeks or months? which is what people do now. >> most cases that is now the forges but our guidelines that that requirement be softened or
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removed. there is very little benefit for that. of course, if you want to change it, you should be allowed to. if there's been evidence of some breach, you should be asked to change it, but by and large, changing them gets you nothing other than a predictable password as the next one because we shift a character in one spot, don't change the password completely. we add a new character, shift it from q to e to r to t or 1 to 2 to 3 to 4, and the bad guys know that stuff. maria: when you look at the way to protect yourself, has that changed in terms of your thinking, bill? >> well, we would like to see people go more than two-factor solution, so that just a password alone is not ideal, a password alone will almost be a part of it. maria: what is the second way with your thumb or what? >> well, many case the most popular right now, not strongest, is to send, to have
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the server send a text message to your phone, and there are many better alternatives, but that's the one that's most widely used. others are cryptographic devices that you can plug into the computer and give you better protection. all right, we will leave it there. gentlemen, good to see you, thank you so much. >> thank you. maria: my exclusive interview with martin shkreli getting new waves. that interview after this short break. you may have gum problems and could be on the journey to much worse. help stop the journey of gum disease. try parodontax toothpaste. ♪
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maria: you mentioned ken frazier. there is a lot of conversation about this morning the fact that ceo of merck stepped off the president's manufacturing council. after that the president tweeted out basically attacking ken frazier. i'm glad he stepped down. now he will have more time to lower ripoff drug prices. what do you think of president's tweet? >> i think it's a great tweet. i think mr. frazier is politicizing the moment. if he supposed advise the president on manufacturing, advise him about manufactures. he is not here to talk about political or race relations or what happened in charlottesville. he is here to be president's economic advisor. instead he is taking spotlight, look at me, how righteous i am. maria: that was part of my interview with ex-pharma ceo, martin shkreli.
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catch me on "mornings with maria" hosting 6:00 to 9:00 a.m. eastern. we will talk infrastructure and tax reform. have a great day. everybody. trish regan to take you through the next hour. trish. trish: thank you, maria. leader of north korea backs off his threat to launch missiles at guam. see how the markets are faring down 13. i got to tell you a lot of investors pretty relieved we're out of the woods for now. trish regan here and well to the teleagainst report. defense secretary mattis tells north korea if you fire at us, it is game on, it is war. hours later north korean state tv announced that kim jong-un will not strike guam at least for now. why did north korea blink? we will ask lieutenant colonel ralph peters. president trump turning to the economy. less than an hour from now he sign as executive order on infrastructure theil

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