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Trump vs. Clinton; Uber Giving up on China?; Hillary Clinton Pushes Back on Questions About Her Honesty; Wildfires in California; Strong

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MARIA-02

Back on Questions About Her Honesty; Wildfires in California; Strong

Housing Market in July - Part 1>

Fires; California; Housing; Real Estate; Economy; Stock Markets; Politics;

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(COMMERCIAL BREAK)

DAGEN MCDOWELL, FBN ANCHOR: Good morning. I'm Dagen McDowell, in for Maria Bartiromo. It is Monday, August 1st.

Your top stories at 7:00 a.m. Eastern time. Hillary Clinton and Donald Trump hitting the campaign trail, both candidates heading to the Midwest as Clinton addressed questions about her trustworthiness and Trump wasted no time in fighting back.

(BEGIN VIDEO CLIP)

CHRIS WALLACE, FOX NEWS HOST: Forgive me, Secretary Clinton, but the Americans know what they think of you. Two-thirds of them don't trust you.

HILLARY CLINTON (D), PRESIDENTIAL NOMINEE: Well, here is what I know, Chris. I have work to do to make sure people know what I have done and what I will do. That is part of what this convention is about.

DONALD TRUMP (R), PRESIDENTIAL NOMINEE: Then she lied like a dog on her e- mails. She lied like a dog on the e-mails. She showed great negligence.

(END VIDEO CLIP)

MCDOWELL: Meantime Donald Trump facing the fallout over his comments against the Khan family. How it will affect the campaign -- straight ahead.

The TSA reminding flyers about the bad items in carry-on bags -- what agents found during a busy week last month.

Uber faces reality in China. The company selling its business there after losing billions of dollars on the venture.

Turning to your stock markets, after a winning month for U.S. stocks, futures are heading higher. We'll be watching the major jobs report for July out on Friday.

In the meantime, European stocks have been up for the moment. Now they are down across the board, even the DAX in Germany falling into negative territory.

Over in Asia, markets were mostly higher. The Shanghai composite was down almost 1 percent, a mix here of manufacturing reports weighing on investors there.

An update to Pokemon Go has players up in arms or feet. We have that story for you.

Taco Bell has another outrageous menu item. Will you place an order for a Cheetos burrito? The answer is yes -- with their whole heart, yes.

Incredible pictures out of Hawaii -- this erupting volcano is permanently changing the island's coastline.

Here with me this morning: Fox Business Network's Cheryl Casone, Recon Capital chief investment officer Kevin Kelly, Democratic strategist Harlan Hill, and right over next to Harlan is one of my favorite people on earth. It's Ed Rollins.

ED ROLLINS, REPUBLICAN STRATEGIST: My fellow football fan. I lose about 30 hours a week watching NFL football so my wife is very excited about it coming back.

MCDOWELL: Ed Rollins -- that is not a loss.

ROLLINS: Go get in your round chair and you shut up.

MCDOWELL: Watching football is never a loss. It is time well used instead.

KEVIN KELLY, RECON CAPITAL: Who's your team?

ROLLINS: I grew up in the Bay Area so the 49ers and the Raiders are what I grew. I live in New York, so I get to watch the Giants and the Jets, so I cheer for them.

KELLY: Great. I like it.

MCDOWELL: He (inaudible) for four teams.

ROLLINS: If you have to watch them you'll have to cheer for them. That's my attitude.

MCDOWELL: Exactly. Ed is coming on. Also with us this morning, Fox News senior judicial analyst Judge Andrew Napolitano, Trump campaign national spokesperson Katrina Pierson, and host of "VARNEY & CO" Mr. Stuart Varney.

Turning back to politics, our top story -- Donald Trump under fire for how he responded to the parents of a fallen army captain who was killed in the line of duty. In his first response to Khzir Khan's claim that he had quote, "sacrificed nothing for his country", Donald Trump said that he had in fact sacrificed by employing thousands and thousands of people.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: How would you answer that father? What sacrifice have you made for your country?

TRUMP: I think I made a lot of sacrifices. I worked very, very hard. I have created thousands and thousands of jobs -- tens of thousands of jobs, built great structures. I've had tremendous success.

UNIDENTIFIED MALE: Those are sacrifices?

TRUMP: Oh sure, I think they're sacrifices.

(END VIDEO CLIP)

MCDOWELL: The Republican presidential nominee also drawing sharp criticism for saying that Mr. Khan's wife Ghazala didn't speak on the stage because she was forbidden to as a Muslim. The grieving Khan family reacted to Trump's comments in an emotional interview.

(BEGIN VIDEO CLIP)

KHZIR KHAN, FATHER OF U.S. SOLDIER: Running for president is not an entitlement to disrespect Gold Star family and Gold Star mother, not realizing her pain. Shame on him.

(END VIDEO CLIP)

MCDOWELL: Let's bring in Republican strategist and co-chair of the Great America PAC supporting Donald Trump -- Ed Rollins.

ROLLINS: Thank you.

MCDOWELL: Ed -- how does he put this to bed? Because again it continued to mushroom in the weekend --

ROLLINS: He has to quit talking about it. He should have basically at the beginning said thank you to the parents of this wonderful young man who twelve years ago gave his life for his country and move on.

I mean one of the unfortunate things about Donald Trump is he has a top of mind argument and it's very combative. And anybody who takes him on, he wants to go back at.

This was just not a fight that he won. And he has to be very careful in the month of August particularly when there's nothing else going on. You don't want to spend three or four days dominating a subject that you can't win on.

And I think to a certain extent there are lots of things he could have gone after Hillary on. His focus has to be on Hillary Clinton, on the Obama record and this will be four more years of Obama. And that's got to be his focus.

MCDOWELL: And these don't even seem to be traps that the Democrats have set for him. He creates these problems for himself.

Like during the DNC last week, you had the issue about the DNC hack and the narrative that the Democrats spun was making it about Russia. Russia did it and they're trying to get Donald Trump elected, which was just absolutely ludicrous. It was about the hack and what was in the e-mail.

He again stepped in it and made a joke about Russia hacking Hillary Clinton's e-mail. It was a joke, but nonetheless again it dominated the news cycle.

ROLLINS: It's hard to argue with some of the success that he's had. But I've always basically said to candidates and I've been doing this for 50 years, don't think out loud. Don't think out loud.

Basically have a plan for the week. Have a plan for the day. Here are the things I'm going to take on. Here are the people I'm going to take on. Here are the issues I'm going to take on. And don't get into rambling statements because when you do, you always have thousands of reporters somewhere out there following you and they're going to take things down and write them and they're not going to write them the way you want them.

So discipline in this campaign in the next couple of weeks is going to be very, very important. He's got to build a campaign structure. He's in a very competitive race.

She's going to have an extraordinary team. She's going to run the traditional election. He's not, obviously. It's going to be a very close election by the time we get to the polls this week. It will be pretty dead even. She'll move ahead a little bit because of the momentum and at the end of the day, you can't be making mistakes.

MCDOWELL: I have been thinking about this. This is what I do. I sit around all week and I think about what I'm going to ask Ed Rollins on Monday morning.

You have a weak candidate with a great campaign and may be a great candidate -- I mean, so you have a weak candidate with a great campaign and a great candidate with a weak campaign. Which one dominates?

ROLLINS: So far, I mean it has been Trump. And obviously at the end of the day, her campaign will dig out every vote that they have. He's got a base you put a structure in there and play. He doesn't believe in that but he has to have it.

If you are going to win the Pennsylvanias, the Floridas and the Ohios, which are the three keys to winning for him or for her, you've got to go in there and find those voters, you bring them out and that takes a real structure.

HARLAN HILL, DEMOCRATIC STRATEGIST: Is he building that now? Is he building a get out the vote operation?

ROLLINS: I can't coordinate because I'm basically a super PAC. Certainly it's what my super PAC wants to do. But equally as important I think those things are happening. We're late. We need to get going.

She's building on the Obama team and it's one of the best in the business and we need to basically duplicate.

CHERYL CASONE, FBN CORRESPONDENT: Can I add to this. Those sources that I've talked to within the Trump organization say that they are going to use social media -- that is their ground game, to answer the question. Social media -- not the physical ground game of back in the day politics.

HILL: I don't think that works.

CASONE: -- whether that's a good idea.

(CROSSTALK)

(CROSSTALK)

HILL: -- you actually have to knock on doors. You actually have to get people out to vote. I mean just tweeting and getting engagement on Facebook is not enough. It's not enough to actually get people --

MCDOWELL: My parents would literally -- you go and put people in vans and you got them to the polls.

HILL: Exactly.

ROLLINS: You have three tasks in any campaign. You find your voters. You communicate with your voters. You get them to the polls whenever the election day is. It's not one day anymore. Sometimes it's months because of all the absentee ballots and everything.

Social media as a fabulous tool that we have used extensively but it's finding your voters. It doesn't force them to go to the polls. The Democrats will be knocking on the doors. Have you voted today? Come and get in the car. Here's a donut, here's a cup of coffee. I'm going to get you to the polls.

They're going to basically go into the church community and what have you and they're going to turn out the votes. They're going to get the bus drivers from Sundays, turn people out in record numbers. And I think that's what we have to be worried about. And we have to duplicate that.

MCDOWELL: I want to ask you about Russia. The presidential candidates sparring over Russia's role in the world and Trump's relationship with Putin.

(BEGIN VIDEO CLIP)

TRUMP: The people of Crimea from what I've heard would rather be with Russia than where they were. And you have to look at that also.

CLINTON: There are serious issues about Russian interference in our elections, in our democracy. We would not tolerate that from any other country, particularly one with whom we have adversarial positions.

And for Trump to both encourage that and to praise Putin despite what appears to be a deliberate effort to try to affect the election I think raises national security issues.

(END VIDEO CLIP)

MCDOWELL: Ed your reaction to that.

ROLLINS: Putin is one of the two or three most powerful men in the world and he's not our friend. At the end of the day we can try and have better relations long term but you can't basically assume he's going to be -- same interest you have.

So you can't basically be saying the bad activity of the invasions that he made in the past taking over parts of a free democracy was a good thing. He has to really pay attention to his briefing books here and he has to really go after her on her Clinton Foundation, Russian involvement --

MCDOWELL: -- which by the way was not mentioned one time last week. All the good work that the Clinton Foundation has done -- it did not get brought up once at the DNC.

ROLLINS: Well, it has basically been if you get into the Clinton foundation, which I assume they will, you're going to find that everybody who has given donations has gotten something in return. The Clintons forever since the days of Arkansas -- everything has been for pay. You give me a donation you get to sleep in the Lincoln bedroom, you get to fly in Air Force One, you get some kind of a job, you get some kind of a deal. It started in Arkansas, went on for the eight years at the White House -- the Clinton Foundation maintained that and continued --

KELLY: Ed -- doesn't she have a Russia problem too because she did the reset. So she doesn't really have a lot of credibility when she's talking about Donald Trump and his affinity for Russia.

ROLLINS: She is very vulnerable on that. You just have to make sure that's the case and that's what we're talking about as opposed to him basically saying Putin's a good guy.

MCDOWELL: Right. He's given her a pass because of the way that he's talking about Putin.

One other thing I want to bring up with you -- Ed. Clinton with regard to Trump and how he talked about the Khan family. The Clinton campaign immediately went after Mitch McConnell and Paul Ryan, pushing them for responses and they gave responses to that.

But they're pushing them and I kind of wonder, are they concerned about maybe people voting for Hillary Clinton, but then voting Republican across the rest of the ticket?

ROLLINS: There is a great danger, a great danger in any campaign when you have someone like Donald Trump who may bring out new voters, to make sure that those voters go down that side of the ballot and vote for congressmen and legislators and the same way with her.

If she has a better structure to turn out votes, at the end of the day it will benefit Democrats across. So we have to duplicate that. That's what the RNC should be doing, the congressional committee should be doing.

There's always a danger. Richard Nixon in 1972 won 61 percent of the vote and won 49 states and basically wiped Republicans out everywhere. I did in 1984. I made sure those Democrats who were for Reagan got turned over to the congressional candidates and we picked up seats. And that's the way you have to do it.

You have to identify those voters and make sure that they are for both Trump and the candidates down below.

MCDOWELL: And I wonder if people are not thinking about that -- if they can stomach a candidate who they don't find palatable if they vote for the other party down the entire ballot. That is certainly a conversation that people have started raising with me.

ROLLINS: Well, there's a real danger to us this time. We are still in a very competitive race for the presidency. The senate is very much in jeopardy and we have to be very careful not to lose that Senate. If we lose that Senate, I don't care who's president, we're going to have a very hard time. And we can win that Senate, we just have to make sure we don't make any serious mistake.

MCDOWELL: Ed Rollins.

ROLLINS: Thank you. My pleasure. My pleasure.

CASONE: Pretty good for a Giants, Jets, Niners, Raiders fan.

ROLLINS: But over time, we've had lots of championships.

(CROSSTALK)

ROLLINS: The Jets haven't been very good.

MCDOWELL: Notice Ed doesn't root for the Lions or the Eagles. Ed -- it's great to see you.

ROLLINS: My pleasure -- thank you.

MCDOWELL: Ed Rollins -- pleasure.

Coming up the TSA out with a list of items frequently found in passenger bags. Of course, you will not believe which forbidden objects are frequent offenders.

Plus great news for all the hungry pedestrians out there. McDonald's now offering walk-through services and the customers are loving it. By the way, is it in response to a lawsuit in this country? We will debate that coming back.

(COMMERCIAL BREAK)

MCDOWELL: Apparently a lot of air travelers don't know the rules about weapons on planes.

Cheryl Casone has that and more headlines. Hi -- Cheryl.

CASONE: Leave your gun at home if you are going to go to the airport. Just to say this -- ok. If you need to be told, the TSA would like to remind all other travelers leave your weapons out of your carry-on bag.

Hard to believe but in a seven-day period from July 22nd to July 28, TSA officers discovered 74 firearms -- this will be 65 loaded weapons, three inert grenades, a cleaver and several pocketknives. 29 of the firearms actually had a bullet in the guidance chamber. Air travelers can bring a gun in their checked bags, but you have to declare to the airline. So yes, not good.

The Food and Drug administration issuing a new warning saying do not eat raw cookie dough or cake batter, after we've done a whole segment on it. This comes after the e. coli tainted flour from General Mills has sickened 46 people in 21 states. This outbreak cost 45 million pounds of flour to be recalled. FDA testing flour produced at General Mills facility in Kansas City, Missouri.

Well, a McDonald's location in the U.K. has tested a new concept -- a walk- up line for those that have had too much to drink late at night or early in the morning. The McDonald's in North Wales opened last weekend between the hour of 2:30 a.m. and 4:00 a.m. The franchise had an increase in sales. They will be offering the walk-through ever weekend. Granted, not coincidentally, the McDonald's is very close to a popular nightclub in that town. So far the idea has not been tried out here in this country but just wait.

And when was the last you saw a smile from Mother Nature? Check out this aerial footage of lava flow from Hawaii's Mount Kalea. Isn't this cool? It looks like a smiley face, right, you guys. This is one of the world's most active volcanoes located on the big island of Hawaii. The lava from the volcano began erupting in late May. It's been moving on a six-mile journey towards the coast and the Pacific Ocean. But yes, a little smile and lava and fire.

Back to you.

MCDOWELL: The one thing I was going to say about that McDonalds. McDonalds is being sued in this country on behalf of a blind person who was trying to walk. They wouldn't serve this blind individual who was walking through the drive through because the actual interior of the restaurant was closed. So having a walk-up, drive-through lines for nighttime would solve their problems legally.

CASONE: Yes. I think they should follow the story of the U.K.

MCDOWELL: I think that is probably what will happen here in the U.S.

Coming up, Uber hitting the brakes on its business in China -- while the ride hailing company is selling its assets to rival Didi.

Plus outrage after Pokemon Go removed one of the games best features. More on the big update that has fans up in arms. Straight ahead

(COMMERCIAL BREAK)

MCDOWELL: Mergers this Monday on Wall Street.

Tesla and SolarCity making their deal official -- a $2.6 billion tie up.

Meantime, Uber selling its China business to rival Didi after losing billions of dollars in that country.

What do you want to start with? Kevin Kelly.

KELLY: I think the actual Uber situation is pretty interesting because it underlines how difficult it is for American companies to do business in China. So I think it overlays that concern. We've seen Apple has had a hard time over there recently. They're now focusing on India more seeing that's the fastest growing one.

This is an interesting deal mostly because Uber -- it cost so much money for them to own and operate everywhere. The regulatory environment is so costly. That's why we're seeing it come back time and time again raising more and more and more money every single time.

But what's nice to know is now they are going to Denmark. They raised a couple of billion dollars at 4 percent a couple of weeks ago.

CASONE: What do you make of the billion dollars that's reversing back into Uber Global? That's what I thought was interesting about this whole -- there's some kind of back deal going on.

(CROSSTALK)

KELLY: Well, if you remember too, you also had the UAEs come in and invested in Uber as well. I mean this is one of these things that a lot of countries are interested in protecting themselves.

CASONE: Basically the Chinese just got a piece of the Uber deal.

KELLY: Of course, it is a way to backdoor into these big high-valuation deals and you're seeing it time and time again especially the biggest tech companies. So in these unicorns.

MCDOWELL: Let's talk about Tesla and SolarCity. When you talk about this deal you need to hold your nose. It smells so bad.

KELLY: Yes, it does smell to high heaven. I mean it obviously is meant to benefit Elon Musk the most. And that's what it is. It's hard to see for shareholders of Tesla why would you want to do this? You're investing in this car company. They are very innovative and then you get into this retail platform on solar panels. It's not a good situation especially when it comes to the financing side for both deals.

There's a cash flow issue happening over at Tesla. This is going to burden Tesla even more. But, you know, it helps Elon Musk. So, I guess what is good for him is supposed to be good for the company.

But it bailed out actually the debt which SpaceX owns so you've got to believe in this guy and that's all you're doing because right now the financing is not doing well. The cash flow is not doing well. It's a scary situation.

MCDOWELL: Even his vision. Harlan in his bow tie looks like he drives at Tesla.

HILL: I would love to. I would love to. Actually something really interesting about the Didi investment which is that they own a stake in every major car sharing -- ride-sharing service in the world now -- Lyft, Ola, Grab taxi and now Uber. And so that's really interesting. They are like a global juggernaut for ride sharing.

MCDOWELL: Well it's an exclamation point on the fact that China is still a communist government and they --

KELLY: If you want to do business there you have to do -- if there is this company that's sponsored by the state, you are done. You're just in trouble and that's what you are seeing. That's what Apple is having a hard time. And you're seeing their middle class grow from 50 million people to the 500 million people by 2020. There is so much money being thrown at that that the government is not going to --

CASONE: Uber just saved face with this China deal, for sure. Uber China had been a disaster. I mean it really has been. So they really are lucking out with this deal today.

KELLY: Yes and they still own -- they own still 20 percent of it. So it's not like -- you know, it was a fair trade I guess you could say.

MCDOWELL: I'll point to a couple of really good stories in the "Journal" today. The dividends of kind of the old school tech companies like an IBM or Cisco very alluring to investors -- see, I can use big words like allure. Buyers are willing to pay big for companies considering stock listings that companies are opting to sell themselves rather than go public because it is the worst -- it's the slowest year for IPOs since '09.

KELLY: Yes, we saw the worst start of the year. I mean the first two months January and February, you weren't seeing these IPOs come out. And that's actually showing a healthy market because actually the market wasn't willing to take everything. So it's actually pricing appropriately because a lot of these companies that used to be able to come out and investors shouldn't have gotten into, it is nice that they are not actually able to come public these days.

But you're right, tech has the most cash on the balance sheet so they are starting to increase their dividends because they're generating so much of this money.

MCDOWELL: We need some income since the earnings buck us off of the --

KELLY: Yes. It yields more than the 10-year treasure so that is one of the arguments. You can get in Apple, it's growing and you can get a decent dividend of 2 percent.

MCDOWELL: Crazy times.

Coming up outrage over Hillary Clinton getting intelligence briefings despite her ongoing e-mail controversy. Is Clinton really fit to be trusted with classified information again?

Fox News senior judicial analyst Judge Andrew Napolitano joins us with his take.

And winter has come early for "Game of Thrones" fans. The show's following devastated after a big announcement. We will tell you what sent them into an absolute frenzy.

(COMMERCIAL BREAK)

MCDOWELL: Welcome back. I'm Dagen McDowell. It's Monday August 1, your top stories at 7:30 a.m. Eastern.

Donald Trump and Hillary Clinton gearing up for their first you full week of the general election campaign. Trump heads to the Rust Belt while Clinton gears up for an event with billionaire investor Warren Buffett. Clinton pushing back on questions about her honesty saying, support of her record speaks for itself.

(BEGIN VIDEO CLIP)

HILLARY CLINTON (D), PRESIDENTIAL NOMINEE: I feel very comfortable that the more people learn about what I've actually done and not the caricature, but the real deal, as my husband said in his remarks, they will understand why I was elected twice to the United States Senate. And the second time, with a 67 percent vote. Why my former opponent President-elect Obama trusted me to be secretary of state.

(END VIDEO CLIP)

MCDOWELL: Fire fighters battling a wildfire in California that has grown to the size of a city of San Francisco. And now it threatens some of the states most visited tourists' sights.

An update, the Pokemon Go has players up in arms, or feet, details ahead on that.

Taco Bell adding another outrageous menu item, will you order a Cheetos Burrito? It might be a little dirty -- I guess it's an Whoopi Goldberg joke where you can take the menu (ph) and uses as eye makeup, maybe (inaudible).

Turning to market, future earning to a higher oh (ph) when we got games across the board. Do you hear that laugh? That's just Judge Andrew Napolitano laughing. And over in Europe, stocks had been searching for direction and you've got losses across the board at the moment. In Asia, overnight markets mostly higher which is the Shanghai lower about 1 percent. A mixed pair of manufacturing reports will weighing on markets there.

Mortgage rates covering their record lows and it has many people looking to buy. We're going to dig into the top markets for home buyers. Winter is coming for the "Game of Thrones" fans and they are devastated. Details ahead.

Donald Trump and Hillary Clinton set to start receiving their regular intelligence briefings as early as this week. This -- as the State Department continues this investigation into Hillary Clinton's use of a private e-mail server, Hillary Clinton addressed the ongoing issues undermining her trustworthiness and an exclusive sit down with Fox News's Chris Wallace.

(BEGIN VIDEO CLIP)

CLINTON: I have work to do to make sure people know what I have done, and what I will do that's part of what this convention was about. I feel very comfortable that the more people learn about what I've actually done and not the caricature, but the real deal, as my husband said in his remarks, they will understand why I was elected twice to the United States Senate. And the second time, with a 67 percent vote. Why my former opponent President-elect Obama trusted me to be secretary of state.

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