Cold Welcome for Trump in Wisconsin; E-Mail Controversy; Rio Olympics Concern; Fighting Zika; July Jobs Report; Replacing Pence;

SPECIAL-REPORT-WI-01

REPORT-WI-01

Olympics Concern; Fighting Zika; July Jobs Report; Replacing Pence;

California Seeking Federal Aid with Fighting Wildfires; Hillary Clinton's

Comments on Email Server Scandal Examined; Brazil Prepares to Host Summer

Olympics - Part 1>

Griffin, Steve Harrigan, Phil Keating, Kevin Corke, Matt Finn>

Policies; Olympics; Diseases; Economy>

CHRIS WALLACE, FOX NEWS ANCHOR: Donald Trump tries to heal the split in the GOP by finally endorsing the top Republican in Congress.

This is SPECIAL REPORT.

Welcome to Washington. I'm Chris Wallace in for Bret Baier.

What would normally be a show of force by Republicans in Wisconsin tonight may, in fact, show just how divided the party is over Donald Trump. The Republican nominee and his running mate will be in Green Bay shortly but the state's top Republicans will not even though Trump is trying to make amends with a sudden about-face.

We have Fox team coverage. Jennifer Griffin with the Clinton campaign here in Washington. But we begin with senior national correspondent, John Roberts, in Green Bay tonight, where politics is joining football as a contact sport.

Good evening -- John.

JOHN ROBERTS, FOX NEWS SENIOR NATIONAL CORRESPONDENT: And you know how popular football is in this town, Chris. Good evening to you.

Fox News has learned that after hedging his bets all week, famously saying that he's just not there yet, Donald Trump will throw his full support, a full endorsement behind House Speaker Paul Ryan in his primary contest next week. If it comes off as planned, there's still some question as to whether it will, but we think that it will, this could go a long way toward putting Donald Trump back on track in keeping the Republican Party as unified as it could possibly be.

(BEGIN VIDEOTAPE)

GOV. MIKE PENCE (R-IN), VICE PRESIDENTIAL NOMINEE: The next president of the United States of America, Donald Trump.

ROBERTS: Neither Paul Ryan nor Wisconsin Governor Scott Walker are attending tonight's rally in Green Bay, but the endorsement is another sign that Trump is getting the word about message discipline and the importance of keeping the focus on his opponent, as he did at today's rally in Des Moines.

DONALD TRUMP (R), PRESIDENTIAL NOMINEE: We're going to be talking about the queen of corruption. Unstable Hillary Clinton lacks the judgment, temperament, and moral character to lead this country.

ROBERTS: While Ryan never wavered in his endorsement of Trump, he did express concerns about the direction of Trump's campaign in an interview with the Green Bay radio station.

REP. PAUL RYAN (R-WI), HOUSE SPEAKER: Yes, he's had a pretty strange run since the convention. You would think that we ought to be focusing on Hillary Clinton, on all of her deficiencies. She is such a weak candidate that one would think we'd be on offense against Hillary Clinton. And it is distressing that that's not what we're talking about these days.

ROBERTS: And in a congressional fund-raising e-mail last night, Ryan warned of the consequences of handing President Hillary Clinton a blank check. The appeal mirrored an ad by Congressional Republicans in October of 1996, when it became clear Bob Dole would not beat Bill Clinton.

TRUMP: $400 million, same day as the hostage release, and now they say, now they say, it has nothing to do with it, just coincidence.

ROBERTS: Hoping to turn around sagging poll numbers, Trump is hammering Clinton and the Obama administration over the $400 million payment to Iran. After insisting he had seen a video of pallets of money being unloaded in Iran, Trump seemed to walk that back in a tweet this morning, saying the plane that he saw was of the hostage transfer.

But last night, video of what appeared to be a pallet of money did emerge from an Iranian documentary that aired back in February, which suggested that the cash was connected to the hostage release.

UNIDENTIFIED FEMALE: Now, in this exchange, the Iranians demand the entire $400 million in addition to $1.3 billion in deferred interest.

(END VIDEOTAPE)

ROBERTS: Back to tonight's Ryan endorsement. One top Republican told me that neither the Republican Party nor Ryan's campaign ever sought Donald Trump's endorsement, but that after saying what he said earlier this week it became an issue, something they thought Donald Trump needed to fix.

He may have been trying to be cute, one top Republican official told me, but at his level, words have meaning, and he needed to do something to put the genie back in the bottle -- Chris.

WALLACE: John Roberts with the Trump campaign in Green Bay, Wisconsin. John -- thank you.

Hillary Clinton hadn't held a news conference in 245 days. Well, today, depending on your definition, she may have ended that long streak. Clinton spoke to minority journalists here in Washington.

And as Fox News correspondent Jennifer Griffin reports, she is standing firm on her story about the e-mail scandal.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I think we're ready to take a few questions.

JENNIFER GRIFFIN, FOX NEWS CORRESPONDENT: It has been eight months and one day since Hillary Clinton has held a press conference. Today, she finally took questions from reporters who belong to the National Associations of Black and Hispanic Journalists. She was asked to explain what she meant when she told "FOX NEWS SUNDAY's" Chris Wallace that FBI Director James Comey had said she was truthful in talking about her e-mail server.

HILLARY CLINTON (D), PRESIDENTIAL NOMINEE: Director Comey had said that my answers in my FBI interview were truthful. That's really the bottom line here. What I told the FBI, which he said was truthful, is consistent with what I have said publicly. So I may have short-circuited, and for that I will try to clarify, because I think Chris Wallace and I were probably talking past each other.

GRIFFIN: But here's what Comey told Congressman Trey Gowdy under oath.

REP. TREY GOWDY (R), SOUTH CAROLINA: Secretary Clinton said there was nothing marked classified on her e-mails, either sent or received. Was that true?

JAMES COMEY, FBI DIRECTOR: That's not true. There were a small number of portion markings on, I think, three of the documents.

GRIFFIN: Clinton went on to explain today why she continues to say she never sent classified information.

CLINTON: A classified document has a big heading on the top, which makes very clear what the classification is. And in questioning, Director Comey made the point that the three e-mails out of the 30,000 did not have the appropriate markings. And it was therefore reasonable to conclude that anyone, including myself, would have not suspected that they were classified.

GRIFFIN: Here's what Comey said on July 5th.

COMEY: From the group of 30,000 e-mails returned to the State Department in 2014, 110 e-mails and 52 e-mail chains have been determined by the owning agency to contain classified information at the time they were sent or received.

(END VIDEOTAPE)

GRIFFIN: A new poll by Gen Forward conducted by the University of Chicago found that more than half of the young white voters polled believe that Hillary Clinton intentionally broke the law when she used a private e-mail server. But only 21 percent of young African-American voters polled believe she intentionally broke the law -- Chris.

WALLACE: Jennifer -- thank you.

We are now less than an hour from the start of the opening ceremony for the summer Olympics in Brazil. But amid all the pageantry, these Olympics are facing major problems, from pollution to doping to security. And then there's the Zika virus.

Correspondent Steve Harrigan is in Rio tonight.

(BEGIN VIDEOTAPE)

STEVE HARRIGAN, FOX NEWS CORRESPONDENT: For Olympic athletes in Rio de Janeiro, some of the biggest hurdles may be outside of the games. In the air, there is the Zika virus, spread by mosquitoes that can cause birth defects in pregnant women. After efforts by health experts to move the games failed, some athletes decided to stay home. For others, it's one more obstacle to overcome.

ANGELICA DELGADO, TEAM U.S.A.: My mom literally like, two months ago, bought a bunch of DEET and bug spray and stuff like that and she's like packed it in my bag already.

HARRIGAN: In the water rowers, sailors, and tri-athletes will contend with decades of raw sewage pumped directly into the waters around Rio. Bacteria and virus levels are 1.7 million times what would be acceptable in the U.S. One expert warned, "don't put your head underwater". Hospital sewage has created a super bacteria on beaches where Olympic sailing events will be held. Human body parts have washed ashore near the volleyball site. Rowers will wear antimicrobial suits and bleach their oars.

Even the indoor pools are considered risky. Australia's coach pulled his swimmers out of a training pool, fearing infection after the water turned soupy.

Athletes from Denmark, China, and Australia have already been robbed, some inside the Olympic village where phones, laptops, even the sheets from beds were stolen. Some athletes have called the village itself with exposed wires and collapsing bathrooms, uninhabitable. On the ground more than 40,000 police and 30,000 soldiers with intelligence assistance from the U.S. will try to protect the athletes and estimated half million tourists.

PETER MARTIN, GLOBAL SECURITY CONSULTANT: We've got local crime, street crime, crimes of opportunity. And these type of events like the Olympics draw in individuals where they see increased amounts of opportunity.

HARRIGAN: ISIS has called for terror attacks during the games. Last month, security forces arrested 12 people who were plotting attacks.

(END VIDEOTAPE)

HARRIGAN: The move to ban the entire Russian team for state-sponsored doping has failed. Now, 70 percent of the Russian athletes are eligible to compete -- Chris.

WALLACE: Steve Harrigan reporting live from Rio. Steve -- you.

The Zika threat here in the U.S. is also capturing more attention. Experts in Florida have confirmed a 16th case, likely spread by mosquitoes in the Miami danger zone. Meanwhile, officials in Florida are hunting the insects by land and air, and politicians are looking for the money to pay for it all.

Correspondent Phil Keating has the latest tonight from Miami.

(BEGIN VIDEOTAPE)

PHIL KEATING, FOX NEWS CORRESPONDENT: Miami-Dade County's Zika air assault is now underway, with plans to continue spraying insecticide over a 10- square mile area this weekend. The county laid mosquito traps first and said after the flyovers, the traps revealed 100 percent kills. This, despite a funding showdown.

SEN. BILL NELSON (D), FLORIDA: Government inaction that is the height of irresponsibility.

KEATING: Florida senior U.S. Senator, Democrat Bill Nelson, today the latest elected official to descend on Miami's emergency Zika situation. He's calling on Congress to return early from August recess, to pass the President's $1.8 billion Zika funding request.

NELSON: What about when it's discovered in another state? The fact is that this is a health emergency, and it needs to be dealt with, straight on.

GOV. RICK SCOTT (R), FLORIDA: Excuse me.

KEATING: He follows in-person on the street visits Thursday by Florida's Governor and south Florida's congressional delegation, all saying Florida's Zika crisis is real here and now, with today a new 16th case confirmed to have come from a mosquito in that neighborhood.

CARLOS CURBELO, FLORIDA REPRESENTATIVE: We don't want people to be scared of coming here. So from my perspective, whatever it takes to get this done, whether it's a special session, if the senate went in tomorrow in a pro forma session, I would be pleased with that, as well. We need this funding.

KEATING: The CDC still says the only act of Zika transmission zone is in this one-square-mile box just north of downtown Miami, although one of the 16 local cases is not tied to a visit here. Exactly how that happened remains under investigation.

As the county and state intensified their war on the Zika virus from the skies and house to house on the ground, President Obama reiterated from the Pentagon Thursday, current Zika funds at the National Institute of Health dry up September 30.

OBAMA: The situation is getting critical. For instance, without sufficient funding, NIH clinical trials and the possibilities of a vaccine, which is well within reach, could be delayed.

(END VIDEOTAPE)

KEATING: But for the British company wanting to release three million genetically modified mosquitoes into the Florida Keys, a big win tonight, as the FDA gives final approval for a field trial. Oxy Tech claims its lab bugs reduce the local mosquito population by 90 percent. It is now up to Keys voters this November -- Chris.

WALLACE: Phil Keating reporting from Miami. Phil -- thank you.

Let's talk more now about the danger from the Zika virus here in the U.S. and at the Olympics with Fox News medical analyst, Dr. Marc Siegel. Doctor --

DR. MARC SIEGEL, FOX NEWS MEDICAL ANALYST: Hi -- Chris.

WALLACE: -- why all of the attention to the outbreak in Miami-Dade County. Is it likely to spark a wider spread of the Zika virus here in the U.S.?

SIEGEL: Absolutely not, Chris. There's a lot of precedent for this, for this not happening with the related virus called dengue fever which has many more cases around the world and has never had anything more than sporadic cases in Florida.

Every year, they spray Florida with about eight million acres worth of something called NALED which Phil Keating was talking about. That's the spray you're seeing there. That's 100 percent successful at killing the Aedes aegypti mosquito which, by the way, never travels more than a couple of blocks and never lives more than two weeks.

So it's -- a traveler brings Zika to Florida, you may see some local spread like this 14, now 16 cases. It's never going to be a lot more than that. It's never been a lot more than that with dengue. It's an anxious public here that we're trying to reassure.

WALLACE: Well, let's take a look at the bigger picture. The Olympics, as we've said it, are getting underway tonight in Rio. That, of course, has been a hot spot for Zika. How worried should we be about athletes and fans going to Rio, going to the Olympics, spreading the virus when they come back home?

SIEGEL: Great question, Chris. Because there's going to be a couple of hundred thousand fans going to Rio but first of all, it's becoming the winter there now. The number of cases of Zika is dropping dramatically at this moment.

Second point is that some analysts have looked at this, some studies from Yale and from CDC have discovered that probably less than a hundred cases are going to spread around the world from the Olympics. And guess what. Most of the places they're spreading to are already seeded with Zika. They're not anticipating new Zika outbreaks as a result of the Olympics.

So I think celebrities should go down there if they're not pregnant or thinking of becoming pregnant, and they should just show their courage, which is what the Olympics is all about.

WALLACE: And finally, what's the long term solution? How do we stop or at least control the spread of Zika?

SIEGEL: Well, Chris, first thing is mosquito control. We've been talking about that. In Puerto Rico now, we're having a huge problem with up to 50 pregnant women a day getting Zika, because they're afraid of those insecticides. We need to spray, we need to kill these mosquitoes and we need to do it now around the world or we're going to see more and more travelers with this. We don't have a problem with this mosquito in the U.S. We do have it in the U.S. territories.

Second thing is the vaccine, which very promising news this week that it works very well. Three different vaccines are working in monkeys already. We're going to see them in human trials as of October. In one or two years, we're going to see them in the doctor's office. That's going to squash this. That's very exciting news -- Chris.

WALLACE: Doctor -- thank you. It is good to have some good news.

Please join us tomorrow night for a special look at the Zika threat. "FOX NEWS REPORTING: ZIKA" will be hosting by Trace Gallagher. Tune in Saturday at 8:00 p.m. Eastern and it will repeat on Sunday at 10:00 p.m.

Up next, as new jobs numbers come out, the chamber of commerce is taking the Obama administration to court. We'll tell you why.

First, here's what some of our Fox affiliates around the country are covering tonight.

Fox 32 in Chicago as police release video related to last week's fatal shooting of an 18-year-old suspect in a car theft. The superintendent of police there has said that dash cam and body cam videos suggest violations of department policy in the shooting of Paul O'Neil.

Fox 5 in Atlanta as a Georgia man faces criminal charges in connection with the death of his twin 15-month-old children who were left in a hot car Thursday afternoon. Asa North faces two counts of involuntary manslaughter. Police say North had been drinking before leaving the toddlers in the car.

And this is a live look at Cincinnati from Fox 19. One of the big stories there tonight, an ATM for a different kind of dough. A pizza ATM is attracting attention on the campus of Xavier University. You place the order, pay the bill, and three minutes later, you have your hot pizza. While this is new to the U.S., the ATM owner says Europe has had them for years.

That's tonight's live look outside the Beltway from SPECIAL REPORT.

We'll be right back.

(COMMERCIAL BREAK)

WALLACE: The man who shot President Reagan 35 years ago is eligible for release from a psychiatric hospital as of today. Last month, a judge said John Hinckley could permanently leave the facility where he's been confined since the assassination attempt. He will have to live with his mother for a year, but after that, he can live on his own. Hinckley must visit his doctors once a month for checkups.

The July jobs numbers indicate progress in hiring, but also a near-historic low in the number of people participating in the workforce. This comes as the Obama administration clashes with big business over tax policy.

Correspondent Kevin Corke reports tonight from the White House.

(BEGIN VIDEOTAPE)

KEVIN CORKE, FOX NEWS CORRESPONDENT: Is the U.S. Economy heating up? Or is this just another case of smoke and mirrors? Well, that depends upon whom you ask. The White House would suggest it's the former as for a record 70th straight month, the U.S. jobs report showed gains. Payroll climbing by 255,000 last month, while the jobless rate held at under 5 percent. Wages also went up, 0.3 percent. That's the most since April, with a three-month average of 190,000 new jobs.

But that is sparking fears that the Federal Reserve could raise interest rates as soon as next month, which would mean higher borrowing costs for consumers on everything from mortgages to car loans, even credit cards.

UNIDENTIFIED MALE: The fed's going to make their decisions, but I think this is a very strong labor market.

CORKE: Strong, but not strong enough to impact the near record low workforce participation rate, which continues to hover at just around 63 percent.

PAUL CONWAY, FORMER LABOR DEPARTMENT CHIEF OF STAFF: When you take a look at the number, I think the important dynamics in here are the number of people that are taking on part-time work, to have to keep making ends meet. That has increased.

JASON FURMAN, COUNCIL OF ECONOMIC ADVISERS: This jobs report means that we're seeing faster wages. We're seeing a continued low unemployment rate, but that we still need to make more progress.

CORKE: The jobs report comes as the Obama administration's Treasury Department is being accused of a massive overreach. The U.S. Chamber of Commerce and a Texas business group suing the Obama administration, alleging new rules limiting tax-motivated inversions violate the law.

OBAMA: So I am very pleased that the Treasury Department has taken new action to prevent more corporations from taking advantage of one of the most insidious tax loopholes out there and fleeing the country, just to get out of paying their taxes.

CORKE: But at a statement, the chamber's president said Treasury and the IRS ignored the clear limits of a statute, and simply rewrote the law unilaterally. This is not the way government is supposed to work in America.

(END VIDEOTAPE)

CORKE: Chris -- Texas congressman Kevin Brady, who's the chairman of the House Ways and Means Committee, has called the new tax inversion rule damaging. And keep in mind much of the controversy surrounding this is because of that proposed merger between Pfizer and allergen that would have been worth about $152 -- a merger that at least at this point remains on hold -- Chris.

WALLACE: Kevin Corke, reporting from the White House. Kevin -- thank you.

It was a big day for stocks. The Dow gained 191. The S&P 500 finished ahead 19. Nasdaq was up 55. For the week, the Dow gained about six-tenths of a percentage point. The S&P 500 was up four-tenths. Nasdaq finished ahead one and one-eighth.

Nearly than half the remaining detainees at Guantanamo Bay are slated to be transferred. A Pentagon spokeswoman tells Fox News 34 of the 76 still on site have been approved for transfer to countries that have agreed to accept them. 32 others will have their cases heard by a review board. The final ten cannot be moved because of the severity of the charges they face.

Up next -- filling the shoes of Indiana's governor as he runs for the White House along with Donald Trump.

(COMMERCIAL BREAK)

WALLACE: One of the consequences of Donald Trump's decision to put Indiana governor Mike Pence on the national Republican ticket is it removed him from a race for reelection in the Hoosier State. And as correspondent Matt Finn tells us, that could mean the GOP loss of a significant seat.

(BEGIN VIDEOTAPE)

ERIC HOLCOMB (R), INDIANA GUBERNATORIAL CANDIDATE: Saturday, I'll go up to a parade in Fort Wayne.

MATT FINN, FOX NEWS CORRESPONDENT: Eric Holcomb, the Republican candidate for governor is off to a late start. He had no plans to run but when Governor Mike Pence said yes to being Donald Trump's running mate, Holcomb stepped to the plate.

His opponent, John Gregg, is the former speaker of the state house. His campaign has been years in the making and has $6 million cash on hand. But Holcomb likes his chances.

HOLCOMB: The state has momentum and our campaign has momentum. So it plays to my favor.

FINN: That momentum, says Holcomb, comes from 12 years of Republican governors at the helm, $2.4 billion in reserves, and an unemployment rate below the national average.

HOLCOMB: We are the number one manufacturing state in the country. That's what John Gregg doesn't want to talk about.

FINN: Gregg argues a Hoosier family of four makes about $8,000 less than the national average.

JOHN GREGG (D), INDIANA GUBERNATORIAL CANDIDATE: He's going to talk about low unemployment rate, but Hoosiers are working harder and harder and seeing less and less in their paycheck.

FINN: By leveraging the proceeds the state gained when it sold off parts of its toll roads, Gregg wants to pour $3.2 billion into infrastructure, small interest community bonds, and broadband access. Holcomb's not buying Gregg's idea.

HOLCOMB: Raid, borrow, tax -- we've seen that movie before. I don't think the sequel would be any better.

HILLARY CLINTON, (D) PRESIDENTIAL CANDIDATE: We're going to put a lot of coal miners and coal companies out of business.

FINN: The Republican Governors Association recently released this ad tying Gregg to Secretary Clinton and her controversial coal statements. Gregg notes his entire family has a history in the coal industry.

JOHN GREGG, (D) INDIANA GUBERNATORIAL CANDIDATE: I find that attack just ludicrous.

FINN: The state's highly controversial religious restoration act passed last year by Governor Pence is a flashpoint in the race to replace him. Holcomb stands by it.

HOLCOMB: We can protect our religious freedoms and we can balance that and not accept any discrimination.

FINN: Gregg wants it repealed.

GREGG: We didn't have any examples of religious persecution in Indiana. That was a solution in search of a problem.

(END VIDEOTAPE)

FINN: And the nationwide uproar surrounding that controversial religious restoration act here in Indiana is not going away anytime soon. Republicans stand by it. Meanwhile, the Democratic candidate, John Gregg, tells FOX that he is religious but does not think the act leads to any type of discrimination. Gregg will be meeting with concerned clergy this weekend where he might have to defend his party's position. Chris?

CHRIS WALLACE, FOX NEWS CORRESPONDENT: Matt, thank you.

California is living through one of its costliest fire seasons in recent memory and the worst may be yet to come. So the state is asking Washington for financial help. But chief correspondent Jonathan Hunt tells us some say Congress is fiddling why California burns.

(BEGIN VIDEOTAPE)

JONATHAN HUNT: Already this year according to Cal Fire, there have been some 4,000 wildfires in California, scorching around 350 square miles. And we're only just getting to peak season. The problem is a tinder-dry landscape across millions of acres.

MIKE MOHLER, CAL FIRE BATTALION CHIEF: A crew pulls on scene, they're seeing fire conditions that normally we could maybe hit the head of the fire, where we're having to flank it now because that fire is moving so fast, so hot, that there's just no way to get in front of it.

HUNT: When you have 66 million dead trees and millions of acres of dry brush, the fires can spread simply too quickly in the initial going for firefighters to keep up with. The result, homes destroyed, lives upended. This particular home was destroyed two weeks ago by the sand fire here in the Angeles National Forest. So the message from the Forest Service to Congress is we can fight these fires more effectively, but that means more prevention, and for that we need more money.

ROBERT BONNIE, AGRICULTURE DEPARTMENT: That will keep us from having to rob Peter to pay Paul to take restoration and management dollars and use it for firefighting.

HUNT: Twenty years ago the Forest Service spent just 16 percent of its budget on fighting fires. Now that's up to 60 percent. But Congress hasn't acted on that Forest Service request to declare the biggest fires natural disasters and thus open up additional emergency funding.

(END VIDEOTAPE)

HUNT: The problem is not so much a political divide but a geographic one, with east coast lawmakers, perhaps predictably, not making west coast fires a priority. Chris?

WALLACE: Jonathan, thank you.

Hillary Clinton is still struggling with questions about her private e- mails. We'll ask our panel about that when we come right back.

(COMMERCIAL BREAK)

HILLARY CLINTON, (D) PRESIDENTIAL CANDIDATE: We need to stand up as a country and say that Donald Trump doesn't represent who we are and what we believe. America is better than Donald Trump.

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