Amazon CEO claims National Enquirer threatened to publish revealing photos

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Amazon CEO claims National Enquirer threatened to publish revealing photos

Publisher of National Enquirer says it will investigate Bezos' claims; panel reaction on 'Your World.'

This is a rush transcript from "Your World," February 9, 2019. This copy may not be in its final form and may be updated.

NEIL CAVUTO, HOST: It is the world's richest man vs. the tabloid with ties to the world's most powerful one, and the battle is on.

Welcome, everybody. I'm Neil Cavuto.

You know him as Jeff Bezos, the guy who runs Amazon, the one-stop retail shop that is now raising a battle -- that is, he is raising a battle -- that is the mark of the entire world, every corporation focused on what he is doing now, going after the publisher of The National Enquirer for holding embarrassing texts and photos over his head, and threatening to expose them unless he was stopping the investigation that he said of the private exchanges with his then mistress weren't warranted.

Now, Bezos, in an online post, saying -- quote -- "I prefer to stand up, roll this log over and see what crawls out."

Now federal prosecutors in New York are investigating whether there could be something new is charges and that The National Enquirer's parent company may indeed have violated a cooperation deal in the handling of this story.

The legal fallout from that in just a moment.

First to our Deirdre Bolton on where things stand now in this fast-moving story -- Deirdre.

DEIRDRE BOLTON, FOX BUSINESS CORRESPONDENT: Oh, Neil, where we stand now, a few news outlets reporting that federal prosecutors are reviewing The National Enquirer's handling of this story involving Jeff Bezos's affair, trying to determine whether or not the tabloid violated a prior immunity agreement.

American Medium, The National Enquirer's parent company, was granted immunity last year in connection with its assistance in an investigation into Michael Cohen, President Trump's former personal lawyer.

Now, that agreement required the company to agree to commit no crimes whatsoever. If the company violated that, it is in a heap of trouble. I spoke with Professor Scott Galloway at NYU. He told me that AMI is bankrupt, it just doesn't know it yet.

So it is a crime in New York to expose a secret or publicize material that will expose someone to contempt or ridicule. Jeff Bezos said that is exactly what The National Enquirer is trying to do. He is accusing the magazine of extortion and blackmail.

Now, this friction between the magazine and the founder and CEO of Amazon started a month ago. The magazine published an expose into this affair between Bezos and a former news anchor and helicopter pilot Lauren Sanchez. The National Enquirer said it had seen explicit photos of Bezos.

Bezos hired a private investigator to find out how the magazine got the text,s got the photos. And Bezos claims that it got anxious about the investigation and then increased its threats against him.

In a very bold strategic move on Thursday, Bezos was published everything. He published this list of racy photos that the magazine claims to have. He also published tons of e-mails that look as if they are from the lawyers representing The National Enquirer and magazine execs, so two categories to Bezos.

And he says, in my position, if I can't stand up to this kind of extortion, how many -- how can many people?

American Media responded by saying American Media believes fervently it acted lawfully in the reporting of the story on Mr. Bezos. Nonetheless, in light of the nature of the allegations published by Mr. Bezos, the board has convened and determined it should promptly and thoroughly investigate the claims.

So, Neil, as you know, there is lots of fodder here on legal ground. And we will see what happens. But, in the meantime, most people say they think that Bezos can remain focused on leading his company -- back to you.

CAVUTO: Just to be clear, then, Deirdre, now, he is saying, all right, I'm going to investigate how they got these texts, how they got all this stuff from...

BOLTON: Exactly. That was a month ago.

CAVUTO: And he wanted to know that. And they were getting a little antsy about that and urged, why don't you cease and desist because we have more stuff?

BOLTON: That's exactly right.

CAVUTO: And that's when he said, the hell with it, right?

BOLTON: That is exactly what he did, when they -- that is exactly his claim. When they started to threaten him by releasing more texts and more photos, he just said, OK, I'm going to publish them myself.

He also apparently took issue with the fact that, according to Bezos, The National Enquirer wanted him to put out a statement saying that he felt like the claims were not politically, personally motivated, a claim that he didn't want to make -- Neil.

CAVUTO: All right, and that's where the old extortion thing came in, because it was getting a little heavy-handed here.

Now, just before I get to Mercedes Colwin, a crackerjack lawyer who can help us with this, I want to update you on where Bezos was coming from. He had said that, of course, I don't want personal photos published.

(CROSSTALK)

BOLTON: Thank you. You're welcome.

CAVUTO: But I also don't want to participate in their well-known practice of blackmail, political favors, political attacks and corruption.

What he's saying, Mercedes, I guess, is, I'm not going to take this lying down.

MERCEDES COLWIN, LEGAL ANALYST: No, exactly.

I mean, look, anyone who's facing this type of situation -- and I have had clients who have had situations like this. They have to stand up and say, how did you get these -- how did you get these pictures, these text messages, this correspondence that now I'm facing threats about?

If you're going to go forward and do that, I'm going to get the legal authorities involved.

CAVUTO: All right, but they're saying, unless you cease and desist here, we have got more.

I guess he figured, the story was already out, the original story was already out.

COLWIN: Sure.

CAVUTO: He and his wife decided two days ahead of that to go ahead and announce that they were separating.

So maybe he thought damage was done. How much more damage could happen?

COLWIN: Well, that's also true.

Plus, American Media, their -- their side is saying, wait, it's a lawyer- to-lawyer correspondence. We're not talking about, we're going to go forward and we're going to publish this and we want money and we're going to destroy your reputation. All we're saying, we have a dispute between us, let's get this resolved, and here's the way that we can get this resolved.

CAVUTO: So, don't you think America Media...

COLWIN: So, that's at least their defense.

CAVUTO: ... and David Pecker, more importantly, the head of American Media, the owner of The National Enquirer, are they in some trouble here?

COLWIN: Oh, undoubtedly, if -- let's unpackage that.

One, you have got this immunity agreement. So, the prosecutors, federal prosecutors, are notoriously very aggressive. They're going to dig really deep into several things. One, how did you get this information? How did you get these pictures? How did you get this text message?

Did you commit a crime by doing that?

(CROSSTALK)

CAVUTO: Michael Sanchez's name comes up. And he is the brother of this woman involved in the relationship.

COLWIN: Right. Sure.

CAVUTO: Now, he denied any involvement. But he does have ties to Roger Stone, Carter Page, a host of others. What are we to make of all...

COLWIN: Well, that's -- so, if you start to look to see where this information, the documentation came from, and it's from legitimate sources -- look, if it's such Sanchez's brother who did it, how did he get that information?

CAVUTO: Right.

COLWIN: Maybe he committed the crime. I mean, these are things that you have unpackage.

So, first is, let's take a look of, how do you get the materials to begin with? Number two, let's look at the correspondence. The defense to that would be, this is a correspondence between lawyers. We're not talking -- we're not going forward.

CAVUTO: But it's not just lawyers. And here's where I need your help.

COLWIN: Sure.

CAVUTO: One of the e-mail exchanges involves The Enquirer editor, Dylan Howard, who writes, among other things -- sounds very threatening to me -- again on this idea of cease and desist and say that this investigation is not going anywhere or whatever.

COLWIN: Sure.

CAVUTO: "It would give no editor pleasure to send this e-mail," referring to what The Enquirer is doing. "I hope common sense can prevail and quickly."

In other words, you either cooperate with us, or -- it sounds like...

COLWIN: It does sound threatening.

And that's what the federal prosecutors are going to dig down deep into language of the communication, aside from the information, the documentation and text messages and pictures. They're going to look at all those exchanges and decide, did you actually threaten reputational harm?

Because that's what we're dealing with. We're talking about reputational harm here. They didn't send a correspondence and say, give us money?

(CROSSTALK)

CAVUTO: Threw it out there, I'm going to fight this.

COLWIN: Sure.

CAVUTO: The damage is done, the texts have come out, the pictures are up.

He obviously weighed that and said, the heck with it. I'm going to fight this.

COLWIN: Oh, undoubtedly.

And, look, he has the wherewithal, financial wherewithal, and the power and the influence to do it. Others -- and that's why he said, I'm going to stand on this principle and do it because others can't. They're not like I am. They don't have the station in life as I do.

CAVUTO: Yes. Why would you try to threaten or extort the world's richest man?

COLWIN: Ridiculous.

CAVUTO: But we will see.

Mercedes, thank you very, very much.

COLWIN: Always a pleasure.

CAVUTO: So, there's a lot we don't know.

This much, we do. It is becoming a heated political argument, even an argument on the markets.

Charlie Gasparino is joining us. We have got Jillian Melchior of The Wall Street Journal, Ted Williams, a FOX News contributor, former D.C. police detective.

Ted, let me get a sense from you about how this adds up. Obviously, what Bezos wanted to know, I'm responsible for these texts, those pictures, they're mind, some of these really lewd ones. I admit it. They're mine.

But how did they get out? How did they get in someone else's hands and then into The Enquirer's?

What do you think he is trying to get to the bottom of there?

TED WILLIAMS, CONTRIBUTOR: Hey, look, I'm going to staunch you with this.

This takes Kojak to figure this out. And I think you know who is Kojak is.

(LAUGHTER)

WILLIAMS: Look, the bottom line is, this was dumb and stupid.

And this -- I taught organized crime at American University. And these guys are acting like juvenile organized crime members.

CAVUTO: Who is acting like that?

WILLIAMS: Meaning AMI.

CAVUTO: OK.

WILLIAMS: It is unbelievable. And also you have some dumb lawyers at AMI to do this kind of thing.

So they are in some heap of trouble, Neil.

CAVUTO: All right, so, Jillian, one of the things that AMI put out, a statement a little later, they are fervently believing that they acted lawfully.

But, in between, I got a sense they're -- they're worried. Should they be?

JILLIAN MELCHIOR, THE WALL STREET JOURNAL: Yes, I absolutely think they should be.

I mean, one thing that's worse than coming across with a reputation for having an affair is a reputation for extortion and clumsy extortion, at that.

So, I think they should be very worried.

CAVUTO: You want to find out the ties, right?

Now, obviously, people can hack into anyone, even very rich companies and individuals. We have seen that before. So, is it your sense, looking at that, Jillian, that what -- what they're trying to find out is whether any of this is connected to a lot of friends that Pecker has at the White House? Are they actually making that leap?

MELCHIOR: Well, I think that's a question right now that's been raised with this.

I certainly don't want to speculate on that.

CAVUTO: Yes, that's what apparently they were chasing today.

But, Charlie, I mean, I'm wondering.

Obviously, Bezos put a lot of the line here, risking and going ahead and filing this and saying, I'm not going to drop back. But this is a family concern he runs. Amazon has a ubiquitous presence around the world.

Could any of this hurt him financially?

CHARLIE GASPARINO, SENIOR CORRESPONDENT: It has already.

The stock was down more than the market today. I mean, last I checked, the stock was down like 2 percent. I have to check it again. But it was more than the market. And, yes, it does have an impact. It was down almost 1.6 percent.

CAVUTO: A lot of that could be, it's an expensive stock and all that. So this could also be the slowdown fears. But you're right.

(CROSSTALK)

GASPARINO: Yes. Yes, it's all in there.

But, listen, Ted mentioned bad organized crime. Reminds me of that Jimmy Breslin novel "The Gang That Couldn't Shoot Straight." This was really bad on AMI's part.

Listen, it's not illegal, as a journalist. If I get information that makes you look bad, whatever, I can publish that. If I'm engaged in a criminal effort to obtain that information, that's a problem. And here's where it becomes even more interesting, is that letter.

Was there real extortion here? I'm telling you, I spoke with lawyers today. They break down half and half. Half say it is extortion. He's extorting -- AMI was going to get paid back by Bezos leaving him alone. Others say, unless there's a real money transfer, it's not really extortion.

So, it's a question here.

CAVUTO: All right, so, Ted, on that point, I just want to be clear, that the company is saying -- Jon Fine, the AMI attorney, is saying -- emphatically rejecting any assertion that its reporting was instigated, dictated or influenced in any way by external forces, political or otherwise.

But flip it around. What if it turns out it was?

WILLIAMS: Well, as a lawyer, I can tell you, I think that there is extortion and blackmail here, Neil.

I can tell you, when you look at those e-mails that were went back and forth, and it was, if you don't do the certain things, Bezos, we will publish certain information concerning you, that's troubling, I can tell you.

CAVUTO: All right, guys, I want to thank you.

We got some breaking news we're going to pass one before we take a quick break here.

This is AP quoting a Virginia official that Governor Northam has told his top staff that he will not, will not resign over this racist photo, despite the pressure to step down. It might have something to do with the two Democrats behind him are in a heap -- sorry -- a heap of controversy themselves.

But the indications are the governor isn't going anywhere.

We will have more after this.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

REP. JERROLD NADLER, D-N.Y.: Have you ever been asked to approve any requests or action to be taken by the special counsel?

MATTHEW WHITAKER, ACTING ATTORNEY GENERAL: Mr. Chairman, I see that your five minutes is up. And so...

(END VIDEO CLIP)

CAVUTO: It was a little funny.

Anyway, that was the nicer stuff.

The acting attorney general, Matthew Whitaker, grilled by the House Judiciary Committee today and on and on. It's controlled by Democrats. So there are new sheriff in town.

Fox News Channel's Catherine Herridge following it all.

What happened? What's the end result of this?

CATHERINE HERRIDGE, CHIEF INTELLIGENCE CORRESPONDENT: Well, the end result, Neil, is that we had confirmation from the acting attorney general.

He testified that he has not had contact with the president about the special counsel Robert Mueller probe. He has not cut off money to the investigation. He has not interfered in the investigation. Here's the key section from the six hours of testimony.

(BEGIN VIDEO CLIP)

WHITAKER: I do not intend today to talk about my private conversations with the president of the United States.

But to answer your question, I have not talked to the president of the United States about the special counsel's investigation.

(END VIDEO CLIP)

HERRIDGE: Another exchange is getting a lot of attention, because, in recent testimony, we heard from the nominee to be the next attorney general, William Barr, and the deputy attorney general, Rod Rosenstein.

And when they were asked about the president's characterization of the Mueller probe as a witch-hunt, they said that they didn't share that opinion. This is what Whitaker had to say on the issue today:

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Are you overseeing a witch-hunt?

WHITAKER: Congressman, as I have mentioned previously, the special counsel's investigation is an ongoing investigation. And so I think it would be inappropriate for me to...

UNIDENTIFIED MALE: But you wouldn't oversee a witch-hunt, would you? You would stop a witch-hunt?

WHITAKER: Congressman, it would be inappropriate for me to talk about an ongoing investigation.

(END VIDEO CLIP)

HERRIDGE: At the end of the session, Democrats said they had still more questions for the acting attorney general.

But the reality is, Neil, is that they're up against a very tight timeline. Whitaker testified that he only expects to be in this job for another six days. That's because, by midweek next week, the confirmation of William Barr is expected to be complete.

CAVUTO: All right, Catherine, thank you very, very much, Catherine Herridge.

HERRIDGE: You're welcome.

CAVUTO: So where is all of this going?

Let's go to Karl Rove on this.

Karl, man, oh, man, I mean, it was all theater. And I know we see that in heated political times, but what did this prove?

KARL ROVE, FORMER SENIOR ADVISER TO PRESIDENT GEORGE W. BUSH: Not a darn thing, except that the Democrats are already out of control and we're just in February and the start of the new Congress.

I couldn't believe how many times they hectored him, how many times they interrupted him, how many times they tried to keep him from answering.

I thought Whitaker, whom I really -- I knew him briefly from when he was U.S. attorney under the George W. Bush administration for the Southern District of Iowa. But I thought he handled himself well in the midst of what was a circus from start to finish.

He got off the funniest line, probably unintentionally, of the day, when he said that the chairman's time was up.

CAVUTO: Yes.

ROVE: Even Nadler, the chairman of the committee, had to have a little smile across his face.

But they were hectoring him, interrupting him, Demings, Johnson, you name it. The members of the committee I thought proved themselves to be outrageous and rude and unconstructive in front of the American people.

This is not going to do the Democrats good -- good over the long haul. If we see more hearings like this, it's going to simply diminish the standing of the Democratic House of Representatives in the minds of the voters.

CAVUTO: But doesn't reinforce an image that, whatever party is in charge, they can call the hearings and the investigations and rope people in or subpoena them to appear? Republicans were doing it during the Obama years. And we're seeing it play in reverse.

And this is a preview to coming attractions these next two years. What do you think?

ROVE: Yes. Well, I think that's right.

But I got to tell you, the tone, I thought, was particularly nasty and unconstructive today. I can't -- I mean, how many times did he start to answer, and one or two words into his answer, he was cut off, and somebody would say -- would shriek at him, yes or no, yes or no?

I mean, this wasn't an attempt to get the information. This was a -- this was a -- sort of a mock trial. And it was completely unconstructive. They investigated -- this is an oversight of the Department of Justice and they were acting like they were the Senate Judiciary Committee trying to confirm Whitaker in his job as acting attorney general.

CAVUTO: And he's only the acting guy.

ROVE: Absolutely.

CAVUTO: He's going to be out very, very soon, assuming that Barr is, as he has within committee, voted on and approved within the full Senate.

ROVE: Right.

CAVUTO: So what was the point of that?

ROVE: Well, the point of this was to try and -- we had a lot of outrageous theories, particularly from Congressman Raskin of Maryland, about nefarious things that had gone on that -- and the real purpose was, did you talk to the president about the Mueller investigation?

And he made it clear he had never had a conversation with him about it. Then the question was, did you do anything to interfere with or to slow down or limit the Mueller investigation, which the answer was no.

I mean, this one could have been answered easily by one or two sets of questions from Democrats. But they all had to get their licks in. And I thought it was outrageous.

Now, you're -- you're right. Both parties tend to do this kind of stuff. But this was way over the top. And it's right now at the beginning. This set the tone. The Democrats are going to have to watch it. If they think this is constructive for them, they're kidding themselves.

CAVUTO: We will watch closely.

Karl, thank you very, very much. Sorry with all the breaking news.

And, by the way, among the breaking news items, this report right now that Virginia's Governor Northam is not -- again -- not leaving. He has apparently told his staff that -- the fallout after this.

(COMMERCIAL BREAK)

CAVUTO: All right, not exactly, hell no, I won't go, but for now Virginia Governor's Ralph Northam making it clear that he's not going anywhere anytime soon, telling his top staff that, despite the controversy over that racist photo, he isn't going anywhere.

The Virginia Republican chairman, Jack Wilson, with me right now.

Good to have you, Jack.

I'm wondering what you make of this. He might have calculated, given the controversies around the two who are in line, next in line to replace him, Democrats both, they're in a heap of trouble and controversy too, so he figures, I'm safe.

JACK WILSON, VIRGINIA GOP CHAIRMAN: Well, I don't know if he is safe.

He pretty much said last Friday night that he wasn't going anywhere, he wasn't going to resign. That's the night he admitted he was in the photograph. Then, the next day, on Saturday, when he reversed himself, he again said he wasn't going anywhere.

CAVUTO: Yes.

WILSON: Subsequent to that, he's had pretty much every national Democrat running for president say he needs to resign. He's had the Legislative Black Caucus say he needs to resign.

(CROSSTALK)

CAVUTO: Everyone has.

But what I'm wondering about is the fact that his lieutenant governor is still facing these assault allegations, and the back and forth with that, the attorney general, Mark Herring, also has photo issues, that it kind of at least gave him some breathing room.

What do you think?

WILSON: Well, he may be looking at it that way, but he's -- he's the only Democrat that the Democrats have called on to resign thus far.

So, he may be playing a little politics too. But I think the Democrat Party generally has now switched into a political mode, instead of a principle mode.

CAVUTO: Well, answer me that, because you know the state well, obviously.

But it sounds to me -- I have been reading a lot of the Virginia press -- and they have been, I'm not saying going light on Attorney General Mark Herring on the issue with his photos that go back even earlier.

But it's like a very, very careful approach. No one's been telling him you got to go, you know?

WILSON: Well, that's right.

CAVUTO: Because the next stop is a Republican.

WILSON: Is a Republican.

And I think that's why they have now switched from a principled position to one where power and politics is overtaking principle, because they recognize that, if the governor goes, which they have called him to do, the lieutenant governor's next.

And, as you mentioned, he has got a serious sexual assault allegation pending against him that still needs to be investigated. So, the attorney general, Herring, is really their safety net. So they can't quite get rid of him yet, because if he goes, and then the lieutenant governor goes, then they're in a world of hurt.

So I can see where they're going light on the attorney general just because they're now focusing on power and politics and have thrown principle out the window.

CAVUTO: Yes.

Jack, this is a dumb question my part, but how did the Gillespie campaign miss this? I mean, yearbooks are not hidden out of sight. Obviously, people knew about this. And it's not as if this was some top-secret document.

How did the research team miss it?

WILSON: Well, I'm not sure, frankly.

And, again, the governor first ran for the state Senate. It didn't come out then. He then ran for lieutenant governor. It didn't come out, and then ran for governor. It could very well be that the whole focus on high school and college yearbooks didn't come to the forefront until the Judge, now Justice Kavanaugh hearings. And now people are looking back.

CAVUTO: No, you're right about that. That was post that.

But I mean, just thinking, in a common sort of -- when you gather research on someone, and the higher up they go, the more research people do, that they would go back and look at his high school, his college years.

I think sometimes that can get overdone, as we saw maybe in Kavanaugh's case, but what the heck?

WILSON: Yes. I really don't know. I haven't heard a good explanation for why it wasn't found, other than perhaps that at the time nobody was really looking at old college yearbooks to see if there was anything in there of political importance.

CAVUTO: How do you feel now, whether you're Republican or Democrat, that it is, it's part of the fair game out there?

I always tell my kids, be careful what you're writing and saying on social media. You don't know how far back people go. But now this is going back to people's high school, college years, whatever. And however controversial it is, it's open season all this stuff.

WILSON: Well, and I think that is the case.

And, to a large extent, I think the Democrats in Virginia and Democrats nationally have set that standard. They have sort of articulated a policy that, if a Republican does anything out of the norm, it's considered racist and should be -- and the person should be removed from office.

And so now that standard in place makes it very difficult, I think, for the Democrats to live up to the standards that they have set. And so yearbooks, and if you're in blackface in a yearbook in the 1980s in Virginia, that's abhorrent, and you shouldn't be able to hold elective office because of it.

CAVUTO: Yes, all right, we will watch what happens.

Jack Wilson, Virginia GOP chairman, thank you very, very much.

WILSON: Thank you.

CAVUTO: All right, well, if this is the new sort of regimen we have to go through, go back to yearbooks, look at this, then how do we move going forward, and how exhaustive does this get?

Bobby Jindal on that after this.

(COMMERCIAL BREAK)

CAVUTO: Maybe this is why Virginia's governor isn't stepping down just yet.

A second woman has come forward accusing Virginia's lieutenant governor of sexual assault, and on it goes.

The read from Bobby Jindal after this.

(COMMERCIAL BREAK)

CAVUTO: What is it with Virginia?

Now The Washington Post is reporting that a second woman has come forward accusing the Virginia lieutenant governor of sexual assault. We already told you a little bit before that, and maybe because of that report circulating around, that the present governor, Northam, has decided and least told his staff he's not resigning, at least not now.

The former Republican Governor of Louisiana Bobby Jindal with us right now.

Governor, always good to have you.

BOBBY JINDAL, R-LA, FORMER GOVERNOR: Neil, thank you for having me.

CAVUTO: They're running out of backup choices for governor.

(LAUGHTER)

CAVUTO: The order and the events and the series of things that were missed along the way, what do you make of all this?

JINDAL: Well, first of all, I think the governor should have to resign three times, not just once, but three times, first for -- and people are beginning to forget this -- horrific -- his horrific comments about infanticide.

The guy is a pediatric doctor. And a week before this controversy erupted, he made some really awful, atrocious comments regarding late-term abortions and, again, seemingly endorsing infanticide.

CAVUTO: But that's not the issue here, as offensive as it might be to you.

The issue here is something that was out in the open, I guess, for a long, long time, but no one ever pursued it. Now, forget about opposition research and how that failed Republicans.

What do you make of this and what it could say for the future and what candidates in the future have to do?

JINDAL: Well, sure.

Well, say -- look, this is a completely offensive picture. Not only do you have somebody in blackface. You have also got somebody in a Klansman robe in this picture. And some people have tried to suggest, well, this was more common in the '80s.

That is nonsense. This was not common in the '80s. You and I were both alive in the '80s. We didn't see these kinds of pictures or costumes or behavior.

(CROSSTALK)

JINDAL: The third thing I would say is, he's also been so slippery in his explanations.

First, he came out and apologized, said he was in the picture. The next day, he said he wasn't in the picture. I don't know how he could be effective. I don't know how anybody could trust him.

But, Neil, you raised a good point. So, I absolutely think he should go. I think this picture was offensive. I think his explanations have defied common sense. You just -- there's a lack of integrity there.

But, Neil, you made a good point. Look, setting that aside -- and this is really important -- the reality is, we also have to make an allowance. The Democrats have created this gotcha climate.

They did it during the Kavanaugh hearings, where they're going to go back into people's childhood, their high school years, their teenage years. The reality is, I think we have got allow people to make mistakes when they were younger, to show moral growth, to be genuinely remorseful.

And if they have lived good lives since then, I think we have got to admit, as a country, we're not going to find -- if we're only looking for perfect people to be our public leaders, we're not going to find perfect people. Maybe there are a couple on TV, but they're not in political office.

(CROSSTALK)

CAVUTO: I hear you.

But, I mean, the lieutenant governor, the Justin Fairfax situation, with the assault and now that a woman with allegations of her own, that is -- that's very serious stuff. And therein lies the rub and the conundrum.

Do you support a guy like that, or do you listen to the women, hear them out? I mean, it's the same dilemma that a lot of people were facing in the Kavanaugh situation. I'm just wondering where this one goes.

JINDAL: Well, look, clearly, you have got -- I think you have got a credible woman who's come forward. You mentioned there may be another allegation. Clearly, they need to be heard.

The New York Times is now saying there were contemporary conversations from the first woman making accusations that are consistent with what she's saying now. So, this looks credible. They need to be heard. And they -- if they want to be heard, they need to be heard.

Then you have got an attorney general who, by the way, two days before his own revelation, was saying the governor should step aside. Just to spare him the charge of hypocrisy, I think he should step down as well. He created his own bed.

(CROSSTALK)

JINDAL: You're right. You wonder what is going on in Virginia. Every time you turn around, there's new revelation, a new scandal. At least they're making Louisiana look good by comparison.

(CROSSTALK)

CAVUTO: OK, well I don't know. I mean, there was a Republican too, Tommy Norment, who is the Senate majority leader, who acknowledged controversial pictures in a 1968 yearbook.

And I'm not saying that it's an equal number or should be an equal number, but something is fairly widespread there. And I'm just wondering what you make of that.

JINDAL: Well, look, I think, certainly, we need to condemn any kind of racism. And, obviously, I don't condone anybody that tries to say these pictures were just innocent pictures or it was a different time. That's nonsense.

CAVUTO: Yes.

JINDAL: These were racist pictures. These were horrific pictures. No excusing these pictures.

I think the governor's reaction has been bizarre, to say the least, since this has unfolded.

I think the lieutenant governor, his allegations are in some ways even more serious. Now you have got one woman. You mentioned a second woman coming forward with seemingly credible allegations. They need to be heard.

And I think the legislature needs to do that.

CAVUTO: Right.

JINDAL: You have got an attorney general who jumped out there and said the governor should go. Now he's got his own problems.

So these aren't minor issues. I still think those Christians and others who believe in moral growth, setting these three men aside -- and maybe there's a fourth -- you mentioned the Republican -- it shouldn't -- it shouldn't be partisan. You're right.

It doesn't matter if it's a Republican or a Democrat. I do think we need to allow for moral growth. And I hope we get away from this gotcha climate where we say, we're going to be digging into kids' yearbook pictures and we're going to be digging for every kind of fallibility.

You mentioned I have got three young kids. And I want them to be able to live their lives and make the normal kinds of mistakes that kids make.

Now, obviously, that's not to excuse these kinds of racist pictures.

CAVUTO: Right. All right. Well said.

Sorry to jump on you there. That hard break comes whether we are chatting or not.

But, Governor, very good seeing you again. I do appreciate it.

JINDAL: Great to see you, Neil. Thank you.

CAVUTO: A real quick look at the corner of Wall and Broad today. Though down 63 points today, we were up on the week. And in case you're counting, that's seven straight weeks we have been doing that. And that is the best performance for the Dow as far as a consistent stretch of gains in the better part of two years.

We will have more after this.

(COMMERCIAL BREAK)

CAVUTO: All right, it was a bumpy ride today, but you know what? For the week, we were up. We up on all the major indices.

And the Dow gets a special star today, because that's seven weeks in a row. We're off to a blistering pace for the major markets this year, our markets, I should say. Foreign markets are not so lucky.

Swiss America chairman Craig Smith on that.

I know there are ongoing worries about trade, and whether it's going to develop into something, maybe this saga going on in Washington, whether we see another shutdown and all that stuff. I guess, as you remind me many times, markets climb a wall of worry, but you're still worried.

CRAIG SMITH, CEO, SWISS AMERICA: I am, Neil.

But I must tell you that I'm not as worried as before, because look at the market reactions to the lack of the meeting with President Trump with Xi.

CAVUTO: Right.

SMITH: I think -- I think, right now, Neil, that we are going to get a deal.

But let's keep in mind, from a from a 35,000-foot view, Neil, what we're trying to accomplish. I think that's very important that we focus on this. In 1980, China had a $305 billion economy. Today, it's 12-point -- excuse me -- $305 billion economy.

Today, it's $12.5 trillion. How did they get there, Neil? Cheating, stealing, using unfair trade, manipulating their currency. Now we're saying to them, hey, we want you to make structural reforms. In other words, we want to abandon all that and take this new approach.

That's going to take time, Neil, and that's not going to happen overnight.

(CROSSTALK)

CAVUTO: And I don't know if it's so -- anyway, I mean, I get a sense, especially given the fact that the president and Xi Jinping will not meet before these so-called tariffs kick in the beginning of March. Then what?

SMITH: Well, if they don't meet, I have to believe -- and, again, this is speculation my part, Neil.

CAVUTO: Sure.

SMITH: But I have to believe that Lighthizer and Navarro, Mnuchin, all these guys are working behind the scenes.

Keep in mind, our guys are going back to Beijing on Monday. I mean, these talks are still happening. Just because the president and Xi haven't sat down, that doesn't mean these talks aren't being productive.

And, look, I watched Larry Kudlow the other day on the program. And while he wasn't real optimistic, he wasn't pessimistic either, Neil. And so I'm very confident that we are going to get a deal.

And getting back to the market, look at the market reaction this week, Neil. Like you said, it was up on the week. This didn't cause the market to sell off hard. So I think people are overplaying the whole issue of China as it relates to the trade talks.

CAVUTO: And earnings are pretty solid, right, a lot stronger than people thought they would be.

Do you think that continues?

SMITH: I do, Neil.

CAVUTO: All right.

SMITH: I think the underlying fundamentals in the American economy are strong.

My only concern -- and we have talked about this before -- is the slowdown that we see happening in Europe, the slowdown that we see happening over in Asia.

I mean, when you have China's slowing at the rate that they're slowing, Neil, can they afford, can they really afford, Neil, to stop their exports to America? I think we have the upper hand in these negotiations.

I think the reason why we haven't had a deal is because of the enforcement mechanism. China wants to be able to have enforcement mechanisms that they can get away with, to work around.

CAVUTO: Well put.

SMITH: That's not going to happen with this president, Neil.

CAVUTO: All right, we shall see, my friend.

Thank you very much, Craig Smith. Have a good weekend, Swiss America chairman. Good read of these markets.

All right, the one deal we're a little bit more optimistic about isn't so much about China and the U.S., but about Democrats and Republicans in the U.S. on this whole border stuff -- after this.

(COMMERCIAL BREAK)

CAVUTO: All right, they really want to get this all done by next Friday, next Friday, technically, and that's the make-or-break time.

But to get to next Friday, to have a border deal, you have to back-time it a little bit.

And here's Chad Pergram with the latest on that and how that's looking.

CHAD PERGRAM, SENIOR CAPITOL HILL PRODUCER: Yes, they hope to get this done sometime over the weekend, and maybe file the text on Monday.

Now, what I have been told in the past couple of hours here is that, generally, the conferees on the border security conference committee are optimistic. One senior source, though, told me that they were a little more pessimistic today than they were yesterday.

The other thing that we know is that President Trump is not going to get anywhere near the $5.7 billion he requested. We were hearing maybe even $2 billion. But now I have been told in the past couple of hours that number is going to be closer to $1.6 billion.

At the end of the day, Democrats feel like they went from zero to $1.6 billion. So they have to get something back. One of the things we're hearing are restrictions on how that $1.6 billion could be used, and also interior enforcement limitations, in other words, how many beds and how many ICE agents.

Those are going to be the key things in the next couple of days, Neil, because they have to get this text posted on Monday, so the House of Representatives can adhere to its so-called 72 hour rule, post the text 72 hours before they vote on it.

And they also have to move it through the Senate. So that is why this turning radius is so tight by a week from today.

CAVUTO: And the president could be a wild card.

PERGRAM: Right.

And I talked to a couple of people today. Some were pretty skeptical, wondering if the president might do a double-switch on them. Mitch McConnell, the Senate majority leader, felt burned after putting that interim bill on the table back in December, and he didn't sign it, and we had a government shutdown for 35 days.

CAVUTO: Oh, say it -- say it ain't so.

All right, Chad, thank you very, very much, Chad Pergram in Washington.

PERGRAM: Thank you.

CAVUTO: We don't know how this is all going to fall out. We do know they're optimistic they can make a deal.

We will see -- more after this.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

CAVUTO: Would you consider running for president? Your name has been bandied about.

REP. TIM RYAN, D-OH: Yes. Yes, I will, and I have, and I am. And I'm having conversations right now.

CAVUTO: Wait a minute. You are? You are definitely going to run for president?

(LAUGHTER)

RYAN: No, I didn't say that. I am considering -- that was good, though, Neil. You're good at this. You're good at this.

CAVUTO: And the crowded field doesn't dissuade you, right? It doesn't dissuade you at all?

RYAN: No, no, no.

And I think the more ideas we have out there, the better.

(END VIDEO CLIP)

CAVUTO: He did say was running, right?

Ohio Democratic Congressman Tim Ryan sure sounds like a guy who is running for the White House.

And that got a lot of you writing.

And my buddy Dion is back to deliver some of the more noteworthy doozies.

Good to see, bud.

DION BAIA, CONTRIBUTOR: Good to see you. Thank you for having me back.

We got a lot this week.

Debi tweets: "Is there any Democrat not running for president."

CAVUTO: That's a very good point. It's crowded, a very crowded field.

(CROSSTALK)

BAIA: Robert, he sends to us: "And why not? He may be their best option."

CAVUTO: He's very moderate, very moderate. Can you be very moderate? I guess you can.

BAIA: Yes. Yes.

(CROSSTALK)

BAIA: All right, Dennis: "Keep going, there won't be any Democrats left to run the government. They will be all out campaigning."

Well, I'm sure someone will be there to do something.

Imelda: "He is one of the most moderate voices in the party. He has no chance with the extreme left his party's advocating."

CAVUTO: It is kind of hanging left.

BAIA: Yes, yes.

Susan: "Soon it will be easier to name the Dems who are not running."

CAVUTO: Well, the only one that I think is some prominence I can think of here, is probably the freshman Democrat Alexandria Ocasio-Cortez.

She can't because she's all of 29 years old, too young to run right now, but not too young to influence those who already are, especially with her pitch this week targeting emissions from planes and even cows with what she calls a Green New Deal, but a lot of you call just a raw deal.

I guess, Dion, that was coming across loud and clear.

BAIA: Yes. Great movie, Neil. Yes.

Mike tweets: "Stop flying in planes. OK."

SenseiT: "There's going to be a lot of angry pilots out there."

CAVUTO: Especially if you get rid of the planes, sure. What do they do?

BAIA: Well, I don't know. They will just have to drive in cars.

CAVUTO: Buses.

BAIA: And buses or trains.

CAVUTO: Solar-powered.

BAIA: Yes, all kinds of stuff.

Dana: "Wow. No planes. No cars. No houses. No coal. No fuel. No sense."

(CROSSTALK)

BAIA: Are there no prisoners?

(CROSSTALK)

BAIA: Obscure reference. I'm sorry.

James: "How about giving her a mule and ride from New York to Washington? It might take a few weeks to get there. But, wait, they pass gas. So, she will have to walk."

If we have not learned anything from Francis the mule, is that they do pass gas.

CAVUTO: They do. And it's a big problem.

BAIA: Yes, especially if you're on them.

(CROSSTALK)

CAVUTO: Well, that's fine.

BAIA: Michael: "Nancy summed it up perfectly. The new green dream."

Tony: "Send her directly to Venezuela. Gift from the USA."

That's a little harsh.

CAVUTO: Yes. Yes.

BAIA: And Wen has one Donald Trump may like: "#MAGA. Make Alexia go away."

CAVUTO: Alexandria.

BAIA: Alexandria.

CAVUTO: That's referring to the congresswoman.

BAIA: Yes.

CAVUTO: I have got my own, Dion, because I had time to think here while you were reading.

Make America gorge again. Somebody saw the show last Saturday. We had an extraordinary chef, Rob Del Balzo, and his super snackadium. It was in this studio, and it was made just of food. Take a look.

(BEGIN VIDEO CLIP)

CAVUTO: This is all food in the shape of a stadium.

ROB DEL BALZO, CHEF: Do I look like I would create anything else?

(LAUGHTER)

CAVUTO: This trend, because I have seen variations where they make a food pyramid and all that stuff, and that -- that's something that started with the Super Bowl, right?

(CROSSTALK)

DEL BALZO: Of course. What other reason would you have to get a great big group people to eat a ton of food? Come on.

We have some sandwiches in front. It's my signature pulled pork.

And my buddy Vic from Vic's Deli donated a an Italian combo, Vic's Deli in Mohegan Lake. And it's awesome stuff, awesome stuff.

CAVUTO: Incredible. Guys, I know everything that's here. I know everything that is here.

(CROSSTALK)

CAVUTO: And Joel is pointing a sign that says we have a hard break coming up. I'm watching. I'm watching.

DEL BALZO: And I'm the bodyguard.

CAVUTO: Exactly.

(END VIDEO CLIP)

CAVUTO: You know, that was gone in seconds, Dion. Seconds.

BAIA: Yes, I know. I know. Yes, it's amazing.

You had a lot of fans with this one, Neil.

Joel: "Love the segment. I hope you share it, the feast, with your guests and crew."

CAVUTO: They were the only ones that had it. Like a puff of smoke.

BAIA: Yes, I heard everybody just whisked it away up to your office.

(CROSSTALK)

CAVUTO: No, no, no.

BAIA: Good. Good. Good. Yes.

David: "Your darting eyes, watering mouth and food flattery say it all."

CAVUTO: And that -- I don't even have to have the food there.

(CROSSTALK)

BAIA: You just start thinking about food.

Ed via Facebook: "Neil is now in charge of catering all White House events."

I didn't know that.

CAVUTO: I don't know about the White House. I don't think...

BAIA: Food taster maybe.

CAVUTO: Yes.

BAIA: Donna: "Snackalicious. The food, not you. OK, you too."

CAVUTO: Oh, you little rascal.

(CROSSTALK)

BAIA: Bob: "Turn it upside down, and you could wear it as a hat, albeit a little snug."

CAVUTO: Oh, stop it with the head comments.

BAIA: Not my words, Neil.

CAVUTO: Oh, you wrote it.

(CROSSTALK)

BAIA: I did not.

(CROSSTALK)

BAIA: Go on.

And this one from Aunt Marie, who knows you well, Neil: "Where's the cannoli?"

CAVUTO: Oh, like I haven't heard that before. Go ahead.

BAIA: We all love cannoli.

CAVUTO: You're getting very, very good at this.

BAIA: You lie.

CAVUTO: Well, I am, because it's written here, and they want me to say, Dion is getting very, very good at this.

(CROSSTALK)

CAVUTO: Apparently, though, you do have a lot of fans, and I wonder if you just pay them.

BAIA: Yes, I paid them all.

CAVUTO: OK, good. Just trying to clarify.

BAIA: All two of them.

Susan tweets: "Dion Baia is the best. We need more of him, greatest segment ever."

CAVUTO: Oh, stop it.

BAIA: Thank you, mom.

CAVUTO: Yes.

BAIA: Rick: "Hey, Neil, I enjoyed this spot. It was funny and some serious points, but not taking yourself too seriously. Thanks."

When do we ever...

(CROSSTALK)

CAVUTO: Referring to this segment or the snack segment?

BAIA: Right now.

CAVUTO: Right now, this.

(CROSSTALK)

BAIA: Yes, I am on first.

(CROSSTALK)

CAVUTO: OK.

BAIA: Ravenfanatic: "Keep bringing Dion back."

Thank you again, mom.

Tim: "It isn't the Dion Baia show. Who is the heavy guy behind the desk?"

CAVUTO: Really, here we go.

(CROSSTALK)

BAIA: I didn't write that. No.

CAVUTO: Why didn't you add the camera adds 50 pounds?

BAIA: It doesn't, though.

You're like Captain Kirk to my Spock. Bones. Red shirt.

(CROSSTALK)

CAVUTO: All right, that's fine. Yes.

BAIA: OK, Mona: "Neil Cavuto is the most handsome, debonair figure of manhood on television."

CAVUTO: Oh, you little rascal.

BAIA: "And then he's Italian. I set my DVR to record all his shows, so I never miss a single show."

(CROSSTALK)

CAVUTO: Not the only person who does that.

BAIA: Yes, everybody does that. I do that.

CAVUTO: Sure, yes, yes.

BAIA: Of course, yes.

James in Florida e-mails "Sorry, but I am not joining FOX Nation, because I do not like Cavito."

CAVUTO: Yes.

BAIA: "Tell him to join MSNBC or CNN."

Neil, join MSNBC or CNN.

CAVUTO: I'm going to talk to this Cavito.

BAIA: I don't know who this Cavito is, because, whoever it is, we're going to find out who is this Cavito is.

CAVUTO: I'm not on FOX Nation.

Are you on FOX Nation?

BAIA: I'm not on FOX Nation.

CAVUTO: I'm not. I'm not.

BAIA: But I guess people should demand it?

CAVUTO: Yes.

(CROSSTALK)

CAVUTO: I don't know, this one guy keeps who saying I should go.

(CROSSTALK)

BAIA: Well, listen, Cavuto, get we got to go find Cavito. And we will get Cavito to go on...

(CROSSTALK)

CAVUTO: And I will give him a piece of my...

(CROSSTALK)

BAIA: I'm going to get him.

(CROSSTALK)

CAVUTO: Yes, all right.

Thank you, Dion. Great job, again.

Just a sampling of some of the letters and comments we get over the course of a week. We have fun here. We do take the news seriously. We do not take ourselves very seriously.

It's the same motif we follow on weekends, 10:00 a.m. to noon on "Cavuto Live." We're following some fast-moving breaking developments.

But I will tell you this. We do have a food surprise for you. I'm just going to say the word pizza. This, you will not want to miss.

See you tomorrow.

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