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Nike nixes patriotic shoe deemed 'offensive'

Nike pulls 'Betsy Ross Flag' sneaker; Martha MacCallum and Jesse Watters react during this week's 'Wednesdays with Watters' segment.

This is a rush transcript from "The Story," July 2, 2019. This copy may not be in its final form and may be updated.

MARTHA MACCALLUM, ANCHOR: Hello there, Mike. Good evening to you. Thanks very much. We are getting started up here in New York. And President Trump's campaign has raised over a hundred million dollars. That is more than double what President Obama had raised at the same point in the re-election cycle.

The Trump campaign is launching a digital campaign an app that manager Brad Parscale, who's joining me exclusively in just a moment, says will create an army of 2 million volunteers to get out the vote.

They also have spent more than $14 million on Facebook ads. That is more than the campaigns of Harris, and Warren, and Gillibrand, and Sanders, and Biden, and Klobuchar, and Buttigieg by some estimates even if you combine them.

All of this from a president who according to his campaign manager, one last time utilizing just a plain, a cell phone, and Twitter. And who bragged at the time about how little it took for him to take down the establishment.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT: Jeb Bush, your -- here's a guy spends $100 million on the campaign, and he's down at two percent. I spent the least money, and I have the highest rating. I spent the least money think of it.

(END VIDEO CLIP)

MACCALLUM: Let's bring in President Trump's campaign manager tonight, who joins us exclusively on THE STORY, Brad Parscale. Brad, thanks for coming back to the program tonight. Good to have you here.

BRAD PARSCALE, RE-ELECTION CAMPAIGN MANAGER FOR DONALD TRUMP: Thanks for having me on again, Martha.

MACCALLUM: Thanks for being here. And it's interesting when you look back. I mean, that, that was really one of the bragging points of the Trump campaign last time that it was lean, and that it didn't need all the money that the other candidates needed. Why do you need so much this time?

PARSCALE: Well, I mean, I shall have President Trump, and I still have the power of his Twitter account, the power of his voice and everything else. But now we have on the top of that. We didn't need that in 2016, the president -- and in 2020, we have now a more opportunity, we now have the power of incumbency. And we have the power of the money than what it can do and help us build out a ground game, an operation across the country to turn out to vote.

MACCALLUM: So, you have said that your job is to sort of get to even that one-tenth of one percent that is out there.

PARSCALE: Yes, madam.

MACCALLUM: Who is -- you know, staying home or somebody in a district that you really need with all of this money and with this -- with this machine that's getting ready. Who's in that number, who are those people?

PARSCALE: Well, look, there's millions of people across the country that want to vote for the president. They need to have be pushed to go out to vote. You know, there is millions. And our job is to find them. Get them to turned out and deliver them to the polls. And I think that's going to show up and I think that's where building. And the money that we have now allows us to kind of look at each donor now build better models, build better audiences. And really understand who of Trump supporter is today, so we can deliver more tomorrow.

MACCALLUM: But when you look at, you know, I remember last time around you talked about how you knew what district you needed to be in. You knew where you needed to go as the campaign move forward.

PARSCALE: Yes.

MACCALLUM: So, now when you look at it, which voters, which areas are you, you know, feeling like, look, we've got this money, this is where we need to spend it, on Facebook and elsewhere.

PARSCALE: Well, look we individualize the people vote. These donors coming in now. Let's talk about the 725,000 donations, right? And when you look at those kind of donations, we can take that model, those people. And then, we can determine where they are, we can -- nothing's stronger for President Trump, to know it's a voter than a donation today.

So, we can model off that we know where they are. And so, that's how they are. We don't look at them like this is how this person, that type of person. We model off that data, and then we find them later. And that's - - is very helpful to have all these donations so early.

MACCALLUM: Yes, you know, a lot of people have said, you know the president should do this or that just sort of court voters who may have -- you know drifted away from him. Is that where your focus is or are you more focused on -- you know, sort of bringing out the base and increasing the base with evangelical voters. I've heard that you want to spend, you know, even more time and money bringing some of those voters out. Is that true?

PARSCALE: Look, we are building out a large coalition program from Latinos for Trump, Black Voices for Trump, the Faith-Based. All kinds of different coalitions. That's an important thing for us to do. We need to turn out those voters.

MACCALLUM: Yes.

PARSCALE: But, overall, what we're trying to do is -- there's hundreds of millions of -- not hundreds of millions, but 100 million people, plus. Tens of millions of people that will vote for President Trump.

You know, only about 70 percent or so the population turns out to vote. We need to find those people, we need to get them to show up and get them to vote. It's not about trying to -- you know, go out there and try to -- you know, to find some voter and change his mind, it's about getting the ones that support the president now, and get them to show up to the polls and vote. And I think they're doing that right now by donating.

MACCALLUM: So, what about this app? And when and how are you going to roll this out at the rallies? Because I know you said that you were going to -- you thought you might do it on the big Tuesday night, Florida -- opening of the campaign. But now you want to try it in smaller venues. Why and when?

PARSCALE: So, so, the app is about connecting. You know, in 2016, we had about 700,000 volunteers. It was difficult sometimes to get all of them mobilized and to get the army of Trump as we call them, moving into households like to door-knocking and doing things.

When 2020 at the opportunity of the money now, we have -- we can build out tools and like an app that we've gone their phone. Now, we're looking at 1.7 to 2 million volunteers. Now, we can get them as data mining crews. Get them as they get in events. Check it in like almost like you're checking in for a flight. Get them to talk about, you know, neighborhood watch parties.

We can mobilize these people now to help us be the army that helps turn out the vote, and nothing's stronger than your next-door neighbor coming over knock and saying, hey, I know you're Trump supporters, go a vote.

MACCALLUM: All right. I want to ask you, you know, just a couple of lightning round questions about things that are going on out there. One of them are the polls that see Kamala Harris and Elizabeth Warren surging.

PARSCALE: Yes.

MACCALLUM: You know, do you think that Kamala Harris and Elizabeth Warren are tougher opponents for President Trump than Hillary Clinton was?

PARSCALE: No, I don't -- first of all, I think the president could beat anybody. The momentum we're seeing right now, I mean, like, look, $105 million raised, $100 million cash on hand. What we're seeing overall, the president successes overseas. The momentum behind this president right now is like nothing in history has ever seen.

And like you said in your opening talking point, you know, he's raised almost more money than any presidents ever run before he has raised. Almost twice as much and the --

(CROSSTALK)

MACCALLUM: All right, what about Pete Buttigieg, raised $24 million? That's pretty impressive for the mayor of South Bend.

PARSCALE: Yes, and that's -- it's, yes, but still, nothing like to what this president's done. I mean, we've -- we're not even in the main portion of the -- of the campaign yet, we're all raised in large numbers.

This presidents -- and the voice he has and the combustion she can control in the way, you can control what's happening on the media, no one can touch this, and I think the president is set for four more years.

(CROSSTALK)

MACCALLUM: All right. So, and well, I mean it is a race and it's going to be between President Trump and somebody else. And the chances are that, that person is going to be offering things along the lines of free college, higher minimum wage, Medicare for all, what's the president's response when they stand on that stage and say, you know, we're going to make sure that everybody has health care and that the cost comes down? Does he have an answer for that?

PARSCALE: Look, I think this president has said very clear that he cares about the cost of rising health care in this country. And if we're being correct about it, it was President Trump that saved the failing Obamacare that was falling off the cliff when he -- when he came into office.

It wasn't for him and the changes have been made the cost to be skyrocketing drug prices would be skyrocketing. He -- with all that he wants the help of Congress through his own administration, he's able to stabilize this market.

This president understands what the American people need. He understands that we need a strong economy, and he's -- look, he's created the lowest unemployment numbers in history for almost every demographic, and I think that's going to continue to show, to show (INAUDIBLE) wages across the country.

(CROSSTALK)

MACCALLUM: What about free college? What's he going to say when his opponent says, "Look, I think college should be free in the United States." You got a lot of people, stand up and say, "Yes, I think that's a great idea."

(CROSSTALK)

PARSCALE: Look, I think them -- I think -- I think here, the administration is going to have to come out and talk about what we're going to do about -- you know, rising college prices in this country, I do think they're absurd. And I think it's difficult, you know, for some -- for families across this country. Because these universities have been gouging us.

I have a -- I have a daughter in college myself, and it's a -- it's an expensive thing. And we're going to have to deal with that issue. And I think, one of the things is to call out these universities for these rising costs.

But you know, I don't think millions of Americans would like to lose their sports teams and all the other things that might have to happen and the changes. I think that we need to have a real discussion about what college meetings and what those prices are, and make sure these universities charge a fair price.

MACCALLUM: All right. I got to let you go, but before I do, one last question, the census decision did not go the president's way. The citizenship question will not be on the census. What's the impact of that?

PARSCALE: You know, that was just I know that was just coming out right before I came on the air. You know, I think that -- I think long-term is going to have no impact on the president's election.

I think the Republican Party is in a strong position with Latino voters and other demographics. I think the Republican Party is on a straight course to more victories, win back the House, leading the Senate, and have four more years of President Trump. So, I'm not worried about it one bit.

MACCALLUM: All right, Brad Parscale, campaign manager for Trump 2020. Brad, always good to talk to you. Thank you very much for coming in tonight. I appreciate it.

(CROSSTALK)

PARSCALE: Thank you for having me, Martha.

MACCALLUM: You bet.

PARSCALE: Thank you.

MACCALLUM: So, joining me now, two experts in electoral politics as well. Karl Rove, former deputy chief of staff to President George W. Bush and a Fox News contributor. And Mo Elleithee, former communications director for the DNC, an executive director of the Georgetown Institute of Politics.

So, Mo, let me start with you. You know, what -- how would you dispute or what's your reaction to what Brad Parscale is saying there?

MO ELLEITHEE, POLITICAL CONTRIBUTOR: So, a couple of things really stood out to me. Number one, when you give the president his due $105 million. That's blockbuster fundraising.

But let's make no mistake, nobody on either side, no Democrat, no Republican should think all the energy lies on their side. We have seen both in fundraising and in polling that this electorate is as energized today as it was in -- on Election Day 2016. On both sides of the aisle.

Collectively, Democrats are raising a ton of money and they're spending a ton of money. Collectively, there -- they're right there with the president. But they've got a very competitive primary they've got to get through first. The one thing that was really interesting to me. And I always look not just at what they raised, but how they spend it.

What Brad said there that I found really interesting was head mitted they are not interested in persuasion. They are not out there looking to spend any of these resources on trying to win over people who are undecided. They are interested in just turning out the Trump base.

And that gives Democrats an opportunity. If the president's campaign is only going to be focused on the base --

(CROSSTALK)

MACCALLUM: Well, I think (INAUDIBLE) there is people who are in that base who didn't vote last time who they can elevate.

(CROSSTALK)

ELLEITHEE: Right. No, that's right. He wants to try to pull out more Trump supporters as opposed to try to win over more Trump supporters. If Democrats are as energized as they were 2018 and as they are today, and the president is leaving this undecided voters on the table, that's an opportunity for Democrats.

MACCALLUM: Karl, what did you think?

KARL ROVE, CONTRIBUTOR: Well, first of all, it was a very impressive number. And I think it's going to be even more impressive when we look basically a year from now, the Democratic contest is resolved. The Democrats have a nominee or are going into a convention with a likely nominee or come out of a convention finally with a nominee because if the Trump campaign continues to raise money at this base and save the money, they will have a very large war chest to fight the general election campaign.

I think Mo puts his finger on something. I'm not certain I necessarily agree with it. If the Trump campaign's attitude is all we've got to do is out of 100 million people, who are likely to vote for Trump, all we got to do is do mechanical things to get them to get out to vote.

Then I would agree with Mo that Democrats have got an opening. But I got a little bit more out of what Brad said. What I heard was, we got to go out there and convince these people that it's who are inclined to vote for Trump, who sort of leaning his direction. We've got to come -- we got to get them committed to turning out to vote for him.

That -- he may not like the word persuasion, but that necessarily involves persuading them to and on two fronts. First of all, persuading them that they've got to turn out and vote. And second of all, persuading them to act on their instincts that they want to go for Donald Trump.

He did that in 2016. At the end of the campaign, the people who broke at the last minute in the 2016 campaign broke for Donald Trump, and that was because they were running whether they admitted it or not, a campaign of persuasion.

MACCALLUM: All right. Well, we see Kamala Harris and Elizabeth Warren moving up in these polls. Joe Biden deteriorating a little bit. So, we will see where it goes as we take a look at it tonight. Thank you very much, gentlemen. Great to have both of you with us this evening. Thank you.

ROVE: Thanks, Martha.

MACCALLUM: So, coming up next. A verdict has been reached in the war crimes criminal of decorated Navy SEAL Eddie Gallagher. The breaking details next. Also --

(BEGIN VIDEO CLIP)

REP. ALEXANDRIA OCASIO-CORTEZ, D-N.Y.: Women were being told by CBP officers to drink out of the toilet. They were drinking water out of the toilet. And that was them knowing a congressional visit was coming. That was -- this is CBP on their best behavior.

(END VIDEO CLIP)

MACCALLUM: We spoke to CBP last night. They said that is not true. So, who is telling the truth? Congressman Dan Crenshaw, responds to AOC's escalating war with border patrol agents who say that they were harassed by her. That is next.

(COMMERCIAL BREAK)

MACCALLUM: So tonight, breaking moments ago, a verdict reached in the trial of decorated Navy SEAL Eddie Gallagher. He faced murder charges in the death of an ISIS prisoner in Iraq in what was a very dramatic trial and processed throughout.

Jonathan Hunt joins me now live outside the courthouse in San Diego where all the action is tonight with the verdict. Good evening, Jonathan.

JONATHAN HUNT, CHIEF CORRESPONDENT: Good evening, Martha. Within the next hour, we expect Chief Edward Gallagher to walk out from the military courtroom behind me a free man after the jury deciding his fate deliberated for some six or so hours over yesterday afternoon and through today, and then returned with a not guilty verdict on six of the seven charges Chief Gallagher faced.

The most serious of those charges was the murder of a wounded ISIS prisoner in Iraq in 2017, not guilty on that charge, the jury said. Two other charges of attempted murder, firing at Iraqi civilians, an elderly man, and a young Iraqi woman from a sniper position, not guilty on both of those charges.

In fact, the only charge on which Chief Edward Gallagher was found guilty was the charge of posing for a picture with that wounded ISIS fighter. That was the least serious of the seven charges he faced. Shortly after those verdicts were handed down, his attorneys came outside of the courtroom to celebrate what they said was a victory. Listen here.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Huge victory, huge weight off the Gallagher's, huge victory for justice.

UNIDENTIFIED MALE: The jury found him not guilty of the murder, not guilty of the stabbing, not guilty of the shootings, not guilty of all those things. They did find him guilty of taking a photograph with the dead terrorists which we admitted from the beginning that he was in that photograph.

(END VIDEO CLIP)

HUNT: The sentencing hearing is underway now for that one guilty verdict on posing for a picture with the wounded ISIS fighter. The maximum prison term for that Martha would be four months. Given that Chief Edward Gallagher has already spent nine months in confinement awaiting this trial, he will according to his attorneys be a free man tonight.

He will according to his attorneys be at home for what will inevitably be quite a 4th of July celebration. Martha?

MACCALLUM: No doubt. It has been a very long haul for him and for his family. We'll be watching live as Eddie Gallagher, Chief Eddie Gallagher walks out of that facility this evening. Jonathan, we'll be watching along with you. Thank you very much for that late-breaking report tonight.

Also breaking this evening, the border crisis and situation detainment facilities called out by one official as a ticking time bomb. In a new DHS watchdog report today, moveon.org organized close the camp -- close the camps protests in 180 places across the country. Here some of them most of them were fairly small.

(BEGIN VIDEO CLIP)

AMERICAN CROWD: Family separation is (INAUDIBLE). It is un-American, it is illegal.

UNIDENTIFIED FEMALE: This is wrong. This is disgusting.

UNIDENTIFIED FEMALE: What do we do? Stand and fight back with immigrants. They're under attack.

(END VIDEO CLIP)

MACCALLUM: All right. So today Brandon Judd, head of the National Border Patrol Council urging the CBP to release the video of the visit to their facilities from Alexandria Ocasio-Cortez. He wants everybody to be able to see what she saw when she was in there. The Congresswoman said that she felt threatened by the officers there. They claim the opposite. They say that she was screaming at them and harassing them while she was there.

Today she wrote, I can't understate how disturbing it was that CBP officers were openly disrespectful of the Congressional tour. If officers felt comfortable violating agreements in front of their own management and superiors, that tells us that the agency has lost all control of their own officers.

Here now Republican Congressman Dan Crenshaw of Texas. Congressman, great to have you with us today. You know, first of all your reaction to the back and forth between the Congresswoman and these officers.

REP. DAN CRENSHAW, R-TX: It's sad to see she's getting bolder with her lies on this. And this is what's actually happening. This is what the American people need to understand. People like AOC are operating off of a false premise and it's deliberately designed to misinform the American people for her own political ends, right.

Remember, first there was no crisis at all, OK. Then, it was a manufactured crisis. Then it was a crisis completely created by Trump. Then there were concentration camps. Then people are Nazis. Now she's saying that Border Patrol agents harassed her and forced migrants to drink out of toilets. This is insanity. This is not true.

There's no one else corroborating this kind of -- these kind of reports. And yet she's using it to try and make her case that we shouldn't have any enforcement and that we should have open borders. This is really dishonest behavior from a member of Congress and I honestly can't believe it.

MACCALLUM: I mean, Cory Booker said essentially the same thing today that he wants no holding facilities along the border. So I'm not sure exactly where they think everybody is going to go or how that's going to work.

Joaquin Castro also running for president, he took a video when he was in there. Let's put that up. He said that this moment captures what it's like for the women who are in custody there. I'm sorry -- this is Representative Joaquin Castro who is not running for president but is a Representative and he took this video when he was in there.

Obviously, these are very crowded conditions. Also let's put up now the DHS photos which were released today by the watchdog agency and these are clearly Congressman Crenshaw very overcrowded, very untenable situations.

CRENSHAW: Of course. And these Democrats need to have a reasonable, logical conversation, engage in some problem-solving, and then offer an actual solution. Because what they're really doing is trying to stand on their moral high horse and sling arrows to everybody else while not offering a solution.

Let's not forget, they fought us tooth and nail against that $4.5 billion of humanitarian aid that the President needed, that DHS needed, that HHS needed in order to better conditions at these facilities. They fought us for months on this. They said there was no crisis. We asked for a vote in the House 17 times, they refused to do it.

You know, and it's funny. Castro puts this video about it, AOC talks about these things. I don't see them offering up any other space in their own homes, right? They're not offering a better solution. They're not saying, hey, why don't we put them all up at a hotel. They don't say that. What they really want is no enforcement.

This is -- this is the crux of it. They don't talk about what the actual problem is which is tens of thousands of people coming across and overwhelming our system, OK. And then they have to answer the question should we have a system at all, and they say no.

Well then, what is the point of even having a border? Why even have customs agents at airports, any kind of management over who comes in and out of our country. They don't want to answer these tough questions because in the end, they want open borders.

MACCALLUM: I think you're right. I mean, I asked Bernie Sanders in the Town Hall that we did, you know, where does he think we should put these individuals you know, and she suggested the possibility that had been talked about whether or not they should go to cities that are you know, very open to immigrants, they're sometimes called sanctuary cities. He said that was ridiculous, that it was -- it was a silly question.

I mean, you know, look at these people. This isn't a silly question. They need to go somewhere. You are raising an interesting point. Why don't they allow more private donation and you know, charitable organizations in the country to get involved in this? Can you answer that briefly for me if you could?

CRENSHAW: Yes. And thank you for bringing that up because we just submitted a letter today to DHS with bipartisan co-signers asking this exact question. You know, there are certain laws that get in the way of private donations for government but in the case of humanitarian aid it should be legal and we should be accepting these kinds of donations.

Americans do want to help. We are a generous country and we do want to help so let's make it easier. Let's help get the resources that we need down there and help our -- and instead of demonizing our men and women who work at DHS, let's help them.

MACCALLUM: Yes. And AOC blasted Wayfair, the furniture company because they wanted to you know, do a contract for 1,800 beds which would certainly alleviate some of the problems in terms of where people could sleep so I mean, go figure.

CRENSHAW: It's cognitive dissonance because what, she doesn't want them to have beds?

MACCALLUM: No, she doesn't, apparently.

CRENSHAW: That's her solution, apparently?

MACCALLUM: Exactly, because the corporate -- you know, the company is to blame. So anyway, Congressman, always great to have you with us tonight. Thank you very much for being here, Congressman Dan Crenshaw from Texas tonight.

CRENSHAW: Great to be with you, Martha.

MACCALLUM: You too. So next, after a violent assault by far-left Antifa protesters, Conservative Journalist Andy Ngo responds to the Democrats tonight who are coming to his defense.

(COMMERCIAL BREAK)

MACCALLUM: Certainly, a frightening scene that unfolded in Portland this weekend. Conservative journalist Andy Ngo suffered a brain hemorrhage while after being attacked while he was covering an antifa protester. He is in the middle of that horrible video.

Police are now on the hunt for these suspects if you recognize any of these people. Two of them are pretty covered up. But one of them is pretty visible in this assault that some Democrats as well are condemning tonight, including Congressman and 2020 contender Eric Swalwell who tweeted "I don't agree with much of what Mr. Andy Ngo ever says but that's not the point. He should not be harmed for his views and his attackers should be prosecuted. And Congress should pass my journalist protection act," he writes, which makes it a federal crime to assault or batter a journalist."

Joining me now is Andy Ngo, editor at Quillette.com. Andy, good evening to you. First of all, how are you doing tonight? And what is the doctor saying about your brain hemorrhage?

ANDY NGO, EDITOR, QUILLETTE.COM: I'm going to be dealing with some memory issues for up to six months and the more that I try to return to my regular activity I notice that I'm having some difficulties with speaking in a normal way.

MACCALLUM: And what does your doctor attribute that to? Because, you know, in terms of what -- how were you assaulted in these injuries we are watching this horrific video?

NGO: The mob that attacked me with weapons used gloves that had fiberglass material on the knuckles. So, these weren't just bare-handed fists going to my head and my face. They were harder. They were weapons --

MACCALLUM: Yes.

NGO: -- with the aid of these gloves.

MACCALLUM: Horrible. It's horrible. You know, these are people who are chanting no hate, no fear, which is just an incongruous idea. What do you think this tells you about where this antifa group is right now in their progression? You know, what stage are we at now when this kind of violence is how they are expressing what they want?

NGO: The Portland police say they don't intervene all the times that I plead for help when I'm getting menaced and assaulted within eyesight of the police and they say they don't do it because they don't want to insight the crowd.

I -- my response is that what's inciting the crowd and empowering them and emboldening them to do more and more is the inaction of the police because they know that they can attack people with impunity.

MACCALLUM: Yes, apparently, they do.

NGO: Literally within footsteps of the police precinct in downtown and not face consequences.

MACCALLUM: It's unbelievable. I heard you say you just kept wondering where are the police? Because you knew that the, you know, that the municipalities were right around you. It's awful what happened to you.

Just quickly before I let you go, Andy. We hope you continue to improve. Are you going to sue the city, are you going to sue the police there for not protecting you?

NGO: I'm taking this an hour at a time right now. My strongest desire is to see justice happen. I want to see those who attacked me and aided those who attacked me to be held responsible.

MACCALLUM: Andy Ngo, thank you very much for being here. You should absolutely have the right to cover this story without being injured as you were. And we'll follow your story and we thank you very much for being with us tonight. Thank you, sir.

Coming up momentarily, Taylor Swift has an estimated net worth of more than $300 million. But she is very fired up against her music manager, former, who just bought the rights to her chart-topping hits. THE STORY digs in and investigates next.

(COMMERCIAL BREAK)

MACCALLUM: So, Taylor Swift facing some trouble after a powerful manager Scooter Braun acquired her former label and the rights to her first six albums.

The outraged pop star writing, quote, "I had to make the excruciating choice to leave behind my past. Music I wrote on my bedroom floor and videos I dreamed up and paid for from the money I earned in playing bar -- playing in bars and clubs and arenas, and then stadiums."

Carley Shimkus of Fox News headlines 24/7 here to break down this story for us tonight. Good to have you here, Carley.

CARLEY SHIMKUS, REPORTER: Good. Thank you so much for having me, Martha. This feud is far from over it. And it seems to be parting Hollywood into two as celebrities speak out and take sides. Watch.

(MUSIC PLAYING)

SHIMKUS: That's exactly what Taylor Swift is asking Scooter Braun after the high-powered music manager purchased her old record label. Braun bought Big Machine label group for a reported $300 million. That means he now owns the rights to all of her old songs. Something Swift is calling her worst- case scenario.

In a scathing Tumbler post she writes, "Some fun facts about today's news. I learned about Scooter Braun's purchase of my masters as it was announced to the world. All I could think about was the incessant manipulative bullying I've received at his hands for years."

The situation pinning celebrity against celebrity in all-out Twitter tug- of-war.

(MUSIC PLAYING)

SHIMKUS: Braun's client Justin Bieber slamming Swift, writing, "Scooter has had your back since the days you graciously let me open up for you. So, for you to take it to social media and get people to hate on Scooter isn't fair. What were you trying to accomplish by posting that blog? Seems to me like it was to get sympathy."

Swift seeing support from Panic at the Disco front man Brendon Urie who summed up the situation saying, "Toxic dudes doing toxic bleep in this toxic industry. It's disgusting, right?"

The rift between Swift and Braun is rooted in his association with rapper Kanye West.

(BEGIN VIDEO CLIP)

KANYE WEST, RAPPER: I'm going to let you finish but Beyonce had one of the best videos of all time.

(END VIDEO CLIP)

SHIMKUS: Braun was West's manager in 2016 back when he released the song "Famous" that included this controversial line about Swift.

(MUSIC PLAYING)

SHIMKUS: While Swift says she was blindsided by the business deal, Big Machine founder Scott Borchetta is refuting that claim, saying he personally texted her about the acquisition a day before the story broke.

Despite the drama, Swift is turning lemons into lemonade by encouraging fans to buy her new album coming out in August. In other words, it looks like she is going to --

(MUSIC PLAYING)

MACCALLUM: Wow, so, she -- she was 15 years old when she signed that contract, right?

SHIMKUS: Yes.

MACCALLUM: And they said, you know, we want to represent you. We want your first six albums. And she signed the contract?

SHIMKUS: That's the -- that is the core issue because there is a lot of loud voices attacking each other. The thing is she signed this contract when she was so young. And she is beholden to it.

But it must be really unsettling for her to realize that somebody she doesn't even like now controls her legacy and all of her music. So she is using this sort of as an opportunity to encourage young artists to better protect themselves while negotiating.

But this is really common because labels take a chance on young celebrities, young talent. They don't know if they're going to be successful or not. So, they ask for a lot in the beginning.

MACCALLUM: Yes. And we've seen this with The Beatles. We saw it with Michael Jackson owned the Beatles catalog. We've seen it with Prince who changed his name basically to get out of this coming. But she is -- is she becoming more increasingly activists, you know, she come out in terms -- politically recently. You know, are we watching sort of a change in her?

SHIMKUS: Yes. You know, the statement that she released on Tumbler sort of had this man versus woman sort of feminist tone to it.

MACCALLUM: Yes.

SHIMKUS: So, I did kind of notice that as well. She is sort of taking the feminist stance on this. And I kind of sympathize with her here. Because it is unfair that she could -- she did say that she could have bought back her music. But I thought that the deal was totally wrong.

She would have to re-sign with her old record label and sort of give them one album for every album that she wanted back. So, I sympathize with her but she is certainly taking a more activist tone.

MACCALLUM: Yes, it's all, it's definitely all about. It's all about --

SHIMKUS: I think she is going to be OK.

MACCALLUM: I think she is going to be OK, too.

SHIMKUS: Yes.

MACCALLUM: Great, great reporting, Carley. Good to see you tonight.

SHIMKUS: Thank you.

MACCALLUM: Interesting story we want to learn more about. All right. Coming up next, Nike faces a mountain of criticism for pulling a patriotic shoe after pressure from some who find the flag offensive.

Jesse Watters doesn't find the flag offensive and he joins me now for a special Tuesday cameo of Tuesdays with Watters. Hey, Jesse.

JESSE WATTERS, HOST: Hi.

(COMMERCIAL BREAK)

MACCALLUM: It's unbelievable. Nike is dropping their Betsy Ross inspired shoe that they created for the Fourth of July, logical, right? After endorser and former NFL player Colin Kaepernick picked up the phone and complained that the original Ross flag was offensive because of its connections with the era of slavery in the United States.

The company wants retailers to send the shoes back saying in a statement, quote, "Nike made a decision to halt distribution of the Air Max 1 Quick Strike Fourth of July based on concerns that it would unintentionally offend and detract from the nation's patriotic holiday."

Now a special edition, Tuesday edition of Wednesdays with Watters, we can't wait so we had him in on Tuesday. Hello, Jesse.

WATTERS: Hi, Martha.

MACCALLUM: This is just -- it really amazes me how much power Colin Kaepernick has.

WATTERS: Too much power if you ask me. I mean, Nike is now anti-American company. They -- the only reason they make money, though, is because of America because of equality and justice and the American way. And maybe they think there can be profitable by being like this. But I just think it's dangerous.

Because Colin Kaepernick comes in, makes a phone call, is offended, the majority of the country doesn't believe that. Yes, slavery was a stain. Yes, America was flawed. I have tons of flaws. You are flawless, Martha. But most people have flaws.

MACCALLUM: No. Far from it.

WATTERS: And we acknowledge our flaws and we grow from them and then we celebrate who we are in our entirety. He wants to divide us. He wants to pick that scab. Focus on the flaw. And not unite the country and it is literally the flag, the fabric of this nation. And he just wants to tear it apart.

(CROSSTALK)

MACCALLUM: What about all the people who are --

WATTERS: And poor Betsy, too.

MACCALLUM: Poor Betsy, right. And what about all those people who are unintentionally offended by the fact that they pulled the sneaker, you know, who find that offensive. Who find, you know, who wanted to get a pair these sneakers. It's just such a silly thing.

WATTERS: Yes.

MACCALLUM: But I think, you know, when they -- when he came out with that ad where he is like standing in the middle of the city and he is professing his beliefs, sales went up.

WATTERS: Right.

MACCALLUM: So, they are making a purely, you know, bottom line calculation here that hey, you know what? When we do this, it seems to work for us.

WATTERS: Right. And they have the right to do that as a company. But now they are multinational conglomerate. They are less American. There is a line though between social justice and anti-Americanism. And I think they are crossing that line. A lot of people are really upset about this. This is our founding. This is when we threw off the yoke of the British.

MACCALLUM: Arizona Governor Doug Ducey was supposed to, you know, they were -- they had given them a tax incentive to build a new plant or business there. And he said, you know what? No thanks.

WATTERS: Yes.

MACCALLUM: No thanks. Let's look at this Gallup poll on U.S. pride which was also, which was kind of depressing which shows that patriotism is on the decline in the United States. What do you attribute that to?

WATTERS: I think these things go in waves. Right now, the country is pretty divided. We're not at war. It's peace. People start to think about smaller things like the military parade and being offended by that.

But I think in general this country is very patriotic. Maybe people have different belief of what is patriotism is. But you know, the first thing that happens when this country suffers in any way from a disease, from an attack, and anything that we can rally around, that will go right back up to the healthy 70 percent.

MACCALLUM: Well, you have gotten to a point where people who are against the president equate him with the flag.

WATTERS: Right.

MACCALLUM: And so, anything -- you know, that's the bottom line, I think.

WATTERS: And I don't think conservatives felt that way during the Obama years. I think conservatives have always had a very high level of patriotism.

MACCALLUM: Yes.

WATTERS: It's usually the people on the left that dip and flow depending who is in the White House.

MACCALLUM: Do you know who was very patriotic? Elvis Presley.

WATTERS: The king.

(CROSSTALK)

MACCALLUM: He served the country. He was the king. And now they are trying to cast the role --

WATTERS: Yes.

MACCALLUM: -- of Elvis in the movie. It's a Baz Luhrmann production. And so, they're looking at several actors. Let's put them up on the screen and let's see how think -- which one do you think it's going to be?

WATTERS: I don't know who any of these guys --

(CROSSTALK)

MACCALLUM: Can you name Smiles Teller in the middle.

WATTERS: OK.

MACCALLUM: Harry -- you know - Harry --

WATTERS: Harry Styles.

MACCALLUM: Styles.

WATTERS: Right.

MACCALLUM: Thank you.

WATTERS: He is a singer, I think.

MACCALLUM: He is on the left.

WATTERS: OK. Who is on the far left here? Who is on --

(CROSSTALK)

MACCALLUM: I don't know who that guy is.

WATTERS: OK.

MACCALLUM: Let's put up our other idea. The other person that we thought might make it. That's just because of the hair.

MACCALLUM: You kind of look a little Elvis-ish.

WATTERS: I can't dance like him.

(CROSSTALK)

MACCALLUM: That's what I said on our meeting today. I said Jesse is Elvis- ish. Not quite Elvisy but Elvish-ish.

WATTERS: Hopefully not the older Elvis. Hopefully the younger Elvis when he was trim and could actually carry a tune.

MACCALLUM: I don't know, I think he could rock that white suit too.

WATTERS: Listen, a little expensive. I'll call wardrobe now.

MACCALLUM: I think Miles Teller would be a good choice but Harry Styles might be the one. He was in Dunkirk and it was pretty good.

WATTERS: OK.

MACCALLUM: And he can actually act. Jesse, thank you.

WATTERS: Thank you, Martha.

MACCALLUM: great to see you on a Tuesday.

WATTERS: All right.

MACCALLUM: Thanks for coming in.

MACCALLUM: So, preparations well underway for President Trump's salute to America taking place on the National Mall this Independence Day, a lot of reports from the scene where the tanks may already be arriving, next.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

TRUMP: We're going to have a great Fourth of July in Washington, D.C. We're going to have planes going over our heads, the best fighter jets in the world and other planes, too. And we're going to have some tanks stationed outside.

(END VIDEO CLIP)

MACCALLUM: New details tonight about the president's salute to America celebration on July 4. The White House insisting the event is not about politics but about patriotism and independence.

Correspondent David Spunt live at the Lincoln Memorial where it is pouring rain tonight. Hi, David.

DAVID SPUNT, CORRESPONDENT: Yes. Yes, Martha, it just started like 25 seconds of course, right when we go live on T.V. this is going to happen. Literal monsoon here. Let's hope this doesn't happen Thursday.

Let's show you some video though of those tanks that are going to be out here. That's the big news, those army tanks, Abrams tank is going to be out here on Thursday on the National Mall for that celebration with President Trump.

Other members though of the army, other members of the military will be out here.

Now the tanks will be static. The president said that it's going to be quite a sight. In the air, though, Martha, Marine One, Air Force One. It's not going to be called Air Force One because the president won't actually be on it.

But we're also going to see a B-2 Stealth Bomber and the Blue Angels. The president said he is going to give that's nonpartisan. Listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Do you think that you can give a speech that can reach all Americans on July?

TRUMP: I think so. I think so. I've reached most Americans. Most Americans want no crime. Most Americans want strong military. They want good education. They want good healthcare.

(END VIDEO CLIP)

SPUNT: And several people complaining about this. They're saying that where is this money going to come from to hold this? Delegate Eleanor Holmes Norton is one of them, she's a delegate in Congress for D.C. She says she wants the administration to pay back every penny if there's damage. Take a listen.

(BEGIN VIDEO CLIP)

ELEANOR HOLMES NORTON, D-DC, DELEGATE TO U.S. HOUSE: It is a partisan act. What he is doing is a partisan act, inviting RNC to get tickets. He's politicized the Fourth of July before he opens his mouth.

(END VIDEO CLIP)

SPUNT: All right. Thursday night, Martha, let's hope it's better than our equipment is getting destroyed out here.

MACCALLUM: No.

SPUNT: Monsoon out here. But hopefully, yes, it's a lot better. So, we're going to send back to you but it should be a big event out here Thursday. Martha, back to you. Live TV.

MACCALLUM: Yes, that's a summer flash thunderstorm coming through Washington, D.C. David Spunt, go in and dry off. Thank you very much. And we do hope that it is a beautiful Fourth of July where you are.

And we are looking forward to that parade, which should be quite a spectacular event. And we hope that you and your families have a fantastic Fourth of July together. Enjoy the fireworks, enjoy some time together.

That is “The Story” on this Tuesday night, July the 2nd. We will see you back here tomorrow night at 7 o'clock. Coming up from Washington, D.C. this evening is Tucker Carlson with "Tucker Carlson Tonight." Good night, everybody.

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