This is a rush transcript from "Your World," November 6, 2017. This copy may not be in its final form and may be updated.

NEIL CAVUTO, HOST: All right, we are indeed waiting, folks, on that hospital news conference near San Antonio on the Texas shooter -- the Texas church shooting, I should say.

At last check, at least 10 people were in critical condition. So we will get an update on their status.

We're also following a separate and rather dramatic in, well, our industry, The Wall Street Journal reporting that Walt Disney recently held talks to buy some of 21st Century Fox's assets -- 21st Century Fox, of course, the parent of this company.

Now, those assets include cable television networks, including Nat Geo and FX. But they do not include, we're told, Fox News or Fox Business or the Fox broadcast network itself.

Now, for Disney, it could be an opportunity to boost its presence in Hollywood and overseas. Now, the latest we're given is that those talks have since kind of stopped or stalled, whoever you believe.

Fox Business Network's Nicole Petallides at the New York Stock Exchange with a lot more.

Hey, Nicole.


We certainly saw the stock's correlation to the breaking news throughout the day. We saw, for example, Fox was down. And then we had this news that really broke throughout the afternoon. And then you saw it showed up around 1:30 p.m.

And that happened with FOX, with Disney and, funny enough, CBS. We have heard from basically -- we have reached out to 21st Century Fox, parent of this network, declining to comment. We also reached out to Disney. Waiting on a response.

The Wall Street Journal put out this news that Disney may be acquiring a stake. And with that, we also have heard from Wall Street Journal and sources that the talks are no longer active.

Of course, this is a developing story, and the only thing that we know that is fact is the stock movement. And by the end of the day, the stocks did jump and moved higher, as I noted, a 9 percent gain for 21st Century FOX, and Disney up 2 percent. But, again, it's developing news. It's very preliminary. And it's developing.

And so we will continue to follow it. But The Wall Street Journal, the latest is that they have now talks no longer active, but we will see how it goes.

CAVUTO: All right, Nicole reporting...

PETALLIDES: Got to take this one carefully, as it develops.

CAVUTO: Indeed. Indeed. Nicole Petallides at the New York Stock Exchange.

Of course, all of this happened at a time when companies are sort of crunching the numbers and tax cuts that could benefit them, one of the reasons why Broadcom is looking to pay $103 billion for Qualcomm.

We will get into that a second here. Suffice it to say that the wind at a lot of these deals' backs are the low interest rates and potentially much lower taxes. I say potentially on the latter because it's a long way from done.

You're looking live at the nation's capital, where the markup of that Republican tax bill to cut taxes is under way. And it could be quite a very involved process and a nail-biting one at that.

To FOX senior Capitol Hill producer Chad Pergram.

What are we looking at here, Chad?

CHAD PERGRAM, FOX NEWS SENIOR CAPITOL HILL PRODUCER: Well, this is the markup session in the Ways and Means Committee, where they go through the bill line by line over the next several days, probably by Thursday. And then they will report out a bill.

We expect some changes, possibly something on the individual mandate. Something that we found out about this bill here is that there's actually a sixth bracket that deals with taxing the very wealthy. In other words, if you pay a million dollars or so or you earn a million dollars or so, on the first $200,000 of that, above the million-dollar threshold, you get hit with what they call a bubble tax, 6 percent. It's a surcharge.

Now, there's bubble taxes in the corporate rate and things. This goes against the Republican orthodoxy a lot of times of not taxing the rich, the idea that they want to lower the rates for the wealthy. They're the ones who are the investors and they own small businesses and so on and so forth.

This would hit about 438,000 tax filers here. And it would bring in about $50 billion in revenue over the next decade. That's not a lot. but if this goes through, Neil, this new bubble tax, it's important because this would be the first time that the top tax bracket for filers for the most wealthy would be above 40 percent since the 1986 Reagan tax cuts.

CAVUTO: And a lot of them are already paying at or near that, as it were, with the Medicare surtaxes and the like.

So a lot of them have had a chance to chew on this over the last few days. And they're brooding. They're not happy with this, are they?

PERGRAM: Yes, and that's one of the things that people are going to look at, to see what the details are in this final bill.

It was funny. I was talking to one member of Congress earlier. And he kind of commented to me. He said maybe the details won't matter because Republicans are so desperate to try to pass this tax bill in the next couple of days here, get it through committee, get it through the House of Representatives next week.

Later this week, we expect to get the Senate bill. And this is where things are going to get interesting. There's going to be a lot of permanence in the bills that the House of Representatives puts out. But the Senate bill, whatever they put later this week, that completely could completely upset the apple cart.

And that's where a lot of Republicans in the House might start to get nervous. We talk about them trying to fix the state and local taxes for the New York and New Jersey members.

CAVUTO: All right.

PERGRAM: There's some members from the California delegation. There are 13 California Republicans. And I have been sent some hand signals here in the past couple days that they might not all be on.

CAVUTO: All right, Chad.

PERGRAM: Consider how close that vote was on the budget framework Just a couple of weeks ago in late October.

CAVUTO: All right, thank you, my friend.

PERGRAM: Two votes. Two votes. That would have changed things.

CAVUTO: And it still might.

All right, in the meantime, I want to go to Texas right now, where they're updating us on the conditions of those 10 who have been hospitalized.


DR. BRIAN EASTRIDGE, UNIVERSITY HOSPITAL: So, we're here today to honor the group of first-responders from San Antonio EMS and San Antonio Fire Department who saved the life of shooting victim Mr. Tobias Walker by controlling his severe bleeding before he reached the hospital here.

Although it required an unusual amount of hemorrhage control because of his condition, the skills they used actually are basic skills that can be taught to the general public, and those are the types of skills we teach in the Stop the Bleed campaign, because we know that EMS can't be everywhere, law enforcement can't be everywhere at the same time.

Often, if you're going to be involved in some type of an event where you may be injured or may be bleeding, the first-responder may be your buddy, may be your husband, your wife, your friend, or it may be a total stranger.

So the Stop the Bleed campaign is really an initiative to teach the majority of the populace of the country basic bleeding control techniques.

So, yesterday, as in today's -- or as in yesterday's terrible shooting in Sutherland Springs shows us, along with other many mass casualty events that we have seen around our country in the last several years, we can never know when these skills may be important to us. But they will be important.

Before I bring the first-responders up to recognize their heroic efforts, I want to speak a little bit about the events of the mass casualty event that unfolded here yesterday from the Sutherland Springs church shooting, as it's obviously on the forefront of everybody's mind and it really plays right into the initiative that we're intended to teach here.

First of all, here at University Hospital, we received nine patients from the shooting incident. We had four children, five adults. One of the children died.

We currently have three adults and three children remaining in the hospitals and their conditions range from serious to very critical.

We actually had a couple of adults and a child that was, as I already discussed, died in the hospital. I should also mention that this is not just University Hospital. Our hospital is part of a bigger trauma system. And part of that system actually includes the San Antonio Military Medical Center, Brooke Army Medical Center. It is also the other adult level one trauma center in the city.

Brooke Army Medical Center I believe saw eight patients and operated on four patients. So, again, this collaboration is richly supported by the community and actually it's really the foundation of the trauma system.

In one sense, the timing of the incident sort of played into our response. Yesterday, we happened to be having our annual -- or our normal credentialing review by the American College of Surgeons verification review team.

And so it just happened that we had seven trauma surgeons here when we got the first call about the mass casualty event, the active shooter., which is great, except a trauma surgeon without this and without all of the staff is really just a set of hands. We're pretty useless.

So how did this all come about? So, the -- I have to say that, you know, we in South Texas are the beneficiaries of an extremely sophisticated trauma system that is basically the Southwest Texas Regional Advisory Council for Trauma, or STRAC.

STRAC was generated by the leadership of University Hospital.

CAVUTO: All right, we're going to continue monitoring this, the latest that we have on those who survived this horrific shooting.

At first, there were nine injuries reported involving four children and five adults. One of those children died. So, three children still in the hospital. Three adults remain in the hospital. Two were released earlier this morning. So, six remain hospitalized.

The read on all of this from former FBI Assistant Director Ron Hosko.

Ron, there's so much still we don't know about the shooter or what motivated him. We do know that he was able to kill his wife's grandmother. His intent was unknown, even now.

You know, terror is terror, right? Whether it's assigned to ISIS or foreign elements or homegrown or those having nothing to do with ISIS. But we know, in this case, this guy failed what you have to require to a permit, a gun permit. Yet he still had a gun. What happened?

RON HOSKO, LAW ENFORCEMENT LEGAL DEFENSE FUND: Yes, Neil, we -- I think you and I have discussed the unthinkable repeatedly in the last year or so. And here we are again discussing what is unthinkable.

And the sad reality is, it's -- at this point in 2017, it's not unthinkable. It's happening with what seems like greater frequency and greater impact.

Here, you know, someone who has shown a propensity to harm not only his spouse, but a child, and comes into a church and bent on mass destruction, gunning down innocents across the board, and especially children.

And so it feels like somehow something has failed. The system has allowed him to come into possession of a weapon, despite the fact that now we're hearing today depression or serious mental illness in his past, his activities while in the Air Force that cost him a year in the brig and then this bad conduct discharge.

Somewhere, the system feels like it's failing, that dots are not being connected. And you and I have discussed in the past the mental illness aspect of these active shooters that I think it's going to be shown as clearly part of this.

And, again, how do we get that information from the mental illness, the medical system or the treatment system into the FBI system, so that someone is absolutely a prohibited possessor and they don't get a gun?

CAVUTO: You know, what little we do know, Ron, to your point, is that Devin Patrick Kelley had been sending threatening texts to his mother-in- law. And he was angry.

And that was known to a lot of people who knew him. I'm wondering, whatever failed him to get a gun permit, he obviously got his hands on a gun. So, when people are immediately on that, well, then our gun laws are too loose if they don't tighten that up, how could that be, if the gun laws in place had made sure that a guy like this wouldn't get a permit or the right to even get his hands on a gun?

HOSKO: Right.

CAVUTO: What has to be tightened up here, what little we do know at least of his anger and his history of abusive language?

HOSKO: Yes, so that's sometimes the hard part.

You know, look, we know that the mother-in-law jokes are everywhere out there. And they're born from reality, that sons-in-law have problems with mothers-in-law, but they don't manifest themselves in hunting down the mother-in-law and her family and her flock sitting in church.

So there's a reality there. And the challenge, I think, for law enforcement, for friends, for neighbors, for family members is, when is it -- when is that anger so intense and so focused that it draws significant concern and should draw police attention or mental health help?

When are some of the things that you see coming from somebody who is angry and has had a change in their life that is momentous so focused and so troubling that it ought to draw us to see something, say something?

CAVUTO: Right.

HOSKO: As opposed to just saying hey, look, calm down?

Because that happens in America many more times than this happens in America. But I think there is an opportunity to strengthen gun laws. Certainly, peer-to-peer purchases of weapons, there's talk about gun show loophole, but there are a lot of folks at gun shows who are running background checks through the FBI.

CAVUTO: Right.

HOSKO: The problem is, when you go out into the parking lot with somebody who is carrying an AK or an AR in their...


CAVUTO: All bets are off. All bets are off.

HOSKO: That's exactly right. They're not checking.

CAVUTO: Ron, thank you very much, Ron Hosko.

HOSKO: Sure.

CAVUTO: Again, the mother-in-law in question who he was texting, she wasn't there. Her mother was. She's dead.

Congressman Henry Cuellar is next.


CAVUTO: We are still monitoring this presser going on as we speak in Texas right now, where they're updating on the number of injured, down to six right now, three children. One died over the past 24 hours. Three adults remain in the hospital in varying degrees of critical condition, we're told.

This area includes the district represented by Texas Democrat Henry Cuellar, who joins us right now.

Congressman, thanks for taking the time.

REP. HENRY CUELLAR, D-TEXAS: Thank you so much.

CAVUTO: What do we know about the assailant? We do know that he was sending a lot of nasty texts. We do know that he failed to get a gun permit, yet he had a gun. What do we know, Congressman?

CUELLAR: Well, you know, yesterday, when I talking to the sheriff, Joe Tackitt, and some other folks, they gave me some of this information.

And based on what I was -- because I know where this person was from, Comal County. I know -- of course, I represent Sutherland Springs. He didn't just find this place. And I was saying yesterday, there has to be some sort of connection, some sort of nexus.

And apparently this is what I think we're seeing. The mother-in-law, there was a connection there. It's a sad place. If you look at it, this is a small little community, very close-knit. Everybody knows each other.

And I think when the final names are released of the people that got killed and got -- either got injured, people are going to know everybody there, because it's a very small community. I'm very familiar with that community.

But even though they're facing this grieving period, this healing period, it's a community that is going to come together. We're going to do everything to be helpful to this community.

CAVUTO: Well, I have no doubt about that, Congressman.

But the case of Devin Kelley does make me ask. He lived 30-some-odd miles from this church. Do you know what connection he had to it? I know his mother-in-law went there. I know his grandmother-in-law and grandmother died. The mother-in-law wasn't there at the time.

Was this meant to target them? Do we know anything?

CUELLAR: Well, we don't know.

I have been in contact with the sheriff. And I'd rather let law enforcement talk about the motives itself. But, since yesterday, I have been saying there has to be some nexus. You don't just pick this small rural area without having a nexus or a connection.

And I think that's where the investigation is going to lead us to.

CAVUTO: Do you think -- there's so much we don't know, to your proper point, sir. But we do know enough that he left a pretty intense social media profile, at least when it came to texts, I should say, that were angry and that should have sent alarms up.

And maybe his former wife and her family relayed those to authorities. There's so much we still haven't been able to ascertain. But do you think that should be the purview of law enforcement, if messages are angry or to the degree these were threatening, that they should be made aware?

There are a lot of privacy advocates here say go slowly here. What do you think?

CUELLAR: Well, certainly, I think this is something that we need to talk about. Certainly, are there any red flags? When do we see this? Whose purview is it to go look at the red flags?

Is there a hey, if you know something, tell something? There's a lot of questions that we need to look at. And I think it's -- we need to look at lessons learned from here, because this is something that we saw in Las Vegas, I mean, not the same type of facts, but we're seeing killings. But we need to look at lessons learned and see where we need to go from here.

CAVUTO: All right, sir, my deepest sympathies and thoughts and prayers to your constituents. Thank you for your time.

CUELLAR: Thank you so much. Thank you.

CAVUTO: All right.

In the meantime, there are elections tomorrow, believe it or not, in Virginia and in New Jersey. They could telegraph how things go next year. Maybe. Maybe not. We're on it after this.



DONNA BRAZILE, FORMER DEMOCRATIC NATIONAL COMMITTEE INTERIM CHAIR: The high command of Brooklyn, the people who were making the decisions even for the DNC, they didn't come and work with us. They told us to shut up and basically let them win the election.


CAVUTO: All right.

Could all of this recent infighting among Democrats continue ahead of two key gubernatorial races tomorrow, in Virginia, where you have Democrat Ralph Northam taking on Republican Ed Gillespie, also in New Jersey between front-running Democrat Phil Murphy, Republican Kim Guadagno?

Also, by the way, Guadagno, Chris Christie's lieutenant governor.

Lee Carter on that.

This is like sort of a new wild card development here, Lee, on both races, I would imagine more in Virginia. I could be wrong.


CAVUTO: But play it out for me.

CARTER: Look, I think it's definitely more of an issue in Virginia than it is New Jersey.

I think, New Jersey, margins are a little bit far. But this is not unlike the presidential campaign, what we saw back in November. Everything was within the margin of error. You look in Virginia, we're looking at a 2.8 percent difference. It could swing either way.

In the days leading up to the election, what we're talking about now is a major crisis that came up, much like happened back in November of last year. And so we're looking at this is the hotbed issue that is going out of the DNC.

And what that is saying is, are the Democrats on the side of the American people? And I think, even though Gillespie is an establishment candidate in many ways, his messaging is the very anti-establishment. He's taking a page out of the Trump playbook. And I think that it could have a really big impact on the people of Virginia.

Now, is it just going to be this issue of Donna Brazile and what she's saying about the DNC fixing who the candidates are? I'm not sure it's just that. I think there's this overall perception though that the government is not working for the people.

And there's this overall perception that the parties are tying the hands of the people. And so I think that this could really have a big, big impact.

I also think that when you are looking at a shooting over the weekend, that is going to have a lot of impact on how people want to have either the right to have guns or how they want to feel safe.

And then there's a whole other host of issues. If you look at some of the advertisements the Democrats ran last week, you're looking at some really insulting advertisements about what they said that Republicans who want to wave the Confederate and want to carry their guns, and it was really insulting to people.

That's very much like the basket full of deplorable comments, because I think it shows a fundamental lack of understanding of the American people who want to support some of those traditional values.

CAVUTO: But you could argue that the backdrop for all of this is still frustration with the president, and his polling numbers very, very slow, a Washington Post/ABC poll. It might be deemed fake news or whatever the White House might be calling it, but it does show his support at an all- time low.

Now, among his base, very strong. And the base could come out in both of these states, in Virginia, where it could turn the tide. New Jersey seems to be a more uphill climb.

But a general question I have for you is whether such races telegraph how, odd as they are, because these are the only two states with big elections right now, how the midterm could go? Eight years ago, you could have argued that those gubernatorial battles, particularly that brought in Chris Christie, telegraphed that was something that was going to half in the following year's midterm election.

What do you think?

CARTER: Look, I think that is a really, really interesting point, because if you think about it, what is going to happen right now based on everything that we know?

We know that the presidential approval rating is at an all-time low. But what we're also seeing is that these races are really, really close. And so that's not usually what we're seeing. So what I think all of this underscores is people that want an anti-establishment, somebody who is going to go in and change things up and deliver what the people want, much more of a populist message.

And so I think this is a warning sign not to Republicans and not to Democrats. I think this is a warning sign really to establishment candidates that they need to get with the program and start speaking to the people in a way that resonates, that is authentic and a way that people are going to trust them again, because it's not just the president's approval rating is low.

It's all Congress.

CAVUTO: No, you're right about that.

CARTER: It's all politicians. It's all establishment. It's all institutions.

People don't trust the same things they did before. And so the candidates are going to have to look at that carefully. And so when Bannon talks about taking candidates and putting out there anti-establishment candidates, that's who I should be worried about. That's what I would looking at as we're coming into the midterms.

CAVUTO: All right, Lee, thank you very, very much, Lee Carter.

CARTER: Great to be here.

CAVUTO: Speaking of these crucial elections, we will be live covering them on FOX Business Network starting at 8:00 p.m. until whenever, because they will have a big consequence for you and your money and your future and, as I said with Lee, could telegraph how even the midterms go.

Oftentimes, they do we. So, will watch that very, very closely.

Meanwhile, you know about the latest shooting, the latest, I say, in Texas.

Bishop T.D. Jakes on how we can step back and deal.


CAVUTO: All right, big deals, the talk of big tax cuts enough for big records at the corner of Wall and Broad.

The Dow, Nasdaq, S&P 500 all closing at record highs. To this crowd, worry is not an option -- after this.


CAVUTO: You know, they just sort of numb you after a while. Think about this, 26 dead, 20 wounded, a horrific shooting at a church, a church in Texas, the youngest 18 months, the oldest 77.

To Bishop T.D. Jakes on step back and try to cope. His bestseller gets into these and other issues about our great inner potential. Sometimes, that has nothing to do with religion and everything to do with our inner being.

He joins us right now.

Bishop, I hate to meet with you on an occasion like this. But a lot of people come back and say, and they have heard a number of preachers on our air and elsewhere saying that God is there to unify us and support us and get us through this, but they come back and say, well, why did God let this happen? What do you say?

BISHOP T.D. JAKES, PASTOR, THE POTTER'S HOUSE: You know, that's a common question that you get during times like these.

But I think that that kind of shifts the responsibility for what is going on in this country into the heavenly realm. I think that there are so many things that we can do as men that would help situations like this that, before we lay the blame at the feet of the cross, I think we really need to look at the way we handle guns, the way we love people, the way we report warning signs, the way we have dysfunctions and the history of people who are mentally incompetent.

This isn't an act of God. This is an act of man, and a terrible act, at that. We don't really try to equate that with being a move of God. There are so many things that we can do as men that will help to alleviate these types of tragedies.

CAVUTO: You're right about that. I'm wondering, Bishop, if there's something we're missing, because in the case of gun laws, they might not have changed things here.

And I don't want to get into a gun law debate, pro or con, but that this guy failed to get a gun permit, yet had a gun, that he had a long record, to your point, and sending some pretty nasty, threatening texts, and yet authorities either were not alerted or didn't act or both.

So you're right. There's some gaping holes in our system that allow this kind of thing to happen more frequently than we would like, huh?

JAKES: You know, Neil, we have to look at the whole cadre of things that are at our disposal. I don't think that it's one size fits all.

But we all have to be aware of these volatile relationships, these domestic violence cases that are reported, people threatening to go off the edge, people that we work with, that we live with, that we love, that we care about.

We have to be more observant and take them more seriously today. That's part of the responsibility. We certainly need to look at gun control as it relates to people with mental dysfunctions and so forth, at least having a very serious discussion about it.

Churches have to look at how we can be better protected while we worship. There's just a whole cadre of things that we have to consider in order to diminish the amount of horrific tragedies that we keep seeing on television over and over again.

CAVUTO: We have learned increasingly in our society -- maybe it's gotten increasingly violent, certainly over the last 17 or 18 months, a disproportionate number of shootings, to your point.

And they just say that that is an issue that is uniquely American. Of course, we see it abroad as well. And, on a per capita basis, you could make an argument both ways, I guess.

But do you ever get a sense, when you talk to your parishioners, and they live in fear and they live just wondering whether they will be next? I actually heard someone this morning say, well, maybe we should lock churches. Maybe we should be inspecting who comes in, even frisk them.

How do you feel about that?

JAKES: Well, you know, we don't want to go overboard, but we do want to be cautious.

Every pastor, every leader feels responsible to create a safe environment for people to come and to worship and to have fellowship. But it's difficult to control relatives and in-laws and all of those sorts of things to except them from being able to be in service.

We have had security at The Potter's House for a number of years because we're blatantly aware of these kinds of problems and how they do come up in any gathering when you have crowds of people amassing themselves together.

CAVUTO: What does that mean, Bishop? Because you attract thousands. I mean, how do you handle that?

JAKES: Well, I mean, we have police officers directing traffic from the moment we come in. We have security inside the building.

We have some safety officers that are aware to look for things and to be vigilant. All of our ushers are trained to be observant of those sorts of things. And we work together as a team, in the same way that our country has to work together as a team.

It's not just one pill that we take and all of this goes away. But we all have a responsibility to be vigilant, to be watchful, and to be observant and, when we see something, to try to help people resolve it without the loss of lives that we're seeing here today, which is just an absolute -- it's heartbreaking to watch it.

CAVUTO: Yes. And I'm just thinking, it's one thing for large event sites like your own, when you have a Sunday service. It's quite another for all of these relatively small churches.

I could go back to what happened in Texas over the weekend or in Charleston two years ago. But we might have to rethink all of that, huh?

JAKES: We have to rethink it, because it's not just churches. It's theaters, it's restaurants.

CAVUTO: Right.

JAKES: We're seeing it displayed in every place where people are gathered together.

We're having to think differently than our parents did about how we protect those with whom we have to do. But I think it starts before we get to the event. I want to go back and underscore it starts in the house around the dinner table.

It starts in arguments and discussions over the phone. We just really have to take these things more seriously. And then, when we do reach out to the police department, they have to take them more seriously as well, because so many times, when we do report something, if we don't have an actual incident, it is often disregarded.

And we have to rethink how we process the kinds of problems and the stress factor that you mentioned, which is so prevalent amongst all people today. I think people are so stressed out, they're right on the verge.

And people that you thought wouldn't do that flip over the edge so easily. We have to be our brother's keeper.

CAVUTO: Well, they are few and far between, but the few obviously do wreak a great deal of havoc.

Bishop, thank you for taking the time.

JAKES: A real pleasure. Thanks for having me.

CAVUTO: T.D. Jakes, the runaway bestseller "Soar" makes you think about the inner potential we all have, the good potential.

We will have more after this.



CAVUTO: Do you have any U.S. bonds, any treasuries at all?


CAVUTO: Really?

BIN TALAL: No. We only get to invest in stocks.

CAVUTO: In stocks. So, that's not a -- you're not saying you are not invested because you have little faith in the country?

BIN TALAL: Yes. Yes.

No, no, my faith is United States through investing in the stock market.


CAVUTO: All right. He's out. A very big shakeup that included the guy that they call Warren Buffet of the Middle East, Saudi Arabia Prince Alwaleed Bin Talal.

He was a big investor in the U.S. stock market, including some big American companies, like Apple, Twitter, Citigroup, for a good long while, 21st Century Fox, our parent, by the way.

Fox Business Network's Charlie Gasparino, Gary Kaltbaum of Kaltbaum Capital Management.

Gary, what do you think of this? This -- as part of this shakeup in Saudi Arabia, where now they're taking all of these guys, about a dozen of them, and placing them under house arrest at a Ritz-Carlton in Riyadh, man, what is going on here?

GARY KALTBAUM, KALTBAUM CAPITAL MANAGEMENT: Well, you're a monarchy with no written constitution and no courts, and you're trying to change the playing field and solidify power in just a few people's hands, and this is what you get

This is what totalitarianism is all about is -- you use the term corruption and go after people. But I don't think it is going to affect anything, because there's one word when it comes to countries, and that is greed. They just had two weeks ago a big investment conference that was on TV across the globe.

They know they got to continue to grow their business and diversify. And that's why they're getting to all these other areas. And I think nothing is going to change as we move forward.

CAVUTO: At that investment conference, it's not as if the new kind of sheik in charge telegraphed that he would be corralling all of the threats to the kingdom.

KALTBAUM: Why would he do that?


CAVUTO: But it is what it is.

It didn't really affect our markets, didn't affect the global markets, didn't affect Broadcom offering more than $100 billion for Qualcomm or talk that Disney and Fox, at least in the recent past, were in talks with each other.

So, is this as big of a deal as we're making it out to be?

CHARLIE GASPARINO, FOX NEWS SENIOR CORRESPONDENT: Well, listen, when a major businessman -- Bin Talal Alwaleed -- Prince Alwaleed is one of the biggest financiers in the globe today.

He invests in all sorts of companies. He takes big -- he has big positions or had one in our company, 21st Century Fox.

CAVUTO: Right.

GASPARINO: You go down the line.

Citigroup, he basically was the board member that the Citigroup management listened to for years. If he said something, they jumped.

CAVUTO: Who is doing that now? Do we know who is -- of the royal family, who is similarly involved?

GASPARINO: I don't know.

And I don't know who he is going to give his number two, who he's going to hand off the reins of his company to. And, you know, here's the interesting thing, is, OK, so You put this guy in jail. What happens to the portfolio? I don't know.

And it is going to have some impact. Listen , it's not a global existential threat like 9/11 was. That's for sure. But it is interesting.

CAVUTO: Right.

GASPARINO: And Gary hit it right out of the park with that last statement.

This is sort of the playbook that these despotic countries use all the time. They go out there. They -- when they look, when certain leaders look to sort of consolidate power, they start jailing the business guys that were associated with the old regime.

And they actually -- a lot of times, they take over their wealth. Vladimir Putin has done it.

KALTBAUM: Oh, yes.

GASPARINO: They have done it in China and they're doing it here.

And it's what separates us from them. And that's something that -- listen, why do people -- why does Prince Alwaleed buy stocks in the U.S.? Because we do actually have a rule of law. It's not like one guy comes in and you're about to go to jail.

CAVUTO: Well, then I worry. Then I worry about it, because, Gary, there - - people have this idea that Saudi Arabia is this stable kingdom and everything else.

But they're dealing with a lot of internal friction.


CAVUTO: And it's not accidental that some of these so-called progressive moves, just letting women drive, for example, deemed a progressive move, whatever. But I guess, in that country, it's a progressive move.

But they're -- they're not the most secure or stable. So, what do you make of that and then the long-term potential impact on us?

KALTBAUM: And it tells you they're not stable by just what they're doing.

Look, what is happening is, they have -- I think the guy, he is a 32-year- old prince. He's well-followed. And I hate this, because I know Charlie and millennials. It's big millennial time in Saudi Arabia time.


KALTBAUM: And that's why they're looking at changing what is happening there moving forward.

But in order to move forward, it looks like they're moving backwards by just rounding up everybody.


KALTBAUM: By the way, they're calling this phase one of the roundup. So this is just chapter one.

There is going to be a lot more we're going to be hearing about in the days and weeks ahead.

GASPARINO: And we have a lot -- we have a lot at stake here. I mean, Saudi Arabia is a -- sort of is our -- is an ally of ours against Iran.


CAVUTO: Well, we have placed our bets with this new guy.

GASPARINO: And we have placed our bets -- and we are placing our bets with this new guy, so much so, Donald Trump was out there trying to get him to list -- trying to get them to list that new Saudi Aramco deal, the big company that controls all their...

CAVUTO: Is that still on, with everything that is going on?

GASPARINO: I think -- yes, I think it's on.


GASPARINO: The question is, where does it list? He's trying to get them to list in U.S. the New York Stock Exchange, which was pretty funny, Donald Trump as listing salesman, but anyway.


CAVUTO: If it doesn't happen, sad.

GASPARINO: Yes. That's right.

CAVUTO: All right, Charlie Gasparino, Gary Kaltbaum, thank you both very, very much.

In the meantime, Texas Attorney General Ken Paxton will be joining us. He has got an update on this investigation, not only into the Texas church shooting, but what made the shooter do it. So little we don't know. Maybe something he does -- after this.


CAVUTO: All right, the latest on this investigation into that Texas church shooting.

On the phone with us is Texas Attorney General Ken Paxton.

Mr. Attorney General, thank you for taking the time.

What do you know about the assailant, about Devin Kelley, and whether he had his sights set on this particular church simply because his mother-in- law went there, her mother went there? The mother-in-law wasn't there. The grandmother was. She's dead. Obviously, 25 others are as well.

This church was a focus for him.


I think -- I mean, definitely, the connection with his family, I think that played a part. Obviously, this is -- since he's deceased, it's difficult to get inside somebody's head, when they can't speak to you.

But I think it's definitely clear that he was connected because of family. I think he also found it an easy target, because he knew that first- responders were probably pretty far away, given that it was a small community and there was no local police department. It's just the sheriff's department. So, I think he was playing on both of those factors.

CAVUTO: General, do we know how he was able to get a gun, when he failed to get a permit?

PAXTON: That is something that is being looked at right now.

I don't think we have all of the information on that, because I think, given his history in the military, and the fact that he had issues in the military and shouldn't -- shouldn't have been able to get a gun, I don't think. I think that is an open question right now.

CAVUTO: In light of this latest mass shooting, a lot of people are saying we have obviously have to take more precautionary measures. In New York last week, now they're putting up concrete dividers and blockades along what was a bicycle path that was unobstructed.

I just had T.D. Jakes, of course, the bestselling author and bishop, who had been saying, at his facility -- of course, it's a large facility -- thousands congregate there every week for services.

PAXTON: Right.

CAVUTO: There's police protection. They check what you are bringing in, et cetera.

That's a whole 'nother matter for small churches such as this one. But what are your thoughts on that?

PAXTON: Well, I think we're going to have to pay a lot more attention to this, because you know that this is going to happen again.

And so like I go to a relatively large church in the Dallas area. We security constantly there even when services are not going on. But for smaller charges and even smaller -- for schools and businesses, I think they need to think through their policies on what they're going to do if something like this occurs, and maybe have people in the congregation trained and prepared, because if somebody is shooting an automatic weapon, if you're a rural area, it takes 20 minutes.

But even if you're a suburban area, five to seven minutes, you're losing potentially hundreds of people pretty quickly.

CAVUTO: The reason why it's come up again, as you know, General, is that a lot of buildings in New York post-9/11, you need to pass through security to get in.

As unfathomable as it seemed prior to 9/11, now it's commonplace certainly in big cities, certainly in Manhattan. I cannot imagine the next level would be locking churches or screening parishioners coming in. But maybe it's just a sign of the times, right?

PAXTON: Well, at the very least, I think that could happen in some churches.

But, at the very least, I think you need to have a plan in place for what you're going to do if an incident like this occurs in your church, so that there's a possibility of at least mitigating loss.


Another thing -- and I just want your quick thoughts on it right now -- is they're already looking at gun laws and the like. This does not appear to have been motivated by that or some slip-up here, because he did find a way to get a gun, even though, under existing laws, he failed a permit that would have allowed him to get one.

PAXTON: Yes, and I don't really quite understand the argument here.


PAXTON: Given the fact that this guy was willing to violate laws that relate to killing people, having another gun law, I don't see that would have impacted.

All that does is impact law-abiding citizens from being able to protect themselves. And, certainly, that's our concern here is we want law-abiding citizens to be able to protect themselves.

CAVUTO: All right, Ken Paxton, attorney general from Texas, which has had more than its share of grief and difficulties to deal with, from hurricanes to this, thank you, sir, very, very much.

PAXTON: Hey, thank you for having me on.

CAVUTO: All right.

Two big states are having gubernatorial elections, Virginia and New Jersey. Now, for you in the other 48, you say, why does that affect me?

Because, sometimes, it can affect how general voting goes nationally a year later.

I will explain after this.


CAVUTO: For Virginia and New Jersey, two crucial gubernatorial elections.

I will be hosting live coverage on Fox Business Network as the results roll in. And we will have a chance to gauge the late market and futures reaction as well.

There is a lot riding at stake here. A lot of people have discovered that these elections can trigger what happens in the midterms, sometimes more than you know. That's why we're on it. If it matters to you, it matters to us.

We will join you live.

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