Transcripts For FBC Cavuto Coast To Coast 20170303

And youre relentless on this tax cut thing. I think these markets are weaving in and out, up and down based on the prospect for this thing coming to spas. Stuart i think so. Neil its undeniable. You can time it tick for tick every single day. The better it looks, the better stocks look. I think thats undeniable. Touche to you, my friend. Stuart thank you for the support there, neil. Its all yours. Neil thank you very much, stuart. All right, well, this russia thing and who knew what and when, Jeff Sessions recusing himself and all of that, its just another one of these wrinkles that develop and get in the way of things stuart was talking about he wants to see republicans doing and a whole lot of other investors want to see republicans doing, that is providing what could be the biggest tax cut in a generation. Whether you think justifiable preoccupied or not, investors sort of take their marbles and go home or, certainly, their gains and go home. That has been the case certainly over the last couple of days. Whether it continues or this is much ado about nothing, anyones guess. But, obviously, these distractions are real and sidelining some of these other interests to the markets, note my tax cuts and regulation cuts, all that stuff. Connell mcshane here to cut to the chase. Reporter neil, youre right about that. Every time we see this subject get breached, we see the market gets worried. The white house is desperate to stay on message generally speaking. We saw the president o yesterday when he was in newport news, virginia, pushing the military spending message. Today its a School Choice event in orlando, florida. But the sessions story is making it very, very difficult to do that. Its still at the top of the news in many places, and the attorney general himself made this argument about it when he was interviewed last night on fox news by tucker carlson. I dont think what was said about that heating i had with the Russian Ambassador was legitimate. , i think it was hyped beyond reason, and i think it was unfair. Reporter the president also coming to his defense, he tweeted out a statement about the whole sessions ordeal, the meeting with the ambassador. Jeff sessions an honest man, he did not sigh anything wrong. He could say anything wrong. It was clearly not intentional. The real story, all of the illegal leaks of classified and other information. It is a total witch hunt. Funny enough, the same term the Russian Foreign minister asked when he was speaking about this whole ordeal today. So why is it so difficult to put this story, you know, in the Rearview Mirror . I mean, number one, to be fair, theres some questions that still need to be answered, there are investigations that are still underway, so in that way its an active story. But you also have democrats in washington just absolutely going for the jugular. Watch. The fact that the attorney general, the top cop in our country, lied under oath to the American People is grounds for him to resign. For the good of the country, attorney general sessions should resign. Reporter so we know theres no resignation coming, but we do as you pointed out, neil have the recusal. It came in last night from all investigations related to the alged russian campai meddling. And then adding to the drama, you have the acting Deputy Attorney general to take over this investigation until the actual deputy is in place and possibly confirmed next week. The president , again, will be in orlando even today, neil, trying to get the focus back on his agenda. That agenda that was just outlined in his speech on tuesday night, if we all remember that. Seems so long ago. Neil indeed. Connell, thank you very much. Connell mcshane. Then there is the issue of what to do about obamacare, repeal, replace, whatever. But theres sharp divisions among republicans, some conservatives like rand paul who tell me, look, were not going to replace one Big Government albatross of a program with a slightly less Big Government albatross of a program. Heres what he told me last night. The fear is republicans, theyre falling apart. But theres another way to look at this, neil. Put forward the bill we already voted on, youll get unanimous support, be done with it neil wait a minute, its a simple reeel. Yeah, simple repeal. And then put forward replacement at the same time as a separate bill. See, thats what ive been arguing for. Id let the democrats put forward a replacement too. Id give them a vote neil not everyone agrees on a replacement, so youre back to square one. Thats what would happen, youd figure that out through voting. The Big Government people want a new entitlement program, they want Medicaid Expansion and they want somehow, you know, to have federal money pay for all this. Lets vote on that as a separate bill neil this is falling apart, isnt it . [laughter] no, no, neil. No, no, no, no, no. Neil, its simple. You vote on complete repeal separate neil they dont want to do it. I know they dont want to do it, but if they want conservatives to vote for repeal, theyre going to have to give it to us separate from neil assuming they dont do that, senator, then the tax cut thing is delayed if not off, right . Well, what happens is theres a jockeying going back and forth, and they will have to see if they can convince conservatives to vote for their plan. But i can tell you it will not pass with a new entitlement program, the cadillac tax and they keep the individual mandate. These are the things weve been campaigning against for years now. Neil all right. They cant keep obamacare lite and expect conservatives to vote fort. Neil i stand by wt i said i my interview there, it is falling apt, and theres no other way to put a spin on it, especially when republicans meet behind closed doors and try to prevent the likes of senator rand paul and ted cruz and so many others from having a role in this and weighing in on this. All of this at the same time were seeing Vice President pence this is live right now Speaker Paul Ryan and health and Human Services secretary tom price in wisconsin. They are pitching their own plan, but heres what sticks in the craw of the likes of rand paul, that these guys are all in agreement on this replacement approach that some conservatives and, again, i mentioned three of them right now in the senate, thats all you need. Any more than two all of a sudden this thing is problem mat you can. They agree with problematic. They agree on an approach that theyre going to cook up in the house, then its an up or down vote in the senate. Three republican senators who are against it right now, this thing is dead. The approach that theyre taking is dead. Theres not that much wiggle room here. At issue here is how big a Government Role do we want in the Nations Health care system. Some of the leadership is talking about these tax cents that would tax created that would provide credits that would provide the means. You get the rub. This is nowhere near done. And the reason why this kind of thing weighs on the markets is because not only does it delay getting any progress going on repealing and replacing obamacare, but it moves everything back when it comes to the tax consistents. So can you say antsy . To gerri willis and charlie gasparino. You know, lindsay, im looking at this, and im saying, all right, everything has to fall into place just right. And its not an easy task, and im not blaming republicans here. But they gave the impression that it would be, you know, wham bam done, and its not going to be wham bam doing right . And thats what were worried about, the markets reaction to this further delay. On tuesday i think the market s very clear that theyre willg to give the obama excuse me, the Trump Administration some leeway. They were very happy with the articulate presentation of the overall, still very progrowth agenda that remains the focus of the Trump Administration. But at some point, were going to lose a lot of confidence, a lot of momentum that weve seen in the market if we dont see specifics. Now, he did talk about some specifics in terms of obamacare, extending hsas, talking about being able to buy insurance across state borders, but there was no outline, no timetable, and there was no financing specifics which is really going to continue to give the market the optimism it needs that were going to see a deal and, furthermore, that were going to move beyond obamacare and start focusing on taxes. And thats really what the market neil and thats the delay, thats the worry. You know, gerri, one of the things too, say what you will, most people like the headlines, you know, the coverage for people who dont have it. Right. Neil cover average for those with preexisting conditions who used to be unable to get it. Where they differ is how you pay for all that. And what conservatives are feeling to the leadership they feel is ignoring them is, look, youre just replacing one monostros city with a slightly smaller one, and were not going to sign onto that. And that is a real palpable revolt. Right. Let me tell you specifics on that. Ive just spent time reporting these numbers because its been absolutely unclear what this tax credit was going to be and how much we were going to spend for it. What i understand if you score that better way plan, the original better way plan, the cost of that tax credit is 43 44 billion a year. So youre covering lots of people, youre giving them an option not for people who are on employersponsored health care, but others. Lots of people will turn to this, theyll be able to use this tax credit meehl thatll but to pay for that then, youre going to start taxing those youre going to cut out the expansion of medicaid. Thats what pays for it. And apparently, i talked to the folks at the center for health and economy, they scored this. What they are saying is that, look, if you take out that Medicaid Expansion be, it pays for th, and netnet the dget impact iactually, you know, pretty much even. Neil so there you go. I think the bottom line if it was that easy, they would have done it though. Well, no neil apparently its not easy. Medicaid is highly, highly controversial. Neil there are a lot of those that dont like it. But having said that, the bottom line here is that these markets, they are priced for perfection, everything getting done to lindsays earlier point, and i think that now maybe realitys catching up here, you know . Its been a heady advance, and im wondering whether the folks yaw talk to, charlie, are saying, gee, maybe this doesnt happen, certainly in the august timetable. Well, you know, hope remains eternal. A lot of wall street like they like president obama President Trump because hes not president obama. You get some credit for that. You give a decent speech, you talk some free market politics, and markets go up. Stock traders trade off headlines. I will say this, though, and heres the underlying fear spoke spoken on wall street, and you hear a lot of political guys say this too, that the Trump Administration made this huge and not very smart tactical error in what their first 100day agenda was going to be. They went after the most difficult, the most contentious issue in american politics right now which Everybody Knows is not going to be a 100danish shoe. Thats obamacare. Instead of going after the low hanging fruit which probably will have an Immediate Impact on the economy but they did that for let me just i dont care about the tactical reason. If they would have cut taxes, got rid of regulation where theres broad agreement, then deal with obamacare, you could have dealt with obamacare in the midst of a rising stock market neil were not there now. Well, now youre stuck. Neil you might be right. So when you talk to traders and other people, investors in general in the aggregate, do they start seeing this thing stripping away . I mean, it was jamie dimon who earlier in the week ahead of my, you know, interview with the treasury secretary said, look, we admire what youre trying to do and the august deadline aint happening. We dont think its a 2017 development at all, more like 2018, you know, knock on whatever. He might be right. Then whats the fallout . Again, theres still a certain amount of confidence in the marketplace right now, and when were talking to investors, market participants, theyre still talking about, well, things can get better. And weve been waiting for this can get better for quite some time neil and we should stress, the markets are still up even with the selloff absolutely, and they remain forward looking. Whats different in the underlying economy now prior to trumps election . Really nothing. Growth unrevised at the end of the year leaving us at an anemic 1. 6 neil and if theyre delayed really no pathway other than maintaining the current status quo which has left us with lackluster growth for the past several years. And the market is way overvalued at current [inaudible] no, no, you talk about wait a second [inaudible conversations] theres a lot of stuff going on in the economy beyond the markets. Wait a second im right. You cant argue with those numbers. Market prices in earnings, what is the p. E. Ratio of the 22. 15. And what is it trading at now . 29. Neil whoa, whoa, this is an important distinction [inaudible conversations] neil youre saying that the market is trading at 29 times earnings. I thoughting it was 22. Neil identify not herald 29, i think you made that up. The average is 15. Its way overvalued neil but theres a difference between forward and i know, but if you neil we had some knucklehead here with a different suit right. Neil who said, yeah, its a little rich but not outlandishly rich. Thats what they said in 2007. Neil thats where i wanted to pick up. I do hear what youre saying. Im joking with you, but what do you make of that, that if this market were priced for this thing getting done, letgo back to the health care thing and thats delayed a little bit. How does the market deal with that . What are you hearing from folks if its delayed . And, by the way, you know, handling this health care thing right and not rushing a bad solution that could be worse than what youre dealing with might be a good idea anyway, but what do you think of that . Well, i think the problem is, is that it delays tax reform. I think thats the major thing the broad market is concerned with, is do we get tax reform and how quickly. I have to tell you, to the idea that the markets are overvalued, how long did it take us to go through this last thousand points . 24 trading days d. [inaudible conversations] you saying the markets are not overvalued . No, no, no, charlie, if youd listen and stop talking and let me make my point, let me make my point which is actually supporting what youre saying, is the last time that happened was during the dot. Com boom and then subsequent crash. So we have seen incredible gains neil let me ask you something, do you think right now that the markets, if you get the tax cuts, say what you will whether overvalued or not, theyre certainly rich. That it will be justified . The tax cuts will spur growth, earnings so all of a sudden the math, to charlies point and to gerris point looks better. What do you think of that . If we see tax reforms in the actual form as proposed on the campaign trail. But getting that version of tax reform is very unlikely. So it may not be neil what do you mean by that . Were talking about consolidating seven to three tax brackets, thats very unlikely neil so you dont think the rates will be as low as theyre being telegraphed . Absolutely not. I think thats very, very ambitious. Corporate tax rate will be. I think maybe 20, 25 is a realistic aim. Neil you get to 25 , thats going to because theyre fully expecting at least 20. I think thats going to be very difficult to sell, especially from the fact that, remember, were still talking about out of control Government Spending which is number two neil you guys are out of control. [laughter] i want to thank you all very much. Well have to watch that closely. We could get some of this telegraphed on what these guys are coming to agreement on, the health care thing. But remember, thats obama folks who are now telling the trump folks, see . Youre in charge of this, and now youre botching it. Well have more after this. Your Insurance Company wont replace the full value of your totaled new car. The guy says you picked the wrong insurance plan. No, i picked the wrong Insurance Company. With Liberty Mutual new car replacement™, you wont have to worry about replacing your car because youll get the full value back including depreciation. And if you have more than one Liberty Mutual policy, you qualify for a multipolicy discount, saving you money on your car and home coverage. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. Neil all right, if you think weve been seeing a disproportionate number of stories on the Trump Administration that appear to be slightly negative, you are right. A study just conducted about 88 of them have been deemed negative in the first 30 or so days of the Trump Administration. So its fine, and we always say youre fine to cover the negative news be, we do as well, but well also point out some of the good stuff going on like the increased market worth and all these ceos planning to hire more in america and boost their u. S. Operations. We feel that, you know, 24 hours on the air, you have time to get into all this stuff. But apparently not everyone is of that mindset. The Media Centers rich noise has a little more context. It sounds to me, rich, that theres a disproportionate attention to the negative stuff, but overwhelmingly so, right . Oh, extremely overwhelmingly. I mean, the first 30 days of a presidency is normally when a president gets their best coverage, and this was phenomenally negative. The establishment media, abc, cbs, nbc, are covering trump as if hes some sort of Natural Disaster as opposed to a new president. The coverage is tremendous. Its twice as intense as it was during the campaign. 54 of all the news was about trump and his administration, and the tone was almost completely negative, 88 . In campaign it was 91 negative, so i guess thats 3 bump is his honeymoon. Neil you know what i notice in the media world, were very fixated on how our colleagues think about us and whether they respect us and like us and all that. So away want to do the kind of we want to do the kind of things that we think matches that prevailing view x if you buy the fact that 97 of journalists identify themselves as liberals, progressives, if you will, and have no problem seeing critical stories of donald trump and getting, you know, under his skin as sort of a badge of honor, it is not a big mystery that were seeing this type of coverage, right . No. And certainly, donald trump has needled the press more than a few times since he started his campaign, but also since he became president. And i think they react emotionally to that as well. But the kinds of stories we were seeing with president obamas first month in office, theres a lot of Human Interest stories about his family, about the wife, the kids, the pet, you know, just positive stuff that isnt really political, but sort of builds up into a popular celebrity. That is nonexistent in the first 30 days of the Trump Administration. Its all about policy, its about controversies or invented scandals, and its just negative, negative, negative. Neil and, by the way, i could see, you know, eight years ago we had the first africanamerican president , almost everything he did touched, announced, said, joked about was worthy of attention, ill go that far. What i am saying then is the novelty of a man who had no elected office and is a businessman, thats his only background that he brings to the table and the revolutionary spirit that name with that, again whether you agree or disagree, is worthy at least some of that same cover an im not even saying all,ut its just nonexistent. Yeah. Its pretty close to nonexistent. And the voters who support him, the voters who, you know, the media admitted after the election they were out of touch with, you know, this greataway of voters and their great wave of voters. Now theyre sort of doubling down on their same attitude. Neil absolutely. Theyre still disconnected with those voters and missing the story all over again. Neil no, youre right about that. They always call him thinskinned, but we tend to be a little thinskinned ourselves and a little selfabsorbed. By the way, i know you cant see, but i hope my hairs okay. [laughter] thank you very much, rich, good seeing you again. All right, snap a day after is still snapping, people still buying. So maybe this thing is the real deal, and these guys are still real rich . After this. Neil all right, snap continuing to soar, followup after yesterday, nearly a 50 advance. We continue to pick up on that today. Charles payne here on whats going on, and, you know, you heard all the naysayers and people who said, wait a minute, theres no there there. Of course, we always hear about this with internetrelated offeringses, but what do you make of this continued robust response . You know, its too early to say that the naysayers are wrong, but this is one of these things where weve got a market thats up near alltime at alltime highs, and most of the public has missed out, and a lot of people are say, well, i know this snap thing, and so its sort of feeding on itself right now. Trading at 200 million shares, more than that yesterday. Thats the entire float. Its one of these things where if youre not sitting in front of a screen and you can get in and out of these things, i still think its smart particularly now not to chase it, but i dont think this is whether its justified. It is what it is right now. Neil youre one of the best stock pickers i know, so when you pick an investment, do you worry about when as a shareholder youll have control or a say . Absolutely. Neil because the rap against this company is, well, they own 90 of the shares, the two founders. And its like a viselike grip. You have to worry about that because the management may have no ability to have any accountability. And sometimes, particularly in silicon valley, they become enamored with the, with things that are sometimes esoteric rather than the bottom line. Neil yeah, but they want to make money. Yeah. But if youre worth 10 billion neil all right, all right. If youre a billionaire, listen, jeff bezos, he was criticized for not letting money flow to the bottom line, but everything he did, every time he made money, he did plow it back into the business neil still does. On the other hand, i think the management of twitter has made a tremendous amount of mistakes, and so its tough to say, but you do want a voice. You may not always have an equal voice. Ive seen structures where management, their voting stock is worth fe times more than normal, but its good to have someone whos buying into your company to have some sort of a voice. Neil what do you care if youre going to make money hand over fist . Well, i dont know that you will if you cant hold management accountable. Neil okay. No, thats a very good point. Stepping back from this, the reason why it was considered important and a seminal event of the week is it could be a harbinger of things to come for the future, not only tech offerings, but general offerings. Do you buy that . Absolutely. If youre one of these socalled unicorns, one of these companies with multibillion dollar valuation, not making profits yet because, lets face it, why would a company go public in the first place . Its known as an exit strategy, all right . So youre thinking, whoa, maybe now is a time to jump in. The markets at alltime highs, enthusiasm is up, and people may overlook the fact that were not making money, and we cant promise them that we ever will. Neil one other aspect of this, the fact that the two founders control the lions share of the stock, another thing that theyve tried to do to avoid repeats of the facebook debacle, i mean, facebook turned around, is to lock in the number of shares, a quarter of the float, the offering cant be sold for upwards of a year or more. Does that sort of stuff work . It puts a bottom on the stock. Neil it does. Two things that put a bottom on this stock in the last 24 hours, the ability, you know, holding back a lot of people from selling, also the revelation that Nbc Universal bought 500 million worth. To have a big name that, they didnt buy with everyone else, so they had it at 17, b that gave it a little bit of gravitas. Hey, if a name like that is in there, maybe theres a shot that this is, quoteunquote, real. Neil thanks, buddy. Good to see you. You getting into this on your show tonight . With respect to a Company Called world online gone public being the sign of a market crash back in the day. It was a dutch online company, they went public, and at the celebration a reporter said to the ceo, how do you feel . She said, its okay, but id already sold all my stock. Neil wow. 6 p. M. Eastern time tonight. He gets it, and he gets it really, really well. Ask so thats a classic case where you can make money. Hes not wedded, for example, as i am, to a prompter. [laughter] like, hello. All right, weve got a lot more coming up here including this fight in washington over whats going to happen to this obamacare peel and replace. You know, i know charles has been on this, i know weve been on this. You know, this market was kind of priced for perfection, still is. Now, it might all pan out, but the assumption was that the sessions thing would blow over, maybe it will, the Obamacare Repeal and replace thing will get fixed, maybe it will. The tax cut thing goes into effect in august as treasury secretary mnuchin said, maybe it will. But those are maybe it will things that all have to happen precisely on timeing on schedule. Well see, maybe it will. Me to reach my goals. Inside so i liked when my doctor told me i may reach my blood sugar and a1c goals by activating whats within me with onceweekly trulicity. Trulicity is not insulin. It helps activate my body to do what its supposed to do release its own insulin. Trulicity responds when my blood sugar rises. 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Common side effects include nausea, diarrhea, vomiting, decreased appetite and indigestion. Some side effects can lead to dehydration, which may make existing kidney problems worse. With trulicity, i click to activate whats within me. If you want help improving your a1c and blood sugar numbers with a noninsulin option click to activate your within. Ask your doctor about onceweekly trulicity. Wheyou wantve somto protect it. E, at legalzoom, our network of attorneys can help you every step of the way. With an estate plan including wills or a living trust that grows along with you and your family. Legalzoom. Legal help is here. Neil all right, welcome back. One of my favorite guests is with me. I do want to talk about the fed governors comments, they get a little more import ahead of a fed meeting. The vice chair, stanley fisher, on the wires right now saying, you know, we cld be seeing that andooking awhat could a decisive meeting where theyre responding to a clear pickup in economic activity. Thats the view from fischer. Were going to hear from the big cheese, janet yellen, at the of the hour, and she will, were told, be taking questions here. These guys are very coy on what they say, and its sort of like Reading Chicken entrails and tea leaves. But the gist is that they see things going along well enough to hike Interest Rates again, probably by a quarter point later on this month. We shall see. Mean while, democrats are piling on this whole Jeff Sessions situation over russia and what he knew and when he knew it and whether there were other Administration Officials who knew it all the way up to President Trump. To general jack keane now on how bad this fallout gets. Always good to see you, general. We were talking to some market wonks who were saying their selfish fear is that it gets away from an agenda that they like, you know . Tax cuts, lower regulations. And that is their big concern. And one of the reasons why the markets have been hiccupping in the last couple of days. What do you think . First of all, its a huge win for russia. Just think about it, i mean, they were able to neil yeah, yeah. They were able to penetrate the defends of the Democratic National committee quite successfully, could not do it with the republicans neil thats a good point, and they did try. And ever since that time, their objective clearly was to undermine the democratic process. And ever since that time theres one story after another at least alleging that the russians have had contact with people in the Trump Administration. There is absolutely no evidence to suggest theres such a thing, but its a huge psychological win for russia. Neil and a huge psychological win for the democrats who had a chance to change the narrative right after the president s widely after i claimed widelyacclaimed speech before congress and reclaim the offensive. For how long . Yeah, clearly. That, unfortunately, has happened. And, you know, terrible in terms of attorney general sessions. Ive known him for years, and everybody who knows Jeff Sessions knows that hes an honorable man. Neil so we played the full long question that he got which puts it into better perspective here, that he thought he was answering a question about operatives and surrogates and all when he left out the fact that he had met with the Russian Ambassador. But do you think he hurt himself by not following up after that session even if his staff reminded him, you know, boss, maybe you should clarify, you did meet with the Russian Ambassador in your senate office, but just get it out there, the fact that he didnt is fueling this argument he was hiding something. What do you think . Well, i think thats the mistake that he made. I dont think he really made any mistake in the testimony itself, because it was another question being asked, as you suggest. But particularly given the spotlight that general flynn had and the spotlight on him was as a result of a meeting with that same Russian Ambassador, and all that took place just a couple of weeks ago, at that time certainly he should have come forward and said, well, listen, i had a meeting with the Russian Ambassador as well. It was an innocuous, harmless meeting that we had, kind of routine. Yeah, that should have been done. Neil when you look back at this, its funny, this all got going when remember president obama in his waning weeks in office threw out 35 russian diplomats. Everyone was surprised that Vladimir Putin didnt follow in kind and do the same thing which is typically, i guess, what happens. So people even then started saying, well, wait a minute. Now, i could understand that Vladimir Putin is saying, well, why should i go tit for tat with this guy because hes going to be gone soon, so ill hold off on doing anything drastic. But people are reading into that nonaction on his part that there was a deal, that there was an understanding and the fact that president , president elect trump wasnt saying anything critical of him fueled that argument. Yeah, i think he did. And every, all the National Security team around President Trump has spoken very cleareyed about russian intent and how theyre ampling on u. S. Interests and those of our allieses, and we have to be willing to confront them and change their behavior. But i do think the president has always believed that he wants to negotiate with putin. And as a result of that, hes restrained himself from ever saying anything negative about him because he doesnt want to harm that negotiating deal before it takes place. Neil but he hasnt told his men and women in his cabinet and subcabinet levels to do the same. So theyre, you know, mattis has been quite critical, the defense secretary, on a number of questions that have popped up on russia. As well as the cia director. So if you had an administrationwide edict to go soft on the russians, it hasnt been that way. Oh, it hasnt happened at all. Quite the opposite. Theyre all very cleareyed, theyre all strongly opposed neil do you think the president is . I think he is too. But i do think that it was unnecessary on his part never to say anything negative about the number one thug in the world and how hes been imposing his will on people and what hes done in syria is absolutely horrific, it could be described accurately as a war crime in terms of neil thats what john mccain has said. Hes worried this president is setting a dangerous precedent with a guy whos not a nice guy. Yeah. But i think the policy when it goes forward will have two major thrusts to it. One is to engage putin, and the other one is a willing areness to confront putin willingness to confront putin as well and have a credible deterrence against him. I think both of those will go on at the same time, and well see if he has any success in negotiations. I suspect not. Neil well, ironically, it was Ronald Reagan who got detente really going with the russians and mikhail gorbachev, so theres precedent for the tough guy doing the negotiating thing. And they both did the same thing, neil, and that is they did rebuilding the military, something the russians, the chinese, the iranians Pay Attention to. When you back that up with intent neil yeah. Then you have a credible deterrence. Neil mean what you say, say what y mea general, good seeing you. Thank you for your Wonderful Service for this country. You do not mess with the general. I usually hold back on the tough questions when hes physically here. I cant wait until hes on remote, then ill just blast him. No. All right, were getting a lot more on this obamacare thing, repeal, replace. Youve heard that a million times. Whether you have this Health Care Package or not, it will matter to you how this goes because your tax cut that youve been looking forward to could depend on it. Im telling you, thats kind of on life support right now. Ill explain. The future of business in new york state is already in motion. Companies across the state are growing the economy, with the help of the lowest taxes in decades, a talented workforce, and worldclass innovations. Like in plattsburgh, where the most advanced transportation is already en route. And in corning, where the future is materializing. Let us help grow your companys tomorrow today at esd. Ny. Gov. As a combination of see products. And customers. Every ontime arrival is backed by thousands of od employees,. Who make sure the millions of products we ship arrive without damages. Because od employees treat customer service. Like our most important delivery. Od. Helping the world keep promises. Neil i got a great email from this woman, susan, who leapts me know. You know, neil, the tax cut is still going to happen, quit raining on this parade you trump hater. P. S. , i feel so bad that you survived your heart operation last summer. [laughter] that hurts my feelings. [laughter] all right. Weve got the chamber of commerce, Energy President here, says that this border tax stuff and l other stuff that comes in the way of getting the health care thing through, getting e you know, all this lineup of events that has to happen biased on a lot of these based on a lot of these other things happening including that border tax because, presumably, its going to pay for a lot of the things the president wants to do, but a lot of different opinions on that. Karen, very good to have you. Where does this stand right now . I dont see, and i might be wrong, the appetite is there or the votes are there. But maybe im missing something. Sure. Neil where do you see this going, and how does the chamber feel about it . Sure. Well, you know, the oil and its great to be with you. The oil and gas industry and the Utility Industry have some of the highest corporate effective tax rates in the country, so they are fullthroated supporters of Corporate Tax reform and bring down their rates so they can be more competitive. And in exchange for that, the border adjustment tax just like the broader Business Community some fare better than others. If youre a producer of domestic oil and gas and you dont import much to help you do that, you fare better than maybe, say, a refiner who wouldnt fare as well. So its complex, its different. Theyre analyzing, you know, their exposure. But the other component of this is canada, right . We still import a lot of oil and electricity from canada. And those products would likely become a little more expensive here. So theres a consumer aspect to this too. Neil all right. And certainly the nations retailers know that who have also been complaining about this, that their customers are going to pay for this. Theyre not going to be happy ant this, and its going to hurt them and their bottom line. Leaving that aside though, lets start handicapping how likely it is. I dont see the votes there, but i could be missing something. What are you seeing . Well, i think from the Business Community and the voters, Everybody Knows that we need to do something about taxes. Were uncompetitive around the world. Neil right. What do we need to trade for that. And if we go this route and it grows the economy and the dollar is stronger and everybody buys more and imports are cheaper, thats great. Then weve scored a home run. But what everybodys looking at is what if that doesnt all line up that way, and the economy doesnt grow, and the dollar doesnt remain strong, and currencies around the world change a little bit. Its really hard to figure out exactly whats going happen company by company, but even within industries they differ. On the vote side of things, you know, everybody wants to be able to be seen as bringing down taxes. Its what you trade for, thats what makes it complicated. Neil one final argument on this, id just be curious what you think, is netnet taxes go down to the degree were told theyre likely to go down, a top rate from, you know, 40 or so down to 33 , Corporate Taxes virtually cut in half to 20 . You do that, then even the worst retailer, the worst importer will be okay with that, because theyll come out way ahead. Do you buy that . Well, thats the theory, and thats one of the problems with this, were operating on a lot of theories and assumptions. What happens if we have china humming again, or what happens if theres economic collapse in another part of the world . Neil right, right. It is a risky bet, but weve got to do something, and at least weve got a blueprint on the table to start debate. Its not going to be easy. It took Ronald Reagan a long time, its going to take President Trump a long time, but at least all the players are talking about how we have to do this if we want to compete effectively. Neil all right. Thank you very, very much. Appreciate it. Good to see you. Neil again, for those of you who want to say youre being a crepe hanger, we played the same role here, the contrarian role looking at the pros and cons because we have time to cover both in the middle of the internet boom with, and we pointed out the importance of companies that earn money to justify stock prices that were eyepopping. So we always put that in some context for you because you would certainly come back after us if we were cheerleadinwith no base in reality. So thats where i stand. So to you critics out there [laughter] more after this. Your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. And if you do have an accident, our claims centers are available to assist you 24 7. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance neil all right. Remember when President Trump said he wanted to reopen the whole pipeline thing . He also had a little added feature that he sort of penciled into that deal where it would be u. S. Steel going into the pipeline itself. In other words, it would be u. S. Steel as part of the pipeline makeup, the pipe itself. Well, that apparently is proving a lot easier said than done. There are nuances to this that not even the most powerful man in the free world can change. Adam shapiro with the details. Hey, adam. Reporter nuance is a fancy way of saying washington, d. C. Bureaucracy. This is the memorandum President Trump signed january 24th requiring americanmade products like steel be used in all new pipelines as well as projects to retrofit, repair and expand pipelines in the United States. The ceo of United States steel says his company and other steel the steel necessary for those pipes even though most of it is currently produced overseas. Scott paul, a spokesman for the american iron and steel institute, says the president s directive will create jobs for American Steel workers. I know that there are American Steel workers who would be eager or to be called back into the mill, and there are American Steel makers who are eager or to rev up capacity to build our Energy Infrastructure and our water infrastructure. Reporter but heres where it gets complicated. President trump has ordered the Commerce Department to develop a plan by july to implement his americanmade directive. But Cato Institute trade policy analyst simon lester says the president may have no Legal Authority to order this amicmade directive on private biness. What were talking about here is a government requirement to use domestic content, and that is pretty clearly in violence of our International Trade commitments, and the u. S. Has brought complaints against other companies for doing similar things. Reporter transcanada, which everybody remembers, is building the xl keystone pipeline, they said five years ago 50 of the pipe it plans to use would be made in the United States. So there was already plans to use americanmade products, now it would have to be 100 if the Commerce Department, neil, comes up with a plan to do this. But remember, this memorandum, theres an out for the administration and the government to the full extent of the law. If the law doesnt let you violate trade agreements and do it, then they cant do it. Neil holy moses. All right, thank you very much. Speaking of which, the president is landing in orlando, hes going to head off to a Catholic School in orlando. And well explain exactly what hes up to after this. Neil all right, janet yellen is breaking news right here. The fed chair indicating it is looking increasingly likely if there is going to be a move on Interest Rates, it will be sooner rather than later and it is looking increasingly likely. Peter barnes with the latest on what he is hearing. Hey, peter. Reporter thats right, neil. In remarks they just released she is teeing up a rate hike at the feds next policy meeting in two weeks. She says in a speech in chicago just about to get started, quote, we currently judge it will be appropriate to gradually increase the federal funds rate if the Economic Data come in about as we expect. Indeed at our meeting later this month thed if will evaluate whether employment and inflation will evolve in line with our expectations. In which case a further adjustment of the federal funds rate would likely be appropriate. She goes on to say that inflation and labor market are evolving as expected. The fet is essentially met its labor market mandate she says in the speech and expects to hit its 2 inflation target. As you know the fed in the most recent Economic Projections penciled in three quarter point rate hikes this year. As an exclamation point the fed keeps an eye on risks. Scaling back some of our support could potentially require us to rates rapidly sometime the road which could be disruptive to the economist. Neil. Neil if can can stay there, peter. Not surprisingly you come on, you move markets. Lori rothman at New York Stock Exchange with some of that investor reaction to what janet yellen is poised to say. Lori, what are you seeing . Hi, there, neil. So basically what the interpretation here is that higher rates mean the economy is in good shape. Sorry about that. I have a little audio issue here. The market is not moving a whole lot today. What is key with the dow, it has come down below the key 21 you thousand level. Yes i do hear you. Im hearing my echo back a little bit. If that was you coming back in a little bit. If i have a second, i want to point out the 10year treasury note. It has come up a little bit here. Were looking two points, 2 1 2 , 2. 51 at last check. Interest rates are rising. No surprise to anybody down here on floor of New York Stock Exchange. Stunning debut of snap. Really all systems go here. The Economic Data is supportive. You have trump policy as well, which folks down here are very excited about. Who is not thrilled about tax cuts. That is fantastic, right. The market not moving a whole lot, a little bit lower but the overwhelming sentiment is positive. The strength is there, and runup in markets is warraed since the election. Neil i apologize for some of these audio issues. Go back to peter for a second. Janet yellen that Federal Reserve is likely poised to race Interest Rates this month. That would be earlier than expected barring some any economic jolts or surprises but you know the markets that used to worry about that in the past, peter. Now they see it as reflection of at least strong or stronger economy. So what used to be a half empty glass at least of late is more deemed a half full glass. Now of course markets could do anything in the next three hours. What you do you make of that, how it has pivoted, the markets pivoted on issue of higher rates . Reporter as you know janet yellen has been dovish with some of her colleagues how they unwind stimulus from the financial crisis. Raise rates gradually and tell us how to do so without risking tanking the Financial Markets and pushing the economy back into recession with a real sharp rise to try to fix emerging inflation or higher than expected inflation but this rate hike for march has been highly telegraphed this week. We heard from several fed Bank President s. Neil indeed. And bill dudley of the new york fed, who is vicechair of the fed policy committee. So she has come in here, batting cleanup for everybody. They have all been talking about this and by the way, the issue of stimulus from the Trump Administration, she doesnt specifically talk about that but she does tk about fial and regulatory policies, that are the responsibility of the administration in congress bestsuited to address some of the structural props in the economy like, like low productivity. So she does acknowledge the fiscal, fiscal stimulus may be coming without specifically mentioning the Trump Administration. Neil all right. Thank you, buddy. Peter barnes, as you can see. The dow turned positive, back over 21,000, im not saying exclusively on this. As peter indicated this is welltelegraphed. Do not blame fed officials for not warning you but all but saying rates are going to go up and probably this month. Widely factored in. The surprise would be they dont move. President trump just landing in orlando, florida, right now. He is on his way to Catholic School in orlando, looking to alternative to Public Schools. Not just Charter Schools. Blake burman on what team trumps approach will be. Blake . Reporter the president expected to arrive in orlando any moment now. Theyre trying to tout School Choice on this day, that is the theme in florida. You might remember at a joint address to congress the other night, the president called education, quotes the civil rights issue of our time. He called for education measures that would allow disadvantaged youth as he put it for School Choice. Whether there is Public Schools, right schools or Charter Schools. He will take that message to orlando on this day. All of this, though, or at least some of it, appears under the cloud of what is going on with Jeff Sessions and department of justice and russia. The timeline of this neil, was very clearly laid out here by the white house. The president giving this speech on tuesday. They expected a warm reception and got it and tried to bask in the glow on wednesda there was yesterday aboard the aircraft carriith military members. Today the theme was supposed to be education. But questions continue to surround Jeff Sessions as he recused himself at the doj from any potential investigations. This morning the white house or top democrat on the hill, rather, nancy pelosi jumped back into the fray, recusal from sessions just isnt good enough. Listen. Recuse himself, he knows whats there and it is just reflection of weak moral authority of this administration if they support what he is doing. That is why we called for this recusal is an admission that something went wrong, but it is not sufficient. Reporter by the way, neil, this is clearly on the mind of the president. It appears he was tweeting aBoard Air Force one. This was just pushed out moments ago from the president s twitter account. Shows a picture of Vladmir Putin and Chuck Schumer buddy, buddy smiling together. Here is what he writes. Quote, we should start an immediate investigation into senator schummer and his ties to russia and putin. A total hypocrite. End quote. Even as he is going to this education meeting, a tweet from the president on putin and russia. Neil . Neil that he you, very, very much. Left side of the screen, and i was getting worried there were no stairs when they opened up the front door. I said oh, boy, this could be a problem. They brought up the stairs. Theyre locking them in place. The president on orlando. On the flight had senator marco rubio with him. He is on Board Air Force one, and will join the president on this school tour, this catholic elementary school, along with governor rk scott yosaat the bottom of the staircase there. I dont know whether it is his child or grandchild but he is there. Education secretary betsy devos, we do know she is joining the president on this trip. This is not a Charter School per se, but alternative to Public Schools in the area. Catholic grade school. Some say it goes up to middle school. I dont know for sure. The fallout from all of this at a time when the administration wants to focus on what it is trying to do on education. Focus on repealing and replacing obamacare and of course on those tax cuts. The president arriving in florida. He will wrap things up tonight, going to his maralago, his summers state. We have special assistant for bush Economic Policy and brian riordan, and independent womens forum, sabrina schaefer. The president wants to reclaim the agenda. We know how the week started. Good reception he got to his speech before congress and Jeff Sessions recusal and all the talk. You how is this ending, in your eyes . How do you see it wrapping up . I think this is going to be sort of good all around. We always want the media to investigate more. I was bothered by the last eight years when the media just sort of ignored all sorts of private meetings and conversations the Obama Administration had. I think sort of big picture this is a good thing, that were a little bit more, were taking some of this a little bit more seriously. But i do think this administrations going to learn, like every administration before them manage attention between things going on sort of negative in the media an things going on and that they want to push forward positive. Educational freedom is a great thing lots of conservatives can get behind. Were talking about repealing and replacing obamacare. That is good news for the administration. They have plenty of things to focus on. In the end this is sort of good for the country. Neil you know, brian riordan, when you look at this, i dont know how much you saw with bush 43 and all, everything goes in waves. You have a series of good press days, a series of bad press days. We have a study that shows this president gets a disproportionate number bad press days, gleaned by Media Research instituted some of these other to have not been friendly to him. Now always eye of beholder, many say this was a lot of president s own doing picking fights with the press but how does he get his message out and is there concern among republicans you talk to he has to work a lot harder to do that . Yeah. I dont think trump has ever had a problem getting his message out. This is nothing more than an extension what you saw during the campaign. So you know ive been focused on tax cuts and making sure we move the brady plan, the house blueprint through the congress. My expectation he will focus on that and health care and other things on his plate at the same time they deal with this. Neil andrew feldman, democrats like to point out when it comes to health care thing, that republicans are realizing how easy it is to criticize and very difficult to come up with a solution or fix yourself, and there does seem to be indication certainly conservative republicans are balking at what house and Senate Leadership wants to do. How bad do you think this gets . Or is it just, you know, tempest in a teapot . Neil, good to be with you. It is very bad. Look, were just hearing big platitudes, big statements from trump and members of congress but we have no real plans, right . First of all the health care plan, trump said other day it was more complicated than he could think of. Obviously it is complicated. Obviously this is difficult. This is something weve been dealing with since Richard Nixon was president. If it was so simple we would have a real answer a long time ago. This will be very complicated because you know what . 20 million new people have headlight care under obama care, reality is that trumps math doesnt add up, right . You cant keep people on their health care who have preexisting conditions. People who are 26 and neil math doesnt add up, right right . No. Neil most people are happy 20 Million People getting the math doesnt add up. Neil it is not sustainable whether it is going whether you buy a republican fix or not. You would acknowledge that. I would acknowledge absolutely there are things, i think neil, things couldnt be fixed with obamacare. That is what i would do. I would work on fixing existing system. The plan that we have now, i dont think they have a way to pay for it, right . How can you keep everyone on they want to be covered an pay for it, without adding millions and trillions to the debt . Look at budget plan. That is dead on arrival coming to congress. In washington, we have a bottom line, it is called elections. Republicans understand if they mess this up, and it is very complicated. Probably shouldnt have to be so complicated. Its a Commodity Health care. I dont know why it is so complicated. If they ss thiup then 2018 will not to the way they want. Republicans have to work very hard neil i dont think they should have gone first with this. It is so complicated, such Herculean Task getting everybody on same page. They seem to be in agreement on tax cut can thing. There is more agreement. Im for that. Neil brian what do you make of that, if they had druthers, doover, what mulligan, what they call it in golf, would they do it over again . Health care and tax bill are really big lifts. Trying to transform how people get insurance. Trying to transform our tax code one of the worst in the world to one of the best. Either one will be declared five or six times before it ends up on president s desk before it signed into law. That is what happens with big reforms. Youre seeing that taking place now. Im confident they will get the health care thing done. They have to. Exchanges are dying. You cant get insurance on exchanges at affordable rate anymore. They will have to do that and do something about the tax cuts. Neil we shall see. I dont want will have to work with democrats, neil. Neil there will have be a lot of group hugging here. That he, very, very much. Well watch how it goes. President is in orlando, on his way to this Catholic School, st. Andrews catholic cool school how school outside of the system gets pretty dramatic testing results. All that after this. What if tecy gave us the power to turn this enemy into an ally . Microsoft and its partners are using smart traps to capture mosquitoes and sequence their dna to fight disease. There are over 100 million pieces of dna in every sample. With the microsoft cloud, we can analyze the data faster than ever before. If we can detect new viruses before they spread, we may someday prevent outbreaks before they begin. Wont replace the full value of your totaled new car. The guy says you picked the wrong insurance plan. No, i picked the wrong Insurance Company. With Liberty Mutual new car replacement™, you wont have to worry about replacing your car because youll get the full value back including depreciation. And if you have more than one Liberty Mutual policy, you qualify for a multipolicy discount, saving you money on your car and home coverage. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. I would even have democrat put forward a replacement. Give them a vote and conservatives. Neil not everyone agrees on replacement. That is what would happen. You figure that out through voting. Big government people, republicans and democrats, they want new entitlement program. They want Medicaid Expansion and want somehow to have federal money pay for all this. Les vote on that. Neil all right. This is a big dividing point among the republican party. Not much wiggle room. Two votes in the senate and 22 in house. This is why its a big deal. Three are not keen. Mike lee of utah, ted cruz of texas and aforementioned rand paul. Not eon their plan, obamacare light. Heavy on Big Government role. Tax credits are paid for by taxing insurance plans people have at work or where else. And they dont think it is a starter here. So it is a waste of time. Theyre not going to buy it. The reason why this is developing into a big deal and something i want to pick on with my next guest, it would delay Everything Else like the tax cuts that already might be in jeopardy for that august deadline that the treasury secretary was telling me was the ultimate goal. To the daily caller editorinchief on this battle. Because it really comes back how much government you want. The argument against obamacare, it is Big Government at its worst and rand paul and some of these others are saying, we dont want something not as big. That is not what we should be striving for. Thats what they say is going on here. What do you make of this . Yeah, i think ultimately the people who voted for republicans on the basis of the fact that they wanted to see Obamacare Repealed and replaced were definitely much more in rand pauls camp. They dont want light touches done around the edges, things that increase the amount of Government Spending on health care. They want to withdraw the government from the health care process. Allow the private market to flourish and figure out ways to bring costs down. To this point doesnt seem a lot has been made in terms of progress on the obamacare bill, few leaked details we have. I think rand paul is making a smart bill. Dont let the bill come out. Got out way ahead, force republicans consistently best serve constituent, how do we repeal and replace obamacare which has given republicans so much energy since 2010. Neil vince, what is the thing that ticks them off . I couldnt get a straight answer out of rand paul. Maybe i wasnt hearing clearly. The house has this measure, obamacare light, whatever you want to call it, goes over to the senate and want republican there is, yea or nay on it. And dont start adding things or taking away things and that is a problem for them theyrjust saying nono you cant just ram it down our throats, right . It would take tick any senator off you have to accept what the house tells you. Senators think highly of position in the house. Neil they have must known that to begin with. With speaker ryan go this route again, it failed before, why would he do it again . Well i, well see. In the end, how it comes out. I dont, i dont see how you can do this without the consent of the senate. As you noted, it just takes two senators, now three to express some real distaste with this any chance they have of sending this bill to the white house is damaged. They need neil who at the white house has support . It would seem pence, the Vice President is with speaker ryan today and obviously the health and Human Services secretary today. Their fortunes are lying with the house leadership here by extension, party leadership, when the House Freedom caucus and some of these others arent keen. So, am i imagining that these are fractured ranks or how would you explain it . I dont think youre imagining it. I think there is a real debate going on within the republican party. Think back to the president s speech this week. He put a punctuation mark on the fact they were going to repeal and replace obamacare can. I think a lot of people who are fans of donald trump, also want to he see it repealed and replaced, believe it sincerely when he says that full repeal and full replacement. One which looks adequate to conservative supporters. The tension does exist. People within the white house who disagree what the path ahead looks like. Neil well watch closely, my friend. That he very much. Have a good weekend. You too. Neil were waiting for President Trump. He will visit this orlando Catholic School. People say what does this have to do with vouchers and everything . The president is saying classic example of those who might not like the Public School in their area in orlando, there are alternatives. Get a voucher. St. Andrews Catholic School is held in high regard, very good scores. President s pitch and betsy he devos, you have choices. If you want to send your kids outside the Public School system and where you get a little bit more bang for the buck, be it Catholic School, private institution, let that be your call, and not the governments call. So it seems pretty straightforward but it is, well anything but straightforward. Connell mcshane on that after this. The future of business in new york state is already in motion. Companies across the state are growing the economy, with the help of the lowest taxes in decades, a talented workforce, and worldclass innovations. Like in plattsburgh, where the most advanced transportation is already en route. And in corning, where the future is materializing. Let us help grow your companys tomorrow today at esd. Ny. Gov neil all right, the president is going to be pitching school vouchers, School Choice in orlando, florida. Has very good Public School system im told. He wants to leave it up to orlando residents and those in the area to pick and choose what they want and what they think makes sense for them. Connell mcexplain with the details on that and what will be happening in half an hour, i guess. Reporter well see, neil, how much we hear from the president. It is supposed to be a listening event. It brings up a broader argument over School Choice, in essence is a tax argument. It could work into the whole tax reform argument were talking about. President arriving a short time ago in orlando. He will face opposition, this School Choice question always does, when it comes up. You get those who argue when pushing private schools youre doing so at the expense of Public Schools, drawing resources away from them. Teachers unions and others argued it. When you look at this particular school though, the president will argue, what is done there, at st. Andrew, where the tuition is over 6,000 a year needs to be done on larger basis nationwide. That number would put it out of reach for some parents you think. What they have done there effectively, they provide their student with financial aid. There are 350 total students at the school. Out of that number, 350, 300 receive Financial Assistance through tax credits, state of florida scholarships. The argument you scale that up from betsy devos and the president. They say children trapped, language they use in failing Public Schools, help them giving opportunity to go to a school like this. He talked about it even in the joint session speech using an example of a young woman given an opportunity to have a scholarship and doing much better as a result. But neil, i dont know if the president will couch it this way today, Going Forward look for this to be part of a broad are question about tax reform. You achieve School Choice, tax credit program. President s mentioned a 20 billion number in the past, not recently, but in the past. Maybe that is part of the overall tax reform discussion and argument that we see Going Forward from here. That starts today in some way. Neil this is not of the top tier things president wants to do, obviously Health Care Repeal and replace, boost military spending and obviously the tax cuts but really what he wants to do as far as more Cost Effective education and department and one necessarily isnt in the hip pocket as you said and president said at outset of education union, teachers union, all that, how is that part going for him . Reporter theyre powerful. They have always been politically power youll if. It will be difficult an youre getting it done now is time to do it. Republican control of Congress Allows you to get control of conversation over issues because you never have in the past because units have so much power in the democratic power. It will be difficult. People have broad discussions. This is what both sides said education reform, some cases casebycase, you say this one in orlando, boy, they had have terrific results. Another private school with this type of funding or Charter School may not have the same results and then people will argue that the Public Schools need more funding. Others say we have been doing that for years and hasnt been working. It is Like Health Care and complicated. President said that, boy, this is complicated. Neil what was i thinking . Connell mcshane, thank you very much, my friend. All right. Neil if you have a age demographic, millenials, baby boomers, genxers, what group wants the tax cuts and big ones the most . What if i told you baby boomers, told you right now, if they dont get it, they will not just be bitter, really, really start bitching . We have classic cases to prove the point after this because the bitter boomers are back. Kids, cover your ears. Why pause a spontaneous moment . Cialis for daily use treats ed and the urinary symptoms of bph. Tell your doctor about your medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, or adempas® for pulmonary hypertension, as this may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have a sudden decrease or loss of hearing or vision, or an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis. Neil all right. Weve been keeping track of janet yellen. She is speaking in chicago right now. I will cut to the gist of her remarks we got them ahead of time, she wants to raise Interest Rates. That is very clear and she wants to do it sooner rather than later which would be in a meeting i think a couple weeks. So that is a given. The markets are not panicking on that. These days rate hikes are not being greeted typically with the selloff you would expect the way you had in the past. Maybe a reflection of a good underlying economy, who knows. A lot of people are surprised at this. Our bitter boomers are not because theyre boomer and theyre not always bitter but theyre always right. Charlie gasparino is here. Weve got steve leeb here. Lizzie wicked macdonald and fox business Senior Editor charlie brady. Talk about the geniuses . Lizzie, this notion that she says its coming. It is coming, quarter point, didnt say exact quaer point, but everyone interpreted twweeks, rates go up. Liz market is not reacting. Four rate hikes last year. People on wall street are thinking, it is coming, a quarter point, gradual quarter point increases of the right now youre right. In the past the markets would have sold off with a rocky ride of it. There is widespread confidence growing in the economy. Whereas under the obama economy it felt shaky. Right you now people may be able to take it in stride. Neil what do you think, bud . Rates going up for the right reason. Jobless growth accelerating. Jobs numbers was highest in 44 years. Jobs number comes out before the fed meeting. Neil you live for those days. You really do. Depends next week that will seal the deal for rate hike if its a strong number. Neil what happens if we get a rate hike. Nothing happens. Were still at in Interest Rates. Neil real Interest Rates. One of the most bogus things out of washington, i mean it is not bogus, that the fed pays attention to one inflation indicator which they call pce, which is lower than any other indicator. 1. 7 . Neil sure. Cleveland fed should have a couple beers and talk about the pce. Right. There is no reason to pick the pce other than the fact neil you did. I know, but the fed does. That is what they base it. Theyre trying to get inflation neil is a rate hike justifiable to you. More than justify. What are they waiting for . This is my one worry. On twitter they call me a worrywart. Neil they call you a lot worse than that. And bitter boomer. There to be coordination between Monetary Policy and fiscal policy, you talk to investors they worry about yellen jumping the gun on raising rates before trump has fully digested neil maybe she wants to do that. Thats a great point f she does that, the markets could slow the economy before even gets his tax cuts through. That is where the lack of coordination could screw things up. If you know, leeb, youre big on this, is the market overvalued or not right now . I think it is crazy. It is very ouch overvalued. So if the market is overvalued now, and you start raising rates without the concomitant fiscal policy response, what could happen . You could have a bad market very, very quickly. Market could easily come down 25 . But that wouldnt be necessarily e end of the world from the economys point of view. Neil a lot hinges on rates go up but if you get other stimulus from tax cuts. I raised this with treasury secretary steve mnuchin, this idea about tax cuts and where they go from here and pay for this, mortgage deductions, charitable deduction, they wont be touched anyway, this is what he said on this matter. Take a look. If you take away those deductions it is still a big tax cut for the upper income. Are there other things you would do or phase out to compensate for that . Let me first clarify. We are not taking away the charitable deduction and we are leaving the mortgage interest deduct as is. Neil for upper income as well . Absolutely. We think those are both very, very important. Neil steve leebs reaction to that was, yippee. No. Whenever i see that guys face, it just, it is scary. Its a little scary. But there are even scarier guys. Neil thank you for noting that. There is the sebastian gorka. He is a scary guy. Neil i want to get to what he is saying, he really touched on the wealthy, the top 1 theyre not getting this tax break theyre envisioning. They will offset whatever bennies getting with the lower rate, limiting allowances, breaks, deductions and all. Clearly among them was not the mortgage Interest Deduction or charitable deduction. So i dont know what else you would do to offset that, but what do you make of that . You know, that has been the running fight over how do you pay for it. Because if they put it in budget reconciliation you have to have revenue offsets, right . To get the 51vote threshold to avoid democrat filibuster. That is the name of the game. Neil than use die many ma i can accounting. That is strategy, get tax reform, you want 51 votes in the senate. If you dont touch mortgage interest. Dont touch the charitable, what do you go after . Neil i dont know. I didnt get a straight answer. He wants to boost military spending. One trillion dollars infrastructure project, wants to slash taxes yet the mortgage deduction will stay intact. I think up to a million dollars. Neil wherever it is right now. It has to be paid for somehow. Something will have to get cut and that will be a battle royale. It will, but i dont know exactly how they do all this figuring, if theyre Going Forward, one word, one line i remember from the trump speech before congress which really struck made me feel okay about the guy. It wasnt china . It wasnt china. China is a major problem. That is probably why he is going after russia, to insinuate himself in that situation. Everybody is saying why dont people give him a little possible credit . Why does everyone have to say he is somehow involved neil i think, charlie gasparino, it will be a news alert to upper income folks if they dont get a tax cut. Listen, youre absolutely right. Your earlier segment, economist, her name escapes me, a lot of people are pricing a cut of Corporate Tax down to 25 , not 20, not 15. That is a real problem. I will say this, neil. You brought this up a bunch of times, about the timing. If you talk to people on the hill, they dont believe, this is republican staffers, dont believe were getting tax reform this year. This is republican staffers. They dont even know where the budget is. He doesnt have a budget. Neil, im sorry, because he interrupted me. Neil he did, didnt he. He got me talking about china. One word i remember, one phrase i remember, big fat tax cut for the middle class. I heard not saying that except obama with throwaway line. Republican saying that. First one i heard say that he cant take away mortgage deductions and charity. Neil you got to figure out what he is going to do. He has to play the republican line, neil. If he wants to give the middle class a tax cut talk about pce an china at the bar. Neil please. He told me china. Neil yeah he did. He started it. These guys are very hip boomers here. So they are all over snap. And given the fact that the stock continues to run up today, are they looking at this thing . Do they wear the silly spectacles . Whatever they call them. A lot more on this with our aging, but aging just right about iter boomers. Bitter boomers. Azing tradi thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at td ameritrade. Neil following upon yesterdays gains with another 10 run up today. Lizzie, do you know what this whole phenomenon is all about . Kids who are on it, right . Neil yeah. 50 user growth even though it is coming down. Theyre basically selling you on growth, right . Their users will continue to grow. At the rate theyre going, to justify that valuation, analysts say they need to grow 40 to 50 a year. Im not sure they can pull that off. Yeah, i agree. Listen i know a lot of millenials in journalism, friend of mine, Lynnette Lopez works at Business Insider and what is her name, julia la roche at yahoo they are hardcore millenials. Dont speak in complete sentences. Dont read anything more than five lines. They use the words, you know a lot. Here is the problem. Theyre not on snap. If theyre not on snap neil lizzie hit on it. It is teenagers, right . They rely on their parents. Vanishing message. I think the second age group up is the most popular on facebook. Snapchat Neil Facebook is, that is the Lawrence Welk crowd, right . Getting to be the Lawrence Welk crowd, yes. Neil what do you think . The thing about snapchat, there is no earnings and liz just mentioned growth. But their growth neil wouldnt be the First Internet Company to have that conundrum. This is bubble. Com part two. Like late 90s. Neil you think so . They were saying that about facebook and it righted itself. Facebook was profitable this company lost half a billion dollars last quarter. Facebook, how many twitters and zyngas whatever the hell theyre called, wall street goes out there, this is the problem i think, they price them so high, these companies should essentially bght out someone else and americanned. That is what facebook tried to do. Facebook doesnt have to do it right now. These other companies. Neil facebook didnt hold a lot of says away from the public. Think about this, neil. Twitter went public at 26, right . They cant do a deal for anything probably more than 13. It is hard to justify doing a takeunder like that right now. That is the problem. They should be profitable. Neil why is doing better on the second day . Its a facebook phenomenon. Because Nbc Universal plowed, invested in the stock. It has been losing money every year for five years in existence. Cash burner. Neil maybe something smart by keeping cant sell it for a year . Thats true. Neil that was smart. They created demand through scarcity. Think about what it is good for . Taking naked pictures having them disappear. That is what college kids or millenials. Neil how do you know they were naked pictures. I tell you i know a little about the company. It was good for insider traders sending stuff. Some say the stuff is still up in the cloud, right . Neil i agree with that. You know where this will sell . China. No. Yes. It will not. Because the government is always up your rear end they, this stuff china it was outlawed. This country we are below average in terms of writing and math and science skills. China is neil they have to be impressed by this sign me up for that job. Everybody is beating us. Weve got to get the message. This is not what we need, another something you have to look at 20 times a day to make sure you didnt miss a naked woman someone emailed you. God forbid you miss a naked woman. Heaven forbid. She will vanish. The other thing that troubles me, speak as investor, two things, one is it is all advertising. How much room is there . You have google. You have facebook. Those are all just advertising platforms that are competing. Facebook is taking on netflix, half hour programing. Weekly series. Original content. Facebook is a good experience. I dont feel like im trolled. I feel i can read stuff and interact with people. This is so neil when you talk so kindly to your fans and those who arent fans what are you using . Usually twitter because neil twitter, right . It is abbreviateds right. 40 characters and i can easily say in 40 characters neil you can fill it with curse words. In three characters i get across gfy. Everybody knows. Neil where will snap be . For snap, i think they may be bought by someone. Wont be valued at this price for sure. Neil didnt pass up the guy with the 3 billion offer . From zuckerberg. Neil now double that. The guy that is running snapchat, he passed out boards to all the people, read this. Neil i knew you fet the china thing. Before he got me i got it. Neil thank you, very much and a lot more on Vice President pence and what he is up to right now. Signs that the administration is aligning with speaker ryan on the health care thing. Depending on your point of view that could be a good thing or bad thing. Why some are very worried about this thing after this. Itll get better. Im at the edward jones office, like sue suggested. Thanks for doing this, dad. So i thought it might be time to talk about a financial strategy. You mean pay him back . Knowing your future is about more than just you. So lets Start Talking about your longterm goals. Multiplied by 14,000 financial advisors, its a big deal. And its how edward jones makes sense of investing. Approaching medicare eligibility . 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Unitedhealthcare Insurance Company has over thirty Years Experience and the commitment to roll along with you, keeping you on course. So call now and discover how an aarp Medicare Supplement plan could go long™ for you. These are the only Medicare Supplement insurance plans endorsed by aarp, an Organization Serving the needs of people 50 and over for generations. Plus, nine out of ten plan members surveyed say they would recommend their plan to a friend. Remember, medicare doesnt cover everything. The rest is up to you. Call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence. Go long™. Neil you know on days like this you wonder why twitter isnt more of a financial success, or leverage off this. Not only president uses it and seizes on a famous picture with Chuck Schumer with Vladmir Putin in 2003. Chuck schumer, would be happy to talk about my contact with putin and associates. Took place in 03. In full view and press in public under oath. Would you and your team. Synching what happened. This Development Going on, seems to be tipping hand where administration alliances lie with health care battle. Not so much with conservatives like rand paul. This leadership deal is dead on arrival. Government light with obamace monstrosity alreadBig Government. Hardly a bragging point for the leadership to say this is not as big. So the fact that youre seeing Vice President pence with speaker ryan and tom price of course, health and Human Services secretary is clear sign yet that the administration seems to tip its hand more toward the leadership. And of course janet yellen, signaling a rate hike and that it could come at that march policy meeting, i believe in couple weeks. Stocks are dealing with this nicely. So this is, the fear that it used to be. Markets have a funny way of showing it. Theyre ready for that apparently reflects economy is good you have in to warrantu that, after this. What are you supposed to do . Drive threequarters of a car . Now if you had Liberty Mutual new car replacement™, youd get your whole car back. Ee smart. With Liberty Mutual new car replacement™, well replace the full value of your car. Liberty stands with you™. Liberty mutual insurance. Gave us the power to turn this enemy into an ally . Microsoft and its partners are using smart traps to capture mosquitoes and sequence their dna to fight disease. There are over 100 million pieces of dna in every sample. With the microsoft cloud, we can analyze the data. Trish all right. The president in orlando going to a school right now, those kids going to this school, its a pricey school, a little over 6,000 dollars a year, but give parents a chance if they think they can do better, go ahead and let them decide. Auto easier said than done but the president making that punish. Trish regan will be there. But a busy agenda for him. Trish another busy day, indeed. All right. Thanks, neil. Breaking this hour, everyone. President trump is in florida right now touring a Catholic School all in an effort to promote School Choice. And in a few minutes, hes going to be participating in a listening session with some teachers and parents. Im trish regan. Welcome, everyone, to the intelligence report. Now, as we await the president , we are following another big story today and that is of course attorney general Jeff Sessions who is reaccusing himself from the russia probe. Sessions admits he met with the Russian Ambassador on two occasions, which, you know, isnt actually that odd, since he was a Senior Member of the Arms Services committee. And he insisted that these meetings had nothing to do with the campaign the democrats are telling a different story but listen to