Transcripts For FBC Cavuto Coast To Coast 20170420

You were. Were hearing there could be other catalysts. Heard what financials like American Express a key component in the dow. But were getting wind they could be cobbling together a potential Health Care Deal. We dont want to get ahead of ourselves here but Connell Mcshane has the latest what could be the ingredients, the second attempt replacing and repealing obamacare. What are you hearing, buddy . Reporter neil, there is definitely progress being made in the house. The market is hearing that as well and liking what it is hearing with the 143point advance in the dow. There is definitely still work to do. Gop sources told fox business, theyre cost with the new amendment they could get as many as 20 additional votes. But senior gop sources they dont know if they will end up with enough. If they end up with enough to get it passed. Congress comes back monday. Back in session monday. They dont have scheduled time, timetable for a vote but they do say these sources progress is being made on health care. That is helping out the market. A draft proposal is making the rounds, states obtain a waiver from the federal government to do away with certain protections from the obamacare. In order to get the waiver the states would have to prove they bring costs down. That is part of it. There is more to it. Health care reform is still today, very much on the table. So well keep an eye on this. With fox business being told 18 to 20 nos from last time around, no votes could turn to yes. The emphasis is on the could there. Republicans were purported to be more than 30 votes short. Even if you get 20, doesnt necessarily mean you get it passed. There is domino effect. You talk about all this time, if you do get health care done makes it more likely an aggressive tax reform package gets passed. One feeds into the other that is the talk today in d. C. Neil wondering connell, if you get those conservative votes from Freedom Caucus members, do you lose the tuesday group, the moderates who werent keen on concessions being made last go round to the conservatives . Reporter we have to track this today, the emphasis on the could in terms of getting those votes and also on the could whether or not this means this would get passed. If anything is proven here, the president to quote partially what he said, health care can be complicated. It still is. Even if theyre making progress on one front, lets watch the rest of the day for any comments coming out of tuesday group. Well see. Neil Charlie Gasparino will have more developments. Wall street journal is reporting that anthem is making preliminary filings to indicate it will still be socalled part of the socalled aca plans in 2018. There were concerns that aetna and other was jettison. The eye to cobble together a deal, they will try to get something going. I want to bring in retired Lieutenant Colonel allen west. A former congressman as well. From that vantage point, if you dont mind indulging me on this health care stuff i want to pick your brain a little bit, allen. Very good to have you. It is always this balance satisfying the conservative members without ticking off the moderate members. Do you think if they cobble together a Health Care Deal, that that does speed up the time frame for tax deal . Well, good to be with you, neil. That is a very important part of it but i would also ask why did they take a twoweek vacation when we had pressing matters that are there . The American People and markets are looking for economic relief. The most important thing about Health Care Reform has to be repealing 20 new taxes of obamacare. Making sure that americans dont see a rise in their insurance premiums which right now the actuaries are out there working on those rates for the coming year of 2018. Neil do you find that some republicans are frustrated though that it has to be this way . The health care thing has to be first . I certainly understand the math behind it, congressman. That you need that, you know, trillion dollars over 10 years as a new revenue base, which to start making tax reform that much easier, but theyre still significantly a part of this issues. Maybe they resolve them. Had they gone in tax cuts, there was much more broad agreement. What do you think of that, if this fails, the attempt cobbling together health care fails, it is similarly going to do tax cuts . Youre absolutely right. Back in november, december, after the Election Results you should have military tiger team, sits down looking at Health Care Reform, looks attacks reform. Looks at the right type of parliamentary procedures that have to happen. American people dont understand what budget reconciliation is. They want to see these things done. When you have new Congress Sworn in these first 100 days, they should been able to get right at this. Lets be understanding that it took democrats some 18 to 19 months to push through the Affordable Care act, obamacare. If the republicans are trying to push through something that is not wellthought through within a month or two, i mean it could have some severe consequences and ramifications especially if the new acutarial prices come out next september of 2018 and the American People dont see a decrease in those insurance premiums. Neil all right. Colonel, thank you very much. I apologize for this breaking News Development but i would thought i would pick your brain about it. Who Knows Congress better, so thank you, sir. Meantime i want to let you know were getting a little bit more on the wall street journal on this insurance sort of offer here, still participate in the aca Exchange Plans for 2018. If you have the likes of cigna and aetna and anthem saying all right, we wont go, we wont quit these things, that could provide a financial bulwark behind the exchanges so that you still have those participating, you still have a framework which people can go to, so they dont lose coverage. So that delicate balance that exists here, its all in how they execute this and details of this, and whether insurers will gouge you to stay a part of this. But, the early read seems to be that they are inching, that is republicans are inching closer to a deal on health care, repeal and replace method. That will garner more votes. They say the latest reports, about 20 votes, with would just be enough to get squeaking passage in the house n the senate they start from scratch essentially but it could mean that tax cuts, really the wish of wall street, can materialize maybe not by august but certainly this year. One of the reasons the dow is up 157 points on this. A lot of us are charging like crazy on these things. Obviously we have the apstate for more buying. Appetite. Well keep eye on widening target for terrorists or those that foster or condone it. Secretary of state Rex Tillerson says iran is well on the way becoming another north korea if we dont rein them in. The retired officer sam pettis on that. What he makes of that of your coming here. If syria uses chemical call weapons were back in there again and escalation of tensions i iran and north korea. Do you think weve spread too thin . We put ourselves completely behind the curve. We allowed iran out of the box. We watched as syria spirals into chaos. We have work to do to dig out from the hole were in. Neil what do we do to get out . Some are looking at this saying that secretary of state was just claiming the emperor has no clothes and iran cant be trusted. Others say deals which we signed these provocations were not part of that deal. If we abdicate that, we lose something. What do you think . I think the iran deal is a disaster on its face. It will not stop them from getting nuclear weapons. But immediate problem here the price we paid to sign that deal allowing the iranians out from under sanctions and pressure, basically walking away, from controlling them has allowed them to spread chaos all over the middle east. From syria to lebanon, to yemen, they are on the rise, and that is a completely destablizing force in the middle east right now. Neil i found it interesting when i was watching a lot of Media Coverage on this, hey, u. S. , we cant renege on our word. Never mind the fact it is distinctly possible were talking about trust with a nation like iran. It seems like a collective read here that we have more to lose in the Global Community than iran. What did you make of that . We kept the iranians, basically we pursued a policy of containment and kept them in a box for basically in 30 years. In the course of eight years of barack obama we abandoned that policy, a disaster. The deal is a disaster. There is no way on earth we should continue to abide by the terms of a deal that is incredibly damaging to American National security. Neil what do you think we do . Leaving iran out of it, north korea argued that our presence in Korean Peninsula alone is provocative act. They plan to continue missile tests. One idea bandied about a retired general told me we should shoot down the next missile test and shoot down batteries which they launch in north korea. The russians have said, the chinese have said, those are very provocative acts. What do you think . So i think there is probably a range of things we have to be prepared to do in the short term. For instance, if we think they have a nuke they can put on missile, theyre prepared to use it, well have to do our best to take out those weapons, but the real solution is long term. That starts in beijing. The only reason pongyang continues to exist as communist dictatorship because of the chinese. We have to make clear of the chinese, status quo is no longer acceptable. Neil president s of all stripes have been urging that in the past. Sometimes i begin to think, maybe the chinese cant control this guy is a nutcase and they cant control the nutcase . The first thing we do we hope they still have the capacity to apply considerable pressure. This is not a unique situation where countries create groups or sponsor client state. Neil yeah. Exactly as you have described all of sudden they find out the dog is off the leash and they cant control him. That will be a truly nightmare situation. Neil wellput. Sam faddis, retired cia operations officer. Good seeing you. Thank you. Neil look what happened corner of wall and broad. Dow up smartly. Financials are a very big catalyst here but did not hurt matters from growing press reports, that republicans are closer, i stress closer, to cobbling together a health care replace deal on health care. That is something near and dear wall street want to see. They have been let down before, but right now they are liking what they see. Moodys economist mark zandi on the stimulus to come with that. After this. We asked people to write down the things they love to do most on these balloons. Travel with my daughter. Roller derby. Now give up half of em. Do i have to . This is a tough financial choice we could face when we retire. But, if we start saving even just 1 more of our annual income. We could keep doing all the things we love. Prudential. Bring your challenges. Just like the people every business is different. But every one of those businesses will need legal help as they age and grow. Whether it be with customer contracts, agreements to lease a space or protecting your work. 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Then why settle for slow internet . Comcast business. Built for speed. Built for business. Neil the dow in and out of session highs. American express certainly helping matters here. A tip of the hat for those spending dragging out those cards bus apparently a lot of you are doing just that. Verizon shares are down after an earnings miss. You know how that goes. The Wireless Subscriber decline was something the street didnt see. That is particularly hitting the stock although it is off its lows. The dow is off collectively is up collectively 156 points. All that has to do with all this fuss maybe republicans are cobbling together a deal on health care. We have moodys economist mark zandi is here. He famously predicted there would be a crash if donald trump got elected. You about he came back you Pay Attention to what i say. At least my wife is at amex. Neil tell me about it. Tell me about it. It is interesting, i read about the trump call, youre certainly not alone, but now what is your view where things are . I think the economy is is fine. I think the economy, six, nine, 12 months ago was on fundamentally sound ground. I think it is on fundamentally sound ground. I think it would take a lot to derail the train. I think the economy is in great shape. Neil first quarter, it is not in great shape. That is anomaly of first quarters, it could be under 1 f that is, would it raise concerns . It shouldnt. That is statistical, seasonality stuff. Shaving a point off q1 gdp growth. We were growing 2 last year. Neil republicans argue we could grow a lot more with a tax cut. One of the reasons dow advance, there are many, they clear the Health Care Hurdle and repeal and replace effort going that has more support that clears the way as well for tax cuts. Are you in that camp that tax cut gives you that growth . I think a Corporate Tax cut largely revenue neutral at least on dynamicallyscored basis, that is good policy. That makes our businesses more competitive. Also our Corporate Tax code really penalizes multinationals. It is kind of a messy systems. Neil dont a lot of Small Businesses pay at prevailing individual rate . They do. Neil dont they need one at individual rate . If we could figure that one out. That gets you into the personal income tax code. That is very complicated. Neil you would be against touching personal rates. If you could figure out in a way that makes it also revenue neutral. Neil what does revenue neutral mean to you . I have some on this show including espouse supplysider view, art laffer, saying it is okay to run deficits in the near term because you get revenue and then some in the longer term, so dont worry about it. You say . Well there are economic benefits to cutting taxes, no doubt about it on the corporate side and on the personal side. So there should be some benefit, they say dynamicallyscored benefit to cutting taxes. Neil because you dont see the dynamic of that right away, right . It takes time but we need to be prudent. You cant go overboard, its a forecast, it is a prediction. Neil right. I think Arthur Laffer for example, i wouldnt go down, as far as he would go because he think this is would generate enormous supply side benefits. Of the economy would be so much larger neil i think he prefaces that by saying if the tax cut is significant. Yeah. I, at this point, that argument kind of resonated with me back when Ronald Reagan first got involved, marginal rates were so much higher. Neil we didnt nearly have debt or deficits. Exactly. That deficit was 35 . Neil that kind of hamstrings. It does. We need lower Corporate Tax. So i, we should take this in steps and make it manageable. Lower the Corporate Tax rate. Make the Corporate Tax system more sane. A lot of things to prove it. Neil right. Lets do it in a way, we dont have to get all the way to revenue neutrality. We can count on some economic benefits, but lets be prudent about it. We do, that is a win. Neil i have read, this will be shortly, with our own people here, what is keeping the dow so strong . You know, while off the levels, s p is only 2 or so from the march 1 highs. What is doing it . He well, ask yourself if you sell stocks, what will you do with it . But it in deposit account at zero . No. Put it in longterm bond . Worried rates will rise. No appreciation there. Put it into housing . We got creamed by housing. There is a question the stock market feels overvalued to me. The pes are high. Neil there was a day we were worried about protecting what we had. Do you think it is getting a little too devilmaycare . The other thing going on, boomers, folks in the 50s, hanging out in the equity market to a larger degree than previous generations at this point in life cycle. Many are not prepared in the retirement. They cant get return in the deposit account. Theyre not in the housing market. Economy is sensitive to swings in the stock prices. Particularly with a lot of red on the screen, boomers will pull back very quick lift i worry about the equity market. It feels highlyvalued. Neil quickly the Federal Reserve is out of the stimulus business, balance sheet, 4 trillion plus they will unwind. Only game in town would be something fiscal, right, to goose things . It is not about goosing anymore. Were at full employment. 4. 5 . Neil were at meager growth. We have to get used to that . No. We have been talking about longterm sustained growth. Corporate tax reform. Immigration reform. We should be neil what is acceptable growth level for you . Anything better than two is acceptable. Ill take it. Corporate tax reform under the best circumstances will not take you to three, certainly not 4 but take you to two, 2. 3. Neil that is substantial. Over 10, 20 year period that is substantial with the debt. Neil the markets might be happy if they see it debt stop growing . That is why it would be nice, do Corporate Tax reform, we have to be prude didnt about it. We have to do it in a way that it doesnt add to deficits and didnts even on paper. Neil but that argues for tinge tinge tinkering with the tax code. Top business rate is 35. No way to take it to 15. Neil how about 20 . 20 is tough unless you have border adjustment tax f you dont have, that is tough. Neil okay. 28. That is doable. We can accomplish that. See how that works out five, 10 years down the road. Neil donald trump, how is he doing . Donald trump, he is not doing much. That goes back to derailing of the train. Here is what i worry, focus on Corporate Tax reform great. Focus on infrastructure great. It is antiglobalization stuff that makes me really nervous, particularly immigration. If you want to go from 2 to 3, to 4, we need more immigrants, not less. We are at full employment. Skilled workers. Very simple stuff like all these kids come to our universities, we train them send them back. Why are we doing that . Why not give them a visa to stay and work here to create jobs here. I hire these kids. In two to three years they will say zandi is an idiot, start their own business. Neil that is what the president tweeted. Zandi is a loser. That sounds right. Neil mark sandy, thank you very much, moodys chief economist. My buddy Charlie Gasparino with breaking news out of washington with a revived health care push, right . Right. The market is responding postively to headlines this thing may get passed. Get back to your conversation with mark zandi. If Health Care Gets passed there are savings there, you can take Corporate Tax rate down, 28 , he likes. He works for ratings agencies, favor in less debt all the time. That is their mantra. Gary cohn, head of nec is saying 20 . Here is what our reporting is saying market is getting ahead of itself. Senior republican aides telling us, fox business, it is unclear if the draft amendment would get necessary votes of 216. Were hearing it is still very much up in the air. Problem goes back to the mainly the Freedom Caucus. Mark med des, head of Freedom Caucus, congressman from North Carolina is meeting with pence and others, mike pence the Vice President , paul ryan the speaker of the house, to try to cobble something together. He does not control the group. He is their nominal spokesman. From we understand inside the Freedom Caucus theyre still debating this new draft proposal. It is interesting. Gives somewhat they want, allow states to have more power over whether essential benefits should be given to everybody. That is the way health care should cover, when youre not, when you dont have your own insurance. Whether new government plan arises out of this. The Freedom Caucus wants more state control. They will get some of that also within the proposal from what i understand, preexisting conditions, youre covered for that still. That is something some Freedom Caucus members, government should not decide that. That is the market, if you have that automatically makes insurance more difficult so no one gets covered. Lets be real lear. What youre hearing from congress is ahead of itself. Optimism about the plan is getting ahead of itself. Doesnt mean it wont happen. Freedom caucus is the very much up in the air. Remember those were the recalcitrants that killed it last time. What were saying is, if there is optimism be very cautious neil. Back to you. Neil win over those conservatives, moderates. Tuesday group they call them, right . Neil tuesday group. They used meet on tuesdays. That is where that came from. Logical, right . Even i could figure that out. Neil if they met on tuesdays they wouldnt call it a wednesday group. I hear there is Pumpkin Spice latte group. Neil everyone gives one. I have latte update to give you. So many great flavor. I had one yesterday, it was horrible, frappuccino. Neil you dont like sweets. It was like nuclear waste. I love starbucks. I love starbucks. I love the coffee. This thing was so bad. It was like, it was toxic. Neil i think you have walls built around you. Very good see you, my friend, a meantime a congressman that voted no on the last repeal and replace effort, how does he feel about this one . After this. [vo] quickbooks introduces jeanette and her mobile wedding business. She travels far and wide to officiate i dos. And quickbooks automatically tracks those miles. She categorizes with a swipe and is ready for tax time. Find more than 4000 in tax savings. Visit quickbooksdotcom. Neil are you worried that the agenda here is in danger . Yeah, i do. Look, republicans i was critical of democrats. When they had the house, senate and presidency, i was critical of republicans under bush when they had the house, senate and presidency. I thought they blew it. We have two main objectives, repeal and replace obamacare and engage in tax reform. I really believe those should happen in 2017. Neil all right, speaking with congressman Jason Chaffetz here, he announced he is bowing out. Not running for reelection in 2018. He is concerned about prospects for republicans already this year in 2017 that they have got to move fast on things like that, Health Care Repeal and replace and tax cuts if they dont, then he might have Company Leaving the house of representatives and elsewhere. Politico playbook coauthor adam palmer on that. He says it is for personal reasons. It is a tough life. It is, we all know that. Is there Something Else afoot or reading the tea leaves and fearing i better get out of dodge before more republicans join me. We have to take Jason Chaffetz what he said. It is a tough lifestyle. He is definitely looking at governorship in terms of running for 2020. He left that door open. You can see him going into the private sector. Talk of a potential tv deal he would be involved in. So i dont think this is his last time in Public Service but certainly his decision to step down at this moment was very surprising yesterday. Neil all right, you know, there is talk the republicans are close to cobbling together a Health Care Deal here and this one has got to pass, doesnt it . I dont know about that. Yes, there is talk of cobbling together a health care bill. One, congress is not here. It is a lot easier for them to trot out the leadership level with the house Freedom Caucus and moderate tuesday group to try to come together with something but they arent going to know what the real votes are until their members get back to see what is in the bill and get a sense of neil hang in there, anna. President moment ago from the white house, going after foreignmade steel. Wilbur ross leading this critical effort. He have well been working on it since i came into office and long before i came to office. Well fight for American Workers and americanmade steel, and that is beginning immediately. For decades americans lost our jobs and factories to unfair foreign trade. One steel mill after another has been shut down, abandoned and closed, and were going to reverse that. Other countries have made a living taking advantage of the United States in so many ways as you know. Ive been talking about that for a long time. As i travel the country i saw shuttered factories and the shuttered dreams and i pledged i would take action. Probably one of the primary reasons im sitting here today as president. And since the day i entered office i have followed through on that pledge big league because with our withdrawal from the transpacific partnership, which would have been a catastrophe for our businesses and our workers. Im very proud of that withdrawal. Some people say, oh, gee, i wish you wouldnt do that. But the smart people say, thank you, thank you. That would have been another nafta disaster, nafta, believe me was a disaster and continues to be a disaster for our country. On tuesday i signed an order to enforce the buy american laws and stop Foreign Countries from stealing contracts from American Companies and essentially from American Workers. Today im directing the department of commerce to immediately prioritize the investigation that began yesterday and really long before that because wilbur and i have been working on this for a long time, into foreign steel arriving into our markets and to submit a report on the effects of these foreign Steel Products on the National Security of the United States. It is not just the price thing. It is not just employment. It also has to do with the National Security of our country, which people never talk about. I talk about it. Maintaining the production of American Steel is extremely important to our National Security, and our Defense Industry base. Steel is critical to both our economy and our military. This is not an area where we can afford to become dependent on Foreign Countries. We have product where we actually need Foreign Countries to be nice to us in order to fight for our people. And that is not going to happen any longer, believe me. Especially as it comes to steel. This investigation will look at how steel imports are impacting the United States National Security, taking into account foreign practices such as steel dumping. Dumping is a tremendous problem in this country. Theyre dumping vast amounts of steel in our company in our country and theyre really hurting not only our country but our theyre targeting of american industry and other foreign strategies designed to undermine american industry as a whole. Based on the findings of this report, secretary wilbur rose will make formal recommendations to the white house in the very near future. He will be back very soon with the recommendations we will implement. From now on were going to stand up for american jobs, workers, their security and for American Steel companies and companies generally. Todays action is the next vital step toward making america strong and prosperous once again. And i want to just add, i want going to do this but i was in wisconsin the other day and i want to end and add by saying that canada, what they have done to our dairy farmworkers is a disgrace. It is a disgrace. I spent time with some of the farmers in wisconsin, and as you know rules, regulation, Different Things have changed and our farmers in wisconsin and new york state are being put out of business, our Dairy Farmers. And that also includes whats happening along our northern border states with canada, having to do with lumber and timber. The fact is nafta, whether it is mexico or canada, is a disaster for our country. It is a disaster. It is a trading disaster. And well be reporting back sometime over the next two weeks as to nafta and what were going to do about it. But, what happened to our Dairy Farmers in wisconsin and new york state, were not going to let it happen. We cant let canada or anybody else take advantage and do what they did to our workers and to our farmers. And again, i want to also just mention included in there is lumber, timber and energy. So well have to get to the negotiating table with canada very, very quickly. Again, just to tell you, this is another nafta disaster and were not going to let it continue onward. I think what i would like to do is, ask a few of the people, if they would like to, these are some of the great Steel Companies of our country. Now some of those companies were much bigger years ago. U. S. Steel would be an example and others would be an example. These were the greatest companies in the world years ago and today they have been hurt and they will be great again. They will be great very soon. Well impose very, very strict regulations on unfair cometics from the outside competition from the outside world. Perhaps i could ask the head of United States steel to say a few words. Thank you, mr. President. The signing of this executive order clearly demonstrates the understanding of the fundamental importance our industry has not just to the National Economy but our national defense. Thank you very much. I appreciate it. Anybody want to Say Something on behalf of your workers. Thank you, mr. President , secretary ross, for this action to protect not only our industries, our employees, frankly our country. Thank you for this bold move. Thank you very much. On behalf of workers in the industry, president of the steelworkers union, i worked a long time with wilbur, weve been fighting unfair trade for years. Hopefully this executive order will if i have us tools we need to put our people whack to work. I have a lot of faith secretary wilbur ross will make that happen. I have to say unions are working with us very closely and they have been great. So i appreciate that, thank you very much. So were going to sign. This is a very important signing. Well be back over the p the next 30 to 50 days i would say, mack sooner than that, statutorilily well take a hard study and do something great for our industry but in this particular case for the Steel Industry and i look forward to it too. [cameras clicking] so should i give this pen to labor or to steel . Im going to look at it, there will be a partnership . How about we give it to the union for a change . Should we do that . Come on. Treat us fairly. Thats all. You treat us fairly. Reporter [inaudible]. This has nothing to do with china. This has to do worldwide, what is happening. The dumping problem is a worldwide problem. [shouting questions] thank you everybody. Thank you, everybody. [applause] neil okay, the white house signaling very clear theyre not changing policy here as much as investigating whether foreigners are dumping steel in this country at pennies on the dollar. If they are, it is going to stop. But this president ial directive, 25th executive order on the part of this president is an indication that stops, if it is going on, that stops. If it unites Steel Companies and labor, saying that foreign players are taking advantage of the rules, dumping their steel again at much lower costs here. Now, the only similarity i could think of is back in the days when Ronald Reagan was president , when the japanese were criticized with dumping chips on our market, toshiba was a catalyst for that back in the early 1980s. Ronald reagan took the rare move of citing toshiba as an example of that. The japanese changed their ways, and that ended dump chinese, or japanese chips on this market. Whether the same materializes here, way too soon to tell. Politico playbook author anna palmer on that. What do you think . Two things are interesting what happened. One, commerce secretary wilbur ross portfolio is getting very full. The person leading on nafta and trade negotiations. He was in the lead for investigation of h1b veeses is a and buy american. Today he is leading a lot of reports and a lot of investigations. Practical implications right now theyre not changing wholesale policy. I also thought second thing that was really interesting to me, what he said, President Trump said on china. This is not directed at china and chinas Steel Industry and dumping in terms of that but its a worldwide issue. Neil china is the biggest practitioner. At the time we didnt target japan per se with the toshiba chips. We cited toshiba but protected by the japanese with Ronald Reagan. Bottom line toshiba stopped it, japan stopped it. It was done. Now what do you think the fallout will be here because the president is using china as a wedge to get to north korea and holding back on any punitive actions regarding trade or currency or rigged everything until he gets some progress on that, what do you make of that . I think he is in a tricky position. He wants to come out 100 days, 25 executive orders, show strength and commitment to Campaign Promises that he made. Certainly trade and china were two of the biggest things that he campaigned on every single day but you know, just as you noted, he needs china terms of what is happening with north korea and certainly kind of backpeddled his rhetoric, that aggressive rhetoric against china particular. So i think he is trying to use a little bit of a carrot and a stick here. Neil thank you very much for your patience. All that breaking news, politico playbook author, anna palmer. Quick look at the corner of wall and broad. Dow at session highs. American express is big part of that. Weve been pulling out our American Express cards, those who have them, spending a lot. That is certainly a boom to American Express and a lot of retailers which have been benefiting as well. The stock is up 5 . The real juice of the market. Republicans are coming close, close i should say, to maybe a rework on that health care rework, repeal and replace effort, that kind of went down in flames a few weeks ago. They never even put it up for a vote because conservative caucus members, Freedom Caucus members were balking at it. We have a member of congress wasnt too keen on the effort last go round. What does he make of the signs we see of this goround . After this. Theres nothing more important than your health. So if youre on medicare or will be soon, you may want more than parts a and b heres why. Medicare only covers about 80 of your part b medical expenses. The rest is up to you. You might want to consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like any Medicare Supplement insurance plan, these help pick up some of what medicare doesnt pay. And, these plans let you choose any doctor or hospital that accepts medicare patients. 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Neil the dow at session highs up 183 points of the a lot of optimism about Health Care Deal, not exclusively but partially. Republican congressman dan donovan was one of the no votes if it ever came around to a vote when the republicans kicked around a repeal and replace effort. Wonder what he feels about now. Good to see you. Thank you, neil. Neil so little we know, and so little you know about some of the things that were ironed out, or not ironed out but theyre closer. There is always speculation on markets move. You hear news, people get excited. People get a chance on this we have to repair our health care system. We promised American People we do that. We have to try it again. I think the president neil why . If you go back to the well last time, why couldnt you guys focus on tax cuts, seems broader agreement revisiting this . Health care mandates have effect on tax codes. Neil you have to make that work. Have to make that work before you get to tax cuts. Neil why were you a no vote when it came around im only republican member of congress in new york city. There are 12 democrats and me. I dont think its a fair fight. I feel bad for the 12 of them. But it hurt people i represent. As only republican in new york city, i feel responsibility for our entire city besides people in the 11th congressional district. Relieving up state counties and counties of long island from medicaid payments, their responsiblities would put that burden on new york city. We would see increase in our responsiblities, our taxes, without any further benefit to the people i represent. Neil is that provision removed would you be more inclined to look at, legislation favorably . There was other matters too. I explained it to the president. I explained it to the Vice President. When you come to tax credits, allow people paying astronomical premiums and copayments and, have large deductibles, they were going to be able to use tax credits to help them purchase insurance, advancable tax credits. Those tax credits werent going to be available in new york. It is illegal to use federal funds or tax credits for a policy covers abortion procedures. New york requires Insurance Companies to cover abortion procedures hardworking tax paying americans, new yorkers would not have those their ability to use those to help them with that burden that they have. Neil you always get a sense, congressman, that this great divide still in the republican party, even if youre able to not, you specifically but overcome differences between two conservative sides and moderate side, whatever you want to call it, that it is a preview of coming attractions even when it comes to tax cuts. There is broad agreement on there. There is not agreement on import tax, border tax. Not agreement whether you limit deductionses mortgage interest, et cetera. Writing off sate sales tax, income taxes, in new york, that is a very big issue im sure. So where is that going . A lot of our differences are geographic. Neil right. If you live in nevada you dont have local or state income tax. They dont care we eliminate that deduction. In new york city, that is 10 of the people i represent, that is 10 of their income theyre able to, that they pay into the state and city and it is important to them to be able to do that. Neil do you think we should roll back deductions for lets say upper income . You know what . There are ways you can do this, everyone should pay their fair share. The tax code is too complicated. It is cumbersome. People trying to file benefits for their tuition benefits in the taxes have to go through hundreds of pages of the tax code to figure out neil what is fair to you. You have to measure that out. The other thing government has to figure out what is fair to our citizens is how much they need to run the government. Largest majority of monies we spend running government comes from personal income tax. We have to make sure have money running government. We have to be fairer to people. It is complicated. Neil some dont pay taxes. We focused on the top 1 , 5 , that is all fair game but now 35 pay no income taxes at all. Should everyone pay a little bit at least . Not that they have to pay 30, 35, 40 . Should everyone have skin in the game . When you have buyin, things seem to work better. One the problems with Affordable Care act passed only by democratic votes that they have control of congress and white house. Now that we have control replacing it if we dont have buyin from other side, if admin strange changes again. Neil someone has to break the logjam, titfortat, titfortat. Youre new, a couple years. Someone has to dive into the water to reach across the aisle, hope others respond and bury the hatchet on this ones offended what this party did prior to what the other party did, stop that, but were not at that point, are we . I think we can get to that point. Im in favor of breaking some larger issues down into manageable parts so that people on both sides of the aisle can agree maybe we should allow Insurance Companies to sell insurance across state lines. Were told it will drive premiums down because there will be competition. Lets see it happen. I dont know who can be against trying that. Maybe break it down, very easy neil democrats say that is not the magic elixer . Something some could come on board to break logjams. Neil some of the conservative colleagues say health care for everyone is not an birthright. Access to health care shouldnt be republican or democratic issue, it should be an american issue. We have the responsibility to allow people to have opportunities. Some people make poor choices. Some people decide not to have Health Insurance. In a free society you make poor choices. One of the poor choices if the person arrives in the emergency ream well still care for them. Neil congressman, thank thank r very much. With all the breaking news. Dan donovan lone wolf in this neck of the woods with his dozen or so democratic colleagues. Stocks still popping up the 175 points, to the congressmans point largely on optimism that might be misplaced. Hope springs eternal, whether youre red or blue, everyone seems to be liking the green. More after this. So those financial regulations being talked about . They could affect your accounts, so lets get together and talk, is being proactive. Its how edward jones makes sense of investing. Dont let dust and allergens and lifes beautiful moments. Flonase allergy relief delivers more complete relief. Flonase helps block 6 key inflammatory substances that cause all your symptoms, including nasal congestion and itchy, watery eyes. Flonase is an allergy nasal spray that works even beyond the nose. So you can enjoy every beautiful moment to the fullest. Neil all right, American Express is with possible deal with health care, one of the reasons why people are buying. We are getting detailed on the contest of that amendment that authors are happying will put repeal and replacement of obamacare off the sheets. Prohibition on denying coverage due to preexisting medical conditions, another prohibition on discrimination based on gender, guarantied issue of coverage to all applicants, this is a very big deal and guarantied renewability of coverage. This has been a sticking point. Republicans want to do it a different way. Covered of dependents plan, americans love that. Option for states to obtain waivers from the standards so they can low e premium costs and get more people ensured. They can opt out of some of the stuff. Only of the elements of obamacare that can be waived, essential Health Benefit that is are controversial that we talked about a great deal. Now, the negotiations that youre talking about are happening even as insureds across the country are beginning to estimate costs for 2018 and general for consumers not so great. A new survey show that 3 and 4 plan to raise rates in 2018, survey gives a window into the early planning by insurers as they begin to sketch out, june 21st is their deadline and have of the insureds plan to raise rate by 20 and as you can see here, half overall 10 to 20 , 25 say that theyre going to raise rates by more than 20 and as you can see here, 25 less than 10 . Overall, i was told, guess what, nobody is going to keep the prices the same, theyre all going the raise and hope springs eternal that some of this material in the amendment could actually bring prices down. As youve been saying, they are hoping another 15 to 20 votes in congress would come along because of these changes, neil. Neil all right, thank you very much. It seems to me, congressman, very good to have you, sir, it seems to me that at least some of the things that republicans are telegraphing are obamacare as it is right now, renewing coverage for the same conditions, regardless, what do you make of what youre hearing . Well, i think we would have to see the legislation first. Some of it contains things that are being reported that i could support. The problem that gives me heartburn is if this new legislation that we are hearing about and obviously nobody has read it yet, at least i dont know if any democrat who has said it, is that states would have the ability to make adjustments and and the essential Healthcare Benefits are not guarantied once they are transferred to the state to make a decision. My state, for example, has not expanded medicaid, so that would be a strong possibility that some of the essential Health Benefits would be left out, ambulatory, pregnancy, in missouri, its an extremely conservative legislature and i doubt seriously if they would have the things that they preserve the things that most of the people in missouri would want to embrace. Neil do you think that various states should have flexibility . In other words, you could get your benefits and Insurance Companies go over state lines and have things set up in different states for different folks and that might be a costsaver that would offset the concerns that you have, for example, in missouri . Well, yes. I think that the things could be tweaked. That could be tweaked to provide some comfort to people who could cross state line to get Health Insurance. You know, Health Insurance not Health Insurance, but insurance is generally done by the states. Its something that the federal government has kept its hands off for now, almost a century and so its not a bad thing, but i think in the case of health care which is quite different than the other Insurance Programs and states only manage, Health Insurance becomes a much bigger deal and you talked about it earlier. I think the question is, is health care a human benefit . Should we provide everyone with health care, should that be an acceptance that, you know, if youre a human being and assisting the country, you get health care, thats a philosophical, ideological question that i think we have to wrangle with. I come down on the side that, of course, its a human benefit and everyone should get it, but i think the whole state thing could be worked out, but, you know, one of the problems, i think, neil, is that we havent gone we havent had regular order in doing this and that is a bill is introduced, assigned to committee, committee hearings, it goes to the rules committee, none of that happened. And so i think that we ought to have a debate on the bill. You said something earlier and i think youre right on target. At some point we have to say, okay, yes, they did it to us, but its got to stop and i think both sides are afraid that if we stop it, then the other side is not going to respect us for stopping it, theyll run over us more. If this continues to go on, we are in trouble as a country. Neil congressman, real quickly, i have been reading about the chatter book thats out on what imploded the Hillary Clinton campaign, one thing that stands out, i havent finished it, one thing that stands out is this notion that the clinton folks thought they had it won, polling stopped, they had believe that the forces of good were on their side and that things were going all their way. There are a lot of unnamed people quoted in those were warning within the ranks to Hillary Clinton folks, hey, youre getting ahead of yourself, too many hollywood celebrities, cool it, cool it, im going onto make the point, were you among those who were telling the clinton folks, you think youre going to anialate this guy trump and you just dont get it . I was deeply involved in the campaign, i spoke at the convention, a longtime friend with the clintons, i was nervous the entire last inning of that contest because i think that this was something that nobody had ever seen before and the polling data just could not be trust that had much and so some of us were nervous. In fact, there were a number of people i know who were nervous the entire period as we moved toward election day and i think we made some tactical mistakes, i think we could have done a lot of things quite different and we might the outcome might have been different. One of the things that we did was wrong, is we thought that the negatives of donald trump, everybody is going to be upset with donald trump because all of these things, they are not going to vote for him, i think some people took that attitude and we concentrated on him and i think if we could do it over again, forget donald trump, lets campaign on what we are going to do. Neil release after the infamous donald trump tape and even then you were saying, i take nothing for granted, we shouldnt get crazy and loving this right now. I remember that in retrospect. Congressman, good to see you. Good to be with you. Neil meanwhile from a possible healthcare deal to a possible iran deal, im talking about undoing the iran deal. Rex tillerson is warning iran that that thing we signed off on, no guaranties there. Adam shapiro on the latest to a future north korea adam correct. The review is now underway. There was a statement that iran was in compliance with the arms deals that the nuclear deal that had been signed in the Obama Administration but secretary tillerson had said that it fails to achieve the objective of a none nuclear iran and the review by the National Security council is to determine if they would be able to meet the challenges iran poses with clarity and conviction, but the most recent thing thats happened, neil, comes from un embassador nikki haley who put it like this. While this council has paid too little attention to this growing menace, the United States will not. We are going speak up about iran and hezbollah and we are going to act against their lawlessness. Adam and, of course, iran is responding to all of this. Foreign Affairs Minister tweeted this statement and im going to read it to you, quote, worn out u. S. Accusations, cant mask omissions of iran compliance with the treaty, obligating u. S. To change course and fulfill its own commitments, a midmay deadline for the United States to for the secretary to finish the review of whether suspension of sanctions should remain in place, back to you. Neil all right, thank you, my friend, adam shapiro joining us from outside the white house. Michael duran, bush 43 nsc director. You heard that for many reasons we want to back up from the deal or rip it off thats a dangerous one, what do you say . Its hard to back away from it. Obama president obama shifted our Foreign Policy so far in the direction of iran both inside the middle east and globally that just a shift back to where we were before is probably impossible, we have to do it incrementally. Whats exciting here to me as somebody who thinks that we need a new balance is that, i think, everyone in the Obama Administration agrees with that and theyre going to do it incrementally, thats the signal im hearing. Neil one of the things that i always wondered about is theres another level of which you make moves like this, like a move about iran, put them on notice, syria, tomahawk missile attack a couple of weeks ago, Even North Korea being a little bit more aggressive in the Korean Peninsula, that you leave them wondering that as the bad guys in this case, that what your next move will be, like Ronald Reagan with the defense shield in space. Not that he would realistically do it or could he do it, but that hes crazy enough to want to try and that gets people to the negotiating table, what do you think . Thats a principle of Donald Trumps and thats a very good one. One of the things that president obama did incorrectly is he took military deterrence completely off the table to adversaries knew that no matter what they did, we were not going to respond with any kind of with our military which is our absolutely strongest asset. Neil so where is this going . Obviously, we said this is what we are looking at. Iran is still meddlesome as ever, theyre not going to stop that, theyve gotten tens of billions of the money that was frozen. There was very little impetus to stop it, right . President obama convinced the American People that we dont have options. We have options but we have to develop leverage over iran and what i expect the Trump Administration to do is incrementally increase our leverage across the board so that we have a whole set of options to cause them pain when theyre causing us pain. Neil all right. Michael doran, thank you, good to see you. Thank you. Neil we are expecting to hear Steve Mnuchin to reporters. Normally we wouldnt be all over that but the timing of this with the Health Care Work that might be closer, the pushback on the original august timeline that he raised with us about a month ago when i last visited him at treasury for the tax cut package, a combination of events that has us paying more attention than we normally would. We are on that after this did you know slow internet can actually hold your business back . Say goodbye to slow downloads, slow backups, slow everything. Comcast business offers blazing fast and reliable internet thats over 6 times faster than slow internet from the phone company. Say hello to internet speeds up to 250 mbps. And add phone and tv for only 34. 90 more a month. Call today. Comcast business. Built for business. Neil forget about hes not going to run out of 2018, might be sooner than that. He wants to spend more time with his family, that time could start sooner than earlier planned. My future plans are not yet finalized. I have no plans to take my foot off the gas. All right. In the meantime we are following the treasury secretary Steve Mnuchin. He is ready to address reporters pretty soon. He might telegraph some of the assumed progress on health care and the tax cut thing, the deadline that is been pushed back. Top economist mark zan deposition exhibit y was talking about. Take a look. Are lets lower Corporate Tax rate. Lets do it in the way that we dont have to get all the way to revenue neutrality, we can count on some economic benefits but lets be prudent about it. Allright. Lets be prudent about it. He was against andy, go nuts part. Charlie listen, i like mark zandi, remember who he represents . Rate agencies have been historically against rate under obama. He also also unprecedented intervention by government to stem the effects of the financial crisis. We had bank bailouts, massive printing of money, we had infrastructure. We had everything. They threw everything out. He still got 1. 45 average, 1. 45 gdp growth. Why is that . As he was doing destimmulating and making the Regulatory Environment for banks. Neil youre not a fan of barack obama . Charlie personally , i think hes a great man. [laughter] neil he was the one that was saying august and now they are saying, maybe not. I agree with you. Then what . Charlie then the market optimism that we are seeing today is warranted because i just got to see how much they get cleared. We are going to see a significant Corporate Tax cut and i will tell you, unless i know mark zandi thinks its 2018, unless hes totally smokeblown on peoples rearends, we are going to go big on Corporate Taxes, 20 that could be such the markets, i think, will have to take off on Something Like that if that does occur. Neil i had somebody yesterday talking about the fact, very few Companies Pay the advertised rates. Charlie they take the loopholes. Neil understood. But if you get it down to 20 , forget about the trump goal at 15 , thats a big deal, right . Charlie remember what loopholes do, neil, they skew incentives. People talk about maybe the average rich guy wont get a tax cut because he will only pay 30 marginal rate at the top, but he wont have all the loopholes, guess what they do, they force you, cause you to do things that you wont otherwise do. Thats why its important that they get down the the top rate down to 30 and, you know neil but i worry about that and you minimized that. Charlie i never make fun of you except for the coffee, the latte stuff is a little more me. Neil you were trying to new latte. Charlie i was forced. Neil look at this. Living proof. [laughter] neil there you go. You were with liz liz claman. Charlie every day i drink two cups of starbucks coffee, its the best coffee in the world. That stuff, that stuff you know what it looked like . A combination of trumps skin color with veracose veins. It was horrible. This makes pumpkin latte like a fine brandi. Charlie she made me take a sip. Liz claman made me. She threatened me. She threatened me. It was somewhat hostile at the time and she threatened me. I did what i had to do for the good of the network. [laughter] neil all right. We are going to monitor mnuchin, anything that gasparino says is wrong. [laughter] neil we will have more. Charlie wrong detect [laughter] Driver Assist systems can pull you back into your lane if drifting. Bye chief. Bye bobby. And will even help you brake, if necessary. It makes driving less of a production. Lease the gle350 for 579 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. [he has a new business teaching lessons. Rodney wanted to know how his business was doing. So he got quickbooks. It organizes all his accounts, so he can see his bottom line. Ahhh. Thats a profit. Know where you stand instantly. Visit quickbooksdotcom. Neil all right. We have been monitoring Steve Mnuchin. He is speaking at a washington, d. C. , seminar right now. Sort of the bullet points what hes saying that the administration continues to be looking forward to bringing major reform forward. He has been meeting with house ways and means chief kevin brady and others weekly. They agree l all on the same page. That might be news to kevin brady who was with me two days ago, on your world. Maybe one of the people talking to was the treasury secretary. He says the tax reform will be paid by growth. That is about to dynamic scoring. Might not be revenue neutral from the start. That is my interpretation, that it will be dynamically scored. That the revenue will come in. It will pay for itself in the longer term. That is about the supplysiders who are big advocates not getting caught up whether a tax cut will worsen the deficit near term before it improves things longer term. Were monitoring all that. We have governor tim paw lent at this, governor, good to have you. Thank you, neil. Neil what to you think the treasury secretary is saying on a day were getting reports that the republicans are getting toward a Health Care Deal. Direction alley looks good. Individual exemptions, deductions credit, get eliminated individual Interest Groups may get upset. Directionally it looks very positive. For dynamic scoring there should be room for growth in the calculations. Idea we statically score things as if there is no growth with tax cuts. They shouldnt overdo it. We should be mindful triggering additional deficits. Neil when you say overdo it, i guess that will decide this whole debate, right, governor . There are those who argue in order for a tax cut to be truly stimulative, and get the bang for the buck you have to cut it a lot across the board. To your point, and to those worried about deficits in the near term at least you cant go too crazy. We could be left with tax cuts that arent substantial, right . I would distinguish two things you said. One the tax cuts can be and should be substantial. Otherwise you wont trigger the growth we all need and hope for and want, but when you talk about making sure it is paid for, you can pay for some of it i think through dynamic scoring or whatever the modeling warrants in that regard, responsible modeling warrants in that regard. Do a trillion dollar tax cut over 10 years as a hypothetical i dont think you can say were paying for the whole thing just on growth assumptions unless the models validate that. If the models validate 500 trillion in growth revenues, then you got to find 500 trillion cutting Something Else. Neil one of the things that the president seems to be intimating here is that he wants a big tax cut, and he seems to accept the fact that, you know, dynamic scoring to your point is the way to go here but what if we dont get that . What if it is just a Corporate Tax cut this year. Individual rates, if addressed at all will be next year, could you live with that . Do you think, for example, the markets financial companies, could live with that . Well, i think the, this is a once in a generation opportunity, neil, republican president , republican house, republican senate. Of course Corporate Tax cuts by themselves would be valuable. However, if they defer the rest of it, i think there is grave risk in that. There is always other intervening geopolitical issues, domestic political issues, other issues arise that could bump this window of opportunity to the side. I would be strongly encouraging for them to do it this year in one comprehensive package. This is one of the key political holy grails for conservatives. This is a once in a generation window and i dont think they should piecemeal it. Neil governor, great seeing you again. Good to see you. Neil i dont know if youre focusing on what is going on in venezuela. The protests are getting deadly and out of control. Hugo chavez, this new guy, he makes him look like the pope. After this. [shouting] maintaining the production of American Steel is extremely important to our National Security and our defense industrials base. Steel is critical to both our economy and our military. This is not an area where we can afford to become dependent on Foreign Countries. Neil an effort by the president going after those countries that might be dumping steel pennies on the dollar. Just looking at those accusations going on has steel stocks soaring. United industries ceo and labor unions in the industry, a rare onetwo punch sending a message to those who might be thinking of doing that, that those days are numbered. Were 91 days in here, for President Trump. Has anything changed . Larry sabato, a friend of tweeting. That were not one nation indisvisible, were two nations red and blue and i wonder if it is fixable anytime soon. Normallily a cockeyed optimist but sounds like he is depressed and suicidal. I want to bring him back, larry sabato. What is going on with you . Im honored reading my tweets. Probably your producers. I doubt you read it. Neil that is exactly right. That is what i figured. Neil youre creating a buzz, youre getting to be a Debbie Downer here. Why . Because there is no compromise. People barely talk to each other in the two parties. Neil thats true. There is no crossing of of the aisle. You dont have any democratic vote for democratic measures. Republican votes for democratic measures. Im oldfashioned, i grew up, so did you, neil, youre older than you say neil im 29. I dont know what youre talking about. Youre 29, 60s, 70s, 80s, you had a lot of crosspollination with two parties. That is healthiest way to run the government, state legislatures, and local government but we have less and less of that. Neil youre absolutely right. Kidding aside. We see no cross over. Emanuel cleaver a pastor by training we have to have this end. One has to swallow its pride and make over ture. Plenty of reason for each side to be angry at the other. They cant seem to do that, the fear the rabid base is going to turn on them. What do you make of that . What would change it . Well, that is exactly right. Its really a fear of a primary challenge. Neil right. Since as you look across the country, the 435 districts, the vast majority of them are so one party, neil, that the incumbent can only lose in a primary. How can you lose in a primary if youre a republican . You get challenged from the right. If youre a democrat, you get challenged from the left. That is the only way you could lose, given the sort of people who vote in democratic and republican primaries. How do you get that challenge . When you appear to compromise. You appear to be soft. Youre willing to give half to the other side. We used to honor that kind of thing. Now it is dishonored and criticized and penalized. Neil when i was in washington recently, one of the things that stood out, i was talking to a couple of congressman, senators, they had all muse to your point the ol days where the other side wasnt given a Scarlet Letter for talking to the or the side. But it could explain what is going on with Jason Chaffetz in utah who says he doesnt want to run for reelection, wants to spend more time with his family. Now talk there could be a special election, even prior to that, so he could leave sooner. There are always sacrifices in public servant, i get that, but seems like a lot of people, the process itself for both parties gets grinding and they want out. What do you make of that . That is absolutely true and what it means over the long term you have fewer people with senority. I realize most people favor term limits, but you want some people that know where the bodies are buried. You want some people with institutional memory. It helps to make the institution work, the institution of the house, senate, congress generally. So i think thats what were losing, and chaffetz hasnt been there that long. I think he was he elected in 2008. So, it really hasnt been that long for him, and as you say, he may leave even before the end of this term. Now he he is chairman of oversight. Oversight is a Great Committee to chair when the other Party Controls the white house. Neil exactly. Not as much fun when youre being called upon to investigate your own side. So i have a hard time blaming him. Neil he got criticized for not being zealous going after donald trump rather than Hillary Clinton regardless of politics. Having said that the 2018 phenomenon is coming up again because of a close race in georgia, i dont know how that will factor out in june and runoff. We saw a close one that shouldnt have been a close one already. How does next year shape up as you see it . Well, it is awfully early but i would say the house has a much greater chance of flipping parties than the senate does because of the senate seats that are up. It is just really difficult for republicans not to gain seats. Forget about losing seats. They should gain some seats, maybe substantial number. Well have to sigh. But in the house, look, it depends where President Trumps job approval numbers are coming up to the election season. If he is in the 30s, democrats have a chance to pull the 24 seats they need to flip in order to take control. If he is more popular than that i think it is much less likely. Neil all right. Well watch, very, very closely. I will be following your tweets in the meantime. This, im telling you, larry, this internet will be big, big, big, big. Share that with you. But be up, be optimistic. Neil absolutely. Look for the sun, not the clouds, neil. I worry about you. Okay. Neil im telling you. Thank you very, very much, professor extraordinaire, larry sabato. One Shocking Development i saw out of venezuela is that gm is halting operations there. That wasnt the news for me. The news was, what the heck is gm doing there . Neil all right. Is there a connection between the dow at session highs, up over 200 points and Steve Mnuchin, treasury secretary, saying were going to get stuff done, tax cuts, health care done by the end of this year. Hard to say, this much is not. The dow is racing ahead. American express a big reason for that. Financial stocks a big reason for that. Growing optimism republicans can cobble something together. The latest reason for the rest of that well see. Theyre always wrong but im always right. In the meantime gm, i found this surprising that it had operations in venezuela to halt but apparently it did and it has. Jeff flock has all the details. Reporter since 1948, neil. You asked a good question, neil. Why are they doing there in such a difficult environment . They have been the Market Leader in terms of venezuela selling cars for decades literally. Sell a lot of chevrolets down there and it is a great place to sell cars because oil is so cheap, gasoline is cheap but not now. In the town of valencia, that is where their manufacturing operations are located. Today they were seized by the venezuelan government and you know, this is one of, now the wall street journal estimates 1400 separate businesses that have been seized and nationalized by the venezuelan government. If they do as well at seizing and nationalizing oil industry, pretty soon they will be riding donkeys down there because there wont be any cars on the street. Yesterday what was called the mother of all marchs took place in the streets of venezuela. Various towns, mainly caracas. Three people killed. This country is a mess. It is looking a little bit like havana in 1959 as businesses are seized and there is widespread unrest on the streets. The government of Nicolas Maduro blames rightests, rightwingers are forcing this but looking more and more just like the general population in general is rebelling against no food, no liquids, no medicine, no parts for their operations of Companies Like general motors, and gm, we talked to them today, their statement says basically were going to, we strongly reject the arbitrary measures taken by the authorities. Well vigorously take all legal actions to defend our rights but right now the courts are in a bit of the pocket of the ruling government. I dont know where that is going to go. Not a great place to do business, neil. Neil cant believe to your point they were there in the first place through chavez years. Used to be good. Neil jeff flock, thank you very much. All kennedy has to see, with socialism and problems but this is socialism is beyond the drift. That is what they say about every socialist model. Say north korea and red china. No, this is what happens when you take socialism to its ultimate end, the government is going to perhaps get involved in one or two enterprises as a way of being benevolent and serving society. But then, when those wells sort of dry up, they have to cast a wider and wider net and it requires the government to have more control over more finances. And ultimately that means diminishing liberty and no choices. That is exactly what happens when you set the prices, you have Food Shortages. Neil but it is Food Shortages led to a lot of these riots here. Im thinking, you mentioned china, at least china gets a little bit of capitalism for its own people so they can participate in this. There are plenty of regimes. They see what happens when people dont have food. They freak out, right, this should be an oilrich country. This should be the kind of place able to feed its citizens and have them thrive if they were participating in the economic liberty about, what happened here . Governments and human beings get selfish. They want to concentrate money and power themselves. They fear if they loosen their grasp on it, allow the populace to participate in it will mean less for them. Ultimately they squash liberties, freedom, economic and otherwise, it ultimately leads to injustice and riots. Neil like were seeing today. Switching gears, if you dont mind by the way for millenials who think socialism is a great thing, go to caracas right now. Neil see what that is like. Steve mnuchin is speaking in washington today and he seems to be lifting the markets up on talk, dont worry, were going to get this stuff done, health care done, tax cuts done. Whatever he is saying is doing its thing and helping markets. Yeah. Neil are we getting ahead of ourselves again . No. Again the markets are reacting with perception. It is not necessarily reality at this point because obviously the administration and congress have not worked together to pass health care. They will take another whack at the pinata but they also have to tackle tax reform. Weve seen some of these conservative economists with editorials, including art laffer, steve forbes, tackle Business Tax Reform and combine that with infrastructure get democrats on board and make biggest impact by lowering Corporate Tax rate and tackle personal income taxes later. I think it is interesting idea. I dont think you should couplet interesting taking things apart. Neil but i think individual rate put off until next year just doesnt happen. I dont know they can do everything at once. Another big loss for this administration could be brutal. Neil no, i hear you on that. Real quickly, is it your thought though that if health care thing falls apart, i think what mnuchin is telling the folks in that room is go right to taxes, if it came to that well go right to tax cuts. Holding out hope twice we failed, were down for now. Yeah. Neil how realistic is that . They built into all the equations revenue they get from reforming the whole it is smarter for them politically to tackle health care before they get to taxes and they know that but if thats not going to happen, its really just an absurd prospect to continually go back to that dry well if they cant make anything happen on health care. And, you know, that i think, if they fail again on health care, i think speaker ryan is done. Neil do you think as libertarian is health care is right for you will . No . Neil why . Because it is not. Government doesnt have a right to take some things from others to give them to others. People feel morally obligated to help people out. That is why we have a safety net. There is difference between safety net to help people who truly cant help themselves. Like some of the older people and most destitute. Theyre often times last to get it when you have a net so large you say everyone has a right to health care. Neil you getting into all this tonight . Were getting into some of it. It is 4 20, neil. Neil im sorry. Dont apologize. Everyone will be in a good move. Neil kennedy, catch her on this, she gets into the issues, has views that will frighten you many times. She is brilliant. Im talking brilliant. Neil dow isnt only thing percolating. You should see the nasdaq after this. Ount, flonase allergy relief keeps your eyes and nose clear. Flonase helps block 6 key inflammatory substances that cause nasal congestion and itchy, watery eyes. . Neil all right, i hopes this put to rest the notion that tax cuts and talk of them effect and weigh on the markets. Im not saying exclusively but largely. American express and betterthanexpected news out of that key dow financial component helped the markets. Betterthanexpected coming out as quarterly report. A lot of the juice from the latest rally from Steve Mnuchin expressing confidence in tax reform talks, Health Care Reform talks, that both will get done before the year is out and everything will be hunkydory. Thats the gist of it. The president will be holding a News Conference at the italian prime minister, he is expected to say our two countries will continue to do work together. To trish regan now. Trish grazie. Thank you so much. Steve mnuchin making a bold promise a short time ago, he said there will be a major tax reform by the end ever the year and the markets love the sound of that. We took off there crossing above 200 as he made the news. Financials, industrials, all higher, a rally on our hands. Welcome everyone to the the intelligence report. Were hearing from President Trumps chief economic adviser gary cohn, formerly goldman sachs. Many folks on the left think mr. Cohn is leading effort to make the administration more