A foxbusiness exclusive. The father of the border adjustment tax. He also went to harvard in the university of pennsylvania he crafted the tax years ago. He has pointedly issued a directive straight after them. The government is can affix obama care insurers have to work to cut prices into cost. That is on their shoulders also. Details about the president s budget coming to life. And how so much spending. We are speaking exclusively and we will get the latest from him. And charlie is about to break it on the stock deal. Breaking news it could be headed yet another record close. We are and can have to go down to the wire to find out. Here is where we find it right now. That is what youre getting it for that Dow Jones Industrial. I got blowback in kudos on friday. We sought the markets turn rent. We need to look at facebook. The social network has been up a tear. A sign that investors are not worried at all by it will be affected by rival snap chat. Walmart is at war. A price war with grocery competitors. That is who really threads walmart the most. They met with major suppliers including proctor and gamble demanding that they cut costs by 15 . They will deal in bulk. To the white house right now. Its been a very phonetic day President Trump earlier unveiling details of his federal budget. This is on the heels of meeting with the nations government President Trump and his plan dramatically increases defense related to spending by 54 billion while cutting other non defense federal agencies by what he and Shauna Spicer will be the exact same amount. After the revelation. Everybody is getting the same bump or higher. You have a great moment there. It is really question that any conservative would ask. How you can add spending and figure out a way that it doesnt then push our deficit back into horrific levels. Nick mulvaney who is at the operative. Said that whatever they put forward well not add to the fiscal Year Spending levels. As you know the budget that they have to put forward will be in fiscal year 18. My direct question as to the press secretary after mulvaney left at the room is that the deficit is about 560 billion and he said it wont add to it he didnt say that they were gonna cut from it drastically. Could you be looking at a deficit here. Theyre so they are still going agency to agency. So does the feeling that you have here. This is still very much a work in progress. This is just a shell just is a blueprint that will get more of a flow full blown budget by may of course. President trump by the way commented on his budget. The defense spending is can be a big part of it there also be a plane with him for structure spending and spending as it relates to law enforcement. National security. To rebuild the depleted military by the way liz when Nick Mulvaney was in the press Briefing Room he was asked about whether or not entitlement reform is on the table. They would not speak directly to entitlement reform. Just to say that now they are to with the nondiscretionary side. Everything is on the table of the President Trump have talked about that. And has been a part of the campaign. Thats where it really all of the money is. Blake, thank you. We need you to make sure to stating. Satan. He is live already at the Nations Capital as he kicks off foxbusiness coverage of the present trumps first appearance before the joint session of congress. Keep it here for complete live life coverage from dc all day. You need to be here with me. We could break the alltime record. Whether the market closes. I hope youre watching. The dow had been done 76 points but with tenements to the closing bell we have a feeling something dramatic was about to happen. Now we are down only three points. We might have the flat line. And there have been. It was down about 11 and there went. And there it went. It battles back. I got germanic for those of you who said i was a little germanic and other efforts of you said it was just so much fun and compelling to watch. Thats why theyre winning. If we push to a possible number 12 with to ask the traders do they really see more room to run. And more important guys the president s joint address tomorrow are you going in longer short let me see and start with the Stock Exchange. You went mostly in neutral i believe not long mostly cash on friday because you started to wonder if this is an end. Where do you stand. Long or short going into tomorrow night. The small cap that was getting beat up. If you do that on friday we were down 12 or 13 handles. It has definitely saved us and bring the power for traders the sellers did not come back. We rallied back. I think it is like her. They could play some catch up. And maybe even all week. Let me to say one thing. I want all of you guys to be watching and just a few minutes. We have the father of the border adjustment tax. There is a belief that the u. S. Dollar will jump in value by 25 if the border tax is in there. We will have to see. But that would be oil negative. His price in it is priced in u. S. Dollars right now. Are you going in life is short. We will have big talk about taxes. Anybody thats trying to faze it. It has been run over. Youve to be very bullish. Most of the things in the speech can be widely bullish for stock. Defense spending which is also bullish for oil because a Defense Department uses more oil than anybody else in the world. Bring an increased demand. But the thing you do have that dollars situation one of the biggest things you have to worry about is a dollar we are showing a defense the defense stocks right now. Okay. To you are you going and long or short because heres the thing if there is any slight disappointment on expectation it does make people wonder there is scant details on the implementation. The longer short going into that speech. Im sure that by the time it starts to the time and it will be interpreted differently. Even if you are really bullish when you think stocks are going to go up a lot i would rather miss the first 20 get in later make it much more informed decision. Were not really changing. We do let to let the step washout. Trading partners. Is not going to give you the news you need. We love our traders. What he was here with us today which would bring that type of thing to you at the moment the markets are winning. Alltime rord close numbers. Anything to the upside that would then absolutely tie the 30 year record. I was born in 1997. Titanic was the movie that sailed to the top of the box office. You might call the border adjustment tax late bloomer. Known as a father of the border tax. Bunch of republicans and businesses some of them are against it in a foxbusiness exclusive. More come down countdown on the way. Some love it some absolutely hate it. Were talking about the much discussed highly contentious border adjustment tax. Its becoming in the hot button issue of the House Republican tax plan. The tax which is levied on imported goods to the u. S. But not on exported goods is being championed by speaker paul ryan. President trump who pushed it again this morning. I know thats always been a point of contention but to me, its just fair. Its reciprocal. Its fair and sobering and we doing a lot of work on that and thats becoming a very important factor. And then, the president S National Economic council on friday apparently was perceived to have said the exact opposite. Gary cohen said it would be a no go. The white house now denies that he said that. They had legions who import parts and goods and they say it will amount to a huge cost increase. So which is it people. In a foxbusiness exclusive we saids bring them in. So you are the rabblerouser here. Thank you for joining us. In terms, the most simple terms for our viewers how do you envision when you came up with this and how it would work. I think it is useful to say that although we dont have it in the United States border adjustments exist everywhere in the world where there is a value added tax. Thats where the idea comes from. Countries that had value added taxes do not impose the tax when the goods are reported. Its really just borrowing the same approach in thinking about putting it with u. S. Tax reform. She said it will bring back factories to the u. S. If they tax incoming parts and goods do you see that happening. That is not the mechanism through which it will work. It really has to do with the fact that the tax effectively makes the transition from Tax Companies based on the income they produce to where things are sold. If its a texan destination that is as if we sell something somewhere else we export theres no tax. If we purchase something in the u. S. And that is the key. If it is taxed whether we make a here or not just so happens that paul ryan is speaking. Lets just listen to what Mitch Mcconnell who just met with President Trump have to say. Have to say. The dni did a government wide search no one is disputing that. In this last governance gave a set us that information the first place. Speemac we just heard the budget numbers this afternoon. We just pressed it them. With the new president coming you get top lights in the budget later on. This is exactly how the system is supposed to work. So we can move forward with processing speemac youve talked about the need for this in the past. He doesnt want to touch these sentiments. Speemac is us an opportunity for them to do that. We havent seen much else in the senate yet. We will confirm the secretary of congress today. So was that a little bit of a nod. Its a senator that was very much against the border adjustment tax. But maybe there is some horsetrading going on. Tom cotten cotton is among the critics. The supply chain. It would be so costly they would have to pass on that cost to consumers growth. It would average 1,700. Do you see that coming to pass. I think the dollar will strengthen. That will insulate the retailers and other industries with a higher cost to see that theyre going to need that. I know they are the ones that are worried. This would be a big change in the tax system. Its hard to comprehend what the new system would look like. They have value added taxes. They havent been devastated the way some people had suggested it hasnt happened anywhere else. He liz the president believes and quite frankly they believe it would bring in this border adjustment tax are your numbers around that as well. I havent done any calculations directly myself but other calculations that have been done the debt clock is running out of space. A hundred billion here and there. Its just conversation. Every little bit helps. And of course the problem needs a lot more to be dealt with. Its great to have you. We are on the side of the president. The university of pennsylvania. Great to have you. The father of this very contentious border tax. This is going to be up on my website. Watch it again we will put some other articles on there as well to help you understand it. Alltime records still in play with 35 minutes to go before the closing bell rings. When i w close to the highs of the session. Dont go away we will be right e back. Definitely doesnt have that. You can leave worry behind when liberty stands with you™ Liberty Mutual insurance 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 sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Liz ah the 89th Academy Awards broadcast showing its age. Highly gossipped best picture mixup between la la land land moonlight. Was not enough to help ross car shine. Ratings dropped to nineyear low. 32. 9 Million Viewers tuned in, representing a 4 plummet from the year before. No hollywood ending like moonlight. Disney, Parent Company of abc trading flat at the moment, flat. But the oscars, at least at that one moment it was sinking ship. Now everybody is, everybody is watching that but not these. Look at detailed fleet. These are civil war model ships. A u. S. Navy veteran and draftsman build the oneofakind collection before his death in 2008. Before he built a ship, he would study it. He had blueprints from the smithsonian institution. If they didnt exist, he would draw his own set of blueprints. Down to the finest detail . He was a fanatic about it. Was your mom applauding his efforts . Not really. Liz ladies and gentlemen, my mother, thanks, mom, for the support. They were pretty but they werent a handbag. Liz look, brand new episode of strange inheritance. We have two tonight. I know. Congratulations. Thank you. Liz these ship models, talk about the value of them . People paid larrys father top dollar to build them because they were so incredibly accurate, built to scale, with every little detail, every Single Mission represented in the collection and there is more than a thousand ships out there right now. Well tell people tonight how to know if they have one his fathers ships. Maybe they bought it at an action or maybe they bought it at a garage sale. This is definitely something to see and something to own. He is so proud of his dad and learned more about his dad through this collection than his fathers lifetime. We see that a lot in the inheritances they figure out why us why their Family Member kept the item and felt enough to he preserve it. Liz attention must be paid to people that so meticulously worked on Something Like that. That is very poignant when i look like Something Like that. People buy it in this day and age and custom made for that. The makers, that trend is coming back. Something a little closer to my heart, jewelry. I went a little sparkly today i have to say. You will love this episode because we grew up reading jane austen. Many guys know about the books, pried and prejudice and emma. We have a ring that england did not know existed from the descendant of as you ten and her family. Liz is that turquois. She called sothebys, they thought they had a bunch of nutters. It was jane austens. It is incredibly valuable. Kelly clarkson, the country star bought it but something happened. Liz you have to stay tuned to watch what happened. Kelly aint happy i bet watch jamie colby, two new episodes of strange inheritance starting tonight, 9 00 p. M. Eastern. Thanks, liz. Liz closing bell 2minutes away. Right now, session high. 2and change. Now it is 27. Were watching alltime record closing play possibly. You need to stay with me to see if this happens. Hundreds of billions of dollars wasted. No were not talking about the u. S. Budget. Warren buffetts annual letter accuses, accuses a group of people for doing just that, sending shockwaves through the investment industry. This time it is not about the market or stocks. He names names. President trump doubling down on states rights at a key meeting with governors from across the u. S. There are two white house power plays being crafted right now that could makeorbreak all leaders at the state and National Levels including President Trump himself. Up next, governor doug burke ham of north dakota is here. He was in that meeting. Find out what he has to reveal about it, and his take on the dakota pipeline controversy. You have to stick with countdown. Liz for all you business is and investors everybody else, people get a paycheck, patiently waiting for President Trump to tackle tax reform first the president all but set off a National Alarm system when he explained why he is taking on Health Care Policy before taxes or anything else. Listen. So, for those people that say, oh, gee, i wish we could do the tax first. It doesnt work that way. I would like to do that first. Tax cut something never been that easy but a tiny little ant compared to what were talking about with obamacare. Liz and there is his explanation. He said this in front of ceos from Health Insurance companies, aetna, cigna, anthem and so on but as he did that he flatout told them, the insurers that as Congress Works to replace obamare, it is very much on their shoulders to bring down their prices too. No free ride. The president also huddled republican and democratic governors who wanted to address medicaid specifically as their states poor citizens rely on the coverage which is jointly funded by the state and federal governments. One of those governors in the room, join us for a fox business exclusive, doug burgum from north dakota. First to obamacare and changes you like to see and also what you you feel needs to be kept. The president hinted some of obamacare remains. Which parts would you like to see kept . Great to be with you, liz, first on Affordable Care act, probably the most misnamed piece of legislation ever because it didnt address affordability and also didnt address care and there are some things the American People like about and we should keep. We should keep having young people stay on their parents plan to age 26. We should keep preexisting conditions but those things dont come free, part of the reason why obamacare didnt work because it was not acutarily sound. Dollars going in didnt pay for dolls gog out. So that is something we have to address in any plan Going Forward addresses underlying cost of care and liz any idea how many permanent jobs it would create. For north dakota and many people it is about this Energy Security we have. The energy boon in america making sure we transport the oil and energy and gas in, were creating in north america, that we can move it around north dakota the safest possible way. That safest way through pipelines. That lowers costs of energy for everyone. Liz maybe we can export some of it and make some money. Good to see you, governor, thank you so much. Thank you, liz. Liz governor doug burum of north dakota. Russell 2000 were not showing but on the lower band is outperforming doing nicely as well. If we close here, records for the s p and dow. You have to watch to make sure it happens. Stay tuned. The 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 weve got breaking news. Takata the airbag maker just pled guilty to fraud in the airbag scandal that killed at least 16 people. Atat that attakata agreed to pae billion dollars in its role to conceal a deadly defect in airbag inflators. 70 million airbags in 42 million vehicles. New york times has a report that four automakers knew for years, among them, ford and nissan apparently knew for years about these problems. As we watch this develop, it was one billion dollar fine. Ford is still up 1 1 3 . Let me get to this story. The London Stock Exchange is on the verge of calling off a potential 31 billion merger with Exchange PlatformDeutsche Boerse after european regulators tried to step in. Could there be another deal though in the works . Waiting in the wings charlie gasparino, break it. What sources are telling the Fox Business Network that lsc executives are telling bankers that interest remains in purchasing the exchange if the Deutsche Boerse deal falls through. Point out it is not totally done yet. They will try to fight this they will say Deutsche Boerse, european regulators, eu regulators essentially stopped this thing. What theyre asking for in terms of concessions is way too much. They will try to ratchet it back. If they do they will go through the deal obviously. If they dont, there is still interest in the London Stock Exchange. Here is what bankers are saying, that the two likely bidders on this thing if it course occur and a whole bunch of people could buy them, nasdaq, cme, cboe. Liz why not. The two they think are most likely interested according to what we understand bankers, ice, Intercontinental Exchange, owns new york Stock Exchange where nicole broadcasts. Liz and cme and nymex. And, and, the Singapore Exchange. That is the other exchange. Would be very interesting Singapore Exchange has cash which comes in and buys this thing. We should point out here is one of the sticking points of this deal and this is interesting in the context of brexit. Brexit is screwing somewhat with the valuation of the London Stock Exchange. If there is a briton exit from the e. U. Makes crossborder deals a lot more difficult. Guess what . That could have impact on number of stocks that actually list on the London Stock Exchange. Liz becomes less valuable. Becomes less valuable that is what bankers are doing, trying to figure out for an American Exchange like the ice, Intercontinental Exchange or like singapore, theyre trying to figure out how much this thing is going on with brexit. A lot of people say there would be no impact with brexit. Im not saying there is broad impact, but one broad deal was a bad thing. I actually think brexit personally was a good thing. It is having an impact and on the valuation of the London Stock Exchange from what i understand ice liz uk pound hit a 12 day low. As were speaking. Liz 12day low, but it lost a fifth of its value since brexit there. Are a lot of intertwining issues here. I will say this, these exchanges are interesting. Why do we care about them . Guess what . First off the markets are global now, lets face it. You want to buy a stock, you want to make sure you get the right price. You want to make sure you get the right execution on that. These exchanges and who owns them is a big thing. And heres the other interesting thing about this. I believe is, that it just shows you what is going on with european regulators right now. Deutsche boerse, i believe tried to buy the new york Stock Exchange, correct . Liz they sure did. How many deals ago is that . I almost forgot. These european regulators are doing the exact opposite of what the u. S. Regulators are poised to do which is approve deals. Liz they approved dow and dupont. Right. Liz charlie, right now, can you stay with us . Right. Liz well blow out all the commercial breaks. Hears why. We have seven minutes to go before the closing bell rings, im not calling it we may have reverse what we had friday where we were down and we fought back to end in alltime record highs for both the s p and the dow. Right now we lost a good chunk of the gains that we had. The dow is up 15 points, the s p up two. Any gain, even a fraction of a point would mean we are absolutely going to see, 12th record in a row for the Dow Jones Industrials. Let me get to chaps on the floor. What is going on . Why the slight pullback here . Well, part of it has to do, the market like what President Trump had to say early this morning but there hasnt been much followup. All eyes what will happen tomorrow. The details, how big will the Infrastructure Spending be. We dont know. Will it be a trillionollars . Nobody believes it will be a trillion dollars. Look at stocks that benefit from that. We were talking about Big Industrial stocks and some of the bidders like caterpillar, united steel, that benefited from earlier comments. Now the question is put your money where your mouth is and will congress pony up. A lot of people wondering about that. Liz im looking at caterpillar. Still up nearly 2 . We have the countdown closer who is with us along with charlie gasparino. I think it is important to note as we bring in all that is happening legendary investor Warren Buffett took real aim at guys who are actually the Money Managers and hedge fund guys. Right. Liz of course that really plays into psychology maybe. He has been saying what you and i have said for a long time. People who pay for advice instead of buying market indexes are losing. Hedge funds are not making money. I want to get back to the point of the markets. There is a bond market and a stock market and theyre saying opposite things. If you look 10year, yields falling, prices are rising. Why is that . They dont believe the trump economic plan, these are bond traders who i think longterm they snuff out problems. Liz yield at 2. 3 right now. Down today . Liz lightly down. Slightly down. My point is this, bonds are trading higher, yields going in opposite direction. Liz yeah. A lot of smart investors that the trump stimulus plan will not be all that he is saying. We asked our floor show traders. David smith, Rockland Trust and shaps can stay with us and charlie with four minutes to go before the closing bell rings. There may be disappointment or overexpectation of what President Trump announces tomorrow night but looking at your 2. 9 billion in assets under management, on a day like this we could see the 12th alltime record close for the year. Folks, were there, even though the dow is up only nine points, do you get a little squeamish here and pull some money off the table . Clearly the market had a heck of a run. From our standpoint we back in to rationalize these numbers. So one of the things weve been doing looking at various programs the administration would like to put in place and try to figure out what are the implications of the bottom line for corporate america. One of the things easiest of them to get some math around would be deduction or reduction in Corporate Tax rates. There is proposals to reduce Corporate Taxes from 35 today down to 15 . Clearly not all corporations pay 35 , but if you use that estimate for a moment and take the s p 500 and look what earnings expectations are over the next 12 months, it is 123 a share. If you cut the tax rate and all Corporate Taxes wept down from 35 to 15 you would grow the earnings per share 164 per share. Liz hold on. 2 1 2 minutes before the closing bell. Charlie . David, the big he question why is the bond market predict something quite the opposite of the stock market right now. Seems like investors in the bond market are saying whoa, well not get the stimulus, that he will spend it on walls and stuff not Corporate Tax cuts which we know is better for the markets . Fact of the matter we dont know what he sill get done. There is lot of uncertainty today to discount cash flows. Liz less than two minutes before the closing bell. S p up two and a fraction. Dow up 17, you want to call it, charlie . 12 records in a row which would tie us with janu of 1987. Stock market is saying give us the tax cuts. We say earnings will go up. We see the economy will be better than what the bond market is saying. We dont believe donald trump can do massive Infrastructure Spending, plus, plus do the tax cuts. Hold off on the amounts of fiscal stimulus. That is a real problem for investors. You have to see what he says tomorrow. The market could go either way tomorrow, wednesday, based on what he says. Shaps based on whe saying what do you think . Interview regarding the border adjustment tax. That is key. When charlie says gives us the tax cuts. There will be a border tax. Liz he is the father of border adjustment tax. He runs the department at uc berkeley. That is on lizclaman. Com. It is fascinating on this and with the president and feels its a good one. We have 30 seconds left and we are cueing the confetti. We want to thank david smith of Rockland Trust. The dow is gaining 15 points. As i said, this is now the 12th record in a row. [closing bell rings] last time we saw that, 30 years ago, january 20th of 1987. That is also a record for the s p 500. The trump boost continues. Of course the atlanta fed he predicted that the gdp for q1 will come in at 2. 5 . So, david and melissa, decent news here. David we have new record. Melissa there you go. Whoohoo. The dow ending the day at at brand new high. 12th day in a row, most consecutive records in 30 years. One more and we make history. New close for the s p 500 as well. All major averages ending higher. Welcome, everyone, im melissa francis. David it was 120 years, thats when the Dow Jones Industrial average became the dji a, and tomorrow we may break that record for 120 years. Well need lot more confetti