Transcripts For FBC Varney Company 20170411

With continental, and he has come back from illness. Everyone an outraged. When people have a camera, things like this go global. And why do they overbook so much. Confrontation with russia, secretary tillerson says, take sides. Youre with us or with iran and hezbollah. Hes going to moscow, but putin will not meet with him. Tax reform. No firm plan, no firm timetable and on the markets, no correction, but the trump rally is clearly on pause, saying it every day. Were all about politics and money and today well throw in passenger dragging. Varney company is about to begin. [yelling] oh my gosh no my god, what are you doing . No, this is wrong oh, my god, look at what you did to him . Stuart that video is all over social media after United Airline removed that passenger against his will to make room for crew on an overbooked flight. The premarket is down over 2 . Earlier, it was down 6 . Now, here is an excerpt from a leaked email from united ceo to employees, the quote. He, that is the passenger was approached a few more times after that, in order to gain his compliance to come off the aircraft. And each time, he refused and became more and more disruptive and belligerent. I think there are going to be consequences from this. I would suspect that the airlines are taking a look at overbooking, i think maybe the ceos job is threatened and airlines have become the most unpopular industry second only perhaps to lawyers and politicians. [laughte [laughter] can you guess . Let me introduce the guy and hes here. Wait a second, when i buy an airline ticket, i think im buying a contract. Yes, you are. Stuart and that contract says i can be removed from the flight, not once im on board, and i can be denied access. Once they put you in the seat you have an absolutright to stay there, as long as youre complying with the rules of civility which this fellow was, the argument that he was belligerent is belied by the tape which is being complaint. Hes screaming in pain because they struck him and beat him about the face and bleeding as they drag him out. So we have the violation of a contract, which obviously gives right to a lawsuit for whatever his damages are, we have not overbooking. We have the wish to replace fee paying passengers with nonpaying united employees who need to get from one city to the next, who very easily could have gotten to the next city on another flight or by another means. And then we have the gross overreaction by the police and the use of force in a case where its absolutely not indicated. The police do not exist to be the pawns of private people to resolve their disputes. Stuart okay. First of all, it was not the Chicago Police department. It was not their not sure what police it was. Stuart it was aviation, what have i got here . An Aviation Security officer and hes been placed on leave. And secondly, judge, i dont believe that the Aviation Security officer struck the passenger. He may have struck his head on the way out. But look at this from the passengers point of view for a second. If i board a ticket to get on a plane, i bought it, i paid for it, ive been through security and im sitting on that plane, theres no way on gods green earth that i should be asked to get up and leave. If they interrogate you while youre sitting there and have reason to believe that you pose a danger to the flight. How was this guy chosen, algorithm. Whatever human being was in that seat has to go. Im harsh on this police force, whatever it is, the federal force or a local force, because the police should not be in the business of using force, unless a crime is being committed and politely sitting on a seat where the airline says you dont belong and you have every right to be there is not a crime and does not call for use of force. Stuart im with you all the way. Im going to take 30 seconds, producer, please be aware. Ashley webster has a story of ashley happened to me in london to nashville. Got to chicago, changed planes, went to the ticket desk, got my boarding pass and my wife, we sat down, the plane pulled away from the gate, our luggage was loaded, full plane, suddenly the plane goes back in. Opens the door, someone calls out my name, my wifes name, they wanted us to leave. The family showed up at the last moment, one extra seat, when we left the family could get on. I refused i said no. Liz this was christmas eve. Ashley they said you have to leave now. I said no, it got heated and heated. And they said were going to call the marshal and i said, great, he can arrest you for did you go selling the fee. Money fee and hotel, christmas eve. My kids were waiting for it. The kicker our luggage went to nashville so we had no presents for the next day and the presents had gone. What airline . American airlines, i still, it bubbles to the surface again, this was in 2009. Thanks for the story, ashley. Ashley oh, my goodness. Stuart a three hour show for that. Lets move on to politics, serious stuff here, not that your story is not serious. Ashley no, no. Stuart this is politics, okay . Secretary of state tillerson travels to russia today. He will not meet with russias president Vladimir Putin. This is to some degree an escalation of the confrontation. What is tillerson telling the russians, liz. Liz hes saying its clear the reign of the assad family is coming to an end. We want to relieve the suffering of the syrian people. Russia can be a part of that or keep the alliance with syria and iran. That axis there. Hes saying that we believe that this will not serve russias longterm interest, if they do side with syria and iran, hes saying now that the distinction, whether russia was complicit or incompetent about syrias chemical weapons and the deal to get rid of them doesnt matter to the dead. He said we cannot let this happen again. Stuart strong statement. All right, theres another confrontation, this is with north korea, the u. S. Aircraft carrier headed to the korean peninsula. North korea says its ready for war, wait a second, ash, did they use that word . No, they didnt. And here is the statement with the carrier off the peninsula, we will hold the u. S. Wholy responsible for the coequences to be entailed by outrageous actions and comes after the u. S. Launched the air strikes on syria in turn sends a message to pyong yang. Stuart today at the white house, the president holds a meeting with leading ceos. The g. O. P. Remains divided on tax reform and a schedule for tax plan keeps being pushed back. James freeman, wall street journal editorial guy is with us this morning. I see this as bad news, flatout. No plan and no timetable. Bad news. Well, what i am concerned about, we see gary cohn kind of consolidating his power in the white house on economic policy. I dont know if he believes first and foremost that we need Economic Growth. And that should be the priority in tax reform. And you see it where the Donald Trump Campaign plan with tax cuts across the board. Dont worry whether it means washingtons accounting standards, weve got to grow the economy. Youre seeing now, an emerging message. Maybe we dont want to let rich people have tax cuts and a lot of concerns other than how do we grow the economy. I think this is going to work out, but theres cause for concern here. The cause for concern is that gary cohn is running the ship now. The tax reform ship. Gary cohn is a democrat actually and has no interest in i dont know about this, but i dont think hes got any interest in across the board tax cuts for individuals, High Net Worth and across the board tax cuts for companies. I see this muddled, messy and not good news. I still think its going to work out because you saw from candidate trump what he wants to do with the tax system. How he prioritizes growth. You see that on capitol hill. So, i think this can work out, but they really have to focus here on big reforms because if youre talking about that world leading corporate rate of 35 , bringing it down to the high 20s is not going to be a game changer. Thats well above the averages in europe and our major competitors. Youve got to get that corporate rate to 20 or more. And youve got to get personal income tax down as well and thats how you fire up the economy. It looks like a limited plan, and the Corporate Tax rate, thats very, very limited and thats not good, is it . It can be pro growth if youve got a competitive tax rate, but you need work on the individual side, too, you need incentives for them to work, save and invest just like the corporate code. Despite all of this, theres no correction of the trump rally, im shocked. Weve still got very low interest rates. The feds are talking about it, shrinking the portfolio, but this is a driver for stock prices. Theyre buying money very cheaply and can buy back their stock. I want to check for tesla. The news there, its official, its now more valuable company than both ford and General Motors, its up again this morning, 3. 13. He says that north korea is looking for trouble and will take them on with or without china. And churches that were bombed by terrorists on palm sunday, more varney after this. Yes . Please repeat the objective. Thrivent mutual funds. Managed by humans, not robots. Before investing, carefully read and consider fund objectives, risks, charges and expenses in the prospectus at thriventfunds. Com. Did you see it yesterday . Whole foods very nice pop yesterday, after activist investor took a stake. They want whole foods to sell itself. Dead flat after the pop yesterday. Now, pope francis is going to visit egypt this month and hes going to visit two churches which were bombed by islamic terrorists on palm sunday. Can you give me details. Liz the pope got word of the bombing during mass on sunday. He will be visiting the april 28th and 29th and invited by both the grand imam of cairo and the coptic pope. He has condemned the bombing. There is concern, of course, about the continued attacks on christians there and the murders of christians there. Terrorists have christians reportedly on a hit list and a target list. And the christians there apparently supported the overthrow. And theres a complicated issue and the pope is going to come out condemning it, whether he says more about improving security for christians in churches in cairo and the rest of egypt remains to be seen. Stuart hes going this month. Got it. Thank you, liz. Secretary of state tillerson will be in moscow tomorrow, but Vladimir Putin is not ing to meet with him. Do you support this is an ultimatum, essentially tillerson is giving an ultimatum to the russians, youre either with us, or with hezbollah or iran. Make your mind up, which is it . Confrontation. Tillerson is definitely getting a different reception than couple of years ago with the friendship award from putin. Im personally glad that tillerson is not getting the john kerry treatment from putin. Dont forget he was the last secretary of state putin met with and he went on meet the press and announced that 100 of all the chemical manufacturing facilities have been taken out. It was peace in our time. So im glad that Rex Tillerson is not getting the john kerry treatment from putin. Stuart it is a confrontation. Its escalation here. Theres no sign hes backing off tillerson especially. Do you agree with that. Absolutely. I think that putin and other thugs are beginning to find out that this is not a president who has a wish bone where his backbone ought to be. This is a president who leads and i think theyre finding out that real American Leadership is back on the world stage and, stuart, i think that Vladimir Putin just might be playing poker with the wrong guy in time. Stuart we shall see. But theres confrontation of another time. President trump tweeted this morning, its a warning to north korea. Here he is. North korea is looking for trouble. If china decides to help, that would be great. If not, we will solve the problem without them, usa. Now, thats a complete turn around, in our policy towards north korea and its another confrontation. How do you feel about that . This president has inherited the most complex National Security situation. Hes done so with a military at an alltime low in terms of readiness, army cut to preworld war ii levels. Make no mistakes. The president has to look at this and i put north korea at the top. The Weapons Program is a threat to t country. Were in the 59th minute of the 11th hour dealing th the north korean threat because prior administrations, both republican and democrat kicked the can down the road and this president has got to deal with it. Stuart if the North Koreans fire off more missiles headed out to sea, do you think that President Trump would shoot them down . Well, hes deployed that kind of capability and weve got a great Missile Defense capability in alaska and california. Weve go that capability. What im looking to is on saturday. Saturday marks the 101st im sorry, 105th anniversary of kim ilsungs birthday. Its usually on his birthday they fire off a missile and conduct a nuclear test. Look to see what he does on saturday and what the u. S. Response will be. Stuart what do you think . Do you think mr. Trump will shoot down a missile, do you . Well, what i like about this president it is do you think he will . I dont know, hes got a full range of options and the truth is there are no good options. Theres a reason theyre called the hermit nation. We have no idea what is going on there. And Rex Tillerson indicated that the chinese would help us. Where they can help us the most is getting good intelligence as to what is going on inside the hermit kingdom. Stuart thanks for joining us, sir. Apprecia it. More action at the white house today, presint trumps Holding Another Meeting with his ceo panel. Here is the question, are all of these meetings helping us get closer to a deal on tax cuts . Let us hope. Well be back. You always pay 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. Switch and you could save 509 on auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. All right. There will b in the white house today. President trump and i think its about 20 top level ceos. Come on in, Fox News Contributor steve cortez who was a member of the Trump Transition Team and the Trump Campaign and the rest of it. You, sir, are an insider. So im going to put it like this. President trumps running out of time. Get on with it what do you say . Stuart, i think that time is of the essence. You are correct, but i believe that hes going to get this done. This is holy week, stuart. I have faith in our president. I believe he is going to get this done. He has to. Stuart hold on a second. We hear that some of the shots being called inside the white house are being called by gary cohn. Gary cohn does not have much interest in across the board personal income tax cuts. Hes big on infrastructure and big on Corporate Tax cuts. Thats not going to do the job, steve. Stuart, i concur and by the way, thats not what President Trump ran on. He ran on across the board tax cuts. Tax cuts for everyone and particularly for middle income earners, people who havent had a pay raise yet in this century and partly because of onerous tax policy so i dont know that gary cohn is advocating against individual tax cuts, but if he is then im on the other side of that in the trump train. If President Trump doesnt get individual tax cuts done this year, that Trump Presidency is in real trouble. Im sorry, ive got to take a break because were coming back for the opening of the market. Steve stay there, were coming back are for the opening of the market. Were down 10 or 15 points, are you surprised 20,5, 600, its amazing, isnt it . Back in a moment. 30 seconds till the opening bell and we bring you this, thats an airport near moscow where secretary of state Rex Tillerson is expected to arrive within the hour. You maybe ought to see some smoke at the airport there. Were told theyre burning grass and debris around the perimeter. Nothing to worry about secretary of state tillerson arriving at that airport shortly. Okay. Three seconds, two seconds, boom were off and running on a tuesday morning. Where are we opening . Down 13 points, down 20 points. Thats the state of the market, a lot of red on the side there. Im sure the market is worried about a lack of timetable, lack of content for the tax reform. I think the market is getting nervous. Well ask the panelists about that, thats my judgment, the market is worried about the schedule for tax cut. Were barely holding at 20,600. Now, the stock of the morning, where the big story is, thats United Airlines. Its down 2 . A lomore on this coming, of course, because of the draggin incident with e united passenger in chicago sunday night. Were still talking about it, and there are serious consequences for the company and ceo. Take a look at the automakers. Because, teslas market value surpasses of that General Motors. Tesla close to its alltime high, worth more than gm and worth more than ford. Whole food, whoa, nice pop yesterday. Dead flat this morning to slightly higher. An activist partner, thats Janna Partners have taken a 9 stake. Whats going to happen to whole foods . Up as talks today. Tuesday morning, were off and running and down 25 points. Who is covering this . Ashley webster, elizabeth mcdonald. James freeman and mike murphy. Now, i say if we dont get a tax cut and a deal on tax cuts, a knowledge of a tax cut soon. I say weve got a correction coming. Mike murphy, are you going to take me on . I will take you on there. In a sense, we do need the tax cuts, we do need tax reform, stuart, its coming. Everyone knows its coming and just getting it out there. What do you mean, everyone knows its coming . Is there anything out there that doesnt think were not getting lower taxes . The timetable. I agree we need to see something, if needs to be output there and something concrete. More importantly, stuart, are earnings, corporate earnings, because if you get a timetable on a tax cut and earnings do not support the dow up near 21,000, i think thats where the correction comes. So we need corporate earnings along with the tax cut. Because the market has moved up in front of that. Stuart okay, steve cortez, my premise is no news on tax cuts. No tax cut this year, weve got a correction on the stock market. Stuart, i completely agree with your hypothetical. If we dont, i think that the republicans will lose the house in 2018 and that would hobble President Trump. I think there are dire consequences not to get broad deep tax relief passed this year. Stuart James Freeman covers politics across the board. Are we going to get a tax cut plan this year or are you worried about it . No, i think this will work out. Im a little concerned, i talk more focus on Economic Growth. Markets will have to reprice, if the trump promises dont end up being fulfilled. I think the jobs report shows we need a tax reform program. Stuart we need news of that, it was supposed to happen by easter, not going to happen. Then august, probably not going to happen. I cant see it as good news for stocks, i cant see it. Its a concern. Lets look on the bright side. We have at least some concensus that you need simplification, so thats good. I think you have i would like to see more, but you have certainly an understanding on the hill that you need Economic Growth inducing policy. You look at candidate trump as we discuss. He got the idea that you need a plan to grow the economy even if shortterm deficits were there, there are a lot of good reasons to think it works out, but the timetable is not what we like. Steve cortez. Stuart, ill give you another reason to believe. I believe in growth. Who cares what i believe. The markets believe in growth which is more important. Were just off an alltime high in most stocks and sectors. Ang i think the stock worse watching today is disney, it got an upgrade from Goldman Sachs, thats a great barometer of where the consumer is out there. Lumber places are finally back to where they were prehousing crash. So, markets believe in growth and that were going to get the tax reform proposals and faster Economic Growth. Id like to think the markets are right. People are putting their money where their mouth is and they believe in the agenda. Stuart all right. Steve cortez. The company of the news, United Airlines. Look at the stock price down just over two points. Weve all seen the video on the lefthand side of the screen. To say it went viral is the understatement of the decade. Its all over the place and everybody is talking about it and i say that theres going to be some changes at united because of it . The department of transportation is looking at the overbooking policies of United Airlines. Theres a report that the chinese social media platform has 130 million views of the video. Im not sure if thats correct. Wow, this is a really bad pr black eye for ual. Stuart i think that the ceos job, oscar munoz is in trouble. I completely agree. Not only the video as liz pointed out, but the way he handled it and supported the employs who dragged the passenger off the plane. Theres a way to handle it, but i think that the flying public is outraged about this and other things when you fly. Ashley to lizs point theyve got to address the overbooking issue. All the airlines do it, many people got bumped. I know they try to make up for money for empty seats, but im sorry, that situation on that video. Ive been in that situation and nearly been dragged off. Its outrageous and people dont enjoy flying these days, its a pain in the neck. Liz the stunning statistic is 430,000 people are overbooked every year on u. S. Airlines. Stuart on united. Liz on united. Thats a stunning statistic. Stuart 430,000 overbookings on united. Ashley . Ashley they sell the same seat twice. Stuart some took the money and another flight. 40,000 removed from the flight. Doesnt get on line. They were involuntarily taken away. How about that . You have to i guess maybe this is the Silver Lining for consumers, you have to believe that those offers are going to rise now, whether its cash money or whether its for future flights in return for getting off the airplane. Liz more for their reputation. The cost of doing it the hard way, i think youre going to see better offers to flyers on overbooked flights. Stuart they could have given this gentleman, 10,000 and a limo chauffeured to his destination and it would have been 20 times cheaper. Apparently hes a grandfather and 68 years old. The public hant happy flying and that brings us back to Startup Companies that disrupt the industry. The way you fly now is as bad or worse than 40 or 50 years ago. There are going to be Startup Companies giving you a better experience in the near future. Stuart do you know of any . I do, wheels up. Theyre advertising a lot. Right now its private air travel so that may not be for everybody, but theyre trying to make it open to more of the public and doing a great job of it and give you great service. Stuart look for the disrupters right there. Now, i want to talk about tesla. The value of that company now surpasses the value of General Motors and the value of the ford motor company. Mike, fast, would you buy tesla wherever it is, 312. I wouldnt by tesla, there will be a negative report, and a putback. If you want to own it, own it at a pullback not the alltime high. Stuart steve cortez, it shows you how Much Technology has taken over Old Industrial kms. Its incredible, stunning, that did it could be bigger than the massive old line companies. Im not interested in buying, one of the reasons im not, i dont like the models the u. S. Taxpayers are subsidizing the cars primarily for wealthy people. I think its a terrible model, im not sure its sustainable. I wouldnt bet against tesla. Id stand by the said lines, elon musk is a winner and a visionary and may figure out something to do with batteries, not so much outhe cars, but batteries that will be transformational and i hope for americas sake he does. Hes an amazing immigrant Success Story just like you are, stuart. Stuart i happen to get on the air and do correction here, i said it was 430,000 people were taken off not taken off. Liz overbooked last year. Stuart it was all airlines. Liz correct. Stuart not just united. All airlines 430,000. Lets be fair to the airlines. I guess we should. Were down 22 points for the dow industrials, that puts us back to 20,636. Lefthand side of the screen thats secretary of state tillersons plane just arrived at the airport in moscow. They were burning debris and grass on the side of the airport. Weve put it on the air and showed it to you. Not much to say about the burning grass, but a lot to say about tillerson arriving in moscow. I sense confrontation and wondering if the price of gold is going up. Right now its at 12. Ashley 66. Stuart confrontation . Im not sure youd confrontation. Rex tillerson has a lot of experience dealing with putin, i think hes going to be a tough, but careful negotiator, i would guess and i think back in the u. S. Maybe some people would like to hear what the plan is beyond last weeks strike. Stuart im interested that youve got, im going to call it confrontation with the russians. Tillerson has given them an ultimatum. Youre with us or with the iranians in hezbollah. Youve got a confrontation with north korea and Newt Gingrich made a good point on Sean Hannitys show. There was a lot of sabre rattling during the cold war, never turned into a firing, no shots were fired in the cold war between the russia and the u. S. Despite the sabre rattling. Stuart now were the 20,600. Mike murphy, im going to ask you this. Next big move for the dow is down. Thats a question. I disagree. I think the next move the earnings will support the market higher. I think that people are watching in syria and democrats and republicans like the fact that the United States is standing up for ourselves. Standing up for our interests globally and tillerson going over to russia i think is a positive for us, because hes facing that bully facetoface that should have been done a long time ago and now were doing it. I think its its an overall if profit reports show up, a 10 gain from last year. Cancels out from moscow, north korea. If he gets the news on tax reform. It goes up. New highs in the near future. Well, well, well, how to turn things around. Were down 53 points, ladies and gentlemen, thank you, steve, james, mike. We thank you for being here this morning. Were down 51 points on the dow right at 20,600 as Rex Tillerson secretary of state arrives in moscow. You will not, you will not be able to take a phone call on a plane anytime soon. The new chair of the fcc says hes not going to lift the ban on using your cell phone while you fly. Full story coming up for you. You might like it. The republicans divided on the tax cut issue. Here is question. If they cant make a deal on health care, will they be able to come to an agreement soon on tax reform . Well be back. Secretary of state Rex Tillerson has arrived in moscow. Hes getting off the plane and it just arrived. s going to have a confrontation with the russians. Hes said to putin who will not meet with him, saying hey, youre with us or with iran and hezbollah. Im calling it a confrontation, a head to head, put it like that. The big board shows the low of the day, the dow is off 64 points. Weve dropped below 26,500. The chair of the fcc says no way for phone calls on planes. I personally think this is a great idea as Rex Tillerson comes down the gangway there. Ashley the trade i sound curmudgeonly, but no one wants someone yakking away on a cell phone at 30,000 feet. And the chairman says, i do not believe moving forward with this plan, however, the department of trance sayings thats fcc doesnt have the jurisdiction, were the ones who have jurisdiction and were exploring that option, so not the end of the story yet. Oh. Liz somebody made the point, if you didnt have phones you wouldnt be able to take that image of the United Airlines guy dragged off. You cant make the calls. Liz good point. Stuart and what a stake in public behavior and consideration for those around you. Ashley lack thereof. Stuart public behavior when youre crammed into an airline feet and thats not the way we want to fly and i dont want to hear somebody talking on the phone about heaven knows what. Liz thats why i wear ear plugs, even in the airport. Stuart i noticed that. Ashley what about the screaming baby . Another story. Stuart if its my screaming baby, its okay. On the left side of the screen there, Rex Tillerson just arrived in moscow, hes not going to meet with putin. Or i should say that putin will not meet with Rex Tillerson. Hes laid down the law and told the russians in no uncertain terms, look, take sides, youre either with us, america, and you are with them, the iranians and hezbollah. Liz he said its clear the reign of the assad family has come to an end. It doesnt, you know, he says we cannot let this happen again, the slaughter of innocent people in syria has got to stop. Stuart okay, were now just off the low of the day for the dow industrials. Were off 49 points, we had been down 60, were right at 20,600. No firm plan on taxes. No firm timetable. Come on in, dan with Heritage Action for america. Dan . Im getting worried here because if we dont get tax cuts for individuals this year, this Trump Presidency goes away. I mean, its finished. What say you know . Yeah, i mean, President Trump ran on an ambitious agenda and i think we need tax cuts and we also need health care reform. And i think that vicepresident pence has it write. Repeal obamacare and give americans the worldclass health care and once obamacare is gone, well have across the board tax cuts. That sounds like a good plan to me and weve got to get the people in washington to deliver on it. Stuart you couldnt get health care, 80 , but couldnt get the last, and that went off the table. I could clearly imagine a situation where youve got an a similar situation with tax reform. You dont get everything you want so youre voted down and the Trump Presidency ends. Assure me, please, thats not going to happen. Thats not going to happen. I think you need to take a step back and understand whats going ton with health care. Best way to do that look at iowa, 52 for barack obama in 2012, gave donald trump 51 the past year. Over the past couple of weeks, the people of iowa found out theyre losing blue cross and aetna out of the marketplace. 51,000 people had Health Insurance through those two companies. Thats what obamacare is doing across the country. We have to get this right and theres no confidence by anyone that the plan that paul ryan put forward a few weeks ago, would have changed that situation. If we want the president to have a successful presidency and be reelected in 2020. That will build momentum to tax reformments are we just going to get tax reform as in a lower Corporate Tax rate . Is that what were going to end up with . I certainly hope not. I think we node across the board reform of the tax code, its messed up and complicated and hurting growth. The individual side is hurting families and Small Business owners across the country. We need to be able to do both of this. But if we get health care right that will provide a sense of confidence from the American People and from within the American Party to get tax reform, a complicated issue. Are you in favor of or opposed to the border adjustment tax . Right now the border adjustment tax is one of the biggest things standing in the way of tax reform. I dont think you could find too many republicans that went out there and ran on it. If we want to see tax reform done and sticks condition the calend calendar, its tough with the border in there. Stuart you want Corporate Tax down and i would like to see across the board tax cuts and the federal government takes too much of our money. We could do less in washington ap let the private sector take up there. Stuart lets see the plan, wed love to see that, dan holla, thank you for joining us, appreciate it. The dow industrial is close to the low of the day. Some of the stocks are in the green and the rest are down. And the immigration plan seems to be work. Theyve dropped the number of people crossing the border. We have the numbers for you next. So for once ive got plenty of time. Whats going on . So those financial regulations being talked about . They could affect your accounts, so lets get together and talk, and make sure everythings clear. Thanks. Yeah. That would be great. Weve grown to over 900 billn in assets under. By being proactive, not reactive. Its how edward jones makes sense of investing. Arbreak through your allergies. Try new Flonase Sensimist instead of allergy pills. Its more complete allergy relief in a gentle mist you may not even notice. Using unique mistpro technology, new Flonase Sensimist delivers a gentle mist to help block six key inflammatory substances that cause your symptoms. Most allergy pills only block one. And six is greater than one. Break through your allergies. New Flonase Sensimist the rio grande valley. The immigration lower. Ashley a 64 decrease. Less than 12,000 people caught in the month of march. Number of families and unaccompanied miners caught in march was 37 a day. It was 291 a day a year ago. Simply put, Border Agents said were not doing anything different other than enforcing the rules on the book. Would you risk a dangerous 1,000 mile journey, pay a smuggler 8,000 and still be unsure youll get to stay in the United States . Some other people getting the message. The immigration raids, the policies, the rhetoric from the Trump Administration is having an impact. Stuart i guess we could call that a success of the Trump Administration thus far. Well do that. Coming up my take on the United Airlines dragging incident. Airlines, surely, one of, if not the most popular industry. This video does not help. Hour two, three minutes away. At crowne plaza we know Business Travel isnt just business. Theres this. Y not . Y not . Your hotel should make it easy to do all the things you do. Which is what we do. Crowne plaza. Were all business, mostly. Stuart we can all relate to the passengerdragging incident at you United Airlines. Most of us have been on overbooked flights. Last year the airlines had to persuade 430,000 passengers to take another flight. They were overbooked. But the video of that man being dragged off because he would not give up the seat that he had bought and paid for really touched a nerve. Of course it did. It could have been any one of us. Lets face it, flying is no fun these days. Take your shoes off to go through security. Fight for overhead luggage space. Buy food on board. Buy a blanket, a pillow, earphones, nothing is free. You paid an arm and a leg for a ticket in the first place. This may be one of those moments when a video has consequences. First, overbooking. Airlines will have to ta look at that policy. You know it, could have been far cheaper to offer this guy 10,000 bucks to get off and give him a shover driven limo where he wants to go. The ceos job appears to be at risk. Oscar munoz has a heart transplant. Turned into a nasty leadership flight. First legging incident and now dragging incident. Accountability at the very top . Third, airlines are surely one of the most popular unpopular industries. That is not good when you rely on customer goodwill. Here is the bottom line. In a age where cameras are everywhere, you can not bury Customer Service problems. Somebody will take a picture. The second hour of Varney Company is about to begin. Stuart it is happening this hour, the president meets with more than 20 ceos. These are Business Leaders. Theyre back at the white house. They will talk tax cuts and infrastructure. We may get headlines from the meeting. You will get them when we get those headlines. Check the big board when we come back. We were down 35 points. Ha been down 65. How about tesla . That is interesting. The market value of tesla surpasses the market value of General Motors. Who would have thought. Starbucks is going to rolling out new lunch offerings at more than 100 chicago locations. Grabngo sandwiches and salads on offer. No impact on the stock. Look at United Airlines. We have impact there. Now it is getting worse. Now the stock is down nearly 4 . This is all about the dragging episode. We have a comment, actually its a quote from an internal memo written by the ceo of united, oscar munoz. Here it is. He was approached, that the passenger, was approach ad few more times after that in order to gain his compliance to come off the aircraft. Each time he refused and became more and more disruptive and belligerent. Disruptive and belligerent, that behavior was not seen in the video shared by tens of millions of people around the world. Joining us liz peek, the fiscal times columnist. This is one of those rare occasions when a video creates real change at a company at an industry. Lets face it. There is no love lost between passengers and the airlines. All of us have been in the situation where youre furious about delays that have no seeming relevance or whatever. There are people bumped off airplanes because the airplanes made a mistake. Not because the passengers has done something wrong, but this is really a problem for United Airlines, particularly weirdly, in china. This has been trending on wbao for a day since it happened. 270 million hits on wabo and comments bawls the people think it was an antichinese, fellow looks to be asian. People are suing that as discriminatory. That is huge market for United Airlines. That is something they are advertisinthey have mo direct flights to china than any other airline, et cetera. This is really not stopping with the United States. It is not stopping with passenger outrage. This could be a real economic problem. Stuart do you think that accountability should go right to the top, to the ceo put out that statement. He is the top guy. Yes. Stuart should he lose his job . I dont know if he should loose his job, but face it, it was unbelievably tineared response. I dont know if he had seen the video and he talked about reaccommodating the passenger, i think that was his word, i mean, really, that is a Public Relations disaster. By the way, maybe shouldnt lose his job, remember jetblue had a similar situation several years ago, kept people waiting on a tarmac for four hours, et cetera. They engaged a very aggressive Public Relations effort. They did correct their problem. This may be worse than that i dont know that he can really bounce back from this. This is horrifying. Stuart this is on sunday night this occurred. The video came out sunday night. It is tuesday midmorning and were talking about it. Ashley still talking about it. Stuart leading show each hour. Extraordinary thing. Ashley horrifying. Stuart liz, one more for you, gop in my opinion totally divided on tax reform. Press Secretary Sean Spicer would not commit to an august deadline. Listen to this. What youre seeing is us going through this process. His economic team, everyone from secretary mnuchin, secretary ross, to gary cohn, and others, sitting down internally beginning that process of meeting with groups that have been advocating for tax reform. Not getting pushed. I think, obviously that would still be a great opportunity before they leave for august recess. Well make sure we do this right. Stuart i didnt get much clarity, frankly. I did not get clarity on when and if and whats going to be in tax reform. Liz, i think this is shaping up as one huge negative for the stock market. If we thought health care was a mess, this could be even worse and heres the reason why. The white house, there is no single voice on basically how to get tax reform done. Remember, theyre still trying to do this through reconciliation. Yohave to have aalancing mechanism to all the tax cuts. The border adjustment tax is not popular widely, but the white house people, there is nobody there with one exception who has any tax policy background i am told. And there is like 100 different opinions how to create the balance needed to go through reconciliation. So, when ryan said last week, or the week before, that the white house and senate and house were on really separate pages, he was totally telling the truth. And now, i had a long talk with someone over weekend involved in this. Sounds to me were lucky if it is this year. Stuart lucky if this year . Sorry. I know that is incredibly dispointing. I think it is disappointing but there is a chance that they will revise a little bit the goalposts on this, but it is will be very tricky. Liz they were trying to get it through a simple vote with just republicans saying, tax reform, obamacare reform, avoid democrats 60 filibuster level, as liz points out through budget reconciliation. You have to raise money, make it deficit neutral. That is the problem. The other issue that people arent talking about, the failure of the Health Care Act basically, that was a trillion dollar tax cut over 10 years. That was the amount of money that was going to be saved on taxes over 10 years if they took away all the obamacare fees and taxes. That is a huge number. Now they dont have it. Stuart have to have it. Thats right. Stuart i want to bring in congressman marcia blackburn, republican from tennessee. Marcia, were in despair. I know youre laughing, but you know the Republican Party can not many come together and get this thing done. The time frame keeps backing up and backing up and backing up. I sense enormous frustration from voters and investors. Well, i think it is fair to say that people are frustrated with us right now. And, actually, i can understand why they are. They are wanting to see action. Theyre wanting to see movement. Im continuing to talk with my colleagues every single day, and yes, i do believe that we will arrive at consensus on health care, and just as liz said, it is a trillion dollar tax cut that is embedded in rolling back the Affordable Care act plans. And there is also a savings to medicaid and ability to block grant medicaid back to the states. Stuart marcia, i do hate to interrupt you, but weve been through this countless times. Yes, we have. We have. Stuart and youre still no closer to a deal on health care and the deal on tax reform plan gets, keeps on getting put off. Liz peek right here talked to somebody involved in all this over the weekend, well be lucky if it is this year. Lucky if it is this year . By the end of the year. Stuart lucky if it is this year. This is the essence of Trump Presidency. I will tell you this. I know that congress functions when they have a deadline in front of them, and yes, they missed the firstne on Health Reform but i do believe youre going to see us do this when we go back. People know it was a promise made. It needs to be a promise kept. You will see the pace pick up as we move forward to tax reform. Stuart hold on, marcia. Sure. Stuart when you go back to congress after the easter recess, youre going to have something on health care for us all . I think that you will see something because there are individuals continuing to work on this every day. Even though were working in our districts, stuart, every day, there are members talking, we are discussing different components and i think you will see something put forward. Stuart then, after that, after the summer recess, then we get to tax reform, maybe by the fall, is that the timetable . I would hope that we will begin to have some discussion on tax reform. Individuals are very anxious to see the marginal rates lowered. That deals with all your passthrough entities and sub h is, llcs. I am asked every single day when there will be relieve on that and decreased regulatory relief. Stuart i hate to press, people dont want a lot more talking and talking and talking. Im with you 100 on that. They are ready for action. Stuart marcia blackburn, come on this program, say we got it. Here it is. Thats it. That is exactly what theyre looking for. Youre exactly right. And, i think that my colleagues will step up, that we will have that agreement, that you will see health care done, and then tax reform, infrastructure, broadband expansion are going to be following in the next year, 18 months. Stuart well hold you to it. Well hold you to it. I hope you do. I hope everyone holds the republicans in the house. Yes, that is exactly right. Stuart we will. Marcia blackburn, as always, thank you very much. Good to see you, thanks. Stuart all right. Terror in egypt. Weve been reporting it. Isis bombs two churches and did it on palm sunday. The pope as in pope francis is headed to egypt later this month. Well tell you all about that. Another day, another democrat Conspiracy Theory. Congressman claims the airstrikes against syria were all a ruse to show the administration is not colluding with russia. You got to hear this. It is the second hour of Varney Company. Stuart down 50 points on the dow, off the lows of the day, holding at 20,600 for now. I will say the trump rally is on pause and im going to say that the market is not expecting that much growth in the economy. That is why the yield on the 10year treasury is down to 2. 32 . Now this. Pope francis will take a trip to egypt this month despite recent deadly isis bombings at two coptic churches in egypt. Robert jeffress, First Baptist church of dallas, Fox News Contributor. What gets me, father, we have not seen real coverage of this utter outrage on palm sunday. That is what gets me. It is not politically correct that radical islam is in a jihad against christians t has always been that way. Persecution has been part of the christian story since the beginning of time. The good thing, it is ironic, when christianity is pressed, it expands. That is the good news that in spite of all of this, the message of easter is god can take the worst things, whether it is the killing of coptic christians, or the crucifix of the christ, he can take those horrible things and use them, not for immediate good but for ultimate good. Stuart what should we christians in america be doing for our brothers and sisters who are getting slaughtered in north africa and the middle east . Look, i think it is not a womancomplexity of what to do, i think we have a mt. Who is willing to act decisively. Whatever you think about the syrian attacks, getting involved in that, i think the president sent notice to isis he will not put up with this stuff. I think we must take Decisive Action when we can. Stuart can we get action on refugees who are christians who have been denied access to america. Yes. Stuart muslim refugees come by the tens of thousands and christianss do not. That situation is not being rectified. I want to know why. I can tell you from personal conversations with the president just a few months ago he is very moved and troubled by the plight of syrian refugees, but, stuart, he has to it balance his moral responsibility, like he did the other night launching these missile attacks, he has to balance that with his constitutional responsibility to protect this country. Until we can vet these refugees better he can not afford to put americans at risk. There are things he can do, like bombing assad, like helping to provide safe zones but he can not constitutionally endanger the American People. Stuart how does a christian justify the use of tomahawk missiles, albeit against a military airfield, but it is violence . It is almost war. It is an act of aggression. How does a christian rationalize that . By turning to the bible. The bible gives government the authority to do that. Romans 13 says god instituted government to be quote, avenger of those who practice evil, including giving government the right to take life. President trump was fulfilling his goardordained mandate to do that. Stuart the alternative is, turn the other cheek . That is for individual christians. When you hurt me, i am to forgive you but government has never been called on to turn the other cheek or to forgive it is to be an after venger evillers. Stuart render under to caesar and taxation. Tha stuart it is coming up april 15th. Do you have any comment on render under to caesar. We have to obey government. Romans 13 says we are to obey government. When there is conflict between what government demands and god demands there is no choice for a christian. We would rather obey god than men, peter said. Stuart why are you in new york today . To see you, stuart. It is holy week and it wouldnt be holy if i couldnt get to see Stuart Varney. Stuart i cant let it go out on that. That is true. Stuart reverend jeff of jeffress, thanks for joining us. Thank you. Stuart at the auto show ford will debut a car. Jeff flock is in the car, calling itzilla. Pull it over, varney. Get out of the minivan. So youre having a party . How nice. Ill be right there. And the butchery begins. What am i gonna wear . This party is super fancy. Lets go. Im ready. Are you my uber . [ horn honks ] hold on. Dont wait for watchathon week to return. [ doorbell rings ] whos that . Show me netflix. Sign up for netflix on x1 today and keep watching all year long. Is. Stuart look at this. Retail, online selling operation, online sales. Retailmenot. They put coupon website i should say. They have announced a deal to sell themselves. Thats why the stock is up nearly 50 . Coupon discount website, retailmenot. How about this . Nissan unveiling a near series of cop car. We have the jeff flock from central park here in new york city. Jeff, you will show us the car, i got that but tell me why it is a big deal . Just because it is nissan and the police force is going to buy it and a hybrid, thats it . Reporter well, no, this is not a hybrid. Ford is coming up with a hybrid policear that ts 38 miles to the gallon. This one, if you want to catch people, i dont think you get a hybrid, right . You get one with all bells and whistles. This is nissan gtr. Show you what it can do. We just lost you. Okay. This thing will go, as fast as a race car. Okay. Look at that. How about that, huh . Also i can also, hey, you in the american any van, varney, youre going too slow. Pull over. [laughter]. Stuart so, how much . Reporter no price on it yet. No price on it yet. Theyre not sure they will go into the police car business, but they this, this is what they can do, if youre going to have a police car, you should have it go pretty fast, because there is a lot of fast cars out on the road. There you go. Stuart by the way, im pointing out it is only a twodoor. How do you get the perp in the back . Lift the seat and mind your head . Reporter this just catches them. It doesnt transport them. There you go. Stuart weve seen it. Well take it. Thanks very much, jeff. Well be back to you later, driving around in circles in central park, new york. How about this . More news from the airlines, the fcc says no phone calls on planes. But that is not the end of the story, is it, liz . Liz the department of transportation, fcc may not authority here. D. O. T. , we could weigh . They were moving ahead to allow voice calls. Under the obama adminiration they put out this idea, yes make phone calls on planes. Fcc says, no, we dont want it. You can text and look up internet on your phone call, just no voice calls. Fcc says no, d. O. T. Says yes. Delta, jetblue says we dont want phone calls. An knows passengers. Stuart thank you. I dont want it. I can wait. I dont want anybody talking. Liz right. Stuart democrats have a pretty wild imagination. One congressman inventing a theory about why President Trump really bombed syria. You got to hear this. United airlines under fire today after forcibly removing rg that passenger from an overbooked plane. Tom sullivan says the screaming is just too much. I will challenge him next. Welcome to holiday inn thank you wait, i have something for you making every stay a special stay. Holiday inn, smiles ahead. Whether for big meetings or little getaways, member always save more at holidayinn. Com stuart now not at the session lows of the day but were down 50, hanging there at 20,600. Lets check the big names, the fabulous five we call them, bigname technology stocks. All of them are down this morning. Not much. But in retreat from the recent record highs. Secretary of state Rex Tillerson arrived in moskow. Came in next hour. President putin will not meet with him. Hear what tillerson said ahead of the trip. Roll tape. I hope the russian government concludes they have aligned themselves with a unreliable partner in bashar assad. Now assad has made the russians looking not so good under these circumstances. It is worthying about, russia has really aligned itself with the the as regime, iranians and hezbollah. Is that a longterm alliance that serves russias interests . Or, would russia prefer to realign with the United States, with other western countries and middle east countries seeking to resolve the Syrian Crisis . Stuart well senator scott brown joins us now. Secretary of state tillerson is taking it right to the russians, saying look, are you with us or are you with them as in iran and hezbollah . That is a confrontation, scott. Well, certainly. If you remember when the secretary was being, going through the nomination process everyone said, oh, he is just a businessman. You know he has ties to russia. We really cant trust him. We dont know what he is going to do. We find out he is a man of few words, but when he actually speaks he makes complete and total sense and sends a direct and powerful message not only to russia but the rest of the world. I think obviously russia needs to reevaluate itself dealing with assad because assad will be a war criminal. Doubt everything he has been doin he wille tried as a war criminal ultimately. Does russia want to be associated with that . That is what it is going to come down to. Stuart a total 180 from the Foreign Policy of president obama, especially with russia, certainly with china and north korea. Are you comfortable with this, because its a series of confrontations . Listen, of course. There is going to be confrontation before you can have normalcy. Dont forget russias economy is very, very fragile right now. Theyre teetering, the ruble is weak and the stock market is puffed up, et cetera. That is where the real power is. Im hopeful that the big people, the real people will come to the table and sit down once they get through this kind of chestpumping approach. They will work it out. I think having a relationship with russia is in everybodys interest. Stuart i want you to check this out. This is a new Conspiracy Theory coming from the left. The theory is President Trump struck syria to show he is not close with putin. Just listen to this. Increasing the size of our nuclear arsenal, deregulating energy sector, backing Keystone Pipeline these are all things russians hate and for good reason yet youre saying still, there is no evidence that trump is not in the pocket of putin . Even when he bombs a country where Russian Troops are stationed now, propping up the regime of bashar alassad, that is not enough evidence for you that he is not putins puppet. Right. And called the russians to make sure they got their troops out of the w. Should he not have done that. Im on Armed Services committee, didnt call us before doing that but felt it fine to call the russians. Hard to say he wasnt concerned about the Russian Troops. Stuart would you like to respond to that, scott brown . Yeah. Invasion of the body snatchers is actually really happened too. Aliens actually come and take over peoples bodies this guy is so completely off the wall. He is a member of the Armed Services committee . His constituents better be very concerned. Obviously making the call to the russians was brilliant dip can low mat tick relations, we were going after the regime of assad terrorizing its own citizens. It makes complete and total sense. By the way russia, well hit the guys 45 minutes to an hour. Get your troops out of there it was that dick, thoughtful, methodical strike and, so he is full of it. I will move on. President trump tweeting a warning to north korea. Here it is. North korea is looking for trouble. If china decides to help, that would be great, we will solve the problem without them, usa. Now, senator, on saturday, there is an important anniversary coming up in north korea, and they often fire off missiles, or occasionally a nuke, just to see, get some reaction, do you think that the President Trump would shoot down one of those missiles if indeed one was sent up . I dont see why not. Everybody in that region does not want a nuclearized north korea. China especially. And they have to step up. If they dont step up, quite frankly the rest of the world needs to step up because, north korea continuing not only to abuse its citizens, taking money that can be used to feed them, using it for militarization and throw and lob missiles at will to just terrorize that part of the world. That is completely unacceptable. Im hopeful because we should have a sim by on i can relationship and positive relationship with china they will step up and put pressure on north korea. Cut the crap. Be a citizen of the world. Stuart its a whole new world, that is a fact. Scott brown, thanks very much for joining us. Appreciate it. Stuart, thank you. Stuart low of the day, just a couple steps downwards this morning. Now were down 102 points, 20,500 is where we are. I dont know why we suddenly dropped. I think it may have something to do with tax cuts, tax reform, pushing back the schedule. That would be my reading at this point but were down 100 points as we speak. Were looking for the reason of the day. I think i found it with the tax cut deal. I want to get back to the outrage of United Airlines. You know the dragging incident. Im sure everybody has seen that video by now. Tom sullivan is with us. He is a licensed pilot. And he will do something unusual, different, not exactly dangerous, but he will do it. Yes. Stuart you are going to defend United Airlines. Yes, i am. The only person in the planet willing o that at this point. Stuart go. Two things. One is, this isnt United Airlines. It is skywest who is the contract carrier that they have fly united, all these regional jets. Stuart okay. Secondly is, the plane was two hours late getting out of there, finally in chicago. How much of that twohour delay was them negotiating with this guy . They got the manager to come on board, say, please leave. No. So they finally got a Police Officer to come on or Security Officer to come on, please leave. Cond Police Officer, secuy officer comes on, please leave. And at some point when you have, on your Stuart Varney coffee shop door, no shoes, no shirt, no service, you can throw somebody out. You dont have to do business with them. Under the contract of carriage under transportation law, we have no rights. The airline can say we dont want to fly you, get off. Stuart and look what they have done. That is a pr nightmare. Its a pr nightmare. Stuart the job of the ceo let me ask you something. Let me ask you something. First of all, ashley was telling his story how he ashley yeah. You at least got up and left. That is what most normal people do. The other thing, if im a Police Officer and grab your harm, say come on. Stuart yeah. Were done talking now. Were done talking. This is, do you scream like a banshee . Something is wrong with this guy. Either he has a medical condition or he was ashley i felt his pain. I was pretty close to standing my ground. You were mad but scream like somebody sticking a knife in you . Ashley no, up i was close to it. Stuart okay. Do you think the overbooking policy, whatever that policy is on the part of United Airlines, do you think that overbooking policy should be reviewed . No. Stuart not at all. Ill tell you why. Because United Airlines flew 86 Million People last year. They involuntarily 3400 people. That is. 00004 . Stuart so. So youre running a business. You want to fill the plane. They know that this particular flight, four people dont show. This particular flight normally three people dont show. So they sell three or four more seats they normally would. Stuart dont you think you are in the Public Service business you better not disserve the public. You cant make everybody happy all time. If you displease. 0004 , stuart,. 0004 of your audience is unhappy. Stuart frequently. Okay. So no change at all . Its a pr disaster. Live wit. Get over it and carry on . Yes. Nobody likes the airlines. Ashley drag him out of here. Yeah. And American Airlines. Ashley yes, thank you. Stuart interesting perspective. Youre totally wrong from most of our viewers. Im glad you came on the show. Im not leaving. Staying right here. Stuart no, were dragging you out. [laughter] one quick second. Werent you once a Police Officer in california . I was not only a Police Officer but i was also one of the first air marshals. Stuart were you really . Yeah. Liz you would have been dragging people off the plane . I would have been the dragger. Ashley i see the biased. Stuart he would have been the dragee. This is fascinating. Look, stay there for just a second. No, im leaving. Stuart im dragging you out later. Retail ice age. That is our story. Everybody is picking up on it. More retailers are closing their doors. I want names and numbers, lizzie. Liz surprisingly foot locker, kohls, cvs. Double the pace of store closings versus last year. Could be more than 8600 stores will shut this year. According to Credit Suisse projections. So it is worse than what we saw at the height of the financial crisis in 2008. What is happening to these Shopping Malls zombies . Theyre being turned into medical clinics, office space. Google bought a Shopping Mall in mountainview to move its offices into, a dead Shopping Mall. Google did that. High schools, hockey rinks. You name it the hopping mall bubble has burst. Stuart that is the bottom line, the Shopping Mall bubble has burst. Ghost malls, here we come. President trump is about to meet with ceos to discuss his trillion dollar infrastructure plan. Maybe tax cuts as well. Well head to the white house for details shortly. Angry snow flakes shut down war on caps author Heather Macdonalds speech in claremont college, california. She is here. She will tell us really happened. Well drag sullivan out. The fine lady, heather macdonald. [laughter] [. Ah yes . Please repeat the objective. Thrivent mutual funds. Managed by humans, not robots. 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Roll tap i do think time is of the essence, you are correct, but i also believe he is going to get this done. This is holy week, stuart. Well, i have faith in our president. I believe he is going to get this done. Stuart hold on a second. Hold on a second. We hear some of the shots being called inside the white house are being called by gary cohn. Gary cohn does not have much interest in across the board personal income tax cuts. He is big on infrastructure and big on Corporate Tax cuts. That is not going to do the job, steve. Stuart, i concur. By the way that is not what President Trump ran on. He ran on across the board tax cuts. Stuart yes. Ies list, we believe there are certain things you can count on, like what goes down doesnt always come back up. [ toilet flushes ] so when you need a plumber, you can count on us to help you find the right person for the job. Discover all the ways we can help at angies list. Because your home is where our heart is. Stuart at this moment, President Trump he is about to meet with 20 ceos from all across the country. They will talk about the trillion dollar infrastructure plan, and we hope, tax reform and tax cuts. Well bring you the developments as they occur. Now this. Really is hard to believe what is going on our College Campuses these days. Our next guest tried to speak at a college in california. Her speech was disrupted and blocked by violent leftwing protesters. Heather macdonald is with us this morning. She is with the manhattan institute. She is the lady who tried to speak. Author of the book, the war on cops. Welcome to the program. Great to have you back. You are welcome on Varney Company. I can speak. Im waiting for cameramen to walk off campus in protest. Theyre all here. Unusual experience. Stuart tell me what you were going to say in california but you were blocked from saying it. I was going to say there is no epdemmic of raciallybiased police shootings. The black lives matter narrative is completely false. There are thousands of lawabiding residents of minority communities who are desperate for more Police Protection and support the police 100 . Stuart this was at Claremont Mckenna college in Southern California . Outside of the los angeles. Stuart so you got into the room, you were ready to speak, what happened . No, i barely got into the room. 300 people, students from claremont and neighboring colleges blocked access to the hall so students couldnt get in. I had to enter through a sect entrance and spoke to a empty hall. They live streamed it. As i was speaking, students were pounding on the glass windows, shouting. The police shut it down eventually because they were so worried about the potential for violence. Stuart were there any arrests . Of course not. Stuart no arrests . No, today, the police are completely emasculated. Of course on College Campuses, we have now a consumerist ethos. Nobody wants to upset the little darlings paying 60,000 a year in tuition. So there is a high bar before you arrest anybody. Of course if youre falsely accused campus rape that is a different matter. For everything else, blocking, it is one thing to silence me, and again i was able to deliver my speech live streamed, but they, these campus thugs prevented their fellow students from engaging with an unorthodox viewpoint. Stuart i just get the impression that things are getting worse. That the whole idea of free speech on a College Campus is dead and gone and buried, if you have an opinion that is disliked by the left. Am i right . Youre absolutely right. This he grows out of a very specific ideology of victimhood. The colleges today are basically in the business of creating angry victims with chips on their shoulder, whether females, minorities, gender, trans people, and as a result of that victim ideology they have been taught to believe that speech is violence against them. Stuart taught to believe. Are you blaming faculty for part of this problem . Absolutely. This is a pure academic ideology that starts in k through 12 but refs up steam. And, yes, there is no question that you read these student editorials after i was, you know, after the mob had he prevented my interaction with, they were justifying shutting down of the speech and basically parroted the academic ideology of implicit bias and systemic racism. Stuart what are we going do about this . I think it is just terrible, quite frankly. But i dont know what to do . It is betrayal of our highest ideals, not only the ideals of Civic Education and constitutionalism, but human necessaritic education. These kids are being prevented studying greatest works of mankind. Parents are unfortunately so desperate to credentialize their children, they dont care if a Harvard Education is vapid, as long as it gives them a credential. Unless parents are willing to homeschool their kids in college, or there has been proposals. To create internet colleges but everybody wants the status. These baby boomer parent who were on ashrams in the 60s, dont care about material wealth, they are desperate for their kids to get a ba and an mba in harvard to go to Goldman Sachs to make a lot of money. Stuart my generations fault. Im a baby boomer. Im sort of a baby boomer too. Stuart it is our fault. We staff these universities. Thats right. Stuart these people are staffers in universities now. They were students in the 1960s. They grew up in that ethos and continuing that now. It is revolt against bourgeois culture, law and order, selfpossession, personal responsibility, and the real problem is, these colleges are graduating perpetual victims and they are going to be a scourge on american society. Stuart heather mcdonald, that is your last word. It is. Probably last. Stuart welcome on this program anytime you look. 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Like any of these types of plans, they let you apply whenever you want. Theres no enrollment window. No waiting to apply. So call now. Remember, Medicare Supplement plans help cover some of what medicare doesnt pay. Youll be able to choose any doctor or hospital that accepts medicare patients. Whether youre on medicare now or turning 65 soon, its a good time to get your ducks in a row. Whether youre on medicare now or tduck quacsoon, call to request your free decision guide now. Because the time to think about tomorrow is today. Stuart many of you writing in, remarkable video of the day, thats the united passenger being dragged off the flight. Here are some of your comments. This first of all from rick. If you pay for a seat, the seat should be yours. It is not food policy to force people to move to accommodate others. Im surprised by United Airlines. Theresa says, quit overbooking. They know how many seats are available. Ask for the crew, unid have made other plans for them. Last one from trey. This could have been handled better by all, but the fact that united did this to make sure for their own employees is disgusting. Strong word, trey. What do you think,. Liz . Liz stunning number. 430,000 people are overbooked annually. That is lot of people to offer, this 1000 for another trip. It is called fly the unfriendly skies right now. I understand theyre over booking they have to fill seats, right, they have to make money, wow, the way this was handled was so bad for ual. Ashley this happened to me, christmas eve, 2009, American Airlines flying from london to nashville. On the plane with my wife. Pulling away from the gate to go to chicago to nashville. Came back into the gate. Called out our names, tooks us off, family showed up last minute, husband and wife child. We were last two on. Flew international. Took us off. I refused to leave. They said were going to call the marshals. Good then they can arrest you for double booking my seat. It was a bit of a standoff, my wife talked me off the plane. Christmas eve. My kids waiting for me. It was dreadful. Double selling seats is a disgraceful. Stuart i think youre right. But the plane, in your case had left the gate, pulled on to the tarmac. Ashley yep. Here is the kicker. They sent our baggage on to nashville, no clothes next day, put us up in the hotel for a day. Christmas day. Stuart christmas day. American, with pub list for that story. Ashley all come back now. I have to calm down. Stuart we got it all out there. Did we not . Well have more in a moment. I mean wish i had time to take care of my portfolio, but. Well, what are you doing tomorrow 10am . Staff meeting. Noon . Eating. Alright, 9 53 . I usually make their lunches then, and i have a little vegan so wow, you are busy. Wouldnt it be great if you had investments that worked as hard as you do . Yeah. Introducing essential portfolios. The automated investing solution that lets you focus on your life. Stuart just bni at the white house, another ceo meeting. The ident has met with Business Leaders on an almost daily basis. Those meetings have helped bring jobs and money to america. Now a lot more is required. We need an agreement on tax reform. That is what those executives now in the white house will be discussing. Granted, they have their likes and dislikes, but now is the time for a decision on cutting taxes. President trump has positioned himself as the man who would get america moving again. He would do that with tax cuts and deregulation. But tax reform plans keep getting pushed back. By easter . Didnt happen. By august . Highly unlikely. The fall . Maybe. Not good enough. Nows the time for the president to bring the republicans together, bring business together, bring democrats in he can and present a plan. Now, this is a financial program, and weve covered the stock market rally which has been based on the promise of tax cuts. That rally is now on pause. Every commentator on this program has said that if we dont get tax cuts, the trump rally will disappear. So when those executives emerge from their white house meeting, lets hope they and or the president have something to say about a tax cut plan that is coming and coming soon. The third hour of Varney Company is about to begin. Stuart well, as the president meets with Business Leaders, we have a tripledigit selloff on the dow instrials, now down 117 points. We had been down 130 just moments ago. The markets, since the election, have gone straight up. Now the trump rally is on pause, and were down well over 100 points. Whos going to give us some real commentary on whats going on on wall street . Why not the man who wrote this book, american mojo lost and found, former Goldman Sachs guy, peter kernan, is with us now. Good morning to you. Good morning to you. Stuart i saw the 116point drop that weve got now, i think its the result of this delay and confusion on tax reform, but you disagree with me. I do. I dont think tax reform has fully blossomed into the problem its going to become, and its going to become a problem. I do think there is a lot of faux geopolitical risk, youre seeing the fear factor go up in terms of volatility in the United States. Stuart you think its confrontation with russia, maybe with north korea, you think thats whats doing it to this market, not taxes. I think when tillerson landed in russia, the stock market traded off. As it relates to korea, i like to look elsewhere for corroborating evidence, and if you look a the nikkei in japan, that was off about a quarter of a percent, south korea was down less than half a percent. So they dont seem terribly worried, and theyre in the range of the icbms. This may be one of those opportunities where i think theres an overreaction here. Stuart this is a buying opportunity . I think right now this geopolitical risk is exaggerated. You said that at brexit. Stuart he did. Was the man who got it right then. I i think peters absolutely right. I think theres this fear, whether its faux or not, of whats going on with russia and possibly north korea, and look at the amount of money going into gold, the safe haven, up nearly 20 today. The markets going side wyomings sideways, but with all this tension, i think thats some of the selloff today. Heres the role that taxes are going to play. What this market is dying for is a spark. Wheres the energizer bunny to push this market to the next level. Stuart yeah. I think taxes can do that if they can settle on a plan. Stuart come on, weve been saying this for months. They havent got a plan. The Republican Party is divided, and they keep on pushing back the deadline for when we get the plan. I think whats happening is border adjustment tax, people are starting to realize thats a bad idea disguised as a good idea. Hes got to figure out a way to make some money. I think revenue neutrality is, excuse me, on the table. Stuart i think youre running out of time, but we disagree. We do agree on running out of time. I do think it is not going to be a 2017 occurrence. Stuart what . Youre going to send the market down some more. If we dont get a deal this year if you get a deal in october, its going to be very hard to reach all the way back to january 1st. Stuart President Trump is meeting, i think its about 20 of the nations top ceos. Two headlines just in. He says were going to be pleasantly surprised on nafta and that his administration is working on doddfrank, thats the financial reform measure of five or six years ago, and he plans to eliminate it completeliment now, since that headline came out, the dow has gone from a 130 to a 104. Had he tked out tax cuts, i think the market would have gone up. Yes. I think the catalyst youre seeking is going to be tax reform. But think about it. When was the time, can you imagine when, i cant recall when president obama was photographed standing next to one chief executive. This president has met with more chief executives in the first 100 days than obama did in eight years. I think hes working very hard to extend an olive branch to business and try to build back on infrastructure and regulation. That will be good for the market. Stuart okay. You wrote the book on china, american trade with china. Consider this, please. The Financial Times says that President Trump and chinas leader have averted a trade war. This is the headline, i think it was yesterday this came out. China offers concessions to avert a trade war with the u. S. That was very conciliatory stuff from the Financial Times. If you understand china at all, you will see they are trying to play ball. No country on earth has spent more money defending its currency than china has last year. They also extended two olive branches. One, well be a little easier on u. S. Beef. They have not let us have that on any kind of rational basis this. And secondly, really interestingly, theyre saying were going to allow Foreign Investment with a little more flexibility than we have before. These are big olive branches. Stuart okay. Its a start. Stuart well see what happens. I believe xi and trump can work together. Trump has a guy he will understand in president xi. Stuart all right. Keep watching the dow industrials, were back from a 34 to a 97. President trump has released some headlines from his meeting wi ceos. We are, he says we are going to be pleasantly surprised with nafta, and he wants to get rid of doddfrank, that was the financial reform maneuver a couple years ago, he wants to get rid of that completely. Thats had a minor impact on the market, were still down almost triple digits. One more subject for you, peter. Tesla, the market value of that Company Almost said a car company instead of Technology Company is now greater than General Motors and the ford motor company. I find that extraordinary. I do too. And i have to say the only way that makes any sense is if you look at tesla as a Technology Company. If theyre lucky, they will sell 50,000 cars in the first half of this year. Ford motor sold 6. 5 million last year. People are look at that as a different kind of company. Its going to be a battery Technology Company, a solar Technology Company, and thats why people are buying. Stuart these Big Technology companies, they dominate other industries. Its not just computers, its the car industry, for example, its music, its all kinds of things. If you look at the curve of technology, whats really happened it used to be a product attribute, and now it is fully woven into the fabric whether its financial service, cars, tvs or otherwise. Stuart all right. Youre watching tesla, General Motors and ford. Let me show you only more individual some more individual stocks that are moving today. Actually, let me start with the price of oil. I think were around 51, 52 a barrel, almost 53, down a fraction, but thats up there. And gold, theres the number. This is a new five month high, 1,273 per ounce, that is up nearly 20. And look at this, please. This is the yield on the tenyear treasury dropping below 2. 3 . That tells me that investors believe were not going to get quite the amount of growth in the future in the economy that we were hoping for. You with me on this . Im totally with you on that, and i think that signals a real fight coming with the fed because the fed wants to be less accommodating, and whats going to happen here is rates are going down. It wants to raise rates, and thats going to be, i think, a real tussle between trump and yellen. I think theres stuart nah, youre wrong. Its tax cuts. [laughter] if we dont get tax cuts this year, we dont get growth. Thats why the yield on the treasury comes down. Thats my opinion and youre sticking with it. Stuart ill give you five seconds [laughter] well, it is the live action presidency in full effect today. The president s making headlines as we speak. Next up, we have the ceo of apple metro, seine tankel. Question to him, are all these meetings really helping us get closer to a tax cut deal or what . And were got to ask zane about the dragging at United Airlines. Whats he going to say about that . Well be back. Predictable. The comfort in knowing where things are headed. Because as we live longer. And markets continue to rise and fall. Predictable is one thing you need in retirement to help protect what youve earned and ensure it lasts. Introducing brighthouse financial. A new company established by metlife to specialize in annuities life insurance. Talk to your advisor about a brighter financial future. Arbreak through your allergies. Try new Flonase Sensimist instead of allergy pills. Its more complete allergy relief in a gentle mist you may not even notice. Using unique mistpro technology, new Flonase Sensimist delivers a gentle mist to help block six key inflammatory substances that cause your symptoms. Most allergy pills only block one. And six is greater than one. Break through your allergies. New Flonase Sensimist stuart i dont care what you read, i dont care where you look, you cant get away from this video. Its viral, as they say. United airlines removed a passenger against his will to make room for cabin crew on an overbooked flight. Seine tank el joins us now. Why are we talking to zane about United Airlines, the dragging incident . Its very simple, you run, what is it, 42, 43 about, right. Stuart applebees. Youre in the service industry. This is a nightmare for any service provider. I tho was a good thing just to create controversy [laughter] i got you for a second. Stuart you had me worried. Yeah, your face. Stuart its a disaster. Its a total disaster. Not just pr, you know, the reality is they had to make a choice, but i think that was offloaded to the Chicago Police department, and you do get Police Officers that when they get a green light, get out of jail free card stuart Aviation Security officer oh, sorry, sorry. Stuart it wasnt then. But it was offloaded, so they didnt know what this guy was going to do when he did it stuart the ceo didnt help when he talked about the behavior of the passenger. I believe uniteds market cap went down 800 million so far today, so they could have chartered a couple jets, 747s, in fact stuart absolutely. And sent him over there with his wife and family. Stuart youre laughing. There is some humor in this situation. I can understand that, but you run a service business. Yeah, yeah. Stuart and everybodys got a camera these days. So theres an altercation in the service business, that can go all over the world. We have them, literally, in our restaurants because were in some really tough neighborhoods, and we do have altercations. But and we are on video. But youve got to handle it in a propitious kind of way, and its a delicate situation. Obviously, they havent been through that before. Its a nightmare. Theres nothing one can say ability it. Stuart you think united handled this badly . I think the whole chain of command was handled badly. It wont happen again. Unfortunately, you have to have Something Like this to occur to figure out how to do it right the next time. Stuart i would not wish to be in a business which deals with the general public on ab to asian an occasionally contentious it is not an easy situation on a daily basis. Thats my single biggest fear all the time, is what kind of confrontation happens in our restaurant and do our people get away from it into personal situation like in the street. Stuart now, what youre really on the program for today is not the dragging incident at united i thought you had that happen just so we could talk about it. [laughter] stuart no, not me. No. Theres constant meetings in the white house, another one today, 20 toplevel ceos. Yes. Stuart youre a ceo. Yes. Stuart some of us are getting frustrated about the endless talking and the never any concrete news about tax cuts. Do you share that frustration . I do. But i think you get a bunch of smart people in the room, get some Collaborative Thinking it has to be done right, stuart, obviously, if its going to go. We saw what happened with obamacare. And i think tolstoy said all happy people are the same, unhappy people are all different. They share that unhappiness in different ways. Some cry, some jump up and down. I think youve got to get all happy people when they leave that room. Because happy people all stuart i dont think its the president and the ceos. I think its the Republican Party. Theyre the ones who are constantly but heres what ceos have to deal with, they have to deal with policy, selling the policy. Are we going to raise the price, whats the competitive set. All the kinds of things that politicians traditionally have not looked at in trying to sell a program. They line up their people on their team, they line up the people on the other team, and they deal. Ceos have to, on aaily basis, figure out policy, procedure, should i raise my price, should i reduce my price, whats my roi, how do can i get that recovery on investment, and i think youre going to get some smart ideas coming out of that room. Stuart you are frustrated and worried, i think, because you didnt get obamacare repealed, and thats very important in your industry. It is. Stuart we havent got the Corporate Tax rate cut yet. We havent got individual rate cuts. Youve got to be worried about this. Im worried, no, because its too important to the Trump Administration. Concerned, yes. I dont think its if, its going to be when. The only thing thats going to drive this economy is going to be a tax cut, both individual and corporate. The only thing that gets us off the ground on our import exports is to reduce the Corporate Tax rates, but theres a lot of ways it can happen really quickly, stuart. Stuart there are . Sure. Repatriation, i dont think anybody knows how many trillions of dollars there are overseas and not brought back here. Thats relatively simplistic. Stick that one in, give no taxes on it. Theyre talking about how much to tax it. Right now how much tax do we get on all the money thats around the world . Zero. Stuart thats true. So if we brought it back for zero, we get it churning and burning in our economy stuart yeah, but now youre talking about a limited tax reform. Why dont you just cut Corporate Taxes to bring that money back . Correct. So youve got to prioritize. Where do you start. Whats the first thing that you do. Stuart if we end up with that, were all going to be disappointed. That aint good enough. Thats a leap. I didnt say thats all we get. I said you start making some headway and traction. In these meetings trump is having, the president is having in the white house now you say, okay, thats a start, that gets us going, whats next. And you prioritize. Are we going to get everything . No. But i think if we its like i said about obamacare, how do you eat an elephant . A little bit at a time. Stuart okay. Were going to get tape momentarily from mr. Trump in the white house. Bear in mind the dow is now down 106 points. Were about to roll that tape. Roll it, lets listen. Very Incredible Group of world class Business Leaders, thats what you are. Also joining us are secretary betsy devos, secretary wilbur ross, secretary elaine chao, epa add moorer administrator scott pruitt and my budget director, mick mulvaney. Thats an easy job, isnt it . [laughter] easiest job of anybody in the cabinet. Right, mick . At the top of our agenda is the creation of great highpaying jobs for american workers. And weve made a lot of progress. You see whats going on, you see the numbers. Weve created over 600,000 jobs already in a very short period of time x its going to really start catching on now because some of the things that weve done are big league, and they are catching on. Already weve created more than almost 600,000 jobs, and yesterday toyota Just Announced that it will invest more than 1. 3 billion, its probably going to be 3. 9 billion into 1. 9 billion into its georgetown, kentucky, plant, an investment that wouldnt have been made if we didnt win the election. We have a lot to do, our nations lost a third of its manufacturing jobs, and our business tax is one of the highest in the world. It actually is, of developed countries, the single highest tax in the world. For too long weve punished production in america and rewarded companies for leaving our country, and were going to reverse that. We would reward companies, give them incentives to leave. Nafta is a disaster, its been a disaster from the day it was devised, and were going to have some very pleasant surprises for you on nafta. That, i can tell you. My administrations already taken historic action to unleash job creation. Weve signed dozens of bills and executive actions to reduce federal overreach and expand domestic production. On the environment were, were going to be very, very careful on the environment. Thats very important to me and the administration, but weve allowed a lot of companies to go back to work that were being restricted, their jobs were being restricted. Weve unleashed a lot of companies, especially right now in the energy sector. You see whats going on there. It was impossible for people to do what they had to do. And now they can do it. Its all done. Were also working to modernize our economy and harness the full potential of women in the work force which is crucial to our economic success. Economic confidence is sweeping the nation. You saw the new survey that came out, its at 93 which is the highest its ever been, 93 of manufacturers are optimistic about the future, a 27 increase over two months ago when it was also high because of the administration. And much higher than its ever been. 93 , highest its ever been. This is just the beginning. Were going to reduce taxes, were going to eliminate wasteful regulations which weve already done probably 25 . Take a look at doddfrank for the bankers in the room, theyll be very happy because were really doing a major streamlining and perhaps elimination and replacing it with something else. But thatll be the minimum. But were doing a major elimination of the horrendous doddfrank regulations. Keeping some, obviously, but getting rid of many. And were going to put many millions of people back to work. The banks will be able to lend again. So many people come to see me, i see them all the time, Small Businesses, theyre unable to borrow from banks. They never had a problem five, six, seven, ten years ago. They had great bankers, they had great relationships, now they cant borrow. And were going to let the banks loan them money, and they can build their businesses. So with your help and insights, we will use the private Sector Innovation to drive job creation and reform government. A lot of reform. We have a Computer System in this country thats 40 years old, so when you hear were hacked and were this were, like, easy targets. And one of the things were doing, in fact, were working with a very, very wonderful woman from ibm and others and others. [laughter] many others. Like when i said to lockheed, i like the f35 fighter jet, but then i said i also like the boeing f18. [laughter] so i love your computers, but we are also looking at others, all right . But we are, were going to have a massive program to modernize our equipment. Ideally, get brand new equipment. The cost of maintaining our computers is a number that is so high that its not even a believable number. Ive heard anywhere, is this possible, from 39 billion to 89 billion a year. Is that even possible . Thats for, thats for keeping our computers updated and running. And i think we can buy a whole new system for less money than that, wouldnt you say . I mean, i hope so. Well give you 10 billion right now. [laughter] i want to thank everybody. Most of you, you really are the top. And i want to thank, i want to thank my friend jack welch for being with us. Ive known jack so long. We did deals together, right . Trump international, big success, and the other one on park avenue. We did Great Success together with your Real Estate Group of people. Right . Right. Terrific. And, john. So i just want to thank you, youve been a special guy, long time. And well get down to business. Maybe before the media leaves we can go around the room, and well just two douse. Introduc we all know steve stuart now, a lot of talk around that table this morning. Ive got two takeaways. First of all, President Trump just said he wants to get rid of doddfrank. Thats the onerous regulatory system that sits on top of the banks, sits on top of wall street, and it was the financial reform of six or seven years ago. He says want to get rid of that. If we got rid of doddfrank, the big banks, the stock thereof, would go up. Look at this, the stock price of the big banks right after what the president just had to say, still down. My conclusion is that the president is talking and talking, but weve got no action. And until we get action, you wont see Real Movement in the stock market. Second takeaway, the president mentioned i caught it twice mentioned cutting taxes. He said he wanted to reduce taxes. He says were going to reduce taxes. That was it. Stuart that was it. Thats all we got. Lizzie, quick . Kellyanne conway on fox friends this morning said individual and Corporate Tax cuts are coming. Stuart okay, are coming. We dont see it yet. Stuart come on, peter. I think the only answer is the smorgasbord approach. Theyre going to have to pick and choose the overarching, all sizes, all kinds of cuts is going to be very unlikely without major were going to have to have a lot of conversation with congress. I think he learned, the president learned in health care that you cant just go in there with the same stuff, because theyre not going to approve it. Adjustment tax, that wont pass. So hes exrimenting with things like payroll tax cu and putting out trial balloons, and thats what part of this is. Hes socializing the change. Hes not going to delegate it to speaker ryan anymore. Youll watch the president take a very leadershipstrong position in this tax reform. Stuart yes. But no action thus far. Its going to frustrate because he learned from failing the last time time running out . Stuart yeah, is time running out . Very good question. Zane tank els still with us. Im disappointed. I know you are. Stuart i want a plan, and i would like to see youve been adamant about that before he was president. I think to peters point, he learned on that obamacare. You know, he is an impulsive guy, hes done things impulsively. Hes with peers and, i think, again, you stick a bunch of smart people in a room, you come out with smart ideas. Look, none of these are inheriting those ceo jobs, theyve all gotten there through different levels. Theres a lot of information to be gained from sitting around and stuart talking. Thats what theyre doing. Unfortunately, unfortunately, the problem with donald trump to date is he doesnt sit around and talk and collaboratively come up with ideas. Thats been his issue. And i would hope that some of those people, Jared Kushner and some of the smart guys, jared, who comes out of the Business World said, look, pop, president , whatever he wants to call him [laughter] donald, youve got to listen to some other folks because theres a lot of good ideas that can come out of these. Stuart all right, zane, we hear you. By the way, the dow jones average is now down 115 points. Remember, please, we were down 104 when the president s tape was released, and we heard what he had to say, now were down 114 points. I think we have peter morici with us, tenured professor of economics. I believe that is the case. Yes, there he is, there he is. I want to talk to you about what we just heard from the president. There was talk of tax cutting, but nothing concrete at all. Nothing. You disappointed . Im quite disappointed, but hes painted himself into a box. We have terribly high both personal rates at the margin, the high personal rates and very high Corporate Tax rates at the margin, yet hes promised a middle class tax cut, and hes constrained. He cant pass anything through reconciliation that lasts more than ten years that unbalances the budget, that creates more deficit. You really cant deal with all of those problems at the same time. You simply cant. If youre going to do something about high corporate rates, you have to have border tax adjustments. Thats out. If youre going to do something about high individual rates, you have to increase the deficit. And if youre going to do something about middle class taxes and high, you know, rates at the upper end, it becomes just about impossible. Hes basically promised the American People to put a 110foot cube inside of a 100foot box. Stuart i think were running out of time. If you dont put a plan in place and get something done by the fall, you dont get anything done on taxes at all. Do you agree with that . I do. And, unfortunately, the people that have his ear mnuchin, jared, cohn they dont know much about taxes. They pay a lot of taxes, they know how to file a Corporate Tax return, but they dont know about tax policy. The trouble is already diminished status. The cea has in the past been a member of the cabinet, now hell have to deal with cohn. Hes done a good job of marginalizing anybody that comes along. White house intrigue has a lot to do with mr. Trumps inability to come up with a plan. Stuart yeah, and the market doesnt like it. No, it doesnt like it at all. Its starting to say the emperor has no clothes. Stuart yeah. Youre the china guy, and there was a headline in the Financial Times that said china offers concessions to avert trade war with the United States. You know all about this stuff, what do you say . I mean, china offering concessions . Seems unlikely to me, what do you say . Well, theyre very smart. Theyve offered to do something about beef imports, theyve done that before. Whats more, we need systemic change. Were not going to get that in china, so we need a whole different approach. Basically, we need a timetable to wind down the trade deficit. The chinese will have to manage their economy in that direction. Theyre not inclined to do it because its destabilizing. Unless we take strong and forceful action like were doing with north korea on trade, were not going to get there. Unfortunately, jared and the others dont want to do that. They represent wall street, new york. Those folks dont deal with chinese imports, and they really have developed a theology in the economics profession that says the trade deficit doesnt matter. Thats silly. If you think the trade deficit doesnt matter, then its okay for the United States to owe trillions and trillions of dollars to foreign creditors, because thats what it means. Stuart you know, a split white house and a split Republican Party is not a good deal. No, its not. Stuart thanks very much indeed, stir. Want to bring in herb london, welcome back. Pleasure to be with you. Stuart weve just listened to President Trump talking about doddfrank, talking about some tax cuts, but weve seen no action. I think hes running out of time, and you say i think hes running out of time. Im a little disappointed. Frankly, i thought wed hear something concrete. We have not. And i think that sends a message to the market. The market really is uncertain about what will happen, and it does appear as though theres a split within the white house and within the Republican Party that weve already seen. Stuart dows down 100 points. Do you think thats because we dont have a tax cut, we dont have a schedule . Well, i think there are a variety of factors that account for it including the uncertainty on the world stage, what is going to happen with tillersons discussions in russia stuart you think weve got a confrontation withussia, ats clear. I think its a confrontation that the United States will do very well with. Stuart so you approve of it. Yes, i do. Stuart its the right thing to do. Yes, i do. Stuart even though the markets worried about it . Thats correct. I think the market is worried because theres always the up certainty principle. But one of the reasons why i believe its so important is that in these negotiations it is possible for the United States to encourage the russians to peel off iran in their alliance. Stuart well, tillerson has said hes going to say to the russians, are you with us . If youre not with us, youre with them as in the iranians and hezbollah. Thats a very clear choice. Come with us or you go with them. And why should the iranians dictate policy to the russians . The russians got what they wanted. They wanted the port, they wanted a trade agreement with egypt and saudi arabia, they wanted to build Nuclear Facilities in syria. Theyve got what they wanted. So the United States can avert its gaze to what the russians have gained, but at the same time say, you know what . Your relationship with iran is putting you in a very awkward position with this country and in the region. Stuart okay. Weve got an Aircraft Carrier battle group, if i want to describe it like that, on its way to the korean peninsula. What do you think is the possibility that President Trump would order the shooting down of a north Korean Missile if they launched one soon out into the ocean . And we shoot it down . I think its a possibility. But before we go there, i think you dont want to escalate that rapidly. There are steps in between that can be taken. Tre pressures on china, obviously, are a factor. Stuart weve done that for 25 years. Oh, but i think we could do a lot more. And, again, weve done it for 25 years, i think theres a lot more that can be achieved. But the second factor is the role that the japanese can play if you engage them in a conversation about modifying article ix in the japanese constitution which, of course, prohibits the development of Nuclear Weapons and you said, you know what . Why dont you give this matter some consideration. I assure you, the chinese will jump into a negotiating seat, and theyll say now we have to put some pressure on the North Koreans. Stuart let me introduce you to Peter Kiernan on the left here, not politically, just geographically. [laughter] he says this confrontation russia, north korea, china that that is unsettling the world i think its unsettling the world stuart it wont last, and you think the stock market is a buying opportunity. I do. When somebody sends you a letter signed by hezbollah, iran and russia, thats the unholy trinity. Im not too worried about the three of them carrying the day. All three of the parties in this, syria, russia and iran, everyone has to be sort of angry about the bombing. I agree. I thought it was a measured and appropriate response. Stuart okay. Do you ever invest in gold . I play a little bit in gold. I think gold is a commodity that gets pulled in a lot of different directions. I think gold right now is reacting to this as sort of a safety haven place to be, but i think if you look at times like this, like the iraq war when we first went into kuwait, those are opportunities if you wait for it to buy because this will settle out. No one wants world war iii. Dont an for the end of the world scenario, becausits only going to happen once. Stuart herb, im very worried about the trump rally. I think its on pause, and i think this lack of nudes about when we get news about when we get a tax reform, whats in it and these confrontations the world over, i think were on the verge of seeing that trump rally come down. Well, the failure of obamacare, i think, set the stage for further discussion. After all, if you want a neutral budget, one of the things you have to do is get obamacare or obama repealed as quickly as possible, and, of course, that did not happen. Stuart no, it didnt. And now we are engaged in a very different conversation about tax reform. Again, i think there are lots of things that you can do, but the trump people, i do not think, have the house in order, and thats worrisome. Stuart okay. Herb london, youre all right. [laughter] thats my expression. Always a pleasure. Stuart ive got a number for everyone. Last year the Service Employees union spent more than 61 million on political activity and lobbying. That union represents health care and Public Sector workers. 61 million on politics. Thats a lot of money. Thats to get Hillary Clinton elected. And, you know, the seiu union member better wake up and look at what their bosses are wasting their money on. Look at these numbers. 34 million on overhead. 31 million on union administration, meaning junkets for Union Leaders to fly around to hotels. You know . They had to lay off workers in their washington, d. C. Headquarters, the Union Leaders are saying we have to cut our budget by nearly a third due to donald trump . No. Theres a lot of fat through the union budget, and the seiu member is getting gouged with even more dues as memberships go down. They blow a lot of money at these unions with little oversight. Stuart well, youre fired up i just, you know they spent 14 million on this fight for 15 effort, organizing groups and funneling money into for what . Which ultimately ends up with those people theyre fighting for spending all this money losing their jobs to technology because the Restaurant Owners cant afford does the money go . Theres zero accountability for these union members. Stuart 61 million on politics on getting hillary elected. Stuart 99 of it went to democrats, and they lost. Yeah. Stuart thats not a good situation. No. Stuart do you have any reaction . My reaction, if you watch what happens in private sector unions, theyve basically crumbled down to almost nothing. It used to be 3040 of the people who worked in corporations were in the union. The same thing is going to happen because they cannot fight the march of productivity. They cannot fight the march of technology, and they cannot fight what is a trend in this nation yeah. And that is the key. Theyre off market. They are not able to deliver because they dont have a service. And theyre a fat cat there are Fat Cat Union bosses living large. [laughter] they are. Stuart you just, your passion for this particular subject because i had teachers and firemen in my family, and they are members of unions, and they are abused by their Union Leaders all the time. Stuart all right. Heres what we have for you, everyone. Tomorrow morning President Trump will join maria bartiromo. Tune into her show, that will be 6 a. M. Eastern time, mornings with maria, the president on that show tomorrow morning. California looking to become the first sanctuary state. Our voice of reason from california, otherwise known as larry elder, hes next. He says the president should withhold federal funding. Few its great to finally meet you. Your parents have been talking about you for years. Theyre all about me saving for a house, or starting a college fund for my son. Actually, i want to know what youre thinking. Knowing that the most important goals are yours. Its how edward jones makes sense of investing. Buttrust angies list to help. , [ barks ] visit angieslist. Com today. Im Lauren Simonetti on the floor of the new york stock exchange. Geopolitical risks are taking down stocks. The dow was down triple digits, now down just 98. Tech stocks are dragging on the dow, you can see that apple and intel are among the worst performers. Caterpillar and dupont added to that as well, investors seeking safety. Theyre buying gold which is up 20, and many of the gold stocks are rallying, as you can see. Taking a look at two social Media Companies as Facebook Instagram continues to do the disappearing thing that snapchat does so well. Both stocks down, another 2 hit for snap. Catch me ery morning on fbn a. M. More varney and co. After this. Were going to reduce taxes, were going to eliminate wasteful regulations which weve already done probably 25 if you take a look at doddfrank, for the bankers in the room, theyll be very happy because were doing a major streamlining and perhaps elimination and placing it with sothing else. But thatll be the minimum. Were doing a major elimination of the horrendous doddfrank regulations. Keeping some, obviously, but getting rid of many. Stuart well, the concrete thing that we heard right this was that he was going to eliminate doddfrank, get rid of as much as possible. The market is not taking this terribly well. Bank stocks are still down. The repeal of doddfrank would surely place them up. They are down. So the markets saying the president s out with a lot of talk. Same thing with tax cuts. He mentioned tax cuts, working towards tax cuts, but we still have no plan. And the dow is still down almost 100 points. Next case, california looking to become the first sanctuary state. Our next guest is mad as hell about that. Larry elder is with us, salem radio nationally syndicated talk show host. You say the president should withhold federal funds . Its as simple as that . Thats certainly one thing he could do. California, very likely when that happens, will file a a lawsuit. Theyve already hired eric holder to be the lawyer for california, so this is going to be tied up in court for a long period of time. But you look at the politics of this, stuart, i still dont understand it. Even if im a leftwing guy who believes there ought not even be a border between california and mexico, i ought to be worried about violent criminal illegal aliens who are preying on people in the state here legally. I would be concerned about the threat illegal aliens pose to jobs, especially for those unskilled, many of who happen to be people of color. The politics should compel lawmakers to do something about the fact that california is a sanctuary state. And one more factor. California spent 25 billion every year mostly for the education of illegal aliens and their children, and california by becoming a sanctuary state, i would think, would invite a flood of illegal aliens to that state, making california taxpayers spend even more money than theyre already spending on illegal aliens. Stuart you say you cant understand it, and i dont want to be cynica but what about the hispanic vote . They will not go for strict restrictions on who comes into the state whether youre a sanctuary state orbit. Its the hispanic vote thats very large in california thats the gamechanger here, isnt it . That is true. But even with respect to the california vote, remember cesar chavez, the man who founded the united farm workers . He was not a civil rights leader, he was a union leader, and he hated illegal immigration and cooperated with the federal authorities because he knew it posed downward pressure on the wages of his union members. Stuart do californians want a federal income tax rate cut . I dont think so. I think most californians believe that taxes on rich people, frankly, are too low and would be happy to see them raised. Its foolish, its idiotic, but thats how a lot of people in california really do feel. The rich are not sufficiently taxed. If you ask the average californian what is the top rate paid by how much of the federal income taxes are paid by the top 1 , these are people making about 350 or more, they would have no blooming idea. As you know, the top 1 in this country pay about 40 of all the federal income taxes, and most people in california believe thats too low. Stuart if its so bad, larry elder, why dont you move . [laughter] believe me, i have been tempted. I have been offered. Im in 300 markets, stuart, and i can do my show from anywhere in the country. I could easily go to a place like texas that doesnt have the kind of tax structure ive given it some thought. Stuart yes. Well, whats stopping you . I like it here. Im born and raised here, my familys here, my brothers here, my relatives are here, my friends are here. Thats whats keeping most people in the state here who complain about the taxes. Even bill maher had complained about how high the taxes are, but he hasnt left. Stuart okay. Im going to leave it at that, but i i really think you should consider texas. Great state of texas. Or nevada. You got it. [laughter] stuart whats wrong with nevada . Its just across the border there. Whats wrong with nevada . Well, id be tempted to spend a little too much time in las vegas, for me. [laughter] stuart all right, larry. Ill let you off the hook this time. Larry elder, thank you very much, sir. Now this, the rio grande valley, unusually quiet. Illegal border crossings dropped to the lowest point in, what is it, 17 years, ash . Yeah, down 64 year other year, less than 12,000 people caught in the month of march. Why . Well, certainly, the administrations policy of cracking down, Media Coverage of immigration raids, and there is some heightened security on the border. All of that giving the message of dont come. The Border Patrol says, you know, its interesting, would you risk a 1,000mile journey on average dangerous journey, at that pay a smuggler 8,000 to get across the border where you really believe you may not be able to stay because of the way immigrations being handled now . Bottom line is the president is just enforcing laws already on the books, theres nothing unusual here. Hes actually enforcing the law, and the message is getting through. Stuart does peter kernan have anything to say about this . Yeah, i glee with ash, i agree with ash, i think this is a reflection of the media saying this is going to be a new i would say its a theoretical wall right now even if theres not a wall. People come here if they know theyre going to be able to stay and get jobs, it is an awful ive been down to the border to check this out when i was researching my book. Its a terrible place. Youd only go through it if you had a high possibility of likelihood at the end. Stuart all right, peter. Im going to get back to the dragging incident at United Airlines. Under fire after forcibly removing that passenger from the overbooked plane. Stocks down about 3 and more. Judge napolitano returns for renewed questioning on dragging. Think your Large Cap Equity Fund has exposure to Energy Infrastructure mlps . Think again. Its time to shake up your lineup. The alerian mlp etf can diversify your equity portfolio and add potential income. Bring amlp into the game. Before investing, consider the Funds Investment objectives, risks, charges, and expenses. Read the prospectus carefully at alpsfunds. Com amlp no oh, my god oh, my god. Oh, my god. No hey, hey, hey my god, what are you doing . No, this is wrong, oh, my god. Look at what youre doing to him. Stuart that is possibly the worst pr that one can possibly imagine, and theyre taking it out on United Continental stock which is down 3 plus, 2. 37 lower. Judge napolitano returns for one more appearance on the dragging incident. Yeah. Have we heard from this guy at all . This doctor that was stuart dont even know his name. Now, tom sullivan, Airline Pilot and former air marshal our colleague stuart sitting there half an hour ago said the airline has the perfect right to take the man off the plane. Its their plane, their seat, they sold him the ticket, hes out of here. You say otherwise. Not under the common carrier obligation when you sell someone a ticket and theyve complied with your regulations; theyve paid for it, they are who they claim to be, in this case theyve gone through the tsa and theyre in the seat. They have the right to stay there. He was not committing a crime, so theres no justification for the use of force, and theres no justification to remove him. For what . For convenience . Stuart wait a second, ive not read the contract, but as i understand it, the fine print says the airline has the right to deny you a seat on that plane if theyre overbooked or security not because of some algorithm which picks this person in this seat, but because of some mechanical problem that the plane isnt working or some fault on your part. Absolutely not. This guys got an enormous case against the airlines and against the cops who were so brutal. Stuart are you saying flat out it was illegal to take that man off the plane . Absolutely. Absolutely illegal. This is for convenience of management. He was chosen by a computer. [laughter] he wasnt chosen because of some fault on his part. Completely random. Stuart so to you, it comes down to the reason for taking him out, not the absolute legality of whether you can take him out or not. No. The law says there could be a reason for taking him t, but that reason has to have its genesis in h fault, not in his presence. His presence is absolutely lawful. Im assuming he paid for the ticket, im assuming there was no fraud, im assuming he was who he claimed to be and he didnt bolt through tsa, he went through normally. Stuart you know what happened . He was dragged off, they got him off, and then he got free and ran back onto the plane. He did. Stuart did you know that . I did not. Then what did they do . Dragged him off again . Stuart they persuaded him to leave. This is crazy. Is he a physician as he claims to be . Stuart i dont know. I dont know his name. Do you wish to change your opinion . No, i dont change at all. Stuart if you were representing him, how much would you claim . It would depend on where youre going to sue and what harm he suffered. Im not exactly on the plaintiffs side any more than you are, but this is an innocent, injured person brutalized by unnecessary and unlawful government force. Stuart i think youve just youre his lawyer, babe bay. [laughter] out of time. Hard break, well be back. Thereby. Stuart ive got 27 seconds to thank all the people with me throughout that problem. Elizabeth, ashley, peter kernen. I want you to thank you profusely dealing with the united dragging incident. Ladies and gentlemen, i do not know neil cavuto will repeat the dragging incident. Will he lead with that or lead with something less important . I dont know, but neil, its yours. Neil let me ask you something. When is the last time you flew commercial . Stuart i have in my time. Neil all right. I was just curious. Peter, who i greatly respect, he still leaves me hopeful, to your point, that maybe, maybe, they can get a deal going. He has been right every step of the way. This should worry you, i agree with you. I dont like what im hearing, goal of a tax cut, keeps getting pushed back more and more. Im telling you. Stuart i was with you saturday morning neil. We had the same discussion. Neil not happening. Stuart im more towards your position than i was two days ago