Welcome in this morning. Were live at the mobile World Congress in barcelona. The dow is almost exactly unchanged ahead of a big night for the president tonight. Laying out his plan for the budget, defense spending, reaching 3 growth, something that has not been done since before the recession. Good morning. When you say all of that there is a real legislative log jam building here. You get a sense from the president that he is really wrestling with some of the grim realities of governing in a town that is so deeply divided. Here is what he said about his spending initiatives. I think the money will come from a revved up economy. You look at the numbers were doing, were gdp of a little more than 1 . If i can get that up to 3 or maybe more, we have a whole different ball game. Its a whole different ball game, and thats what were looking to do. He also expressed frustration with the complexity of health care reform. Here is what he said. Health care is a very complex subject. If you do it, it affected nine different things, do that it is affecting 15 different things. We have a great plan. Its not congresss fault. I have only been here about four weeks. They have been working on health care for 30 years. I have only been here, what is this my fifth week . One of the things Administration Officials are telling us is that the president has been taking lessons away from the meetings he has had with ceos at the white house over the last few weeks. A lot of the lessons will be in the speech tonight. Among the things that could be in the speech are the thoughts he had on Harley Davidson as a model for manufacturing in the united states. And ideas of Infrastructure Spending that he picked up from some of the ceos that have been here in the white house. And they mentioned pharmaceutical information from drug companies. Well watch all of that and see which of those ideas ends up in that speech tonight. Very hot competition. It is important to get each specific idea. We will see what makes the cut tonight. Among the issues, the budget, financial regulations, tax reform, joining us this morning, former minnesota governor tim pawlenty, good morning to you. Good morning, carl. You said it is a chance to move from generalities to specifics, but how much can he do that to a broad audience when the market is really searching for specifics . Yeah, i think that is a great point. I dont think she able to get granular tonight, but he needs to move from high level as per ration to start to present the road map that continue needs to move forward, and it is getting later than you think, it doesnt have to be done in the fifth rs0 days, if you dont have things rolling by summer there comes a lot of distractions. He said that growth is the cure all. 3 growth would get rid of a lot of concerns about budget deficits, do you think the hawks will be clambering for that answer . Crowd would help on a whole bunch of fronts, but how much are you willing to bet ahead of time that it will happen at the risk of fuelling more deficits and more debt, a big concern for conservatives as it should be. Conservatives said the political holy grail includes tax reform, obama care and repeal, and we will address the debt and the deficit. If they make it worse, that will not end well for conservatives. Governor, beyond letting laying out some priorities in a little more detail, do you think the president needs to show he has the capacity to build kind of a legislative ground game. Famously people criticized he didnt overcome that. Can he overcome this lack of a kind of on the ground presence and expertise on the legislative side. President s get measured on a number of things. One main mark seer is what did get done thats transformational or epic legislatively. If you fast forward a year or two or ten or 20, theyll say what got through congress. Here he has a congress that is poised to serve up tax reform, obama care repeal, infrastructure reform, if he signs those, he could be a very, very productive president. He has more critical things to say today about nancy pelosi. These speeches are never about true outreach to the other side of the aisle, and well see how contentious things get tonight, but should there be room for that where youre inviting the democrats to compromise on whatever they might . I think i would look for three or four things. First i think he will take an interim victory lap on his perspective on things like i have a Great Supreme Court nominee. We made progress on the keystone pipeline. I think he will try to express optimism for the country, and the country needs that, but that includes graciousness, i think, to the other side, to bring them in to get to what you raised earlier, those key legislatively accomplishments. And i would look for a detailed road map to give congress signaling and direction on what the president wants to get done so they can use that as cover for moving ahead with what they need to do and theyre waiting for that. And we know that trade is high on his own agenda. Fairer trade, rewriting some of their old trade deals like nafta, now wilbur ross has been sworn in and he can get to work on that, where is the Republican Party here. This has been a party that has been in favor of free trade. The party is divided. You have a wing of free trade and people who continue to support that in an unabashed way, but this concern about trade that is unfair, that were being taken advantage of, is clearly risen in the Republican Party. There is a split. He will have a chance to put that back together by negotiating bilateral deals. The large regional deals that are on the shelf for now, but that will take a long time, they are hard to negotiate. Finally, if he doubles down on this argument they made before, that obama care needs to get done before taxes can be under and changed, does that throw the market for a loop . They will have to repeal and replace balm care because they should, if it were up to me, i would say do tax reform first, get that done, obama care will continue to wobble and maybe implode on its own weight. That would create an opportunity for them to say we have more latitude for things to fix it. He talked about the dangers of working through that scenario. Now using it, they have to have a price of leadership, saying you want to govern, now it is time to walk the walk. Governor, we hope to check in with you once we find out what the president says tonight. Good to see you, talk to you soon. Thank you, carl. Ahead of that, we want to check in on the markets here, the dow is trying for 13 Straight Record closes in a row. The longest winning streak since back in january of 1987. Right now the dow is virtually unchanged. We have winners like goldman, j and j, 3m. They have been responsible. Target, the worst performer in the s p 500. Missing in the top and bottom line. Comp sales and the forecast is disappointed. Sales have fallen for six quarters in a row. On that note, stay tuned for an interview with Brian Cornell coming up at 1 00 p. M. Eastern time on power lunch. The last trading day for the month, 5 for the dow, it has been strong, only three down days in the month for the s p. An unbelievable streak. When we come back, snaps ipo will be announced. The stock is covering record new highs and later from john fort in barcelona. The markets are keeping their cards close to the vest. Down is down 1 point. E you can s with thousands of other traders . Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at td ameritrade. If only the signs were as obvious wn you trade. 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Anecdotally, we still think of them, as cramer said this morning, a place for kids to be silly. You know, i think were starting to see kids engage with their parents and some grandparents on the platform. Theyre starting to get on and finding it fun to be silly with each other. No one thought about being silly on your phone in a long time and snap chat le snapchat lets you do that. That fits right into the argument that its not about user growth, but the engagement of people you are all right in exact with. They have 160 million users using it 18 times a day. If these reports are accurate, it salespeoples well that this could grow into something that is not just a millennial. Yeah, if you remember, you had to have a. Edu email addresses. My question is about the corporate golf nant. But they that theyre not telling any voting shares, how much trust, along with the cto. Almost 90 after. They have to put virtually complete trust in him. There is a lot of things on both sides of the leger. How will be ipo do . Are you long and how do you feel about it . And not just corporate fof nans, but the idea they would like to lock ipo investors up, there is just such a deep am give lance and i know we saw something dollar with this, but i wonder if it will reflect on how wall street interacts with the company once its out there. Think at the beginning, they are sensitive to being under all of the market pressure from day one. They know the product is still only five or six years old. I think this is a baby step. Can we show what were doing to the market, will people hold long enough that as we get our feet under us, we can be traded and show real growth. Jeff besos has done this for 20 years now, and i think ef vant built something to 160000 daily users. Josh, isnt this a bet, if youre betting on snap, that you dont even fully understand yet what the company is capable of . We talk about how people are acting silly on the platform, thats not going to get them to the scale they set for themselves. Dont you think they will grow entirely new products and engage people in an effective way . I think that is the bet. People are watching, youtube Just Announced a billion hours of video viewed every day. Snapchat wants to be where you go to watch continue tent and what your friends are doing, and the way you interact. If you want to pull that over, theres a ton of room ahead. Meanwhile, the annual shareholder meeting, were at apple hq with details on that. Items on the agenda for the shareholders today, tim cook, al gore, ratifying the important of an independent firm. The meeting is taking place as the stock as been on a recent tear. It is up about 30 in the last since months. Warren buffet just told cnbc that he doubles his take in apple, that means the ie phone maker, in an interview and buffet telling us that apple, a sticky product, and it is normally useful. While buffett bought, others booked profit. Al gore, who was also an apple board, garnering 30 million. He had 230,000. When tim cook takes the stage here, you expect him to field questions on a range of issues. From trade to issues. Well bring the headlines once they cross. Josh, thank you very much for that. About the wall street journal reports, the iphone is going to have a curved flexible display. It is not just record highs but it is now the top down component of the year. They are arguing that asps are going to start to move. Yeah, it is the highest percentage in two years. They continue to show they can move iphones and move their business businesses. When you put those two things together, theyre one of the highest valued companies in the world. Josh, what is amazing here is that investor attitudes seem to change or run hot and cold more rapidly than the fundamental story does. So when everyone just discovers everything is going well, and the Services Business is great, but not that much is different from what you could have said a year ago here. So people are waking up to what has been in in front of them awhile. I think they always fear this will be the last great phone and the next one is not as good and they wont garner the same enthusiasm. A lot more people buy phones, and the content, the app store is a 30 billion business. That shows there is so much more to the apple story than just someone to makes a couple computers and sells those on a several year basis. They write it says it all that the phone people are most excited about is 15 years old. Yeah, i i think that is so true. In the past, people beat up on apple a lot. Around 90 people beat up on it the most, the knock was their not innovating enough. What happened was the opposite. Samsung not having a phone to announce here at the show this year, people are disappointed about that. Samsung never built up a content arsenal, so as we see the rebound effort from samsung and the new phone from apple it will be really interesting to watch from a place like barcelona. I just wonder how much is about the arsenal of cash that apple also built up. Almost 250 billion which is not a new story, but what is is the repatriation theyre talking about in congress. What will happen, will they return it back, and how does is play into the full story. Is it a onetime buy back . What do they do with the cash . How does trump play into this . Interesting to see if tim cook asks that question today. Well see you soon, thank you for the help today. Were watching shares of priceline beating estimates in the most recent quarter, shares at alltime highs, approaching 17. 50. This was a 7 stock i think about 14 years ago, kind of remarkable. Squawk alley back after this. Lets get over to dominic with a market flash right here. News that Microsofts Xbox will now offer a Subscription Service for 9. 99 a month. It is called game pass. It will allow users unlimited access to over 100 titled. Shares now lower by 4. 5 . They see it as attacked game tooks core business. Thank you, lets get back to john ford at the World Congress in barcelona. Give us a temperature of what youre seeing out there. One thing, carl, that has been particularly fascinating, the changing of the guard at the fcc is going to lead to some changes in privacy rules. There is a stark difference between how the new chairman, and the previous one, tom wheeler looks at this, i caught up with them both here. Pi says if goog enand facebook can traffic information about you as the previous fcc, there was i made the argument that they the ftc has applied a uniform set of rules to all players on the online space. What is good for google is good for the Different Service providers. We just want them to all handle data in the same way. Wheeler completely different take on this, he sounds a little unshackled now that he doesnt have an official position any more. Listen to him. Here is the interesting thing. Here is what is really surprising about those who want to remove privacy and allow networks to sell my information without my permission. On a telephone network, you cannot do it. If i make a telephone call to verizon cant turn around and sell the fact that i was calling about reservations to paris to a Hotel Company in paris. Quite a difference there, carl, back to you. More on the World Congress in barcelona, when we come back, well go to the live jp morgan investor day. A live report after the break. Is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. 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More than two million voice recordings of children and parents have been leaked due to a leak by cloud pets. It also exposed data for more than 800,000 accounts. It saccording to troy hunt. A man rescued from a massive flood in san diego this morning. He was foundling to a fence in flood waters. San diego county has seen a record breaking amount of rain in the past few days. Youre up to date, thats the news update this hour. We are looking at cigna, halted for news pending when we get to that. Well bring that to you. Well count down to the close in the u. K. And across europe. Eu