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tv   Bloomberg Markets Americas  Bloomberg  July 25, 2017 2:00pm-3:30pm EDT

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scarlet: we are live from bloomberg world headquarters in new york over the next hour. -- then with politics stakes are high for senators on capitol hill today. a crucial procedural vote on a health care bill is scheduled to take place this hour. we will bring you the latest. attorney general jeff sessions' future in the trump administration could be in doubts. president trump lashing out at sessions on twitter. a tale of two restaurant chains -- lachman pinning his open on chipotle earnings. mcdonald's making headway on its turnaround plans. -- bill ackman pinning his hopes on chipotle earnings. there's a lot of attention on washington.
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it is an external nearly day for earnings in the u.s. -- busy day forly earnings in the u.s. all three major averages at records. a lot of that has to do with earnings. take a look at the groups on the move. it's not just earnings. we are seeing a rally in commodities today. copper near a two-year high, oil prices moving higher, energy and materials the two best-performing groups today. also some earnings and materials helping things. financials are higher today as well. we are seeing yields rebound. simmer discretionary stocks also getting a pop. on the downside, we have a decline in health care stocks. it has something to do with washington, uncertainty over the debate. here, part of the story is earnings. the hospital operator coming up with earnings that missed estimates.
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the company cutting its full-year forecast. analysts expecting concerns about patient volume at that company. is also concern about what will be the outcome of the health care debate. whether be a cut to medicaid funding? what affect will that have on patients coming through these hospital doors? elsewhere, watching big companies that have reported -- mcdonald's is one of them. hasn't same-store sales coming in ahead of estimates and a traffic increase domestically as well. caterpillar also turning things around, the company forecasting its first annual sales increase in five years because of demand from construction in china. we see the major averages higher. alphabet shares off by 2.5%. the traffic acquisition costs taking up.
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raising the low end of its forecast -- the forecast is still below estimates. as we look at all the companies earningsreporting -- 127 companies reported in the s&p. they are still beating at a higher rate than they are missing. julia: since the senate republicans a step up to the plate on health care -- lawmakers are set to hold a procedural vote this hour that could pave the way for a dramatic debate on health care legislation. if other senators agree and join me in voting yes on the motion to proceed, we can do one step closer to sending the legislation to the president for his signature.
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i hope everyone will seize the moment. i certainly will. julia: kevin cirilli has been following all the action and developments on capitol hill. with us in studio, megan murphy. maine coming up and sing she will not vote yes to this procedural vote. what do we know about the other holdouts? kevin: i'm texting with a senior aide at the republican national committee saying the excitement is cautious but real in terms of the republicans feeling they do for enough votes to proceed the debate on health care reform. what will they vote to proceed on? that is what is unknown. either a full repeal of obamacare or a repeal and replacement. i've been speaking with several republican sources all day who essentially say this is what is going to be for president trump
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considered a political victory. he will try to seize momentum and try to push health care reform over the finish line. he will speak at the white house at 3:00. also later tonight in ohio. the debate is far from over. megan: it's amazing when we see a procedural vote opening the door to debate -- scarlet: there's plenty of momentum driven by john mccain's return to washington. do we presume that he will vote yes to start debate? yes on the motion to proceed. this is washington at its finest. the resurrection of a bill that seemed absolutely dead as recently as last week. senate going to the floor -- we have seen this
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dynamic happen in the last 10 minutes, dean heller of nevada coming over to a yes, rob portman of ohio threading the needle to a yes -- they will vote on a bill. we don't know what bill they will actually put forward. a straight repeal takes health insurance away from 32 million americans by 2026. a repeal and replace, 22 million americans by 2026. is whole idea behind this fresh legislation, a skinny repeal that would strip back the hated individual mandate and the employer mandate and the medical device tax. then kick it back to the house where senate republicans have grave differences and hope to come up with something later. scarlet: a plan with many different paths.
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we don't know what is going to happen. does senator mitch mcconnell know what will happen? i put this to a communications advisor who frequently consults with the white house. win.want some type of they feel that for weeks, they have not been able to get one. this will hopefully take away the toxicity of the moderates who have come under -- whoseg pressure estates would be very much affected with regards to medicare and medicaid cuts. --o some olexander ding someone like senator dean heller. this is far from over. we should also note that on a day in which the biggest
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policy battle of this administration is happening, the president is tweeting pressure against his own attorney general, jeff sessions. i want to let viewers know that we are waiting for the senate majority leader mitch mcconnell to speak following the usual tuesday lunch. we will bring you that when he makes some comments. you are laying out all the afferent challenges here -- win needed for the administration here. i don't see any avenue here that looks like a win. a repeal or repeal and replace -- reconciliation is meant to be a partisan deal -- you need bipartisan support. all these senators can agree on -- n: both democrats and
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-- this is 1/6ee of the american economy we are talking. kevin is 100% right, they will view a win on this as a win. if they come together in the house and come up with something together on the republican side that makes more sense -- here's the problem on this political calculus. this bill is deeply, deeply unpopular. has gotten more popular. people like health care. they like access to health care. they don't like stripping away planned parenthood. that is the bigger political problem going into 2018. can they actually get this to be a more popular health care package that perhaps the bigger
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win is that -- the probability of that continues to be very dependent on the president. they're going from firestorm to firestorm every day. jeff sessions is the latest today. if they can stack up some -- right wins now, looks very tough indeed. julia: we will bring you president trump's news conference at 3:00 p.m. eastern time. stay tuned for that. we will bring you all the details. now come of this get a check on the first word news this afternoon. presswhite house secretary michael short has resigned. it could be the first casualty of the new communications director, anthony scaramucci's
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push to clean house. president trump has criticized the leaks and is urging authorities to prosecute those found responsible. president's former campaign chairman met with investigators from the senate intelligence committee today. paul manafort says he fully answered the senators' questions about a june meeting with a russian lawyer. leaders subpoenaed manna fort -- paul manafort today. speaker paul ryan says border control will be a priority for the house this week. including the construction of the wall along the southern border. ryan spoke today at the house republican leadership conference. >> this week, we will take action on key elements of the president's strategy to secure our border -- when you
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cartels does over the river, there is a need for a physical barrier in many parts of this porter. -- this order. - on many parts of this border. brexit minister says progress has been made on talks concerning citizens rights once the country leaves the european union and. his government wants a quick deal on the rights of one million u.k. citizens living in the eu and 3 million eu citizens living in britain. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. scarlet: mitch mcconnell is set to make remarks after the weekly republican senators' luncheon.
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we will bring you his comments when he appears. from new york, this is bloomberg. ♪
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julia: this is "bloomberg markets." scarlet: in corporate news, shares of caterpillar are climbing after the equipment maker reported better-than-expected second-quarter results. caterpillar raising its forecast for revenue for the year -- they got a big vote of confidence -- we want to take you to mitch mcconnell, who is ready to make some remarks after the luncheon. let's listen in.
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it appears he has just spoken. we will return to the senate floor when they begin voting julia: he made some quick comments there. scarlet: let's go back to caterpillar -- shares are rising. results better-than-expected and improved outlook. caterpillar got a huge vote of confidence from machine analysts -- joel upgraded the stock to outperform with a new price target of $125. he joins us from the nasdaq. he will take his time with his comments come as opposed to mitch mcconnell. you upgraded caterpillar. younted to get a sense from know what is driving the
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improvement? measures cost cutting or signs of bottoming in mining and energy? >> for now, what we have is a lot of cost cutting, company closed 30 factories, they've taken $2 billion out of cost so far. they have another $1 billion net pocket for 2017 and 2018. that's $3.50 a share of incremental learnings. we are getting a bit of a cyclical bounce -- the cost cutting is more important. have been analyst day in early september and they will start to weigh out more of that operational excellence and continuous improvement and try to drive profit margins to a new high level. julia: that exceeded the average analyst forecast here -- the first increase in annual sales since 2012. given theiroften
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focus in asia and some of the emerging markets -- quite pivotal for the outlook there, too. what were they saying about china? great -- it's hard to tell if it's all because we have an election coming up later this year. their liquidity is flowing and the government is keeping interest rates low and everything looks very good. the real question is about the follow-through with 2018. scarlet: small parts are responsible for a big part of caterpillar's better-than-expected performance in the second debate it is demand for aftermarket parts -- what does that say to you about caterpillar's core market? >> that's exactly the point. part ofical recovery
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the story is still problematic. oil is to less than $50. mining prices have not bounced off the bottom. now, we are five years into the downturn and the equipment in the field is wearing out. that is the only thing that is working right now in a big way is parts and aftermarket service. nf we can put together a internal improvement story and having all the cyclical potential in the future, you can have a really great stock with cat. julia: it is trading at a five-year high at this point. this outlines their next five years -- what do you want to hear from the managers? this is one of the reasons why you upgraded them to outperform, the management control here. what do you want from them? >> i want to hear more about continuous improvement from
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adding software onto their products to improve productivity and try to drive caterpillar's operating margins. the operating margins have averaged 8-10%. when you look at the best industrial companies on the planet, they are in the high to mid 20% range. julia: what would you consider caterpillar's peer at this point? >> they are trying to look more and more like a ge than a ge is the direction they want to move in. scarlet: joel tiss, thank you so much. julia: we will show you live
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pictures of the senate floor, the procedural vote expected to start in a few minutes time. we will bring you that s and as it begins. for now, we will wait and see what happens with that vote. from new york, this is bloomberg. ♪
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scarlet: we are looking at live pictures of the senate floor. mitch mcconnell is speaking right now on the senate floor. they have not yet begun to vote on the procedural vote to begin debate on health care bill. and theconnell republican senators just wrapped up their lunch, their weekly policy lunch, laying out the various paths. julia: chuck schumer saying the public needs open debate -- let's listen to what mitch mcconnell is saying here. sen. mcconnell: this is the
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status quo. we have to accept that for a long time. we don't have to accept it any longer. the american people elected a house with a vision of a better way on health care, then they elected a senate, then they elected a president. now, having been given the responsibility to govern, we have a duty to act. the president is ready with his pen. the house has passed legislation. today, it is the senate's turn. that starts with a vote we will take momentarily. the critical first step in that proceed.the motion to
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it is the vote that determines whether this debate can proceed at all. up.her we will even take it after potter straight elections , theur straight elections vote that determines whether senators of both parties can offer their eminence and -- and amendments and ideas on health care. state the people of my over this period that i would move to vote beyond obamacare -- vote to move beyond obamacare. that is what i will do today. i would ask all my colleagues to join me in doing so. we've already shown it is
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possible to put legislation on the president's desk that moves us beyond obamacare and its years of failure. president obama veto it what we passed before president trump will sign with congress passes this time. i want to thank the president and the administration for all they have done on this issue already. they work with us every step of the way and they know the consequences of failing to act. we cannot let this moment slip by. we cannot let it slip by. we talked about this too long. we have wrestled with this issue. we have watched the consequences of the status quo. people who sent us here expect us to begin this debate.
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to have the courage to tackle a tough issue. they didn't send us here just to do the easy stuff. to tackle the big problems. get anly, we cannot outcome if we don't start with debate. that is what the motion to proceed is all about. many of us on this side of the aisle have waited for years for this opportunity and thought it would never come. some of us were a little surprised by the election last year. electiona surprise comes great opportunities. to do things we thought were never possible. is all we have to do today have the courage to begin the debate with an open amendment process.
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and let the voting take us where it will. us,that is what is before colleagues. will we begin the debate on what the most important issues confronting this one of the most important issues confronting america today? it is my hope the answer will be yes. mr. president, i ask senator mccain will be allowed to speak for 15 minutes -- >> is there objection? no objection. --i moved to counter >> the motion to proceed to annter number 120 hr 1628
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act to provide for reconciliation pursuant to title ii of the concurrent resolution on the budget for fiscal year 2017. >> kill the bill! don't kill us! >> clerk will restore order in the chamber. [chanting " kill thkill the ]ill! don't kill us!" scarlet: a pause in mitch mcconnell's comments as demonstrators and protesters are yelling "kill the bill." mitch mcconnell speaking in the senate, talking about how
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lawmakers should start debate on health care bill and the senate has a duty to act on the obamacare appeal. we still don't know whether they have the sufficient votes to go ahead, but the reporting indicates they are able to do so. toator capito the latest reach a yes -- mike: earlier, senator heller and rand paul decided to go ahead with it. i suspect they are looking at it from the point of view of senator heller. they at least have a debate on a boat, this will be a long process with many amendments, they might be able to fix what each one of them inks is wrong with that -- thinks is wrong with the bill. it looks like senator mcconnell will get the 50 votes on the motion to proceed to a vote. it could likely go
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through. then, what happens? these senators has agreed to proceed with the health care bill, it doesn't necessarily indicate they will vote for the senate's version or any other version. mike: exactly. this will be a complicated procedure that stretches over several days. happen looks like will -- senator mcconnell is going to offer as the first amendment -- they will start debating the house bill. the first will be the 2015 version of clean repeal. it doesn't qualify under the reconciliation instructions they are using to do this. they will lose because it needs 60 votes and they don't have 60 both. then, they proceed to a vot arama. will be dozens of a moments -- amendments. some will be allowed, some will not. at the very end, senator
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mcconnell and the republican leadership will decide what format bill they think could pass and they will offer that as the final amendment substituting for everything else that had gone before. that will be the final senate vote. that could be as late as tomorrow night or even thursday because the senate can suspend debate and take up other issues in the meantime. scarlet: in the meantime, we are for them to go through the first step. they have begun the rollcall already. vote, even if they get to that is a vote on the house bill -- mitch mcconnell will present .ome amended version -- youdment to replace
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have elements of this that won't agree with senate budget rules. how long do they have to keep going back and fourth amending -- back and forth amending? mike: more than most people would like. they get 20 hours of debate evenly divided between the parties. they can suspend debate for a while to pick up other issues. it's possible that either side could give back time they don't want. democrats may want to use all of their 10 hours talking against this measure. it is hard to see them giving up time. republicans will need all the time they have to try to deal with the amendment. there is a cap on it, but it is a soft cap. --rlet: we really any closer julia: donald trump speaking last night. they loaded the pressure on the senators to sign up at least on
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this procedural vote. reservations remain, don't they? we really aren't much closer, even with a yes vote here? mike: exactly. this gives them continuing to debate. that doesn't mean they will come up with a different kind of measure than the one that failed a week ago. they have to find some way to appease both sides of this debate. if they start with a replacement , you lose rand paul. if they start by cutting back on medicaid, you've already lost susan collins and chile capito. -- shelley capito. the debate keeps going. mitch mcconnell noted for this, living to fight another day, is the way would describe it. scarlet: you mentioned senator
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rand paul. he was a holdout on beginning debate in general -- what made him change his mind? there's a lot of pressure on the republican senators. paul's position was he doesn't like replace. he wants it all repeal. him to be a getting good soldier on this boat suggesting he would start with a boat --peal -- on this on this vote suggesting he would start with a clean repo. what it will take to get him to vote for any kind of new bill remains to be seen. scarlet: where does this leave us as far as ted cruz and his bare-bones a moment? we have the senate parliamentarian on friday put out a whole number of measures that suggest that those elements like planned parenthood and the
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cuts to funding there would require a total majority. what happens to all of these things at this stage? is this part of the negotiation and the back-and-forth? mike: some of it is part of the negotiation. some of it cannot be dealt with in a parliamentary passionfruit ted cruz -- in a parliamentary fashion. ted cruz's a moment will come up -- it's hard to see it gets enough support to put into any final bill -- you mentioned the senate parliamentarian. under the reconciliation instructions they are using, they can only vote on things for that eitherreshold involve taxing or spending. revenue or spending. something like the individual mandate that the republicans hate monday can get
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rid of that because it is a tax on people. the requirement that insurance companies cover everyone and cover pre-existing conditions, those cannot be voted on under that reconciliation instruction because they don't deal with budget matters. that is part of the problem that had in getting this through. they have to keep the aspects of obamacare. they don't have an easy way to repeal the whole thing unless they get 60 votes. scarlet: the senate has enough votes to advance to the debates. this motion to proceed appears to have passed. senator murkowski has voted no. one republican at least has voted no. we will continue to wait until the gavel has been struck and we know for sure that has happened. heard allevin, we sorts of noises and shouts of
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"kill the bill." there have been protests going on all morning. we're just hearing that they don't have the votes yet. a lot going on that we will continue to monitor. that voting will continue. we heard protests, people have been protesting. ts.heard the shouts and chan this is a deeply unpopular process. kevin: definitely. unofficial, but it looks like it is indicating that lawmakers do have enough muster of support -- it is not official. it looks like it is heading in that direction. hour, senatorst rob portman and dean heller,
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moderates have indicated they are going to vote yes on a motion to proceed. these folkser week, had all been no's. those three senators moving towards mitch mcconnell's camp. we heard from him and impassioned plea trying to urge members of his own party to get on board to give the president that political victory that has eluded him. we will hear from him at the white house at 3:15. we will also hear from senator john mccain. mitch mcconnell asking senator to a lot 15 minutes for senator mccain to speak. scarlet: we will take you to
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senator mccain when he begins speaking. murkowskiins and lisa have voted against taking up the health care bill. republicans cannot spare anymore -- mike pence may need to come in to break the tie. megan: the women in the senate have been singled out in many cases -- we have susan collins from maine -- lisa murkowski was very much on the fence, whose state in particular would be badly hurt by a reduction in medicaid. that is interesting. when we look at this calculus, you also look for political cover. who's being afforded the political cover to vote no because they know the odds
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facing them in their state -- it looks like lisa murkowski is in that camp right now. the margin here is very, very slim. we've heard from rob portman and might want us we kevin if he's heard anything from wisconsin yet. we are carefully tracking this -- should senator johnson not vote to proceed on this, that would be enough to sink the senate majority leader's chances. senator murkowski, senator , two prominent republicans within this republican-controlled senate saying they are not going to -- that means no more senators in the republican party can come out against this. if they do, it is dead on arrival. it is down to the wire now in terms of whether or not they are going to be able to get this
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through. scarlet: talk to me about what it means -- we just talked about the tie-break situation. what happens in a tie-break situation? >> it heads to the vice president and we will have the motion to proceed. i want to take this a step out of politics. the american people are going to be watching this. the merck and people will be looking at washington procedure -- the american people will be looking at washington procedure -- what i do wonder sometimes is what are the american people really thinking about when they watch this? isn't this what they voted to get behind, politics as usual? what's interesting is how many people have learned about the health care system and their insurance options and the industry. it's always interesting to think
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, do the republicans have the political calculus correct, even if they advance the debate on health care legislation today? we are still waiting on the democrats and remaining republicans -- mike pence is ready and waiting. you've talked about the skinny repeal. it would be rather unsatisfying. megan: again, washington language, skinny repeal. it comes back to the political calculus here of who can afford or not afford to say no here. scarlet: i wonder, to what extent, if we do get a 50-50 split, does the vice president stepan -- step in to break the tie?
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does it still count as a win if mike pence has to break the tie? kevin: a win is a win -- president trump just moments ago speaking to "the wall street journal." he says he's optimistic about the chances of this motion to proceed continuing onward. using all lines of communication try to pressure his republicans in the senate to move forward on this. president trump telling the wall street journal that he's optimistic he can go through on this. politicslk about the and the wonky world of all of this. at the end of the day, really, the policy of this will deeply impact states like west virginia , very largely interconnected with the obamacare legislation -- someone like her who at first
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was a chief critic of the majority leader's maneuvering on this, now falling in line. keep an eye on senator dean heller. when we head into these midterm , that is in 2018 someone who will hear a lot about the politicking that's going on these last few months. this is just a vote to proceed -- trump said tont speak with a lebanese prime minister in around 15 minutes time. vote -- itut this will be interesting to hear what he has to say. i want to go back to what you were saying there about the fallout from this. will we look back on this period in the midterms and 2018 and say this was a pivotal moment not
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only for the republicans but for the democrats, too? : it could be a galvanizing moment for the democrats. just yesterday, we had democrats talking about a better deal for americans, their attempt to bifurcate their movement to put forward a new measure for better wages and better jobs -- they completely fell flat. they have had a problem about getting americans to really identify what democrats stand for and what the left stand for now other than just anti-trump. this will give them an inflection moment. the tens of millions of americans who gotten health care on this -- people at the most high risk, pre-existing conditions, this will be a rallying cry for democrats.
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on the other side, for republicans come in deeply red districts and purple districts, obamacare is a divisive point. ,hat's interesting about this yes, it will be an inflection moment -- it will play on both sides. has mitch mcconnell and president trump gotten the calculus wrong in trying to understand what the american people want? didn't want $800 billion in medicaid cuts -- senators in moderate states didn't want that. they will have to come up with something and re-craft. what will the american people take from this? will the people who lose their health care blame the republicans or just say washington as usual? we have 48 yes m, two
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no's. you talk about the two female senators who have voted no from the republican side. no women were part of the caucus that crafted the bill behind closed doors. this was a process that was very closed doors and a lot of people worried it was a template for how the senate would go forward with how they would legislate. : i'm sure they are ruling the day they did involve susan -- regretting the day they didn't involve susan collins. we should also remember that single women, working families, a lot of those women and families were able to get health insurance for the first time under the affordable care act. those images will be seen on the
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campaign trail in 2018. is forll be remembered all the problems that have gone , will theamacare solution be better than what you have now or worse than what you have? it is very simple in america. do people have a better life, better dreams, more ambitions about what they can achieve or not? that's what health care comes down to. pencet: that is mike getting ready to take the stage. perhaps speaking. if it is a 50-50 tie, he would be called upon to break the tie. they can go ahead, the motion to proceed has passed. that has not happened yet. we are still waiting for
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ron johnson and john mccain. just a week after his brain surgery actually coming to capitol hill for this vote. megan: one other interesting thing about this -- the cbo scoring on this. i don't think we can say too often how extraordinary it is today -- they are voting on a procedural process that no one actually knows how the dominoes will fall. it's rare that you ever get to a moment in the senate where it's unpredictable at this time -- also, the budgetary impact, where that goes in terms of the ultimate cost of this bill, what amendments such as the ted cruz amendment -- that getting scored. this is a dramatic moment with john mccain coming back to talk. what he says is likely to be remembered. scarlet: you are talking
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millions and millions of people who will no longer be insured in 10 years time. --haven't seen more reaction consumer confidence figures. whatever option we're looking at here, it looks concerning. i don't actually understand why we haven't seen more of a reaction. why do you think we haven't seen more of an impact? is that because ordinary americans don't necessarily believe in what happens next? mike: most of the reaction comes in the districts when the members go home. they've been faced with so many lot organized by opponents of the effort to repeal obamacare -- many of them have stopped holding town halls.
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you do see the polls show that between 10 and 20% of americans like this bill. there isn't a lot of support for it. it will be interesting to see if the republicans' fixation on keeping a so-called promise over the last seven years outweighs what people think of what that promise does. speak to the trump wall street journal and he said he is relatively optimistic about the prospects now because he says if this motion to proceed passes, people keep talking and want to get to that point, it is in pretty good shape. the president feeling relatively good about it. he didn't say he had talked to senator john mccain. scarlet: certainly an interesting point. a lot of people saying john mccain would not have made the trip to washington if he wasn't ready to vote yes on a motion to proceed.
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we are keeping an eye on the developments at the white house. there's the rose garden there. we are waiting for president trump and the premise to lebanon 's prime minister of lebanon to come out and give a press conference. asked about health care and his comments regarding jeff sessions. you monitor what is going on in washington and with this boat , how engaged has president trump been in this part of the process? i know he's been active on twitter talking about how republicans need to join together. has he been making phone calls, has he been calling these moderate and conservative republicans who are publicly on the fence? kevin: he's been criticized for not being engaged enough. senator ron johnson now on the senate floor -- you are monitoring that feed.
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you can see him talking with the majority leader himself, the same majority leader who just several weeks ago said publicly that it had a breach of trust with republicans in terms of how he was handling this type of health care vote. the optics of this coming as senator john mccain returning from his diagnosis to the senate for the first time since being diagnosed with brain cancer -- senator ron johnson from a state that was paramount to president trump becoming president now one of the key holdouts. should he come out against voting on a motion to proceed, suggestlly that would it wouldn't be able to go forward. either way, senator ron johnson
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now a key person in the final moments of this deal. julia: we can't say more about the drama, the tension we see in the room at this moment. vote,r ron johnson yet to huddling on the floor with mitch mcconnell there. the pressure these guys must be under -- >> it's astounding that it's come down to ron johnson from wisconsin. as a states seen that was crucial to president trump's victory, but his objections to this bill was that it wasn't conservative enough -- calling the process crazy, saying to have this procedural -- he has attacked it for not being hard enough on medicaid expansion.
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i know there will be a lot of watchers who are surprised we've come down to senator ron johnson. julia: he said he hadn't even been told what a skinny repeal looks like. megan: more of this is about the integrity and reputation of the republican party's ability to govern. they have the house and the senate and the presidency. on their core pledge, when all is said and done that they've made for seven consistent years , we are at- look ground zero for that place. would beo move forward seen as a broader failure of the rebellion party -- republican party. that would be grave looking weside of the presidency -- forget sometimes there's a much
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broader party with true conservative goals holding back entitlement spending, cutting back medicaid, doing conservative tax reform. the rest of the agenda they've been waiting so long to be empowered to push through. scarlet: the voting had been taking place. mike pence is down there, ready to break the tie. we are still waiting for two republicans to vote. ron johnson of wisconsin and senator john mccain from arizona. julia: a lot of tension in that room. how long have they not been voting for? 20 minutes. . this gives you a sense of the high drama, the pressure in the room we've been talking about. , should we get a quick look --
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there's other things going on in the world. julie: oh, hello. julia: you are not forgotten. i'm looking at -- julie: i'm looking at health care. there's also what it means for the health care industry and corporate america. i want to look at that aspect a little bit. this is etf that tracks health care companies. it is down today .6%. it has much more to do with earnings. the backdrop for some of these companies, health care legislation aside, is not necessarily great, either. you have a company called waters , a maker of analytical instruments down 5%. the earnings were positive. however, it's pharmaceutical markets growing more slowly than estimated. thethe most exposed to
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possible repeal obamacare. like many of the hospitals come i, it relies on medical reimbursement. it came out with earnings that missed estimates. patient volumes were lackluster. you have eli lilly coming up with earnings that came in ahead of estimates. it's potential blockbuster arthritis drug may face a years long delay in getting to the u.s. markets. lily talk about its annual health products segment coming in with disappointing revenue. these companies falling because of earnings. not necessarily because of what's going on with the bill. i have a look at the various subsectors. hospitals and white, during the worst today because of hca and the ripple effects. you have medicaid --
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scarlet: john mccain on the floor of the senate. a standing ovation for the senator from arizona. tumor. he is now going to cast his vote . he will also be speaking, and we will wait as he takes the lectern. we also know ron johnson of wisconsin has yet to vote. he was seen huddling with mitch mcconnell, the senate majority leader, as they discussed last-minute concerns. >> mr. johnson? mr. johnson, aye. >> the senator is not reported. scarlet: it is now a 50-50 tie. the senate minority leader, voting no.
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>> they are going to go through all the remaining -- scarlet: going to go through quickly. >> let's talk about this again. we have a tie-break in this situation. we have to wait and see as we continue to get these nos. we have been talking about what discussions were going on between senator ron johnson and mitch mcconnell, the difficulty of standing up and making a decision even on this procedural vote to continue the debate and how difficult it is for all of these senators. >> it's very interesting that johnson decided to be among the last senators to vote. if he were to vote yes without getting anything for it, he could have kept the spotlight off himself. he had a lot of problems with the gop leadership during his reelection campaign. they abandon him much of the way through the campaign, and he
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remembers that. he may have been extracting some concessions from senator mcconnell, but in the end, he did vote yes, as did senator mccain. it will be interesting to hear what senator mccain's justification is. a week or so ago, he was saying the senate should drop the bill, hold hearings, start over, have an open process to rebuild a different kind of health care program. mind, somehow changed his and it is going to be interesting to hear what the reason is. scarlet: we now have the vice president mike pence presiding over the senate in his role as president of the senate. kevin, let's bring you back into this conversation. at the white house, we are awaiting president trump and the prime minister of lebanon to begin their news conference. this will come up in the questions posed by the press to the president no doubt. to what extent -- how is the white house keeping on top of
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the developments as they are busy in the meeting between president trump and the prime minister of lebanon? spoke with three different people who chat with the administration, and from their perspective, this is the win they needed to keep advancing onward. it is now anticipated that the vote on the motion to proceed will succeed. they are going to have to now debate and create legislation. while you have someone like ron johnson voting in advancement of the proceedings, he very well could vote no on any type of legislation that moves forward. that is because some of these controversial intraparty battles could be very much on display over the next couple weeks. trump and president looking at this from a standpoint, politically speaking, he is about a day, as
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his top administration officials are being subpoenaed regarding the rush investigation -- he will now address the nation with a significant, however small, ability to say he has some sort of victory and try to seize the momentum that quite frankly folks inside and outside the white house aligned with his administration privately say they have lost. >> we are showing live pictures of the white house rose garden. we are expecting president trump to hold a press conference with the lebanese prime minister. this is the first time he has spoken since we've had a decision on this health care vote. to wait on coming out? jared kushner, a busy man over the last few days. he recently came out with a vodka trump, his wife, everybody
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.aiting for president trump i just want to bring you in here and talk about what happens now in terms of mike pence's decision to break this tie in the wing kevin keeps talking about. >> a win is a win is a win. what is important when we see some senate democrats coming up there, i just saw senator amy klobuchar up there, is this bill was blocked and stymied by very active outreach by democrats, by community activists, with people who had health care who benefited by it. it was a surprising ability to a number of people to call their senators and saying, i need health care. that has been the interesting dynamic. some of the tactics -- we can look back to the bernie sanders campaign, some of the president's own campaign, in
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terms of mobilizing people to get behind the issues. forward, we still have an unknown as to what we are going to see, what votes we are going to see from the senate and what we go forward with, and if they could get back to the house to come up with a new package of legislation. the opposition to this bill and rallying cry around health care isn't going anywhere, and they are going to fight tooth and nail to protect millions of americans. >> 20 hours of debate does not feel like enough. scarlet: especially when everyone is coming at it with different angles. you got conservatives, moderates, all with different objections to the health care bill. we also want to bring you up to speed. it is a 50/50 tie at the moment, and we are waiting for senator ron johnson of wisconsin to cast his vote. he was last seen speaking with mitch mcconnell, and of course, vice president mike pence, in his role as the senate president, will be breaking the tie.
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shannon pettypiece over at the white house, she's covering the president's press conference with a lebanese prime minister, but they are keeping a close eye on these developments. talk about what kind of news president trump could be making layer on when he is asked questions following his press conference. there are so many areas on which reporters have questions, whether it is jeff sessions, whether it is health care. he is looking for a win. shannon: i would suspect the first question is going to be about jeff sessions given the way he has started off this day with him attacking jet sessions on twitter. resign --ssions to will he asked jeff sessions to resign? has he had a sessions?on jeff we saw an organized defense on the hill, coming to sessions' f
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efense,: on the president to stop the attacks. another thing reporters want to know about is the russian sanctions bill. that is also coming up for a vote soon. saw the president a while ago. many of the president's cabinet are here. i'm sure the president will get a bit of news updating him about the health care vote before he goes out for the press conference, which is supposed to start momentarily. scarlet: there's mike prensky, -- mike pence speaking. 50s.e yeas are the nays are 50s. the vice president votes in the affirmative, and emotion is agreed to. scarlet: the gavel has been
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struck, the vice president breaking the tie, and a senate with aed yes to go ahead motion to proceed. they can now begin debate on the health care bill, and this opens 20 hours of debate. with a motion tomegan: we could see ths stretching over several days. we will see senator rand paul, one of the holdouts, the senator from kentucky who has said he assured -- this is john mccain now speaking. >> i've sat in that chair, and that's the closest i'll ever be to a presidency. [laughter] honorific we are in different to come isn't it? presiding over the senate can be a nuisance, a ceremonial bore, and it is usually relegated to the more junior members of the majority. i stand here today looking a little worse for wear, i'm sure. i have a refreshed appreciation for the customs and protocols of this body and for the other 99
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privileged souls who have been elected to the senate. i have been a member of the united states senate for 30 years. i had another long, not as long career before i arrived here, another profession that was profoundly rewarding, in which i had experiences that i revere, but make no mistake. my service here is the most important job i've had in my toe, and i am so grateful the people of arizona for the privilege, for the honor of serving here, and the opportunities it gives me to play a small role in the history of the country i love. i have admired men and women in the senate who have played much more than a small role in our stead it -- in our senate, true statesman, giants of american politics. they come from various parties and backgrounds. their ambitions were frequently
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conflict. they held different views on the issues of the day, and they often had serious disagreements about how best to serve the national interest, but they knew that however conflict. they held different views on the issues of the sharp and heartfet their disputes, however keen their ambitions, they had an obligation to work collaboratively to ensure the senate discharged its constitutional responsibilities effectively. our responsibilities are important, vitally important, to the continued success of our public, and our arcane rules and customs are deliberately intended to require cooperation to function at all. the most revered members of this institution accepted the necessity of compromise in order to make incremental progress on solving america's problems and defend her from our adversaries. that mindset and the service of our predecessors who possessed
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it come to mind when i hear the senate referred to as the world's greatest deliberative body. i'm not sure we can claim that distinction with a straight face today. i'm sure it wasn't always deserved in previous eras either, but i'm sure there have been times when it was. i was privileged to witness some of those occasions. our deliberations today, not just our debates, but the exercise of all of our responsibilities, exercising government policies, exercising our advice and consent role, are often lively and interesting. they can be sincere and principled, but they are more partisan, more tribal, more than at any time that i can remember. our deliberations can still be important and useful, but i think we would all agree they haven't been overburdened by
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greatness lately. right now, they are not producing much for the american people. both sides have let this happen. let's leave the history of who shot first to the historians. i suspect they will find we all conspired in our decline, either by deliberate actions or neglect. we have all played some role in it. certainly, i have. sometimes, i have let my passion rule my reason. sometimes, i have made it harder to find common ground because of something harsh i said to a colleague. sometimes, i've wanted to win more for the sake of winning than to achieve a contested policy. incremental progress, compromises that each side criticized but also accepts, just plain muddling through to chip away at problems and keep our enemies from doing their worst is not glamorous or exciting. it doesn't feel like a political triumph, but it is usually the most you can expect from our
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system of government, operating in a country as diverse and quarrelsome and free as ours. considering the injustice and cruelties inflicted by autocratic governments and how corruptible human nature can be, the problem-solving system does make possible the liberty and justice it preserves. it's a magnificent achievement. our system doesn't depend on our nobility. it accounts for our imperfections and gives us an order to our individual .trivings it is our responsibility to preserve that, and even when it requires us to do something less satisfying than winning, even when we must give a little to get a little, even when our efforts manage three yards and a cloud of dust while critics to
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announce us for timidity, for our failure to triumph. i hope we can rely on humility and on our need to cooperate, on our dependence on each other, to learn how to trust each other again, and in so doing, serve better the people that elected us. stop listening to the bombastic loudmouths on radio and television and the internet. to hell with them. [applause] they don't want anything done for the public good. our incapacity is their livelihood. let's trust each other. let's return to regular order. we have been spinning our wheels onto many important issues because we keep trying to find a way to win without help from across the aisle. that's an approach that has been employed by both sides, mandating legislation from the top down without support from the other side, with all the
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parliamentary moves that requires. we are getting nothing done, my friends. we are getting nothing done. all we have really done this year is confirmed neil gorsuch to the supreme court. our health care insurance system is a mess. we all know it. those who support obama care and those who oppose it -- something has to be done. we republicans have looked for a way to end it and replace it with something else without paying a terrible price. we haven't found it yet, and i'm not sure we will. all we have managed to do is make popular a policy that wasn't very popular when we started trying to get rid of it. i voted for the motion to proceed to allow debate to totinue and allow amendments proceed. i will not vote for the bill as it is today. it's a shell of the bill.
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will havechanges that to be included for me to support passage of any bill. i know many of you will have to see the bill changed suspension way for you to support it. we tried to do this by coming up with a proposal behind closed doors, in consultation with the administration, and then springing it on skeptical members, trying to convince them that it's better thandoors noth. that it's better than nothing yakking -- nothing? ?sking us to swallow our doubts i don't think that is going to work in the end, and probably shouldn't. the administration and congressional democrats should not have forced through congress without opposition support a social and economic change as massive as obamacare, and we shouldn't do the same with hours. -- with ours. why don't we try to do the old way of legislating in the senate? lure,is process ends in fai
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then let's return to regular order. with the health, labor, and pensions committee hold hearings, report a bill out of hearing, with contributions from the both sides. [applause] it is something that my dear friends on the other side of the aisle didn't allow to happen nine years ago. [applause] let's see if we can -- pass something that will be imperfect and won't be pleasing to intractable partisans on each side, but that might provide workable solutions to the problems americans are
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struggling with. int do we have to lose working together to try to find those solutions? we are not getting done much a part. i don't think any of us feels proud of our incapacity. preventing your political opponents from doing what they want isn't the most inspiring work. there is greater satisfaction and respecting our differences but not letting them prevent made in goodat are faith and help improve lives and protect the american people. the senate is capable of that. we know that. we have seen it before. i've seen it happen many times, and the times i was involved even in a modest way in working on a bipartisan response are the proudest moments of my career and by far the most satisfying. this place is important. the work we do is important.
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our strange rules and eccentric practices that slow our proceedings and insist on our cooperation are important. our founders envisioned the senate is the more deliberate and careful body that operates at a greater distance than the other body from the public passions of the hour. we are an important check on the powers of the executive. our consent is necessary for the president to appoint jurist and important government officials and in many respects to conduct policy. whether or not we are of the same party, we are not the president's subordinates. we are his equal. we play a vital role in shaping and directing the judiciary, military, and cabinet in planning and supporting foreign and domestic policies. our success in meeting these
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constitutional obligations depends on cooperation among ourselves. the success of the senate is important to the continued success of america. this country, this big, boisterous, brawling, intemperate, daring, beautiful, bountiful, brave, good, and magnificent country needs us to help it thrive. that responsibility is more important than any of our personal interests or political affiliations. we are the servants of a great nation, a nation conceived in liberty and dedicated to the proposition that all men are created equal. freeore people have lived and prosperous lives here than in any other nation. we have acquired unprecedented wealth and power because of our governing principles and because our government defended those principles. america has made a greater
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contribution been any other nation to an international order, has liberated more people from tyranny and poverty than ever before in history. we have been the greatest example, the greatest supporter, and the greatest defender of that order. we are not afraid. we do not covet other people's land and wealth. we don't hide behind walls. we breach them. we are a blessing to humanity. what greater cause could we hope to serve than helping keep america the strong, aspiring, inspirational beacon of liberty and defender of the dignity of all human beings and their right to freedom and equal justice? that makes ususe so much more powerful and worthy than the small differences that divide us. and a great honor extraordinary opportunity it is
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to serve in this body. it's a privilege to serve with all of you. i mean it. many of you have reached out in the last few days with your concern and prayers, and it means a lot to me. it really does. i have had so many people say such nice things about me. i know some of you must have me confused with someone else. [laughter] i appreciate it, every word, and much of it is not deserved. i will be here for a few days. i help managing the floor on the defense authorization bill, which i am proud to say is a product of bipartisan cooperation and trust among the members of the senate armed services committee. after that, i'm going home for a while to treat my illness. i have every intention of returning here and giving many of you cause to regret all the me, things you said about and i hope to impress on you that it is an honor to serve the
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american people in your company. thank you, fellow senators. mr. president, i yield the floor. [applause] mccain,was senator john clearly showing signs of his recent surgery. he said he will be around for a few days, and he will go back for more treatment, but he really wasn't pulling his. ofhis punches in terms needing more cooperation in d.c. he said on the health care bill, i won't vote for the health care bill as it stands today. there's a great deal of confusion over what bill we are talking about, but kevin, i want to give it to you. we are waiting for president donald trump to speak. he will be doing a press conference with a lebanese prime minister, but i remember sitting here watching the gop after that house vote passed, and there was that a enormous celebration. -- there was that enormous celebration. what kind of tone does he take
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in light of this victory? >> he's going to call it a victory, but i can tell you the work is far from over. let's walk through the next steps that the senate majority leader has advanced on the motion to proceed. what are they going to be debating? first, a full repeal of obamacare. that was enough to win over conservatives like rand paul, ted cruz. they are in favor of a full repeal. the other version of this legislation is the version put forth by senate majority leader mitch mcconnell. that is a much more moderate proposal, something that loses the support of the ultraconservatives, and there is a third path. this is what we have been hearing, and that is the skinny version of repeal. that is the most likely to advance to the house of representatives, and this is where it gets interesting. i spoke with a senior aide of
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the house freedom caucus who said they don't see a path to victory on that. scarlet: let's take you to the rose garden where the president and prime minister of lebanon are holding a joint news conference. democrats' votes, the motion to proceed on health care has just passed, and now we move forward towards truly great health care for the american people. we look forward to that. this was a big step. i want to thank senator john mccain, a very brave man. he made a tough trip to get here and vote. we want to thank senator mccain and all the republicans. we passed it without one democrat vote. that's a shame, but that is the way it is. thent to congratulate american people. we are going to give you great health kill, -- health care, and we are going to get rid of
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obamacare, which should have been terminated long ago. thank you very much. >> good afternoon and thank you all for being here. it is my honor to welcome prime minister hiriri of lebanon to the white house. the prime minister and i just concluded an extensive conversation about the challenges and opportunities facing lebanon and its neighbors . lebanon is on the front lines in the fight against isis, al qaeda, and has below -- hezbollah. the lebanese people of all weths -- you know this, and been discussing this -- have been working to keep their country safe and prosperous. they love their country, and they are going to keep it safe and prosperous. mr. prime minister, i want to commend you and your people for standing up for humanity in a
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troubled part of the world. the ties between our countries stretch back more than a century , long, long relationships. in 1866, american missionaries founded the american university of beirut. now more than 150 years later, and with ongoing american support, this university continues to educate generations of leaders in the region. what the lebanese armed forces have accomplished in recent years is very impressive. in 2014 when isis tried to invade northern lebanon, the lebanese army beat them back. since that time, the lebanese army has been fighting
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continually to guard lebanon's ander and prevent isis other terrorists, of which there are many, from gaining a foothold inside of their country. the united states military has been proud to help that fight and will continue to do so. american assistance can help to ensure that the lebanese army is the only defender lebanon needs. it's a very effective fighting force. threats to the lebanese people come from inside, as well. below -- hezbollah is a menace to the lebanese state, people, and entire region. the group continues to increase its military arsenal, which threatens to start another conflict with israel, constantly fighting them back.
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with the support of iran, the organization is fueling humanitarian catastrophe in syria. zbolah likes to portray itself as a defender of lebanese interests, but it's very clear that it's true interests are those of itself and its sponsor, iran. i have emphasized that syria's neighbors must take responsibility for helping refugees until they can return home and rebuild their country. the lebanese people have led the way, accepting more syrian refugees per capita than any other nation. it's not even close. i want to thank the prime minister and lebanese people for giving shelter to those victimized by isis, the assad regime, and their supporters and sponsors, and pledge our continued

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