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tv   Power Lunch  CNBC  June 27, 2017 1:00pm-3:01pm EDT

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>> credit suisse, call buying. financials are going higher. giddyap! >> well, our survey said -- >> survey said >> i wish i had the sound effects, i'd be using my desk. >> i was going to say, positive analyst day on stanley black and decker, i'm back into the stock. >> lowe's on the back of stanley black and decker. >> thank you "power lunch" starts now. and i'm michelle caruso-cabre caruso-cabrera here's what's on the "power lunch" menu, a wave of cyber attacks happening around the world, disrupting the power grid in ukraine, an oil company in russia and targeting at least one major dow component. we'll have the latest on this massive attack, straight ahead. plus, shares of arconic plunging the uk government launching an investigation into the safety of close to 100 buildings now with the number expected to rise. arconic supplied the panels used in the deadly fire weeks ago this is minutes away. health care still front and center we want to know, should health
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insurance work like car insurance? would that solve the problem that debate is on tap as "power lunch" starts right now. all right, welcome to summer, everybody. the summer market as well. stocks in a narrow range energy, though, the best performer in the s&p oil doing something it has not done in a while, rising for a fourth straight day. financials also doing pretty well the big bank etf, the kre and the kbb both near session highs. they're on pace for one of their best shake shack higher, despite a note from goldman sachs saying earnings could take a hi because of all the rain we've had in the northeast goldman noting shake shack has heavy exposure up here many locations have outdoor seating. also, darden rallying on its earnings beat, the restaurant chain raising its quarterly dividend 12% tyler. >> welcome, everybody. i'm tyler mathisen and here's what else is happening this hour
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fed chair janet yellen speaking in london on the state of the economy. she's expected to take questions. will she give new clues about the number of rate hikes that may be ahead we're going to monitor that and bring you any headlines as they occur. yellen's speech comes as the imf lowers its growth forecast for the united states because of uncertainty over the trump economic agenda. more on this ahead and the supreme court will take up new jersey's plan to allow sports betting at casinos and racetracks it was struck down by lower courts as a violation of federal law. meantime, we begin with a developing story, another massive cyber attack, wreaking trouble on governments and businesses around the world. eamon javers live at the white house with what we know so far hi, eamon. >> reporter: tyler, that's right. one of the things we know so far is that the list of companies that's affected has grown dramatically over the past several hours. take a look at the companies that we know are notifying the public that they've been victimized by this hack. companies across the world,
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particularly in ukraine, russia, and the uk wpp and dla piper are victims of the attack in the united states, we've got at least a couple companies here, in france and in denmark, companies reporting attacks in all of those different countries. here's a couple tweets now from merck confirming what they know. "we can confirm our company's computer network was compromised today as part of a global hack other organizations have also been affected. we are investigating the matter and will provide additional information as we learn more." that from merck. we also just seconds ago got a new statement in from the department of homeland security, and apologies here as i look down because i'm going to read this straight from my phone, straight from the department of homeland security, saying "dhs is monitoring reports of cyber attacks affecting multiple global entities and is coordinating with our international and domestic cyber partners we stand ready to support requests for assistant
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upon request, dhs routinely provides technical analysis and support, information shared with the dhs as part of these efforts, including whether a request has been made is confidential." so, the department of homeland security there saying that it stands ready to help companies around the world no official comment yet from the white house, but one indication is that this cyber attack appears to be engaging in ransomware, when the hackers lock down the user's data and then demand payment to get that data back. and the reason ransomware works and the reason we continue to see it is that companies and entities continue to pay, tyler. so, one of the questions is will these companies pay the ransom they're being asked for today? back to you. >> eamon, thank you very much. let's bring in john carlin, chairman of the aspen institute cybersecurity and technology program and also partner at marison and forrester. good to have you with us eamon mentioned the possibility that this is a ransomware attack what do we know or what can you
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from your experience surmise about the kind of attack this is and the possible origin of it? >> look, this is another reminder that the era of cyber insecurity is here and if you're a business -- and every business these days is a tech business -- you are vulnerable ransomware is a global plague. and as eamon says, it's extraordinarily well funded because many companies are not prepared when a cyberattacker goes into their system, encrypts data or steals data and threatens to release it. and because they're not otherwise prepared to get their business up and running, they feel they have no choice but to pay. >> but your presumption is that this is a ransomware attack. where do most of these attacks originate? can you make any -- draw any conclusion from your experience as to who may be behind it >> now, let's divide that into two things one, ransomware is prevalent, it's happening all over the world, it's coming from
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different countries, originating from places like russia, from eastern europe, from china, from other places in the world. the normal ransomware case hits companies, and it doesn't make itself public. what we're seeing possibly today -- and i think it's too early, we need to wait and see -- is what's called a ransom worm we've only seen one other like this recently, and that is, it combines ransomware, the stuff that locks up your computer and makes a demand for payment with what's called a worm, something that self-prop gates, so it keeps replicating itself across the world. normal crooks don't do that with ransomware schemes why? because look at what's happening today. it gets global attention, and that means law enforcement, nation states are going to try to see who did it. it makes it less likely that people are going to pay them. >> sorry to jump in. what's it say about the state of cybersecurity, maybe lack of cybersecurity, that teams of what are probably just a couple of guys, hackers somewhere, can
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shut down the computer systems of hundred billion-dollar corporations or state power grids? >> that's a great point. we are facing a global epidemic of cyber attacks because fundamentally, the internet, that which we are using to connect our digital systems, is not secure the highest-end actors can get into your systems if they want to that means companies need to start rethinking about, okay, assume the worst happens how could i then get back up to business and running that may be having a whole separate system that is not connected with your main system that has your core functions in it, and we're just starting to see ceos and boards that i advise recognize that this is -- >> definitely the infrastructure is something that, for example, the new york stock exchange learnedduring september 11th, for example -- redundancy of infrastructure so that if you lose one set of computers, you can go elsewhere it was very intriguing when we started to talk about at the very beginning, which is why does ransomware continue to go
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on because companies pay it we had this conversation a lot during the whole somali pirates crisis, if you remember, and the answer was, don't pay them, and it will go away, but most companies said, good god, that means my employees will die, and i don't want that to happen, so they pay so, the number of kidnappings went higher and higher it's a really tough place for a company to be. does a company have a choice not to pay >> so, yeah, when i was at the justice department, i oversaw our efforts against terrorists, and sometimes they would kidnap for money as well, and the pirate initiative that you just discussed. look, i'll say one thing, companies today when i'm talking to boards, most companies today do not have any policy in place as to how they would handle a ransomware attack. i think they think, without thinking about it deeply, that their default response would be not to pay, but if it turns out that not paying might cost somebody's life, like in the
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case of a hospital, or put a company out of business and hit them so hard materially, in reality, there are factors that make them consider paying. i'm not saying whether they should or shouldn't, but i do think they should think about it before an event like today, where you only have minutes or hours to decide. have a policy in place >> right john, thanks so much for joining us >> thank you speaking of the cyber world, we have a news alert on facebook julia boorstin in los angeles with a new data point from facebook >> new data point from facebook's ceo, mark zuckerberg, announcing that the company now has 2 billion people using the service every single month now, that's up from 1.94 billion that was announced as of march 31st, so the addition of about -- going from 1.94 to 2 billion people in just 2 1/2 months now, facebook hit 1 billion people in october of 2012. the company has doubled in size in terms of monthly active users
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since october 2012 a couple more data points. the company saying every day more than 175 million people share a love reaction on facebook, and on average, over 800 million people like something on facebook. every single day, more than 1 billion people use groups every month. back to you. >> julia, thank you. to morgan brennan now for a developing story morgan hi, tyler. reports that a high-rise residential building in the german city of vupertile has now been evacuated due to exterior insulation similar to london's grenfell tower other details still unknown, but this as the uk investigation grows. officials say cladding samples from 95 buildings and counting have all failed safety tests, and now they're expanding assessments to schools and buildings in britain and arcconic continues to be in the spotlight for the panels used on grenfell, saying in a lengthy statement, "while we provided general parameters for
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potential usage universally, we sold our products with the expectation that they would be used in compliance with the various and different local building codes and regulations," also that "the product is one component in the overall cladding system" that they don't control the overall system or its compliance also adding that current building rules in the u.s., europe and uk all permit this type of material in certain building applications. even so, as reported yesterday, arcconic has stopped global sales of it for high-rise use, but looking at the stock chart, it is down another 5.5% now, 13% over the past week. >> why do you think that is? is that due to the loss of sales, or more likely, they're going to get sued like crazy >> i think it's the potential for the latter, just based on some of the conversations i've had with industry experts and analysts the actual sales part is still relatively small
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aerospace is their biggest division they also do a lot with autos and other construction it's the potential to be sued or litigation down the road. >> liability. >> liability, exactly. and it's also the fact that they're looking for a new ceo, and there's a fear that this pr situation could actually make recruiting much harder. >> do we have any idea, morgan, i don't want to put you on the spot, i'll ask anybody, maybe the audience, who the leading competitor is to arcconic? if they're going to get this pulled off, building is not going to stop. >> two things to keep in mind. first, there are a number of companies providing this type of product, particularly in europe. it is also one piece of an overall cladding system. you have other materials like insulation that go into the cladding system as well, but arcconic does offer several other types of cladding products, including one that is noncombustible, it is more expensive, which is one of the reasons that it didn't, likely, we don't know, but the reason it didn't get used on some of these buildings in the uk, but they do have other products if there was going to be a substitution. >> thank you, morgan alphabet leading tech and the
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nasdaq lower google has been slapped with a record $2.7 billion fine by the european union over unfairly favoring its own search results compared to rivals josh lipton is live in san francisco with the fallout josh >> reporter: well, michelle, american tech companies have been in the crosshairs of european regulators. now it is google's turn. today the european commission hitting google with that record $2.7 billion fine, saying that google is systematically given prominent placement to its own comparison shopping service and that it is demoting rival services in its search results google denying these charges and is now considering an appeal kent walker is general counsel, also seemed to try and shift the focus to competitors, saying "when the commission asked why some comparison websites have not done as well as others, we think it should consider the many sites that have grown in this period, including platforms like amazon and ebay." but eu antitrust chief marguerite vesteer was on cnbc
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this morning and clearly rejected that defense. >> in google shopping, you find sort of the bigger brands, those who want to have the customer relationship themselves, the data, the payment details, your search pattern those are two different things, and we're being very thorough in assessing this to make sure that we do not mix up markets and we don't >> the stock is down about 2% in today's trade. analysts do not think the fine itself is material alphabet boasts a cash pile here of $92 billion aaron kessler of raymond james says the broader question is whether google changes how it displays search results for those products in europe, but estimates any financial impact would be in his words minimal. guys, back to you. >> all right, josh thank you very much. let's switch gears to housing. a new report showing that once again home prices are rising across america, this as interest rates keep falling, raising the chorus of voices expressing concern about a 2007-like bubble
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in housing diana olick joining us from what may be the hottest housing market in the united states, washington, d.c. diana. >> reporter: you may be right. the latest gains on the s&p case-shiller home index hit a new high but were smaller than expected the national index rose 5.5% year over year in april, down from 5.6% in march the ten-city composite came in down from the previous month and the 20-city was up 5.7%, also down from march. now, here comes the perspective. these are prices recorded on closed sales in april, so sales that were negotiated in february and march. since then, the inventory situation has only gotten worse due to higher demand in the spring and still record-low supply seattle, portland and dallas reported the highest annual price gains, and seven cities had bigger annual increases in april than in march. now, s&p's david blitzer raised the question in the release of a
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potential bubble or even a potential crash, but then he knocked it down, saying that demand and employment still support the prices for now we also don't have a huge home construction boom like we did back in 2007 professor robert shiller did tell me that he does not believe home prices are too high in fact, he shows that adjusted for inflation, they're actually still below the peak of the last housing boom but these prices are a little old, and a new demand index reached a new record high in may. that means 9% more buyers requesting home tours and an even bigger jump in the number of buyers writing offers back to you guys. >> all right, diana, thank you very much. speaking of rates, we've got a new alert in the bond market right now. five-year notes are up for auction, professor santelli. how do you grade it? >> well, we gave the $34 billion five-year notes chapter two of the $88 billion in supply this week a c-minus the yield at the dutch auction
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1.828, so a little below 1.83, but it was a little above the bid side of the when-issued market, not much, but a little sloppy in pricing, 2.33 bid to cover, $2.33, chasing every dollar worth of securities for sale that was on the light side the only real solid area was directs at 9.2%, well above 6%, ten auction average. so, c-minus. we complete $88 billion in supplied amount with $28 billion seven-year notes and the sell-off that pushed rates higher overnight and this morning, based on what's going on in europe and draghi should have been a concession this auction really makes one scratch their heads. have we seen the lows on interest rates time will tell, but this auction gives us a little clue in that direction. back to you, michelle. >> important question. thank you so much, rick. all right, with us now to talk more about the health care bill, republican florida governor rick scott. before we get to health care -- welcome, by the way -- we want
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to talk taxes and a little state, you know, fight connecticut's lead -- i'm sure you saw this -- connecticut's leading newspaper just wrote an op ed saying you were "trolling the state," their word, to poach people and business to move to florida. they slammed florida's crime and traffic and said "mr. scott, head back to florida, solve your own problems, don't try to make ours worse." your response to the nutmeg state of connecticut >> well, i was up in connecticut to get more jobs for florida families that's what i ran on in 2010 and what i won for on re-election. we've added millions 6 jobs and we're cutting taxes, reducing regulation our job growth rate is i think three times connecticut's is we're at a 46-low in the crime rate our universities were rated as number one in the country. so we're headed in the right direction and we need more jobs. >> if i went into a corporation and went to a star salesman, and
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i say, come work for us, but you're standing in that corporation, people are going to chase you off. you were in connecticut. do you feel like they've got any kind of a point to say, hey, just don't come here >> i did it a couple years ago, the same thing i've traveled the country as the state's raised taxes and increased regulation look, what they ought to do is what we've done urks cut your taxes, reduce regulation you'll get more jobs i'm responsible for florida families i want more jobs in our state and i'm going to travel the country and the world to get more jobs for florida families that's what i ran on and what people care about. >> governor scott, you may not have to travel at all if, indeed, they eliminate the deduction for what people pay in state taxes when it comes to federal taxes. you've got no income tax, right? people might naturally come to florida because their tax bill is going to go up so much more in states with high state taxes. >> absolutely. we already have about 350,000 people moving to the state a year, and they're moving because we have better weather, better taxes, great education system, a low crime rate but as those states, whether it's because of the federal
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regulation or laws or whether it's what their states are doing, more people are going to keep coming to our state because it's a great place to live. >> are you in washington right now, lobbying to say get rid of that deduction for states? >> no. what i'm lobbying up here on is to make sure we get a health care bill that's going to be good for florida families. you know, here's what's interesting, we pay federal taxes just like every other state, our citizens do, same rate, and we get paid less under our medicaid program than other states that's not fair. so, we ought to get paid the same rate for our medicaid program as other states. >> critics will say, wait, wait, wait, governor scott, you chose not to do the expansion, so therefore, you don't get more money because the choices you made >> well, we should get a per capita the same amount we can decide who we want to cover because we want to have a system where we make sure people get health care. i grew up in a family without health care insurance. i watched my mom struggle for health care for her brother, who had significant issues i know the importance of health care but i also know the importance of making sure people can afford health care. and what's happened with obamacare, the cost of health
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care has spiraled out of control. it's on a death spiral i'm fighting for what's good for florida families we've got to make sure under medicaid we get treated fairly, and number two, whether you have a pre-existing condition or not, you should as an individual get to buy the plan that you want, not something the federal government tells you what you have to do. >> are you happy with the gop senate bill? would you vote for it if you were a member of the senate? and do you worry, by chance, that the gop will now own whatever problems ensue as a result of this bill? >> i think it's very important to repeal and replace obamacare. i'm up here as a governor. i don't have a vote. i'm up here as a governor trying to make sure the bill is good for florida families i know the bill is a work in progress i met with vice president pence a little while ago i'm meeting with a variety of senators, including one of my senators, rubio, and then mitch mcconnell. and my job is to do everything i can to improve it, make sure that it's good for our state >> but to the spirit of tyler's question, the way it's
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structured right now, would you lose or would you gain is it unfair the way the senate has written the bill >> well, it's clearly, right now we're not treated the same way as a state like new york you look under our basic medicaid program, we have more people on our plan than new york and we get $14 billion out of the federal government and new york gets $23 billion. >> even though they have fewer people on medicaid >> say that again. >> even though they have fewer people on medicaid, they get more money than you? >> way more money than us. we have about 3.9 million people in our basic medicaid program, new york has 3 billion we get $14 billion a year and they get $23 billion -- >> is that why why is that? >> it's just history and so, it's not -- it makes no sense. our federal tax rates aren't lower, so why would we get paid less instead of paying these taxes,
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we should get treated fairly like every other state a state should get paid per capita by whoever they decide to cover under their medicaid program. >> a lot of disparity there. good having you here appreciate it. >> have a good day. >> you had a lot to say about our health care debate yesterday and we want you to get involved. today we're asking, should health insurance be more like car insurance? buy it yourself, don't get it through your employer. you get a better rate if you drive your car better. e-mail powerlunchcnbc.com or send us a tweet @powerlunch. we'll debate it, straight ahead. >> announcer: you're watching "power lunch" with michelle caruso-cabrera, brian sullivan, tyler mathisen and mis lelsaee on cnbc, first in business worldwide.
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yesterday on "power lunch," we debated whether older americans should pay more for health insurance since they use more health care, sparking another question, what would the health insurance market look like if the government and employers got out of the business altogether? what if individuals got their health insurance the same way they buy car insurance could that be the ultimate fix to our battered and broken system a lot of you actually sent us e-mails suggesting this very thing. joining us is michael tanner, senior fellow at the cato institute, and sam burger, senior policy adviser at the center for american progress gentlemen, good to have you here mr. tanner, i think you like
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this idea, right >> well, absolutely. our current employer-based health insurance is essentially a relic of world war ii-era price controls it means that your boss gets to pick your insurance policy, not you, even though he may have very different priorities. it means if you lose your job, you're likely to lose your health insurance and it means that you have no incentive to be a rational shopper for the best deal, that essentially, because someone else is paying for your health care, you have every incentive to push for, to maximize utilization and drive the cost for everyone. >> i think of two immediate things, if everyone was buying their health insurance, the individual market would actually be of a very big and good size, because right now the individual market is very, very teeny, one of the reasons why we're seeing so much trouble. and also, if it were more like car insurance, you could be rewarded for good behavior >> well, absolutely. look, you can't drive your car into a tree and then turn around
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and pick up the phone to buy your auto insurance. you have to buy it before you utilize it, and that's a problem with the health insurance market, is essentially, we're allowing people to wait until they get sick, and then we're expecting health insurance to cover them that's not insurance that's just paying for health care >> mr. burger, what do you think? >> well, we need to have a regulated market you know, this conversation about sort of dereg lating the health care market, we know what that looks like. it looks like the market before the affordable care act -- high costs, people with pre-existing conditions kept out of the market, millions more uncovered as well. insurers competing to get the best customers, not over the best product for the best price. >> but isn't the insurance market regulated we're not talking about dereg lating insurance we're just saying make it a different market structure which you would be free to regulate. >> well, if you're talking about moving from the employer-based system to putting everyone in an individual marketplace, you know, that's what the affordable care act is doing for folks in the individual market.
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obviously, we have 150 million people in the employer-based system, so you would want to be careful with any sort of change not to be disrupted. but as i said, it's important that you have guard rails in there to ensure that there's quality affordable care and that insurance is meeting basic standards. >> let's break this down a bit you mentioned there are 150 million people who get their insurance from their employer. if instead they were buyers on the individual market, you would have a much larger risk pool, wouldn't you, to offset the sickest in the group >> well, you mean for the individual market? >> yes. >> sure, you would have a larger pool there, and i think the question in part would be, what would be the restrictions that you would place on insurers in the market what would you do to make sure they were offering quality products that people were able to afford those products i mean, there'd be a whole set of steps there, but i think you also have to think about the transition you know, there's a lot of talk -- people like their employer-based insurance and so, if you have a plan to move them off it, people are going to be concerned about that i mean, i think if we want to
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talk about that world, the real key is having, first understanding how that transition would be made in a way that wouldn't be incredibly disruptive for folks, but also making sure the insurance market they're moving into is adequately protected. >> if we solve those two things, would you be happy with it >> if you could, and that's a big if, i think that would be an interesting thing to consider. if you look at what congress is doing to figure out the health care system, they're not doing a good job >> they're talking about medicaid, right? they're not trying to figure out the individual market -- i'm sorry, brian is trying to get in my ear. >> they're trying to figure out how to basically pay for a tax cut by kicking a bunch of people off health care and making everybody else pay for less. my point is we're not having any serious conversation. >> sam on that point, because i've argued -- listen, we're arguing about how to pay we're not arguing about why it's so expensive in the first place. to your point, medicare has grown 19,900% since 1970 the population's up 50%. is that acceptable to you? at what point do we say enough
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spending is enough. >> well, i think this is a question we have to have about what we think it means to be a community and care for our own, to take care of folks. >> nobody's saying we don't care of folks, but -- >> well, but the question -- >> the cost of medicare has gone up 20,000% in 40 years, and the population has only grown 50%. >> doesn't it really come down to a question of whether health care ought to be a private good -- >> if i can for a minute -- >> or a public good? isn't that what it comes down to. >> >> look, can i jump in here there's no health care system in the world that provides unlimited care to everyone for free every health care system in the world rations care in some way we ration by price, others ration in other ways the idea that there's some sort of unicorn out there that provides everyone with health care, that's just a mythology, and to try to make that the loadstone is guaranteed a bad policy. >> just to be clear, i don't think anyone was suggesting that we give care to everybody for
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every singile possible conditio, but talking about allocating resources in this country, it's important to think what we owe to folks, what they should have in terms of high-quality health care. >> nobody wants to take health care away from anybody, certainly nobody at this desk. >> i think there are a bunch of republicans in the senate right now that maybe do, but keep going. >> no, it's fine it's a passionate topic. the point is, we want to provide health care to everybody, great health care to everybody, but if costs keep going up, you're going to be unable to do it. what is the fine line -- hold on what is the fine line between asserting a little bit of self-reliance, which i think is michelle's point, into the health care system, and also making sure we take care of everybody? how do we make sure that the 6'4", 320-chain smoker is not paying the same as the triathlete >> let's remember that the very first insurance company in america was a fire insurance company in philadelphia, started by ben franklin. and he charged people who lived
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in wooden houses more than people who lived in brick houses because they had a higher risk. >> now he'd be called cruel. >> insurance, especially in a business of spreading risk, is not simply a form of redistributing wealth or health care if we want to redo those fujs fujss, it needs to be outside of the system instead of distorting the marketplace in a way that drives up the price for a majority of people in order to solve a problem for a small number of people. >> isn't it also a question, michael or sam, of transparency, which then reverberates through the system in a way that makes the individual customer not very price sensitive? someone else, as you began the discussion, michael, is buying and paying for the largest portion of my health insurance bill somebody else is doing that for me i'm employed here. i pay a lot because i pay deductibles and co-pays and all of that stuff, and i can't figure out what the charges truly are, because some third party is paying for it it's price sensitivity, and
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ultimately, until you get to a point where the individual customer is price aware and there is true transparency in it, you've got a problem, don't you? >> so, i think there are two questions. obviously, it would be wonderful to have more price transparency. i think the affordable care act takes steps in that direction in terms of allowing people to easily compare plans to each other, making sure the plans provide a basic standard package of benefits, but it's also making sure that folks are able to afford quality coverage, right? it's not just an issue of knowing what everything costs. i think that's important and the affordable care act has made great strides in driving down the cost of care. >> what if the transparency is what gets you there? what if the individual being deeply involved, sam, is actually what arrives at that point, right they're inextricably linked. >> so, i think it's certainly a factor i think that a reference was made earlier to there not being any unicorns in this world and i think the idea that the transparency to bring us down there is just such a thing ultimately what we're going to have to do is decide what we as
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a country want to do to support people in health care -- >> yes, a national conversation we all need to have, yes usually means whoever's launching it wants their answer to be the right one. guys, we have run out of time. great discussion likely to have you back. >> thank you so much. >> michael and sam we want to hear from you should you buy health insurance like car insurance no government, no employers. you buy an individual plan directly from insurers e-mail powerlunch@cnbc.com or tweet @powerlunch. we'll have your responses at the end of the show. and the battle over sprint after much speculation that t g etitor t-mobile was gettin sefor a bid, new emergers. s onlk a benchmark. flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors.
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hello, everybody i'm sue herera here's your "cnbc news update" for this hour. house speaker paul ryan says he has every expectation that the republican-controlled senate will pass their health care bill he told reporters they campaigned on repealing and replacing obamacare and made promises to their voters that they would carry that out. >> i would not bet against mitch mcconnell. he is very, very good at getting things done through the senate, even with this razor-thin majority i have every expectation that the senate -- i don't know what day, but i have every expectation the senate will move this bill. and i assume this bill will have
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changes. los angeles officials are demanding that the fast-food chain karl's jr. fork over $1.45 million in penalty's and back wages for failing to pay dozens of workers the city's $10.50 minimum wage from the period of july to december of last year. cke restaurants, the parent company, says it's already paid the employees the $5,400 they were owed in back wages. fireworks are being recalled in four states due to burn and injury hazards it involves tnt red, white and blue smoke fireworks sold in illinois, ohio, vermont and wisconsin. you're up to date. that's the news update this hour brian, back to you. >> all right, sue. thank you very much. fed chair janet yellen is speaking in london right now and sounding optimistic that banks are "very much stronger," judging by how major institutions did in a recent stress test. she predicted that another financial crisis like the one
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that exploded in 2008 was not likely "in our lifetime. >> seema moda now with "market flash. welcome back. >> looking at financials, moving higher, up more than 1%, this as yields are on the rise on positive remarks from ecb president mario draghi take a look at two of the biggest banking etfs, kbb and kre, which track the regionals, on their pace for their best days since june. bank of america, suntrust, k keycorp among the winners. financials have regained ground, brian up about 5% so far this month, debunking that whole sell in may and go away theory. >> seema mody, great stuff from the white house yesterday. t-mobile getting a big surprise from sprint and shares taking a hit that's news that is losing t-mobile invtoesrs some money today. we'll tell you what happened, coming up.
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welcome back to "power lunch. i'm josh lipton. some breaking news here on nvidia cnbc has learned that nvidia is going to launch graphics cards
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specifically designed for cryptocurrency mining. so, it sounds like nvidia here is going to produce chips designed to do the computing work to make, for example, bitcoin. not clear when these cards exactly are going to be available for sale, but obviously, there's digital currency prices, we have seen those surge. bitcoin's up around 140% so far this year. that, in turn, drives demand for these kinds of graphics cards. cryptocurrency miners use the cards to mine new coins. as to how big that is, chips for this market, i've seen the estimates of about $1 billion. guys, back to you. >> that's pretty interesting it's kind of like when caterpillar or some heavy equipment-maker makes a better machine that can drill deeper. it's pretty cool >> all right, josh, thank you very much. sprint shares are up nearly 5% today on a report that it is talking with cnbc parent comcast and with charter communications for a possible wireless deal this is also sending t-mobile shares down 2% with us now, craig moffett,
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founder and senior analyst at moffett nathanson. craig, good to have you with us. >> thanks. >> why is t-mobile down so much? is it on the theory that the rumored deal between sprint and t-mobile is now less likely to happen and that sprint now has some negotiating leverage that t-mobile doesn't >> yeah, i think that's basically right. now, part of it is that the article this morning in the "wall street journal" said flatly that the negotiations between sprint and t-mobile about a merger had not progressed to the point where they were -- a deal was imminent, and therefore, now there is a standstill. and so, people are simply taking that at face value and saying it looks like the odds of a deal are a little lower than they were before. >> and so, sprint feels emboldened, then, to have conversations -- or maybe emboldened's not the right word -- but feels like, okay, if that's not going anywhere, maybe we should go out with these more
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willing collaborators, comcast and charter. >> that's right. look, nothing in this deal, at least from what we know about this so far, and admittedly, that's not all that much. >> yeah. >> but nothing that we've seen so far suggests anything that would make it less likely that a sprint/t-mobile deal will happen because of the conversations between the cable industry and sprint. >> but it is kind of that idea that if you're not going to marry me, i'm going to go date around, right? >> yeah, that's right. but it's also an interesting hedge in that the cable industry is hedging against a future where sprint and t-mobile do get together because remember, they're very dependent on a mobile virtual network operator strategy. that is to say, wholesaling capacity from verizon. they need verizon to be a good actor to give them good terms and to be flexible and to be a good partner that's a lot easier if they have somebody else waiting in the wings. and if sprint and t-mobile merge, it's harder to get that
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deal with sprint and t-mobile. so, they've effectively hedged for what happens if sprint and t-mobile merge we need something to keep verizon honest meanwhile, sprint has hedged to say, if a deal doesn't happen with t-mobile, we'd like to have at least a few other irons in the fire, and it does give us more negotiating leverage when we sit down at the table with t-mobile going forward. >> as always, great to have you on, craig. craig moffett, appreciate it. >> my pleasure. we're just two weeks away from our 11th annual countdown of america's top states for business and as in just about everything else in our lives, these days, donald trump looms large as president, the white house cracking down on immigration, including the travel ban partially being upheld by the supreme court yesterday, is complicating an already intense battle for workers scott cohn is in one of the major battlefields, silicon valley, with a look at what's at stake. >> reporter: well, quite a bit is at stake, michelle. and really, in a lot of ways,
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this is ground zero of the immigration debate when it comes to business. we know from doing this year after year that one of the areas where california consistently does well, a lot of areas where it does poorly, but one area where it does well, technology and innovation and business leaders here in the valley say they could not do it without immigration. >> it comes in the way of your ability to fill critical roles for you to be able to grow the business, for you to launch new products, for you to hire engineering talent that we just don't have available >> reporter: we've been talking for several years now about the nationwide skills gap, companies unable to fill positions with skilled workers. it's the reason that workforce is the most important category in our america's top states for business study, worth more points than ever this year one way that companies and states are addressing this is through the use of so-called h1b visas. those are the visas for hiring
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specialized workers. the big states that are doing it in a big way, of course, california, but also new jersey, delaware and massachusetts, though the workers that apply from there often end up elsewhere. now, with the administration reviewing the program for the first time in many years, h1b applications are down. the former congressman who helped write the law says it's right to review the program. >> we need more s.t.e.m. workers. we need them to come from the united states, and we need to fill gaps. right now, we are bringing people into the h1b program and preventing americans from going into those jobs. >> reporter: also, apparently on the chopping block now, a program for start-up visas aimed at entrepreneurs that apparently is on the way out. we look at entrepreneurship, tech workers, all of that in our annual top states for business study. two weeks away from our 11th annual rankings. you can read more about our study and about this issue, topstates.cnbc.com
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guys >> scott, we'll see you in a couple weeks, man. look forward to it thank you. coming up, why one fund manager is staying long and strong oil stocks and sees a second-half comeback, even as oil ays stin the mid-to-low 40-buck range. stick around the middle 40 bucks range. stick around so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. (baby crying) ♪ fly
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markets alert. the market senate is delaying te healthcare bill until after the 4th of july. it is pretty sharp for the dow or the s&p 500 after the 4th of july research time off, industrials and nasdaq and the s&p 500 similar in the chart time now for trading nations, lets look at energy stock. that would be the longest mo monthly losing streaks tim, i will start with you >> good to be here we know you like evidence by
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your stock draft strategies and bottom feed when you see values. you see values in the mini energy stocks right now. >> a lot of the names in the same way, a bomb daddy distress name maybe great for a stock pick in the power lunch draft. those companies that can have maintenance cap act or $40 or $50. i think those are the ways to play the space i don't think there is an enormous amount of guide those are great balance sheets and great companies that can be opportunity stick. >> erin aarons, what about you >> we are seeing expectations going about 40% growth to just
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above 300. until these earnings stop plummeting and e actually stops dropping then you can see evaluations. right now evaluations is really high and we still see decline. >> erin gibbs and tim, thank you for that >> for more trading nation, head to our website on cnbc.com now, lets get back to tim. stock draft valiaeant takes the lead i have a feeling, you are not allowed to sell under our gain until next year. people followed your advise and bought it for stock draft, should they be trending if they can? >> the story has a great run
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do what you want with the profits. here is the story for valeant last week goldman did a call with the company what we are hearing is that the action and the ability to bring generic of one of the key drugs for the company, at least for now, it looks like it is not a threat the company is streamlining their business, they don't have to sell assets here. could the company continue to rerate from here i think it can and investors are pleased with the team. it is been an opaque story for the last couple of years this management has been accountable and transparent and let people know about the plan and where they are divesting an
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where they are not >> tim, thank you. we'll get more from the healthcare bill from dc after the break. >> the latest from trading nation from cnbc.com. the words from our sponsor >> short stocks involved in limited risks. you must have a plan >> firlook for the stocks with e poorest technicals in that group rid finally incorporate sk management techniques in your order to limit potential losses.
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welcome back to the second hour of "power lunch," breaking news out of dc, the senate is delaying the healthcare vote after the 4th of july. nbc has confirmed the vote will
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be until after 4th of july recess the white house will be hosting for gop senators for a meeting there to discuss the path for healthcare senate erraor rand paul was at white house earlier this afternoon, he's been one of the hold outs on this bill he tweeted a met a meeting thate president is hoping to make this bill better. still no consensus on what they want to see at this repeal >> i heard there are still six senators that's still opposed to it >> four republican senators who is against voting to move forward with debate on this bill, that included susan
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collinss of maine and dean heller of nevada there were several more senators who were undecided on the substance of the bill itself senate majority mitch mcconnell is expected to address reporters and lining up a lot of reporter's familiar faces there. lets put another calendar item on this as well. lets not forget, this will will lead only six working days when they come back on this break to the five week long summer rec s recess unless they cancel the summer recess, that puts the time to get this vote done, compressed to just two or three workweeks, that's it. >> there is already been some call of the august recess later
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in the summer of the house and caucus saying lets continue to meet and move some of these legislative items. these are important to get done. because they have to get done with healthcare whether it passes or fails in order to move onto the tax reforms there was initially expected to be a mark up of the budget this week at the house. that effort has been delayed until after the july recess. >> they cannot do that until healthcare is put to bed in some form or fashion, thanks so much. we are talking about the markets, bob is at in nyc, we are seeing a big mover >> you got it. the trump's agenda look at the s&p 500, we have a program going through. the market where typically some of the big momentum names came through. you just said it
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lets take a look quickly at the healthcare names look at hca, it deplalays to th extent that maybe this bill will not go through, so it is less unensured americans out there and you see it is not moving too much we did see a slight move in the overall healthcare atf if you want to look at that in the middle of the day, more importantly how it affected big momentum names if you look at the semiconductor, a lot of momentum people hanging out immediately starting to move downward. your facebook and amazon and google and microsoft, all moved down quickly on this news. i think you got it right, michelle, to the extent that this interrupts the trump's agenda, you will see the markets pull back a little buy what kind of premiums in the market there is something there because we saw the reaction. how much more? we don't know. the entire agenda is not
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threatened yet >> bob, on that note lets bring in our senior contributor and our former adviser under president obama. >> larry, you brought up so many times that there is barely enough calendar left to do a small amount of tax reforms if you want to do corporate tax cuts >> if windows getting smaller and maulesmaller, are they goino blow this? >> no one knows for sure >> no august recess vacation, none nada stay there work like the rest of us that's what hay are pathey are . get the healthcare thing done and attach to it in the same reconciliation bill of the business and tax cuts, that's legal and technically correct. steve moore and i have a lot we
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all agree and you get no tax cuts and healthcare and august vacation that's got to be it. no august vacation so get your work done. none, zero nada >> what does the president say that to congress is there a moment which he might. >> well, he hinted at it in private meetings and he made it known. if i am not makiewiistaken, he h if it was a good idea or interesting idea the word is getting out. a lot of support for this in the house. a lot of support >> the president of the gop caucus at the white house and maybe that very point will come up austin, what do you make of what's going on with respect to
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healthcare in washington by the way, if the senate gop passes the bill, they have to go back and reconcile with the house and that's not -- that's not an easy needle to threat in some sense, the difficulty of doing that, i think has put the house in a position that a lot of the objections that they had they thought the bill was too liberal. i think they'll pass whatever the senate passed even if they did not like it. i think they know it tremendously hard to pass it >> larry can say he wants to put up a sign, no shoes and shirts and service. that's no the problem. the problem here is the details of the health plan we are not worked out in the campaign and not worked out in the transition and they are fundamentally trying to do a bunch of contradictory things that did not work. this is obamacare but worse.
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you got liberals saying 20 plus millions are kboigoing to lose insurance if a bunch of people providing insurance holders are going to have prices going up. i am going to hear it from my constituents and now they're going home for their 4th of july recess recesses i think they're going to beg to follow the plan. they're going to get their ears chewed off by their own constituents >> when you peel this back, if i might just pose a question for you, i heard senator graham said yesterday something to this effect the gop in the senate and the house knew what they did not want they knew they did not want obamacare. but, they did not know what they did not want is that a fair assessment? >> you know, they passed many bills in the house you had very popular senate plans that are very much like
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the house plan i think when and if the senate passes its on version, the house is going to buy into it and we'll all live happily ever. >> with no insurance >> well, i am not sure if we'll all live happily after but who knows. >> i don't agree with that cbo assessment i think the cbo has a long history and we don't know their models none of these models worked. austin helped author obamacare a whole much of people were at the adverse election and the young people do not want to buy into it. deductibles were jumping the things need help is it going to be perfect? no it needs a lot of help and i
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think on some of the basics as i read it, you are going to get 75% or 80% of what each side want i think that's the way this salami sandwich is going to be sliced up. the economy is getting weak in here >> i need protection >> austin, i want to switch it to paying. >> should americans pay more for their healthcare, cms, center for medicaid put out a paper years ago of 23% in 2013, the cost warned by the government have doubled over that time and taking us away from that touch as you guys in the economic world might say that price sensitivity, do we need to pay more ourselves so we can be more aware of the spending? >> you know, i will tell you yo are tapping in an important
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issue. >> take aside on that war. >> i think preventive care and chronic disease management go the other way. if you make everybody pay out of pocket, you got to pay $150 to get your blood pressure checked, you are going to have raging high pressure because people are not going to go to the doctors and it is going to end up costing the government more than if you put in the preventive care >> some elements >> gentlemen, hold on just a second larry, stay where you are in beautiful connecticut and austin stay where you are in more beautiful aspen. we'll go to breaking news with leslie picker. >> mcconnell -- that news is based on a letter exclusively
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from abc that mcguire said to the board. >> now, several months after mcguire disclosed a 6% stake in deckers. in the letter, mcguire says the process has lacked transparency. he adds the current board and management team has a history of missteps that caused him to be concerned whether a sale will result in the maximum value for shareholders he points out the chairman martinez started a campaign to be the mayor of santa barbara. marcaa is up by 8% this year >> it is hard to run a congress and the economy >> it is >> this is a shoe company, right? >> i was going to ask.
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>> santa barbara though. >> surfer shoes for australians. >> yeah. >> put them on cold feet >> just a little bit random tribute. >> thank you >> senate pushing back its vote in the healthcare bill until after the 4th of july, senate's recess, mitch mcconnell is set to speak momentarily we'll bring it to you live today it is expected that shawn spicer will be on camera and is expected to join by rick perry, we'll take you live to the white house and sete, nathe capitol of wall streets, dc, rolls on at fidelity, trades are now just $4.95.
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. breaking news of the last 15 minutes causing the market to fall senate will delay the healthcare vote after the 4th of july this is a live picture, we are car carrying live. they are all moving lower on that news, the s&p 500 and nasdaq and dow the longer they take on healthcare, the longer they'll get to the tax reforms >> how will the delay in the healthcare vote play out in the market >>less bring in our insights
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investment of north america ceo and karen kavanof. karen, let me start with you, how do you see mr. mcconnell will pull the votes after the holiday and will this delay tax reforms and cuts >> absolutely. it is short term on certainty but the market does not like certa certainty. for every step back, we see two steps forward. even though this is a little bit concerning or a little bit delayed, investors want the main course and the tax cuts and regulations. we'll get that so it is just a short term uncertainty for now >> cliff, why is nasdaq getting h
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hit on the nose? >> the stock market down is, this is exactly the worries that the markets have the longer delayed of any kind of inflation component in the agenda >> i want to jump into note. what we have seen, lets not forget that the healthcare bill is a tax bill. there is a huge amount of tax cuts that are built in the healthcare bill. maybe this is the tax bill that the market is wanting to see >> i think certainly politicians, i would say this on the wall or the two basic tax cuts, of course. i would take a little bit of a debate in terms of a tax cut what point does the delay in healthcare modification take the broader tax cuts off the table >> i agree, i think both cases, it is a matter of discounting
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back a longer time and maybe it is not tax reform. maybe it is just a tax cut like in the early '80s. >> karen, where should i put my money now, if i got an extra $10,000 to deploy, what would you suggest i do with it >> i would say you take this as a little bit of a pull back and get in the market. we'll get tax cuts and reform and it will happen eninvesto investors who are sitting arnoud and waiting for it to happen is going to be in the mark. reform is going to be a good place to be so i would be in the stock market >> all right, folks, thanks very much we appreciate it >> lets bring back larry cutler, on the left side of our screen here for viewers at home
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wa we have a live picture for mitch mcconnell to come out. austin, if you advise him when choe cho he comes out here, what should he say >> look, you are always when you come out in a situation like this, you are in a bad spot because everybody knows you are trying to do something and you were not able to pull it off. i find that even though it is going to make it squirmy and uncomfortable right now. come out and over load are pessimi pessimism. if you are able to pull something out of the hat, the opponents don't gear up as much of opposition because they think they already won >> did you hear our decision cushion on stocks? >> they are getting tax cuts regardless of what they are seeing here on the left side of the screen >> i think so mideasyself.
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somebody made a point, i think it was taller. i am not sure who and i cannot see you all. part of the roll back of obamacare is a significant tax cut and reduction in regulations. i think it is not just getting clear to cut the taxes so far. by itself, these reforms of obamacare are good for health and they're good for growth. >> the idea is a lot of people, i realized that it is healthcare and healthcare, massive tax changes in this, americans for tax reforms obviously conservative group had a piece in the hill today saying this is as giant middle class tax cut, the healthcare built if it passes >> you are diluding yourself
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>> that's going to kill this bill >> my point is, it is going to get it killed. it is high income people's capital gain tax rates is going down look at how much your premiums are going to go up and how many people losing their health insurance and they're going to say look at how big of a tax cut this is for donald trump and his family i think it is going to kill this bill >> i think so austin, with respect, taxing the rich does not work for you taxing the rich does not work for the democratic party you are losing these bio elections, that stuff is not helping. you need to have e &help meggeta corporate tax cuts in. if you get rid of these mandates, the overall and the so called essential benefit mand e
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mandate, you are seeing premiums dropped substantially and the demand for insurance policies with greater choice will be up you see i don't agree that it is a true, quote on quote, 22 million members are going to lose their insurance >> premiums matter i don't think the republican party have made the case we talked about religion and politics before. the gop got to tell people why their plans will lower premiums and afford more choice of policies they have not done that and they got to really do that. look a t the polling on this it is going against gop so far by a large margin because people are not happy with what they hear and the gop got to rebut that they got a selling job to do
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>> what's going to happen with medicaid and there is little coverage of what's happening with the individual market >> austin, address what larry said early on. is taxing the rich a loser for your party >> the special elections are in republican districts >> i think either way we put too much weight on special election. >> this one was already done this was not the democrats saying lets tax the rich this is completed the republicans are doing a thing of credible observers are telling the americans people this is going to raise your prices dramatically more than what they would go up for obamacare that literally tens of millions of people are going to lose their insurance, why simultaneously literally, millionaires are going to get multi thousand dollars tax cuts >> austin, do you believe the
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ceo has in its core capacity determines how the market is going to play out and how many are losing their insurance >> come on >> they have done better than any of the private sector forecast >> austin, i am going to raise you on this. i hear your points of the wealthy. you can say about this under this plan, i believe it will kill the taxes and obamacare posed on house saving accounts and i am getting conservative groups suggest that's a tax on 20 million middle class families that'll go away. >> data show that 85% of the money is going to people at the
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top 1% regardless of which exact number or which exact tax, i think larry is right the republicans have got to try to change the narrative that it is not taking away the insurance that we are going to do things that raises prices the only problem is those are the facts o f the bill that's the major problem of trying to describe it as something else is that's what is in it. the worse thing that can happen to republicans is that people actually reap this if they read this, the opposition is bigger than it is there. >> gentlemen, i have to leave it there. larry, thank you very much >> great to see you. >> the senate is pushing back its votes on the healthcare bill until after the 4th of july recess senator mcconnell is set to speak momentarily. we are waiting for the white
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house's press briefings expected where sean spicer will be on camera he's expected to be joined with senate eric perry and he will take questions about the healthcare bill and a meeting later this afternoon with the senate's gop conference and the president. live at the white house or capitol hill when we return. >> drum roll ♪ at johnson's we care about safety as much as you do. that's why we meet or exceed 15 global regulations for baby products. and where standards differ, we always go with the toughest.
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all right, some breaking news at this hour, the stock market is down 29 points senate majority mitch mcconnell is set to speak any minute now we'll bring it to you live >> nbc news is reporting that mcconnell met with the vice president where they discussed
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healthcare we are trying to find out whether or not where the decision is made marco rubio just addressed reporters. senator keselowski says funding for planned parenthood is the one concern for her. >> there are still a lot of ground for lawmakers to cover before they can come to c consensus and remember vice president pence invited some to dinner tonight to discuss the p pass for the bill. we'll see if that's happening to scheduled for the 4:00 p.m. meeting. >> you kind of have because as i recall back when the house passed its version of healthcare reform, they postponed the vote, we are going to vote and vote and they did the same thing.
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am i remembering correctly >> oh, we got rick perry we are going to go to rick perry in the white house's brief room. >> i have relative to energy week the trump administration will bring together state triable, business, labor, all together, one room sitting down and discussing how we are going for go forward and what the path forward is for u.s. energy dominance and president trump wants america to achieve energy dominance by utilizing our abundance resources for good both here and abroad, a dominance self reliance and
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pure nation and free from the justine s geo political term oil and energy down on america will export to markets around the world and increasing global leadership and influence doe and across, we are ending this that has hindered the american energy. the united states has been a net energy export, excuse me, net energy importer since 1963, almost as long as i have been alive. thanks to innovation, technology advancement. we are on the brink of changing this and in very important elements of an american energy portfolio.
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ten years ago, people would never have guessed that by 2018, the united states expected to be a net energy export of natural gas. american companies can and have exported u.s. to our national partners of europe and asia. this week, we'll also reaffirm our commitment to clean energy that by choice of proeconomy and perpetuated by the obama administration is set up a false argument the fact is we can do good for both and we will there was one fact missing from the headlines with the u.s.
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withdrawal from the paris agreement. the united states already leads the world, we have done this through innovation and technology and not by signing agreements the paris agreement put the taxpayers on the hook for a costly deal. there is a billion dollars already out the door thankfully, this president has stepped in before billions more had been committed we have seen the fruit of innovative clean, technology like ccus, carbon capture and sequestration. then it uses it to capture carbon for enhance or recovery instead of preaching about clean energy, this administration will
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act on it. i believe no clean energy portfolio is truly complete without nuclear power and so does the president if you want to see the environment and the climate that we live in affected in a positive way, you must include nuclear energy with zero emissions in portfolios. do it safe and thoughtfully and economically under the leadership of the united states, the world can benefit from it. this administration believes that nuclear energy development can be a game changer and an important player in the development of our clean energy portfolio globally i believe we can achieve this by focusing on the development of technology, for instance, advance nuclear reactors or small modular reactors under president trump's leadership, we'll continue to
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advocate for a very broad, all of the above energy portfolio to allow the united states to achieve independence and creating jobs beyond this 6.4 millions of americans employing in that sector we look forward on how we can move forward to reduce unnecessary regulations and bureaucracies and to promote jobs and the economic growth for years, they have been over regulated by washington politicians and bureaucrats who believe they knew best lecturing is over with now, it is time that we listen with that, i will attempt to answer your questions.
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>> what do you want to do to accelerate in the development? the obama hadministration are bg down how do you deal with that and number two, if this administration does the best of your power, a >> it is a very estute question you asked. allowing nuclear energy to come and play an important role in a diverse portfolio. the idea that over regulated of an industry, that's one of the challenges
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it is not just about the united states from the standpoint of our being able to have an energy source that's reliable, that's zero emissions it is about america maintaining our regaining, maybe is a better word of a leadership role in nuclear energy the russians and the chinese are act tiively engaged across the board globally to put their technology to gain and leverage their political place if you will using nuclear energy as one of the ladders. so this is a lot bigger issues than just allowing the united states a couple of plants in the southern part of the united states, it is la lot bigger tha that it is a lot bigger than just making sure western house
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continues to be a stable economy. this is a massive issue for the security of america and america's allies >> we are listening to senator mitch mcconnell. we'll listen in. the conference on the differences that we have and trying to litigate, consequently we'll not be on the bill this week but, we are still working towards getting at least 50 people and at a comfortable place. we are going down the white house at 4:00. >> the president invited us to come down. the white house is anxious to help >> well, the schedule may have changed a little bit but one thing that has not changed is
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obamacare is collapsing. it is a failed system and needs to be replaced >> we believe that legislation we are trying to get up on the senate floor will take america in a better direction. it will help bring stability to the marketplace and affordability to people across the country who are suffering under thigh premiums and deductibles and high costs that has to be put to rest we want to make sure we are preserving the access that people have to cover for p preexisting conditions >> we want to make sure this is available for us seeing many experiences and examples working around the country where they are operating
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at an effective place. those are our objectives and it continues to be. as i said, while schedules may have flipped a little bit. we are intend from rescuing americans from a failed system that has driven their cost and made it difficult for them to find coverage. t >> the pain of obamacare continues to get worse around the country. >> i was in wyoming this weekend, many of them impacted in a bad way by the obama healthcare law she now, she and her husband have a policy, it is expensive and doubled in costs here deductible is $6,500 and as well as 6500 for him
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he said he will not go under the doctor according to them, he does not have usable insurance. >> there is a number of key points to it and the mandate that you have to buy we eliminate all tactics and we turn a lot o f authorities to individuals and states getting things outf things out of washington we always felt that we could do a better job helping more people and patients with healthcare >> we knew better at home than people do in washington. that's who you we feel it is very important in terms of putting medicaid on a sustainable path for the future. the states need the authority to do it in the right way >> medicaid was initially was
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charlotte up for tepihelping children >> signing people up for obamacare or able body working age are individuals. >> people are facing doubling rates of obamacare what we do looking at these rates and the cbo have scored. >> 30%, and a couple of years from now >> what's that people are screaming about at home and the increasing rates and projection next year are higher under obamacare. >> so obamacare is a bust and it is going off the cliff we are trying to rescue the american people from the bus that they are on >> no, we'll continue to talk about it it is a complicated subject. >> i remember how challenging it was for the democrats when they were enacting back in 2009 and
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2010 it is a big complicated subject. we got a lot of discussions going on and we are still optimist optimistic >> your ongoing discussions, does it involve in that press? >> is that an in vitemant of what you put forward members have turned a lot more time a number of different discussions going on and it is been going on for toxic weeks now. it is a complicated subject. they're hard to pull together.
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[ inaudible >> well, the president has been involved over the last week talking to members individually. we wanted to talk to all of us together today i think that's helpful and look, legislations and of this complexity almost always takes longer with anybody would have hoped >> we think the status quo is all sustainable for ov reasons that we discussed over and over again. >> we are optimistic that we'll get to a result. >> the president, is it going to
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be the president -- >> we always anticipated that the president is very important in getting us to a conclusion. >> after all, urnnder our syste, he's the man with the signature. >> in the early stages, we needed to get this far enough down in the path where there were a few issues. that needed to be close so we are laying the process so we can lay down the demand issues he's fully engaged and helping us everywhere in colluding this afternoon. thanks a lot >> that's mitch mcconnell conceding that the vote he's hoping to have this week will not be held.
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he's describing healthcare for everybody in this countries and saying it is ofbserve >> you have two different viewpoin dascan -- >> so much of that is meant for medicaid that's where all the trouble is. >> we are seeing for a healthcare bill not just healthcare or medicare or medicaid a tax reform bill in disguise as well changed a a lot lot of middle c bill lets also not forget that they
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come back july 8th, they leave extensively on july 1st, take out the weekends 16 working days the senate has >> which is why larry lewandowski also screaming out before recess. repealing obamacare is growth. they have to start supplying health insurance >> nose mandate goes away and the individuals made those >> exactly, exactly. >> we'll take a quick break and we'll come back and check in on the white house's press briefings. at last check, we saw rick perry
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with liberty mutual new car replacement™, you won't have to worry about replacing your car >> held pictures of working families who would be hurt by trump care. >> republicans were in their lunch with steve nguyen, a multi-billionaire who would have benefited with a huge tax cut. we're talking about average american working people. they are talking about multi-billionaires, and that's why they are in such trouble that is why they are in such trouble. cause their bill is aimed at helping the very wealthy whereas we are trying to hurt to help american families. we know the fight is not over. that is for sure we here not resting on any
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laurels, nor do we feel any sense yet of accomplishment other than we are making progress because the american people are listening to our arguments. over the next couple of weeks we know that leader mcconnell will try to use a slush fund to buy off republicans, cut back room deals to try and get this thing done, so we're going to watch this bill and all the machinations behind closed doors as there might be like a hawk, but the truth is the as cbo made clear yesterday, the republicans cannot excise the rotten core at the center of their health care bill no matter what treeks they may add in the next week and a half, no matter how the bill changes around the edges, it is fundamentally flawed at the center the american people don't want medicaid slashed
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they don't want help -- they don't want the help that they need to fight opioid addiction, to help their parents in nursing homes, to help those with pre-existing conditions, and just to help the average person who needs good health care the american people don't want all that changed and eliminated. the republican bill is rotten at the core the american people are not for big tax breaks for the wealthiest of americans, nor are they for dramatically cutting their health care. that's why the bill has about 17% popularity in america and even trump voters don't like it. that is not going to change with any little tweak that wins over this senator or that no matter what last-minute amendments are offered, the bill will force americans to spend more of their paychecks on health care, to receive fewer benefits so that the wealthiest
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americans pay less in taxes. until republicans abandon that core -- that core, that rotten core, they are not going to succeed in winning the american people over and it makes it much less likely that they will succeed in getting a bill done a week from now, a month from now, a year from now. the ultimate reason this bill failed is because the american people just didn't like it it's not what america stands for. you say will you work with your republican colleagues? we want to, and we have two suggestions, first, abandon tax breaks for the wealthy abandon cuts to medicaid and abandon repeal and we can sit down and talk about improving health care. we think the aca has done good we're the first to say it needs further improvement. we want to sit down and talk to you about it, but we're not going to be in a position where
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we say, okay, only 15 million people will be uncovered we'll support that bill. billionaires will only get a $40,000 tax break instead of a $57,000 tax break. that's not the kind of compromise we're talking about they really need supreme court actual revision and we have a second suggestion for our republican colleagues to work with us. abandon the closed door secret process they have used go to regular order. have committee hearings. allow amendments and go back to the idea that you need 60 votes, a bipartisan majority to pass a bill, and we can start over again and work together and try to get some improvements in our health care system, but if you're republican colleagues stick to this base bill, which so hurts working families, which so benefits multi-millionaires
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and them almost alone, we're going to fight the bill tooth-and-nail and we have a darn good chance of defeating it a week from now, a month from now, a year from now senator durbin >> you know, for the last several months with the new rope can majority in the senate and the house, we've seen a national debate on health care. i think it was long overdue. the net result of it today more americans support the affordable care act than at the beginning of the debate. as people reflected on what we set out to achieve with the affordable care act they realized how fundamentally positive it was for them and their families to get rid of the problems of pre-existing conditions, to make sure that everybody had access to quality insurance, to provide medicaid for those people who had low-income jobs and no benefits, who for the first time in their lives now had medical insurance coverage, to provide a subsidy, a helping hand, to middle income families to pay for their insurance premiums all of these things were kind of
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taken for granted. know think people appreciate that those fundamental values and principles really are important for the future of our health care system the republicans just didn't get it from the start. they thought if they said we're against obamacare that's all they had to say, but the american people demand more when it comes to leadership not just to oppose something but to have a better idea, and the republicans failed to come up that better idea they asked me my reaction to this news today from senator mcconnell. it's not jubilation. it's frankly relief. relief for the 22 million americans who will not lose their health insurance because the republican plan, including a million in my home state of illinois, relief for senior citizens who faced dramatic increases in the premiums they were going to have to pay for health insurance, relief for my rural hospitals in downstate illinois, the heart of red section of our state that went strongly for donald trump. these were the hospitals that were in danger, according to the hospital association of gutting back their services and their
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employees and maybe some of them even closing i feel some relief, but i don't think that this party is over. i think we're going to have to address this issue and should from this point forward, and it isn't based as senator schumer said on the bill that's been introduced this republican repeal bill is not some fine wine that gets better with age. it turns sour, and the reason it turned sour is people come to understand what's included in this republican package. they are not going to buy on to this idea that in order to get a tax break to the wealthiest people in america we're going to cut the guts out of the health insurance system across this country. they want to make sure, and that's why we have the support as we look around of the medical advocacy groups, of groups like heart and lung and cancer, and groups like the congressional budget office which that analysis did more to strike a dagger to the heart of this republican repeal than anything else i listened to some of my republican colleagues who came before this microphone a few minutes ago preaching
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flexibility, flexibility flexibility is not the same thing as funding that's why republican governors in nevada, in ohio, even in illinois came out against the republican repeal plan they know better you can't use flexibility to make up the difference for basic health care for thousand of people you represent in your state. i want to just reiterate what chuck said in closing here we're ready to sit down and work with the republicans to make the health care system stronger, take this tax cut for the rich off the table, take these cuts from medicaid off the table and make a commitment to make sure that americans are going to have more access to health insurance and more affordable health insurance and i want to pull up a chair to that table. >> senator murray. >> well, it's no surprise that senate republicans needed another week or two to try to jam their trump care bill through given everything it would mean for families' health and human services, for their financial security and their hone lives we don't know what kind of back
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room deals the senate republican leaders are going to be talking about cutting over the next two weeks or which republicans will decide they care more about toeing the party line rather than protecting families in their states, but here's what we do know. senator mcconnell is not going to give up he wants to get to yes and so does president trump even though their bill will mean that families' health care costs will go up. it will gut medicaid it will undermine protections for people with pre-existing conditions, and throw tense of millions of people off coverage. why? because they are laser focused on giving the very wealthy and big corporations a massive tax break. so here's my message to every patient, every family, every mom, dad, care giver, doctor, nurse, teacher, anyone who believes that trump care would be devastating to

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