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tv   Mornings With Maria Bartiromo  FOX Business  April 28, 2017 6:00am-9:01am EDT

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friday april 28th, top stories right now 6:00 a.m. on the east coast. president trump about to close chapter in first 100 days in office. we will take a look at key policy moves specially this week tax reform plan how it will affect you, your money and the u.s. economy. >> the rest of the world has a higher tax rate on the business side than 15%. most of the world has average of 23%, 28% on business side. we are going down to 15%. that gives our businesses our huge advantage. maria: we are breaking it all down straight ahead this morning. possible major conflict with north korea, president trump putting that on the table in an new interview. we have details coming up. earning season rolls on. we will hear from oil giants. that setting tone for markets. technology sector will be the big focus after last night's strong results from amazon and alphabet. both stocks are highhis rning. take a look. amazon surging 3 and a half percent.
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alphabet parent to google up better than 4% right now. set the action right here and the nasdaq composite is up a fraction as the s&p 500 and the dow jones industrial average. i would have expected a bigger move there so we will take a look at markets coming up. in europe markets are mixed right now, the cac quarante and dax index up fractionally. in asia overnight, markets closed like this as you see, shanghai composite scweaked out a gain. the airline settling with that person and his lawyer is now praising united airlines, we will tell you why. airlines comes into fire, southwest is getting proactive, it will no longer overbook flights. populist site was down for several hours, what caused that crash coming up and mobile ordering a boom for starbucks, nearly one-third of sales were
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made online but popularity actually backfired, we will bring you the stories and joining me to talk about independent voice and president heather is with us the king of college professor brian brendberg is here. good to see everybody. >> good morning. brian: still talking health care, government shutdown, we started the week saying there's so many issues in play, we are ending the week with issues in play. looks like it'll be big as well. >> as we all know, good policy is better than fast policy but fdr started us down this road the first 100 days, so it gives us a hook. mike: i think what president trump has been able to accomplish and the work and different things he's been able to get on the table, not all passing but just being able to get them out there shows us what
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we are in store for and it's a positive for the economy overall. maria: which is why the markets have been on fire. big program ahead. stay was. we are talking about the ceo, mark is with us. the attorney general of texas will join us. florida cangman and the director of white house national economic council gary cohn joining us live to talk. president trump set to mark a milestone tomorrow, 100 days in office to issuing more than 30 executive orderers as well as getting supreme court nominee confirmed. it is clear this president's first one hundred days have been defined by action. president trump himself reflected on life within the white house. listen. >> i love my previous life. i had so many things. i actually -- this is more work
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than in my previous life. i thought it would be easier. maria: it's funny, as heather said, 100 days is so arbitrary, what do you think of future historians and how they will look at president trump's first 100 days. brian he has done what he said he wanted to do. nile gorsuch to me is the biggest. he had biggest losses, he keeps moving ahead and he says, i'm going, i'm not going to stop, i'm not looking back, no regrets. unapologetic is the way he's running the white house and overthe long term that's the way you have to manage a white house, but it means in the short term there's big wins and losses .
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>> i wouldn't call it a loss because -- remember, there are two filibusters in the senate. one that we all think of that stops the debate and moves to a vote and the senator can i say i need more time to discuss this but the one that's been strategic block and the reason the senate has gone to the most deliberate body to not deliberating anything, the democrats have used time and time and time again to stop legislation that's passed the house from getting through the senate. that's one of many blocks, confirmation blocks, et cetera, this stuff is not going to happen in the short period of time. he's keeping his proms, one of big themes, everybody is going to talk about the litanies of what's gotten done and what's not. he's been a disrupter and
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effective, maintained read lines and that's incredibly important to supporters and focus on jobs, his constantly proving the people that were so per fied about how extreme he is. remember, the rhetoric about nafta, the rhetoric about nato versus the reality of how these are actually negotiating opening gamuts to get this to a better place, the same thing is happening with health care now and he's -- he's a businessman, he's not a politician. in politics you either go for the win, if you lose you hide, for him it's -- moving ahead. part of the process. >> he ran on taking washington. he's never been a politician. he has the most important job in the world. i'm sure he's made a lot of mistakes along the way and learned a lot on along the way
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but he has us in a pretty good place right now. maria: i have to agree because of the way he approaches things. for example, look at the border and the number of people even train to cross, the rhetoric, sort of putting it out there and jeff sessions putting it out there saying, don't come, if you are committing a cme, you will to ja and you will go back home and then there's north korea, big take away from the reuters interview, assessment of north korea which he called biggest global challenge. >> a chance that we could end up having a major, major conflict with north korea. absolutely. maria: now despite the animus words, the president said he would love to solve things diplomatic but it's very difficult. how do you see trump's comments internationally of north korea, there's a crazy person in charge of north korea and he's going to do what he wants to do?
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brian: nobody really know how things land in north korea. i think he wants those words to land to china actually. if you look at him recently, he has been praising praising the chinese president. interesting words given critique and been very praise-worthy. on the other hand, conflict is very possible. i think those words land in china and it's meant to get china to help with the diplomatic solution in north korea. maria: finally some expectation that china is helping or trying or addressing this realistically, three presidents have tried to get china involved in reining north korea and unable to do so. >> the strike into syria in retribution for gas attacks was the big stick followed by the speaking softly. we have a teddy roosevelt president now internationally who understands the use of power and where the rest of the world believes that he's serious about
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his willingness to use it. that has to have an effect even in north korea, but certainly in china. maria: big statement, we will take a short break. we have a lot to come this morning. when we come back united airlines settles, meanwhile competitors are announcing plans to eliminating overbook altogether. alphabet and amazon reporting booming results last night for the quarter, what that growth means for the technology industry and the stock prices, back in a moment, mornings with maria continues anything worth pursuing requires knowledge, hard work and a plan. at baird, we approach your wealth management strategy the same way to create a financial plan built to last from generation to generation. we'll listen. we'll talk. we'll plan. baird. bp uses flir cameras -
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maria: welcome back, alphabet and amazon reporting earnings last night. alphabet net profit up 30% and amazon's profit was up over 40%. joining us ubs internet and media analyst, revenue up at amazon, correct, revenue has been the story? >> they also beat profitability. they came up 25% better than earnings. they did guide lower for next quarter but right now when you see these signs of growth, investors are giving them a pas on investment cycles because investments are being paid.
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maria: even after the huge run-up that we have seen you put new money to work in amazon or alphabet? >> i would, between the two we have a little bit more positive risk alphabet over amazon. you're only paying 20 times free cash flow for alphabetow. valuation always a tough argument with amazon but you can't argue with the scale and the growth of the company. pointing mike companies put you have massive quarter, who is going to be the first, will it be apple, alphabet, will it be amazon, is there a chance that the government steps in here on any one of the mentioned companies and says this company is getting too big, too power, let's break them up? >> the number one risk factor that we have identified for investors when we put out big top-ten themes, regulation is the number one risk these companies are growing fast and they are large in size.
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you never know where you can get an edge on regulation but that's probably the biggest risk. >> do you think that's a risk with the trump administration? >> there are mixed signals on that. most people view the trump administration as a bit more of an old economy than a new economy approach as an administration. i think that is being debated amongst investors and two companies that are examples of american exceptionalism at its finest, growing, global powers, gaining, increasing strength. i don't have any edge on which one ends in trump administration. >> last quarter we saw sign that is competition is heating up; maybe the growth is going to slow a little bit, how do you see it playing out with big rivals? >> we really think cloud computing is a three-horse race, it's aws from amazon, it's microsoft, and gcp, google, compute from google.
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their cloud-computing and it's 500 billion-dollar end market that's still very small penetration to that. maria: does ibm fit into that list? >> you know, ibm is more of a legacy player, i don't cover it. i would say these newer entrance that are leading with public loud are taking a lot of incremental share from existing ip players. maria: the quarter has been good in terms of earnings, right, mike, how would you characterize things right now in mike: i think the quarter has been great. we talked about this going into the first quarter that people were just feeling more positive, whether it was the potential for tax cuts or the potential for a probusiness administration, but i think that's where we are getting and two of the biggest companies that can benefit from that are both alphabet and amazon because of the economy grows, business has so many different levers that they can pull to improve profitability, right?
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>> they are both involved involved in many aspects to have economy, obviously advertising is the lead product of google, we are talking about cloud computing, now with pixel and we are talking about hardware. amazon has a two-prong story. maria: one of the reason that is we are talking about the growth numbers that we are seeing out of technology names is that there's not a lot of growth, look, we are right here on the doorstep of gdp report that's expected to be horrible today, right, gdp is coming in about two hours we are expecting half a percent growth for the quarter. >> around a percent and a half but it's very bad number and i agree, these are the companies that are driving growth. they are driving the creative destruction. when we talk about the government getting involved and shutting the big companies that scares me because this is where the innovation and growth is happening. that happens i'm not sure where the growth is going to coming up.
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not shut it down but break it up but destroy the growth story that we are seeing here. >> maria brings up good point. there's smaller and smaller list of companies that are producing 20% plus, top line growth in allow gdp environmen you're seeing a bit survivorship bias in where people want to put dollars the work. maria: moving the needle on economic growth and jobs, eric, good to see you. take a break, when we come back, starbucks, is it running cold? missing growth expectations, how mobile ordering is impacting the business there. in united airlines settles, the company reaching an agreement with a passenger who was violate ently dragged off of a flight. details back in a minute think again.
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maria: welcome back, back to the war on terror we go. two u.s. service members are killed in antiisis raid in eastern afghanistan. cheryl casone with the story now in headlines, cheryl. cheryl: well, maria, good morning, the attack occurred late last night when the two servicemen came under fire during raid against islamic state fighters. a state defense department official did confirm to x news. the soldiers battling with afgh defense forces were the mother of all bombs was dropped by the united states earlier this month. also overseas, one woman was shot by police and four arrested in antiterror operation that happened in london last night. the woman was taken to a hospital where she's under police guard this morning. authorities said he has not yet been arrested due to her
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condition. the other four suspects are in custody at a south london police station. the raid, part of ongoing intelligence-led operation in that city. okay, here at home dr. david do, passenger dragged off of overbooked united airlines flight has settled, attorney confirming yesterday, a united spokesperson sent a statement, quote, we are please today report that united and dr. dao have reached amick cable resolution of the unfortunate incident that occurred and we look forward to implementing the improvements we have announced. this comes after united ceo oscar muñoz did confirm several changes to airline policy including a 10,000-dollar incentive for voluntarily bumped passengers on overbooked flights and promise to reduce amount of overbooked flights. southwest airlines changed its policy. it will no longer overbook their
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flights, ceo saying they've been thinking about that actually quite some time, confirming that yesterday. moving onto earnings news for you. starbucks missing growth expectations in the u.s. after reporting first-quarter earnings, the company came below revenue estimate, 45 cents a share, but starbucks says it's customer traffic has stalled as it's working on problem in stores created by mobile ordering. stores struggle with orders and that makes up more than 20% of their business, make sense, to combat gestion, they will be given tablets. the change obviously going to help update with real-time data, maria. the mobile ordering is to popular at starbucks specially morning commute times and it
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came out in earnings. maria: big convenience, for sure. coming up hurdles for health care, what it means for president trump's agenda, when might we see that bill and what happens to senate. protests erupting at berkeley again. police marking six arrests as hundreds rally over canceled appearance by ann coulter, the latest coming up. stay with us ♪ predictable. the comfort in knowing where things are headed. because as we live longer... and markets continue to rise and fall... predictable is one thing you need in retirement to help protect what you've earned and ensure it lasts. introducing brighthouse financial. a new company established by metlife
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maria: welcome back. i am mariaartiroma, your top stories, 6:30 on the east coast was on his 99th day in office donald trump meets the nra. the national rifle association leadership forum, the first sitting president since ronald reagan to speak at this event but as the president travel south there is tension in washington, republicans may not get a health care bill, will not get a 100 stay in office this weekend. >> lose lose lose situation, 17% support among the american people, even republicans are not
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supporting the bill. just bring it up, not good. maria: more on the latest on the setback, when will we see the healthcare bill, big oil driving earnings, we would hear from exxon mobil, and general motors, setting the tone for market, technology was strong last night, we are awaiting the first reading on the first quarter gdp. economists expecting growth of 1.2% but the low end is that 1/2%. stay with us for that gdp number. markets fractionally higher. markets are mixed. the s&p 100 down a 12:45%. in asia overnight, worst performers there, hang thing
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down 1%. the meltdown after the site crashes. millionaires in philadelphia last night. >> with the first pick in the nfl draft, the cleveland browns miles garrett, defensive end. maria: breaking down surprise pics and major trades on first round of the nfl draft. would you pay $100 to see wonder woman? the super promotion that gives unlimited access ahead. those stories ahead but first, another hurdle for the republican healthcare plan, last minute effort to bring the bill to the floor before donald trump's first 100 day mark did not happen last night despite democratic pushback. paul ryan sounded optimistic about the party's plan to repeal and replace obamacare. >> we are making good progress.
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we were going to go when we had the votes, something says you will be the first to know. this is a bill that a moderate would more likely want to support. >> moderate republicans in the house, if you didn't like the first version you sure shouldn't like this version and frankly you will pay a huge price in the 2018 elections if you vote for it. maria: the ceo of cell gene, mark ellis reporting earnings better than expected. good to see you. the growth story, let's talk about what we are seeing in the healthcare bill. what do you think look like once we get a new health care bill do things change? >> we were together at the jpmorgan healthcare talking about repeal and replace and the message was it is a refinement
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opportunity. premiums, deductibles that insurance companies are dropping state-by-state routinely from participation, because the population, high risk nature of those pools, and inevitability the government and paul ryan's idea along with bipartisan approach to create the high risk pools that are causing the issue of insurance companies not being able to stay in the aca exchanges has to be fixed, there are 30 million americans who enroll in these plans over time if we don't subsidize certain aspects, it will simply fail. we are big supporters of what the house blueprint look like for the repeal replace. refinement approach. something has to happen or the aca system is constructed and executed will fail so we are
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supporters of trying to refine it and create the kind of alignment between stakeholders at the state and federal level. maria: it is expensive for people with premiums in triple digits, but also for companies. and much higher cost. >> if we don't realign and create incentives, we don't readjust the pools so share costs of the high risk pools and healthier populations come together like any insurance scheme the system can't survive. >> will be get a bill in the next couple weeks? >> it links to corporate tax reform but the bigger picture, incentives for america across the globe to bring jobs back to the us and if we don't get the healthcare fix, will be hard to get corporate tax reform.
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maria: were you happy with the principles in tax refo? >> absolutely and i was in washington wednesday meeting about the broad brush strokes of it and the territorial system is important for tax reform.s unce, the devil will be in the details but without healthcare reform, refinement approach, corporate tax reform will be difficult to realize. maria: they haven't articulated a number, in order to bring money from overseas to the us could be around 10% which is a great number. you think $5 trillion sitting overseas would come here if it was lower than 10%? >> congress has an opportunity to create a competitiveness in the us unlike we have seen for 30 or 40 years. competitive index around the
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world, because of tax ranks 35th. a week ago from the 35th. maria: let's turn to reported earnings, a mixed quarter beat estimates, revenue is being talked about slower than expected because of soft demand, stock is down on that yesterday. how would you characterize the quarter? >> we had an outstanding quarter. had a little bit of a down quarter but it was a 1-time event. managed-care contract that the end of next year, we were able in one quarter for access for america, and almost 100 more people through major health plans in the united states have -- able to get a prescription for our drug without having to go through therapy. from an access point of view he
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created an favorability, something i adjust to on the volume side. the other thing that happened with peer companies, with rheumatology, prescriptions in that space contracted in a major way, 5% to 8% -- >> what are you seeing in the rest of the year? how does that lead going forward? >> we updated guidance, and entering from yesterday. we are very proud of that. we are accompanying that. and other diseases, the pipeline is going, we have a drug in front of the fda for acute leukemia, one of the most lethal
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forms of leukemia, in great position for the year. we are looking at being able to meet and exceed our 20/20 outlook, we talked to investors. maria: the fda has become easier in terms of that, the real bureaucratic system. >> the appointment is important. when we talk about reform, regulatory opportunity, scott is a reformer, physician, cancer survivor, someone who can reform and let's talk about pricing for a second. 90% of prescriptions are for generic products. if we unleash the backlog of generic that the fda we can avoid competition, the outlier things we saw, the epipen story, we need to unleash the generic markets.
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i think it will. maria: thanks for joining us. a big night for the nfl, the first draft in the books, highlights from philadelphia coming up. speeding to another win, the fate of the furious closing in on the third straight weekend at the top of the box office, the weekend box office. ♪ now that i am on my way ♪ you think i am crazy standg here today ♪ make you love me with all this dreaming ♪ living in your radio ♪ and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. and at $4.95, you can trade with a clear advantage. buttrust angie's list to help.,
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maria: market looking mixed, futures indicate mixed open with industrial down and s&p and nasdaq up. microsoft earnings-per-share was above expectations that the company reported a this in revenue, the fiscal
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third-quarter the cloud business continues to grow but revenue from its surface computer down 25%. microsoft shares $67.95% or down 1/2 present. until another name to watch, shares falling following the first-quarter earnings report. earnings-per-share above estimates revenue, investors are concerned over slowing growth in data centers. until shares down 4%, that is pressure for the dow industrials, it is in the dow 30. hundreds of people gathering near uc berkeley to protest the canceled appearance by conservative speaker and coulter. cheryl: the people were arrested as barricades were put up and kept protesters from entering the campus. police in riot gear ready for possible violence between coulter supporters and opponents but there were no major confrontations. coulter says berkley claimed her appearance was canceled due to the threat of violence but she says that is what the police are
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for. after was down for hours by a server error the site had a page, readit is down for maintenance, the seventh biggest site in the us, reactions on social media were stronger, one twitter user says readit is down, see what they are saying on readit. another user says readit is down to what will i do to avoid working? you got to love twitter. other headlines. an error has resulted in duplicate tax reforms being sent to some people in rhode island, the extra checks were sent to 500 rhode island residents totaling 360 $4000 but officials say even though there are two checks for some people only one can be cashed. it will not cost the state extra money. human error is to blame for the duplicate checks. lots of wheeling and dealing at
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the nfl draft in philadelphia, no surprise the top of the draft, texas a and m defensive end the first choice for the cleveland browns, the browns off the one in 15 season, garrett is a junior and all-american dynamic -- those are your headlines. a lot of fun last night, i watched some of it. maria: we had a great week on "mornings with maria". look at the highlights from the week. the biggest tax cut in american history. >> if you're thinking of starting a small business do it, your tax policy will support you. if you are an existing small business and want to grow do it. >> walk us through how you see the first 100 days when it comes to health and human services. >> the president has done a remarkable job coalescing and bringing folks in and letting them appreciate his vision for the entire health care system.
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>> democrats fear what will happen if the obamacare marketplace implodes and they are concerned about that and saying let's get something done. dagen: you think it comes up for a vote in the house? >> still talking about healthcare getting done. >> obamacare past, it was just one party and it is not sustainable. of republicans do the same thing it is not sustainable. we are talking about people's healthcare. dagen: kim jong regime, following the senate briefing at the white house. >> the united states joined with its allies strengthening the relationship and pushed back in every way we can against this madman in pyongyang. dagen: what are donald trump's victories in the first 100 days? >> he made the first breakthrough with china. we have given china our o-matic football to run with it and see if that will work the north
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koreans to denuclearize and stand down the ballistic missile development program. maria: you represent the 23rd congressional district spanning 800 miles on the southern border, tell us why you think a wall is so ineffec. >> in many parts of my district the border is considered remote. what we should be able to do is detect when someone comes along the border, monitor that with a camera or unmanned aerial vehicle and keep track of that until you are able to employ your most important resource, your human resources. dagen: canada's a bold stand blocking nuke imports from the united states could put american dairy farmers out of business. jeff flock is in wisconsin. >> what message do you want to send to washington? >> we need immediate help. i don't think looking at canada to correct this problem is the answer. >> i just met with the president and i am reassured that we the people are represented by a constitutionally driven
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commander in chief. maria: why is it so many athletes don't manage their money? >> any young person getting a lot of money before you have no money to getting a lot of money you don't have a plan. dagen: teddy bear celebrate differences, vermont teddy bear company teaming up with the amd coalition to create limb loss and limb difference. >> wise the military their more expensive? because military people are so cool? >> if you want to look dirty without getting dirty nordstrom is introducing this one, designer jeans make you look like you were out working in the mud but it is all fake. they are not sturdy. >> they are running out of good ideas. dagen: it is the lack of authenticity of anyone who would buy them. i want to look like someone who has an out chopping wood, instead i am sitting on my duff playing video games. maria: honda has created a self
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driving robotic lawnmower. nemo will make its debut this summer and we are getting exclusive look at nemon action. in case there is an obstacle, he is going to stop and back up. maria: melissa francis joins the table, great to see you. congratulations on the book. >> when i was in college my idol was the money honey. it is all about you. i had so much respect for maria who was foxy and fabulous but brilliant and respected and i said that is who i want to be. [vo] quickbooks introduces jeanette
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>> knowing is good blues knowing everything is better. >> anything you want to tell us? maria: that with a clip from the new film the circle, follows watson's journey as an employee of a corporation storing massive amounts of data and senior vice president of marketing. and first the circle up against record-breaking film fast and furious which is on the cusp of bringing in $1 billion. >> once again, transiting well globally. coming in outnumbered 2 by
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social media nightmare future. with emma watson. data getting hacked. how to be a latin lover premieres this weekend. and kristen bell. making an appearance. 20th century fox. >> next weekend kicks off the summer movie craze with guardians of the galaxy which broke box office records in august. featured prominently. >> 20th century fox, the 2012 movie prometheus. in may 19th, a crew of pioneers
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attempting to colonize a new planet and some props. >> profs from prometheus precedes the latest alien universe chapter alien covenant. is xanax ready? my goldeneye would scour the 20th century fox archival lot. so here we have in prometheus who uses it to navigate the total. could the elephantine. and it is a little weird now.
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to pick it up. the engineers wore in prometheus. it is like moshe. it is a dummy prop. i hope my mother is not watching. maria: a big old flashlight. >> get ready for another chapter in the alien universe. maria: if you are a dc comics fan you will love this new arthur. the movie theater chain offering the wonder woman ticket allows fans to see the new wonder woman film at regal locations once every business day. and all film formats including imax, 3-d and 4 d.
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>> you have a lot of time on your fant and if you can afford that ticket can you have a must time on your hands. wonder woman was my favorite character from batman versus superman, all about creating an experience at the theater, neck in neck competition with all these choices in viewing movies and that is how this takes, the been house is to make a good movie. the last couple movies have not been set great, mixed reviews. maria: you don't like the story line? >> guardians of the galaxy changing entirely, a different take on that movie and see how it does. maria: approaching the big summer season. thanks so much. toyota issuing a recall taking trucks off of the road over an issue that causes drivers to lose control. jampacked show in a minute.
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maria: thanks for being with us, i am maria bartiroma and it is april 28, 7:00 a.m. on the east coast, donald trump about to close the chapter on his first
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100 days in office. his stance on illegal immigration and thinks where he cities. >> it is inconceivable to me why anyone sworn to uphold the law whether it is a police officer, mayor or governor or anyone sworn to uphold the law would feel they can ignore the law. maria: the latest coming up this morning earnings driving market action, exxon mobil and chevron as well as general motors coming this morning. colgate palmall of what the revenue mix. we are looking at a higher opening but it is just fractional and it is about the gdp, the estimate is for a growth of 1.2% but there is also
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on the low end below 1% so we will see the numbers hitting the tape in an hour and a half and we will bring them to you. markets are mixed, look at major averages, the s&p down 1-numfour%. the dax index in germany up fractionally. in asia overnight stocks mostly lower with exception of china, the shanghai composite, others fractionally lower. the automaker recall, 200,000 ted, pickup trucks. the ceo of facebook marco berg makes another stop on his tour across america. he hits the factory floor at a ford plant, what he said about the trip coming up this morning. the postal service goes out of this world unveiling a new stamp to celebrate the solar eclipse how your finger can transform the stamp image. and amazing creation. and all the stories coming up,
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independent ceo heather higgins is with us, kangas college professor and economics, and rose clip. and not in the same -- >> they make a suit that way. and -- you don't think the first hundred days matter. >> it has been extraordinarily successful despite the artificial numbers. he has changed the conversation on a lot of things in that he had leapfrogged and gone to accepting decisions about how to do his policies, not whether to
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do his policies and talking up wins and his goal is achieving his goal, not satisfying temporary process objectives. maria: given the pushback from obstructionists on the left. >> hundred days doesn't matter, talking consumer confidence, business confidence, accomplishment in these arbitrary time periods drive that, it is important to get things done. >> consumer confidence increases for republicans and democrats. maria: get the gdp up this morning, something to look at in terms of what has gone on this last quarter economically speaking, a big show ahead coming up this morning, for a consonant house freedom caucus member, the director of the white house national economic council, gary cohen who has been talking taxes all week will talk with us this morning about the president's plans. joining us first on fox.
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we went to get business's take, what does big business think about the economic plans coming out of the white house and whether it will move the needle on growth. stay with us. we keep up the battle over the border wall, donald trump insisting the barrier between the us and mexico will be billed despite find he could push back funding to finalize a budget deal. paul ryan address the timeline yesterday. >> we are doing big things which i talked about 200 days because i thought the agenda we are attempting to put together, overhauling healthcare, overhauling the tax system, rebuilding our military, securing the border, those take more than a few months, they take a long time, at least a year. that is why we are working on the path to get it right and not constrained to some artificial deadline. maria: since donald trump took office illegal immigration has
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dropped significantly according to border customs officials. in march 16,600 individuals were apprehended at the southern border, that is down 30% from the month before and is a decrease of 64% since february 2016. joining us is attorney general of texas ken paxton attorney general, thanks for joining us. we are happy you are here because you can speak to this from the ground in terms of what you are saying. do you hope this wall would be built? did you hope this wall would begin to build out and talk about the build out now this year? >> the sooner the better. we have been waiting for action for years and years so doesn't have to be the wall but we want some progress, whether it is border security, technology, some combination of all three. maria: why is it so important? characterize the situation. >> we have felt for a long time in texas, we have not gotten help with immigration, we spill our own money from protect our borders, we don't have the same resources, nor do we have the
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same wall behind us, so we need to step up and finally a president is doing that. maria: do you think one of the reasons for this decline in people attempting to come over the border is the discussion? >> absolutely. and deported as an impact, i met with border security agents and they are excited, doing their job for the first time. there is a new attitude among those working on the border knowing what they are doing will have an impact and not able to do their job. maria: look at the pushback this president is getting. a federal judge blocked the effort to withhold money for things where he cities, this is the latest, executive order and to take away federal funding to places that do not cooperate with the law. and the enforcement of illegal immigration, homeland security secretary john kelly went in on this. >> it is inconceivable to me that you would ignore the law and justice inconceivable when an elected official would not want a criminal taken out of the
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community for free by the federal government, taken out of the community after they paid their debt to society, taken out of the community and sent home. i can't understand it. >> i spoke with him earlier this week, we are dealing with that and the sheriff who wouldn't cooperate with the federal government, someone who has been convicted here illegally, what is the upside for any taxpayer, any constituent not having these people deported out of the country. maria: what do you make of this pushback? >> it is surprising to me because i don't understand the upside, this federal judge focused more on newspaper clippings about what the president said than the actual law. maria: at this point we are on hold. looking at a state like new york, $7 billion in federal funding, do you think attorney general jeff sessions is going
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to hold back on this money for example new york continues -- >> that is the plan. we are going to the fund cities that don't participate in this process. maria: what are the big issues? >> how long will it take to implement this? how long will be in a court struggle? this is federal law. >> for a long time. >> the safety of citizens for a decade. we can't get any help in the federal government. they are excited to do their jobs effectively.
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less crossings. >> talking about where we were today, a stock difference over the years where we were today for the purpose on illegal and criminality over the border. >> he talked about the law and a difference in changing the narrative and the focus and what i like is despite the criticism. we haven't had any help. maria: how should this plan look different. what do you want to see from texas. >> i don't know which progress comes first, more border agents, the technology, start moving towards, a sense in el paso. and the highest crime rates.
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>> and a significant difference. >> congress is debating what a wall would look like. and access a wall. what the actual structure needs. >> the pending where it is at. and other places, that is a determination that goes along and engineers make those
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decisions. maria: where do you see most of the people coming from on the border that you are talking about? >> over the last several years, they have been coming through mexico, coming across our border from mexico. maria: we don't know who is coming in. they see an opening in mexico, they come in. >> we saw the federal government from bringing refugees from terrorist countries and unsuccessful in that and concern was we don't know who these people are, the administration was not telling us what their background is, we are getting people from all over the world, lots of terrorism. maria: when we look at the syrian refugee situation, a passport making machine, all of this equipment for the refugee flow. maria: it is related to that issue. we had the most number of syrian
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refugees in the state and make sure citizens were safe and we had no way to know what we are dealing with. maria: an extraordinary situation, good to see you. thank you for joining us. still i had a massive toyota recall, 200,000 tacoma pickups need to go to the shop for a rearwheel issue. and eclipse at your fingertips, unveiling our high-tech new stamp, let's you give the moon a makeover with a touch, back in a minute.
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maria: arkansas executes another inmate. cheryl: arkansas has put to death its fourth inmate in eight days raising questions about the aggressive execution schedule is a reporters who witness the execution says 3 minutes into the lethal injection his body jerked 15 times in quick succession, then he lurched violently against leather chest restrengthen arkansas experiment the pace of executions, because
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the use of the lethal injection is inspiring sunday. expiring sunday. the secretary of labor, 62-38 vote. the nation's 27th labor secretary. a federal prosecutor and civil rights chief at the justice department and a member of the national labor relations board after the president's first choice for andrew pods there withdrawing his name from consideration. nasa has released photos from saturn's rings, the first close-up look at these rings, nasa's cassini spacecraft drove through them sending back 100 images. it was the first of 22 passes, between saturn and its rings for the next five month and it will crash into the planet in september and has done a great job that will destroy cassini and end the mission bloogecraft has ever been this close to
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saturn. the u.s. postal service is coming out with a first-class stamp honor of a rare solar eclipse that will happen this year, a very cool part of is, it changes with the heat from your finger, first time that it has been heat sensitive, it will transform into the moon as you see on the images in front of your screen. the postal service planning to unveil the stamp on june 22nd. i will happy to go buy some. maria: first quarter gdp in just an hour. mark the cupboard keeps on trucking, and build a ford f 150, the latest from his tour across the country. ♪ taking me higher
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>> markets searching for direction, earning season drives the action again, strength in corporate america, earnings are up 9% from a year earlier. the head and cio info investment solutions at merrill lynch and us trust, good to see you. in terms of your clients today as they are located capital how are they feeling? >> we are recommending to our client base they be overweight equities, still feeling good about the economy, global growth, real gdp growth will be 31/2%.
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the us will see 2.3 or 2.4, we are seeing a global synchronized acceleration of economic growth which is translating into revenue growth, so to us there is a good underpinning for the overrated equities despite the fact the market has been strong. >> i agree with your point. one part of it is the pro-business administration. to you factor in repatriation of cash. of trump talks about 10% tax on money coming back from overseas, do you factor that as a boost for the market if the money comes back and is put to work? >> it is a good point. that is all incremental. so x that, x tax reform, x healthcare reform, we this year in the us you will see earnings growing 9% to 11% without all that. the good news is there is a
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terrific underpinning already if we get that, that drives further these animal spirits, consumer confidence, business confidence. we haven't seen capital spending kick in. housing is extremely strong. if we see these things transpires that we have heard from the trump administration that drives us not only through this year but into 2018. >> can we get to big numbers the administration is talking about? 3%, 4%, economists saying it is a bridge too far. how do you feel, are you bullish about global growth, do you think the prospect i that good? >> this year, 2324, with we have, we see today. to get the three, 3 plus, you need to see productivity coming back. we see progress on the regulatory front, that can help
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but without uptick in productivity i don't think you will see numbers that exceed 3%. to exceed 3%, productivity has got to come back in a big way, a change in the regulatory environment can help if companies spend on technology, that can help but a number of things have to come together to come to pass. maria: that is where it has been, rolling back regulation. >> if you look at big changes that occurred over time, one of them is courts having a different judicial philosophy, we interpret the law, make it ourselves and a policy of nullification in some cases, but you have the creation of the administrative regulatory state which has created such a burden and a derain and that is one of trump's chief priorities is i am doing that and on top of that we
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have the prevailing on tax policy, you said your numbers were before those things but i would think those would be enormous if he even gets close to accomplishing what he wants in terms of really driving those numbers and changing productivity. >> no doubt that will have a big impact on earnings and contribute to productivity. we see a pullback of regulation. people have underestimated how onerous that has been and the impact that has had on overall productivity. the animal spirits concept. if you get the ceos of small, medium and big sized business feeling confident. opening of the capital spending spigot which is not been opened, investing through technology, these are all the things that can lead to higher productivity and faster growth. one of the reasons we have had
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secular stagnation is we have not seen the dynamic play out. it is remarkable we have the economic expansion celebrating its eight ear birthday in june and the fact that we are eight years into this economic cycle and have not seen capital spending kick up his remarkable. maria: because companies have been sitting on cash because they don't know what is around the corner by their being handcuffed by the regulatory environment. so what about the policy and the tax plan to take small, owned and operated businesses to a 50% corporate tax rate, how powerful is that in terms of moving the needle on growth? >> it puts our us companies at a firmer footing globally from a competitive standpoint. lower taxes will have a big boost of earnings and especially one thing we are saying is we
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expect small-cap companies to start doing better. they continue to lag and there is a theory y that is. small companies, the biggest generators of growth and employment creation in this country will be unleashed, continue to drive activity, drive employment and growth. maria: what is the most of in question for the administration now that you have seen the white paper the president released on tax reform, gary cohen coming up. >> the way we got to think about taxes, the first pitch was thrown in the top of the first inning. people taking it apart and asking this question or that question, we need to realize this is just starting. like anything else you don't start with where you want to be, you will start in a position you
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can negotiate, come together hopefully in a productive way and result in something positive for the country and corporate america and that will drive employment growth, that will drive income and earnings. maria: the coming together part, it is great to see you, the gdp out in a -- and an hour. >> the consensus shows 1.1, 1.2, we think you will see that on the road to 23, 24, 4 year growth this year. maria: thanks for joining us. keith bank this president at us trust. another setback on the plan to repeal and replace obamacare, we
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might not see thld trump's 100t office, stuck in the red, massive amount of americans who spend half their paychecks just paying off debt. back in a moment. due to your first accident. liberty mutual insurance.
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maria: welcome back good friday morning everyone. it is friday april 28. the top stories right now 7:30 a.m. on the east coast. the commander-in-chief will be the first sitting president since ronald reagan to speak at the national rifle association. republicans are pushing to get health care bill done.
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it raises america's health cost deductibles and out-of-pocket there is nancy pelosi on the healthcare bill. driving the action this morning. were waiting on exxon mobil and chevron. revenue of $41.2 billion. markets look like this this morning. certainly putting some momentum within the markets here. that estimate is for growth of 1.2% in the heads the hits the tape in one hour from now.
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take a look at the major indices. they're done one third of a% right now. in these overnight stocks are mostly lower. the others down fractionally. toyota is meant issuing a massive recall. what you need to know before you hit the road. the details on the visit to a ford plant in michigan. it's all coming up. wait until you see this dress. another effort to bring the bill to the floor. i did not go out. >> i would be shocked that they want to see a government
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shutdown. the reason this government funding bill is not ready is because democrats have been dragging their feet they haven't even been shown up for negotiations. so you state you will vote for this health care bill at it -- as it is. what is holding your colleagues back. i think what's happened during this whole process is that you see a divide in the conference about whether we actually want to repeal obama care. i think of certain people and conservatives. other members don't really want to go there. were in a situation where there is a divide. what the bill does is by allowing states to effectively opt out of this regulatory regime if you have over my governor i think you have a
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path for lower premiums. from even the first bill. it may not had necessarily swayed them. we will see how it shakes out. it's definitely a compromise. that would be the easiest thing to do. we are where we are. and this is probably the best we can do right now. >> it doesn't seem like the changes were talking about here or get a bring on some of your moderate colleagues. does i have a chance to pass. >> i think we will see. many of them would have ended up voting for it the first time. that is kind of out there. i guess we will see. i'm not opposed to making some accommodations there. it is what it is. i think each member has a look and say what to the campaign on.
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so i think this is probably the best game in town right now. >> i think one of the problems is that perhaps republicans are not highlighting those. they are talking about things like invisible risk sharing. nobody knows what that is. if instead they called it the guaranteed pre-existing production fund. people would say oh i don't need to worry about that. tell us about the efforts within the gop caucus to make sure that people understand that people actually are protected. >> there is to massive funds just for pre-existing conditions. that is less than 10% of the population on the individual market. there really is a lot of money for that. and what that does is it not only protects people but for
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me just as important. it takes that burden down. all of the costs have been imposed on them. and now you're spreading it out with a public fund. i think you're opening up a pathway to have lower premiums for people. dealing with it in a way that will be funded out of a public fund. you mentioned that this bill as it is is a compromise just you being down there on the floor can it pass as is? >> we don't know yet. that's what were working on. i think the speaker and the leadership are working on it. they said they were get to try to educate some members. if you have a path to lower premiums any of the path to get people more choice in their plans that is the main
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reason that people are so frustrated with obama care. i think those are benefits that will sell. some of those districts used to be held by democrats. what about a short-term spending bill given where we are. are i expecting it to extend government funding. my view is at the house needs to be able to move funding bills and on the senate should try to process it and if chuck schumer is gonna stand up there and filibuster funding for the troops and bring us to appropriation then shine the light on him. they have the power to filibuster. there's nothing we can do
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unless we give democrats everything they want. we had been in this for years we now had a republican president who can help with this. i hope we do a better job when the fiscal year ends in september. the president has backed up of both of those positions at that point. it seems to me that this is exactly what democrats are hoping for. where is the resistance coming from here. i think they view if they can throw a monkey wrench into this thing. because republicans are in control i think the press will spin it that way. show me how this is different than the other bills that
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passed under obama and i'm just not sure i see the difference and i think that will frustrate conservative voters because you have the whole reins of the government now. what are you doing to build the wall. what are you doing to root out waste and government. the whole reason that were doing it is people are aware. there is actually two filibusters in the senate. the first one that even allows legislation. it has been missed used in the last 20 years. and allow it. to allow it to be deliberated about.
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so when we do budgets we do budget with 50 votes in the senate. then when you go to fund the government because it doesn't fund it it's just the framework. you're right. harry reid was filibustering even allowing the funding for the military to come to the floor. there was no way they could even debated much less pass it. i would support 50 votes of your funding the government. you are watering down the power of the person. i think that's right. if they are going to take a position where they went to filibuster even discussing funding for our troops give to shine a light on it. take the case of the american people and we have not been willing to do that so far. maria: let me ask you about
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one of the problems of the country faces is north korea. north korea is his biggest global challenge. i want to get your reaction. there is a chance we could end up having a major conflict with north korea. absolutely. can you tell us more about that sir. we have a country that is effectively a prison. it is being run by a plump, irrational kid. the chance of the ms. ms. calculation is. i think they may have in other areas of the world. the prospects of their being really a significant conflict because you have 30 miles south. he could not win a conflict.
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he could do a lot of damage on the way out. i think the president is right to work with china. i think it's clear you cannot allow a guy that mental state. i think would obviously be a major decision and it comes with the reality that even if you are successful in doing that there could be a lot of damage done to the people of south korea into other allies in the region. of course we have american troops there. the stakes are very high. it's a different calculation than saying when the israelis took out the reactor in 2006. or when they took out saddam's reactor this comes with it the chance of having some major damage done.
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thank you so much for joining us this morning. toyota is recalling recalling over 200,000 pickup trucks. what models need to go into the shop. and then you can have your cake and wear it too. it looks like a life-size wedding dress. it's all back in a moment. u too. and hey, unmaged depression, don't too comfortable. we're talking to you, cost inefficiencies and data without insights. and fragmented care- stop getting in the way of patient recovery and pay attention. every single one of you is on our list. for those who won't rest until the world is healthier, neither will we. optum. how well gets done.
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welcome back. many americans are still struggling to get out of debt. a study by northwestern mutual said 40% of americans with the debt are spending up to half of their income right now to pay that debt back. it also found nearly half of americans are carrying at least $25,000 in debt and the average debt right now 37 grant. about one in ten people say their debt is more than a hundred thousand dollars.
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>> toyota is recalling 220,000 tacoma pickups. there been recalled. increasing the risk of a crash. they are eligible of course for free repairs all that will be happening in mid june. no accidents to report on this. to help build a few ford f1 50's. he set some screws and then he even sighed and expected expection sticker. spent time talking with line workers and shared with the whole experience on facebook. he's in michigan without personal year of challenge. this is actually pretty beautiful. it's a life-size wedding dress cake. it was made by emma jane.
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as for the cake international show. they made just the flowers. the hardest part was what you just saw. those are your headlines. i don't know if i would even want to eat it it looks so good. by the time they finish that. it's a cake you look at. that's a real one right there. renting the taste of the high life. some of the setting new properties you can now
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incorporate into your vacation thanks to websites like air b&b. your insurance company
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>> air b&b defined a capacity throughout the world. it shifted the economic models. you can take a look at marriott they have maybe 750,000. it scaled very fast are very short time. maria: it's an all new episode
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of the property man. conveys like air b&b have really transformed the housing and travel industries. bob, what was the biggest surprise you uncovered about the effects of air b&b on the travel industry. i think what i learn the most is how quick it was going. there's also the other side that a lot of cities they are passing laws because there is a concern that those outside to the neighborhood areas where people were coming in just for a weekend. they are not they're not liking it. as a result there passing some ordinance that said does it have to be a minimum of 30 day type rentals. from an economic perspective it's very lucrative. they could make enough money. and a lot of them are canceling. they're throwing them onto it
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air b&b and they're making so much money they will just pay the tenants off. >> people coming out of their house. they don't know who's living there. there is the issue from the perspective of the neighborhood but the real pressures coming from the hotel and lodging lobbyists who understand that it's cutting into people staying in hotel rooms. the owners of these properties can make twice and more the rent that they would get from a long-term tenant if you can actually do the management of people coming in and out. >> were always out there looking for the next air b&b. we are seen a lot coming up in a small micro homes. do you see anything like that
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or what you see as the next air b&b out there. clark county again has their concern about that. they're actually passing these ordinances. i see it sort of growing in that area but the area but i see a big push back. the air b&b people basically had the response to that. they had been gouging people for years. we are allowed to do it. and home owners never saw it there. they see it now. as a comp located issue. it seems like this. looking for an experience. that has to be a good news. in fact this particular future done. they had loved this whole
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concept. the availability of it. the whole real estate area the different creative things coming up all the time. as to how kids are living in these cargo things where they rent day-to-day and month-to-month. as a result that's right we covered these kind of issues on the show. bob, we will be watching your show tonight. check out the property man tonight. i want to thank you for joining us this morning. coming up first at 8:00 a.m. a bold vision for tax reform. the economic council director will take us inside.
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gary is at the top of the next hour stay with us for that. cou
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council. welcome back. good friday morning. thanks for joining us i am maria bartiromo it is friday, april 28, your top stories right now 58 on the east coast, 3 trump about to close the chapter on first 100 days in office. we are taking a look at key policy moves especially this week's tax reform plan how it will affect u.s. economy. >> there will be this is going
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to benefit middle class machines are middle income working americans world business should be i think frankly the concern of most americans out there the president number one capital to right now is to provide middle xhk lower xhk tax relief to americans. maria: we are break he go it down nationalize economic council director or gary goern, gm better than expected first artery earnings revenue up on news 1 2/3% a boost to the dow industrials take a look at futures indicating a higher opening for the broader averages this morning dow industrials up 13 points of course we are waiting on first quarter, first reading on gdp the expectations for the first quarter gdp is growth, of 1.2%, that number will be out in 0 minutes, that will likely set the tone for markets in, europe markets are mixed this morning take a look at european indices ft 100 dax lower the cac quarante is up a fraction, ft 100 down lows of the morning down almost one half of 1%, in asia overnight, stocks i mostly lower closing
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with fractional losses worse former hong kong, pays to be the former president, president obama, under fire for yet another 400,000 dollar payday from the wrote a firm criticism from democrats, coming up, mcdonald's says hi, see you later, the company replacing drink internet not happy about it, from strawberries kit kats to barbecue pay days hershey bracing flavors of america we bring that as well millionaires in philadelphia the trades from first round of the nfl, that draft coming up this morning all those coming up joining me to talk all about it wall street senior video reporter shell bee holiday with us o professor college economics brian bend burgh here ceo mike murphy lot to talk about we are getting right to it in terms of of the president agenda, president donald trump, marking a
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milestone tomorrow, 100 days in office, so far had a packed agenda, this week he outlined a sweeping tax reform balloon joining me director of the white house national economic council gary cohn, good to see you thanks for joining us this morning. >> thanks so much for having me. >> let's talk about the most important parts of the plan, that you and your colleagues announced earlier in the week we know that corporate tax rate is 15% what you would like to see, a proposal to make pass-through companies small owned and operated businesses at 15% tax rate that is most telling part of the plan in your view? >> marcia we have had a great week, rolling out our tax plan, we think all aspects of the tax plan are important, the corporate tax piece is important the business tax piece is important, and the are personal income side equal we are trying to drive economy growth more income back in american consumers's pockets we want to take washington out
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of the equation the business side is important the personal side is equally as important. >> personal side talk about in a for a second you want to collapse the number of brackets, to 3 brackets down from 7, make it ease to deal with transparent walk us through that why you think that is going to help, individuals out there. >> well maria we almost look at it as four brackets you know we've got seven brackets in the tax code rit now makes it very difficult, we also want to be simplify tax code i will talk about that as well going to the three brackets that 10% bracket 25% bracket 35% bracket, makes it simple easier to do taxes but rome we took the standard deduction doubled it if you take a medium income family in mer mark between 55, 56,000 dollars a standard deduction 24,000 dollars meaning they
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have taxable income about 32000 dollars, they will have an effective tax rate, in the mid single digits if they have a couple children that child tax credit can have effective tax rate of about zero. we think that is very, very important for low and middle income families we are going to put money back in their pocket they are going to be able to use that money, to improve their quality of life. to improve their house make improvements buy a knew car take care of their family the way they want take care of their family that is very important we're going to simplify returns increasing standardized deduction fewer people are going to itemize simply one page tax return people can do it themselves at kitchen table. maria: you think that this is going to sort of dictate behavior look if you keep more own money you are he probably are going to put that o back into the economy the idea right so what do you see in terms of those of the behavior
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of individuals and companies when they do get much more attractive tax rates because we know the growth is nowhere right now waiting on gdp, by the way, going to be 1% you think you can get growth up pretty significantly with these numbers. >> maria absolutely. the president's agenda number one objective to grow economy create a better job environ. and so if you look at the business tax rate going into 15% tax rate, what is the number one thing that we're going to do we're going to make america competitive for businesses we are going to want businesses to open their operations here in america, we are going to be competitive against all of the other oecb countries oecd average tax rate 23% we will be 8% below the oecd average if you are a business deciding where you want to domicile united states is going to look very attractive if you are look to being build a manufacturing fatally hire incremental
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worker tax rate comes into that decision, by coming to the united states incremental worker cheaper hire worker put to work in united states earn more more than more more than in packet spend more all good to drive the economy this adds to up more and more economic growth, the president's number one objective in the economy. maria: let me ask you about paying for it because obviously, that is where the criticism and pushback has come. you know the last from budget hawks are saying you can't get to 3 and 4% growth, just by lower taxes you have to pay for somehow we know there is no border-adjustment tax proposal in here are you looking for anywhere, for a revenue raise somewhere in economic policies to make this not necessarily you know, tax neutral but deficit neutral. >> maria i think people are missing two big components when a we're talking about number one, i have just been talking about all the growth we think we can stimulate, by having a lower business tax rate.
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15% tax rate we think is going to bring a lot of business back to this country. we also think by lowering the personal rates we are going to put more money back in people's pockets they are going to spend to it improve house buy new considers a continue to grow economy as we take growth rate up going to widen the economic base, number two, and i think people are not quite understanding this we talked we talked vociferously about getting rid of many deductions deductions on corporate side deductions on the personal side, when you get rid of those deductions, you are effectively applying tax rate to a broader base the base is going to widen substantially we are going to get rid of deductions. >> that increase in revenue as a result of this a this plan, will move the needle on growth is the idea. >> absolutely going to move the needle on growth going to widen the base that we are going to be able o to tax we are going to get rid of
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deductions we think that is a much fairer tax plan for everyone. >> look, i know that you want to get rid of all deductions but there is going to met marked up right i guess you know when you look at prior live president of goldman sachs how long it took to you do things, right, you make a decision on something, and probably happens like a few minutes later right, now you are working in government, a little different isn't it. >> it is a little bit different but look we believe we've got a great plan, as you know, we met with house and senate leadership a couple nights ag on same plan we are working together, working effectively, we've got commitment from everyone on hill, to work as effectively as we can, there is going to be changes we said that we said we're in a process over next 30, 45 days, to come up with a plan that we all agree with, we met with a bunch of conservatives leaders yesterday met with grofrer nor acquits his group cato heritage met with all those
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groups taking input from all groups to understand their concerns with our tax plan we want to get this rice we want to deliver a faction bill day one, that we think has universal support out there. maria: yeah look great that you are on this listening tour because you are embarking on one of the most historic things we've seen in a long time tax reform hasn't been done in 0 years let me ask you this gary you talked a lot about incentives to have companies move money from overseas to u.s., when i sat down with president trump two weeks ago he said you keep saying two and a half trillion dollars overseas try more like five trillion dollars so in order to get that money to move from overseas, back into the u.s., you haven't really set a -- a tax rate on that, is it 10%? or is that just speculation? >> maria we talked to many large corporations in businesses that have money trapped overseas. they have all made pledges to us to bring money back, we have talked to them where it gets tough for them to bring
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it back we are continuously having dialogues we are going to attach in a money as tax as high as we can make shire it all comes back. >> you want to get that money back attractive from 35% to 10% would you think ceos are going to say let me put this plant in the u.s. given i can move this money. >> absolutely if 10, 8%, 12% we want that money back, that money will be highly stimulated to come book to united states we know from history, if that money doesn't come back to united states, it gets invested overseas, we don't want that money invested overseas we want that money invested in the united states we want that money put in to -- into businesses, we want as you said people will build manufacturing facilities when they build manufacturing facilities workers to build facilities more importantly workers to man facilities great paying jobs nor american workers. >> are you looking at health care and tax reform then for the side-by-side at this
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point? you know the president was very clear we've to do health care first, because going to save us a trillion dollars, once we overturn the obamacare taxes, now we're -- hearing tax reform, sort of taking precedence what is the plan? >> maria look we love to get health care done first, and there is a team working on health care in fact the vice president is spending enormous amount of time on health care director mulvaney spending time others in the white house are spending time speaker ryan walking about it last night as well we feel we are very close to health care bill hopefully that gets done, over the weekend or next week, he most likely next week if that doesn't get done i don't think -- i think it will get done, we have also put in the tax plan repeal of 3.8% additional obamacare tax on cap gains. >> a big deal. >> it is a big deal we known capital investment drivers jobs drivers economy we are going to drive jobs drive the economy. maria: watching it rap edit
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now gary greet to have you on the program this morning. thanks for walking us through. >> it thanksma a. >> see you he seen gary cohn at white house tuna in for interview with seek steven mnuchin 7:00 a.m. eastern right here "mornings with maria." >> president trump's first 100 days economic policy tax reform what does business say about economic policies then a new take on old classic here she's unveiling limited is edition flavors, after the break. >> wow! ♪ ♪
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bearden. >> romare bearden. maria: another round of first quarter earnings out cheryl casone now with the details, cheryl. cheryl: a lot of numbers for you first let's start with gm jumping after net income grew nearly 35% are a year ago strong staelz of pickup trucks in united states 1.68% premarketing to alphabet, of course, the google parent, also rallying before the bell revenue rising more than 20% by a surge in mobile ads also by youtube they own 4.27% jumped in premarket, well we have got news on apple, apple
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feud with qualcomm heating up apple stopped paying iphone manufactures for royalties owed to chip makerer apple sued qualcomm in january royalties claimed to be excess forcing qualcomm to slacker facts and circumstances premarket on qualcomm, as you can see, down nearly 3% maria, headlines, former president obama, reportedly receiving another 400,000 dollars for a speech, the former president got the money after a 90 manipulate interview in front of aa&e network in new york after criticized for agreeing to receive 400,000 dollars for a speech sponsored by a wall street bank canter fitzgerald to help in september elizabeth warren expressing her concern. >> i wish -- am troubled by that the influence of money i
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-- i describe it snaked slithers through washington. cheryl: former president he spokesman says mr. obama will deliver speeches from time to time some will be paid some will be unpaid. >> well, out with the old and in with new mcdonald's this has a lot of people upset, mcdonald's says going to phase out hc orange drink starting monday going to stop kairth after july mcdonald's deluged with tweets protesting the loss one fan, tweeted my life is ruined mcdonald's says going to be introducing a new i think drink this summer hershey with summertime fun towards u.s. summer naigs flavors of america collection has classics in the hershey portfolio kit kat peanut butter cups hershey bars the
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hershey bars says kit kats take imagination to the strawberry confess cal coconut almond flavors tropical beaches of hawaii, but don't eat them if you are wear a swimsuit --, and here she's cheesecake-flavored bars by summers in new york, so we will see. maria: you crack me up cheryl. cheryl: sorry. maria: all good thank you, i really wanted to talk about that snakes slithering through washington breaking news right now president trump just tweeted on va want to bring it to you he says we are making tremendous progress, with the va there has never been so much done so quickly, we have just started, we love our vets! that is something the president has said, over and over again on campaign trail, you know, but interesting on that elizabeth warren comment on panel, she just is against money says going to be a snake slithering through washington your thoughts. >> well president obama was
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kind of against money, until you know -- he i think, it is equal opportunity anyone out there in this country should have the right to earn whatever you can earn so long as doing it legally. >> does strike me willing to take big payments given much he talked about it bad optics why take 100 grabbed. >> so soon. >> why? . >> -- >> why, like, a lot of money i mean yeah. >> i love that -- this -- >> for a lot of people supported him a salary, so doesn't look great but if he does not planning to back to washington as hillary clinton did -- >> elizabeth warren is troubled about we will keep following that. >> coming up fighting robots ibm tests watson instead of trading one way put to use president ceo ginni rometty with me addressing company
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notifications. >> winners and losers from last night's first round nfl draft we've got it for you next. back in a minute. look closely. hidden in every swing, every chip, and every putt, is data that can make the difference between winning and losing. the microsoft cloud helps the pga tour turn countless points of data into insights that transform their business and will enhance the game for players and fans. the microsoft cloud turns information into insight. i am totally blind. and i live with non-24, a circadian rhythm disorder that can throw my days and nights out of sync, keeping me from the people, places, and things i love.
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but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business. >> first pike, in 2017 nfl draft, cleveland browns select miles garrett -- >> a lot of excitement there, the cleveland browns drafting defensive end miles garrett in the nfl draft joining us to go over hoolts from first round of the nfl draft is kriecht eo coastala advisors llc richard big daddy, good to see you thanks for joining us what do you think browns selection. >> no-brainer, they needed that they needed defense, and
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that guy is a stud we saw a lot of quarterbacks earl part first round nobody was expecting that why was it a shift to the quarterbacks here so early? >> i think everyone was so worried about not getting if quarterback, that everyone all of a sudden became aggressive says let me get him because of what happened last near -- >> even -- surprised by that said he hadn't heard much from the team, and -- seemed caught off guard. >> supposed to be dominated by defense, was it surprising to you that so many offensive players were picked. >> it was surprising some guys that fell back, i was kind of shocked by, you know, and i think a lot of people were. >> a lot of money -- >> juice lose a few dollars. maria: amazing. >> one of the problems for the quarterbacks into draft next year's quarterback draft they are talking about could be one of the best quarterback classes ever, so i think maybe that weighed on these guys a bit kept expectations down once one went the other two kind of team wanted to get the
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other two. >> yeah, i believe you are right with that, but i was shocked if i had to pick, a that watson didn't go first i am not saying trubisky is not good enough or other one seasonality but out of three watson the guy has been there, the winner, and -- again, you know, it is -- they put three pieces in steak out when one do you want. >> cancer survivor stealing the show to announce battle more ravens draft pike listen to this. >> with 15th pick in the 2017 nfl draft the baltimore raevens select marlon humphrey. >> everybody was watching that, 14-year-old battling a rare brain cancer since 20 is a now in remission that was a pretty incredible moment wasn't it. >> yeah, you know heart warming to see a child how
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many kids get to do that survive cancer whole world sees you announcing that pick. >> i think a career doing that. >> yeah. >> richard radiate great to see you, the economic report card straight s ahead we've got gdp number in less than 4 minutes, then ibm chairman ceo president ginni rometty joins me weighing in on her work trump administration especially when it comes to jobs education, and growth back in a minute. think again.
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maria: welcome back, good friday morning thanks so much for joining us. i'm maria bartiromo. it is friday, april 28, top stories right now 8:30 a.m. on the east coast. we are moments away from first reading on first quarter gdp, if expectation for growth 1.2%, the number will be out in less than one minute earlier this hour i spoke with national economic counsel director gary cohn told me he thinks the president's tax plan will help stimulate growth. >> that increasing revenue as a result of this -- this plan will will move the needle on growth is the idea. >> absolutely we're going to move the immediately on growth going to widen the base that we are going to be able to tax because we are going to get rid of deduction we think that is a much fairer tax plan for everyone. maria: ahead of numbers futures engdz higher expecting higher opening for broader
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averages dow industrials up 20 points s&p pof the nasdaq, just into negative territory flatlining this morning earnings driving action this morning gm exxonmobil big names reporting first quarter, gm reporting better than expected first quarter earnings as well as revenue, profit more than doubled from a year early year on higher oil prices, gdp came out up .7 that is 7/10 of a percent below expectations expectation called for growth 1.2% getting gdp first quarter if is first look at gdp first quarter, and it is up 7/10 of a percent we will watch for any reaction here so far markets are steady, up about 18 points on dow industrials, again gdp hitting tape up 7/10 of a percent below expectations president donald trump marking milestone 100 days in office since inauguration has been meeting with country leading
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chief executives to get input on policy reform and job creation, one occasions sought is a on upgrading the government i.t. system. >> we have a computerism in this country old. >> and one of the things we're doing in fact, watching a wonderful woman from ibm and others --. >> joining us right now is chairman ceo president of ibm ginni rometty great to see you thanks for joining us, you remember that day when you were, meeting with the president. >> yes. >> so what has the president done in terms of reaping out to you, your colleagues in business to get input what are questions how do you see it. >> i think overall the whole asking reached out very
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broadly it is a dialogue, so it is questions input clarification back-and-forth i think good for policy plashl for policies that are long term, in a really nature what are big issues from clearly you had tax on this morning i worked years on, on tax, and broadly on tax one big area, i think another one that i put a lot of time on is workforce development but to your comments on tax earlier this morning, i think you know, on that, a modern tax system badly need have for many years i have been in different sessions in d.c. about this topic being proposed i think a good propose it has to have really two big pillars about, the rates, and territorial system to comebackback without approximate i think around the edges everything else can be negotiated you have to stay focused those are most important things. >> the president takes about some five trillion dollars in money being overseas, that he
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thinks an attract tax rate with an lure money over there as ceo ibm he money overseas so ma so many companies with hundreds of billions overseas would you be asked to move that we are in 170 countries do very good job balancing investments around the world this would influence i think broadly influence decision making a very fair basis makes america competitive to build put investments you have to have certainty around that that is part of the issue today you don't want to temporary stet of he relief for this you need what is a long-term strategic platform you can make decision on i think people will make those kinds of decisions because you will do what is in best interests for both your company and for people clients you serve. >> at that point, right now, it is 35% tax, that you are paying. >> that is right. >> to bring money overseas
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gary cohn wouldn't confirm specific number said whether 8% 10%, 12% that is got to be a lot -- >> that is right why i think wrong to focus just on particular numbers right now we've got to get two pillars competitive rate a good modern territorial system to above cash back-and-forth keep an eye on big prize laid out broadly now work through process getting that done in a way makes us competitive and, yes, there a does have to be investment in this country you want to going to spur growth if you have three tenets a good plan sna do you think that is going to spur expenditures by business one thing that we have notified just over last 78 or 10 years, businesses have been sitting on cash because of regulatory environment probably lots of rulemaking out there new rules as well as the tax rate, so do you think that we will actually see unleashing of business, sort of things that were on the shelf will come off the shelf given 15% corporate tax rate. >> that is what they are talking about i think you have
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to go back to one fundamental when something made more certain you will get better decisions, so when you make a change like this that you know going to be there for some period of time you will make a strategic decision, more than you will a series of shorter term ones for us we have made i think the right strategic decisions overall being 107 years old as i said in 106 years old in 170 countries we've got a pretty balanced cash portfolio around the world investments around the world, so but i do think again even for us and others if you got a pretty definitive view you can count on a period of time you will make right decision. >> skeptics around the trade part of it let me come to you with that you are 106 countries -- >> -- 106 years old. >> 170 countries but given all of that exposure do you worry about a border tax import tax president called it reciprocal
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tax, i know border tax is not a -- what about tax in the trade part of the economic policy. >> we are net exporters may not prairn particularly to us i think the bigger point when you look at taxes like that around the a border unintended consequences you take a look in total what it is you are going to do why i say i think you've got to focus always on total picture, the bigger part of tax i have been focused on is really been trade has been digital trade this is i think a topic that is pervasive not only in this country in all countries around the world that we get fair digital trade you think how many trade policies were written decades prior before digital businesses, products the mort most important thing any trade agreement has been this point you have to have free flow information goods across borders so that is has been to me one of the most important things to be negotiated, whether you are in europe across different countries in
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europe or european union with united states we worked hard on digit two dozen so would modernize trade agreements for this time and place things like you don't want to have to give up intellectual property to do business in the country or that you should be able to move data freely across borders, and not be told it has top kept in one country irrespective, anyone in international company of any kind, has to have those things to really operate freely so that to me is one of the most important issues that is around trade. >> important point that you are making do you think that wilbur ross trade executives dealing with this are including this digital trade? >> i am very pleased you listen to what he said very clearly this is one of the more important tenets to include in what they have got here i think they listened very carefully to that very supportive of that. >> what about 3.8% obamacare surcharge they want to get rid of in this tax plan? can you characterize how much
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of pressure the health care cost has been i mean any large company has been forced to pay health care benefits given the legislation, over the last 8 years, do you think this is going to be a relief to see repeal and replace? >> as a big company and actually as a top employer where people are most important asset, we focus more on i need a healthy workforce a competitive workforce i need to hire people be able to compete with that, so i look at health care as something that i need to do, to have a good business, and to have great employees, so -- >> doesn't matter. >> really doesn't matter we are going to do what is right to take care of employees and we do we spend a fair oment on health care well over a billion dollars a year on health care the right thing to do in a competitive market to have the competitive workforce. >> it was interesting to see the meeting, that you had with the president including one with ivanka trump german chancellor angela merkel tell us about that at the white house with german chances
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legislator angela merkel and ivanka trump about what was that about. >> background this is to me one of the most important issues the country faces, is workforce dwement you look i.t. a half million jobs open there are over 5 million jobs open no this country why aren't they filled the biggest reason not filled is skills this has been a topic very consistently on both white house administration interested in, and we personally have been very dedicated to i term new collar skills in era doesn't mean you have to have advanceed degree not necessarily blue chronologicalar not white collar a new collar, two xthe average median salary that meeting with chancellor merkel about one sxek apprenticeship what do you do to build these skills we have three big ideas can be done scaled in this country i think quite doable, one is around a new form of education, we have something called pathway to technology
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schools across the country public schools 6thier high school working with community college the criteria are just teach a curriculum that business will hire, businesses like ourselves we have 300 other companies doing this provide mentorship give kids internships if you can, graduation, in success rate 11x compared to low income 5x compared to regular schools kids come out with associate degree in six years it is not standing program to get the right skills out there -- add that to apprenticeships to credentialing would modernize, a wonderful example of a public/private partnership, we will be near 100 of these schools by end of this year almost 50,000 kids, we are already hiring them in, so this has been a real focus and in my view very positive practical step can be taken
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forward of change face of skills in this country. >> a really important point that you are bringing up because there are jobs available, but people don't have the skill sets for those jobs much do you think this should be the onus is on business, the onus is on government, to actually create this training, that is required to get the jobs that are available. >> this problem will only be solved working together, do i think the administration understands that clearly this will take two parties so as an example, what can government do there are things like perkins act passed through house needs to go to senate all it says there is -- every community college gets funding to get your funding you have to teach a curriculum business will hire very straightforward practical work steady program says funding lots of think part-timer jobs in school we want you to do it with the small business or do it with another kind of company, don't just do some sort of other task that isn't going to build schools at the same time there are things in policies
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government can do secretary devos i think very much on top of this understands very well is very focused on it that there is a set of different kinds of programs that can be put in place, and then let the public let private work and let it do its job, so we will come together with that, as i said i've got 300 companies, that are willing to contribute and do this, and united states we can scale that kind of mentorship apprenticeship easily across the country. >> great insights stay with us we are going to talk about ibms business when we come right back. stay with us. right after this break. ♪ if you have afib not caused by a heart valve problem,
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>> welcome back back with exclusive interview with ibm chairman ceo ginni rometty you said a few minutes ago ibm is in 170 countries around the world we got a gdp report, in u.s., that shows growth of under 1%, 7/10 of a percent gdp worse than expected contrast the world in terms of economy where is growth.
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>> well, look i think everyone is looking for new areas for growth we are in period of time when almost every company is trying to reinvest itself, including ourselves we have been into our transformation here as we have evolved our core franchise businesses we have built what is now the enterprise cloud the enterprise cloud 14.7 billion built, talking about watson now tr artificial intelligence policeman for business a billion individual consumers by the end of the year some way i see, this is rooted under our transformation, going to get to what do i see around the world it is really this belief that all of this data we have talked about forever is actually going to make a difference and be basis of competitive advantage no matt what industry everyone trying to reinvent themselves to take that make it be competitive advantage that is root of our whole foundation of our transformation i was talking about what we do for companies help them be competitive in that era. >> if you are not looking
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behind you saying who is going to disrupt my business, you are probably not doing a good job because there has been a lot of disruption every industry. >> i remember years ago people would say to me boy ibm having to change i would say be careful this is coming to a theatre near you this is happening, every single industry which it has, but do i believe at this point the future is going to be about what we call cognitive this idea you are going to take things have systems you don't program they understand they reason they learn going to help change every part what you do in business operations products services artificial intelligence is not a feature a fundamental ten ate how world will operate will be better for it. >> question about world where growth is you said a.i. you have a.i. platform for business explain what that means in terms of artificial intelligence, what is it how
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is it transforming when i say could too much billion consumers thee big things we do differently if you think about going to a public search engine, actually, that only searches 20% of the data in the world, 80%, is with companies, it is behind their own firewalls their data it is very rich in usage so what we do with artificial intelligence is focus on 80%, but vertical domain you have to know what it means to be a doctor to be under writer a financial person, you and therefore it is a very different it is not speech to text not asking about when that is not what we're doing we do that but this is about, no -- these are systems that actually understand what it is to be a doctor, and, therefore, can assist doctor so we are looking for assistance at vertical domain oriented, second point i think a key point when it comes to making another company successful, a very deep belief, in architected this
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when clients bring 80% pressure data no won else has access to we s ensure them insights belong to them don't go into a big area that makes one company rich not anybody else, and i think we have seen how that is played out, so vertical in nature, assuring a client insights are their own what it is that you do all around that, has got to do it breadth of information it is sound sight motion sensors into this therefore when you he change yesterday abentayga announceed to manufacturing using watson watson assisting what manufacturing looking at defects, on star look at health care, boy we have now gone through, from oncology genomics clinical trial matching, assisting a doctor with what it is they do in their process. maria: taxes with done with
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assistance of watson. >> this can happen within seconds, what watson is doing in terms of digesting speeding on information happens quickly, is this how you tax into growth you reported earnings couple days ago people saying 29 straight quarters revenue declining, this is an issue is this a law of large numbers. >> a, not 29. but i think. >> how many is it. >> that is even insufficient way to describe us, because, that doesn't count 9 billion of our 4 billion dollars currency this point in time in our transformation you see two dynamics playing out you know we do core mission critical systems of the world may not be in growing markets but really important high value businesses in to us business mold has been about value not just size if it was size, we would never have made all divestitures weren't high
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growing areas also a reinventing you move commoditizeing businesses out invest in new you've got big core franchises we run, in declining market but important we built on top of that businesses of the cloud of watson, data analytics now 33, 34 billion dollars, in size, 42% of ibm, last quarter grew 13% so those are built on top of those core franchises, so that is the dynamic, a steady important high value market that is important to clients high value but not growing, and on top of that we built already in this short period of time 34 billion dollars of businesses around cloud data analytics watson cognitive mobility security. >> one of the great companies in the world continue to go reinvent itself thank you so much good to see you, we will be right back. # and the urinary symptoms of bph. tell your doctor about your medicines, and ask if your heart is healthy enough for sex.
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maria: welcome back, final thoughts from all-star panel mike murphy. >> i think earnings have been, a lot of people wondered whether or not they would be able to support the market i think they have one hundred percent shown that for the most part we can support the market at these levels, now, when you put tax cuts on top of that, however, it is -- finally plays out, we are going to get some form of tax cuts positive for competent consumers for individuals positive for companies going to be 80 degrees in new york city this weekend a lot of positives out there. >> we need to greeting you saw gdp number 7/10 of a percent. >> awful number stream of auf numbers if we haven't made the case for need for tax cuts it has to be here these things have to get done president talking about a progrowth plan, they have got to get republicans together, on this it is probably going to have to be republicans do it need
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great gdp numbers sadly reiterate that. >> highlights need for some sort of fiscal stimulus i have been talking to investors this week they say we are encouraged we need action the next 100 days first 100 days a whirlwind if they take two steps forward one step back on health care will get there same on tax reform will get there, is to it will be an interesting next 100 days. maria: we got the white paper on taxes, this week, and by all accounts, this looks like a growth plan. >> for sure, i think that is really the thing i spoke about earlier, whether you are a republican or democrat, you know, the economy needs growth, and this should spur growth, and that is really what we need we can't continue on sub % gdp growth it is this tax plan going to stimulate growth let's do it it is going to be good for all people. maria: plus as said we are talking about a health care bill possibly next couple weeks actually gary cohn said could happen this weekend. >> well gosh, if they can get
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together, we saw still room to go there, moderates, freedom caucus not forget regulatory story first 100 days a lot accomplished we talked about 3% growth that needs to continue i love to see president trump next 100 days push that as hard as first 100 days will really help out small businesses. >> we will see what happens in terms of of the legislative agenda, big things on plate. >> big things on plate disputes to settle in congress but it is early, i know everyone likes to talk 100 days but it is early. >> great to see you all great panel today, wall street week 8:00 a.m. eastern join me are for steve ballmer stay right here we will be right back. #
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the banks come crawling to me. everything you need to get a better mortgage. clothing optional. lendingtree, when banks compete, you win. okay! ...awkward. >> have a great weekend, everybody. "varney & company" begins right now. stuart: maria, thank you. the amazing amazon started out as an on-line book seller. today we're going to call it the dominant technology company. good friday morning, everyone. in a half hour amazon stock will go up 40, maybe, oh, 30, maybe $40. getting close to $1,000 per share. 946 around the open. why is this happening? well, it's profits are surging. its business plan works. plow money back into the business and grow some more. we follow this company on a daily basis. it's now king of the technology


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