tv Varney Company FOX Business May 2, 2017 9:00am-12:01pm EDT
how are we going to pay for it. dagen: amen. >> everybody calling it a trump rally and then they're growing. >> g.o.p. needs to unite. they better unify. dagen: "varney & company" starts right now. stuart: yes, it does, thank you, dagen. good stuff. the president caves on government spending. the democrats exploit a divided republican party and claim a big win. good morning, everyone, the republican party cannot agree on health care, government spending or taxes and to get anything done, they have to give in to democrats. cornyn says, we can't pass anything. it does not include anything with the wall, but keeps money flowing to sanctuary cities. that's why the president it talking about gas tax to pay for cuts. and continuing subsidies for
obamacare and keep the government open plan includes new domestic spending, all of this contrary to president trump's election promises and the republican party is still divided on taxes and they're still several votes short of agreement on health care reform. despite winning the house, the senate, the white house, the republicans cannot get anything done. that's the current state of politics. on the money front, it's all about these guys, the fabulous five. they are sucking in all the money. they're all at record highs while the rest of the market remains fairly flat and today, speculation what apple will do with that, a quarter trillion mountain of cash. that's all there is speculation with a shareholder dividend. divisive politics and really big money, that's what we have for you today. "varney & company" is about to begin. ♪
>> that's america today, more than 40 arrests were made on may day, that was yesterday, of course. tens of thousands across the country took part in violent anti-trump demonstrations. meanwhile, democrat national committee chair tom perez spoke at an immigrant and workers rally outside the white house, saying, quote, no human being is illegal. i'll guarantee we've got more on that coming up for you. a live look at capitol hill 'cause 30 minutes from now, united airlines chief oscar munoz will be grilled about that dragging incident. we're on that one. some say that the president caved on the spending bill and it's a win for the democrats. come in a former reagan economist art laffer. that's the way i phrased it. it's a cave for the president and a win for the democrats. are you going to take me on on that.
>> no, it's a win for the democrats. defending their programs and just enough votes to be able to do that and with the republicans not united, there's no way of sacking the liberal city, if you will, by the budget. but as time goes on, stuart, we'll see how it works out. i don't think this is going to be the long-run solution. stuart: i understand that, but it's a very bad sign for the early going. i've got another one for you though, art. president trump says he'll consider a gas tax, raising the federal tax on it was to help pay for infrastructure spending. what do you say, i don't think you like that either. >> well, you know, i've written a lot on this, stuart, i'm all for a gas tax if we could reduce other taxes by equal or more amounts. a gas tax is one of the least damaging taxes. all taxes are bad, some are worse than others. the gas tax is one of the least bad taxes and we could-- if we could use the proceeds to reduce other taxes like income action corporate tax, i would be with that every day of the
week and twice on sunday and i think, stuart, this is the api ture, and the democrats, all they want is a carbon tax. would i love to see the growth agenda and nothing is more important in my mind. stuart: that's my point. because the republican party is so divided, you can't go straight forward and get the tax cuts, no, you've got to balance it out with a consumption tax so you can bring some democrats in because you don't have a united republican party. >> that's true, that's what we had to do in 1981, too with our tax bill when we have graham lotta and we got lots of democrats compromising letting them be part of it. i think the gas tax increase, if matched by more than that in the income tax cut or corporate profits tax will be a great trade-off and if we could bring 50 democrats on board, all of this unity of the democrats,
solid front and all of that, would vanish before our eyes and we would have a reagan administration. stuart: are you a little bit disappointed today, art laffer? you always put a bright smiley face on things, that's the kind of guy you are. >> the budget was awful, stuart. the budget was awful, but you know, it's classic for what happens in these circumstances. now, with us in the early '80s, it lasted for two and a half years for goodness sakes. by 8-2, reagan was being trashed and the democrats picked up huge numbers and seats in the house and picked up one in the senate and the bolen amendment and all of that was put on reagan's back and put in chains and it didn't stop us. by '84 waxed mondale and then they joined us. stuart: what are republicans supposed to do, not republicans in congress, but voters, those who want free markets and tax, what are they supposed to do. >> they're supposed to be judgmental on what's deliver
and not delivered and hold the politician's feet to the fire. people deserve the government they get. if they allow this government to give them not what they promised, but to give them something they don't want, they should throw the bums out. and that's the way it should be, both democrats and republicans. republicans are not immune to being thrown out of office if they can't deliver what they promise and health care is a classic case. we should have repealed obamacare two years from now, you know, we have a bill that passes right now, saying two years from now, this bill will be repealed in its entirety and then work on how to provide something else, if something else is needed at all, which i'm not sure it is. stuart: it's the first time i've seen art laffer even a tiny bit down, but he's resurrected himself at the end. see that smile? he's back. >> at 5-6 i've been short all of my life so what can i say. stuart: stay there, art, we'll bring you back very shortly. cheer up.
come on. look at dow futures, we're down-- i'm going to call this a dead flat opening, however, look at big techs, they dominate the market so much. all of them, facebook, i'm including tesla in this one, they're all at or extremely close to all-time record highs. tesla is now,ed 322 per share. i mean, just extraordinary stuff. look who is here this tuesday morning. his name is tom sullivan, a great guy. welcome back, tom. >> hey, good morning. stuart: i've never seen anything like this. the fabulous five as i call them, i've never seen a group of companies so dominate wall street as this group is dominating now. >> it the technological revolution we've been in and these are the new industrials, if you will. this is where the money is going to be made and this is where everybody is going to be spending their money. consumers are going to be buying it. the advancements are going to keep coming. you're betting on the future
and they're betting more technology is coming. stuart: you're a financial analyst or have been. >> yes. stuart: that's what you do. >> right. stuart: you are a financial kind of guy. >> correct. stuart: in good conscience can you tell viewer it's got a ways to go. the facebooks and googles, a ways to go? >> when it's this expensive, you go into it in some sort of buying in process, do it on a quarterly basis over a certain period of time, you just don't dump all of your money in today. the problem is, if you do and the market goes down, these are not ones that you sell, you hold on until they come back. stuart: if i were in my 40's and investing my 401(k) money. >> right. stuart: would i say, yeah, i could see the fabulous five i've got plenty of time before i actually need that money, plenty for it to go up and gyrate. >> where are they going to be five years from now, let alone 20 years from now. stuart: i can't answer your question, but this is not the
dot-com bubble, they're real companies with real money. >> more than a business plan. stuart: apple alone has more than a quarter trillion in cash. >> i know. stuart: we'll get back to that. >> almost as much as you. stuart: very funny, laughing. [laughter] >> president trump floats the idea of breaking up the big banks. what exactly did he say. liz: bringing back suppression era law called glass-steagall, the deposit from the investment banks. this may make elizabeth warren or bernie sanders happy going after the mega banks. what caused the crisis was the democrats trying to fix income inequality loosening mortgage rules to get people a house. and leman brothers, bear stearns. by the way, if you had glass-steagall then, you wouldn't have rescues as well.
stuart: why does the president suddenly come up with the idea of a new glass-steagall break up the banks? where does it come from. liz: because of warren and bernie sanders and. stuart: what has bernie sanders pan elizabeth warren got to do with the president? >> i'm feeling the argument. i'm all for reinstating glass-steagall. liz, you make a big argument. the banks, if they fail, don't bail them out with grandma's deposit money. stuart: shareholders bear the risk if they invest in an investment bank. not the government, not the taxpayer, not the depositors, used to be-- >> used to be. liz: the bailout, this started under george w and obama picked it up.
stuart: it's an extraordinary thing to stick on the table when you've got health care reform, tax reform and glass-steagall-- >> i don't see it as right or left, i see it as good financial management. it was put in the 30's and went out in the '90s and we didn't have a problem with commercial banking. stuart: i wonder if it's trying to get the left on board with one donald trump suggestion. >> and you can't ignore the government role in the housing crisis. >> i agree. stuart: chucked on the table at a time like this, i don't understand that. elsewhere, we've got president trump, he is scheduled to speak on the phone with russia's putin today around 12:30 eastern time. the president says our relations with russia may be at an all-time low. the phone conversation coming up later this morning. the big story on capitol hill,
united's ceo, that would be oscar munosis, he's in, as they say, the hot seat. he'll be grilled by lawmakers over the dragging incident. is this just political grandstanding? a fair question to ask. it is. and this is interesting, a travel alert for europe, warning americans are possible terror attacks in tourist destinations and you know them. more varney after this. why paa spontaneous moment? cialis for daily use treats ed and the urinary symptoms of bph. tell your doctor about your medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, or adempas® for pulmonary hypertension, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess. to avoid long-term injury, get medical help right away for an erection lasting more than four hours.
market opens. and i find this fascinating and somewhat anxiety producing. the state department has issued a travel alert for all of europe throughout this summer. details, please. liz: they're talking about isis and al qaeda, through september 1st, citing attacks in france, the u.k., sweden and russia and they're saying it's not just big tourist destinations like sporting events, it's airports, train stations and gets to the level of hotels, restaurants and churches. attacks and not just bombs, but also knives. stuart: it's not flying over there that's part of problem. liz: it's when you're there. stuart: it's when you're on the ground. that's a frightening warning for americans this particular point of time. ten minutes from now, the united airlines ceo will testify about the dragging incident. come on in, please, a republican from kentucky, he's on the transportation committee
and he will be asking questions today. congressman, the end of the day, what do you want united airlines to do and other airlines to do about this overbooking situation? >> look, the way this passenger was treated, particularly from kentucky, was egregious, but i have faith in the free market and competition. and united responded with good ideas. for instance, the government requirement for passengers to be compensated was maximum 13, 50. $1,350. and united says they'll go up to $10,000 to get passengers to change seats. there are changes that make goodpist sense. stuart: it will be political theater and give politicians. not being pejorative, but congressmen a chance to vent to
the american public and have a go at oscar munoz. >> yes, and i advise students of political science to change their major to theater, and we have a lot of that in the commit. government has a monopoly enforce, and one thing that businesses can't do. and the passenger was dragged off the plane ing the force of govnment. and we shouldn't drag a ceo around using the force of congress. there's a federal nexis. usually states take care of consumers and make sure there's not fraud or unfair practices, but when travel on the airports, in one day you to go to three or four different states. stuart: you don't want new rules, do you? >> i don't know that we need new rules. a few years ago, it was clear the airlines were abusing
passengers, keeping them on the tarmac for hours. and there were appropriate measures. what we need to find out in the hearing, is this systemic issue, is it prevident in all airlines and does congress need to act? i'd rather we don't overreact. stuart: the gentleman who was dragged, he has settled with united. have you had any contact with him or his lawyer because you're from kentucky, he's from kentucky, are' going to be asking questions today. any contact with his lawyer or the legal people? >> i haven't talk to his legal people and i haven't talked to this doctor, but i've heard good things about him. i just came from a meeting from constituents, and someone said they had a relative that this doctor operated on sunday and may have saved his life and nobody else would show up on a sunday and do the operation. it's important we keep in mind, this passenger probably had a
legitimate reason to get to his destination quicker. but i think the solution is not more government here. and i think that united responded appropriately. stuart: they have so far, they've taken step. we'll be watching you later on this morning. thanks for joining us this morning. thank you, stuart. stuart: this is just in from ford motor company, sales down 7.2%. that's this april over last april. that's a premarket check of the stock. it's down 1% still holding at $11 a share for board. now this, president trump tweeting either eject more republican senators in 2018 or change the rules to 51. our country needs a good shutdown in september to fix the mess. not quite sure i get that one, but nonetheless, that's just in. check this out. aeroflight from moscow to bangkok hit severe and i mean
severe turbulence weather, 15 passengers are still in the hospital. >> when you get on the plane they say please keep your seat belt connected. if you had your seat belt on none of those injuries would have taken place. stuart: keep your seat belt fastened. good advice. >> yes, simple. stuart: the headline from the new york times opinion page in honor of may day, when communism inspired americans, what? more varney after this.
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i'm gonna just go back to doing what i was doing. find your awesome with the xfinity x1 voice remote. >> it was may day and this kind of thing was happening in various large cities across the country and this is portland, oregon, 25 arrests and this is in downtown. riders were throwing everything. look at that, wanton destruction, wearing masks, all in black and we've seen it so many times before and we saw a lot of it yesterday. let's not forget that. don't forget, democrat national committee chair tom perez addressed one of the may day rallies in washington d.c., he said and i quote, no human being is illegal. and that's interesting. that's what he said. here is a headline from the new york times, this is the op-ed section, when communism inspired americans.
and art laffer is still here. i want your take on that, when did communism inspire americans? >> i would argue that communism inspires americans all the time because of the failures and atrocities done that, i think convinced americans, the free enterprise, pro growth democratic capitalism is the way to go and it's that example that made it locked tight in the u.s., my view. i don't think the markist model has worked? it hasn't worked in economics or in politics for sure, the mother of all atrocities. stuart: may day is the international workers, i didn't see the workers represented at the riots and that was plain and simple the far left taking their politics to the streets. it was a mass anti-trump demonstration all across the country. hold on a second, art. am i missing something here? >> no, no, go back to the op-ed. they were referring to the
1940's and 1950's and then they called them progressives, but went to communist because social workers in this country were feeling some sort of affinity with them and they changed their names. stuart: go. liz: when are these guys going taking to the streets. when are they going to march for those slaughtered by the communist regimes? >> they're not, they're looking at donald trump at each and every team. >> and i love seeing you there, tom. >> how are you, art? how are you. >> very well, thank you. this is a classic example of these aren't workers, they're organizers who aren't workers. they like job, like output and employment and if we could only get this country going with tax
cuts and pro growth policies there'd be no more riots. people will have high paying jobs and capitol afford to riot or run around. >> you know this, art, people in venezuela are starving, starving. >> chavez and med maduro are not heroes. communism doesn't work and socialism isn't the same as communism. the socialist, capitalist many could nation but what you're finding the socialist sections of crepp government are doing well. the post office and others are not the epitome of progressivety in the u.s., it's the entrepreneurs, stuart, you put on the screen there, the big five, i think you called them. stuart: fabulous five technology companies. >> imagine if the government were as efficient as those five companies, we'd be in heaven. stuart: imagine if the
government designed an iphone. >> oh. >> there you go. stuart: scott shellady is with us, a minute and 10 seconds to go before the stock market opens. scott shellady, cow jacket and all from london still. i don't know why, buts' still in london. [laughter] >> you've been listening to the conversation about the riots yesterday, may day, socialism and what it means in our society. give me 30 seconds of your judgment, please? >> i'm worried i'll be able to fill the 30 seconds up. i actually got stuck in a cab during both of the marches, the pro women's march and workers march. the on thing different between the two, there were a lot of the things the same. both anti-trump for sure, but with the women's march, there was actually women marching. but in this workers march, there were no workers marching because they were at work. they were there just to cause trouble. stuart: we're about to open the market.
left-hand side of the screen, applause so about 15 seconds to go. the box on the bottom there, that's the hearing room in washington d.c., they're getting ready to grill the ceo of united airlines, yes, the dragging incident is back. meanwhile, we're counting down to 9:30, bingo, we are there. the market is open and we're off and we're running and we're up 27 points, 31 points, lots of green the left-hand side and the opening trend is up. now, we're going to concentrate heavily today on the fabulous five. the did he go-- the big names and we'll show you united and other airline stocks because the united chief, he and munoz are on capitol hill later on this morning. and big tech, look at this-- and justin, okay, the nasdaq
has hit an all-time high. why? because nasdaq is the home of the technology companies. amazon down a little. microsoft 69 poip 56. google at 933. apple 147 abouter share. they release their earnings on today and they'll tell us how big the mountain of cash is. we know it's $246 billion ap it now may be above a quarter trillion dollars. who is going to cover this good stuff for us? i'll tell you. tom sullivan is with us, elizabeth macdonald, mike murphy you haven't seen yet and scott shellady live from london. i'm going to start with apple a mountain of cash. mike murphy, there's a speculation that he'll give a one, time dividend to
shareholder. >> that's one of the reasons it went up. >> they'll give dividends, stock increases-- >> are you sure of this? >> that's their m-o. when they started out they didn't have a dividend, and it hasn't been their m-o for a one-time special dividend so i wouldn't count on that. stuart: and scott shellady, why the fabulous five are truly running away with this market? go. >> they're not adding to the economy, they're creating an economy. it's a double-edged sword. the excitement how they're going to innovate and that's upper 5% and have a negative impact. you know, the numbers are as high as two third of all jobs could be replicated by a drone
or a kiosk or rebot. the problem with taxing them is difficult. how will you tax them like a human? governments are going to have to wrestle with this. and the middle class will be-- >> look at your screen now, all of those are at all-time high. it's never been as high as this ever before. liz: apple and facebook are indications how we spend our time and money. apple's revenues are expected to pop, 5% to 53 billion. watch facebook, profits 70% over aor ago. stuart: i've never seen anything like this. >> usually a couple of percent on a good quarter. being back to 250 billion
dollars, apple is not going to move any of that until a tax bill that's you can do so without repercussions. stuart: i agree. one thing about the big tech company. they don't need a tax plan or a health care bill. they're seeing the growth, if you want gret in this market, these are the companies you buy. stuart: i don't see where else you need to go. they're going straight up. luxury stocks, a lot of areas are flat and dead in the water. they're pretty flat. they've gavelled to order to the hearing when they dragged an airline executive-- forgive the use of the word drag. various airline executives. remind me of the tobacco industry, and auto industry and the executives are right there and politicians will have a go at them. i want to aleryou the political theater will come your way later. right now we're dealing with a stock market that's gone up 40 points higher for the dow industrials in the very early
going and look at twitter announcing some new video streaming deal. they're working with major league baseball. liz: that's right, it's live sports, concerts, news and entertainment, live events, so they've got deals now with mlb, nfl, viacom, w nba, pga, so on, and they had viewers 800 hours of live events on twitter. stuart: they don't have anything else they can do, or do they? >> video is where it's going. if you saw on the quarterly announcement last week, they put up decent numbers and i think that twitter is attractive. stuart: we're higher for the dow industrials, look at the streaming stocks there, they've done well recently. okay. 43 up, 44 up. dow industrials.
aetna lost some money. higher profit at merck and raised its forecast, a huge drug company. nice move, 1.2% higher. pfizer helped by better sales of the cancer drug and-- profits down at cvs. it felled fewer prescriptions and lower traffic. that hurt sale of front end store items. the stock is up 5 cents at 82. what's the price gasoline, by the way? 2.37 that's regular. and now president trump sauce he'd consider raising the gas tax. liz: the problem, in new jersey and across the country, you can't have a lock box towards infrastructure. it goes toward things as bicycle path, horse trails or lan scaping on the highway.
it's going to be tough for the president to do something like this. they go insane at the pump when see see it go up. stuart: scott, you're in london where it's $10 a gallon. that's right, you don't want to smoke or drive here. you would consider breaking up the banks, consider-- he's a business man, he'll consider everything, whether it's a good idea or a bad yiet, he wasn't taken that off the table and said that while running. he'll consider them until they take them off the double. we're dealing with a man hf here, rather than the old president who would speak only in certainties. liz: we've been down this road before. stuart: the republican party is totally divided. if he's going to do a tax he could reach out to the democrats and that's what he's
forced to do that. >> you can't reunite the republican party, you can't get donald trump's program through, go ahead, scott. >> and he also is not a dumb guy, he understands the supply in west texas shale and what we found in alaska, putting on a gas tax when gas is $1 a gallon is no big deal. stuart: general motors april car sales down 5.8% xa i remembered to last year. and we just blew scott shellady out. we did right there. the automakers not coming in with wonderful results. it sounds like a weakness to me. >> i think it might be more on that, the consumer and shopping, i don't know that millennials are going out and buying cars. it used to be. there was always a place to purchase a car. i think that gm and ford are coming up with uber and ride sharing, i don't think that millennials need to own and purchase vehicles.
>> to your point, if you look at personal consumption numbers from last month, the lowest number, a minus sign was automobiles. the number one consumption was recreational vehicles so they're buying things, just not wearing cars. >> weet-- by the way, general motors took a charge because of venezuela. liz: we have yet to hear from obama, sanders or elizabeth warren about that. stuart: i wonder if the collapse of socialist venezuela was mentioned on may day, the world's worker day. and president trump floating the idea of breaking up the big banks. look at xlf, that's the all-purpose catch youl etf for the financial sector, it's at $23 a share still. look, i don't think the president is going to be able to break up big bank, he threw
it out there. >> it's not the craziest thing to have a bank of america spin off merrill lynch. i don't know that would be bad for shear holders. i think when you look at the big banks, they've gotten so big that the sum of the parts could be worth more than where the stocks are trading now. stuart: scott shellady, i can hear you from london. what are you going to say? >> you know, on a list of things to do is number 31 on the top ten. liz: exactly. >> he didn't have the bandwidth to get to it. it's hot air and ideas, but at the end of the day he's got so many things on his plate right now are they really going to have these guys come-- jamie dimon talk about the great things he's done and-- >> no, we're not going to do it. we don't have the air bandwidth. stuart: thank you.
look at capital hill teaming up to be the ceo of american airlines, he'll testify along with other airline incidents and look at that why. and all of those are up. murphy, you trade these things. >> oil has come down and it's at the lowest levels we've seen since earlier in this year and also, i think that people are feeling,throughout this country at least, people are feeling good and people are travelling and more people are looking to purchase airline tickets and i think that's going to their bottom line. stuart: you don't want to say it, but i'll say it. the hearings in washington will do zero points, they run a virtual monopoly, there are only four or five major airlines, they hog the routes and they're not going to give them up and the stock keeps going up. liz: the ceo of delta said we don't need new government rules because of market fixes, the
consumer choices for other airlines. stuart: regrettably, i have to say thank you very much to scott and mike and thank you for joining us, gentlemen, all good stuff. we're up 30 points. the ceo is testifying right there. and also happening in washington, next hour republican leadership will hold its weekly news conference. we're told congress is what, four or five votes short for replacing obamacare. a vote could-- how many times have we heard this. a vote could come later this week. we will keep you up to speed on this. why do some cash back cards make earning bonus cash back so complicated? they limit where you can earn bonus cash back
>> 32 points higher for the dow industrials. the company i like to call democratic luxury, they have luxurious production just within reach of america's middle class financially. there they go. they stopped discounting so many items. the stock is up at 42 bucks on coach. united airlines, a hearing therefor on capitol hill. judge napolitano wishes to pass judgment on the hearings of the united airlines ceo. i say it's political theater and you say? >> i agree with you. the free market and litigation will resolve this. a system of litigation, not even feeling a complaint resolved is in chicago with the doctor dragged off the plane. what business is it of the congress? what right of the congress to grill the ceo's like that? >> isn't it the job of congress to reflect their constituents who are merely inflamed about
what happened on some airline? >> no, the constituents reflect their own views by the airline they choose to patronize. stuart: that's a good answer. >> that's a good answer. >> thank you, sire. and sometimes congress questions a ceo, you remember the churning of products at wells fargo and the terrible job the then chair of wells fargo did to explain it to congress, he was out by the end of the month. stuart: and same with auto industry. how did you get here? flying here on a private jet. they left the scene, that's it. it's political theater, but it could have economic consequences on executives who are thought up before it. >> thanks to your friend, the constitution, congress doesn't decide who has broken the law, the courts do. >> one part of this, judge, and i'm with both of you completely, let the markets decide, but congress has
allowed these companies to merge to the point where if you're in atlanta, you have a choice of delta or delta. if you're in chicago, you've got a choice of united or united. some markets, you just don't have much competition. >> that congress's fault or the markets? >> they approved the mergers. stuart: they heavily regulate the airline industry and that's why you've got five major airlines that dominate. >> should there be less regulation and therefore more competition? >> no, i think the regulation-- it should open up slots at the airport and that's how they get the monopoly. >> that's so if you're there and you have choice. stuart: and we've dismissed it on a comment about breaking up the big bank. >> the president can't get obamacare overturned, where is he going to get the authority to do that.
and your fellow from london, the cow jacket, and he doesn't have the wand width. liz: why do it now? you need tax reform or obamacare. repeal and replace, somebody says, is becoming like read my lips for george hw. he needs those things done. >> the president likes to throw things out there just to see where they will land and how they will stick because he is a businessman and almost everything is negotiable. liz: what it's showing underline frustration, like arnold schwarzenegger's frustration with sacramento, he can't get things done. >> i think the president is deeply and profounding frustrated and part of it the republicans are not unified. whatever side you're on, the paul ryan decide, they're not providing him the leadership and muscle they want. the spending bill they're about to pass looks like it's written from mrs. pelosi. >> and hanging out in congress,
who is going to win? >> good question. >> they don't have the political wherewithal. stuart: two people who want to break up the big banks, bernie sanders and elizabeth warren. and now we have the president of the united states aligned with bernie sanders and elizabeth warren on that side. >> and virtually all other 98 senators. stuart: it will not happen, i think we agree. >> does the president gain when we banter back and forth the idea that he throws out. stuart: does he gain? >> i suspect he shows a little more confusion. maybe he's indicating he cannot do anything unless-- >> you can't blame him. he wants to do these things and congress says forget it, we're not going to do it. stuart: we're going to take you to the hearing on capitol hill.
the congressmen who are going to be, and the people bill schuster right there, they'll be asking questions. we'll take you there when he's doing that. you want to listen to are a second? no. mr. munoz is about to speak, let's go now to that hearing. >> thank you, mr. chairman and-- >> you might want to pull it closer. >> better? thank you. and ranking defazio and members of the committee. we thank you for the opportunity to address the committee on this as equally important matter to us, as you said, my name is oscar muneoz. >> can you pull that closer? >> the reason i'm here april 9th we had a serious breach of
public trust, i'd like to again, apologize to dr. dao, to his family to every person on that flight 3411 and of course, to all of our customers and employees worldwide. further, i'm personally sorry for the fact that my immediate response and the response of our airline was inadequate to that moment. no customer, no individual should ever be treated the way mr. dao was, ever. and we understand that. for the last three weeks i've spent literally every single day thinking about how we got to this point. what chain of events culminates in the injury of a customer and the loss of trust in so many more? so last week on april 27th. we delivered on our promise to release analysis of sorts, what happened, where we saw short and to change the experience as all of you have wonderfully articulated. from our perspective there were
four-- there are many failures, but four we outlined. we called on law enforce when safety and security did not exit. and we booked crew at the last minute, we created a situation at our own doing we should have never done. we didn't offer near compensation or incentivize for the customers to give up a seat and therefore, perhaps the largest failure, our employees did not have the authority to do what was right or to use frankly their common sense, that's all in the out line. for that moment we failed. as ceo at the end of the day, that's on me and this has to be a turning point for the 87,000 people and professionals here at united and it's my mission to make sure that we make the changes needed to provide our customers with the highest level of service you come to expect. reliability, but for some of
you a deeper sense of trust and dignity. our report suggests immediate and long-term changes that will at first completely prevent an issue like this from ever happening again and second, improve the overall united speern, not just today, but into the future. for example, as far as safety is an issue they'll never ask a customer to give up their seat once they're on board or ask someone to remove a customer from a flight. and as we constantly do, a reevaluation of the booking, it's not necessarily in this case, but to reevaluate and if faced with an overbooked situation and will occur because of many, many factors and identify volunteers earlier and offer incentives up to $10,000 because, common sense says you can't stop at a number.
if no one is moving from their seats, you have to offer more options for travel on top of that and that's the combination of things that we do, of course, we're not going to move our own crew, our own folks around unless scheduled 60 minutes before departure so we don't have the same situation that happened. as an added additional policy review that had nothing to do with the incident. we've eliminated red tape around permanently lost paing, no questions add $1500 for perm nem lost gunneling and later this year, we'll roll out apps on our phones and give front line employees the ability to compensate customers when servi service disruptions occur. if we break it it's up it us to fix it. that's the work we're doing. these changes are just the start and i understand it, i also know we need to do a better job of solving problems at the moment. making it smoothier for
customers when challenges arise, some without our control p some within it. when i became ceo 18 months ago, i promised we would make united the best airline not only for our customers, but for our employees to work with. i said it because i believe in this country, in business since the earliest days of aviation. that's almost a hundred years of flying. and they are carrying hundreds of thousands around the world and before the day is done we'll take off and land almost 4500 times and 84 million people to 50 countries around the globe. it's routine to be in washington today and china tomorrow. our united team and others, have truly made that around the world and made it ordinary routine and we had a horrible failure three weeks ago, that's not who we are and it's not
this country and frankly not this industry. we've had many, many successes and it's important to note, but we're hear to talk about certain discussions that won't happen again. we'll work incredibly hard to reearn not your business necessarily about your trust. that's the most important thing for customers around the world and more importantly as we've proven over the course of last week, our actions will speak definitely longer than our words. we thank you and scott and i look forward to answering any questions you may have. thank you. >> thank you, mr. sprague. >> good morning, chairman schuster, ranking member-- >> mr. munoz said almost everything he ought to say and he said it. the stock is up 2% it's hard to pound the man having said what he just said. he was apologetic for the
incident. we've looked at the booking, we'll pay up to $10,000. the man appeared apologetic. >> he was. but as e-mack pointed out. he wasn't that way in the immediate aftermath. they'll grill it because the members of congress want to be on the news and they're spending our tax dollars to put this charade on. stuart: had he been more confrontational there would be more fire from them asking questions. >> we're not sure it's the wells fargo john stumpf. but all the wrong things to say. by the way, his boss reaccommodated munoz's title and pay tied more closely to customer service. so behind the scenes at ual, more drama.
>> he did get knocked down a notch on the corporate ladder. stuart: he's taken a hit. liz: he personally. stuart: and now he's apologetic. >> like you said, it's phony blown waloney theater. and in his heart, he's going to say i better not say anything bad about the passenger. the passengers in airlines today, what a crowd. what a crowd. stuart: they're not happy. by the the way, that gentleman from alaska airlines, there are five airline executives on the panel and each will give opening statements. that's the alaska airlines guy giving his statement right now. what we were interested in was united airlines, oscar mun oechmunoz, we won't run this on the screen again.
i think 20 or 30 times. >> oh, i want to see it. stuart: the gentleman who was dragged, we're not allowed to know what he got, but the hearings will continue today. and no impact on the overall market. we're up 4 points. the airlines is doing well, i think up 2%. united airlines back well abo above. and a perspective on hearings we've been watching so far this morning. you remember the tobacco company executives facing a very hostile congress, remember that? do you remember the auto company executives, hammered over blailouts. do you remember that? and today i'm calling it political theater involving united airlines and other airline executives. 's been hauled over the coal for the dragging incident.
united reached an agreement with the man who was dragged. they've changed their over booking policy and offer up to $10,000 to get passengers to switch flights. they will not take someone off the plane once seated. what is the congressional committee to do? first, provide an outlet for the outrage over the accident. passengers can an i void the airline and investors can sell the stock. the flying public should have a choice and aim it to the man on top. second, these hearings provide an outlet for politicians to show that they're representing. and they can tab into the frustration that flying has become. it's political theater just like auto and tobacco bailouts and it has it televised in this world.
and breaking news, house g.o.p. about to hold its weekly news conference. we expect speaker ryan will give an update on the health care bill. we're told it's close, but we've been told that, many times before. we're told they're four or five votes short of agreement and all the votes they need. when that press conference starts you will hear it bus it might, might move the market. 10:01 eastern time is where we are. dow industrials, 20,916. look at this, all-time highs for facebook at 147. test are earlier at 323. facebook all-time high earlier, at 152 i think they reached. microsoft did just hit an all-time high. microsoft hit about 69.50, in that area, but it was an all-time high.
now politics, let's get back to that please. president trump, i say, caved on the spending bill and democrats are calling it another win. joining us "town hall" editor katie pavlich. would you disagree, the president caved because the republicans are just not united? >> there are two issues. this obama represents a obama type budget than it does a donald trump budget moving forward. the white house is arguing they got a lot of good things out of this. $20 billion in increased defense spending, more border security increase in spending but truth is looks like a democrat budget. optics, in the first 100 days of president trump's new administration, a government shutdown. that would not have been ideal for them. again the white house is arguing that, you know he, this is old budget that should have been done by the previous congress under obama.
they lucky they got five months out of it. it will look more like a democrat obama prioritized budget. moving forward they will focus on president trump's campaign promises. when he has the majority in the senate, house, white house, hard to argue you didn't get a lot of what you campaigned on. it is not just president trump but republicans. stuart: this is divided republican party. i don't place the blame with any particular faction of republicans. they were elected to govern and they're not governing. >> regardless divisions in the republican party, promises were made. planned parenthood promises was not made just last year but made eight years in terms of republicans going out on the campaign trail, getting backing of very significant, very influential pro-i have life groups to get behind them on promise they would he defund that organization.
president psalm dade i'm allowing to keep funding as long they're not doing abortions anymore. since the inauguration day, planned parenthood clinics performed 81,000 abortions. that is something with republicans in terms of political capital, campaigning, putting out political ads are paying a lot of attention to. if they not deliver with their own budget full control, they will see primary challenges like with the tea party movement just a short couple years ago. stuart: well earlier this morning president tweeted about this budget deal. he basically said what when he need is a good government shutdown. i mean he is looking forward to five months to the end of september. what was the exact wording, judge? have you got it for me? >> i will have to find it. stuart: the actual tweet itself was not exactly direct and clean cut. he wants a change in the rules so it takes just 51 votes to get budget passed. he wants to change that rule. maybe we need a government shutdown to get everybody in line. that is what he was saying.
it was a very, i can see some of the republicans gypping to approach the microphone now. when we get to paul ryan, speaker ryan we'll take that. have you got that? >> i have it. >> reason for the plan, we need, we don't have the republican vote there. either elect more republicans in 2018 or change the rules now to 51%. we need a good shutdown in september to fix that mess. stuart: what do you think that mess. >> i think electing more republicans is better strategy. once you change the rules around you end up with something that the founding fathers did not intend. one thing, stuart, people forget, gridlock in washington, d.c., is supposed to be the norm. that is what is supposed to happen. the government of the united states of america was set up so when legislation reaches the president's desk, it has been thoroughly debated, thoroughly vetted. that is a good piece of legislation. government was never intended to just push through all of these big pieces of legislation for the sake of doing something.
when it comes to government shutdown, there is always a lot of fear-mongering what that means. the truth is, essential government functions continue during a government shutdown. just gives people a little bit of time, regroup, figure out the priorities and negotiate what they're going to spend money on in future. stuart: left-hand side of your screen, that is martha roby, alabama, talking about the working family flexibility act. that is what she is talking about this moment. we're not bringing you that. we will bring in speaker ryan. he will i believe take questions. he usually does. that could move the market because everybody is going to be asking where are we on health care reform please? we're told they are four or five votes short required 216 votes. they're four or five short but people saying we'll get a vote this week. what paul ryan says may move the market. it will certainly be very, have he interesting. katie, i have got one more issue for you. dnc chair tom perez spoke at the
may day rally in d.c. yesterday. he used it obviously as an opportunity to knock president trump. he refuse to mention him by name. he said nobody is illegal in america. i think the gist of what he said. that ties, that ties the dnc to a very extreme position. i'm sorry, you don't have time to answer that, katie, paul ryan is speaking. here we go. >> a couple of things. first this puts more boots on the ground to bolt sister border security. in fact this is the biggest increase in border security funding in a decade. it provides more resources to combat the opioid epidemic which is high priority for republicans here in congress. it expands the school choice program. that is something many of us feel passionately b expands the d.c. choice opportunity scholarship program. tç maintains our pro-life protections t contains no new money for obamacare. no insurance company bailouts.
it takes major increases in defense spending while holding the line in non-wednesday defense. this is something people are missing in important story. i can not understate how much after game-changer this is. i used to negotiate budgets under president obama. under president obama, democrats said increase in defend spending, tied to increase in non-defense spending. you want to help troops, i need as much mon any for discretionary spending that is the bam rule. they insisted on this even as our military plunged further into readiness crisis. we got to the point air force pilots were going to museums to find spare parts over the last eight years. got to the point some of planes are outdated, whole fleets would qualify for antique license plates in virginia. this forced parity that we lived under the obama years, really constrained our ability to
rebuild our military for this century. this appropriations bill changes all of that. no longer are the needs of our military going to be held hostage for increases in domestic spending this means we can finally make real important strides to increase, improve our readiness. it means we can get our servicemembers the tools and resources they need to confront the threats we face all around the world. we have a lot more work to do to rebuild our military. this is a very big first step. $25 billion year-over-year for our military. you do not have a corresponding $25 billion increase in domestic spending which is what obama would have requested and required. that is not here. we broke this parity. we think is really important step in the right direction. the first responsibility of our government is national defense. under president trump we are truly putting that first. we are excited that we're honoring two big priorities, a bigdown payment on border security and a big increase for our military so they can do
their jobs. >> good morning. stuart: i'm sorry, speaker paul ryan obviously trying to put a positive spin on the budget deal. the republican party is under heavy criticism for not including funding for the wall, keeping funding for plannedd, ng funds from sanctuary cities. the list is long, long indeed. speaker ryan comes up to the podium says what about the vast increase in military, defense spending? we need it. we've got it. it is in this budget. that is a good thing. doesn't work for you? >> no. the president at one point, couple months ago he wanted 51 other 52 billion in defense. when it got down to the budget they asked for 30 billion. they got 12.5. was it increase? yes. but you small business what the president was looking for. border security is for technology and repairing the
infrastructure that they have got on the border. it is not for new, more border security guards on the border. stuart: lizzie, do you think that speaker ryan's job as speaker is in jeopardy? liz: yeah. republicans did not make his job easier. they are like gnats in a hurricane trying to corral them solidifying being a bloc to support the president agendas. i think midterms is in play going on for the republicans. stuart: strong stuff. katie pavlich, i know you were listening. do you think paul ryan's job as speaker is at stake? >> not necessarily. i do like lizzie's comments about gnats in a hurricane. that is a good one. republicans are you tough to deal with. they're not monolithic like democrats. they think individually. they are dedicated to their constituencies. it is difficult to wrangle that many house members from different constituencies on the country same page. stuart: granted, difficult job. the republicans have not been
brought together. right by the speaker ryan or by the president himself. judge, comment please. >> sanctuary cities thing, failure to address it in the budget is very serious. there are a half dozen litigations around the country on sanctuary cities. the judges will say, congress had an opportunity to address this and chose not to. therefore we're not changing anything. therefore they don't have to comply with i.c.e. they still get all the federal funds they want. stuart: katie pavlich, if there is no health care deal this week and voted on this week, again, is paul ryan's job as speaker in jeopardy? >> i don't necessarily think so. i think that the american people i think are more patient than we give them credit for although republicans have taken eight years to campaign against obamacare around call for the repeal of the legislation. i you think giving more than 102 days to get a massive health care bill repealed and replaced is fair.
let's not forget. the reason why democrats were so adamant, nancy pelosi was so passing the thing to see what was in it, because they knew once it was solidified, written into law it would be very difficult to repeal for number of reasons. first of all because republicans would have a hard time coming up something to replace it with, some of the things in obamacare a lot of americans like. preexisting conditions. keeping your kids 26 year old on your plan. stuart: true. >> americans say they want it repealed, aspects they want repealed absolutely. but there are also some that make it impossible to fully repeal what they're demanding in the new bill. that has to be sorted out. stuart: i hear you, katie. ask the same question before we move on from tom. is speaker ryan's job in jeopardy? >> yes, because of what liz said, the midterms are in play. i do believe they are. in my old state of california there are seven seats that were heavily won by hillary clinton that are currently occupied by
republicans. that seven, they need 22 or 23 seats to gain control. seven in one state. stuart: okay. peter morici is with us. tenured professor of economics at university of maryland. peter, i will take a little side track here for a second. my contention is the republican party is split. it is divided. it is not unified. therefore president trump has to work overtime to go towards the democrats to get anything done at all. he proposes, or he suggested a gasoline tax, a hike in the federal tax on gasoline. this i think is because he is so, republican party is so weak. what say you? >> i think there are two things going on here. one the republicans don't, conservatives don't have majority. moderate republicans increasingly look like democrats when it counts. the second thing is, you know over on the senate side, constitution, i disagree with the editor of town hall. the constitution doesn't require
60 votes to pass legislation in. filibuster historically was one person standing up until they collapse. wasn't people checking a box saying we don't want to vote. that is what happened. up to mcconnell to get this straightened out. mcconnell is weak leader on senate side over and over again. one of the reasons taxes went up on wealthy during the obama administration because he blinked on repeal of the bush tax cuts. he went along with extending them for middle class but without extending them for upper class simply to get past the problem. you know, trump is really being asked to do a great deal. ryan is being asked to do a great deal. it is time that republicans started behaving like republicans or give up the charade that they're a political party because they're not acting as one. stuart: hold on a second, peter. left-hand side of the screen, congressman scalise, he has just said, our bill, that is the new health care bill, protects people with preexisting conditions. so he is saying, he is maneuvering and saying get this
thing done. he wants this bill passed. he wants it passed soon. it does protect preexisting conditions. peter, okay, it protectsç preexisting conditions. doesn't that destroy the whole concept of insurance? >> no, it really doesn't. the basically socializes the notion. the question is, can people cut in and out of the insurance system. this is where we fall back on the problem of the mandate. my feeling is, if we're not going to have a mandate it is perfectly reasonable to ask people with preexisting conditions to pay more when they enter the system. which is essentially what the original bill did and needs to continue doing. i think there are more important fault lines in the bill. stuart: okay. >> for example the issue of phasing down medicaid, the fact that the moderate republican senators and congressman from moderate states say they like that medicaid as it is. they like covering people, adults without children to attend to, without early derly adults that need their assistance, to basically refuse to work, collect food stamps,
maybe social security disability fraudulent in west virginia and medicaid. that is silly. so there are fault lines. the other one is why should a nun buy birth control protection? stuart: got it. i don't want to see it. >> or men. >> explain that to her on sunday. stuart: let me wrap this up. we have a stock market, the dow jones is at 20,922. that is where we are. yet we have absolute disarray in the republican party about getting anything done, like, cutting taxes, like -- don't we? >> yes. stuart: we have got disarray -- how long is it before the stock market realizes maybe, just maybe we'll not get done this year. liz: that's is the issue. left's back up. we're in may, still talking about obamacare reform. still talking about stacks reform. the president is scrambling underneath car seat cushions to look for gas tax money to pay for border wall. democrats doubling down on failed strategies as socialist
protests light up cities with riots. this is no-brainer for republicans of the get something done. coalesce, get something done. republicans defending 25 seats in the mid determines in the senate. sorry, democrats, 25, republicans eight seats. that is at stake in the senate in in the mid terse. stuart: i think we're missing -- >> you're missing something. stuart: we're missing how this looks to all those people who voted for republicans over the past generation. how does it look to therm? they have the house, got senate, got white house, can't get anything done. >> they are better at campaigning than governing. the reason they were elected to gove earn, lessen taxes, lessen regulation, enhance human freedom. they have donenone of that. liz: that is what obama trump voter wanted done. person voted for obama, voted for trump, they are middle-class americans, they have middle class values. they don't like protests in street. they don't like rioting going
on. they want things done. >> this will lead to people in the middle dropping out, getting out of the political business. stuart: hold on, paul ryan answering questions. listen, please. >> losing argument about preexisting conditions -- [inaudible] even if there are perceptions hard for you guys to win that back? >> not at all. president is nothing but helpful on health care. he is helping with health care and a lot of our members. as mr. scalise mentioned there are a few layers for protections for preexisting conditions in this bill. what is important we want a situation where people can afford their health insurance. we want to have a situation where people have a choice of health insurers. that is not happening in obamacare. remember, over 1000 counties in america have only one health insurer to choose from, a monopoly. and those people are getting cranked with high premium increases, double-digit increases last year, even bigger ones predicted for this year. what good is insurance if you
don't get it, it is not offered to you or you can't afford it. the purpose of our bill is to get more choices, lower prices while preserving protections for preexisting conditions. that is very important thing. we're excited about this policy we're making very good progress where youmembers, and our president has been instrumental in that. yeah, christina. reporter: [inaudible]. >> how many times have i had this do you agree with the tweet this morning? reporter: [inaudible] >> you talk about september. we have a long he way to go between now and september. i share the president's frustration. what a lot of people in america, appropriations bills they take 60 votes to pass. they can be filibustered. all the appropriations bills have to be bipartisan because democrats can always filibuster an appropriations bill. having said all that, i feel very good about the wins we got with the administration in this bill. i negotiated the first murray-ryan agreement a number of years ago. under obama rules, if you wanted
to help the military, if you wanted to pay raise for soldier, if you wanted new planes, new ships, more munitions dollar for that you had to have dollar for domestic parity. that is the biggest victory we could have had. $25 billion year-over-year to begin to rebuild the military without corresponding increase in domestic discretionary spending. that is very important. look at other conservative wins here. pro-life rider is preserved. school choice advanced. we're fixing things like forest fires, disasters we have. we're giving the border patrol the kind ever increases they need. we knew we needed big down payment on border security. the payment for the wall will be this year and fight in summer. we wanted down payment on border security. this has the biggest increase in border security funding in 10 years. we think there are really good wins. there is pr machine are looking. don't look at press release look
at the bill, when you look at the bill, there is a lot of conservative wins here. chief among them, president's highest priorities support military and get down payment on border security this delivers that. >> last question. reporter: [inaudible] >> planned parenthood is not funded. reporter: [inaudible] >> so which -- reporter: [inaudible] >> you don't even have to ask my question if you're answering my question. you're getting there. reporter: [inaudible]. are you committed to reconciliation even if health care isn't part of it? and sanctuary cities when will that happen? >> let me say a couple things. look what pro-life groups are saying. planned parenthood legislation needs to be in the reconciliation bill as it is that is how you get into law. we always knew it takes 60 votes to pass appropriations bill through the senate. this bill does not have funding
for planned parenthood. that is important. the reconciliation bill advances pro-life cause even further. so no planned parenthood funding in hire. by the way, tom price is now the person who approves grants that go out to the states. so we feel very comfortable that we are working hand-in-glove with an administration to advance the pro-life priorities. number one they're advancedded here. we keep the hyde amendment riders. being sill ages bill, that is the bill that you don't need 60 votes on. that is the bill you don't need to have democrats with. that is the bill we're advancing our cause even further. that is why these two efforts in conjunction with one another advance our cause an principles quite a bit. thank you. thank you. [shouting questions] stuart: what we're hearing develop here, is a tweet from president suggesting we need to change the rules of the senate and or the house to get something done. paul ryan, speaker ryan just addressed that issue there, specifically, getting rid of the
filibuster. go back to -- get rid of the filibuster and getting rid of requirement 60 votes for appropriation bill. all sides, but the president is tweeting that kind of rule change as a way of getting things done. so it is come to that. lack of unity in the republican party may force a change of rules in the congress to get somethingç done. liz: that would be a mistake. stuart: that is what it comes to. >> i think it would be exactly what needs to be done, if they're going to get anything done i agree with president trump's tweet. change the rules to a majority. liz: hurt republicans. >> they will never change the rules where there might be a president elizabeth warren and president cory booker. the republicans are in the minority. only way to stop socialist own slaut becoming law is filibuster. >> not talking about rules. talking about vision. sam rayburns or tip o'neills.
leadership, get its done. stuart: my only point raising this rules change issue, want to refer to katie and peter morici, only reason this is how far it has come. come to this, lack of republican unit come to this. now you have, go ahead, katie. now you're talking about changing long-term rules to get something done because the republicans can not get something done. >> stuart, with all due respect the president's tweets are not changing rules. he is not referring to republicans, referring to democrats and democrats not having enough republican votes in the senate. therefore changing the republican threshold to 51 votes to get things passed. not saying republican fault. saying too many democrats. elect more republicans to get things through. one thing i want to mention -- stuart: no, no. i will, hold on. listen to the tweet please. >> i'm reading the tweet. either elect more republican senators in 2018 or change the rules now to 51.
>> there was one before that. there was tweet before that, said the reason for the plan between republicans and democrats because we need 60 votes in the senate that are not there. that is the way that tweet started. stuart: peter morici please. >> it we change the rules would put republicans on the dime to reach compromise. to some extent they're hiding behind skirts of democrats. rules on filibuster were not like this. this isn't "mr. smith goes to washington" filibuster. this rule is a little bit insane. minority can hold up the government. can deny legitimacy of donald trump which chuck schumer is happy to do. my feeling this should be on the democrats. they have permitted anarchy to prevail. should be possible to pass -- do you remember elections have consequences? only seems to apply when barack obama gets elected and chuck schumer says it is okay. that is why we need a rules change. because the democrats are behaving like anarchists. for the stock market, please
hold your breath, guys, remember, we might not be getting much done you but if little hillary was herewer would get tons done and all of it would be bad. stuart: vigorous discussion about changing rules. what it boils down to whether or not we will unify the republican party. in my opinion we do not have a unified republican party. everything would be different if we did. something else going on in washington at this point. that is a hearing on capitol hill where the united airlines ceo is facing probably some fairly hostile questioning from congresspeople. he was asked a question, this is earlier, asked a question about what he is doing to solve or fix the situation. roll tape. here is his response. >> most recently what are you doing to make sure that your employees are empowered specifically? mr. munoz, why don't you start. >> sure. our curriculum for customer
service and training and dealing with the escalation issues is something we have to strengthen. i think we do it when you're first hired but don't do it on recurring basis. so there is lots of us, lots to learn from some of the other folks at this table. specifically on the empowerment angle, beyond the empowerment at the point of a situation like we were faced with on april 9th, i think it is incumbent upon us to put policies and practices and protocols that inhibit or prohibit us getting into a situation like that. it issituation when you put folks in that kind of state. no rules, no empowerment, no training can deal with that so it is important to go back in the chain, which is policies we implemented saying we'll not deboard someone. we'll not allow law enforcement. we'll reduce overbooking although that wasn't a factor in this particular case. there is training, curriculum and do that with others from
this table. most importantly it is important to, if the start of the chain, not create impossible situations for people that there is no out. >> yes. stuart: stock price is up 2 1/2%, okay? now, we were expecting some real serious incoming from this video, ceo of united airlines. but he has diffuse ad lot of hostility which may have been expressed towards him. he has had very rational answers about how they have responded to the dragging incident. you know what they're doing? they have empowered their staff to offer 10,000 bucks so you move and get off the plane. liz: that is dealt takes we train employees if you're seated on plane, we'll not take you off. he is very cool, calm, collected responding what should have been, what could have been some very fiery questions. that is why the stock is up
2 1/2%. who is that talking to me. make your point. >> doing what a ceo was supposed to do. that is very unfortunate incident. let's remember, these people refused to obey the orders of the crew on the plane. and on the plane the crew, the captain is like the captain of a ship. he is the law. he is the authority. they might not should have been let on and should have offered better compensation but let's not lose sight of fact passengers are supposed to follow directives. >> come on, that is not what this was. stuart: we heard you, peter. katie, please. >> that is not what this was at all. this wasn't unruly passenger asking to get off the plane. this was united's responsibility. when they put a passenger into the seat on airplane overbooked flight, when crews showed up they demanded that person who had been sitting in his seat, paid for his ticket be removed from the airplane so united crew. >> i can respond to that. >> which ceo addressed in his statement, take his seat. i mean, the issue that could
have prevented all of this all along was not allowing people to get on the plane until they found a solution at the gate before getting people into their seats. stuart: hold on a second. gentleman just came out of the hearing to be with us and talk to us about what was going on. that gentleman is rodney davis, who was in the hearing. you were listening to what was going on. we're listening to, congressman. we think united airlines ceo, his responses were very measured and level and adequate and i think he defused a lot of hostility. what say you, sir? >> i agree completely stuart. i think ceo munoz took responsibility for the actions on that flight at o'hare. i believe that, the customers will respond. customers want the airlines to take responsibility for the times that we've seen bad customer service. and that's the focus of today's hearing. it is how do we improve customer service in this industry. stuart: do you think we need new
rules to do that? or just going to let's the airlines get on with it? >> no, i don't think government needs to micromanage the airlines at all, stuart. this customer service issue isn't something that is new. as a matter of fact, i worked with the airlines to try to get them to implement some simple procedures to allow a little better notice to families flying with their children. we didn't get response we needed. so i wrote language just a year ago that would allow for airlines to have a better response to familys who are traveling with children. i think what you're going to see today with the hearing airlines need a better job with customer service. they need to fix problems on their own. stuart: what we needç surely is real competition in the airline industry. so airline compete with the other. i guess the correct term is oligopoly, four or five major carriers sew up 80% of the routs. we don't have competition can do
there? >> what government can do work with existing airlines. many other airlines that used to be competitors have merged together over recent years. we have to put a focus making sure airlines have consistency within customer service, consistency at every single airport, small once and large once. stuart: can you do anything about competition? you allowed four or five airlines to dominate the whole industry? how do you get competition in there? >> we'll hopefully see competition when it comes to fares. we do see that. we've seen airline peace go down and rise depending on the routes and competition. we've seen many new carriers come in and express interest, take certain routes provided that access and provided better prices to many consumers over the years. stuart: okay. congressman, back to the hearing, sir. we were looking for some fire, political theater. we thought it might be a tobacco hearing or auto hearing bailout.
so far no real juice. congressman, thanks very much for taking time out to join us. >> thank you for having me. stuart: i explain to everybody we're juggling lots of different balls. you have the united airlines hearing, got it. you have disunity from speaker rye and why republicans, addressing that. got it. we have the stock market fraction higher and technology five companies still at or close to all-time record highs. what have you got, liz? liz: overbooking on airline flights, 430,000 people overbooked last year. united airlines munoz, admitted we get $800 million in change fees that they make when they overbook. tough change somebody to another flight. stuart: 800 million doll lars for what? liz: change fees. rebooking person on another flight. you have to pay a fee and overbooked to get another flight, a change fee, 25, 50 bucks. stuart: is that right?
>> what i call the airlines i say, i can't take that flight. i need another one. they will hit me with 100 bucks. liz: get a change fee. stuart: wait a second, if you arrive at the gate and they have overbooked, call for volunteers to switch your flight, you don't have to pay a fee when you switch your flight? what you're talking about is the $800 million flowing into united airlines when anybody calls up, say i can't make the flight. give me another flight. pay a switching fee. >> i have a radical idea. why don't airlines sell where you can cancel get a refund, totally refundable ticket, why don't they sell totally unbeatable ticket where you can't be beated off, unbootable ticket? liz: unbumpable. >> why don't we they have but a menu of choices and menu of prices and you select your own. >> yes. stuart: yes. okay. >> i know what you guys want. stuart: we're juggling all kinds
of balls here. i almost said uaw, united airlines hearing going on. disunit among the republican party. maybe a vote on health care deal this week and maybe not. look who is with us now, i do believe it is time to bring in live on the radio so to speak that gentleman right there in his three-piece suit. this is brian kilmeade who, we're joining his radio show and he is joining our tv show. have you been watching this united airlines hearing at all because we figured that mr. munoz at united airlines is softened everybody down and charmed all the politicians? >> you know what? i know he has got that charisma about him. he is popular amongst his staff. i know he has a lot of explaining to do. when governor christie hops on our couch, united airlines has the worst reputation of the country, fly out of newark, new jersey, i know about this, they have a lot to change. wasn't just a guy with bad abs
being dragged down the middle of the plane. stuart: i want to talk to you about the republican party, totally divided that is my opinion. that is why president trump basically has to cave on the budget. why he is proposing gasoline tax to pay for some of the tax cuts. the president is being forced into a corner because the republican party is not you united. what says brian kilmeade? >> no down about it, they are not you united. this thing was framed out by democratic president for him to continue to fund the government up until september when he gets a chance to do it again. one of the story this is morning is that president trump said, i'm going to shut it down in september. if i don't get my way, i'm shutting down the government. now, you had a fearful republican party, fearful they can't get a health care bill passed out of the house if they shut down the government on top of that, feels more inept he feels the party is emboldened if president of the united states shuts down the government and take full responsibility and
don't start giving me what i want. the minority is acting like the majority so far. i don't think excuse, stuart, i don't know if you you buy it, we're not used to being majority, not used to having this power, i think orientation should be over. stuart: understood. want to raise issue with you, dnc head, new guy at the top of the dnc, tom perez, he says no human being is illegal. he said that at the may day rally in d.c. no human being is illegal. what do you make of that? >> i would say that sober democrats, moderate democrats i spoke to congressman tim ryan on the show, no way you ascribe to that. americans that belong hire. green card working their way here. working visas. people trying to get in. nobody believes that the whole world are citizens of america. tom perez is playing to that wild anarchist crowd trying to get some applause. to me has to be the biggest
disappointment as dnc chair in quite some time. -- terry mcauliffe. stuart: he represents the left. the left, this is my opinion, i think the left is increasingly powerful within the democrat party. he represent the far left. >> right. stuart: they're taking over this party. that is my opinion. >> stuart, this is tom per recent. this is bernie sanders. he is not bernie sanders's pick. you look at bernie sanders, even more to the left than tom perez. the question is, tom perez's overwhelming anger and expletives, is that the face of the party that wants some you power back? when you have to tell, up to 4-year-old, hold their ears when television, when network television is on because this guy is speaking. you happen to be in the audience to be a democrat and listen to him, i think he as an embarassment. i think they're moving more to the left. for the most part you never turn blue states that went red back to blue with that type of argument. the average person doesn't live
and breathe this like we do, wants to make a better living, better future for their family, home sale prices make things affordable, they have no interest in smashing windows of starbucks in the middle of seattle washington. stuart: who thought, brian kilmeade, republicans controlling the house, senate and white house and they can't still get anything done. far left, increasingly controlling the democrat party and president of the united states had to do the kowtow to the far left on the budget. >> leave you with this, final thought. things have to get worse before they get better. they have to be severely bad before they come back. now it is severely bad. i think the sober thinkers, joe manchins in the middle, tim ryans in the middle with have their day and their say. that is my hope. people stop saying i will do anything to get elected including agreeing with bernie sanders and tom perez. do what allows them to sleep well at night, be a democrat, be reasonable, be republican, be reasonable.
stuart: we hear you. brian kilmeade. thanks very much for being with us, brian. >> thankç you, stuart. stuart: check the big board. kind of a no-go market. we're up 12 points. been that way for most of the trading session so far. jimmy kimmel getting very personal and emotional last night making the case for covering preexisting conditions. you're going to see it in a moment.
liz: last hour we spoke with former reagan economist art laffer news that president trump may be considering a new gas tax. here is what he had to say. roll tape. >> you know, i have written a lot on this, stuart. i am all for a gas tax if we reduce other taxes by equal or more amounts. a gas tax is one of the least damaging taxes. all taxes are bad. some are worse than others. the gas tax is one of the least bad taxes. if we could use the proceeds to reduce other taxes like income tax and income tax i would be with that every day of the week and twice on sunday. stuart is the aperture, the opening we can get to bring a lot of democrats on board, because all they want is carbon tax of some form. they come along with us on the other growth agenda.
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stuart: modest gain for the big board, with 20,932. check please as we always do, the fantastic five. that would be alphabet, google, that would be apple, tesla, facebook, microsoft, amazon, should be up there. all of them are hit all-time highs today. only one has backed off of a fraction. that is tesla. lots of news this morning. it is coming thick and fast, from earlier today, house republicans held their weekly news conference. the headline?
house majority whip steve scalise reassuring voters that preexisting conditions will be covered in the bill, which they hope to get a vote on this week. speaker ryan was saying, don't underestimate what we're doing with this budget here. there is a big increase in defense spending. that is big for him. also happening on capitol hill, united airlines, their chief testifying before congress, so far he has been apologetic, he outlined exactly what the airline is going to do, so there are no more dragging incidents with overbooked passengers. that is all happening as of right now. let's get book to peter morici, i want to talk to you about apple. they have $250 billion. a quarter trillion in cash. of speculation what they're going to do with it. one speculation idea is, they will pay a special dividend to shareholders. what do you say?
>> they have to get a lot of that money back into the country. consider how big this is. they have more foreign exchange reserves than the united kingdom and canada put together. apple could start issuing script, and that script would be as good as most currencies in the world. it is more solvent than most countryies. it basically a virtual country on the global stage. congratulations globalization. stuart: hard to rein them in. i don't know what they could do with the money. they could have a stock buyback. they could buy disney. >> could buy tesla, the ford motor company. they could buy any number of assets. that is you how big they are. much they are dangerous like david rockefeller. rockefeller got to big they busted him up. if they repatriate, do well to give it back to the shareholders and not squander it. stuart: our point here, tom is with me, we have never seen a
situation like this, where five companies hold just astronomical financial power and clout in america and all around the world. hold on a second, peter. >> to peter's point. they are buying a no-name company but very advanced in automatic driving cars. they're moving into another technology we haven't seen them dabble in yet, the future of self-driving cars. stuart: so peter, i'm sorry, yeah, peter, back to you, if we reduce the corporate tax rate say to 15%, you think some of that money, $250 billion you think some of that come back, come back to america? >> absolutely. in 3 1/2 years we could have a democratic administration and opportunity would pass. they need to get the money into the country. apple bought some companies. they haven't been aggressive in acquisitions like others that rich. they have to figure out what to do with this i don't think they should squander it. that is what happens. they should give it back to
shareholders, buy back stock, thanks of that nature. they have to give it back when they get the opportunity. stuart: they better -- >> sob will take it away. stuart: i got breaking news. white house told us budget director mick mulvaney will appear at sean spicer's press briefing this afternoon. >> see you again. take care. stuart: i is expected to respond to democrats claiming victory on the budget deal. that will beç 1:30 eastern tim. see it live on fox business network. almost out of time. have to take a commercial break. dow industrials up 18 points. the state department has issued travel alert for all of europe this summer. that is breaking today? what have you got on that? liz: cited isis, russia, united kingdom attacks. soft targets with hotels and clubs. stuart: scary for people this summer. more "varney" after this.
what every person wants. [applause] we need to take care of this. i saw a lot of families there. no parent should ever have to decide if they can afford to save their child's life. it just shouldn't happen. not here. stuart: that was late night host jimmy kimmel getting very emotional there during his opening monologue last night. he brought up the issue of preexisting conditions. that is an issue which we have addressed on this program. i bring you this. from terry first of all, referring to jimmy kimmel. network making a political statement, never watched him and probably never will. okay. but it was an emotional statement about himself. i think he is entitled to make that on the air. yes it was political. give the man his due. he is entitled to make that. here is cynthia. coverage of preexisting conditions is protected in the repeal and replace.
that is about obamacare. i do agree with this provision. that was, this is from dog. it is time for hollywood to entertainers to put their money where their mouths are. 80% tax rate to pay for it. we're all over the place with this, you but let's address the issue of preexisting conditions, liz? if i come to an insurance company and say, i got cancer, insure me, they have to insure me. that is not insurances. that is like asking for fire insurance after your house burns down. you can't pay for it. liz: yes. stuart: nonetheless it is a very powerful issue in these times. liz: cancer issue is different from what jim i my kimmel suffering from with the newborn child, right. we feel for jimmy kimmel. preexisting conditions argument is bigger one. you're absolutely right. that is the issue that d.c. is struggling with for years, how do you deal with that? you how you deal with it, you let states set up proper pools.
right now insurance lobbies have you such a lock on state capitols. even obamacare said you could set up multi-state pools and go across state boundaries. only five states did it. insurers have a lock on state capitols and shut it down. how you pay for it will be conundrum. stuart: if you destroy the concept of insurance, it is very expense sieve and how you pay for insurance? >> only three dozen people in alaska wiped out the obamacare exchange and toppled it over because of preexisting conditions. alaskas has third highest cost of insurance. only three dozen wiped it out. extraordinary situation. suite get more. everyone, we'll be back.
in the studio. we like to brag about the fine art that we have with us. let's get to your money, shall we? we're up 22 points, 20,935, and look at that, the all-time highs for alphabet, apple, tesla, facebook, microsoft. watch 'em go. that's where all the money is pouring in. they dominate the market like -- i've ner a group of stocks dominate the market quite like this. we also have united airlines. look at that stock, please. it is up 2.7%, $72 a share. that as united's chief, oscar munoz, and other airline executives testify on capitol hill. what's been going on, tom? >> exactly what you would expect, and that is he has apologized profusely -- [laughter] and the company says that they will, of course, not do this in the future. and the politicians are basically, you know, they're looking at the camera saying look at me, constituents, about how i'm looking out for you.
stuart: but they're not blasting the ceo of united the way they did the tobacco people and the auto executives. it's not quite like that. >> do you know oscar munoz was named communicator of the year last year by pr, so he's smooth. he's a smooth guy. stuart: yes. >> i don't know what they can say, because otherwise they're stuck with saying we want to put more regulations on you, and that is not the tenor or congress right now. stuart: we were expecting a little bit more political theater which we have not yet gotten so far, but we'll be back to it if there's fireworks. i want to get back to my take, the editorial at the so much the hour. he was listening to me say the republicans are totally divided and it's their fault we've got this lousy budget. karl rove is with us. [laughter] >> what do you say, a little bit over the top. stuart: no, it wasn't. it was spot on target. >> i agree. stuart: the republicans are divided, and because of that we've got to put up with no wall funding in the budget. >> remember, though, budget bills require 60 votes in the
senate, and i think it was wise for them not to make a big fight on the wall right now. first of all, they don't have a design. he himself has said i don't like the designs or the price tags. and this is for the next five months. better to get the billion five extra for repairing the existing parts of the wall and for the technology that they need, they know they need to deploy. but, look, let's step back for a second -- stuart: that's not a very good deal, karl. >> no, wait a minute. first of all, they've achieved some important things. under president obama for every dollar you wanted to increase defense spending, you had to increase discretionary spending. the increase for homeland security in this budget is nine times the increase in spending for health and human services. the increase in the defense spending is seven times as a percentage of what it is for health and human services. it's $15 billion additional for defense. it is $12.2 billion additional for homeland security. those -- we killed the obama
rule. we're no longer saying if you want you want to secure america's borders or keep us safe, you've got to spend an equal amount of money on discretionary spending, on welfare and so forth. didn't happen. stuart: so the budget is not as bad as i'm making it out to be -- >> well, in fact, it may be even better than the top line numbers are. i was reading the budget. if you can believe this, i read the budget bill. as i read it, they go into the defense budget and take money that is relative -- that's unspent in past years going back several years and sweep it into the current budget for priorities of the obama administration. excuse me, of the trump administration. so they're going to increase readiness, they're going to build more warships, more airplanes, give the first increase in military pay in six years and totally reverse the personnel cuts that obama had built into the budget by going back and not only adding $15 billion, but grabbing ahold of $18 billion of unspent money in previous years and say rather thanç putting it into the
domestic budget, we're going to keep it in defense. stuart: the democrats are laughing, are cheering -- >> let 'em laugh. think about this, they got a 0.58% increase in spending on labor, health and human services. the budget for the state department and foreign operations down, agriculture down, financial services and general government down 8.51%, and we're in the middle of the fiscal year. stuart: but what are you saying to republican voters -- >> republican voters, we have -- trump has something that no republican president in our lifetime has had, and that is he comes into office and is able to affect the budget of the year in which he is. we didn't get that in 2001 when we came in. bill clinton ghei us that last budget. it was -- gave us that last budget. it was there through the end of september, and it had a 20% increase in discretionary spending. the republicans blocked him from passing a full-year budget. trmp comes in and says more defense, more homeland security, less on things i'm not in favor on.
stuart: you've got me beat up to a point because you've read the budget, and i most certainly have not. [inaudible conversations] the republican party -- >> is not united. stuart: -- is divided. >> that's right. and that's why we got into this problem with the health care bill. in fact, this is amazing to me. in the so-called compromise, remember, they said we don't -- we want to get rid of pre-existing -- guarantees for pre-existing conditions. we want to guarantee there are no premium increases for the next two years, blah, blah, blah. every single one of those things that they told us is the reason they defeated the first one is gone. stuart: you're an inside guy, are we going to get a vote this week? >> i i think it's -- i'm very nervous about it. stuart: you don't think we will? >> look, there's a good chance we don't -- stuart: that's a disaster. >> you've got the moderates who are in districts won by hillary clinton who are saying, okay, we might have been willing to vote for it a couple weeks ago, but you turned up the heat, and now we're nervous about it.
stuart: take my point. if we don't get a vote this week and a successful vote this week, i don't know when you going to get it. >> it will be a defeat. they're going to go home, come pack in a week -- stuart: is paul ryan finished as speaker of the house? >> absolutely not. stuart: this'll be the third try and he still can't do it? and he's still in that position? >> absolutely. stuart: why is the president now talking about a gas tax? >> darned if i know. stuart: why is the president talking about breaking up the big banks? >> look, they come from the nationalists, the populists inside the white house who say we've got to do something to increase jobs, and the way we to that is a big make work project, increase the spending on infrastructure. look, i'm a little bit conflicted on this. my father-in-law has been the head of the texas highway contractors' association for the last 50 years. my wife works for the highway contractors. they would love to have a gas tax increase. we haven't had one in texas since 980 -- i said 992.
but it's very unpopular, and at the federal level it's got zero chance of passing. stuart: or you're really, really good at this stuff, i'm a little intimidated, but since you're here for the entire hour, i might come back at you. [laughter] karl, thank you very much. >> you bet. stuart: individual stocks, we've got them for you. let's start with aetna, they had a failed merger with humana, doesn't matter. the stock is up 1% this morning. better profits at merck, big drug company. raised the forecast as well, but it's only up 13 cents. better profit at pfizer helped but better sales of their breast cancer drug and their pain relief medication. they're down nearly 2%. profit down 17% at cvs, it filled fewer prescriptions. that was hurt, that lower foot traffic in their stores, it's down a couple of bucks at 80. whoa, it's a mixed market, is it not? tech up, most other things down. now to the man coming down
that hallway, napolitano. took a brief break, but he is back. what does he think of tom perez saying no human being is illegal? ♪ ♪ hey gary, what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with thinkorswim. only at td ameritrade.
stuart: when a stock's doing well, we do like to report it. all-time highs, there is the list, alphabet, tesla, facebook, microsoft, all of them all-time highs. okay, tesla's backed off a little. the rest of them, plowingç ahe. the new head of the dnc, tom perez, speak at an immigrant and workers' rally yesterday, says no human being should be considered illegal. roll tape. >> the democratic party will always be here fighting for you,
our most important power is not the mister in the white house, i can't even mention his name. our most important power is the power of all of you! no human being is illegal! we must treat everyone with dignity. stuart: well, no human being is illegal. that's a very interesting concept. i think it's a legal concept, and who better to address it than our own judge andrew napolitano? >> i thought the phrase was undocumented today rather than illegal. so i'm not sure what he's driving at. stuart: play on words. >> is he committing the democratic party to a policy of open borders? that will shrink them even more than they have already been -- stuart: no, he's being a constitutionalist. humanity cannot be made illegal, but he knows perfectly well he's referring to immigrants. >> of course. it's obvious -- stuart: it's open borders. >> he's actually talking to a crowd that theoretically doesn't vote, i say theoretically, because who knows what's going
on out there. look, it is not a crime to be undocumented, but an undocumented person has my mall constitutional rights. -- minimal constitutional rights. of course they have the right to be treated with dignity. the government also has the right to deport them for being here when they are undocumented. and, again, i'm not sure what he's driving at. refuses to mention president trump by name, and he's suggesting that his job is to protect dignity of undocumented persons who used to be called illegal aliens. stuart: well, we still have karl rove with us, he's a glutton for punishment, and he's staying with us for the entire hour. >> no escape. [laughter] for the viewer or for me. stuart: tom perez is bragging the dem -- dragging the democrats further and further and further to the left, and that statement really refers to immigration. >> actually, he was restrained yesterday. most of his speeches have involved throwing slurs and
profanity at president trump. stuart: well, you're happy, respect you? you're a republican, kent piece of the republican party -- centerpiece of the republican party. >> the country is better off if we have two great political parties vying with each other. what we're seeing here is the corporationization of the democratic party. the leader of the british labor party who took them hard left and tom perez and bernie sanders and elizabeth warren and -- are dragging chuck schumer and the rest of the democrats to the hard left. it'll be good for the republicans in the short run but bad for the country in the -- >> i fully, fully agree with everything that karl just said. it is better for democracy, it is better for human freedom when there is competition between the parties. chuck schumer, a classic liberal democrat, is cop fronted with -- confronted with hard lefties demonstrating in front of his townhouse in brooklyn, and he panders to them. >> i'll drag you are my way, but
instead he's way over there on the hard left saying and doing things that chuck schumer is not inclined -- stuart: no, i think you're wrong. i think you're underestimating how far left the democratic party has gone. >> oh, i'm not under-- stuart: bernie sanders won 22 states. >> he won roughly the same percentage of the vote that donald trump won on the republican side so, yeah, both parties are being disrupted by forces of populism. the republicans are in better shape because they hold the congress and the white house and being in power, they have to be responsible. but the democrats not having control of that white house or the congress are irresponsible and getting more so every day. stuart: and that was a snarky comment about donald trump, by the way, and i did notice that. i just wanted to point out -- >> what was snarky about telling the truth? stuart: the fact that he got the same percentage of the republican vote --
>> bernie sanders got, i thought that was a tantalizing comment. stuart: okay. >> i thought it was educational in nature. [laughter] stuart: look, this is a capitalist organization and a capitalist program, and we're going to make some money running a commercial. as we go to the commercial, i will tell you that the dow industrials are up all of three points. and we will be back.
stuart: i'm going to call this a go-nowhere stock market. we're up three points at 20,917. look at twitter, please, announcing some new video streaming deals. major league baseball, football, even the pga, some of the names involved, and twitter's gone back to 8 a share. boeing -- $18 a share. boeing, the first u.s. aircraft exports to iran since the country's revolution way back in 1979, boeing at $183 this morning. listen to this -- that is not france, it is not greece, that is the united states of america. portland, oregon, to be preice. may day protesters, they're not protesters, they're rioters.
40 arrests, fires set, property destroyed. karl rove, that's got nothing to do with workers' rights, that's got everything to do with violent anti-trump demonstrations. >> yeah. look, the northwest is a mar this. of this. -- particular you may remember when the g20 met in seattle or the world trade organization, huge outbreak. i was on a trip with president bush 43 there to portland and was astonished at the amount of sort of violence in the bucolic northwestern town. >> attacking cops in these protests. portland, they were throwing molotov cocktails at cops, fireworks and pepper spray in seattle. so they're directly attacking cops, not just attacking property. this is a socialist city councilwoman said block airports, block the highways. a city councilwoman said that. stuart: every member of the seattle city could be ill said
city -- council said every worker could take the day off. get out there and block highways, why don't you. >> you know, i grew up in seattle, that's my hometown. stuart: it's your fault. >> it was a blue collar, democrat town, but it wasn't anything like this. and these people, actually, social media's helped them a lot. you can find their facebook pages, and they have menus for you to follow about what to wear, what to bring, what not to do, what to do. it's all very organized, well funded. stuart: a wealthy part of the country as well, and capitalism creates that wealth. >> portland more than seattle. i have relatives in portland too, but they're proud of their liberalism. stuart: and you were once in california, weren't you? >> yeah. lived in california 30 years. >> tom sullivan leaves, and they go downhill. stuart: we could say that. >> that is what happened. stuart: it is, basically, his fault. "forbes" has compiled a list of america's top public companies. okay, give me the list.
>> we go from socialist rioting to celebrating capitalism. they twine it by sales, by assets, by market value and profits. so the top ten we're going to look at, it's berkshire hathaway is number one. by the way, all 500 command $21 trillion in market value. that's about a third of the gdp of the entire planet. berkshire hathaway, apple, jpmorgan chase, three. wells fargo, four, bank of america, five. exxonmobil, ge, walmart and microsoft round out the top ten. it should be pointed out that berkshire hathaway has invested in four of the other top players in the top ten. stuart: i'm still waiting to see what apple does with its quarter trillion in cash. >> berkshire hathaway's kind of a fund of a fund then. >> a hedge fund, yeah. stuart: they got bad names back in the 1970s. >> yes, i do. i remember that well. stuart: bernie cornfeld. >> a brit.
stuart: thank you very much. [laughter] i am an american. okay? check that wig -- that big board, down four as we speak. however, the real action is in the nasdaq, home of all those tech stocks, earlier it hit an all-time record high. five of the big names that we watch most frequently are at all-time highs, never been higher. we will be back. ♪ ♪
time's up, insufficient we're on prenatal care.es. and administrative paperwork... your days of drowning people are numbered. same goes for you, budget overruns. and rising costs, wipe that smile off your face. we're coming for you, too. for those who won't rest until the world is healthier, neither will we. optum. how well gets done.
stuart: an opinion from me. president trump has caved on the new budget deal. democrats secured major victories, well, significant wins, i would call it, because of the division within the republicans. doug schoen joins us now, a democrat. >> yes, to this day. stuart: okay. you won because this republicans -- because the republicans are divided. you're not going to take me on that one, are you? >> no, i'm not. the democrats have decided resistance to the republicans,
bad joke, trumps any other policy they can take. stuart: will you stop smiling, please? not all of us think this is a wonderful thing for america. >> well, those of us who believe that the government should be funded and shouldn't close down welcome a five month extension. stuart: speak across me, karl rove, set him straight. >> well, look, they're going to crow. nothing's going to stop them. but the obama rule that if you want to increase military spending you have an equal amount of spending on domestic affairs, broken. and, again, i repeat, the increase in homeland security is nine times that in labor, health and human services and education budget, and the increase in defense spunking is seven -- spending is seven times. stuart: speak. >> they didn't get all the defense spending that the president wants. any good democrat would be for more spending on homeland security in this environment. so, karl, i don't see it in partisan terms, i see it in terms of right and wrong. i think this was a fair deal.
the democrats got plenty in terms of health care, planned parenthood and, you know what? it's a model for what we should get rather than this intransigence between the two parties. stuart: what do you think about the far left demonstrating yesterday, violation all over the place? it was basically anti-trump violation on the -- >> look, i decry that. stuart: is that pulling your party to the left? >> at the same time that i am for constructive bipartisanship, as i told karl, i absolutely decry, reject and find abhorrent this violence, the street demonstrations which, yes, they're pulling the party to the left, but they're hurting america, and that's what i care about. stuart: you've got the chair of the dnc, tom perez, addressing a meeting in d.c. yesterday on may day going right out there, far-left stuff. are you happy about that? >> no, i'm not. i'm not happy about him -- stuart: your own party. >> look, i'm telling you what i think as a democrat and an american.
i'm for constructive bipartisanship, against leftism, against violence and against extremism. how much clearer can i be? stuart: karl rove is itching to go at the far left, aren't you? >> they're going to nominate a bunch of lunatickings, and that increases -- lunatics, and that increases the chances -- >> you're talking about '18 or '20? >> we will see, i think a bunch of what you call lunatics will win. stuart: do you think in 208 you've got a good shot at getting the house by? >> i do, yeah. stuart: why? >> donald trump. stuart: that's it? >> midterm of a first administration puts the other party in power. stuart: has trump lost his base? >> no. but there are 23 members of the house of representatives, republicans who represent seats won by hillary clinton, and there are another roughly dozen where trump had a narrow victory. and so the question's going to be how good are the republican candidates in those districts and how strong of campaigns do they mount, and do they have a
credible democrat running against them or a lunatic? stuart: on the other hand, there are, what is it, ten democrat senators up for re-election next year who come from states which were won by donald trump. >> correct. and they want the democratic party to stay where i want it, in the center working constructively, not on the far left. stuart: i think those states want a tax cut, they want economic growth, and they want repeal of obamacare. >> i want the first two and the second i'd like to see -- the third i'd like to see fixed. stuart: whoa, this is news. a democrat wants tax cuts? >> yes. do you remember john f. kendy a little before your time -- stuart:h, no, he's not. i remember him very well. [laughter] >> okay. tax cuts in 1963. rising tide lifts all boats. 1986, bipartisan tax cut again. you can do it, stuart, you don't have to just -- stuart: your party's not going to do it. show me a democrat who genuinely wants --
>> me! stuart: aa part from finish apart from you. >> schoen has power. >> exactly, thank you, karl. stuart: show me another democrat who wants individual tax rates to be -- >> for the middle class? stuart: individual. >> for wealthy americans? none. stuart: not one. >> but if we can get a compromise, as we got on spending, we have a chance. especially if it's linked to infrastructure. >> this is going to be one of these weird moments. there are a lot of democrats who will say they're in favor of a cut in the corporate tax rate. not the individual, but the corporate tax rate. but they want a revenue-neutral tax cut. that is to say they'll cut the rates, but you have to find additional revenue -- stuart: and you've got to put strings on the money that comes back to america. now, doug, hold on for a second, because i'm going to speak about your colleagues in venezuela. more news coming from vens wail a la, collapsing under the weight of socialism. they're bracing for more marches. >> the president wants to
rewrite the constitution so he can do a power grab and seize control of congress. maduro's backers, they've seized the power of the judiciary. he basically wants cuban-style government right now. so the opposition is saying we are going to do more than or two dozen protests happening now in ca caracas, 29 already dead, 400 injured, hundreds jailed. the opposition's trying to stop this 18-year rule by the socialists. now an even bigger power grabby the socialist president, maduro, to seize control of the congress by rewriting the country's constitution. stuart: and the kind of violence taking place there, that was april 24th, is continuing. >> it looks like it's going to get each worse. they're headed for the cliff right now. stuart: all right. one of the stories coming out of capitol hill has been united airlines. their ceo, oscar munoz, has been testifying. i think he's put up a pretty good performance thus far, and his stock, actually, has gone up. joining us now is a republican
from texas and a member of the transportation committee doing the questioning. we've been watching oscar munoz, and it looks like he's come across very well, that you haven't really laid a glove on the man, and his stock price has gone up. what say you? >> i think he's come out with a great message, they're trying to fix some of their customer service problems. i think the message we wanted the airline executives to take back is get your house in order, fix these problems or you face potential regulation. stuart: that's what he told you. they've raised the price they will offer if you're bumped out of a seat up to $10,000. they're not going to move anybody who's already seated on the plane. they're training people, etc., etc.ç he's done basically all that you asked, hasn't he? >> i think they've gone a long ways. i suspect the next violent video we're going to see is people fighting for the 10,000. stuart: what can you do, what can congress do about the monopoly that exists in the airline industry? you've got, basically, five
carriers. they don't really compete. we don't have the benefits of competition. anything you can do about that? >> well, i think what we saw at this hearing was it really only takes one innovator out there to bring the rest in order. southwest airlines announced they're not going to overbook. they don't have the cancellation fees that some of the other airlines do. you know, southwest was kind of there to shame the other guys. stuart: um, i'm sorry, i was interrupted briefly there. i didn't quite hear what you said. we were all expecting real political theater today. we were expecting something like the auto executives or the tobacco company people. we didn't get it at all. why not? >> i don't think we're getting that much pushback from the airlines. they don't want to see this happen, and they want to get it fixed. i think they have a much, much more positive attitude towards doing what's right by the customers than what we've seen in the past. stuart: from the flying public's point of view, name the one thing that's come out of these
hearings today. >> i think that if you're going to be denied boarding, you're going to be offered enough money that you're going to be able to or want to give up your seat willingly. we're not going to see people dragged off the planes. it's the free enterprise system at work. stuart: okay, congressman, thanks so much for joining us. >>tarian that would, i hate to say. stuart: my apologies. he's from texas. >> yeah, had thanksgiving with him -- he's a friend of mind. stuart: you couldn't tell me before i introduced -- [laughter] >> that was my, i was shocked, i was taken aback that they gave you the wrong pronunciation. dirty little secret, the moment you were talking to him, he was probably wearing flip-flops. [laughter] stuart: why did you say that? >> because it's one of the strangest things about the man. he walks around congress in beach shoes or flip-flops -- stuart: is that right? >> kind of like that, stuart. stuart: don't bring me into this.
>> nothing i love more than an eccentric congressman. stuart: that is eccentricity. >> we need to humanize these people. they're not just cutouts. stuart: exactly. we are awaiting the president who is about to make a statement. we'll take you to him when that statement begins. right now we've got the dow industrial average 22 points higher. we like to put a benchmark of where the dow is right before the president speaks. because occasionally the man will make news -- in fact, he often makes news, he makes a habit of it. so we're up 22 points right before the president speaks. one more thing from the stock market, and this is something we've been covering for a long time. the extraordinary growth in just five technology companies. we did some math this morning, and the five big names in technology are now worth approximately $4 trillion. that's phi companies -- five companies getting close to a $4 trillion mark.
certainly $3.5 trillion, depends on the stock price, very close to $4 trillion. we have never seen a group of companies dominate the market in the way that they are. furthermore, at 4:00 this afternoon we get the latest financials from apple, and they're going to tell us they've got a cash hoard of a quarter trillion dollars. you ever seen anything like that, karl rove? >> not since i went to bureau of printing and gravy. no. [laughter] >> these companies, nobody is yelling about the filthy rich apple or berkshire hathaway -- >> like they did the oil executives. >> if exxon was number one like they used to be, oh, my gosh. stuart: yeah. the leadership of the five major technology companies tend to be centered to the left. am i right in saying that? you won't give me a hard time on that, will you? >> no, not at all. stuart: do you think zuckerberg has political ambitions?
>> policy ambitions, i don't know if he's outgoing enough to see himself as a candidate for office, but i think he's -- he'd like to be an influencer of great depth. stuart: he is already. [laughter] salem radio nationally syndicated talk show host larry elder is with us now. you got any comment -- you're in california. have you got any comment on these incredibly wealthy technology companies which essentially prop up the california economy? >> well, i think barack obama would say that they didn't build that. [laughter] it's a reflection of how wonderful this country is a how dynamic our economy is. and if we can get our taxes and regulations down, it will grow even faster and people will prosper even more. stuart: let's see now. what have we got for larry elder? i want something unique for you. [laughter] what was it like in los angeles? elsewhere in the country we had riots in the streets.
i realize there's no downtown city of los angeles, but what was the atmosphere like on may day in the left-leaning southern california? >> we had protests, about 25 people were arrested, especially up in the bay area where people were marching. i saw in downtown l.a. they were waving the mexican flag. why that isn't offensive to people is beyond me. but the idea that we ought not get rid of violet criminal illegal aliens and not do something about the threat posed to unskilled workers, it's bizarre to me. and if republicans crafted the argument that illegal aliens threaten jobs and put downward pressure on wages for people in the inner city -- many of whom are black and hispanic -- they might be able to win the argument. stuart: i want to draw your attention to a discussion we've been having about the republican party. i say that it is hopelessly divided, and that's why president trump had to cave on the budget to the democrats.
you want to weigh in on this one? >> well, that's right. karl rove and i were talking about that when he and i were together at a town hall recently in houston. there is a big faction of the republican party that actually believes in free markets, that actually believes that obamacare a disaster and to repeal it and replace it with something obamacare lite we'll still have a huge debt, and the debt will be owned by donald trump in 2020. and then there are a lot of people who know that they're in districts where people have end enjoyed the medicaid expansion, and you take it away from them, they're going to be in trouble. so it's a mess. the real problem is for the last eight years republicans should have been educating people about why health care is so high, and one of the reasons is because of the artificially low number of doctors which has been engineered by the ama. milton friedman said the ama is perhaps the strongest trade union in the history of this country, and they operate like a
medieval guild to keep the prices of doctors' salaries up high. we aren't even talking about that, and why republicans haven't made that an issue is just beyond me. stuart: this is one of those weedy little arguments. that's not the argument. surely, the argument is, hey, you republicans, we elected you to the house, the senate and the white house and hen knows how many -- and heaven knows how many state legislatures, and you haven't done anything. i don't care what you do, but do something towards the president's agenda. what's wrong with making that argument in very strong terms? i'm not hearing you make it, larry. >> that's the political argument. i'm talking to you about policy. the policyç argument is that te federal government ought not be involved in health care one iota. the political argument is very different because most americans don't feel the way i feel. stuart: no. >> and you are right. they campaigned to repeal and replace obamacare -- stuart: there's no win, nothing, nada. that's politics. >> repeal and replace -- trump
campaigned to repeal and replace obamacare. the freedom caucus did not. they campaigned to repeal obamacare and replace it with free markets. that's why you have the conflict. but i agree with you, something's got to happen for political purposes if the republicans go to the american people in 2018 without something, they're going to be in the very, very deep voodoo. stuart: tom sullivan. >> something is going to happen in california. i think larry knows these numbers. one-third, one out of three californians is now on their version of medicaid. one out of three. it's like an $18 billion number in the california budget. if they change any of that, california has got a huge hole in their financial system. stuart: and who pays the price for that? >> well, right now the federal government's giving them money. but if the federal government stops that and california tries to pick that up, you're covering one out of every three people. it used to be for the indigent poor. now it's the bottom of the middle class and below.
stuart: so, larry, weigh boo this. what are you saying on that point? >> that's exactly right. there's a youtube video of jonathan gruber, the father of romneycare, bragging about the fact that some, quote, smart senators, closed quote massachusetts, were able to rip off the government to the tune of $400 million every year to make romneycare work. and we have a huge cash infusion from the feds in california. if that stops, california's going to be even worse off. we're already about $500 billion if not a trillion dollars unfunded pension liabilities, and this would just grow that problem each more. >> there will be a financial bomb. that's what will happen. stuart: a financial bomb. >> absolutely. stuart: karl rove. >> every state is going to face this, because every state that expanded medicaid, is going to -- there's a time the federal government picks up the tab. when that time period runs out, it's going to bump onto these state budgets. you talk to virtually any governor in america, and they will admit republican or democrat -- some publicly, some
privately -- that medicaid is eating the state budgets and crowding out spending on everything else whether it is education or highways or quality of life issues or higher education or parks, you name it. because it's a growing part of the budget, and it's on mandatory spending, and every statehat expanded medicaid when that federal money runs out and it's no longer 100% federal match and they two back to their traditional match, it's going to face a huge budget issue. stuart: so the freedom caucus says, knock it off. you can't keep all this federal government funding of medicaid. the moderates, led by paul ryan, say, no, you've got to phase it out. >> well, you do have, i think there's agreement that basically you have to keep the bargain that was made as to the states that expanded medicaid, but the question is how soon do you cause people not to expand their rolls further. stuart: ladies and gentlemen, the president is about to take to the podium. he's introducing the air force academy be awards.
it's the commander in chief trophy. there you see the air force academy people all lining up. the president will emerge, he will take to the podium and make the presentation. now, whether he says anything else about the current state of politics, we imply don't know. the man does not always speak to what's on the teleprompter, he doesn't stick to any script. >> no telefronter today. -- teleprompter today. stuart: we do not know what he's going to say, but every time he speaks, he makes some type of news, and we're going to stay with it and watch what he has to say. they're all asemiing bling. ms. he's going to come out after all the cadets -- they're not cadets, are they? they're airmen. [applause] >> i think they are cadets. stuart: they are? okay. i'm not sure of their status within the air force. fine looking group right there in front of the white house, waiting for the president. round of applause, everybody
stood up. round of applause from the audience that's assembled. is that the rose guarden? >> that's the rose garden and, of course, these events are attended heavily by whatever team is being honored, so you can bet there are a lot of proud grads and parents of -- >> the military academies are the creme de la creme, they really are. those young men and women are the best that you can find. it's so hard to get in. stuart: i saw a small cheer, i heard a rather small cheer. i thought that might be for the president. now there's silence, i can't hear anything at all. i guess we are waiting for the president to emerge. it must take a gigantic staff to arraigning all this kind of thing. -- arraigning all this kind of -- arrange all this kind of thing. >> i had an office that reported to me called the office of public liaison that was in charge of many of these events. there was the person who was the outreach on sports, on other things, and you're right, it takes a very skilled group of
people. you may be surprised at this. the white house staff is 500 people or less. stuart: 500 people? >> right. there are about another close to 1,000 that are the career staff, but they're involved in taking care of the building, the movement of the president and so forth. the staff that comes into and goes out with him, his appointees, are less than 500 people. >> and they're not all in the white house -- >> no. in fact, 50 or 60 are in the white house itself, the west wig, excuse me. the rest of them are in the old executive office building next door. stuart: 500 people to get the white house working. >> we were once in italy, and i was having dinner with the italian president who said i have 5,000 people working for me. i thought this guy is the head of state, no official funks other than to say the parliament has to get reelected, and he's got 5,000 people working for him, and i'm working for the president of the united states, he's got 500.
stuart: here comes the president. ♪ ♪ >> hail to the chief which was started, ostensibly, because martin van buren was so short, they needed a song to indicate to everybody in the white house that he was entering the east room. stuart: i'd rather talk to you about the history of the white house than politics actually, karl. [laughter] that is "hail to the chief," yes. from the. ♪ ♪ stuart: the president is keeping us all in suspense, but there he is. all right, everyone. the president of the united states, donald j. trump. ms. .
>> thank you very much, everybody. i appreciate it. that's some big people behind me. big, strong, brilliant people. please, sit down. i want to thank everybody for being here on this very special occasion. it's an honor every single today to serve as your commander in chief. to the incredible men and women ofç the united states air forc, very special, beautiful place. [applause] very, very special. i also want to welcome the acting secretary of the air force, lisa, and the air force chief of staff, general david dd goldfein, thank you. [applause] the cadets here represent not only the future of our air force, but also the future of
our country. their skill, dedication, loyalty and patriotism represent the very best of america. thanks especially to the air force academy super, i lieutenant general michelle johnson, and for your outstanding stewardship. you have been truly outstanding, michelle, and we appreciate it so much. [applause] developing leaders, character, i mean, so many things are developed at the academy, it's really an amazing, amazing job they do, and we all join the very proud and distinguished heritage of the long blue line. you know what that is, fellas. [laughter] [applause] that's a long, big, beautiful blue line. i would also like to welcome several members of congress who are here today including maybe just stand up for a second, doug
lamborn. hi, doug. [applause] ted poe. ted. thank you, ted. ted. don bacon. hi, don. [applause] doug collins. [applause] and my friend, martha mcsally who, by the way, i think can fly a plane maybe better than anybody up here. [laughter] [applause] she's the real deal,right, martha? she's tough. she likes a certain plane which i'm going to mention in a minute. she specifically likes a certain aircraft. thank you very much. and how's health care coming, how's it doing, folks? we're moving along? i think it's time now, right? [laughter] they know it's time. thank you. thank you for being here, folks. we're also pleased to be joined by the secretary of veterans affairs, david shul kin, who's doing an incredible job. thank you, david. thank you, david. [applause] taking care of our veterans, for
me -- and this has been one of my absolute highest priorities and the highest priority just about of the administration. and david is working tirelessly to deliver the care our veterans so richly deserve. and it should have happened years ago, but it's happening right now, so thank you very much, david. [applause] our treasury secretary, or steven mnuchin, is here with us as well. steven is determined to bring jobs and prosperity back to the united states, and he is really doing some very great service with a very complicated set of circumstances, and it's working out well. so, steven, thank you very much. [applause] finally and many this particular case -- in this particular case, david and steven and congress folks, we have to say this: we are truly and deeply proud to welcome the falcons of the united states air force academy. [cheers and applause]
to the white house. most importantly. [applause] congratulations to you all. coach calhoun, you and your team had quite a season. like good air force guys, you flew under the radar to victory. you know, we're buying a lot of those under the radar planes. in fact, you can fly over the radar. you're still not going to detect them. [laughter] they cost a lot of money, i'll tell you that. this week our republican team had its own victory under the radar. that is a very important thing for the men and women of the united states military. and it's a very important thing for the people of our country. in our new budget -- and it's been a very hotly-contested budget because, as you know, we have to go through a long and rigorous process. but we've ended years of painful cuts to our military and just
achieved a $21 billion increase in defense spending. [applause] and we didn't do any touting like the democrats did, by the way. not only did we a achieve this massive and badly needed increase in defense, but we did so without having to put in mace an equal increase in nondefense spending, breaking the so-called parity rule that was breaking our budget and degrading our military. and that's not happening anymore. that, i can tell you with surety. so you're going to have the money we need and the equipment we need. [applause] there will never be a time, i will tell you this, when we will be spending more money. we are doing the necessary money, we're going to have the finest equipment with of all types, whether it's airplanes or ships or equipmentin general that we've ever had in the
history of our country. we are taking care of our military, and we're not going to go back to what we were doing for the last long period of time. our military is going to be taken care of. that i promise you. thank you. thank you, folks. [applause] with this major investment in america's national defense, a core campaign promise of mine, we are at last reversing years of military cuts and showing our determination and resolve to the entire world. and believe me, the byer world is watch -- the entire world is watching. and we have resolve like never, ever before. these long-awaited increases will make america more safe and more secure and give our amazing service members the tools, equipment, training and resources they need and they very much deserve. to top that, we achieved the
single largest increase in border security, funding in ten years. more money now than we've gotten in ten years. the democrats at no time tell you that. they forgot -- didn't them you that. they forgot to tell you that in their notes. with enough money to make a down payment on the border wall. i thinkç they'll go back and which can their papers. this includes swiftly replacing ineffective and failing fencing and walls with an unbreakable barrier. so we're putting up a lot of new walls in certain areas, we're putting up a tremendous amount of money to fix the existing structures that we have, some of which we can keep into the future. they're in good shape, but we have to bring them back to the highest level. we'll be doing that with this payment. and make no mistake, we are beginning to build the wall, and