tv After the Bell FOX Business July 18, 2017 4:00pm-5:00pm EDT
higher by this time next year. liz: steve, from federated. gait to see you. [closing bell rings] one record for sure. nasdaq looks to be on track for a record close here. dow trades lower. david, nicole, this could be a big move if it closes at all-time intraday. david: looks like nasdaq will make it. melissa: d.c. in action. dow managing the day off session lows. nasdaq, another record close here that we're trying to take a look at right now. does that beat the number? we have a record for nasdaq. i'm here for melissa francis. david: we managed to pry you out of the new york stock exchange. we have more on big market movers. here is what we have covering for you in the very busy hour. let it fail. republican leaders scrambling after senate majority leader mitch mcconnell pulling the plug on revised health care
bill. president trump is now calling it simply let obamacare fail as senator mcconnell is pledging to hold a straight vote to repeal the law, even if he doesn't have the votes. house republicans are setting their sights on other key item on the trump agenda, unveiling ambitious new plan to rewrite the tax code. so will the gop be able to come together and get something done in d.c.? this hour we'll ask republican senator bill cassidy, kentucky congressman, andy barr, "weekly standard" fred barnes. former minnesota governor tim pawlenty whether states can bypass gridlock. nicole: fox business team coverage, lori rolling man at new york stock exchange.
and phil flynn watching action in oil and gold from the cme. blake burman at the white house. lori, we begin with you at the new york stock exchange. reporter: hey there, nicole you mentioned it. gridlock over health care in washington really put, won't say cast a shadow over the bulls here on wall street, especially for sectors that are economically sensitive in terms of what infrastructure spending and what tax reform would do for them. in other words gridlock over health care could very well delay those items on president trump's economic agenda. so the dow down 53 points, paring the weakest point in the session. we saw the dow down well over 100 points today. s&p up 1 1/2 though today. nasdaq composite index as you mentioned, not only intraday high, but closing for record high, thank you in large part for netflix. setting tone, 24 hours ago blowing away wall street averages. let's look at some infrastructure stocks. as mentioned these are stocks,
companies, sectors that stand to lose the most if the president's economic agenda goes off course which it is in jeopardy of doing. look at these down about 2% give or take, with jacobs off the most, 4% decline on the day. i did mention nasdaq, intraday, all-time high, thanks to netflix. want to talk about chipotle here. another scare with food safety. sterling, virginia, restaurant did close monday. there were small number of reported illnesses the company believing likely from norovirus. it was back in august of 2015 that a norovirus outbreak at chipotle restaurant in california sickened 200 people. news not good down 4%. back to you. david: thank you, lori. let's talk about oil and gold, particularly gold has had a jump past few days, i imagine because of uncertainty inside the
beltway, no? >> it really is. we're up three days in a row on gold. we're seeing a big move down on the dollar we don't know what the heck will go down in washington. failure of health care bill in stock market, seeing it in gold and safe haven play. you may see it in oil a little bit. you would think saudi arabia dropping hints they would shock and all the market, with caughting the production, what would happen with u.s. economy, put a damper on expectations. news of demand globally is incredible. we got strong demand numbers, dave, out of china. they're exceeding expectations about oil. that should bode well for global demand growth. david: phil flynn, thank you very much. nicole. nicole: we go live to blake burman live at the white house. blake, we've been watching all the action. we know markets came under pressure. dollar moved to a 10-month low.
all of this because health care came right off the table. they just couldn't get the support. what has been reaction from the trump administration on this one? reporter: the word president trump used on this day was disappointed, nicole. he spoke for a handful of minutes inside of the white house today. that was word repeatedly used by the president, disappointed as health care process suddenly came to screeching halt. at least appears that way. as for a way forward, the president seemed to suggest earlier today, that the next best option, just might be to let obamacare implode. >> i think we're probably in that position where we'll just let obamacare fail. we're not going to own it. i'm not going to own it. i can tell you republicans will not own it. we'll let obama care fail. then the democrats will come to us, and say how do we fix it, how do we fix it or you how do we come up with a new plan. reporter: at off-camera white house press briefing i
asked the deputy press secretary sarah hakimullah mehsud about the very comment from the. -- zare are you huckabee sanders. why is it best to let obamacare to fail. she said it is democrats to blame not fixing the problem. >> that sort of i think sort of behavior is unacceptable. hopefully with the collapse of the program that they put in place, they're more willing to come to the table to clean up the mess. reporter: white house is pushing back on the notion that health care reform as it stands right now at least is dead. for example, earlier today the vice president mike pence said quote, inaction is not an option. however president trump was a bit more vague about the way forward during those comments earlier today. he said the following, quote, something will happen and it will be good. it may not be as quick as we had hoped but it is going to happen. back to you. nicole: all right. blake burman. at least they're trying to stay optimistic. i will tell you, thanks, blake, not only health care weighing on
the markets overall. goldman sachs taking a hit today, after the investment bank reported a 40% drop in its bond trading business. joining me, gary kaltbaum, kaltbaum capital management president. and jonathan hoenig of capitalist pig hedge fund. both fox news contributors. thrilled you're with us today because it is eight days straight. we haven't seen that since february of 2015 for the nasdaq. new record high. remember the tech wreck last month. we made it through that but today it was d.c. gridlock. gary i begin with you, your thoughts what we're seeing right now and goldman sachs as well? >> market is acting just fine. goldman sachs was basically the dow today. nasdaq was enfuego. it was apple and netflix and few others. i have no complaint. amazing to watch because you have a republican leadership great at snatching defeat from
the jaws of victory. i'm kind of surprised that markets aren't doing a little bit worse but i do think the big one will be the tax reform. if we get a no on that. i think things may be a little bit different going forward. nicole: jonathan, what do you think? >> a lot of money was invested in companies like goldman sachs, nicole, predicated exactly what gary is talked about, meaningful tax reform, meaningful health care reform. >> anything. >> almost shocking how quiet it is. i mean we are in the lowest period of volatility, the lowest intraday range in the market. we're almost due for a correction. nicole: that is exactly what cfo was saying on the goldman sachs conference call, volatility, lack thereof made for difficult trading environment for them to make money. commodities, forget it, was the worst for goldman sachs in lloyd blankfein's decade run, or worst since they went for an ipo many years ago. so overall the trading
environment is difficult. we've seen sectors, financials, materials, infrastructure, health care coming under pressure what we're seeing in washington. how are you both feeling in the long term? are you still believing in that idea of a down payment on the trump agenda? can it happen? tax cuts, infrastructure spending, what you do you both think? gary, i again with you, how are you feeling on longer term for this one? >> the market was basically dormant for two years until the election. i really do he have blow the market is anticipating something, if they don't get something done on tax reform. earnings planning and planning from corporations and businesses go by the wayside. then you have an issue with the market. good news central banks will continue to print money. nicole: jonathan, one word, how are you feeling? >> i feel, i feel fine, nicole. how are you feeling? this is a bull market.
until the market tells us otherwise we go higher from here. nicole: gary, jonathan hoenig, thank you for joining us on record day for the wall street and nasdaq. breaking news. ibm with second quarter results. lori rothman with breaking numbers. lori. >> nicole, looks like a mixed picture here. revenue was soft are than expected, $19.29 billion. declining revenue has been a big problem for ibm they have not reported rising revenue in like five years. the good news, earnings per share was stronger than expected, $2.97, versus the wall street expectation of $2.74. the company is saying that its cloud revenue was standout performing units of the time period, of the quarter with cloud revenue up 30% year-over-year. if you adjust for the changing value of currencies, dollar versus euro, dollar versus yen,
looking at 32% increase in cloud revenue on adjusted for currency basis. give a quick check of shares. ibm shares are up, albeit very slightly in wake of this report. back to you. nicole: beat on earnings per share. seen that seven of last eight quarters, dave, markets after hours slightly higher for ibm. david: let's turn to chaos inside the beltway with senator bill cassidy. he joins us now. this is double loss for you, not only are you a senator interested in passing some kind of health care reform bill but you're a doctor. i am wondering as a doctor what will happen to health care considering we'll go along with the status quo or death spiral of obamacare? >> we won't continue status quo, when people are paying $1700 a month, $2500 a month or more, status quo can not persist. obviously difficult to pass something without any democratic cooperation, but blue state senators have people in their
state paying $30,000 a year for premiums. david: right. >> we'll get to a point where we replace obamacare. david: how long? what will be the breaking point that gets us there? >> individual market will have to happen relatively soon. the medicaid in 2020, states will be responsible for 10% of their cost to the medicaid expansion. most states will not be able to afford that. it may be 2020 comes medicaid. but those things which are not sustainable will gradually be replaced. david: if you repeal it, and it is not at all certain it would pass, just a repeal of obamacare, but if you do, senator mcconnell reminded us you have two years we'll still have obamacare. so there will be little piecemeal changes along the way. to me those changes seem like putting bandaids on gaping wound, no? >> certainly may take that to bring folks who are representing, who are democratic senators to come to the stable. and -- table. unless they come to the table it
will harder to do something comprehensive. david: let's be clear, senator, you are inside the beltway. it is all about politics. they see this on republicans laps leading into the 2018 elections. they want you guys to be in chaotic state through 201elections. because they want the majority in the house and senate again. their interests are not fixing health care as much as winning, right? >> i think they're too smart by half. if obamacare doesn't change for two years, all the bad things that happen over the next two years will be because of obamacare. david: even though you guys are in charge of the executive and both house of congress? >> that is the obama care legislation with which we received no cooperation to repair, to fix, replace. david: that's why with, when i see notes or tweets out from the president saying maybe now democrats will -- they will not come on board, are they? >> it depends? if people realize, wait a second
we're still living under obamacare, there has been no change, my premiums climb even more hopefully will bring democrats to the table. david: but their strategy, if the health care system falls apart, in this nation it will fall on your laps, because you have executive and both houses of congress, that is their strategy, is it not, to lay it at their footsteps. >> their presumption is people won't realize republicans in the end didn't touch it at all. didn't touch it at all. it is still entirely the contraption passed under affordable care act. that is their gamble. david: senator cassidy dr. cassidy, good luck. >> thank you. nicole: focusing on progress in our nation's capitol, republicans are eyeing tax reform but after the failure to replace obama care, will gop be able to duty your taxes, will that be done by the end of the year? we'll see about that. next republican congressman andy barr will be joining us. david: i did want a tax cut. a lot of people do.
how socialist venezuela is threaten -- responding to threatening economic sanctions. nicole: no one can forget this incident, a passenger dragged violently off an airplane. how at this time impacted united's bottom line. next on the severe psoriasis, you can embrace the chance of completely clear skin with taltz. taltz is proven to give you a chance at completely clear skin. with taltz, up to 90% of patients had a significant improvement of their psoriasis plaques. in fact, 4 out of 10 even achieved completely clear skin. do not use if you are allergic to taltz. before starting you should be checked for tuberculosis. taltz may increase your risk of infections and lower your ability to fight them. tell your doctor if you are being treated for an infection or have symptoms. or if you have received a vaccine or plan to.
ceo oscar munoz, let me give you the quick quote. basically redoubling our focus on customer experience. there you have it. let me give you the numbers. $2.75 earnings per share, much better than the $2.63 estimate. revenue better than expected, 10 billion, almost 6 1/2 increase from previous quarter. 9.97 billion was expectation. top and bottom line beat. this really caught my attention here. united continental saying they're seeing 79% decrease in involuntary denied boardings in may. that goes back to april 9th, after the april 9th incident after they dragged passenger off the plane. that is may stat. 88% increase in voluntary denied boards in june. david: stock is down 3%. >> it is falling down. david: lori, thank you very much
nicole: now we're focusing on tax reform. within of the main reasons this market run up. house republicans unveiling a budget blueprint, tax reform, to budget cuts. after health care failed can they the gop get it done? we have andy barr, republican from kentucky, financial services committee member. thank you for joining us. >> good to be with you, nicole. nicole: where do we begin on this? where do you think about tying tax cuts and spending bill together? >> it makes sense. obviously we know in order to deliver relief to the american people we need not only tighten our belts and achieve deficit reduction to live within our means and deal with our $20 trillion national debt but we have to get growth going again in this country. as a member of the financial services committee and chairman
of the monetary policy subcommittee, we have opportunity to quiz the chair of the federal reserve on our economy. after eight years of obama policies we see substandard growth. nicole: what is likely hood of all of this happening? sounds so great on paper. >> i know american people, my constituents are frustrated with the news that senate was not able to get the votes on health care. that certainly raises the doubt about the ability of washington to get its act together. i share that frustration. house republicans sent major pieces of legislation over to the senate. american health care act to repeal and replace obamacare. we sent financial choice act to unplug plumbing of our economy, off-ramp for dodd-frank. we sent historic record of bills over to the senate through january 30th. most over the past five administrations in the first year of a presidential term, but, but the question now is,
can the senators have the persistence that the house had in even though it is difficult, staying with it, sticking to it. because i agree with the vice president -- nicole: i want to show our viewers a little more in the real numbers, the finances of this one. let's break it down. so the spending plan which covers the fiscal year beginning october 1st, expects to achieve $6.5 trillion in deficit reduction resulting in a 2.6% economic growth over next decade. so this is the blueprint, right? i mean this is what we're saying. we're talking about $9 billion in surplus. what do you think of this? do you think is right on key? >> i support it. this is right kind of budget a a budget that produces growth. force us to live within our means. nicole: since you love it, we know you love it, you're a big part of this one i want to ask you one other key question. this is something everybody really wants to know. there has been a lot of fingerpointing about the obamacare taxes and they weren't all repealed.
do you think the gop health care bill failing in the senate, at least part of it was because they weren't all repealed? >> well, remember, what obamacare is. what the law is. and i don't know, i don't think that is the reason why it failed. remember this repeal effort, this repeal and replace effort is a trillion dollar tax cut and obamacare represents a trillion dollar tax increase on the american people. obamacare, the affordable care act, is a tact bill. it needs to be integrated in the tax reform effort. that is why we sequenced it the way we did. why the house passed repeal and replace effort before comprehensive tax reform because it has effect if we enact at this time into law lowering the baseline by trillion dollars. that gives us a huge start on historical transformational reform. nicole: we appreciate the insight. we'll wait to see if we get the numbers by the end of the year. david: venezuela talking tough
against the white house. the venezuela ann president vowing to proceed with his plans to dissolve congress despite what the venezuelans call a brutal threat from the west. president trump promises to take strong economic sanctions against venezuela if it goes ahead to disgolf congress an consolidate the ruling party's power. nicole: u.s. getting tough towards iran. will the white house's latest move be enough to curve iran's missile program? david: trump administration struggles to pass key legislation, some states are looking to bypass d.c. all together and working on their own. we'll ask former governor tim pawlenty about that straight up. but there will still be pain. it comes when your insurance company says they'll only pay three-quarters of what it takes to replace it. what are you supposed to do? drive three-quarters of a car? now if you had liberty mutual new car replacement™,
deal from the obama administration but today slapping the country with new sanctions. rich edson at the state department with latest. reporter: good afternoon, david. the state department just announced it is sanctioning a dozen iranian entities and individuals for support of the iran ballistic missile program and the iran revolutionary guard corps. the state department spokesperson, heather nauert wrote, united states will continue to use sanctions to target those who lend to iran's destablizing behavior. above all the united states will never allow the regime in iran to acquire a nuclear weapon. the treasury department announced sanctions against two iranian businessmen and associates stealing u.s. software from companies and selling that to the iranian government. the state department announced sanctions just hours after it certified for the second time that iran was in compliance with the nuclear agreement. the administration officials say the united states will continue to adhere to the nuclear agreement will it continues its
policy review, full policy review what the u.s. policy will be towards iran. these new sanctions announced this morning are separate from the nuclear agreement. more sanctions against iran's other destablizing activities with a new approach that the administration says it is trying, trying to work with european governments to get stronger measures against iran when it comes to some of the nuclear activities. as you know many provisions of the iran nuclear deal sunset after period of time. the administration wants europeans to get on board with getting rid of sunset provisions but that is very difficult task, david. david: rich edson, good to have you you back on fbn. reporter: always great to be here. nicole: check on united stock after hours, following a slight beat on second-quarter earnings and revenue though the airline reporting a 79% decrease in involuntary denied boards in may and 88% decrease in june year-over-year.
stock is down. david: beat on earnings doesn't help when you beat your passengers it is that simple. i'm just saying. wiping away student debt, how missing paperwork could end up erasing billions in student loans. unbelievable details you really won't believe this, coming up. nicole: after years of promising obamacare repeal and replace, where does congress go from here? fred barnes weighing in, coming up right after the break. ♪ >> for seven years i've been hearing repeal and replace from congress. i've been hearing it loud and strong. when we finally get a chance to repeal and replace, they don't take advantage of it. copd makes it hard to breathe.
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lease the gle350 for $579 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. nicole: president trump expressing his disappointment on the his plan to replace obamacare as the senate scrambling for a new solution. adam shapiro with latest and breaking news in washington on this one. adam, where does congress go from here? reporter: according to mitch mcconnell a vote at some point this week on repealing obamacare, the affordable care act. remember the senate actually voted in 2015 and voted to repeal obamacare but the president at that point, president obama, vetoed that. there is only one senator in the
senate today who voted against it then, that is of course susan collins of maine. the senators joined her today they wouldn't even vote yes to let this thing go to the floor for debate, susan collins, lisa murkowski from alaska, of course senator capito from west virginia, who were no votes which essentially said dead on arrival. mitch mcconnell whether it is dead or not wants it on the record and wants a vote. here is what he said about that happening? >> sometime in the near future we'll have a vote on repealing obamacare, essentially the same vote that we had in 2015. i would remind everyone, that in that proposal, there is a two-year delay, a two-year delay which would give us the opportunity to work out a complete replacement on a bipartisan basis with our democratic friends. reporter: nicole, the democrats are willing to work on a fix for
obamacare, but they will not come to the table if that includes repeal. so looks if we'll head for a vote to repeal obamacare. it is not expected to pass but don't put money on it until it actually happened. then we'll move forward most likely on tax reform and deal with health care as the president has said after it fails. back to you. nicole: that was whole idea. president trump even said it. he said we had some years waiting to repeal and replace, at least repeal. now they can't get it done with certainty. latest breaking news. adam shapiro, thank you. david: after congressional failure to get health care reform, the president appears ready to let obamacare continue its death spiral. >> let obama care fail. it will be a lot easier. we'll be in the position to let obamacare fail. we'll not own it. i'm not going to own it. david: here is fred barnes, "weekly standard" executive editor. also fox news contributor. he said i'm not going to own it.
he let obamacare fail several times. he thought this thing out. i think impression he wanted to go this route for a long time. how about you? >> he certainly said that before, you're right about that, david. he is saying it again. it doesn't work that way. republicans are not going to let insurance markets just he collapse. they're going to have bail them out over two year period trying to work out a new bill. it is too bad. david: i told a senator in this program just moments ago, i said it ain't going to be pretty whatever happens. we'll have, even if mcconnell is able to get repeal through, there is a lot of doubt whether he can, there will be still two years of obamacare with all the problems that an sue from obamacare. >> we'll have all of those. they have to be dealt with, at least temporary while trying to get a new bill. there is intervening event, that is in november 2018. what happens? they're still negotiating, trump with democrats and republicans trying to come up with
replacement for obamacare and democrats take over the house, maybe the senate as well. that will change the equation, it will give democrats much stronger hand than they have now. david: republicans are saying, if we have obamacare for the next two years, all of the blame for the problems from obamacare will stand at the feet, rest at the feet of demonstrates. you say no, because republicans are in power, they will take the blame? >> if obamacare collapses, i should say continues to collapse, during this two-year period, republicans have the house, senate and white house, who do you think will be blamed? republicans will be blamed. that is why at least temporarily, they're going to have to support obamacare in ways that he prevent it at least from at least collapsing more than it has. david: i was skeptical about the president's tweet.
after he was sandbagged, he went into the dinner thinking there was chance they could pass it. he was mad about that. he tweeted out after the dinner, republicans should just repeal failing obamacare now and work on a new health care plan that will start from a clean slate. dems will join in. why should democrats join when they want republicans to look as bad as possible leading into 2018? >> very good point, david. democrats, look, democrats have defeated, repeal and replace now just by standing there, saying all 48 senators we're against anything republicans will do. that worked so far. so, i don't think, they can be very passive and yet very effective. david: fred barnes, good to see you, fred. thank you very much. appreciate it. >> you're welcome. david: nicole. nicole: debt wiped away. $5 billion in student loan debt may be forgiven. the culprit?
missing paperwork. national collegiate student loan trust, one of nation's largest owners of student debt failed to provide documents showing loans. judges in new hampshire, ohio, texas, already dismissed similar cases due to faulty or missing paperwork. david: somehow i think taxpayers will end up paying for that as well way things are going. nicole: for sure. david: cracking down on illegal immigration. this is a very positive story. why one border patrol chief is praising president trump's efforts as quote miraculous. nicole: growing tensions with north korea. why china could be to blame in powerful weaponized drones end up in the wrong hands. ♪ ♪
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treasury secretary steve mnuchin and commerce secretary wilbur ross participating in a reception for chinese vice premier. the meeting comes as u.s. considering new tariffs on chinese steel and for china to put pressure on north korea and its nuclear program. forbes columnist, author of the coming collapse of china, gordon chang. thank you for being with us. >> thank you so much, nicole. nicole: what are the first steps should be taken here? what should the u.s. do in relation to china? and how much is south korea going to help with this? >> the chinese with regard to north korea have not been helpful and this is important for the trade talks because president trump in april said the chinese would get a better trade deal with the chinese were going to help on north korea. well we know from his june 20 tweet, that the chinese haven't been helping or haven't been helping sufficiently. so that will color these trade talks. they say these talks have been sputtering. they could come right at end of
last few years but i don't really think so. nicole: big meeting continues into tomorrow. there will be real notables there, jamie dimon, mary barra from gm. people from conocophillips, walmart, bank of china chairman and also one of the state oil company leaders there. what do you i think ultimately is is the goal? what are they trying to get to and how will this help us here in the united states? >> well the chinese, they want more access to the u.s. market. they have got almost all the access they want. but they are -- nicole: really they have been bullying their trading partners for so many years. that is part of the platform we've seen from trump. >> yeah. on the other side of this, xi jinping, the chinese president, has been progressively closing off the chinese market because he believes it should be reserved for china's own state enterprises. we've seen made in china 2025 initiative, which is meant to close off 10 critical sectors. this is a very difficult conversation.
we want more market access. the reason why all the companies are there but the chinese don't want to grant it to them. nicole: do you think quickly, ultimately there there will be historic shift in american policy on this overall? do you think by the end of this it will be a real change? >> absolutely. trump has said, he is quite correct on this, north korea is our number one policy goal and the chinese policy has been subordinated to that. the chinese if they're not helpful on north korea will not get a good trade deal. nicole: gordon, i want to pick your brain on this one. turning to another area. this is a rising issue we have with china. united states unwilling to sell most powerful american-made drones for fear they could fall into the wrong hands and ultimately used against our american forces but "the wall street journal" reports that china is filling that void, actually selling models that resemble our own, of the predator and reaper drones, to interested buyers at cheaper price.
gordon, what do you think about this? >> well you know, not just a question of cheaper price. what they're doing as you say, is violating standards that the world wants to put in place. the u.s. actually did negotiate a declaration last october. chinese didn't sign on to it. which means that declaration is worth very little because there will be this race to the bottom. just simply unacceptable -- nicole: do you think the u.s. should put this front and forward right now? >> absolutely. and i think we should be willing to sell to our friends and allies even though we may not want to because we do not want them to develop relations with beijing. we don't want the chinese, continue this race to the bottom. nicole: gordon chang, thank you so much for joining us. >> thank you. david: a quote, miraculous turnaround. border patrol union chief brandon judge praising the trump administration saying progress curbing illegal immigration has been quote, nothing short of miraculous. apprehensions are down 53% at
the southwest border since last year. he credits action by president trump to allow border agents to do their job as part of the reason for their success. nicole. nicole: d.c. struggling to get the work done, looking for states to take up issues on their own. former governor pawlenty weighing in after the break. keep it right here. ♪ ♪ ♪ ♪
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mired in gridlock will help need to come from the state level? ceo tim pawlenty join us now. good to see you, governor. >> good to see you. david: governors played a huge role in obamacare. many of them were lured into obamacare by free, i put quotes around that, federal taxpayers paid for that. huge medicaid expansion. how do you break that addiction? >> one way you do it, having the federal government not act or choosing not to act unable to act, have the mcthe issue, real people and real needs involved. preobamacare, there was lot of innovation at state level. david: true. >> getting uninsured insured. david: the states are the great pietri dishes. that is where the experiments take place. the people inside of the beltway could learn a lot from the states. you think inaction perhaps in congress might force states to learn to live without medicaid? >> yes. you put your finger on something very important. founders of this country said
the states are the laboratories of democracy. they're supposed to be innovators, if it works scale it federally, not other way around. unfortunately we did it backwards. david: they're pretty far away from the action inside the beltway. they could learn a lot from the states. as far as tax cuts, art laffer, one of our favorite economists, he wrote a great op-ed piece how states could push forward the move to cut taxes more than folks inside the beltway. governors and mayors should lobby non-stop for tax cuts proposed by trump which would revitalize state finances. the trump plan would free up $2 trillion to $4 trillion in 10 years, enormous influx of cash for state and local economies. true? >> that is a great point by art laffer, wise, interesting entertaining friend. absolutely. governors should be worried less about more handouts from washington, d.c., and worried more what you can do to get the economy growing. that will help citizens directly
and help -- david: not all state governors believe in cutting taxes. think about illinois, new york, connecticut, and those are states from which people are fleeing. they're going to places like texas and florida, that have zero income tax. >> that's right. so you won't have all the governors, even if you get 20 or 30 speaking with one voice, that will make a big difference. david: finally, i know this is subject that interests you, tesla ceo elon musk warning that u.s. governors, warning u.s. governors, ai, artificial intelligence will threaten jobs, spark a war. what do you think? >> one recent report says 88% of the jobs lost in the country were result of automation, not result of trade or foreign economic practices. really important for governors and policymakers to be focused on this. automation is coming, coming more quickly than people think. it will have enormous workforce disruption, k-12 system, post-secondary system, all have to be retooled to be more
nimble, entrepreneurial, more effective aligned with the future rather than the past. that is a tall order. that needs to be done. david: not government funded. whenever the government gets involved in social engineering it usually fails. sometimes makes things work. >> as it relates to k-12 for example, post-secondary, we don't need more funding but use money currently spending things more applicable, more likely to lead to jobs in the future, rather than backward looking for mat we have in many cases. david: final word on what happens with health care? do you think there will be a pass or fail on mcconnell's move to repeal obamacare? >> they don't have the votes to do that. republicans have run around this country for a decade we promise we'll take over, two at least two things, tax reform and obamacare repeal and replacement. they're stuck. that is not a good answer. they have to find a way to get this done. david: not a good answer, that's right. tim pawlenty. good to see you governor, appreciate it. nicole.
nicole: age is nothing but a number. meet this 101-year-old woman who set a new world record. david: triple digits. nicole: check it out. ♪ ael: awesome. potsch: i'm going to show you a next generation pickup. michael: let's do this. potsch: this new truck now has a cornerstep built right into the bumper. gary: super cool. potsch: the bed is made of high-strength steel, which is less susceptible to punctures than aluminum. jim: aluminum is great for a lot of things, but maybe not the bed of a truck. potsch: and best of all, this new truck is actually- gary: (all laughing) oh my... potsch: the current chevy silverado. gary: i'm speechless. gary: this puts my ford truck to shame. james: i'll tell you, i might be a chevy guy now. (laughing)
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seconds. amazon, facebook and netflix, hit highs. >> is 100 the new 70? thank you for joining us. we appreciate it, "risk & reward" starts right now. >> it will be a lot easier. i think we're in a position, we'll let obamacare fail. we're not going to own it. i'm not going to own it, i can tell you, the republicans are not going to own it. we'll let obamacare fail, then the democrats will come to us. liz: you break it, you own it. invoking colin powell d disok doctrine, president saying it is not on him, it is not on the republicans, it is on the democrats it is on charles schumer and nancy pelosi. >> it is pretty clear, that there are not 50 republicans at the moment to vote for a