tv Mornings With Maria Bartiromo FOX Business February 13, 2018 6:00am-9:00am EST
proposal to focus on infrastructure the commander-in-chief remains committed to america's safety for increased spending on infrastructure. >> villa including -- the president goes on in the most important jobs he has is protecting this country, therefore the need that has been ignored for so long, infrastructure focusing on crisis and border wall. dream to breaking down the proposal. amazon employees hundreds in seattle campus and more on the rare cutbacks for amazon coming up this morning. our historic then make her remington chapter 11 how it helps block the motive for his future success.
to top republican senators raising questions over an e-mail. national security adviser susan rice set herself on president trump's inauguration day. details that document president obama and fbi director jim comey over the russian election hacking. american phenom core weekend taking the gold flying high in south korea. highlights from the winter games. dagen make towel, benchmark managing partner kevin kelly and former trump surrogate erin elmore is here. good to see you. good morning, everybody. dagen: good morning. >> loving it. this market we only see down two thirds of a percent. this is a lot better than 1.5%. time to digest the volatility.
maria: what change from yesterday at 4:00 with the marquis at 400-point intraday decline at 153. dagen: the interest rate story will reign supreme with this budget buster that came out other republicans in congress, the two-year budget deal with the white house with the president's budget willing to tolerate deficits for years and years to come. a federal reserve no longer buying treasuries. that is a perfect storm for significantly higher interest rates. trade to volatility in nervousness. >> over three weeks in january january 2016. this happened on three days. it happened over six trading sessions. this is really episodic, everyone still trying to digest what really happened.
maria: we've been seeing trading down in the last couple of weeks. they've been showing weakness in nervousness for a month now. >> with a rising interest rate environment you can't have utilities trading at 30 times earnings and type trading at 25 times earnings. >> the new federal reserve chief adds to the uncertainty because it's all about interest rates, fighting, they think they know jay powell, but do they? maria: earnings continued to be strong. better than expected on the actual numbers at $1.31 per share. talking about earnings as well. wisconsin congressman paul ryan.
director of legislative affairs is here as well. mike rounds is joining us as well, general jack keane weighing in as well on the military spending. retired astronaut u.s. navy captain scott kelly is with us. here the conversation as we talk about nasa and the potential of privatizing the space actions plus, the supermodel cofounder of the all hands foundation, patch or an uncle that is with us. you don't want to miss it. kick it off right here with this. yesterday president trump unveiled his long-awaited infrastructure plan that includes $200 million in federal spending over the decade. to do this moment ago the infrastructure plan has been put forward and received great reviews by everyone except the
democrats. we've taken care of our military now have to fake roads, bridges, tunnels and more. negotiations on daca have begun. wouldn't it be great if we could finally after so many are solved the puzzle. this will be our last chance. there will never be another opportunity. march 5th is the deadline to do something on daca. joining us to weigh in is the editor-in-chief of the daily caller, christopher bedford. thank you for joining us. your take away on all this whether talking about the president's budget in the infrastructure plan yesterday or of course daca as well. >> daca, interests because everyone is talking about the march that deadline from the original extension and if congress can figure this out legislatively beforehand. another deadline we don't know yet. supreme court is meeting later this week to confirm or overturn
a ruling that daca has to say the president can change that. we don't also mean that before march of the administration hasn't asked for change into the deadline. they have been asked to withhold their decisions the timeliness up in the air. president trump has a good point when he says this is her best chance and definitely conservatives best chance to do immigration reform because daca brings democrats and republicans with moderates and liberals to the table and a few on comprehensive immigration reform nafta trade back and forth in daca is the thing of her everyone to the table. >> hi, chris. aaron omar. seven out of 10-degree on immigration reform. our democrats waking up to this thursday at negotiation year are they seeking their feet in the mud? >> they will stick their feet in the mud because they have really staked their whole party on
this. you didn't see nancy pelosi talking for eight hours on the house floor over any other issue whether we see a reform, military spending, it is their right to stay in the u.s. the party put its flag in the sale and they are not going to change. if republicans get them to the talking table paul stevens even more likely than chain migration reform and other things conservatives want to see gop push. >> one of the things i look at his the 2019 budget. i was surprised by this because the first budget president trump came out with was a skinny budget and everybody was up in arms on the democratic side congress and they came up with this budget deal or his plan and it's mostly signaling, but were you surprised at his budget and how he blew up the deficit and didn't care about it for 10 years? >> i wasn't too surprised because donald trump never ridden in a moment.
the whole campaign was building the wall to make mexico pay for it. i don't recall him talking about that. what shocked is a few days before the house and senate passed the idea of a two-year budget that absolute looser deficit. if republicans want to come back and be really didn't, they have to stand for something. they can't just give away and fill repealed about the care and expect their base to turn out and support them. dagen: president trump's agenda, chris, was progrowth. it was getting out of the way of business. based on the president's budget and what the republicans did which renders his budget for 2019 almost moot given the $300 billion spending increases from republicans, it is in progress because you have a government siphoning money away
from the private sector, taking more and more away from the private economy and feeding it into entitlement programs, things like $20 million in infrastructure spending and republicans budget outline from a week ago. have you read the fire? how do you justify those two things? >> you really can. everything they've promised on the campaign trail was absolutely busting through these caps in any spending, but the only victory they've had legislatively in washington than a decade as putting caps on and peered that they are willing to trade that for defense and what's funny about that is that they had to, but they do control the house and senate and white house and they could have pushed this issue forward and negotiated harder. you saw leadership drop on conservatives in the last
minute. then a few hours, six hours, 10 hours to push back and get messaging. but the leadership drop the budget i met with a couple people representing conservative offices and it was a little bit more like a week than a planning session because none of them had any idea how they could be leadership on this in the gop has given away another of their promises. maria: they will push back and say we needed to give military spending in their pen in order to do that we have to agree on other stuff. >> they have a massive fight on military spending just a few weeks before we see nancy pelosi and chuck schumer and neighbors them so badly in the public opinion. "the new york times" and republicans look get the blame for this. within 24 hours they had to admit they couldn't get the blame for this. everyone in the country knows the democrats fault. the gop didn't seem to take any courage from the tree that the american people showed they care
more about the military. they didn't take any lessons and acted like it never happened. maria:.com i guess so. two top republicans on the senate judiciary with questions on former obama national security adviser susan rice and herself an e-mail under their president trump's inauguration in the e-mail appears to be basically documenting a meeting two weeks earlier with then president obama and fbi director jim comey and sally yates about the russian election hacking. he notes in the e-mail obama repeatedly emphasized he wants every aspect handled by the book. our senators chuck grassley and lindsey graham right to find that odd? what is your take on the e-mail? >> i love those two have been working away when everyone else has been yelling and screaming and carrying on back-and-forth, those who have been investigating in releasing
interesting news that we don't she was involved in the unmasking and she lied about it on television and she was basically a trap for the incoming administration at every level. one of the last actions she took was a memo to her self to say we are going by the book and i'm innocent and the president is not trying to destroy the trump administration. it's like the lady protested too much especially when we've seen she was actively involved in not necessarily doing things by the book at least according to the spirit of the law. >> so the president is getting an underrated. they start figuring out whatever they've been putting around, whatever barriers they put in the way for the trump administration, they figure out they are about to get caught, so she sends herself an e-mail writing notes down that obama play by the book?
>> is hard to tell exactly what she meant, but it looks to me like it is a little letter of innocents left behind in the place easily discoverable for investigators who dug deep enough into this. maybe it would've made more sense if she's been running around or on the road, but her last day in the white house, last day in power to put something on the record and she chose to lay out the innocence of everyone involved. we know she lied about it and not everyone involved is necessarily msn. he comes across as the senators called an unusual. maria: wow, have to keep ahead of these people. it's incredible. we will see you soon. christopher bedford at all be sitting down with paul ryan later in the show. we will get into the budget issues we will discuss in a few moments with paul ryan, speaker of the house. hundreds of jobs are cut up the amazon seattle offices.
maria: emergency evacuation. cheryl casone with the details. >> good morning, rea paid 140,000 passengers at john wayne airport in southern california was about to depart first when the fire broke out. some passengers did get injuries. layoffs are on the way at amazon and barnes & noble. in a rare move eliminating hundreds of workers at headquarters in seattle and hundreds of employees around the world. it is sinking headcount adjustments. barnes & noble with an unspecified number of workers go there. they are involved with their digital projects. in the 6.5%. amazon is moving lower.
barnes & noble's shares have plunged more than 50% over the past year. amazon and cbs. walgreens could be beefing it up today with the global drug distributor. walgreens owns a quarter, but now reporting that could buy the rest of the company. the competitive health care industry changing rather quickly with $69 billion. searched to 12% in the premarket right now but more than 17% in the premarket. gun maker remington filing for bankruptcy. while every structures this data gunmakers have the decline following president trump's
election as fears of gun regulation quickly evaporated. remington has been abandoned by investors as the sandy hook elementary school that killed about 20 children and six adults. we shall see how the company fares. back to you. tranter will take a break. when we come back, this one another sharp selloff underwear. the third day of their own terms of volatility means for investors today. dow industrials down 186 points. clearly, kim going full force on the half pipe for the gold for a teenager taking the olympics by storm. ♪
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maria: welcome back. volatility has returned. dow industrials down 107 points now. nasdaq down 45. a few hours after the market search with the dow closing up yesterday 400 points. yesterdays performance of at the close very strong. entrepreneur shares ceo and cio with college professor entrepreneurship joel schulman. good to see you. thanks for joining us. what do you see in terms of clients in terms of flows in this market? would you think these moves are?
>> we see flows positive. people take advantage. if you think about the interest rate hikes that we've had come me go back over the last 25 years. 1994 we had six rate hikes, but there is a two-year period between 2004 in 2006 where we have 17 rate hikes. so i think people should hang tight and buy the dips. >> of looking at this market and not every sector is cut the same. pepsi has, indeed disappointing outlook switches below expectations. where should investors start to look into the market right now. not everything will be a bargain and they should start picking and choosing their favorite parts of the market right now. >> i like i.t., health care where we tend to find the
entrepreneurs. the company out of the u.k. with mixers. that same industry where they've gone up 200, 300% and they were just recently acquired. little companies regardless of sector, entrepreneurial companies that still perform well. we like to cook three key sectors, tax, health care -- dagen: at it scenario is quite different than anything we've seen in history really in terms of the said. it is dirty begin reducing the fact that its balance sheet is going to reduce it by an estimated $450 billion. that represents about one quarter the size of the entire u.s. economy when he was in single digits before the lehman collapse. so to that point, we have a
congress that is increased deficit spending at a time when the demand for treasuries is shrinking dramatically. that is what is causing concern. where do you find havens in that kind of environment? >> you are right. it's a little different although generally speaking we have small markets globally. we are still a safe haven globally when i talk about u.s. markets. we still have increasing profits for the most part throughout most of our sectors. we have counterbalancing issues as well as you mention a few of things in the fed, but also i believe tax bills helpful for companies with profits and increasing tax law particularly sectors that are heavy in high tax. increase expenditures and are in need, we see increased demand for borrowing, sour economy still strong. the question is whether we will go to keep pace with the government changes.
>> what he wanted to hear, joel? how do you invest in a market that is swinging wildly at 400 yesterday, down 200 today? >> it's a great question. we are going to find people who were hanging onto the tax that they have come the liquidity, by and dips. you don't sell when it depreciates here in the market. i think there is a great market for stock pickers. it is a great market for people to buy significant dips. it's a decent market of the volatility is bothering you to look away. when we look back from today to a year from today to two years from today we will see the markets higher. maria: we will be watching. thanks so much. we will take a break through a comeback, the military spending plan, ambitious plan to the overall effort on the war on terror. olympic controversy, the u.s. women's hockey team may be
banned from wearing a symbol of freedom on their helmet. we will tell you about it. stay with us. ♪ . . you can do that? we can do that. then do that. can we do that? we can do that. can we do that? a trip back to the dthe doctor's office, mean just for a shot. but why go back there, when you can stay home with neulasta onpro? strong chemo can put you at risk of serious infection. neulasta helps reduce infection risk
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the east coast. dow jones industrial average expected to be down 170 points. two-thirds of 1% lower. nasdaq and s&p 500 also down better than 1% right now. this coming after two big gains on twal street. nasdaq and s&p also up better than 1% as you can see. what happened overnight? in europe it's been a dhopy session, -- choppy session. dax index in germany down 48. in asia overnight, mixed performances, take a look. majors higher. in budget battle, president trump highlighting crucial but controversial piece of budget, increased military spending. >> the budget was recently
passed and the reason it was passed is because of our military, our military was totally depleted and we will have a military like we've never had before. without the military, it's possible there's no reason for us to be meeting, maybe we wouldn't be here so we will have the strongest military by far. maria: whether the u.s. needs to reconsider war efforts and fighting cancer with the flu, details on the study this morning, some promise on pancreatic cancer. teenager taking top spot, we have the olympic highlights coming up this morning. lady liberty too political. team usa hockey goalies may have to remove images from statute of liberty from helmet, outrage later this hour. half story this half an hour,
rebuilding america's military, president trump unveiled 2019 proposal yesterday, includes more than $686 billion in military spending, among the earmarks to modernize equipment by ten new combat ships as well as bump production for the aircraft. >> in the budget we took care of the military like it's never been taken care of before, in fact, general mattis called me and said, wow, i can't believe i got everything we wanted. i said, that's right, but we want no excuses. we want you to buy thought, we want to get twice as many planes for half the price. maria: joining thus morning fox news senior strategists general jack keane, thanks so much for being here. >> glad to be here, maria. general mattis is completely
correct about that, the largest plus-up in military budget in almost 40 years and we cannot recover in one or two budgets, we have to sustain the increases for about 5 to 6 years, it took us a long time to get in the desperate situation but there's money in the budget clearly to fix the problem, we have to grow the size of the military, we have to fix our equipment that we have, so much of it is in disrepair right now, we just need the noun buy repair parts and as you mechanicsed in intersection, we need future capacity that we don't have now and money in the budget to get us there, the russians and chinese have closed on us from technology perspective. we do not have the decided advantage that we used to have. maria: yesterday we had david stockman and he was upset about the budget numbers, what about the readiness, lack of our military, what about all of these accidents that we keep
having, what about the fact that 50% of the planes are not flyable, he said that none of that is true, absolutely is not. we don't need all of the money, we need to stop men and women all over the world, why are we still in afghanistan, why are we still in iraq, this from the person who actually was reagan's budget director, he quit, he was upset by spending levels in reagan administration, what do you want to say to him? >> he has a different view of what america's role in the world is. he wants to disengage from the world. there are other people who want to do that in both parties to be sure but i fundamentally believe in the president's path and simply put america back on world stages, global lead the other help stabilize and secure the world and help the economy, the world economy to prosper, when the united states is exercising strong leadership through its military and through the strength of its economy, the
world is a safer place. maria: yeah. >> we have seen the opposite the seven or eight years. maria: we have seen real impact. overnight in kuwait, secretary state tillerson told to not lose sight of overall goal, nearly defeated them in syria, mounting distractions infighting among coalition members. first give me your take on what's happened to isis and how this new increase in military spending is going to impact that and some of the other threats around the world and then do you think the u.s. needs shift in strategy for the middle east? >> yes, i do. first of all, to deal with isis, we took their territory away from them and the people who were involved in that are leaders and the iraqis and syrian democratic forces deserve huge credit for doing that. but somewhere in the
neighborhood of 16,000 fight irs in syria and iraq hiding, wait to go conduct terrorist activities and wait to go reemerge particularly if the united states and coalition forces leave. just as what happened in iraq when president obama pulled us all out. that would be a huge mistake, we cannot do that. when the middle east strategy, what we have to recognize, the number one threat in the middle east is iranians who are trying to establish control of the middle east. they've got lebanon politically, militarily, they have most of syria, begin to go encroach on israel, dead serious about establishing bases in syria to fire missiles into israel, that's why the israelis are pushing back, they have some political influence in iraq that we don't have and they also want control of yemen, i think it's time now to stand up some kind of arab nato and recognize that we have got to push back on the iranians particularly with the
windfall of money that they received because of nuclear deal and return of sanctions and money that was tied in international u.s. banking, we've got to stop these guys with their aggressive and maligned behavior. maria: is it going to work? even when the deal wasn't even signed, they were still saying death to america. >> they started in 1979, they say it every single year. two thicks that they want to achieve to be able to control the middle east and they talk about it every single year, one is drive the united states out of the middle east and that's what they are trying to do in syria and other places and number two, destroy the state of israel, they are absolutely 100% consistent on that and that's what they are about and we have to recognize for that and we have to stand up against it with our allies. maria: real quick, a word on this budget because we are taking a look at the appropriations now, that's the next step here, what should be the appropriate end result for some of this increase in
spending in terms of appropriations, where are the needs, general, from your standpoint? >> well, first of all, the overall amount for 2018 as agreed to should be $700 billion, that includes the base budget and what we spend for contingency operations overseas and for 2019 it should be somewhere what we agreed to, $716 billion and initially, we've got to get out there and fix this equipment that's in such disrepair that you have the dimension. that's essential, we have to provide pilots with hours of training and others that need training done and begin with future capability. our people know what to do. i'm encouraged by this. the number two guy by the defense department is a businessman. if we use business practices, defense department is not a business, but many of its
functions, maria, are business-like functions and id needs that kind of expertise and experience to help it. maria: really interesting, general, great analysis, thanks so much. >> good talking to you, maria. maria: and to you, sir. scientists would soon be able to wipe out certain cancers with modified flu virus, wait till you hear about that. gives them the chance to honor symbol of american freedom. back in a moment. this is your n. this is your new house. and a perfectly inconspicuous suv. you must become invisible.
we are looking at nervous market once again. we will follow this. we are watching interest rates which are pretty steady this morning nonetheless down 48 on nasdaq, down 81 on the dow. potential breakthrough in pancreatic cancer treatment, we want to tell you about this because this is 55,440 expected diagnoses this year, researchers at london university are modifying common flu virus that destroys pancreatic tumors while leaving healthy cells unharmed. he has personal connection with the disease and shared thoughts on new treatment. >> it's very promising, however, it's only being worked on in mice at the moment. it has ways to go but it would be a huge breakthrough if they could find anything that would destroy pancreatic cancer cell. maria: pancreatic cancer, number two killer behind lung cancer in
terms of cancer, i know heart disease is number one killer of americans. the reason is because it doesn't show up any symptoms, by the -- >> it's stage 3 or stage 4. maria: wow. she battled pancreatic cancer for four, five years? >> four years. maria: seeing what she had to go through. >> yeah, we did it together. two things i learned, one is you're only as healthy as you are when you wake up that morning because you can get a diagnosis for something that you didn't know was coming. maria: change your life. >> change your life. the other thing is you do whatever it takes in the situation. they ran out of things to throw at it. there isn't a chemo that would cure it but a new clinical trial during while pam was sick in san antonio, and so she qualified for the trial and off we went to
san antonio every week for eight months, we got on a plane in new york together on tuesday -- maria: did it help in the interim? >> it shrank the tumors but they came back. that's what happened, it's a sequence of that going on for as long as you can make it last in our case it lasted four years. maria: you and your family raised one and a quarter million dollars. >> yeah. maria: you did this in one night. >> the kids are all singers and performers and actors and my daughter-in-law is kelly ohara who you may recognize, big star on broadway. last may we did one-night performance at the play house and netted $1.2 million. maria: that's fantastic. >> to support the trial which is being run. something that your viewers might want to hear, if they know somebody who has early diagnosis
of diabetes they can get screened as no part of this and could help advance eventually a cure for pancreatic cancer. maria: pretty incredible. teenage dream, american snow border knocking it out of the park. snow boarding legend shaun white to make histic moment of his own. the latest from north korea next .
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maria: welcome back, we are watching market this is morning, we continue to watch a sell-off under way in futures, dow industrials expected to be down almost 20 points at the start of trading despite big rally at the close yesterday, nasdaq and s&p 500 also down two-thirds of a percent right now. in south korean right now young american skate boarder leading the hype, taking the gold in half pipe. lauren simonetti with all the details. lauren: she has a sense of humor, she's 17, she won the gold for the woman's half pipe and showed up when done with the win her back to back 1080's becoming first woman to do so in olympic history. she might have been focusing on food. first tweet about craving ice
cream and she will get ice cream, i think. decided not to and now i'm getting hangry apparently works for her, like i said, food sponsorship might be in her future, in the men's qualifying, we see writers usually more mellow. they save the best for last. shaun white looking to clinch third gold. answered scotty from australia with back to back 360. norway has nine medals, netherlands and canada, team usa coming with six medals and france has five if you are keeping track and in women's hockey we bring you the controversy over lady liberty, this has been resolved moments
ago, at issue look at the helmet. violate the international committee rules that ban political symbols, if they rule yes, they would have to change helmets game before olympics from russia. it gets tricky, you can't use symbols, wording, those are pretty artistic, anyway, what do you think? maria: on the day of the championship you can't change somebody's helmets. maria: they've done it before. i guess they have backup helmets to quickly switch. dagen: yeah. >> lady liberty has never said one political comment. i don't know how she's gotten political. if they want to blame anybody, they should blame france. [laughter] kevin: thanks a lot.
i love the medal count because shows how north korea didn't have olympic gold when it comes to diplomacy, that was the whole thing, everybody was -- come on, everyone is buying into this propaganda machine and that's been the most frustrating thing because if -- sports is suppose today bring communities together and, you know, people are buying into north korea in politicizing it. dagen: no russia. all athletes doped. lauren: oar that's what we are calling them now. the ratings haven't been that great. >> i've been watching, i love it. dagen, no i have not. but i did see interview with chloe kim and her parents. if there's anybody, they are lucky to have hodakopi, but they had video of chloe as a little girl wearing a snowboard on a trampling wanting to do flips,
little girl. like, and this is incredibly dangerous sport. lauren: she just has such a sense of self-and personality, sending out funny tweets about food and people are responding, they are going viral, people just take a like to go her. dagen: she makes it look easy. and she makes it look easy and it is one to have hardest things that you can do in winter sports and one of the most dangerous. maria: look at that, wow. she's amazing. kevin: i could have never put down a breakfast sandwich if i was about to go down in the half type. lauren: wouldn't you throw it up as flying through the air and spinning, back to back 1080's. dagen: back to back 1080's. maria: she's incredible. dagen: you go skiing, it's cold and get hungry. i'm burning so many calories, no
you're not because -- [laughter] kevin: twisting open your ski pole. maria: never heard that one. kevin: you twist off the top and drink out. when you're done for the day -- [laughter] kevin: very european, that's what i did over in the alps. maria: when were you in the alps last. kevin: ten years ago. i was just of age, don't worry about it. you can be 18 over there. dagen: go usa. [laughter] maria: still ahead rebuilding puerto rico, super model who survived 2014 tsunami in thailand giving help to those who suffered last year's massive hurricanes, mornings with maria, stay with us.
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>> maria: welcome back. good tuesday morning. thank you for joining us. i'm maria bartiromo. your top stories right now. volatility has returned and it is here to stay apparently. futures pointing to a triple dig edigit loss at the start of trading. the dow industrials down 150 points right now after the market closed up yesterday by
400 points, marking the soaked straight session -- second straight sessions of gain. the nasdaq up 10 10 107 points. europin europe, in major di inde are mixed. in asia overnight, markets were mostly higher with the exception of japan, opening up after a long holiday weekend, the any kaye averagnicknikeiaaverage wa. president trump debuted his budget proposal yesterday. in addition to calling for increased spending on the military, the commander in chief remained committed to rebuilding the country's roads and airports. it's raising concerns over the ballooning deficit. >> it will create thousands and thousands of jobs and increase training for our great american workers and it returns power to the state and local governments
who know best what their people need. washington will no longer be a roadblock to progress. washington will now be your partner. >> maria: the president's proposal also calls for increased border security. the senate will take up the he debate on immigration this morning. general motors is anything but gold in south korea. why the automaker plans to close one of its factories in the country. and uber is demanding drivers hit the brakes. the new feature that requires time off between long shifts on the road. plus, they can open doors. the latest robots sending the internet into a frenzy with many saying we are doomed, robots are taking over. joining us to break this all down is dagen mcdowell and aaron he'l elmore. thank you for joining us. >> the robot opened the door for another robot. i'm afraid i'll walk into a room and there will be robots hanging out.
>> maria: there will be. >> i know. >> maria: the day is coming. >> i'll have to apologize, sorry i didn't mean to interrupt anything and i'll walk out. >> maria: or they'll be like you're not coming in. >> you don't need to worry about robots, the productivity of them is through the roof, but we haven't seen -- a lot of companies say they're not going to displace jobs because you need people to program the robots, build the robots, do the whole thing. >> maria: we've got that going for us. >> yeah. >> maria: we want to get to markets and the budget. joining the conversation,e, speaker of the house paul ryan will be with us this morning. also with us mark short is here. the former ceo of c.k.e. restaurants, andy posner joins us and scott kelly is with us this morning. plus super model, h petra nema
will be with us. the dow industrials are off of the lows, down 140 points right now, 2/3 of 1% lower. the nasdaq and s&p 500 are also negative. there was a big day yesterday oven the upside. yesterday the dow was up 400 points following the worst week in two years. the s&p and a nasdaq ended up 1.5% yesterday. kevin kelly, your take on the volatility. >> i think this is an okay thing to happen. it's fine. i know people are freaking out. we went from a price to earnings multiple on the market which was elevated at 20. after the selloff we went to 16.5 which is below the average, the his tore l cal historical a. we're actually getting our sea legs, given the fact that some companies are going to win, some companies are going to lose in the current tax rate environment where debt -- the cost of capital is going to be going up.
this is okay. the last two corrections we've had, we've gone down to 15.5 p.e. multiple. we're getting there but it takes a while to digest how investors are assessing risk in this market. >> dagen: how do you explain what happened last week? >> nobody can explain what happened. volatility was suppressed for such a a long period of time. we went 410 days without a 3% move. 410 days. >> maria: this is not just about that. dagen, you have talked about budget issues and talked about the fact that we are seeing spending out of control and interest rates are going up. and you think that this market's -- it's not a coincidence. you think what's troubling the market is the fact we're looking at trillion dollar deficits. >> dagen: it's the deficits. i don't take fault with the tax reform and the tax cuts. we do need an economy growing faster, maybe growing 3% which was in trump's budget yesterday, the president's budget, to raise
revenue in the country. when you have the fed -- again, it comes down to the federal reserve is reducing its balance sheet. it started -- it was only $10 billion a month during the last quarter of 2017. he see, it goenow it's $20 bill. then it's 30, then it's 40. by the last quarter of this year it will be $50 billion every month. that's demand for treasuries that is dis disappearing as the supply goes through the roof in part because of what the republicans did last week with the two year budget deal. we finally have wage inflation. we he have a new federal he reservreserve chief on top of all of this. there's a concern about what will be the impact on interest rates. i think that scared investors. it goes to what you're willing to pay for stocks. >> maria: i think it's a great point. rates are going higher and it will cost more in terms of holding on -- in terms of the
interest payments. let's turn to the budget and the massive 2019 budget we got details on yesterday. congress received the spending proposal, including a $1.5 trillion infrastructure investment. in a tweet earlier, the president touted his plan which revicrevitalizes america's crumg infrastructure. he said the plan received great reviews by everyone except the democrats. after many years we're taking care of the military. now we have to fix roads, bridges, tunnels and more. let's bring in mike rounds right now. senator rounds, thank you for joining us this morning. >> good morning. i appreciate the opportunity to visit. >> maria: let's talk about this budget you're a member of the senate environment and public works committee. how will senate play for the expensive infrastructure plan and what's your take-away, knowing we're talking about trillion dollar deficits for 10 years out and counting?
>> i think the earlier discussion was right on when we talk about the interest rates and what happens as the interest rates go up. interest rates go up by a quarter point, long-term, it means about $50 billion more per year that we have to pay. so this is a significant issue that we have to address. but i'm going to go into the infrastructure stuff. what the president wants to do i think is the right thing in terms of fixing the infrastructure we've got in this country and improving it. it's one of the advantages we've had over the rest of the world is transportation opportunities, the energy opportunities. right now we're talking about communications, power supplies and so forth. i'm not sure that with the amount of money that he wants to invest we're going to get to $1.5 trillion to $1.7 trillion in total investment but i think that's a very good goal. i like that goal better than a trillion dollars over that same time period. i think this will push investment. the challenge is how do you get other people to invest when we put in about 20% of it at the federal level.
i think that's going to be a good challenge all the way around. >> maria: you say we were right about our discussion. what does that mean in terms of these trillion dollar deficits? how are you going to get your arms around the debt? when did this become -- when does this become a real priority? >> that's one of the things that brought a lot of us to washington. the first thing you have to do in order to get your handle on the entire debt -- remember, we were running deficits before we did the tax plan. we did the tax plan and we're working right now with the administration on reducing the bureaucratic nightmare in washington which are regulatory problems which increase the cost of doing business. we understand that unless we have a growing gdp, unless we have an economy that is rising with job opportunities for young people, unless we have that happening, we can't dig ourselves out of the mess we got ourselves into. in part, because even if you were to take the entire defense budget away and all of what we call the nondefense discretionary money, even if we took it away and didn't spend a
penny on it, we would not balance the budget. the reason is because about 72% of the entire budget is on auto pilot. that's medicare, medicaid, social security, and interest on the debt. so the discussion that you had earlier about what happens if you go up even a quarter point per -- let's just say the federal reserve says we're going to raise the interest rates by a quarter point. and everybody looks at that and says that's not a lot of money. but if you look at $20 trillion over an extended period of time, you're talking, what, $50 billion more per year. and that's not $50 billion that's going into infrastructure. it's not going into defense. it's just interest on that debt. so you're exactly right on. but the only way that we can get our handle on this, and this is put into the bill right now, there's a select commit that i was established that's going to study for the first time in years the budget process. there's a group of us that have said look, we're fighting each other over whether or not we ought to spend money on defense
and nondefense discretionary items, education, health and so forth. the largest part of the entire budget is on auto pilot. nobody is managing it and that's the part that's going up like crazy. so let's get our handle on this thing. give us the tools to fix the mess we've got ourselves in. that means the entire budget, not just the defense and nondefense discretionary. >> dagen: all you republicans recognize it. i can't tell you how many congressmen have come on the air in the last week and said well, we recognize that entitlements are the problem. what are you going to do about it? the market i'm telling you is going to make a decision for you in terms of interest rates spiking while you're sitting around in committees trying to figure out how to right-size medicare and medicaid and social security. and by the way, the house at least passed what was a giant
medicaid reform last year and it was some of your colleagues in the senate in the republican party that got in the way of it and said no, with a big thumbs down. >> well, first of all, i will tell you that there are more and more people that understand how critical it is that we actually manage those major programs. medicare and medicaid in particular. we can fix social security. i'm convinced we can fix social security. we can protect the benefits that are there. long-term, if you really want medicare and medicaid to survive, you've got to start managing them. we've got a pension system in south dakota started in 1974, the same year as the budget act started at the federal level but every year in south dakota we manage that pension system. if you look at it, it's probably the best managed in the united states today. people don't look at it as a third rail. they look at is as an expectation that it's our job, to manage it and make it better. we're not doing that when it comes to social security or medicare or medicaid. for those individuals that don't want to fix it, they shouldn't be here. we have to fix those programs.
and the only way you can do it is to have accountability and responsibility. but if you look at the committee structures we've got in the united states congress today, there's lots of committees with lots of finger pointing back and forts had. forth. i like the select committee idea. >> maria: let me ask you about the immigration debate, senator. your chamber began an open ended debate on immigration. the president weighed in on the debate this morning. he he tweeted negotiations on daca have begun. republicans want to make a deal. democrats say they want to make a deal. wouldn't it be great if we could finally solve the daca puzzle. this is our last chance. there will never be another opportunity, march 5th. what are you expecting in terms of a daca deal with your colleagues across the aisle? >> the message that we've been sharing back and forth is number one, we recognize that even if you can get something out of the senate, the president's got to be able to approve it and the house will never touch it unless the president's on-board. he identified four pillars.
we're going to start with border security. we think we can work that through and get what the administration needs in order to do the border security that is a signal that as a country we can protect the borders we've got today. second of all, we will address the daca issue. i think the president came way forward from a lot of people from what they thought he would do. i think that was a positive message to democrats saying look, we he can actually work and find common ground and there is a sense that these young people really could add to our job force which is going to add to our economy long-term. we need the workforce. in order to do that, there are things that pop up. and that is how we handle the currencies testimony of current system of immigration. it's a matter of identifying the nuclear of the family but stop what the president called chain migration which slows down the ability of other people who are legally in line today and are trying to come here with good
trades and so forth and merit and we've got to get a handle so those people with merit can come in and get in line and expedite the movement through the process. >> maria: we'll leave it there. great to have your insights this morning. thanks so much. >> thank you. >> maria: coming up, will general motors steer away from south korea? the automaker closing at least one of its plants in the country. details on the new plan out of gm coming up. opening new doors for what a robot can do. how boston dynamics is teaching its robo dogs a new trick. lovely. back in a minute. today, the new new york is sparking innovation. you see it in the southern tier with companies that are developing powerful batteries that make everything from cell phones to rail cars more efficient. which helps improve every aspect of advanced rail technology. all with support from a highly-educated workforce and vocational job training.
>> maria: welcome back. futures are indicating a sharp selloff at the start of trading this morning. this is off of the lows of the morning. the dow jones industrial average is down 140 points, about two-thirds of 1%. things are coming back from earlier lows, which were down around 200. we'll be watching this volatility this morning. the takata air bag recall keeps growing. we have he details now. >> ford and mazda are telling owners of more than 35,000 picku35,000pickup trucks to stog them because of potentially defective inflaters. these are from model year 2006. exploding inflaters killed nearly two dozen people and injured more than 180 others.
dealers will replace the defective part. we should take a look at the stock. shares of ford are down about half a percent in the pre-market. mazda shares are down about 1% over the past year. there's a one year chart of mazda. well, general motors is closing one of its four plants in south korea. this comes a as the ceo continus to shutter unprofitable business units around the world. thegm korea posted $1.8 billionn net losses between 2014 and 2016. shares of the company in general are up about 20% from a year ago. big move there. well, president trump's family is still outraged after a scary incident with his daughter in law, vanessa trump. she's the wife of don junior. she was rushed to a hospital after opening a suspicious later containing what turned out to be a nonhazardous white powder that
was sent to the couple's new york home. druhere is a view for you. the national portrait gallery unveiled the official portraits of former president barack obama and former first lady michelle. on a backdrop of greenery and flowers, president obama portrayed in deep thought with crossed arms. mrs. obama is painted calm and collected in an abstract dress. they will hang alongside if complete collection of presidential paintings. i like the dress. i don't think it looks like her. >> maria: there was a debate on twitter on the internet. it doesn't look like her. what do you think, dagen? >> dagen: it's a mill millie drs which she's wearing which i love. the man who painted the
president's portrait is as famous an artist as president obama was. he's an extremely famous artist, not the first lady's portrait but the president's portrait. and he h takes old master's stye and paints contemporary black men, even people he sees on the street. the genesis of his painting, he he found someone's mug shot in the streets of harlem and so he puts them in these situations. it also h evoke's the presidents hawaiian background and roots. the painter is also a black man. so it was a magnificent choice in many ways. >> maria: i like what michelle obama said. she said she wants little girls to look up and look at somebody that looks like them so they know they can reach first lady of the united states. >> dagen: my art history degreey
comes in handy. >> maria: life after brexit. negotiations heating up as britain prepares to leave the e.u. uber drivers forced to hit the brakes, the plans to combat drowsy driving and protect passengers, back in a moment. it's time for the 'ultimate sleep number event' on the only bed that adjusts on both sides to your ideal comfort, your sleep number setting. does your bed do that? ght now, save 50% on the ultimate limited edition bed. ends soon. visisleepnumber.com fora storeear you. touch is how we communicate with those we love, but when your psoriasis is bad, does it ever get in the way? embrace the chance of 100% clear skin with taltz. taltz is proven to help people with moderate to severe psoriasis achieve completely clear skin.
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>> maria: welcome back. navigating trade as brexit negotiations forge on, global trade remains a focal point for global leaders, including theresa may. the u.s. is prepared to negotiate. joining us right now is the trade commissioner for north america, anthony philipson. thank you for joining us. >> thank you so much. >> maria: we want to get clarity on when we'll hear more in terms
of the plans for brexit. when i was actually in europe just recently, there was a lot of discussion about how the u.k. is the underperformer and it's largely because theresa may hasn't shown she has the mandate, there's too much waffling going on. start there. when do you expect the details of the plan to leave the european union to be finalized and communicated? >> it's a great pleasure to be here and have the chance to talk bouabout this topic. the process has begun. we're into the negotiation. we began it in march last year when we launched the article 50 process. there was substantial negotiations last year, reaching the agreement. now we start talking about implementation and we will also start talking about the future partnership and people will always want more detail. business will always want more detail. they hate uncertainty. >> maria: they can't make their plans. they've got to either stay in london or go to germany. >> we talk to the business community a lot. we have made clear in terms of
the implementation period, we expect to provide a period of certainty going beyond march 2019, a shared ambition between the u.k. and the e.u. and there is a shared ambition between the e.u and the u.k. part the future partnership. this will happen over the next few weeks and months. >> where are you on the corporate tax plan? there's a plan to take it down to 17% over the next three years. is that a contentious issue in negotiating brexit? i know there's been some issues with ireland recently and you have a third party super state which is the e.u. invoking -- it's trying to invoke its powers over sovereign states. where are you guys on the tax negotiation aspect of brexit? >> in terms of the overall negotiation, where we are is in terms of how do we work out the partnership in the future. it will be a partnership between the u.k. and the e.u. on the tax side, we have been -- this is a program of corporate tax reform that's been going on
he pre the ref republica refer. this is not an issue that is run out of brussels. all member states set their own tax. the e.u. wants to be clear we're not acting in a way out of kilter with the e.u. the u.k. needs to set a clear and effective tax regime that will be attractive for people to set up in the u.k. >> maria: what do you want to see from the u.s.? >> we want to see more of the same. the trade partnership is incredibly deep. they ouwhat we want to do as wee out of the e.u. is to take the relationship into the future, around the new technology like artificial intelligence, data, driverless vehicles, life sciences, financial services. these are areas of real sort of commonality between the u.k. and
u.s. we want to build that partnership for the future. >> thre theresa may is expectedo move the brexit divorce rate up three months. is that in the plans? >> we're in the middle of a negotiation. the prime minister said she expects the implementation period to last around two years. in e.u. in the initial framework proposed up until december 2020. that is the subject of the negotiation now. >> the reason i focused on trade is because everything is up in the air at this point. president obama had said a couple years ago, look, if the u.k. goes forward with brexit, they're going to be at the bottom of the line. where do you feel you are in terms of doing a bilateral deal with the u.s. in terms of trade? >> i think where we are is we're in the mix. there is a sort of dynamic conversation going on around the world about trade liberalization. in july last year the secretary of state for international trade, liam fox launched a trade
investment working group. they will talk about issues that will strengthen and deepen the relationship between our countries. both sides committed to this at the highest level. we know that we need to do it at the appropriate time and we know that some on this side will want to know where we'll end up with the e.u. the tracks will run alongside each other. we will push forward on all of them as fast as we can. >> maria: thanks for the update. >> thank you very much. >> maria: coming up, deficit hawks swooping in on the administration's new budget. i'll talk with white house director of legislative affairs, mark short, about the battle brewing. and how instagram is putting a stop to unwanted snooping. wait until you hear this one. back in a moment.
>> maria: good tuesday morning. welcome back. thanks for joining me. i'm maria bartiromo. it's tuesday, february 13th. your top stories right right no. markets are on edge this morning again. futures point to another selloff at the start of trading, down 136 points on the dow, the nasdaq down 32 points. this comes after two straight days of gains on wall street.
the dow had a great day yesterday, up nearly 2%. the nay nasdaq and s&p 500 up by almost 1%. in europe, it's been a choppy session this morning. the major markets are off of the lows of the day. the dax index remains negative, off of the worst levels of the morning. in asia, mixed performances. japan comes off a long holiday with a decline of 2/3 of 1%. shanghai was up 1% and the hong kong hang seng was up 1.25%. in washington, lawmakers are facing legislative battles on two fronts. questions rise over the growing deficit in the budget and the senate is taking up eu7 up immi. president trump weighs in on all of that yesterday. >> one of the things that was important to me with respect to the budget was daca. i did not want daca in the budget. i wanted daca separate so that we could talk about it and make a deal. i hope the democrats are not going to use it just as a
campaign. they've been talking about daca for many years. and they haven't produced. we started talking about daca and i think we'll produce. but if the democrats want to make a deal, it's really up to them. >> maria: the very latest on the negotiations coming up this morning. puerto rico meanwhile struggling to recover from hurricane maria. super model petra nemkova tells us about her recent visit to island coming up this morning. uber tells drivers to take a break. details on a new rule to prevent drowsy driving. instagram will make it more difficult to keep your posts private. boston dynamic's spot learns a new trick. there's spot, the robot. now spot can open new doors. more on the video coming up from the latest robot. president trump sent congress his $4.4 trillion budget proposal. the brinit includes funding forl
on the u.s./mexico border, rebuildingerebuilding america's infrastructure, fighting drug prices. sarah huckabee sanders weighed in on the budget outline yesterday. >> in the budget we took care of the military like it's never been taken care of before. general mattis called me and said i can't believe we got everything we wanted. we said we want you to buy twice what you thought for half the price. >> the budget reduces the deficit by over $3 trillion. it funds the president's priorities and puts the country on a path to restoring fiscal discipline. >> maria: some house members are speaking out about the plan, citing concerns about a rising deficit. joining us now is mark short. are you expecting congress to approve the budget? >> keep in mind, the budget is what initially sets forward the
appropriations process. last year there was budget reconciliation votes to pass tax relief. this year because we have a budget cap in place, this is more of a direction from congress as to where the administration wants to go more than a legislative vehicle. >> maria: what about the fiscal responsibilities here that we've spoken about so many times and really getting the budget back on a path to fiscal responsibility as sarah huckabee sanders just said? how does it do that? when you look at the budget you talk about trillion dollar deficits and a lot of commentary around it that basically says we're in debt for as long as you can see and it's only going to get more expensive as interest rates go higher. >> maria, a kim things. couple things. last year we put forward a budget that balanced the 10 year window and congress said the cuts were too steep and too harsh. this year the budget cuts over the course of 10 years.
we're sincere about when to cut a lot of foreign aid that goes to people who are actually fighting against the americans' best interest. at the same time, we have a priority to rebuild the military. it's something the president promised on the campaign trail that he would keep america safe and our military has been, with multiple wars over the last two decades, unfor unfortunately wea lot of equipment that's been deteriorating that needs to be replane orbereplenished and troo get paid. there are national security threats that we have to make sure we fund. we're sincere about wanting to cut the deficits. the question is will congress partner with us to do so. >> maria: mick mulvaney said the budget does not balance within 10 years. so we know that. there's some groups like the committee for the responsible budget who said the projections are too rosy. you can't expect 3% economic growth for 10 years. maybe we'll get 3% or 4% growth for the next couple years. what if we get a h a recession?
does that change anything here if we get a recession and you're not seeing the growth numbers you put on paper? >> i do appreciate the concern. we're conservative in projecting 2.9% growth. the last few quarters we averaged 3%. we think where the economy is going is in a much stronger position. during the obama years, the budget predicted 4% growth, yet they averaged 1.8% growth. we think we're being realistic in the estimates we're putting forward. >> maria: when do you think that reining in the entitlements, when does that become a priority? >> it's a great question. we do need to get si sincere bot entitlements. it's a driver of many of the deficits. there's a lot of things we can do on the discretion fairly frondiscretionary frontright no. >> maria: meaning cutbacks? >> absolutely.
$3 trillion that is proposed over the next 10 years it's primarily on the discretionary side. in many cases these are foreign aid to countries that are actually aiding terrorist coring any sayseorganizations there. are .there are a lot of places y is going where it shouldn't go. the question is, will congress partner with us on this. >> maria: you said last year congress did it, they threw it in the trash. >> eve some o even some of the t were berating this, they said the budget would go in the trash because the cuts were too strong. the country needs to have a real question and a real conversation about the debt and the deficit. at the same time, we do think the economy is strong. we think the 3% gdp growth is strong. we recognize that 4.2 million americans have received either a
wage increase or a bonus in the last six weeks since the tax relief package was passed. so we think that it's on strong footing at the moment. >> maria: where does the $200 million for the infrastructure plan come from? the white house budget proposal includes that $200 billion for rebuilding the infrastructure. president trump said this about fixing america's roads and bridges yesterday. listen to this. >> i submitted legislative principles to congress that will spur the biggest and boldest infrastructure investment in american history. the framework will generate an unprecedented 1.5 to $1.7 trillion investment in american infrastructure. we're going to have a lot of public/private. that way it gets done on time, on budget. >> maria: where does that money come from? >> keep in mind, the president campaigned on the reality that america's infrastructure is crumbling. the proposal he he pu put fort s saying there's $200 billion available that we'll send to state and local governments to say we'll partner with you but we expect you to raise
additional funds. we believe this will entice partnerships to come forward to help match federal dollars. they'll match a percentage of an overall project that will spur additional growth. we ask that the permitting process be reformed. the president talked about the he empire state building being constructed in one year. today average roads take 10 years to get through the permitting process. another part of the package is reforming the bureaucracy and reducing regulations in washington. >> maria: the senate is kicking off a debate on immigration. the president weighed in on reaching a daca deal yesterday. here's what he said. >> i did not want daca in the budget. i wanted daca separate so that we could talk about it and make a deal. and i hope to be able to make a deal. i hope the democrats are not going to use it just as a campaign. >> maria: so mark, as the liaison between the white house and capitol hill, what kind of deal would the president sign? what do you need to get in order
to get a daca deal? >> i think that we've been very specific and very clear about our priorities on this front. the president laid out a very specific framework that said that he's willing to go an extra step with 690,000 participants in the daca program to say i'll expand the population where democrats want. i'll even provide a president hadway to citizenship. i -- a pathway to citizenship. we want to end chain migration and the visa lottery program. we look forward to getting a vote in the senate this week. >> maria: do you think the democrats will agree to that? >> i think the question for them is do they want to agree to a plan that, again, provides a final solution to this population or do they want to plighpoliticze. some say they want to keep this alive so let's kick this down the road for a couple years and
then we can have the same political debate. the president is looking to solve the problem and provide certainty for the population. >> maria: thanks so much. >> thank you. >> maria: stay with us for my interview with house speaker paul ryan at 8:30 a.m. eastern. we'll talk about the white house budget, immigration and much more since mark short just told us that congress threw the last budget in the trash and all those cuts that the president wanted in terms of domestic spending. still ahead, curbing drowsy driving, uber's new plan to protect drivers from nodding off behind the wheel. and also how boston dynamic's viral hit is learning how to open doors. back in a moment.
we're off the lows of the morning. dow industrials are expected to be down about 100 points, under 100, actually, the nasdaq and s&p 500 are also off of their lows this morning after a huge rally yesterday. earnings one of the drivers, pepsico and under armour out for fourth quarter numbers this morning. >> a couple of stocks to watch today. peppepsico reporting better than expected results this quash. highequarter.pepsico announced a $15 billion stock buyback, a 15% hike in the dividend and $100 million in bonuses including up to $1,000 in cash bonuses for some of its u.s. based workers. under armour posted stronger than expected revenue in 2 fourtthefourth quarter, thanks g sales of footwear and clothing. pepsico is slightly higher in
the premarket, under armour is up almost 12%. two stocks to watch. uber is launching a new feature to make sure that your driver doesn't fall asleep at the wheel, probably a good thing. uber says its drivers must take at least a six hour break every time they work 12 consecutive hours. this is part of the company's effort to combat drowsy driving. the update to the app expected to roll out nationally over a two-week period. drivers are also going to receive a warning after 10 hours of driving to let them know they're approaching that 12 hour limit. well, instagram is introducing a new feature that notifies you when someone takes a screen shot of your instagram story. they have been testing the notification for a while. soon they'll roll it out to more users. followers will be able to take one screen shot before instagram let's them know next time they
take one instagram will let them know. shares of instagram's parent company, facebook, up more than 30% over the last year. and then finally this is cool, maria. what you're about to see is not from hollywood. boston dynamics are showing off the latest evolution of their robot. this is spot mini which can now open the door. with it's hea its head or arm, t know. best of all, a very mannered robot. his robot friend gets to enter first. social media basically is saying humans are doomed. there's just no use for us anymore. there you go. >> maria: well, it's getting scary out there, actually, cheryl. bad news for the doorman. >> i'm worried about one day i'm out trick or treating, doing whatever, and a robot is handing out candy. that's my biggest fear.
>> dagen: i'm worried that you're out trick or treating. >> i like dressing up. >> i'm worried i don't know which is the head of that dog robot. >> i want to touch base. usually there's merger mondays. now we're seeing corporate tax reform come through. i think we'll have more transaction tuesdays. walgreens came through, trying to buy out the rest of the shares they own in amerisourcebergen. >> there's two big deals coming through today. >> transaction tuesday. >> maria: still ahead, rebuilding puerto rico. the island is reeling in the wake of hurricane maria. we'll talk about the efforts to rebuild after the devastation. back in a minute. hey. pass please. i'm here to fix the elevator. nothing's wrong with the elevator. right.
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>> maria: welcome back. picking up the pieces after disaster strikes, super model petra nemcova is joining the effort to rebuild puerto rico following the devastation caused by hurricanes irma and maria. he she visited the u.s. territory last month and met with people who lost their homes after the storm. joining us now is super model petra nemcova. it's good to he see you again. >see you again.>> nice to see y. >> maria: you've put so much into this. you were back in puerto rico in january. tell us how the commitment to rebuild was made possible and what you're trying to do right now. where are the needs? >> after hurricane irma we focused on st. thomas and hearing and we made a two-year commitment to stay in st. thomas to help the families here. and hearing about the difficulties in puerto rico we
decided to check with that situation. our team went first and i went myself early january and seen the island almost like a few days after the hurricane. so i went with our long-time supporters, and they enabled us to make the first phase through the commitment of helping families. what we found was families without roofs, families without support. many of them, they're slipping through the cracks because they can't get fema support if they don't have the right paperwork. almost 300 families signed up to get help with their homes because they can't get the help from he fema. fee m wfema.so we help those f. originally we had to start with the same type of jobs a few days after the hurricane, tree removal and mold removal. the biggest need is roofs.
there are so many people of without roofs. we need to get them to them. that's actually a picture of juan, 79-year-old man, and that's his mother, 93-year-old lady called franci francisca. he's taking care of her alone, cooking for her and she's blind, can't hear properly. and he didn't have a part of his roof and all he wanted is to have a safe roof and he said -- he broke down in tears. he said not for me, but for my mother. two weeks later he has a roof because of us. >> maria: can you reach out to, for example, roof producers and businesses that can be helpful? what do people need to know if they want to try joining us and helping? >> there's a couple of ways. if somebody wants to come, they can come and volunteer with us for three days, three weeks, three months, you don't have to have the skills.
we teach you everything. we have a great staff who can tell you exactly what to do. if they are businesses and they want to donate materials, the supplies are very important, but each of us can come and be part of the change. if you're upset about what's happening in puerto rico and you have a spare long weekend, come and volunteer with us because that's how you can be part of the change and the solution or if you want -- if you can't make yourself available on thursday we have an event for the finance industry, called fight for education and you can help us this way as well. >> maria: that's going to be a big money raiser. thank you very much. >> thank you. >> maria: thank you very much. we'll be right back. stay with us.
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. thanks for joining us this morning. i'm maria bartiromo, tuesday, february 13 your top stories right now 8:00 a.m. on the east coast the return of volatility, futures pointing to another loss at start of trading that morning, we are well off the lows of the morning, but, nonetheless, expecting at a decline of about 100 points, right out of the gate this comes after a big day yesterday in upside dow he closed up better than 400 appointments second he can straight session of gains up 410, 1 and 3/4% in europe mixed ft 100 higher 16 points quarter of a percent higher cac quarante in paris down a quarter of a percent the dax in german down a third of a percent in asia overnight market most higher japan open
traded down two-thirds of 1%, investing in america, president trump debuted his massive 4.4 trillion-dollar budget proposal yesterday, in addition to calling for increased spending on military. the commander in chief remains committed to rebuilding the country roads airports, it is raising concerns however over ballooning deficit i spoke with white house director of legislative favors marc short about the budget. >> the budget does cut 3 trlths trillion dollars over course of 10 years sincere intellect wanting cuts government programs wanng to cut, a lot of forei aid that goes to people actually fighting against american best interests at the same time we have a priority to rebuild our military. maria: the president proposal calls for you increased border security the senate will take up thank you debate this morning tax reform another pepsico to give bonuses due to historic tax overhaul 4th quarterly erpgz topped
we saw animal spirits, unleashed, and now, when you look at tax plan being blamed on the fact that the debt is going up, and did we really need 1/2 trillion-dollar package on top of the debt we have that would have been okay then followed it up with all that spending. >> right, at least 300 billion dollars, additional spending over two years, raising new baseline, we are looking at annual deficits north of one trillion dollars, and over 10-year period additional 15 trillion dollars, in debt potentially, i just don't -- it at this point, the market can handle it but going to demand a lot higher interest rates, to lend money to tfedera
government the senate immigration debate heating up following president trump's massive budgets proposal includes increased funding for border security blake burman at white house with that angle he there is now, blake good morning to you. reporter: maria, good morning to you as well a pretty unusual process taking place in yu states senate right now essentially, no road map a freewheeling form of debate, president trump says, he wants to see a detail struck on immigration, and tweeted out the following this morning, writing negotiations of daca have begun, republicans want to make a deal and democrats say they want to make a deal. wouldn't it be great if we finally after so many years solve the daca puzzle, this will be our last chance, there will never be another opportunity, march 5th pointing to decline ther-- deadline there a deal mirrors what white house wants to see a pathway to citizenship major board security tax reforms to image process as whole one
senator backing this is tom cotton. >> the president framework is not an opening bid in negotiations, it is a best and finalizing offer. he is taking parts of many other proposals put them together, we've at an the framework turned into legislative text. >> the top democrat in the senate yesterday xhuk chuchuck r wants what a he scribed more narrow bill. >> democrats fully committed to protecting dreamers we have long supported effective border security. emrepublicans are in the same boat. want the only enemy here is overreach. >> maria at white house they believe this process is going to play out in the senate over the next couple weeks, or so 60 votes to get anything done up there, and their confident at white house that will eventually circle back to the president four main pillars. >> maybing, blake burman the latest talk more about this joining us right now former
ceo cke restaurants former labor secretary nominee andy puzder what immigration deal do you think president should signoff on what do you want to see what are you expecting realistic. >> i i think the president's deal is spectacular against whether democrats want a deal you go back to december 2014 following the election, republicans thought they could will get a deal done they told president obama, the one thing you shouldn't do is act on your own because he it will empower the people in congress that don't trust you already. and, of course, the first thing he did was he dealt with policies that affected five mill people here illegally saying it wouldn't enforce the law we've got the presidency a bully pulpit he addressed this in the state of the union 12. 8 million daca recipients visa pathway to citizenship 700,000
in the at it program another 1.1 million people get rid of main migration no o more distant family relationships to get into country get rid of dwooers visas acting 50,000 basically say let people in from countries not normally letting people in from doesn't make any sense, and -- finally, and the -- the -- the fourth pillar border security chuck schumer says he wants if in thats want a deal very good deal on the table would be great for business great for the country improve the situation, with respect to to immigration they 24 take it get it passed could do it soon, they need to get together and do it. >> andy i am looking at this we just talked, on the panel about kind of the tax plan that went through, and now we've got blooming budget deficits just seems like the republicans, have completely you know, flipped and now they are not they are nphysically
conservative they should not completely by dr. in tax reform given the fact small businesses, needed this tax reform the mil class needed this american working families needed this because they needed a tax break even just on average, with the global system, what do you make of what is going on with the budget deficits, going on and to the tax reform plan went through. >> let me say two things number one, the reason that the president agreed oing to forward with the pan that had budget deficits at this level is because we have to fund military, our air force deleted -- planes that could dlie, the navy shrinking we were not able to deal with defense of this country, in a way the president felt was necessary to protect the people in this country, now the second part of that we had to give something up we don't have enough republicans in the house or senate i would ask people to keep in mind this coming november but we don't have enough republicans we could do this and deal
rationally to budget agreed to something we prefer not to deal with i will tell you this gi is a or he gottor what are we talking about this morning big deficits what a negative impact they could have on the economy on american people, that discussion is the only way we're going to get the kind of necessary reform that we need to reduce those deficits. we have to have that he concern out there, with the size of the deficits because 70%, 69.2% of the 2019 budget is in wealth transfer programs social security, medicaid medicaid we need to he will do with this regulationly may have able to because we are having this discussion as fr ras tax reform bill look at national federation independent businesses survey came out this morning business optimism historic highss 2017 highest aefrj ever had january up 2%, and we want to see gdp growth, we want to see wage growth, and we're seeing businesses are saying 2%, 2
percentage point more businesses say they will invest in expect a expenditures plant equipment 4% say they are going to increase inventories again, spending on expect a expenditures raises gdp on wages, we have not seen since 1989, as many businesses as high percentage saying they are going to increase wages, 24%, and 31% say they already have so we are seeing increased wages increased gdp, and a discussion on deficits, all of that is positive, we need to keep it moving the right direction. >> positive, unless the markets look at it as inflationary, and the reason for the fed to raise raises more than we thought, right? as many so i mean you said a lot of things there, number one you this i the markets are going to push lawmakers' hands? and number two you say wages are going up. how high are they going up i mean is it becoming a problem? >> a well not going to be a problem for a what i will wages stagnated 8 years, during the obama administration. we have room to move wages
what we need to reduce he income inadequately in this country the economy incredibly strong american businesses are doing spectacularly well they are envy of the world, there is not a problem here with the american business, or american businesses or the economy, the problem is is with interest rates going up, people will transfer money out of the stock market, into interest bearing investments was going to happen whenever interest rates went up has nothing to do with economic strength and markets may adjust, they are adjusting and they should adjust. >> yee quick final word dagen mcdowell. >> going to say the problem is also the fact that we are now running trillion-dollar deficits, and this country gets swamped and pulls the government pulls he money away from private sector and by the way, inflation already percolating, while poole ford cisco food chane higher costs not just wage growth look out because interest rates higher ones are coming. >> that is what the markets are saying andy we know that.
>> -- and i am so you glad we are talking about that, because if it weren't for this we wouldn't be talking about it nothing would happen, this we're pushing this issue to the front. >> thank you so much to get your insights we'll be right back stay with us. but before you decide, you should know that chevy silverado's are the most dependable, longest lasting full-size pickups on the road. which means that ford f-150s are not. (laughs) which truck would you pick? the chevy. the chevy. the chevy. there you go. boom. that was obvious. plus it looks cooler. no doubt about it. now they know what to get me. (laughs)
they appear out of nowhere. my secret visitors. hallucinations and delusions. the unknown parts of living with parkinson's. what plots they unfold, but only in my mind. over 50% of people with parkinson's will experience hallucinations or delusions during the course of their disease. if your loved one is experiencing these symptoms, talk to your parkinson's specialist. there are treatment options that can help. my visitors should be the ones i want to see. points on dow industrials, this morning nasdaq, s&p 500 also in red. earnings front and center peps xoe handing out bonuses to
workers due to tax cut bill another company cheryl casone with details basically saying pass on some savings to workers cheryl: absolutely 1,000 dollars or some people like to call it crumbs, hey it is a thousand dollar. >> sharing wealth from new tax bill, companies going to pay bonuses to up 1,000 dollars to some workers in the united states, this is coming as pepsico reporting better-than-expected results for the latest quarter, shares moving slightly low in premarket not more than a quarter% right now, well, firefighters in anaheim, california, coming to the rescue of old glory, the flag. was atop a commercial building american undergoing in flames two firefighters spotted flag raced to the roof fought smoke and fire, to retrieve the american flag heroes there. well u.s. and you russian governments finding creative ways to jabs at eshother
street signs one russian law enforcement to change address 1 north american dead end united states started this named street russian employee locked after long time kremlin critic sits on one boris -- plaza couple jokes back-and-forth between two countries. lighter there for you. maria: thanks so much, coming up new direction for the space race, about retired u.s. astronaut kelly weighs in on trump administration plan to privacy the international space station next join us pepsico beating fourth quarter expectations earnings and revenue to break down numbers why is stock trading down? back in a minute. ♪ ♪ ♪ that's what i want, that's what i want that's what i want ♪ ♪ ♪ that's what i want! ♪ ♪ ♪
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congress received 4.4 trillion-dollar spending proposal includes a 1/2 trillion-dollar infrastructure investment, but budget plan is
expected to add to the deficit, and federal government is on track, to borrow 9 a -- 955 billion dollars this fiscal year joining me right now fox business exclusive is the speaker of the house, paul ryan great to see you. >> great to be back. >> thank you for joining us this morning we have a lot to get to a lot of people talking about the republicans right now, not in a good way in terms of your two-year deal, last week, want to talk about president budget today first let me start on your budget, case, of course, we are talking about out of control spending one person put it leading to traveled zefldeficit 10 years mulvaney admitting
his budgets don't you balance 10 years brooks talking about two-year budget deal additional 3 billion dollars in spending worst piece of legislation i have voted on, tell me how you look at that. >> -- this was a discretionary budget getting military their budgetary military deteriorateing hollowed out focused on getting the military their you budget they need a budget they can plan for we had, last 8 years discretionary budget that we have now, is still lower than the budget that we put in place in 2011 we passed, so, so if you remember go book to bca, i was budget chair discretionary spending today is lower than levels envisioning in 2011 the other point i simply make sequester no one intend sequester to kick in do what it did to military we want to rebuild military did a few things sings those days put in 250 billion dollars, of permanent mandatory spending cuts, in that categorize of time, and
this bill we have medicare means testing got rid of independent payment advisory board down payment health care reform done things that we think pretty important yeah, we did have more domestic spending domestic spending we put in he pretty much one time spending disaster aid, infrastructure aid, exchange for getting military budget we want. maria: . >> here is the question get on entitlements, so this was a discretionary spending budget this wasn't a full macrobudget this is discretionary spending for us, save the military, one time spending for hurricanes disaster, get spending cuts that will grow in in out-years, we do have to go back and focus on entitlement spending, the house republicans passed biggest entitlement reform package ever when we passed our health care bill, unfortunately somebody did this instead of that it didn't pass, we have passed a budget before that cut 7.4 trillion dollars, in spending over 10 years in the house. the problem is we have to get our other partners in government to be willing to do kind of entitlement reform we
are willing to do. maria: why people are surprised at you, because you have been this entitlement -- one person deficit hawk for years and you mentioned, running the budget but you don't look like you are. based on this budget. >> this -- >> this is discretionary spending. maria: you mentioned discretionary you are a big boost to abstinence education, seven, health centers child care grants more than disaster relief. >> that is true this is. >> did you have to agree to that stuff 20 get the military money. >> we had to give and get do domestic spending democrats wanted to dealt defense spending got a lot of spending cuts we wanted they didn't want a you you bipartisan compromise you don't get everything you want what i simply say look what the house has already proven our ability to do, on entitlements. we have passed every year since we have been in majority, every term big entitlement savings, the problem we have is we can't get these through senate our health care bill people look
at it repeal and replace that was normal entitlement tax reform bill for medicaid obamacare, we passed out of the house, we couldn't get it through senate yeah, we have got more to do, on entitlements on mandatory spending we added more medicaid means testing this bill so we think making progress on that but what we have to make sure is we don't hollow out our military. >> right. >> there is a serious problem with our military that needed addressing so sure, when getting a bipartisan compromise sometimes spending you have to accept get what you need in order to do that our priority was a getting the military the budget they needed. >> now in a different environment into you you passed tax legislation, and now we are seeing economic growth, with economic growth has come inflation, higher wages is coming perhaps higher interest rates, and now in your face, in terms of how much you are going to spend on the debt, so 50 billion dollars additional a year just on interest. >> no two ways we had to go mandatory core inflation pce 1.52 right now i don't think we have inflation getting out
of gates. >> interest rates moving higher markets trading wild as a result. >> should be normal lieding fed has been carrying all the water we have been doing the fed with loose easy money many years since recession we had horrible fiscal policy overration higher taxes what are we doing now? we are getting regulatory relief tax reform long time in coming, so now, the fiscal policy authorities are taking over, the work of getting growth in the economy, so that the monetary policy authorities don't have to do that we can start inordinatelilizing interest rates we want rates being normalized i think going through that transition right now, but at the end of the day, on same old guy same old thing in house, we've got to have entitlement reform that is why we keep pushing for health care reform that is why we petition for spiement entitlement reform. >> you are not making changes in election air op-ed in journal income transfers medicaid medicaid social security food stamps among other things coy 47.7% outlays
in 89, today 69. % outlays doesn't include net interest only det another 7 1/2. >> deficits that you saw from interest mulvaney's budget central deficits before the agreement baby boomers retiring not ready for them a struck deficit because of entitlement spending biggest driv health care entitlements one of the casualty bill not passing not getting health care entitlement reform we've got to reform health care entitlements never give up on he traemg health care if you reformer health care you take care of the central drivers of our debt medicare medicaid. >> graham cassidy repeal bill almost passed senate one area president has said this is maybe should be focus we are going to try this again this year? >> i think a lot of 2450i7ks we can he do, first of all, in this bill we passed we got medicaid means testing repealed i-- got rid of
obamacare slush funds repealed individual mandate in tax bill incremental gains when we realized couldn't get done in one fell swoop house bill didn't pass. >>t. >> or what expectations, we are talking about trillion-dollar he defendants for 10 years then after a decade -- >> for. >> exactly, exactly, my -- going to be two trillion dollars after a decade. >> so because of demographics not the military if we can get -- abolish pentagon would still have deficit we don't want to sacrifice military focus on drivers of the debt entitlements that is why, really the health care entitlements, quite frankly, social security is part of a solvency problem they have a solvency problem nothing like health care entitlements we can never give up health care tax reform key driver of debt in the future demographically given combination of demographics health care inflation fix health care you
fix debt crisis. >> you are saying have to get arms on health care efforts to get costs down not enough for markets the markets may push your hand, we're seeing thousand points decline nervousness. >> we passed this in house already we have done this in the house we have not been able to get these bills passed in the senate, or over the finish line. >> what do you do. >> what is the realistic stru solution in house bill repeal repeal one guy in senate did this instead of that, that went down, that would have been the biggest entitlement tax reform bill passed by congress we are going back and doing it incrementally going back at incremental health care a tax reform entitlement reforms to chip away at this problem that is what we i think the best chance we have, is going after incremental entitlement tax reform since senate couldn't pass it. >> what about things on fringe discretionary spending you know the cuts, we were talking about marc short he said look
we had a lot of cuts last year we sent to congress they basically threw in it trash he joined me a minute ago here is what he said roll that sound bite his reaction. >> we are waiting on that, he basically he basically says we gave them the cuts and they threw in it the trash are you actually going to take recommendations from this budget actually make cuts. >> we are al take presidents boijz very seriously congress writings its open budget we have spending caps, we spend to spending caps the challenge was, the sequester started picking in getting military really under duress we had to save the military, this budget was extremely important, you know threats we have in this country in this world we have yies isis rise of china rush flaresh assessor threats military under duress 80 people dying in training accidents almost four time as many died in combat in military serious we don't want
it hostage we want to get mill m it will what they need working on entitlement tax reform budgets in house we passed bills tloowe are there marker partners government can help finish this. >> do you think you will have an actual entitlement tax reform package in place this year? >> i can't answer the question -- >> i thought would have one last year. >> election year. >> i think there are things we can do, if we can get to root because inflation do things that are good for health care tax reform bring down cost of health care that hesitate the federal budget, the challenge is, we got a 90% increase retirement population 19% increase working population we have a demographic challenge combine that with fact health care costs rise faster than inflation -- programs so we have to fix health care if willing to get away from debt crisis does that mean sacrifice your military meantime. >> no, it means, builted your military build military grow compromise i the reason coming on here talk about how well
tax reform is working the bonuses occurring the faster economic growth capital expenditures higher living stands caution of tax reform, but over the long term horizon we've got to get this debt into control only way to do that entitlement tax reform that is why never going to give up on entitlement tax reform. >> we hope not a crux of the problem we realize growth in spending is. >> talking to speaker of the house or house already passed these bills the point i am trying to make. >> i am trying to make point we are shocked at you people saying this is a deficit hawk guy we have been counting on to come up with some plans and solutions for these companies. >> house passed these bills, but john mccain said no instead of yes, we couldn't get that passed in the senate. >> i know gave it a themselves do a thumbsdown. >> knew questions about tax cut i have been all-in on tax cut plan motives kneeled on economic froth a different environment for business there are questions with trillion-dollar deficits do we need all the similar lues in a
economy growing now. >> i get a kick out of this keynesian argument we are not keynesian we don't buy keynesian prem premise engine if we trade people would say all capital that would be locked up overseas, and spent overseas. because of tax reform you have a massive amount repatriation because of tax reform you are not going to see inversions because of tax reform you are seeing full direct investment into this country, tim took putting 20,000 jobs in america because of tax reform. we had the worst tax code industrialized world of before tax reform now we have one of the best either tax codes in industrialized world because of tax reform the basics of economic growth we put in place serious pro-growth policy, higher living standards more jobs higher wages good for a everybody people are getting wage drees bonuses tax cuts, 90% american workers in this month by the end of the month see bigger
paychecks withholding tables down. >> peps co, pepsico yu hull metlife last 24 hours. >> nancy pelosi calls it accruals. >> my point imagine if we didn't do this what you would say imagine what would happen to ushfirms if we had not done this this is nothing but good news, it is extremely good news, and so we're knocking down challenges getting these things done we have bone regulatory relief doing tax reform in middle of negotiating immigration, we are going work on skills gap getting people from welfare to work to get people skills they need to get in labor force, and, yes, we are never going to give up on entitlement tax reform because that at the end of the day is what will get us out of debt. >> the communicating of this is -- is not resonating with everybody other said saying am go aheadon worse i have seen this is crumbs. >> rhetoric over top i don't think people know what to believe g us what good news the law occurred reality setting in people are opening
up checks they are seeing bonuses from employers a raise in minimum wages that is real occurring, by the way, growth, we are seeing economic growth getting on this secular stagnation era this loose monetary policy tight regulations, and basically wage stagnation now getting into real growth, real wage growth, real take-home pay, that is exciting that is good, and i can't imagine where one would be against that. >> are we talking about predictions that are too rosy yes now talking 4% growth for 2018 fact of numbers but in the budget, we have expectations of 3% growth for 10 years what if recession happens nowe how do you know 3% growth 10 years. >> north of three -- our average growth rate had a 3 handle a 2 handle on it case of i would say bad obama economics labor force was we want to focus on labor three fiscal policies, regulatory relief well under way on that.
>> -- >> tax reform, labor supply, so that is why we are going to be focusing this year on what we call human capital getting people from welfare to work to career technical education skills get good jobs careers that to me next thing we do better labor supply people going from welfare to work, then we are going to have that sustainable average higher than 3% growth. >> i want to come back to that i think that is partly cloudy the immigration story with all good things that you just outlined we are still looking at a decline in revenue for the u.s. government mick mulvaney k admits trillion-dollar deficits getting a decline because of tax cuts how do you push back on this. >> we will see what that looks like i have seen so many stilts estimates on this i know if we had 234089 done this more of and more firms inverting leaving the country we would have had much, much slower economic growth as a result of tax reform resetting taxes working on pretty much adult life i really believe we are
setting ours for a growth period. >> is this going to be enough for you to keep the house come november. >> i think if we had not passed this it would have been very, very difficult i this i because we passed this because we kept our word, and people are seeing that with a we're doing is actually improving their lives, they are seeing the other side is offering nothing but you know crumbs, and resist all this stuff i think we are keeping the house. >> are you going to stick around in order to see the proof of your labor because the rumblings are you are going to -- hopefully keep house then resign step down after november. >> my wife and i had that conversation, and spring of election we are we haven't had that will figure out then. >> not sure if you are staying. >> i haven't -- it is something i do every term this is tenth term in congress 20 years jan and have i a cycle decision process we go through come that is something we are going to do the every term down the ride feel good where we are proud of the work we have done i really think put not just house republicans in good position i think the country in a good position, we
are deregular lateing rebuilding military in serious need working on immigration problem fixed, getting human capital genetic people skills, getting people from welfare to work, a pretty good two year stretch. >> you have done a lot i think you have done a lot do you feel of you have a reliable partner in the white house. >> i do. >> because the story line that i hear a lot from congressmen or senators they say we are working on one thing, and all in on that one thing whether tax reform or something else then the president tweets something says something all of a sudden media the focus changes. >> but -- i hear that we tell members for get about white noise whatever they are doing on tv no offense just focus on doing our jo about. >> what do you need to do to get daca deal done. >> i think -- >> what do you want. >> i this i the president put a very sincere serious offer on the table it was well balanced -- put what was really a good faith evident on table something encapsulates
four pillars i think can get passed senate getting started we are going to get started having conversations with members right now this week, we will seal what the senate can produce we are going to work on it ourselves in house, but if we stick with, the kind of outline the president talked about then i can we can get a good deal. >>
get a to see the. >> you you is too. >> congratulations for getting a lot -- o done we will watch get entitlements tax reform bill front and center what everybody is complaining about we will be watching. >> talking about it for years. >> i know you have speaker paul ryan there. we'll be right back.
maria: now there is another one pepsico latest to reward employees following historic tax overhaul nicole petallides watching stocks on floor. >> good morning, maria. we are seeing futures to the done sided, after two days of gains dow gained over 3% best move for the dow, in for two days, since summer of 2016, take a look, by the way, 2050
year-end target s&p 500 goldman sachs, pepsi this morning we are hearing from the call as well the stock is down one percent, and -- beverage business in north america they tried to talk about, the volume trends improving, for pepsi mountain dew gatorade they saw sales fall they did have, good news there, in snacks, amazon, talking about hundreds of jobs being over in seattle, stocks up one quarter 1% over 52 weeks up 66% big picture i are trying to weed out low performing employees have thousands jobs available cross-country seattle saying trying to sift out some lower upcoming employees and last year they actually saw workforce soar to 566,000 a winner we know on a growth trend, and moving into one business after another, and today, you see it up a quarter of 1% maria.
maria: to wall street from wall street to silicon valley thank you apple seem to have made a rare stumble iphone and slow sales what is next that is a big question at annual shareholders meeting in in coordinate tino california this morning at meeting cupertino congressional. >> good morning investors should start showing up at about three hours all eyes are on apple ceo tim cook investors looking for answers as to where the company is headed what to expect, in the future, you know here is explanation about some of the hiccups over the past few munlz, meeting comes at critical time for apple, coming off heels of some challenges, as you mentioned most and have device lukewarm demand for iphone 10 flagship home debut skipped crucially sales season analysts optimistic about apple's plans 350 million iphones ready for
upgraded next nine months, that could push new users to that 1 thousand dollar device services, for being could hit 50 billion by 2020 with an item apple do you want want the talk about proposed by one investor will call for a vote on creation of a human rights committee to address censorship apple asked sec to skip this topic, saying it goes against its rule on ordinary business, but the sec rejected saying company doesn't explain why censorship would not raise a significant issue analysts couple apple to give investors idea how they are going to spend that 200 billion dollars that they are bringing back from overseas, the big question will be will tim cook use some of that cash to launch its video streaming service joining competitor like netflix deni amazon. >> thanks so much in silicon valley we will we watching i got my iphone x.
>> and shoes on running. >> have steve jobs the old new balance shoes from steve jobs theatre at headquarters. >> turtle neck -- >> you know, these are actually much more functional than you are new iphone. >> very true. >> they are predictable. >> a new direction for the space race wait till you here retired u.s. naut isolate kelly weighs in on trump administration plan to privatization international space station next, he will join us live. ♪ ♪ ♪ no, please, please, oh! ♪ (shrieks in terror) (heavy breathing and snorting) no, no. the running of the bulldogs?
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privatize international space station end funding by 2025 next guess nose about iss spent a year on border joining us right now retired naut u.s. navy captain scott kelly thanks for joining is. >> good to see you -- >> your take on privatization of the international space station what do you think about that. >> unclear exactly what that means, the -- you know the president the administration, didn't really put out specifics other than we are talking about privatizing space station i think generally means to a lot of people is that you would kind of turn the keys over to the of the fast to outside organization which i -- personally don't think is very practical. >> captain, can that even be done? because kevin kelley here what is the things that with international space station you have other countries going up there, like, is it even feasible possible that we
could do something like this because we have russians up there, it seems like this cooperative a bunch of countries are actually working together, on something, for the betterment of man campaigned as opposed to constantly fighting in middle east. >> certain aspects we can, we already do. you know we turn some of the payload operations over to commercial organizations. we have turned the resupply of the space station over to two companies spacex, and orbital atk, on the u.s. side of the space station this notion that you can just turn the most complicated vehicle we have ever built that was built based on international partnership is -- you know -- i don't think is really possible. i mean keep in mind this is the most complicated thing we have ever built. it would be kind of like if you took like the crew of a --
a cruise liner perhaps said okay you are going to start operating a u.s. aircraft he carrier. it is not something that seems at all very practical to me. >> good morning my son and four yield wants to be astronaut you are a huge hero in my house having said that we spent 100 billion dollars on this national space station since 90s we have international partners, us leaving this how would that impact our international partners? people around the world? >> yeah, it would have impact, certainly, and we are in this you know program based on international agreements it is one of the greatest things about the space station we are able to do this cutting edge science with international partnership in common ground. and it was very expensive to build and we're getting to the point where we can utilize it do great science, and you know realize the importance of this
space station, for future exploration goals and to say and i am not sure the administration is saying this, i didn't read this anywhere but to say you could just basically turn the whole thing over to a company and walk away -- is -- i think it is kind of a misplaced idea for many reasons. maria: isn't it -- >> captain i want to know it private sector that is at forefront of this nay space exploration jeff bezos elon musk and is ap, last week spacex launched falcon heavy rocket fanfare as many a tesla on rocket what is wrong with the private sector owning international space station. >> i am no the saying anything wrong with it utilities he i am not sure taking on operation maintenance 1.1 billion dollars a year, transportation costs for crew and cargo. another 1.5 billion. government can do this k50i7d
kind of research investment we can this can long term. >> down the road? >> yeah, a corporate board or at the end of ceo is not going to like having to you know write a 2.5 planned check has maybe a return 10 years later. >> captain if you look at i mean if you look at, we would have never gotten here if corporate board of spacex didn't get over a bunch of their msnbc fortunat-- misfortu was in shock and awe. when i saw boosters. >> i thought it was incredible a game-changer spacex is different because run by basically one very clever guy elon musk he can make decision, and do things, that you know traditional companies might not be able to do.
but i was very impressed with you know the falcon 9 heavy i thought i just thought it was great, very exciting. but, again, i know going back to the space station it is a very, very complicated piece of hardware i think any company that took that over, if you could find someone that would be willing to spend 2.5 billion dollars a year just to keep the lights on, you know they would immediately be looking back to the nasa say you got to help operate this this is just so incredibly complicated i think unless you worked on it or if you lived on it you really don't get the idea of sophistication of the facility walking away from you know 100-billion-dollar investment i don't think is ever a good idea. >> we leave it there captain good to see you thanks so much. >> thank you. >> scot kelly. >> final thoughts from all-star panel back in a minute.
>> my wife and i had that conversation in the spring of election year vjt had that yet. >> so you're not sure that's what you're saying. >> it's something i do every term. i've been in congress 20 years so jen and i have a decision so come filing every tomorrow down the road i feel really good where we are. i'm proud of the work we've done and i think we've put the house republican this a good position but i think we put the country in a good position. >> part of any exclusive conversation weigh withing in on the future his future, that
didn't sound like he was all in on saying that. >> he got tax reform done and that he passed that sthat gave the big thumbs down to, but right because of a republican now he should just -- high trail -- >> kefn, aaron good to see you varney picks it up from here. >> thank you very much indeed friday and monday the dow u up 750 point. that's great. well it is tuesday. now what? good morning everyone. caution, the sharp up and town movements have not gone away. having said that, look at that. indications are that we open lower all across the board. but this is hardly a major selloff. the dow starts today from this have about 2,000 point e-below the all time high. i have another caution as we always do we have no idea where we'll end the day. got it? the back drop today massive stimulus for the economy it is going to get i felt exare tray juice this year. but