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tv   Countdown to the Closing Bell With Liz Claman  FOX Business  March 13, 2018 3:00pm-4:00pm EDT

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the president in san diego looking at prototypes for his long-promised wall. liz claman, i'm sending it your way with a market down about 100 points, sure hoping you can get it to recover. what are the odds of that? liz: a live picture of marine one, landed the brown min pal airport. 1.5 miles north of the border of mexico. there you see president donald trump exiting marine one, he will head to a caravan, and that caravan will make the way to otay mesa, right on the border with mexico there. he is set to view the eight border wall prototypes in this hour, in about 19 minutes, but it is the shocking dismissal by twitter of secretary of state rex tillerson that has tongues wagging in the capitol and
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across the nation. we will take you drive to the border story as soon as he makes his way there. rex tillerson made the official statement over half hour ago and it was quite stunning. first thing it did was reveal the fact he was informed of his dismissal by the president and chief of staff john kelly at noon, not before then at all. this just hours after the president made it known over twitter, favorite social media tool, this is firing by twitter. state department exceeded all expectations with regard to north korea, but he took a chance and slammed russia upon his departure. listen to what he said. >> much work remains to respond to the troubling behavior and actions is on the part of the russian government. russia must assess how it's actions are in the best interest of the people and the world more broadly. continuing on current trajectory is likely to lead to
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greater isolation on their part. the situation which is not in anyone's interest. liz: give you a little of the back story. last night rex tillerson slammed the russians and then people are saying that maybe that had to do with some of his firing. others are saying the president never gelled with him in the first place. there you see the leader of the senate right after that, weighing in, in just the last hour. senate majority leader mitch mcconnell hoping mike pompeo and gina hastell will be secretary of state. calling them both extremely well qualified. senate minority leader called him soft on russia and said he will not make immediate judgments on mike pompeo or the candidate to replace mike pompeo. on wall street, you can see, this is interesting, stocks
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jumped high right out of the gate. lurking into the session lows, financials and technologies are weighing on the broader market. let's take a look what's specifically moving in this hour, already at a near ten-year low, ge is the worst dow performer, down 4.25% after jpmorgan decided to file on after what we at "countdown" call a captain obvious call. ge is not a safety stock in this volatile market. ge hasn't been a safety stock for quite some time, but jpmorgan slashed price target to $11 a share from $14 rchlt that happened to be jpmorgan's third price cut alone. terrible 2018 for ge, the worst dow performer with a loss of 15%. less than 2 1/2 months.
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need to look at qualcomm, tumbling to the bottom of the s&p 500, losing five full percentage points after president trump's stunning late night move to block singapore based broadcom's $117 billion buyout bid. the hookup would have been the biggest deal in technology ever but the president halted it reportedly for national security reasons. qualcomm hitting lowest level since broadcom announced the hostile takeover bid in november and call it three quarters of a percent lower for broadcom after being higher all day. a slew of analysts say don't worry, the chip giant will set its sights on a different giant. this is tape, brad, or is this live right now? this literally was 2 1/2 minutes ago where the president got off of marine one at the
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brown municipal airport. california-mexico border to inspect all the border prototypes. hillary you are there where he will show up. you're in miramar, he left there, what can you expect from the president in this hour? reporter: well, we're seeing a lot of ramped-up rhetoric from administration officials making it very clear that even though they are landed, feet on the ground, their immigration talk is not going to get -- more passive being here in fact, it's getting more aggressive. white house official briefing air force one making the economic case for the border wall saying illegal immigration costs the country about $100 billion when you combine the costs incurred from drugs, crime, education and social services. the message from the white house is how you can afford not to secure the border, not to build the wall. now this is president trump's
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first visit to the golden state and we are seeing a lot of protests surrounding the border on both the california side, but also on the mexican side as well. one group in mexico is marching from a local college there all the way to the tijuana border to protest president trump's visit. president trump's tough talk tougher on the grounds here. white house official saying sanctuary cities are a major threat to national security. tying those policies to september 11th, saying that the hijackers in 9/11 had visa issues and he said that those sanctuary city policies could set the environment to lead the way to another similar attacks. so the administration making it clear though they are in california, they're not backing down from the immigration fight and have every intention to make it clear that they're going to stick this out and make sure that california is abiding by federal immigration law on the ground. liz? liz: okay, we're watching that.
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i want to show video of where he's going. prototype wall. this is a small town called otay mesa. there are eight prototypes put together been 30 days. all kinds of rules to put the prototypes together. they had to be put together within 30 days by competing companies. each one is about 30 feet high but have to be six feet deep to face the anti-digging but also the anti-climbing and breaching capabilities. safe for the border patrol, each one is different, some are porous where you can see them, some are solid walls some, have color, and the president will take a tour of this, supposed to happen in, let me do the math, 16 minutes. he will look at each one. he may very well make the decision sometime today. that's what we're told. he has to look at details. he's a builder, this is his bailiwick.
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we're going to be watching his reaction and how he looks at it, each step of the way. cameras will be live so you got to stay with us. seven minutes past the hour. when you look at stock and hour they're doing right now, what you are seeing has little to do with the wall or the abrupt firing of secretary of state rex tillerson. could it be something way less headline grabbing? like the february consumer price index, the cpi. up 2/10 percent, that is perfectly in line with expectations and what it does psychologically, it did early this morning, ease fears that inflation is running hotter and hotter. it's not, and when it does run hot, that rattles the markets. the markets are rattled, down 124 points. inflation might not be near a full gallup but the smart money is hedging portfolios to prepare for what it does start rising. let's bring in traders to the
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floor show, where are you seeing the money flows, john corpina, start with you? >> when you see the headlines talk about the trade wars and inflation fear. i think the immediate reaction is to go back to the basics, step away from the u.s. equity market and seeing money flowing out of the industrials, out of energies and moving into hard commodities. we see it going into oil and gold. when i said back to basics, that's the text line fear gauge. you move out of equities, move into gold. that's the save haven. on your lead-in you were talking about ge being a safe haven stock. we moved away from that and gold is where it's at. oil has found a tight range, that's securing a base there, and gold seen it bounce off the three-month lows to $1306, if you look at where investors feel safe, confident, where markets are volatile as they have and headlines continually
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moving our markets, it's in gold. liz: phil, do you agree with that, you are watching the energy flows and the energy companies and not just the hard asset of oil or soft, liquid, where do you see the flows going in and even out at this moment? >> we have seen renewed flows in the commodities. rogers long only index fund, a big jump since the beginning of the year. the crp, commodity index, we have seen the flow, the one of the best inflation hedges from the big money players is real estate right now. real estate was a big part of the slowdown of the financial crisis, real estate prices stagnated and a lot of money go back into that. it's from an investment viewpoint if we get into inflationary -- liz: we just showed the shares u.s. real estate etf, ticker
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symbol, iyr. year to date, you can see it's reflecting that. >> right, absolutely. and i think it only stands a reason. this market got way overheated during the financial crisis. it collapsed. finding footing right now and if you're worried about inflation, every inflationary cycle in history real estate has held value almost better than any other sector, even gold and commodities. liz: larry, we're hitting session lose right now. what are your observations of where the faster trading money is going at this moment? >> yeah, well, market momentum continues to be stretched, favoring cyclical issues versus defensives. that's not a new story. cyclicals have outperformed defensive 13% last year, 10% the year before but it's happening in a big way right now as we speak. and it seems like sentiment is
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matching momentum, in that people are taking u side growth for granted, inflation for granted. i tend to think we're not going to see inflation, we have a better chance of seeing a recession with decreasing as opposed to increasing. that's what i'm seeing, a huge, huge inflow of cyclical versus defensive issues. liz: nobody said tips. treasuring and securities. great to see you guys, john, phil, larry, we appreciate it. we are 48 minutes before the closing bell rings. job openings piling up at the white house. gary cohn's job, top economic job for the president, up for grabs, but friends of the lead candidate are warning him if he takes it, he's making a deal with the devil? charlie gasparino is about to break that story, straight ahead. and picking prototypes. president trump about to arrive at the border wall prototype location. he'll be narrowing down those
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eight choices to just one. "countdown" coming right back. we're live and waiting for the president. dow is down 140 points. nah. not gonna happen.
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location of the eight border wall prototypes. this is a picture of san diego, you see some protesters but more officers and protection there and what they have been given as far as parameters are concerned, no glass bottles, obviously, no weapons of any kind but nothing at all that you can bring to the location that could perhaps be thrown in any way, shape, or form, but we're also hearing that the media far outnumber the protesters who are on both sides. some are supportive of the wall, some are against it. more media than all of them put together. this as the administration looks to fill multiple positions back in washington, d.c., including gary cohn's seat as head of the national economic council. the white house has its eyes trained on a former wall streeter turned tv personality, not that guy, that's gary cohn but larry kudlow, kudlow critical of the president's positions on trade including
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tariffs on steel and aluminum saying -- the black hats won this time around and i'm very sorry because it will damage the economy. charlie gasparino, is it a one-man race with a globalist who is against the tariffs? >> no, a bunch of other names. chris laddel, the gm executive, kevin hassett, another economic adviser for the president. mick mulvaney, the budget director, david malpass, i believe he's at the fed. liz: used to work at bear stearns. >> where is david now? at the fed? liz: he had his company. >> he's in the administration, isn't he? liz: he may have joined them. >> doug, a longtime economist in republican circles. liz: right, served with mccain. >> right, i know that larry
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spoke with the president yesterday, they had a very good conversation, and as i said yesterday, i believe it was on charles payne's show, on cavuto's show with charles payne co-hosting, larry is starting to loosen up and warm up to the president's protectionist position, you can see it in tweets and writings, and it's somewhat baffling. he obviously wants the job, he's soft pedaling a lot of the tariff stuff saying, well, looks like the tariffs are not so onerous, he's telling friends it looks like trumps are backing away from the low level tariffs. liz: what are friends telling him? >> be careful with the job. a lot of friends tell him not to take it. larry doesn't know trump very well. and donald trump is not a lineal thinker. he's a circular thinker and a lot of it is instinct and it's at the moment and not well thought-out.
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so he may be -- liz: and it changes. >> he may say okay, larry if you have a differing opinion on tariffs right now, but he may change his mind in a week from now. that could make for a humiliating exit. listen, rex tillerson was kind of humiliated today. liz: yeah, he came out and said, hey, i found out at noon. >> through a tweet. remember that, that's what friends are telling him. liz: president is just arriving at the border wall location, otay mesa where he will be, of course, touring the eight prototypes. >> and i can't imagine that larry kudlow, knowing the type of guy he is, a libertarian conservative, is in favor of walls. thinks this wall is a good deal, from an economic standpoint. that's another thing he's going to have to suck up. friends are saying being prepared to suck up a lot, if you want to do this. i know larry really well. larry battled alcohol and drug addiction, she an amazing guy. liz: delightful.
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so nice. >> because of that, he's optimistic all the time. because he got his life back, his marriage back, the whole thing. amazing success story. so he thinks, he's so optimistic he thinks he can talk trump off the ledge or change his mind or get him to soften his rough edges on the economy and protectionism. i doubt that. here's one thing we should look at tomorrow, the pa race, the pennsylvania runoff. liz: yeah, tonight. >> connor versus rick saccone, the republican. the democrats picked up that, trying to time putting larry out there, naming the nec chief or whoever, looks like it's larry right now. tomorrow to sort of one-up the headline on this. this is going to be pretty bad. if the republicans lose this seat, lot of people saying that foreshadows losing the house. what happens if they lose the house? guess what? donald trump is going to be roasted by democrats who control to all the investigative committees.
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that is going to make his life, if you think robert mueller is bad, these democratic guys, and their staff that run these committees with subpoena power are going to be toasting him on a daily basis. and you know larry kudlow should understand that if he's going in there, that there's a chance he's going into the lines. i covered washington, the washington-wall street nexus for a long time. some of my best stories came from democratic congressmen and their staffers who are leaking stuff because they have subpoena power. remember, this is going to be -- and this is tomorrow, so listen. the markets could trend down on connor lamb. trump thinks he's better looking than connor lamb. liz: did he say that? >> some of it is this race, it foreshadows democrats taking control of the committees and more unrest. larry kudlow gets appointed nec
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chief, definite a positive for the market. liz: we still don't know. could be rick saccone. >> they might appoint my friend doug. liz: it is a surprise. donald trump is known to surprise people. thank you very much, charlie. so as we watch this picture. this is otay mesa, just south of san diego, and it is the area right on the border where the prototypes stand. there are eight of them, made by a host of different companies. they're the cornerstone of donald trump's number one campaign promise to build the wall, with the closing bell 37 minutes away. johnson & johnson after reports it's in talks with an indian pharma company to license tuberculosis drug. and there you can see j&j, close to the top, behind united health group. credit suisse has the midas touch after initiating
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coverage. food locker, kohls while gap and macy's among the leaders of the s&p 500 today. so we're going to go back to president trump when we come back. he's about to tour the eight border wall prototypes. when we come back, we're going to speak to the chairman of one company uniquely positioned to benefit, but also to be hurt by the president's moves on tariffs and border security. lance fritz is the chairman, ceo and president of union pacific. he joins us in a fox business exclusive when we come back, don't go away.
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. liz: we take you to the border. president trump is now touring the prototypes of what he hopes will become his long promised border wall. and as we keep this shot up, our next guest is in a really fascinating position, his company is poised to be a big part of whichever wall is chosen, but that same company
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might be dinged by steel tariffs, just ordered by the president. lance fritz is the chairman, president and ceo of union pacific railroad. standing by in omaha, nebraska, joining us exclusively. lance, you guys are the only railroad that serves all six major rail gateways between the u.s. and mexico. let's get right to it. as we look at a map of your routes, if everybody looks south to texas, arizona, california, new mexico, you are watching the wall developments closely for profit to see how interchange traffic at the mexican border may seem. what are you seeing and expects? >> you are exactly right, liz, with the six border crossings, we enjoy about 70's of that cross border rail traffic. we see a healthy vibrant growing economy that continues to ship more outbound finished product, consume more inbound finished product and has created strong supply chain
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ties with u.s. manufacturers and producers. liz: so material transport is what i'm hearing. you guys in your boxcars and railroads would be moving all kinds of material, specifically what? and i know it depends which wall prototype is chosen. somewhere made of concrete, somewhere made of metal, steel, would that be helpful to you? is that what you transport and currently transport? >> yeah, so if you use the wall as an example of product, virtually everything that would go into the wall is something that can be shipped on union pacific. we ship all kinds of building material whether it's steel or rock or cement or aluminum, lumber, so we enjoy that kind of commerce and some of that, a fair amount of that goes back and forth across the border, in and out of mexico as well. liz: i want to talk about the security issue. you don't specific operate in mexico, but you do have partners in mexico and you do
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have transition locations on the border. you can talk about how putting up a gigantic wall that isn't porous, that nobody can get over, above or through, could affect your business? >> so let's talk about that. there are holes in the wall, of course, so that we can do commerce across the railroad, and those border crossings, the six that you mentioned earlier are safer than they've ever been. right now we're using technology that looks with gamma rays into the car, looks for contraband, looks for humans. we use cameras so that we get a 3-d image of every car that crosses the border. we have the ability for customs and border patrol agents to quarantine cars in safe locations and be in a safe area where they can spend concentrated time on inspection. likewise, you mentioned, we have a partner down south of the border, actually two, large mexican railroads. we happen to own 26% of one,
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and they do a great job on their own properties, making sure that their shipments are secure, and that they get to the border safely. liz: i'm very interested to hear your thoughts on the steel tariffs that the president just ordered. 25% tariffs on imported steel. i'm sure that you transport steel but locomotives are made of steel and rails have metal in them and i'm very, very interested for shareholders watching, people considering buying your stocks how you expect this to affect your company. hold on one second, lance, the president is speaking at the moment. let's listen in. >> what was it like until you built the wall, and the wall by the sway that wall up there, which is just sheet metal. but at least it works a little bit. how was it before you bit the wall? >> there was effectively no border in situation, it was a chaotic situation. this fence was made out of
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scrap metal that the military wasn't using, and we set in place to delineate -- >> you needed something. >> it changed our environment. we decreased the cross border traffic by 95% with the lights, roads and technology. >> they 95% with a scrap metal wall that they put together with excess material, and that wall they can get over easily. these walls they can't. but for the people that say no wall. if you didn't have walls over here, you wouldn't have a country, you wouldn't have a country. by the way, the state of california is begging us to build walls in certain areas. they don't tell you that. and we said we don't do it until we build the whole wall. there are certain areas where they are really wanting us to build a wall. people are complaining, people are pouring in. they don't talk about that. >> you have a preference here, sir? >> i do have a preference. the problem is you have to have
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see-through, have you know what's on the other side of the wall. the problem is you don't know what's on the other side of the wall. you could be two feet away from a criminal cartel and you don't know they're there. we have equipment to take care of that, x-ray equipment, et cetera. if you are on the other side of the wall, that's the hardest wall to scale. it has a lot of assets. tell me, what do you think about the importance of see through? >> i know what's approaching the border before it approaches. we have great enforcement on that side, i don't get the opportunity to get ahead of the threat. >> what's the danger of not having the see through? >> the steel metal fence, we learned from that. we cut in ports where we could see on the other side. smugglers were blocking our agents and would rush across the border quickly.
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>> if you have a fence, that's a fence, but coming up, the first thing i noticed, look how many holes are in the fence. they fixed the hole, they patch it with more fence. if you take a look at fence and it's a very powerful fence, not doing the trick because they cut holes in it and patching holes all the time. have you hundreds of holes cut in and patched. so the fence is not strong enough. it's not the right idea. but for those people, if you don't have a wall system, we're not going to have a country, there's a lot of problems in mexico, they have a lot of problems over there and they have the cartels, and the cartels, we're fighting the cartels hard. nobody ever fought them like we fought them. we fight them hard. fact is if you don't have a wall system it would be bedlam, i imagine. very hard to control. a combination of all of the above. >> you're looking at walls, we
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have some see through capability. if you don't have some see through, it's a problem. we'll take a look up here. liz: what you see on the right-hand side of the screen that we just had was the video of the wall that is perhaps to the right. we're going to recue that video so you can see and split the screen there. this is important, the border patrol agent with whom the president was speaking made it very clear that it is way more helpful to be able to see through a wall versus an entirely solid wall. if you have the solid -- there is the one on the left. that is the one where you can look through it but can't squeeze through it. he explained to the president, that's important so he can see who's amassing on the other side. if they try to rush the border or scatter, much harder for the border patrol agents to handle the situation. president is continuing to tour
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that and continue to have lance fritz from union pacific. give me your thoughts what you saw. as a ceo, as somebody who built large operations as well? >> liz, i'm fully understanding the need to have a fully secure country. i'm also very aware that security comes in many different forms. perhaps a wall is required in certain locations, hopefully as time progresses as we build really strong, stronger ties with mexico and canada, other security mechanisms can be put to use, like the continued development of the mexican economy. the continued improvement of safety and security in mexico. and the continued robust and rich multicultural environment that exists on the border. both in the united states and in mexico.
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liz: i need you to stay where you are, i want two more voices to come into the conversation here. we're joined by republican congressman from illinois rodney davis and california congressman john garamendi. congressman garamendi, this is your state, give me your gut reaction to what you're seeing. there is a huge long fence, it doesn't straddle the entire border because there are natural protections like the rio grande river, et cetera throughout the border. tell me your thoughts right now. >> we've had a fence in california for 30 years. there may be holes, it can be patched. it can be improved and undoubtedly approved again. it's been useful in the san diego area as well as the other side of that mountain over in imperial county. you have a lot of population and movement back and forth. no problem there. but to spend $20 billion? that's one full year of the total infrastructure proposal that trump has put on the
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table. and so no, that doesn't make sense, but in certain places, yes, definitely can and always looking for improvements. by the way, the 20% or 25% tariff on steel, going to make it a little more expensive. liz: yes, it will, congressman davis, and lance fritz is with us too of union pacific, he knows about the cost of steel. congressman davis, to you first. tariffs play in this situation especially if the one that is picked is that one that has the slats where border patrol agents can see to the other side. surely that is some type of metal. i will imagine steel is involved there. this is a positive-negative story, how do you see it? >> i agree with my colleague john here, there are parts of the southern border where we need a structure. you talk to local law enforcement, they're seeing heroin and ice come up through the border and devastate the rural community us that serve.
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when we talk about steel tariffs, the president has yet to lay out his final plan, what he's been able to do in central illinois, we had a steel manufacturing facility that shut down because of the illegal dumping of foreign subsidized steel from other countries. we wrote language to change the adjudication process to make it better, liz, but it wasn't doing enough to save 2,000 jobs in granite city, illinois. because of the president's plan, u.s. steel is reopening that plant in granite city, illinois. liz: that is fascinating. we have a reporter at that location, we're going to get to him in a minute. lance, with union pacific, you've got to tell me your position on steel tariffs. deutsche bank, it said ge is one of the most at-risk companies hurt by steel tariffs because in part the company produced heavy equipment including locomotives made of
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steel, you're in the locomotive and train business and rails are made of steel. how are you trying to game or figure out the tariffs at 25%? >> liz, there's a couple of impacts we're paying attention to. one is top line impact. what might happen to revenue. on the top line, it's difficult to tease out what the puts and takes are going to be. we can ship imported steel from the ports, we also enjoy shipping from domestic manufacturers. as a matter of fact, in the right mix, domestic manufacturing is better because we have the opportunity to ship raw inbound material. right now we think that looks like a wash. when it comes to the cost side, on the capital cost side, it certainly looks like a negative impact, unless we can get specific carveouts for the kind of steel that we are consuming directly in rail and that our suppliers consume and things as
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you point out, locomotives and freight cars. >> to my congressmen, you are on the house transportation committee, and congressman garamendi, i know you are on the infrastructure committee. this is considered federal infrastructure, is it not? and wouldn't it put californians to work? >> well, what purpose? what purpose and what's going to be gained. >> to keep the drug dealers out and murderers out. >> most of that is come tlouth oceans over the caribbean and across the pacific. so we need that money to go into the coast guard where it can be most effective dealing with that. you heard from the president of union pacific that on border crossings, there are very, very sophisticated devices that are able to detect not only drugs but all kinds of other contraband. that's a very successful thing. liz: hold on one second. let me interrupt. the president is speaking now, let's listen again. >> 90, 95%. when we put up the real wall, we're going to stop 99%.
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maybe more than that. this is what it is now with not a very good wall. here it is now and the people are pouring across. >> this is one of the sections where we have double fencing, it is outdated material but proved the concept. it serves the economic driver of this outlet wall built after we established law and order in the san diego sector. right behind that, 500 brand new homes where people felt so safe near the border, they drew back in. >> they reestablished law and in order san diego when they put up the wall. it's not a superior wall, it's an inferior wall. and you used the term reestablished law and order. >> yes, sir. >> you hear it folks. you can say what you want. this is life. these are the facts of life. that's incredible. that's incredible. and a part of san diego needs a
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wall, they want a wall very desperately, they're willing to do anything to get it. i said nope, approve the whole wall, california. we're not going to do little pieces that you want. approve the whole wall, you know the section i'm talking about. okay, folks, thank you. you get it? >> we're looking very much at the wall with some see-through capability on the other side and solid concrete on top or steel and concrete on top. round piece that you see here or clearly back there, the larger it is, the better it is because it's harder to get over the top. deterrent from getting over the top. who would think? who would think? but getting over the top is easy. these are professional mountain climbers, they are incredible climbers. they can't climb some of these walls, some of them we can. those are the ones we're not using. we've determined what to do, when we build, we're not
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saying, gee, i wish we did it a different way. but if you didn't have it, you would have a tremendous problem, and even the walls they have now are not holding out. they're not holding up. they're small, but they're really great compared to what they had before. stopped about 95%. >> can i point out, we're showing parts of the united states, there is equal benefits to mexico that you don't have all the activity on the south side of the fence, too. it's improved the border on both sides, not just ours. >> okay, folks. reporter: criticism from governor brown that some of the money may be better spent -- >> governor brown has done a poor job running california. the highest taxes in the united states. place is out of control. you have sanctuary cities where the criminals are living in the sanctuary cities and the mayor of oakland goes out and notified when i.c.e. is going into pick them up and many were criminals with criminal records and many were dangerous people,
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you would say dangerous people. i think the governor is doing a terrible job running the state of california. i have property in california, i will say. i don't think too much about my property anymore, but i have great property in california. the taxes are way, way out of whack, and people are going to start to move pretty soon. and if you don't have safety, meaning if you don't have this wall, the drugs are pouring through in california. can't do it. so the governor of california, nice guy, i think he's a nice guy, i knew him a long time ago, has not done the job and the taxes are double and triple what they should be, and everybody that lives in california, they know it. thank you very much, everybody. liz: president donald trump saying steel and concrete are real possibilities for the border wall. he appears not to make a specific decision right now about the eight prototypes he's just toured that would span hundreds of miles along the
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southern border between the u.s. and mexico. congressman rodney davis from illinois and congressman john garamendi from california and lance fritz of union pacific. congressman davis, i need to ask you something that is somewhat unrelated to that, the president halted last night a merger and, of course, we're a business network, this matters between broadcom which is singapore based chip company which is expected to come back to the united states, unbelievably san diego and wanted to buy qualcomm. it was a hostile takeover but the president said no for national security reasons. does that concern you at all, from the criticism that some people have that this is government overreach? >> i think the president has more information and his administration has more information than i do on the subject. we'll see the reasoning behind it and the american people can judge whether or not that was a correct decision. >> i can jump in here a second?
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liz: sure, go ahead. >> qualcomm is one of the fastest growing companies in the united states. >> it's in california. >> the president could not be wrong about california. the sixth biggest economy in the entire world. it is the economic engine for the future and the president doesn't know the land upon which he was standing has whittled with tunnels beneath it with the drug in this country. qualcomm is absolutely essential for national security. g-5 is based in qualcomm's future. liz: very quickly, lance, i want a ceo's opinion on the government deciding whether mergers can go through? >> yeah, it's hard for me to have an informed decision on the details of why this particular decision was the not allowed to go through. i fully support the administration and our government using cfius as a
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reasonable and appropriate way to evaluate foreign entities should buy outright control or control through jv's of critical assets. that is appropriate to have at our disposal and trust it was used appropriately in this situation. liz: lance fritz, congressman john garamendi and congressman rodney davis. hitting session lows. we have had a 400 point plus swing from top to bottom for the dow jones industrials. nicole, what is going on here? reporter: taking a look at dow jones industrial average which is down right now as you noted on session lows. what's interesting to me when i talk to the traders too, they know we have the volatility. the vix is right at the 17 level. so we expect that back and forth action. if you look at one side, quick to say there's chaos in the white house. when you look at big picture
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and the overall going forward, they feel optimistic in the long run. they like what's happening with the administration. we got in an inflation number this morning which only echoes what we've been seeing, the tepid inflation, the wage growth isn't as quick as expected, you're not going to see the rate hikes. you did have john corpina, the save haven of gold, that is certainly at play here, liz? liz: the nasdaq down 95 points. when we started, 50 minute ago, started the show, the low had been a loss of 70. so it's moving around here, now down 86. but looking at some of the leaders and laggards here, and they're all over the place, but it's very important to point out that tech is getting a wreck at the moment, the largest percentage loss leader down one full percentage point for the nasdaq. dow is down 191. we're watching the markets carefully. when we come back, much more on
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all of the breaking and developing news. stay tuned, don't go away.
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. liz: we can say this with 6 1/2 minutes left, the nasdaq better get going if it is going to have eight straight winninged sessions, doesn't look like it. down 75 points. josh, phil flynn and jeff flock joining us from exactly the location where congressman davis referenced, granite city, illinois where a brand-new steel operation is old but opening up once again ostensibly to the president's just announced tariffs. josh, you one month ago said watch out the s&p has dropped 10%, it has. now what you see in the crystal ball? >> could be fuzzy, long-term
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fundamentals are good, i'm still positive on the overall trump tax line. tonight see what happens in the pa18 election. what's going on with the paul and the tariffs that could be timed by trump to help a failing candidate. if you look at the democratic candidate, the republican candidate saccone was in trouble. i think this wall thing, the wall demonstration could be total political optics. i think they're going to go through the see-through wall, they're going to pick the see-through wall. liz: that's what the president learned from the border agent which brings me to you, jeff flock, and you are sort of at grand central station when it comes to revitalized steel situation in illinois, but just as josh referenced, pennsylvania, steel country, president trump won that state, but a democrat who's a former marine and served his country
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strongly. lots in the air as it pertains to where you are? . reporter: i tell you, i have never seen more optimism in the steel industry. i've been covering the steel industry 30, 35 years, that the blast furnace that they're going to start which is 500 jobs here. they feel like somebody cares about them, they know that perhaps some people might be hurt by this, might be backlash by foreign governments and may be a trade war, but finally feel that someone cared about them and that kind of goes a long way. liz: why do you think u.s. steel is down nearly 8% right now, just sell on the news, maybe? reporter: yeah, we were talking about that earlier, that they feel like the thought that it got overbought a little bit because we were talking about the tariffs so much, they just announced that their earnings, projections are increased, but, of course, that's largely tax bill as opposed to anything
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else. maybe it's built. in one analyst says it could double. it's around 40 right now, it could double to 80 they think if this gets traction. there's a lack of confidence that the tariffs would be as broad-based as suggested. there will be a lot of carveouts, maybe there won't be as much impact. liz: boy, it reminds you in a distance but echoy way of obamacare when the companies rushed to get waivers, maybe the countries are rushing to get waivers. josh, we have phil now, give me a sense where people are putting money. we are off the session lows. dow is down 174 but people need protection in portfolio. >> i think the biggest way is to protect one's self from the trump tax plan, one of the things we're seeing with clients is portfolio bunching, meaning with the higher increased standard deduction of 24,000, not many people are going to be able to itemize. with the markets, the markets are uncertain, you can look the
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bunching, you can look at maxing out your 401(k). qcd, the qualified charitable distribution, you also have retirement plans, people are also looking at creating llcs and s-corps. liz: oh, yes. >> the markets are uncertain right now but one of the things we covered is trust. there's going to be a huge boom in trust now because you can actually own real estate with truss and also, we're liking omnichannel retailers. i was just with my wife and insta-cart was a huge success and walmart. i think channel retailers would be doing well with that stuff. liz: physically, that said, we are looking at a dow jones industrials straddling 25,000. we are below it today. i don't like to look at the dow.
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that's why we have the nasdaq on the screen. way more companies. what sense are you getting from the trading floor of why we started off in the green strong and beautiful and now we're in the red. beautiful for the shorts but not so much for the bulls. >> i think it's a little bit of the political uncertainty, you know? i think at first, everybody looked at this rex tillerson firing. they didn't quite know what to make of it. but it creates that era of uncertainty. you have this election in pennsylvania, which is going to be very big in kind of a lot of traders are looking at this. is it bellwether for the donald trump agenda? and it's going to be a very tough race for him. and if donald trump, you know, republican wins tonight, that's going to be very positive, i think for the market. but i think a lot of that political uncertainty right now. liz: we're coming up two things. the closing bell, which is seconds away, and the president who is speaking right now. let's listen to the president for the moment. down on the border. trump: before we did it together with the media, frankly.
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i didn't know we were going to be doing that, but you're getting a far better glimpse than you're getting right now. but the border wall is truly our first line of defense, and it's probably if you think about it our first and last, other than the great ice agents and other people moving people out. it will save thousands and thousands of lives. save taxpayers hundreds of billions of dollars by reducing crime, drug flow, welfare fraud, and burdens on schools and hospitals. the wall will save hundreds of billions of dollars. many, many times what it's going to cost. we must also close the deadly loopholes exploited by smugglers and traffickers. and we're in that area. we're in one of the many areas along the border where we had that problem. and we have to confront the dangerous sanctuary cities, which you've been all hearing so much about. california's sanctuary policies put the entire nation at

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