tv Cavuto Coast to Coast FOX Business June 12, 2018 12:00pm-1:59pm EDT
now at a three-year high. jpmorganays, given price target now of $50 a share, it is up 6%. new high for weight watchers. get that in before i pitch to neil cavuto. jpmorgan says overweight inweig. really yours. neil: found that a tad rude. stuart: sorry, neil. neil: i will think of something tomorrow. thank you very much, stuart. we are following all these developments, including waiting for that big decision on at&t and time warner. everyone is still talking the day after about what happened yesterday in singapore, the fallout for stocks has been largely positive, particularly for foreign markets. it would have been very, very different, if one or both of these parties would have walked away from the talks. that was a fear that didn't materialize. now they're digging into the deal, what they have got going here. south koreans have investment interest from all of this. get a read from greg palkot, how
they're weighing it all. >> hey, neil. hearing from the office of the south korean president and reviews are generally positive. just after the summit wrapped up, we heard from the spokesperson. they welcomed success at summit. they offered congratulations offering president trump and north korean leader kim jong-un. historic event. south korean president moon had a lot to do with diplomatic run-up to the event. neil, there are some grumblings especially announcement by president trump they would suspend joint military exercises voluming u.s. and south korean forces here. incations we got on the ground from south korean government and military here on the peninsula, they got no advance word about this talking to military and strategic experts, they say the drills aremportant from symbolic and practical standpoint. they're hoping they are not gone forever. a few other concerns too. they like the sound of
denuclearization. they would have liked to see more detail. they like the idea that north korea is offering to get rid of another missile testing site but we've been reporting on that for a couple of days. no words as hoped for towards the end of that 65-year-old korean war. finally, finally, neil, we got out into seoul today. we talked to some people. obviously as you know they have a huge stake what is going on here. we talked to one person, said, face-to-face is good. another said, communications is crucial. we talked to one young lady. all i want is peace. south korea, north korea, on the korean peninsula. we can tell, neil, from our fox team been here multiple occasions the last 18 months, talking much better than fighting. back to you. neil: there is that, very good point my friend. palkot in seoul, south korea. leon panetta, former defense secretary under barack obama, former white house direct to, chief of staff under
bill clinton. i think he has done every job short of president of the united states. thank you, my friend. thank you for coming. nice to be with you, neil. neil: what do you make of the agreement, what we know of it right now,articularly of the fact that we offered to cool it on the joint military exercises we do with the south koreans? >> well, you know, i was asked before this happened, what is the best we could hope for, and because of the lack of time here to really fully prepare for the kind of complex negotiations that would be involved in this kind of agreement, i thought the best you could hope for is having a meeting of the principles, having them get to know each other andstablish a relationship, and then agree to intensive negotiations on the more complex issues that are going to be involved. and that is pretty much what we have. but i think it is important for us to remember that, it is largely words at this point and
that we have to look f actions, particularly from north korea. i was a little concerned that the president give away issue with regards to military exercises without getting so in return. i think that ought to be part and parcel of a more comprehensive agreement with regard to north korea. neil: so the denuclearization goal, which was stamped out in there the communique, that called for eventually ridding peninsula of nuclear weapons. i'm taking a leap here. that is the thrust of it. is it your sense becausehere is a, not a clear timetable, the definition, ours is sooner rather than later, the north koreans is later rather than sooner, without that addressedt? >> i think it is probably well for all of us to remember
ronald reagan's warning with regard to dealing with the russians, yeah, you trust but it has to be verifiable. frankly at this stage we have really no set of actions that the north koreans are committing to, certainly no inspection, no verification regime to insure that they're going to take steps necessary for denuclearization. 20 to 60 nuclear weapons.almost 're talking about 141 sites that actually produce these kinds of weapons. there is a huge number of issues here, that wou have to be considered and would have to involve the action of north korea, in order to insure that we really have something that will involve the denuclearization of north korea. we're not there yet. so i think it is probably well for everybody to maintain kind of a healthy sent -- skepticism.
neil: they are petitioning the united nations security council that sanctions be addressed and eventually dropped. what did you make of that? >> i don't, i don't think we ought to take any steps with regards to relief on sanctions until we see the steps that north korea is prepared take with regards to denuclearization. we shouldn't jump ahead here. that is why i was concerned about the president taking step with regard to exercises that he did. we ought not to give anything to north koa until we see what steps they're prepare to take. neil: wasn't that the rap against your former boss bill clinton, that heas giving away the store he is to this day
rued never personally getting opportunity when he had one to meet with the north korean leader at time of course, kim jong-un's father. what do you make of all that? >> the fact that they were able to come together and meet is important would have taken arrived at any meeting. that is important they looked eye-to-eye and tried to determine whether or not they could move forward. that is important step, again i think as we learned from the past, north korea will agree to take these steps you can't trust them what they need to fulfill. we need to be concerned about
whether or not north korea will stand by its word. neil: the one problem with the trust but verify thing. it is carrot-and-stick approach. if it looks like dismantling what agreement said the w do. getctions relief. get them on the path, get more aid and more sanctions relief. they can cheat after they, filled their wallets up a little bit or had the economic crisis past. how do y address something like that? how did you know for the time-being this is a, not a desperate das for cash? >> why i think something we really didn't do in the past, really establish a very strict, verification, inspection process to go anywhere anytime to make sure they are taking steps to
neil: isn't country almost always have an excuse not today, we can't see it today? all of sudden they can change the rules, sometimes years afte. as happened during president clinton's term? >> neil, you're absolutely right. and, that is why my approach to these things considering north korea is an adversary is you don't trust them. neil: yeah. >> so you have got to be able to verify. you have got to be able to inspect. you have to have people on the ground. you have to determine whether or not taking actions to denuclearization. if they begin to do that, have inspection and verification process in place, then and only then should you consider sanctions relief with regards to north korea. neil: the chinese and their role, what did you make of tha what did you make of wor on a separate level dealing with trade issues, with the chinese and we've held off so far on formal tariffs, threatened them.
certainly, that is still out there, but, how do you think this administration is playing that? >> well, you know, i would be, i would be a lot more comfortable if i thought that the president and president xi were really having a set of communications with regards to differences with china. my experience it is really worth continuing to have a dialogue with the chinese. they are important to our economy. they are important to our relationships in the world. they are important to trade. this is not a country we shouldn't kick them around without having a strategy to deal with them moving forward. i know we've been kicking them around. i'm not sure we have a sategy how ultimately we'll be able to
resolve our differences and that concerns me. neil: i would curious how you feel. talking to barack obama or with bill clinton, with the constant comparison this president continues to as to the progress he is making. mistakes he is avoiding, versus lack ofess your old boss has had and problems that they encountered. that it's a frequent theme of his. i'm getting it done, they didn't? >> well, frankly i think i'm still waiting for president trump to get it done. he is taking, he has torn a lot of things he has gotten of our position on climate change, on ttp, on tariffs. he is moved to impose tariffs. he has moved to, to you know, i haven't seen strategy to
actually get things done. he operates by chaos. and i understand that. a certain amount of tactical chaos is, is good strategy. but, strategic chaos can be very dangerous. right now i'm still waiting for president trump to actually deliver on all o the things he is working on to show that he can actually make the deal happen. i haven't seen that yet. neil: are you surprised that either bill clinton or the for that matter barack obama have not either taken the bait or, so far resisted the temptation to comment on the president's comments to their administrations, and what they did or didn't do? >> i think, i think that is the smart thing to do, is to, frankly ignore those kinds of attacks. you know, they, they have their record. they stand by their record. it doesn't really serve the purposes of this country, in terms of moving forward, to have
some kind of debate about who better or who did the right thing or who did the wrong thing. i think mormportant thing is to focus on issues that we're dealing with today. and determine whether or not we can move in the right direction under this president. neil: something has changed though right. >> that is what is important right now. neil: i'm sorry. something changed. his poll numbers are a little bit. at his stage of presidency higher than barack obama's or bill clinton's, at this stage i should stress and this blue wave democrats are hoping might not materializing maybe owing to the economic improvement orts, who knows. do you think your colleagues in the democratic party got ahead of themselves, they have gotten too cocky, they are too cocky? >> it is always dangerous in politics to assume that somehow victory is inevitable. i think you got to keep working
at it. and i'm sure, that the candidates that are out there will continue to work at it. look, there are a lot of question marks here as i have said in terms of where we're going. these tariffs that the president has put in place. the relationships, with our allies, t that they're going to retaliate, all of that could impact on an economy that otherwise is doing pretty well. so there are a lot of people concerned about that. there are a lot of people concerned about what is going to happen with health care. there are a lot of people that are concerned about whether or not we'll continue to provide leadership in a very troubled world. there are a lot of issues out there. we'll see how they play out. the most important thing frankly for the candidates is to focus on where they're running and make sure that they are dealing with the issues that people care about. that is what is important. neil: stay humble. my dad said, neil, stay humble. in your case it will come in handy. maybe that is what they all need
to do. leon panetta, always an honor, thank you very much. >> nice to talk with you, neil. neil: same here. leon panetta, widely respected on both sides. that harkens back to a time both sides talked with one another. lee on fostered that. more afters. man: i got scar tissue there. same thing with any dent or dings on this truck. they all got a story about what happened to 'em. man 2: it was raining, there was only one way out. i could feel the barb wire was just digging into the paint. man: two bulls were fighting, (thud) bam hit the truck. try explaining that to yournsurance company. woman: another ding, another scratch. it'll just be another chapter in the story.
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>> welcome back to"cavuto: coas" i'm nicole petallides le on the floor of the new york stock exchange. it was historic, the meeting of usa and north korea and that summit has wrapped up in singapore and the markets are relatively muted in their reaction. in fact the dow up not even one/10 of 1%. we look at winners and losers on wall seet. when you ask traders how they feel about the summit on scale of one to 10, they will tell you a 10, however, they weren't expecting much to come out of it. so this is the just the beginning of this meeting, and whether or not there will be execution. that being said, defense stocks and aerospace stocks pulled back. as we make, talk with north ko raytheon, maker of tomahawk missile down 2.8%, northrop grumman down 1.3%. up with trader telling is buying on drip of lockheed martin and raytheon and
northrop grumman saying, northrop grumman was favorite of best balance sheet. general dynamics not picking that one up. we see this group in particular pulling back some. back to you, neil. neil: thank you, nicole. thank you very much. as nicole was talking rifling through some issues whether a trade deal is a hand or close to one, i'm sorry, military deal, peace deal, whatever you want to call it, security deal with the north koreans, if all sudden now you're talking about cutting back on joint military exercises with the south koreans, notingly defense and related issues go down. uncanny how that goes. market watchers keith fitz-gerald and david johnson all that. what do you think the markets are telling us post this initial talks stage? >> essentially it is reiterating the fact something like north korea and nuclear conflict is what we call a tail risk. it is highly unlikely yet severe
type situation and markets can't respond to it. they don't drop when they worry about nuclear war, how do you price something like that. consequently, neil, they can't rally on word of things potentially starting to look better. the markets have to price ty o fundamentals, federal reserve, things of that nature. so i'm not surprised we're not eing a rally on the news, it isn't type of news one way or the other that should provoke markets. at is a very good point. we should stress prior to these two coming together, president and kim jong-un, the markets had a nice run, about 1 1/2% on all major averages. we should put that in some context, having said that keith fitz-gerald, what are you making on what the markets fixated on? typically markets trade fundamentals. they get die -- gyrations on fear and war.
earnings good. economic activity, stronger right there. so you could make the argument that the fundamentals right now are sound, and that will provide a base for stocks here, or, or, has that already been factored in? >> you know, neil, i would take it one step further. i think traders price certainty into the markets. to the extent certainty is there, they have a green light to put their foot on the gas. they have a got light, good view into things you mentioned. when they get emotionally bound up like individual investors. that causes uncertainty. tail risk is very real. in the interim, you can't price for that. neil: david, it is interesting. the foregone conclusion, tomorrow the federal reserve will announce another quarte hike, that brings up around to the 2% level, on overnight lending bank level, which is big leap from near zero
we had. they might indicate more rate hikes to come? i don't know where you stand on that. spell it out. >> they will raise in december. fed futures markets pricing most of the year a very low probability has moved much higher. i think you get another quarter point at end of the year. i think that is a positive though. i don't think they are going to surprise markets anytime soon. the bigger issue, neil, about the tightening or what we're calling normalization. because you can hardly call a negative, real rate tightening. neil: you're right. >> it is moving process towards monetary normalization. the biggest issue, reduction of balance sheet. how quickly they are selling off assets, what that does to the overall yield curve. we think they're going at a snail's pace. they see positive growth in the market but not inflationary, that is good thing for equity investors. neil: keith, one thing i worry about, the more they raise short-term interest rates, say two-year note goes up a like amount.
10-year note is constant, getting close to being very even if not inverted. i know that in the past when that's happened it is not good. at very least, a slowdown, at the worst, a recession. i don't want to get ahead of myself, but what are you looking at? >> well, i think it is the speed of the normalization, neil, that is absolutely critical. the fed is telegraphing the slowest rate normalization in recorded history. they want to take measured steps. a lot of people think they are planning ahead, being very deliberate in t act >> w is rate normalization, by the way? talking about getting to historical constant averages we have which is anomaly for the past decade, right? >> we've been artificially low for a long time. a lot of people believe this is very deliberate and methodical on the fet's part. i happen to believe the fed lost control a long time ago. they're forced to react to global traders, by and large setting pace how they treat government bonds across the
world. if it's a fast rate hike, we have a problem. if the slow rate hike, the fed remains illusion of control, i know that isders will be okay with that. : great read on all of this. thank you very much. >> thank you, neil. neil: dow is up 12 points. it seems like a bit o a gobbledygook. those are watching gap between two year and 10-year, 10-year and 30-year, 10-year and one years, it gets silly and arcane. suffice it to say, when the curve flattens, no matter how long you own something, one year to two years, 10 years and longer, all essentially the same, that usually presages at the very least a slowdown in activity. now there is nothing to hint of that when you look all around. sometimes this could be six to nine months in advance. it isn't gospel truth. it isn't gospel reliable, but it is fairly consistent. and that is what we're following. that is what the federal reserve is following.
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neil: finally today is the day. it has been almost two years. we'll get judge's ruling on fate of at&t a time warner. charlie gasparino has been following it better than any one on the planet on the outcomes. >> three out comes. complete approval of the deal, complete rejection of the deal and something in the middle a lot of people think will happen. you will have to read the decision to figure out what is going to happen in terms of media deals. here is the thing. at&t wants to buy time warner to have no strings attached so they can charge what they want for time warner. anything in the middle of that is a problem for at&t. neil: including selling time warner properties or turner networks. >> that is big -- neil: if they do that i'm not interested. >> saying to do that it hurt the my deal. neil: would he walk away from it if there were provisos like
that? >> there are huge breakup fees in this thing. here is the scenario. a lot of dales are riding on this. say the deal is approved. a lot of deals will follow, a bidding war for our entertainment assets. comcast already said so. neil: the one disney supposedly wants. >> at least between comcast and disney and maybe somebody else f there is a clean bill of health f there is mixed ruling people will have to weigh that. comcast, from what i understand, brian roberts of comcast will make the bid barring anything of a outright rejection. say there is outright rejection from judge leon, no deal outright. ran dell stephenson from at&t is job is on the job. th is strike three for him. strike one was sprint. tried transformational deal. he paid up for directv. people think it wasn't the greatest deal. it hasn't provided many dividend. and he tries this and it lost,
he will have a tenuous hold on his job. doesn't mean he won't prevail, we're getting that from the bored, signaling to outside people and we've been reporting that. comcast will look at this ruling, if it's a mixed r from what i understand, if it mixed they will study it all night and figure out how to shape its bed. i think they bid on it, this is what i'm getting from the company. they will bid on our assets, barring, like i said, barring an outright no go this deal doesn't work. why is that? they feel, the judge says this deal doesn't work, when comcast signaled building its empire which is along the lines of what at&t wants to do with time warner would be problematic with the justice department so they will not even go there. if there are stipulations they are still interested from what i understand. we should point out that comcast decision could come as early as tomorrow in terms of our bid, the bid for us. neil: in oth words, that is if the judge rules in the favor. if theudge reject this is deal
outright? >> outright. neil: comcast walks away. i imagine all those stocks, ours included, our parent company that have been running up would start running down, right? >> yes. i'm giving you conventional wisdom. all i know, brian roberts says screw it. most people don't think he will reject it. i can't tell you what is in judge leon's mind. i can only tell you from reading the tea leaves at trial -- neil: he gave the government -- >> a hard time, right? neil: absolutely. >> looks like he will approve it. he may throw a bone to the government for provisions like, for stipulations, make it difficult for at&t to fully monitor time warner. and that is where it gets tricky. then you don't know if a win is actually a loss. neil: did comcast have to go through these hoops with nbc universal? >> yes. that is another thing laying out there. the justice department hates mergers where you merge distribution an content together. they may come after -- we'll see how this ruling is. if this ruling gives them any
incentive, judge leon approves it with gazillion caveats and conditions, see them gofter comcast, reimpose provisions on that merger, what i'm hearing by end of the year. neil: can the losing party appeal? >> that is another issue. why there are some moving parts. if there is complete screw you to the justice department, a good chance they will approve it. i don't know how that affects the deal. the deal will close in couple weeks i understand. neil: if you go to the deal, you have to do it within a nanosecond? >> they will do it soon, if they go there. they may turn around, get those conditions, say, we won. we weaked this company which we don't like, enough, and we put comcast on notice, you want to expand. okay. make the bid. neil: look how the environment has changed through the course of this 18 months, 20 months, right? >> yeah. neil: look at netflix. look at emergence of hulu made,
the whole geography very different. >> that is what time warner -- at&t argued. they said, listen, innovation is going on, you know. you know, it is going on despite the fact that you have som like comcast out there which merges big distribution and big content with nbcu. justice department turned around and said that merger in of itself slowed down that sort of transformation that was going on. it raised prices. made it more difficult for new entrants to get back in the market. this is where judge leon will have to figure it out. i can't tell you where he is coming out on think, he has been very hard on the government, didn't prove the antitrust case, at least kept pounding. >> the tea leaves suggest at&t will win in some form. i can tell you never know until -- neil: you're right. anything can happen at the last second. thank you very, very much, charlie gasparino will be all over that not only on this fine
network but fox news. if it matters to it kind of matters to charlie. joking. the summit, not much there, because the questio what happens now. how about the guyn the left going to the white house? half this. ♪ about your retirement savings. talk with your advisor about shield annuities from brighthouse financial- established by metlife. with expedia, you can book a flight, hotel, car, and activity... all in one place. ♪ everything you need to go. ♪ expedia® copd makes it hard to breathe. so to breathe better, i go with anoro. ♪ go your own way copd tries to say, "go this way."
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>> this is about peace in the region, et cetera. the president defined those exercises on north korea's terms. >> a summit is not an accomplishment for the american president, brian. it's a major accomplishment for kim jong-un. >> past is prologue, we can't believe anything the north koreans tell us. >> we're actually seeing spring training here, instead of the world series. neil: that was rather cynical view of the meeting the president had with the north korean leader. i could have just easily gone back in time to the overtures barack obama was making to the cubans, remember that?
and all the rage on the right about that. so we know how this game is played. right now the consensus of this seems to be, mainstream media, for lack of a better term, a lot of raised eyebrows and concern that the president might have gotten hoodwinked. others are saying this might be the start of something. that is probably one of the kinder reads. syndicated host, stays city washington, robin biro and elena trin. i will to toou. many on the right res to barack obama overtures to cuba, these are not in favor of by opposition party. i get that. what i'm seeing on part of many on the least in the media, but isn't it better to makeovertes isn't it better to talk than the alternative this. >> well that is exactly what several are arguing especially from the trump administration, but a lot of experts as well. reaction from washington is
essentially cautious optimism of course. various degrees of cautious to optimistic but what people are really saying it is great that the president has come to the table. he's met withim jong-un. they established a a rapport, what the president loves to do in the meetings. what we look at now, the meeting and the document they signed didn't include any details. didn't promise anything that is verifiable. looking forward what the administration and media and critics are looking for, what happens next and details of that. neil: well, it didn't implode. neither left the table in a huff or didnything like some of my relatives do at picnics or parties. look at that, robin, it is good on that count. i think everything went according to what most people thought it would go. not with enormous detailed plans for denuclearization but broad goals. and so it kind of went almost
although we don't have exact script. what do you think? >> i think we did the best we could with this. leading up to thisw kim jong-un was asked three times if he was going to do total denuclearization and ignored reporters. in fact we at least started this, got a document and framework, grantedhere is not much concrete, let's not get out the pom-poms celebrate. i'm a glass half-full of kind of guy. i want tohis to go well, that is the best interest of america, but entire world. that bomb they dropped in the ocean was bigger than hiroshima. we need to make progress here. we need to start. i'm tired of thenitive dissidence on both sides, neil. neil: i'm -- i do find it odd we
got to this point kim jong-un has lied and cheated so often in the past and built in nuclear arsenal his bad behavior is getting him pretty good treatment. try to explain that to your kids, if one is doing everything he should, and t oer guy isn't, and the other guy that isn't is getting all the good stuff? >> neil, one of the things i think we kind of ignore in the situation with north korea is the dynamic. if we were dealing with some kid, american kids w have been raised with right and wrong and know not to hit, kick, bite and punch, make mistakes, that doesn't make sense. we're talking about a dictatorship a regime literally still has gulags and things we haven't heard of for almost 100 years at height of the communism and all of that. so i lik temper the expectations. it is in the that i was looking for, you know, basically sex on the first date. they just met. this is their first time looking each other in the eye, nowt
they established first teensy-weensy little bite where they have a relationship, neil, now we can move forward, cautiously, tentatively. i want to point out everyone is getting upset about president trump saying exercises, war games will be postponed or canceled, they're still on the asked you. nothing has changed. if 90 days from now there is a lot of drama going on, war games will still happen. i think, give president trump a little bit of credit and also temper the cheerleading and just understand it was first bite. neil: very profoun comment but i still can't get past sex on first date thing and images. >> hey. neil: it is fine. i know where you're going with this. elena, is there a sense you have, the president intimated another meeting, another powwow, maybe even a white house visit for the north korean leader, how do you feel about that? >> well that is just a huge win for north korea, for the fact that someone who has, human
rights abuses would be invited to the white house is a huge win. we've never seen this before obviously. that historic handshake was the first time a u.s. president has done with north korean leader of e regimes. that is huge win. that is something critics are pointing to, positioning of the flags they were considered equals because the north korean flag w placedext to the american flag. this is something that kim jong-un can take back home and people there will be so impressed with this, as well as those pictures of him touring singapore. neil: yeah. >> but looking at a meeting also, i think that, what the president has to do, make sure he is tempering expectations. there is not much that the north koreans can do really right now in the sense of, following up. neil: i hear what you're saying. rob, on the flag thing, only two countries involved, what will you put ours on a pedestal and
theirs on -- board of a car. i think that was much ado about nothing? >> i completely agree with you. what i'm happy about though, we're keeping tariffs in place for north korea. neil: right. >> that's smart. i think pompeo had a masterful move, if he said you're serious, start sending your nuclear weapons for denuclearization and put your money where your mouth is. i trust pompeo. he has been on the job six weeks. i think he is doing a great job. nikki haley as well. they will hold their feet to the fire. that i'm glad to see, neil. neil: i want to thank you all very, very much. historical perspective before we close out the segment, read a line from the "new york times." will never talk to each other. the fact that they will ever recognize each other is naive on the part of the administration. these talks are all show, no substance. nothing will come at them. referring to the camp david accord that resulted in israel and egypt recognizing each other. to this day doing business with
♪ >> i had a very good meeting with the g7 and i left the meeting and i will be honest, we are being taken advantage of by virtually everyone ever those countries, very sioly. the united states because of bad management at the top, because of presidents that didn't care about trade or didn't understand it, we're being taken advantage of on trade. neil: all right, the president still smarting from thetive -- the tiff with the g7 including relationship with justin trudeau who the relationship is quite tense. we have kevin rudd. mr. prime minister, very g to have you. thank you. >> good to be on the pgram. neil: this is very unusual, isn't it? a division within thetern economicks. sometimes behind the scenes we get idea of a little discourt but this is out there for the world to see, so it is transparent, i guess you could say that. but where do you think this is
going? >> i don't think it's a good look for the west. the two countries happiest with the outcome of the canadian g7 would be russia and china. because, you have a split right doesn't middle between the united states and the rest of the g7 on the question of trade and also, of course president trump's decision to, as it were, suggest that russia should be readmitted to the g7. so i think beijing, and moscow would be happy with this outcome but on the president's other achievements in terms ever north korea, those g7 capitals would be happy with what he was able to pull off in singapore. neil: the chinese are already saying, i know they have a close relationship, and you have a trading relationship, that is your country, with australia, the u.n. security council should look at lifting sanctions right now or do it in phases.
how do you feel about that? >> i can understand why the chinese are doing that, because they are their ally. sense a opening diplomatically with the united states and north korea. therefore the north koreans are being good. therefore allow them to get out of the sin bin for a little bit. i personally think this is far too early. the reason for that, secretary of state mike pompeo going to in direct bilateral negotiations with the north koreans on the actual detail of comprehensive, verifiable, irreversible dismantling of north korea's nuclear capabilities. only when you make concrete progress on that in detail that the matter should go back to the u.n. security council for further consideration on the sanctions regime. neil: do you find it odd we could be on the precipice of lasting, very early to your point, mr. prime minister,
lasting, changing, defining agreement with the north koreans, that started with it, personal attacks on little "rocket man" and all of that, potentially a whole new way to view trade by responding with tariffs, threat of tariffs, rough language? what if both work? i mean it defies the way we normally go through diplomacy, and turns it upside down? >> let me go through the north korea example first. ever since the president, president trump, announced the summit with the north korean leader was going to happen, frankly my position has been, that's trump. that's not out of the georgetown university school of diplomacy. that ain't donald trump. but, at the bottom line is, it's had an effect. it has shaken the game up. neil: right. >> and as a result we've had this summit and as a result we have a process which will be taken over by pompeo, the secretary of state, and we don't
know at this stage whether what will be skeom the tree in terms of real outcomes on the nuclear disarmament question for north korea. but, previous diplomacy had not worked. that's the bottom line. so my view is, we should give credit where i due in terms of whatresident trump's achieved so far. see what secretary of state can now deliver. it is still a long, long way off. neil: it is. prime minister, good seeing you again, even remotely, thank you very, very much. >> good to be with you from london. neil: read from former bush 43 deputy secretary of defense paul wolfowitz and how this changed the way we go about maybe negotiating with rogue dynasties. after this.
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neil: allright comeau should let you know that even though the summit is formally over between leaders, mike pompeo and john bolton will be meeting with their north korean counterparts sometime next week and we don't know where or whether there'll be north korea's central location. but the hope seems to be that they would get some follow through here to dot the i.'s and cross the t.'s on broader agreements included as part of the north k allow for the 5000 u.s. soldiers missing or lost in korea at the time of the korean war over 70 years ago. and of course, our willingness
to stall for a while if not outright cancel military exercises between ourselves and the south koreans. a lot to be worked out, but they are working along that front to get a lot of stuff done in the denuclearization thing done in the timetable for all die. hillary von is at the white house with more. turn a president comes day with kim jong un got approval from two key players in the region. north korea's next-door neighbors, china and south korea. south korean president miller jae-in taken a bold step towards the world and president trump making it happen seen in a statement, we will be there together with north korea along the way. this is just the beginning and there may be many difficulties ahead, but we will never go back and never give up on this bold journey. china, north korea's largest trading partner signaling potential economic relief for the country in response to the
news. same tuesday this progress could trigger a pause or an end to their sanctions against the north korean regime. the meeting also got cautious approval from the european union comment united nations, japan and russia. the international sponsors and more for the president is used for a colder criticism from overseas. here at home come the democrats are sounding off is the biggest that shakespeare's minority leader nancy pelosi calng the agreement tasty and senator brian schatz slamming the dls embarrassing. the president doesn't read that this is going to be a long process. the nuking north korea could take years and cost billions. the president said the u.s. is not going to write in any checks here. he says south korea and japan are planning to foot the bill for this. neil: hillary, thank you very much. hillary von. last hour, the former upon obama defeeecretary, defense secretary, lien panetta says we should not give up too much too soon when it comes to north
korea. we've already heard the chinese are peong, leon, the sanctions we've addressed and eventually dropped. what did you make of that? >> i don't think wou take any steps with regards to the sanctions until we see the steps that are korea is prepared to take with regards to denuclearization. frankly, we shouldn't jump ahead here. that is why i was concerned about the president taking a step in regards exercises that he did. neil: the former deputy secretary of defense under george w. bush. ambassador, very good to have you back. what do you think of what he saying? go slow. i think is absolutely right. the main hope of this out of this assembly will result later in something better will result later. the list of people pleased by the meeting, obviously kim jong
un lovett, the chinese love it, the left-wing president h south korea above that. i don't think the japanese are terribly happy. i don't think the south koreans wh on america for defense are happy and i'm quite sure the north korean refugees who was so wisely applauded at the state of the union in escaping from north korean prison is not going to be very happy either. neil: we don't know the details yet or how we move forward here, but what did you think what the president offering these joint military exercises with the south koreans? >> well, let's keep emphasizing. we don't know what the details of what may have been agreed already. we certainly don't know the details of what's going to happen following negotiations. i just make an enormous amount depends on the follow along. i'm afraid this canceling of the exercise and probably
permanently my gas if we don't do it acquiescing to north koreans and south koreans will ask us to do it. the atmosphere for the whole situation are going to prematurely, in my view reduce and weekend south korea. the way to end this conversation has been ample and clear for years, which is for north korea to take steps to an incredible militaryldup they he on the south korean to militarize zone. there's not a whisper about anywhere. it's all about us and our exercises. >> you know what is kind of weird, i look at rings and maybe a business prison. one of the things i realized, if i north korea, why would i give up the bargaining chip that is gotten mean to the table in once i am denuclearized, i don't have anything on anyone.
>> look, i think that is why very long time.n will take a it will be under their very broad definition that it has to include the end of the u.s. guarantee of south korea's security. that's what they mean when they say completelearizatn. gbout complete verifiable and are reversible, the words we like. i think it is true that they see the above bridge, which has gotten an historic meeting with the president of the united states. they never had that before without any other country's pridt, except in the shadows so to speak. so yeah, i think frankly the greater hope would be that we get real direction to south korea and then we could beg to see a real change in the confrontational atmosphere in the peninsula, but i don't see that happening unfortunately. neil: ambassador, like talk to a number of clinton folks who
argued when they struck a deal without a presidential level meeting, it did keep an agreement intact for a number of years,ight years before the north korean started cheating, that she dated. the defense are not coming back as they say in the end they had far fewer nuclear weapons than they would have had otherwise. is that what this comes down to that we recognized theact that they cheat, maybe the fact that they lie, but will still end up being better off because they won't have as much of the stuff if they did if they weren't addressed at all. >> look, i think the threat comes from even modest amounts of nuclear weapons. even ones that threaten our south korean allies and japanese allies, which is where the japanese are concerned this might be a deal tt protects the united state. book, the heart of the matter is a buildup of south korea's bordt shouldn't be there
is totally unnecessary, that is a drain on the economy and a half. i would say the really hopeful sign would be if they were actually contemplating the kind reforms and they talk about that. the chinese say that's what they have in mind, but i'm skeptical unfortunately. neil: you know, many ambassador pointed to the son, kim jong un, very different than his father and grandfather and maybe changed by just singapore or the travels of late and coming from a country and just may be part of that, part of that excitement , part of humanity. it sounds a little fuzzy and all of that, but that alone is what is going o here. in the streets of singapore, the other night, taking self is come in of thing. we have not fact in a young
leaders desire not to follow and the solitary waves of his father and grandfather. certainly you don have to be a et scienst to see that north korea could be much better off with a different kind of system. this guy after i went to school in europe so he saw first-hand in that way also. switzerland actually which is a pretty good example. the problem for him or anyone who wants to do that, for him personally he has to basically disown his father and grandfather in sales and misery they put the north korean people through was unnecessary and was a waste. that will be very hard. the other thing is his regime depends on this ghastly repression with over 100,000 people in concentration camps and even the ones who want their live in constant fear of being sent with eir families to camps. it is so repressive i'm not sure
he can afford to let the pressure at all to allow people to move freely, communicate freely, and a great freely. i don't think that thisge t it is better to talk than not, is it not? >> maybe talking will will get us there. i do believe the goal should be not just to be so narrowly cud on nuclear weapons, but to be focused on genuine reform in north korea that would include reducing their insane military burden. i wouldn't mind if we got some real progress on nonwork nuclear ons later. i am skeptical that what we got out of this summit is anything more than a big plus for kim jong un. and people don't bother resisting me because i have the whole world with me as you can see, including united states. neil: that's an interesting read. ambassador, thank you very much. >> thank you. neil: the markets not doing much of anything. another quarter-point hike in
interest rates tomorrow and maybe a couple more by the end of the year. they are so far okay with that. but now we're back to the fundamentals. we still have trade test. that's not going away. the focus now on what the federal reserve does and whether it's inclined to do a lot more than it has been doing with regard to raising rates. more of that a the implications of that after this.
neil: all right, you heard of the u.s. secretary of defense under bush 43, former world bank president that while he commended the president sitting down with the leader of north korea, he is concerned hght ve given away more than the noh korns. we don't know about. we just sort of on the broad blueprint that was provided yesterday or early this morning, whatever your timeframe is. but mr. wolfowitz view was wait a minute, we should beffering the military exercises of south korea's before we start seeing conclusive actions on the part of the north koreans. that's not to say that isn't in the offing authority out there. let's get to read from republicanenator john hogan. it's very good to have you, sir. another figure from prior
administrations that might not like or resent maybe the success this administration has getting the north koreans to the table, but they would not have offered the joint military exercises. what do you make of thoug? >> he said at the outset we need to get the details. we look at information over the next few days. it is encouraging that the president believes he can work to get denuclearization of the korean peninsula. we do have to be careful as we work through the details. remember, just because you indicated he may adjust some of those military training exercises come if north koreans don't show good faith, there's nothing that precludes us from continuing to do that and pressure onlse and we ha to until we have real, verifiable results. neil: you know, i guess i wonder what those results are, sir.
as you point out and we chatted over the years about how unreliable north koreans have been that this leader has been a liar and a proven liar. his father was coming grandfather was and yet we are hoping the third time will be the charm. it just might. what would you advise especially for president trump who was feeling pretty good about getting as far as he did. >> well, remember president trump wants to be able to bring an agreement to the united states senate that can be approved. to do that, you have to have transparency, accountability, and that real result what we know we have an enforceable agreement and we are in fact getting rid of those nukes. remember, he wants an agreement that he can bring to the senate to get approved. that's a very good time. neil: so it would need to senate approval he doesn't want like in iran deal that barack obama had. >> that's exactly right.
neil: many of your colleagues, senator, have talked about getting da or in a power over what the president is offering on terror. some say he's going way beyond his authority as president of the united states and that is sending you guys decide. what do you think? >> would have to be careful because we have to strengthen his hand, not reduces negotiating power. i was at the white house for about two hours wednesday of last week going through some detail not only with the president, the trade negotiators, vice president, secretary of treasury and others talking about the progress that the administration is making. i know there are bumps in the road. we saw that with the g-7. but he really feels he's making progress on nafta. he is working to get a better deal with canadians and mexicans. we talk in terms of okay but we need to start seeing some results there. we started to talk maybe early fall having something.
you also have to distinguish between section 232 and section 301 agreements. but the important point is we have helped them with these better trade deals. neil: real quick while it got you, you might've heard the president's foreign policy adviser peter navarro apologized to justin trudeau over his special place in remarks. do you think went too far? >> i was glad to hear him say that. these are our friends and allies. we want a bette deal, but we want to negotiate in a way where we recognize we have a great relationship. >> well said, senator. good seeing you again. the federal reserve meeting was likely a quarter hike in interest rates that would bring us around the 2% level with the bank lending rate as the yield curve between short and long-term rates flattened considerably. what does that mean? normally a slowdown. is it a worry? let's ask our market watcher.
the more they raise the short rates, the flatter the curve has gotten. some read into that all sorts of horrible things. >> right, the fact that people read that into it wheer true or not is going to stop them from raising rates much higher in the long-term rates. the inflation blowing through like 3%. not going to take short-term rates to 5% in late the third year at 3%. there's no way they will do that. they act like they're having a recession. i'm pu psychology, and there's a limit to how about ray short-term rates without longer-term rates going up as well. >> i would be a weird reason, though, to hold off on raising rates if you think the economy is picking up steam. i know exactly what jonas is saying that that produces another fear and anxiety, but would you be falling behind the curve? >> there is certainly that risk. we've got an unemployment rate
is almost unprecedented. in fact, the last time we had unemployment rates at this level we have had inflation. at least looking back at history comments got to be somewhat concerned. i think to the point that 10 year rate is not really controlled unfortunately by the federal reserve. as controlled right now by the european central bank. i was actually surprised to hear that they are going to continue with their plans to end the quantitative erogram. they are a little more hawkish, even with italy and spain. sounds like they're going to end the quantitative easing program in q4 and i should push the tenure hire to what i would say closer to fair value. neil: we should say the europeans have been busy buying of treasuries of their own note and bonds and securities to keep
interest rates down. they are unwinding not right now and that could be a very tricky process. jonas, this comes at a time when a lot of folks are worried about our trade posture battled with the europeans, but here at the canadians and mexicans and not the none predict will event for the markets. you agree? >> the market is more concerned about how bad trade could get. but that is more scary than the interest rates. i don't think there's a lot of fear right now that rates are going to skyrocket much higher. things seem to calm down, but there's definitely with the g-7 meeting, a lot of bluster more than anything. there is retaliatory one that if we really do, you would notice like european cars. that would scare investors about causing a recession and possibly the fed would want to raise rates into a trade where because that would be a trade war. not so much the higher rates.
neil: we are looking at the quarter we are in is a lot of strength speared maybe 4% plus gdp strength and that is the possibility of continuing and additional quarter, changing everyone's equation on the stimulative effect, tax cut on this market itself that it maybe isn't overvald or isn't too overheated. what do you think? >> i think investors are looking at earnings now has peak earnings, so i don't think that a sustainable three or three plus% of gdp growth rate is in the card largely because our potential gdp if you look, worker force growth plus product to be a 0.7 per committee at 1.5 leaves us around to po to. unless we can get product to be substantially higher than 1.5 and we could maybe with some of the capital invtments as part
of the tax package, then we could a sustainable economic growth rate pushing 3% or so. there's nothing in the cards right now that would suggest put it to me is goi to ramp up substantially higher than where it is right now. neil: what do you think i should mark >> theger risk is because the economy is hot, the lenders to borrow short are going to be like were not going to make money making safe love and the economy so hot we can make reckless loans and it's a gold mine. they can make risky loans and they will jump onto higher risk that. ultimately, that will be unwinding. trade wars, things we think we are worried about, just like worth taking on too much credit risk because you think the economy is there to support the risk you're taking because you can make it just borrowing short investing long. >> you're not saying it's like a weight now. >> not yet. >> you know, tariffs tend to be
inflationary. i'm not sure if the fed leaves we were going to impose tariffs that necessarily would mean, you know, inflation would rollover. we start having to pay higher prices for steel and other things, that could potentially spark higher inflation. the fed needs to be on their toes. or it could spark a slowdown. >> it's not really inflation because of the tariff. it's adding a value-added tax. neil: hopefully we don't even get there to debate this. when i thank you very much. we are about two and half hours away fro a judge deciding that at&t and time warner, so they proposed a couple years ago and now to decide whether that merger can proceed. if it were not to proceed, if it were shot down, you could shoot down all media and media related stunts because they are poised to jump on the idea that could prompt a feeding frenzy and buyouts and talks of mergers
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neil: this has been like the media version of waiting for goodell, but today he's going to arrive, a judge isoing to rule whether at& can combine with time warner. a lot of folks seem to think this judge will go ahead and approve this deal. there are a lot of caveats here, lot of grays. >> neil, it's a big day today at least in terms of companies and mergers. judge richard leon will decide in about two and a half hours if at&t and time warner are able to merge. he's looked at all of the ed in this case. if the judge rules against the department of justice, then we can expect an appeal that possibly could push this case beyond the june 18th closing deadline, and june 21st merger deadline, and there is already talk within the two companies of pushing those deadlines in
expectation that they may win this case. now, the government says that the combined company would be so large that it could set distribution prices as well as limit competition to the marketplace. the government also says that the combined companies would raise prices on customers because of the reduced competition. now, experts are sayin it's very difficult to prove that a vertical merger will hurt the customer per se. now, the government says that they only have to prove that a reasonable harm is done to customers. now, at&t argued that the larger company needs to be put in place in order to compete with big tech firms now producing their ownws like amazon, hulu, netflix, also google. now, lawyers told the judge that the government's case was built on a house of cards and, neil, the trial itself lasted about seven weeks. but now we could see an end to it finally. neil: fingers crossed. just get this thing resolved. edward or lawrence, thank you very much. of course, he's going to be busy in about two and a half hours.
wh does all this mean, and what are all the legal ins and ts,ndw napolitano. judge, good to see you. what do you think? is. >> so, edward set this up for nicely for us. we expect a ruling around 4:00 eastern today from a judge who i would describe as, i hope you'll forgive this word, libertarian-ish. a judge who is not afraid to stop government, a judge who has a belief in the free market, a judge who has a track record of invalidating government behavior which he believes violates fundamental rights. now u having said that, you had a colossal battle for seven weeks. and this is what lawyers call a swearing contest. you had experts on the government side swearing this is going to destroy competition. you had experts on at&t's side swearing this is going to enhance competition. but the courts are reluctant to interfere with a vertical merger. at&t owns the pipes and the wires, time warner owns the content. they don't compete with each
other -- they will, if you believe at&t's argument -- enhance each other. so we have every reason to expect this will be approved either as offered or with minor tinkering. now, people are going to be laughing at me in two hours, because judge leon could come out with a judgment that sides with the government, but it would be inconsistent with the unmistakeable signals he sent during the fire. neil: he went after the government lawyers a lot on their arguments, right? >> yes. neil: how much does outside noise and developments affect this? i was mentioning all the media stocks, disney and comcast, that have been caught up in this and that deals are pegged to if this is approved. in other words, if you know this is a possibility and that all those stocks are reacting or will react to what you decide, what do you think? >> i thought that your summary of what might happen at the end of the last segment before i walked onto the studio was truly
brilliant and is likely to happen. question: can the judge take that into account? can he take into account that that many more of these will come, acquisitions and mergers? and a lot more work for the doj and the judiciary. answer: no. no. he can only resolve this case on the basis of the evidence that came before him in the courtroom. and what might follow economically or logicallys n evidence in this case. neil: because some look at the comcast/nbc universal deal as the one that fed this deal and then other deals to come, but you can't even entertain that? >> no, you can't. but i will tell you what is happening within a quarter mile of where we are seated now and some very large and s firms have their headquarters. beefing up their mergers and acquisitions departments because they expect the same ruling we all do, and they expect their clients to be buying each other out. almost like the frenzy we saw in the reagan era. neil: but don't judges or
lawyers in general look at the dynamics in just the course of the 20 months this was proposed and where we are now, look at what's happened to to to netflix, look at the emergence of amazon prime and hulu and all these other services that have become cash cows unto themselves e clinting the value of at&t? >> yes, they will. neil: so if the argument is this is anti-competitive and all these technologies have emerged in the interim, your argument potentially against it kind of loses its -- >> look, sometimes a mouse can swallow an elephant. abc was many, many times the size of cap city -- neil: you're right. >> we don't know who's going to buy out whom -- neil: wasn't that randall stephenson's argument at at&t? look around, judge. >> yes. it's fascinating to me. it's the intersection of law, economics and then a little bit of politics. neil: yeah. and a little bit of drama. >> and they need to get -- it
keeps us busy. neil: when he's not at a restaurant. >> he knows good restaurants. neil: he does really. he ph-poohed my olive garden idea. [laughter] >> i'm with him on that. neil: yeah, yeah, you're both very sophisticated. they only go to astronauts with tassels -- to restaurants with tassels on the menu. [laughter] a lot of people are watching it including folks, for some reason, in this building. i'm trying to understand why. after this. how do you win at business?
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♪ ♪ neil: i would be curious how you feel in talking to either barack obama if you have or to bill clinton with the constant comparison this president continues to make as to the progress he's making -- >> he operates by chaos, and i understand that. a certain amount of tactical chaos is good strategy. but strategic chaos can be very
dangerous. and right now i'm still waiting for president trump to actually deliver on a of the things he's working on to show that he can actually make the deal. neil: all right. might be operating by chaos, might be sort of, who knows, stream of consciousness. a whatever his critics have been saying, yet again, the talks have happened, the leader of the united states of america and north korea for the first time in history meeting each other, making a deal or cobbling one together maybe in phases with each other. to former bush 43 deputy assistant defense secretary brooks, and welcome to both of you. is it your sense that chaos or whatever you want to call it is working for this president? >> well, i think that's accurate. it is if you take what was happening a few months ago with missiles flying over japan, with p ap gees and ranges indicating they could reach the united states or guam versus what we're hearing today, i'll take today
any day. neil: peter, i know the proof is in the details and exactly what we got out of this, we do know we were early to offer stopping these joint exercises with the south koreans, some pounced on that as our making the cop sessions and the -- concessions and north koreans not when, in fact, they have committed to recovering the remains of thousands of u.s. soldiers over the course of the korean war and a commitment to denuclearization, but it's vague on the denuclearization part. does that concern you? >> there's a lot of work to do. this was a good start, and as you said, the devil's in the details. this is just the first step on a long journey that will have a lot of obstacles. you know, i'm not as concerned about the military exercises in the sense that the president is trying to build trust. there's a tremendous trust deficit between the two sides. i mean, 68 years since the start of the korean war, you're talking about two countries that fundamentally do not trust each other.
so what i think he's trying to do here is making a goodwill gesture that can be reverd wean decide to pick up these exercises. the next one wasn't scheduled until augusting and put them back on. but trying to -- expression of goodwill and trust-building because this is a serious thorn for north korea while we move into the next phase which will be, hopefully, some sort of ions on denuclearization and other issues that confront us. neil: you know, it seemed, admiral, with the south koreans we're damned if we do, damned if we don't. they wanted us to talk to the north korean leader, and we did, and when they got the joint military exercise news that the president might stall o or reverse one or hold it back, then, you know, they were -- i wouldn't say flying off the handle, but they were upset when, in fact, the talks themselves have produced the possibility of the most stable environment for the entire peninsula in decades. >> predent moon should be very, very happy with this outcome. look, military exercises can be
resumed literally in days. this is not a big sacrifice on our part. having said that, it is a good signal -- i fully agree with what peter said. there has to be ge and take onbs a good first step on our side to show that we're sincere. but north korea's got to produce as well. neil: you know what's so weird about this, peter, i know you're well schooled in diplomacy and the bureaucracy that goes about and the ways you act and comport yourself in public. so is the admiral, by the way. [laughter] and here we have a president who started out, you know, saying little rocket man and everything else in between and threatening nuclear annihilation, and here we be. he an agreement starts. >> yeah. neil: and it is, you know, unusual, but i'm wondering if it's upending the way we g about future talks and the key is early on to either come up with a really good, snappy name for someone or to just --
[laughter] geiew about how, what you want out of it early on. >> yeah. i mean, sure we can quibble on style, right? you know, about that. but the president, one of the things people are overlooking, neil, is the fact that there's been a significant reduction in tensions on the korean peninsula. we're not talking about fire and fury today -- neil: true. >> the north koreans aren't talkingut turning new york and seattle and washington, d.c. into seas of fire, which is one that of their favorite phrases. you know, so we have with had this. and a lot of it, i think, comes from the tough rhetoric that came from the president. the president was right to remind kim that if they start a fight with the united states military, it's going to end dly for them. and i thinkim blinked. it was one of the other things, the south koreans masterfully did a great job at the olympics with dealing with north korea. the president's maximum pressure campaign, it wascausal. that'll e neil right. >> but they needed to understand
that, and i think the president's rhetoric so far has been effective. neil: we shall see. gentlemen, always good having you. >> thank you. >> thank you, neil. neil: all right. remember that tax, they called it amazon tax to help pay for the costs associated with the homeless in seattle? it was passed and now before the tax can even take effect, it's going away. this doesn't happen very often. after this. ♪ apogees and ranges indicating and you have the best seat in the house. the john deere x350 select series with the exclusive mulchcontrol™ system. nothing runs like a deere™
♪ ♪ neil: all right, in the middle of what could be a trade war here not a great dime for gm's annual meeting when there are concerns where do the cars go in that eventsome jeff flock with more. >> reporter: and the only positive, neil, at annual meeting at gm headquarters in detroit is that gm makes 80% of its cars that it sells in the u.s. in the u.s., so they may get hurt less by that potential tariff of 25%. mary barra wouldn't say what the impact of that would be at the shareholders meeting, she came out to meet reporters and also declined to say just how much the steel and aluminum tariffs are costing gm. some analysts have said it could be a billion dollars a year. so there you go. she did say, though, that if we don't get some clarity on trade soon, we could be in this
trouble at plaitses like gm -- places like gm. >> a lot of the decisions we make, it's long lead. so products that we're, you know, launching now or decisions that were made, you know, before this administration and some of the issues that are being worked right now. so nothing that has caused us -- but i would say, you know, continued you were certainty eventually will have an impact. >> reporter: the other headline i think today, neil, is around electrics. gm saying again -- a lot of people don't realize this, gm has committed to an all-electric future. they say eventually they will not make any cars that operate on convention algas-powered engines. a lot of people don't know that, but that is the future. of course; they've got the chevy volt out there right now that is doing pretty well, despite the fact they make most of their money on the cadillacs escalade right there. speaking of cadillac, i love to go to shareholders meetings because you get shareholders
that ask questions that us journals would never -- journalists would never ask mary barra. what's the deal with t doggone alphabet soup for cadillacs, and you know what? the guy's right. ats, cts, xts, ct6, x4, he said you've got one good name, escalade. that's the one that makes all the money. i would point out that back in the day theyed had el dorados, they had cure devilles, they had fleetwoods. now, those were names of cars. marchly barra did not have an answer for that question, but has an answer for stockholders, the stock up 29% under her tutelage in the past year compared to 7% for competitor ford. neil: not too shabby. you mentioned electric cars and, of course, gm's push there. we're getting word right now, a bloomberg report, that tesla wants to cut about 9% of its
workers across the entire company here. do you know what's going on or -- there were model 3 production disappointments, i know that, but what's happening? >> reporter: they're, they're running out of cash. i mean, that's the issue. and, of course, gm, you know, they h lot of resources. of course, gm's been through a government-sponsored bankruptcy. tesla hasn't been through that yet. maybe they will. but i would point out that gm has a lot of money in the bank, they're spending that on electric development. they just signed a deal with hon that to develop new battery systems. they are well positioned, and, you know, if you've got resources and you've got vision, that's the place to be. that may be why that stock's up 29%. neil: wow. thank you. i'm sorry, jeff flock. dave's my next guest. jeff, thank you very, very much. i'm paying attention. anyway, this whole dust-up in seattle right now. remember the tax, dave, you were saying this would probably not
too long where they were going to charge companies to help pay for the homeless problem. and though it passed, before it could be implemented they pulled it. that's essentially the case, isn't it? >> itpprs to be the case, yeah. it's the most lewd rouse thing you've ever seen, cities sort of eating their own and turning on their economic engines. and i guess it's not, you know, look, this one's a blue state phenomenon, and i have a feeling, i mean, i do a lot of business in silicon valley and in the city of san francisco, and i've got to tell you every time i out there all i hear is from how many companies are trying to move jobs out and how many people are moving out. and it's the same thing in seattle. fastest growing city in the nation now is boise, idaho, which is largely economic refugees or business refugees from the city of seattle. so you can't take a hostile position toward your businesses and expect that you're going to maintain a healthy economy, and that's what seattle's finding out. neil: where are they threatening to leave? were they threatening to pull
out of town? >> they weren't threatening to leave, but as you now, they're already -- amazon's already pursuing a second headquarters -- neil: right, right. >> the big, much-hyped thing. so they were establishing kind of another center of gravity. and then they also were building two towers in downtown seattle and said, well, you know what? maybe we'll pause construction. they actually did for a short period of time. and it's, you know, this was a bureaucratic piece of idiocy like i've rarely seen. it was a 26.042 cents per hour, per employee working tax. so, in effect, it was saying to a entrepreneur like me, the meter's going to be running every time you hire somebody even for part-time thing to do a job. employee every moment they spend at your office so tt we can pay for homelessness and reduced priced housing. it was idiotic. neil: all right.
i'll put you down as a maybe -- [laughter] always good seeing you, my friend. it came and went though. i don't remember a tax that has ever been proposed that pulled d voted on by the people. ultimately, they waived the financial cost and said, you know what? bad idea, move on. more after this. so to breathe better, i go with anoro. ♪ go your own way copd tries to say, "go this way." i say, "i'll go my own way, with anoro." ♪ go your own way once-daily anoro contains two medicines called bronchodilators that work together to significantly improve lung function all day and all night. anoro is not for asthma. it contains a type of medicine thatases risof death in peoe with asthma. sk is unind. anoro won't replace rescue inhalers for sudden symptoms . . b . . .
couple hours away from could be the mostonsequential decision in years. at&t and time warner could go through. a lot of media issues and stos are waiting in t gates. there will be a race for who is first, who could be the biggest. we'll see, couple hours from now, trish regan. hey there, trish. trish: breaking now, trump is back to the united states agreeing to complet denuclearization as two leaders embark on new face of diplomacy. trish: i'm trish requiring began welcome to "the intelligence report". historic moment, the leader