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tv   Cavuto Coast to Coast  FOX Business  March 29, 2019 12:00pm-2:00pm EDT

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great deal of money. general motors made a close to billion dollars. their initial stake was 500 million. that stake is worth -- they have made a billion dollars. ashley: fabulous. stuart: i'm getting confused. i need neil cavuto to straighten me out. neil? neil: a lot of people are getting rich. remember, this ipo was originally priced at $72 a share. go back a couple weeks ago, it was 62 to 68 range. go back couple months ago it was supposed to be in the high 40s range. this company has valuation north of $30 billion. we're not done yet. uber is looking at this very closely as well. wondering by the grace of god could go we? that company could look at 100 billion-dollar valuation. so much to consider here as we crunch numbers.
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kristina partsinevelos doing this outside of the nasdaq. reporter: you talked about the valuation now at $30 billion. if you look what the latest round of funding privately, it was 15 billion. already double at this point. when the company has gone public before uber. you're seeing the price a little bit above $86 a share at the moment. it was priced at the high range of $72. it made a lot of people wealthy with the public shares. who are we talking about? we're talking about certain investors got in very early. rakutan. shares are climbing higher. a horowitz, a very well-known vc firm in silicon valley, invested in airbnb for example, their value going above a billion dollars. you mentioned gm. stuart varney mentioned that before. gm got in a few years ago, put in investment of $500 million.
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above 1.3 billion. last but not least, two cofounders of lyft, logan green, seeing his portion go up to 602, $603 million, joel by -- joined by john zimmer. he is going up to $415 million. he is the president. according to the filings in 2008 they did have a net loss of $911 million. they have never turned a profit. $30 billion is the market cap. uber talking about valuations of $120 billion, when uber itself suffered a loss of $1.8 billion last year. we do know today, lyft behind me, on the nasdaq, they lifted off all the tech ipos. we'll see a stream like zoom,
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slack, pinterest, of course uber on the new york stock exchange in about hopefully within next month's time. i will throw it back to you. neil: thank you very, very much. as christina 900 million losses piled up in last year. let's raise this with "barron's" senior writer john schwartz? john, do we worry about stuff like that? i heard analyst referred to lyft as amazon on wheels. the criticism of al sign piling up loss after loss. >> took a while for it to be profitable. neil: enviable company to emulate but what do you think? >> that is key. i mean, kristina just mentioned, 911 million-dollar loss. revenue is up to 2.2 billion. the last three-years they lost cumulative more than $2.5 billion.
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despite the pop today and into next week, the school of thought, when do they become profitable? how much capital will it take for public company to reverse that? there is also regulatory issues. once uber goes public, does lyft have a hard time as number two company in that market? also bills or laws that would make their employees at lyft and uber full-time employees rather than contract workers has an impact on the economics. the stock owned by the two founders, in event something goes wrong will be hard to dislodge them. these are things in longer term will resonate with investors but now we're seeing a tsunami or confluence of events that leads lyft to this big day with anticipation for more to come with uber and pinterest. neil: do you think there is a spillover in fact from successful offering like this? i say launch, i don't say offering itself down the road is necessarily marked for success
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but this is what we watch on a debut day. what do you think? >> yeah, you know it is interesting, i know there was some fair amount of skepticism when uber bankers associated with ipo were talking about a market value 100 to $120 billion. that might be conservative after what happened today. there is a pent-up demand. we have big names. consumer brands going public, in the internet space, especially the unicorns. so the big ones will be tiled around now. there will be this wave of euphoria and enthusiasm. i'm thinking in longer term, people will start looking at the profitability and they will be looking at revenue and all these other issues. they will be wondering how long do i hold on to this? neil: i just wonder given the delay and launch of ipos because of the government shutdown in january it might ended up being a good thing, it sort of got people's tongues wagging for this moment, right? >> it built up the enthusiasm.
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the only thing that would be interesting, we hear mumblings, rumors, rumblings of a possible recession by the end of the year. so what impact will have it on the flipside? so it goes both ways. neil: it does. thank you very, very much, john schwartz, "barron's" senior writer. what a way to close out the quarter if this is robust success it appears to be. s&p 500 best quarter in decade, nasdaq, dow, not doing bad either. rose capital founder mike murphy. i want to get a hat tip to him, because in the middle of the december falloff some likened to a crash, mike was contrary, saying we will get through this. indeed we have. mike, good to have you. >> good to be here, neil. medication keeps me calm. neil: something is working. wondering to flip it around, strong start of the year, traditionally, rest of the year, does well. maybe not similarly well.
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but well enough to end up positive. do you agree with that? >> i think we're set up, neil, for this rally we've seen year-to-date to continue but there will be bumps in the road. there will be opportunities as you and i talk about often, there will be opportunities to allocate new money to the market. don't get caught up talking to lyft, chasing the next hot thing or feeling the fear of missing out. stick to a gameplan. if you have big selloffs, they're not warranted, not based on headlines you want to allocate money. i think 2019 will be a great year for the market but it has been a great year already. neil: what is interesting even those issues getting battered on the prospect of interest rates collapsing better than decade lows in some key mortgage rates, the financials are coming back. i was noticing citigroup, goldman sachs, morgan stanley, bank of america, wells fargo ceo tim sloan being shown the door what do you make of that? >> i think the financials are a
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great place to look at now, neil. the reason is they have well off the their highs and they have a lot of ground to make up. you see other sectors rallying, money coming out of thereoking . neil: why would you look at them? i know they're well off the highs. there is argument to be made that was a bit too much punishment but in an environment you can't make too much money lending to people you got to wonder how that will play out? >> i always say, let use jpmorgan as an example. it is tough to bet against jamie dimon and his team there. so when you have an attractive entry point, i think one thing you will see from the large financials, neil, is m&a. they will be acquiring venture capital-backed companies out there, a lot of fintech companies. i think you will see a lot of growth in the large financials by acquiring smaller companies. so i think it is a great entry point. i would rather own something like financial trading 15 to 20%
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below recent highs than chasing the stock that is hot for this week. neil: you know what is interesting, this ended up not being a quarter with a deal with china. we could make the argument, a lot of investors hope we can make the argument a deal comes in the second quarter, if and when it does, what would impact be? >> the effect is positive to get it off the table. remember with this market, neil, we talked about interest rates rising as headwinds for market. we talk about interest rates falling as headwind for market. mueller report as headwind, a tailwind. there are some things out there. i think what investors at home watching at home should be focusing on, the underlying economy and fundamentals of companies they're investing in. right now neither one is overheating. i think there is upside in both of them, both the economy and markets for the rest of the year. neil: there is a lot of calm zen to you for such a young guy. that is all right. there you go. thank you, my son.
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>> thank you. neil: mike murphy. as mike was speaking dow still up 100 points. lyft shares continue to enjoy a post debut lift. people scrutinize, how it ends the day will ultimately matter. others say how it survives after today. not a bad offering price, not a bad lyft for lyft. after this. (indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade.
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neil: all right. thought there was more to that. didn't want that pregnant pause. i'm neil cavuto, "coast to coast on fbn. fallout from the president riding a good week, a good wave, talking infrastructure this hour in florida. when he does we'll take you there. former reagan advisor ed rollins says the president has to be careful about overplaying this as much as democrats who are licking their wounds trying to move on. some are, some aren't, a very good sage on these type of matters. good to see you, my friend. >> thank you. neil: the president obviously did have a good week. you could argue we don't have the report, democrats keep pointing it out. if there was collusion and mueller or attorney general barr correct findings he would have done so clearly. doesn't appear to be there, so where does this go? >> the vast majority of public will read it and i doubt many
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members of congress read a 300 page report, they never do on occasion. that will play out. the attorney general does not have to give congress the report. i think they will because it is smart politics. my sense at this point in time trump is free to certain extent to argue his accomplishments an strong economy one of the thins he begin campaign season. being in michigan, new jobs created. is a state we won by 10,704 votes. neil: i didn't realize that close. >> it was that close. neil: how is he doing in states he won by combined 70,000 votes? >> my sense none of them are in the loss column at this point in time. they will be hard-fought again because they're hard fought. i would think pennsylvania is much better off than he was two years ago. certainly wisconsin, michigan, two you have to fight for. democrats will have the convention in wisconsin. reality is, 30 states he has, not likely he adds any. also not likely he loses any if
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he focuses -- neil: you heard democrats, we have a chance in georgia. we could tip texas. what do you think of all that. >> they will not tip texas. some day they may get there. the bottom line beto made a run at ted cruz, a very good senator, in my mind but very unpopular senator. reality you win these one at a time. they're different. we don't run national presidential campaigns anymore. it is really state by state. he has much better team than he had last time. he won it. hillary lost it. this time he has people focused on 30 states. what i would do, running them, run them like gubernatorial campaigns. go to the seven or eight key states, get most important people in the states, governors, senators, run like a governors race. neil: we mentioned whether we get the whole mueller stuff behind us. they won't read the report when it comes out but their top lawyers will, go through line by
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line. lindsey graham is with me at fox news, one of the things he brought up he is not finished with investigations. including what he recommends, president should be an investigation how this investigation started. hear this and -- lindsey graham. >> sure. neil: indeed the president is open to your idea, senator to open a special counsel to look at prepare origins. any update about that. >> no, the reason i suggested that in 2017 this is highly emotional event. the republicans believe the fbi, doj, top people took the law in their own hands because they wanted clinton to win and trump to lose. there is a lot of suspicion, a lot of direct evidence i think of bias. let's have somebody like a mueller to look at the other side of the story. neil: he might be perfectly valid in that request, i'm just saying, are americans just investigated out though? >> i think they are. there is fatigue factor. we reached a point with the bushes, there was fatigue
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factor. jeb bush got affected. there is clinton fatigue factor. there is investigation fatigue factor. there may be things democrats want to focus on, country said didn't collude with russians, going back 10 years in his business is not something we care about. hopefully the new fbi, attorney general clean out their department. we don't want hearings for next year or two. we want to talk about good things, the future, not the past. neil: you're a good student of history. you worked with ronald reagan. a lot of people ask me, you know, president, market, economy, getting blame they were headed south. >> right. neil: might as well take a bow if they're going up. having said that you could make an argument he should be up ten points in the polls strong economy, report unemployment, given numbers for key groups but he is not. i suspect personal behavior stuff and tweeting stuff. what is holding him down? >> i think, i think it is
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question of holding him down. i think there is base he has somewhere around 40%, 40 to 45% which would end up being presidential vote with all probability. neil: is that enough? >> could be. depend on what somebody else does. doesn't look like anybody get 50% in the near future. four or five candidates run. if you get 46, 47, 48% you can win the 270 electoral votes. the reason he doesn't get credit, the niece media, don't blame the news media, every day a new story, doesn't -- every day there is something else. neil: sometimes he steps on it. >> sometimes he steps on it. there is not good strategic team that focuses. if i was running his campaign which i'm not, i would talk nothing about the economy, promises made, promises kept. neil: that is what reagan did. >> that's what reagan did. neil: it worked. >> it did.
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my sense he will be okay, still a long hard fight. fight is not over yes, fortunately for us who support i am he is fighter earns ed rollins. neil: ed rollins, former reagan chief. we have protests going on. the parliament failed to pass a measure the prime minister wanted to at least agree to disagree and let the brexit thing happen. it is not going to happen. and they're angry about it. they said there was a referendum three years ago. let's do it, for gods sake. they're upset and furious. it is not going down well.
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neil: all right. take a look at the lyft, no pun intended. lyft is, ride-hailing service, up 15%, 82.7a share.
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lyft is confirming it sold 32 1/2 million shares, more than previously expected, at around $72 a piece. keep in mind last week, two weeks ago, they were talking about offering price in 62 to $68 a share range. before that we were in the 40s, when this was, road show was beginning. no one new exactly where they would finally peg it. be that as it may, this gives lyft's total valuations something close to $30 billion with the appreciation just since the market debut about hour 1/2 ago. if that holds, uber, which is looking to pull the same in couple weeks, maybe that is little generous, that is already expected to have at least a 100 billion-dollar valuation. it could be decidedly more than that that doesn't say anything about pinterest, looking for offering of its own shortly thereafter. all the initial public offerings delayed because of the public shutdown, securities & exchange commission, had to write delay n
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their favor. again for lyft, a big, big jump up from the offering price of $72 a share. keep an eye on that. investors betting on a lot more of this as the year ensues, including for the economy. getted read from former obama economic chair, austan goolsbee, former ohio secretary of state ken blackwell, who deserves the credit. we always have raging debate whether barack obama's economic resurgence or donald trump's and austan, tip of the hat to them both. what do you say? >> yeah, look i agree with that. we've had this conversation before. my view, i said it when i was in the white house, i said it after i got out of the white house is that 90% of what happens in the economy has nothing to do with washington. driven by the private sector. that is how it should be. tip of the hat to both. the boom clearly began under barack obama. it clearly has continued under
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president trump. i think, let's keep our eye on the ball though because the growth rate has clearly slowed this last quarter. last quarter of last year, the first quarter we're in now. so let's not do anything to mess up what has been a relatively historically long boom. neil: it is interesting with the lyft offering, i caught a headline, ken, i found interesting, this is just a market watch headline, with the lyft offering the ipo casino is now open. in other words saying this is chancy what is going on here and a reflection of some froth. do you buy that, do you worry about that? do you think the administration should cool it about crowing on this because it could come back to bite them? >> no, i don't. i would do hat tip to both but i would wear a larger hat with the trump administration because -- neil: that is -- can fit that
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hat. as a fellow big head, that is debatable. but go ahead. >> the acceleration of the growth a direct result of a couple of initiatives. deregulation, you know, rolling back 22 regulations for every, for every two that has been initiated, that is one to 10 ratio. the tax cut. and i think, if nancy pelosi would get her foot off the brake, we can close the deal, the trade agreement with mexico and canada. and that will accelerate the growth and, and i think ed rollins in your last segment was right. we can then focus on job creation. americans working and the fact that we are in a strong leadership position. and i also think that helps us with our negotiations with china. neil: but we are slowing, we are coming off a little bit here. that might pick up. estimates for first-quarter
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earnings declined of three to 4%. they could be wrong. i grant you, there is expectations whatever we enjoy will be tamed a little bit. having said that, austan, a lot of people look at sustainability of these kind of market returns. what do you think? >> look. market the don't do well when we go through recessions. history teaches us that. you've seen the market does not do well when they think we're about to get in a trade war with china, in north america, with europe. now every day we don't have a trade war is a good day for the economy. so i hope they can sort out something, anything, in china. i'm pretty optimistic, that they will, because i think in their heart of hearts, the administration recognizes they cannot afford to have a big scare in the market at a time when the gdp is already slowing. neil: you do have to wonder, ken, the president with the trade deals and stuff he has been talking about they might work, they might get concession
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out of china but he is also talking about continuation of auto terrorists and like that scare europeans, could he score success with the chinese and ruin it all by going after europe all over again? >> i don't think so. i think success begets success. look at the end of the day, the chinese economy is slowing. even if we have to pump the brakes a little bit on the going of our economy, we still have a stronger economy, as a consequence, i think we're in a stronger position to close the deal with china. i think all fits. neil: china makes good on these concessions. and, austan, the history with prior presidents they talk a good game but they don't deliver, right? >> on that part i don't totally agree. when we had success, for example, we got china to stop manipulating its currency.
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we did that by getting all the allies together, going to china behind the scenes not trying big public humiliation. got them to stop doing that. neil: through the wto. >> what we've seen so far, don't go to war with no allies. our allies are kind of mad at tr against them before we then went after china. you know, i think it is worth remembering that these tariffs that we unilaterally put in, it hasn't been success begetting success. these have not been a success at all. the auto sector in the united states has slowed substantially. you've seen general motors announcing they're closing down major plants, and i think we, we need to take a step back and get serious here. when the economy's growing 3 plus percent a year, then you are afforded more latitude in making your pronouncements. the gdp growth for the quarter we're in now is under 1% a year.
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and if you're in a situation like that, you should not be threatening trade wars. neil: we'll watch it closely. gm is also opening up more factories and, vehicles and rest. we'll see how it sorts out. gentlemen, i appreciate it. we're looking abroad, protests going on in london, a lot triggered by something theresa may said earlier the take a look. >> mr. speaker, i fear we're reaching the limits of this process in this house. this house, this house has rejected no deal. it has rejected no brexit. on wednesday it rejected all the variations of the deal on the table. and today it has rejected approving the withdrawal agreement alone, an continuing a process on the future. this government will continue to press the case for the orderly brexit, the result of the referendum demands. neil: they all talk over, they could be a guest on fox
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business. anyway, going nowhere fast. this is the third rejected brexit measure, almost in as many weeks. deirdre bolton following all of this right now. all these protesters they want out i guess but easier said than done. >> easier said than done. it is all about how. one thing for the uk to leave but actually have a plan in place. customs, how do people cross borders? when we say customs, sometimes it seems abstract. neil: right. >> there is first-hand reporting people are worried they can't get their medicines. so many things affect citizens lives. neil: didn't they settle this over the last three years? >> not only in the last three years. even if you want to go to the 11th hour, wednesday night, parliament met. they voted, you heard pm say it, eight propositions, not one of them passed. neil: wow. >> parliament is going to meet again on monday, go through the same kind of exercise, try to come up with some option they can get a majority vote on to
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plan how the uk can leave the eu so all anybody wants i think at this point is orderly brexit. because without one, then you get what people call this crashout. which is april 12 inn. the uk is out. none of these trade agreements. none of how people cross borders, nothing will be established. neil: what about the april 12th deal? it looks pricey. they could push that back further. >> that is the hope. we also know there is an emergency eu council, summit meeting, two days prior on april 10th. most people think the eu would actually allow the uk to have a little more time with the exception of france. keep in mind 27 countries in the eu would have to agree to more time. macron is just fed up with everything. said don't assume we give you more time. neil: by the way he should focus on his own -- >> all the protests and people
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on champs-elysees. neil: you speak french. >> i go to the restaurants. neil: that is where they stand right now. they don't stand anywhere. they likely push back the april 12th deadline. not just brits who are worried. despite poker faces or whatever french or belgian phrase for poker face. if england bolts, survives this for another day in britain perception you could break away from the european union and it isn't the end of the world. there are a lot of iffy countries looking to get out themselves. that could include italy, spain, portugal, might look at britain's exit when that comes to pass, we will try it too. don't think those this brussels, heart of european are not nervous too. they're just not showing it. more crowds are protesting. more after this.
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s. neil: bonds year-to-date, it has been incredible run, hasn't it? we're at record low interest rates, if you're in debt that is all good news. cheaper for you to carry the debt, if you're saving, looking at paltry cd rates, and the like, that is not your best friend, for those retirees, heading into retirement relying on fixed income, you're fixed at very low rates that don't mean a lot of bang for the buck. to "barron's" editor jack hough. jack, this is the rule of thumb for a while and it will not change innings immediately. >> you summed it up nicely. if you prefer safe money, cd rates, we almost had good news. you were seeing 2% rates at certain savings accounts, banks were hungry for money. we were on our way from 3s to
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the 4s. that is all done. bond rates are back down. low rates are around a while. money for stocks, there is not a lot of competition, that will make out fine in the stock portfolio for a while. neil: people seek out stocks with nice dividends. mcdonald's comes to mind and host of others. for investors playing this, it can lead to some reckless behavior, can't isn't. >> it can eventually. right? but between, let's say we get a big kind of bubble, between now and then it is good times for people who own investable assets. that is what happens eventually. i don't see signs of craziness in the stock market, the housing market. the bond rates coming down, that is bond market speaking ill of the economy behind its back now. you have to watch for signs the economy is weakening. 10 years into an economic expansion i would be surprised it wasn't weakening. once we see the signs it could
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be years of continued modest economic growth and stocks keep chugging higher. i don't really see a lot of warning signs here for investors. their bubbly behavior or reasons to bail out of the stock market. neil: if you think about it, even yield on 10-year note, it has not been through a wild or whacky trading range from the beginning of the melt down to now. i'm wondering if we just, i always hazard saying it is different this time, but it is remarkable this time. how long can you be defying historical norms? >> i think we're testing that now. one thing we've been doing for the past 10 years, wow this economic expansion is lousy, too slow. maybe we get to the end, we'll look back, maybe slow isn't that bad. keep expansion going for a long time. neil: that's right. if it were faster, it would have run out, you know, energy by now, because it has been rather tepid. that could add, let's just play this game, maybe years to it or what do you think?
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>> oh, i think you could easily get couple years from here. i wouldn't want to bet much more from that but even the next downturn, that's coming, right? we know this expansion ends pretty soon. the question will the next downturn be severe one? i don't think so. i don't see signs of reckless excess we were talking about. that is usually what leads to a big crash. neil: always good talking to you, jack, jack hough, "barron's" senior editor, big cheese there. in asia right now, hang seng market overnight up better than 3 1/2%. some are saying that is based on growing optimism, stop if you heard this couple hundred times before of a trade deal between key washington economic spokesman for the administration and their chinese counterparts going on as we speak in beijing. edward lawrence with the latest on that. hey, edward. reporter: edging much closer to a deal with china.
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u.s. trade delegation heading back to the u.s. after days of talks with china. the china delegation will end in washington, d.c. both sides taking group pictures n a tweet treasury secretary steve mnuchin called the meetings constructive. a statement from the white house says the two parties continue to make progress during candid and constructive discussions on the negotiations and important next steps. at his rally last night in michigan, president donald trump says, the negotiations are moving along. >> help us fix our broken trade deals which are coming along really well. we have our team right now in china. they just arrived. china. china. we've gone up. they have gone down but we want them to be healthy. we want them to be happy and healthy. reporter: we've gone up. they have come down. white house economic advisor larry kudlow saying that the u.s. is willing to drop some tariffs but the to hold others in place to make sure the chinese follow through. u.s. trade representative robert
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lighthizer told congress, china has asked for guaranteed access to certain markets in the u.s. he also says that the chinese want tariffs gone, never to return. the u.s. wants to use those tariffs as enforcement, to make sure china follows through with any agreement. china went farther than it has in the past in these talks. chinese sources telling us they were waiting to see if the mueller report hurt president trump. now that it is out and china these feel they may have to deal with this administration's trade policies, possibly through 2024. they are now more serious about making a deal. neil: neil? neil: interesting how the mueller report could have played into that. edward, thank you very, very much. edward lawrence in washington. if we get anymore on this including little flashes or bullets, someone says things like talks are constructive. direction of these markets are kind of contingent on that. for today a little contingent
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what is happening with lyft the initial public offering here, that has a lot of tongues wagging, could have, should have, even though the stocks up 12% from the $72 a share offering price. this company has a valuation now of $30 billion. we'll be looking into that. also looking into the world post mueller, this time going after the president's business empire. this time over actions committed decades before he became president. yeah. it is still on, after this. i'm working to keep the fire going
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>> on every record, in the history of the trump organization. we'll find something somewhere along the lines. a mistake must have been made. these people are sick. neil: the president is not happy with the constant investigations going on, firing back at democrats as they seek financial records going back years, decade of the trump organization. those investigations continue with variety of district courts all around the country. the biggest of course in new york. charlie gasparino following all of the above. good to see you. >> very sick, sick people. neil: what he is saying prepare
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yourself for post-mueller because this -- >> this is some validity what he is saying. they couldn't get me on this. now they're going after this. i will tell you, this is something i know, i know a lot of people very close to trump, he has a kitchen cabinet. you should know this. are you one of them, by the way? neil: no. >> he has a kitchen cabinet at mar-a-lago. neil: right here. >> we've been, i read that somewhere. but in any event he has real kitchen cabinet but not of reporters, people he consults with at mar-a-lago. neil: kitchen cabinet people not officially cabinet members but very important. >> there is slew of them. there is tom barrick. neil: right. >> that is ike perlmutter. there is chris ruddy from newsmax. there are a few others. they all congregate in mar-a-lago when he is there. he will be there this weekend. this is one thing they all said to him. i'm not attributing this
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statement now to any specific person. people in his kitchen cabinet said to him for years. for years, donald trump has been telling people that russian collusion thing would not amount to much a long time. his lawyer, ty cobb would advise him of that. the people in the kitchen cabinet, this is not your biggest worry, donald. he is using it open up to the business practices. that is where you should be worried. you were in the real estate business. neil: that was chris christie's point. >> they were saying liability that does exist for you, the threat that does exist for you is not collusion which is always a heavy lift, not even obstruction which is gray at best gray. it panned out that way what we know about the mueller report. the biggest thing what he finds on your financials. and, if you notice that, if you notice none of the financial stuff came out in the summary. what we don't know inside of the
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mueller report -- neil: he parceled that off, right? >> whether mueller says here is what i have given to the southern district of new york, u.s. attorney for southern district which is where trump tower is in the southern district, where there might be potential criminal liability. on top of that you have michael cohen making pretty interesting statement. it was under questioning from aoc of all people. financially literal person out there, made the best, gave the best questions involving trump to michael cohen i believe. it wasn't all this histrionics. tell me about how, what he did with certain real estate deals and insurance deals. michael cohen said, what i'm paraphrasing, along these lines, in order to get a better tax bill, would deflate value of his holdings. in order to get more insurance coverage, he would inflate the value of his holdings. neil: can i ask you a dumb question on any of that? does it matter, or can you go after a sitting president, or do
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you wait until after he is president to pursue it further? >> the way i understand it -- >> these are transactions occurred long before -- >> some of this might be null and void, misses statute of limitation all that sort of stuff. neil: right. >> these are, hard cases to prove, white-collar crime. neil: you have to get into intent. >> he does have a lot of accountants up there and lawyers, that had to go right up to the line. neil: okay. >> but yes, he can be charged, when he is out of office. they can investigate now and charge him when he is done. neil: we shall see. charlie, thank you very, veries much. lyft still doing pretty well off the highs post the offering but still doing very well for the holders and virtually everyone else. they're making money hand over fist. for how long? after this.
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neil: we are just learning linda mcmahon will resign as small
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business administrator. blake burman will have more on that in just a bit. she's been with the president from the very, very beginning of his administration, so one of the longer serving cabinet members. she is stepping down. we don't know the formal date of that. we will keep you posted. keeping you posted on lyft, one of the more eye-popping initial public offerings of this still relatively young era. a lot of these were pushed off, we had the government shutdown. lyft the first big one to debut and what a debut. it's made a lot of folks very, very wealthy. it has helped the market cap of the ride hailing service. at one point, at almost $30 billion, right now a little bit under that. we will give you a little more of that with susan li and axioss wire chief editor, glenn hall. glenn, i will begin with you on the importance of lyft coming out of the gate strong for very closely scrutinized initial public offering. as it goes, so potentially others. you buy that? >> there are others in the wings
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coming on wanting to tap into this market while it's still riding hot. you know, it sets an interesting standard. i don't think we have ever had an ipo of a company with this big of a loss going in, right. neil: almost a billion dollars. >> that's right. they are telling a growth story, doubling revenue now at about $2.2 billion and if you think about the ride sharing community, it's still not even partially tapped, right. there's a lot of potential growth. neil: what do they say, it's 1% of the overall vehicle market. i don't know if they were right on that. susan: miles driven on the road, according to uber. that sets a precedent for other tech ipos set to list as well. if you will get a valuation for a company like lyft at $24 billion, which is $10 billion more than they had in the private market, what does that mean for someone like uber, which is looking for a very richly valued at $120 billion. i think this is always going to be a great first day but just like snap, you know, pricing at 13, getting 18 on day one but it's the prove me when you become a public company and how well you do over that long term,
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whether or not you actually start making money because you know the patience of investors is only so long. >> i would disagree investors are losing patience. you look at a company like tesla. every quarter they lose more and more and more money and investors are still in. they have had a rough time over the past few months, but that stock has really put a lot of short sellers out of business. susan: you generate the revenue to justify it, yes. if you increase the user numbers, but this is like a pure play, right? this is all about ride hailing, period, whereas uber is more diversified. neil: sometimes they can accept losses, as was the case with amazon, for many years, it looks like you're building something. this has often been referred to as amazon with wheels. i don't know if that's the case here. the market could look the other way. >> what's different this time -- neil: famous words. >> it's always different this time. always different. this is about the sharing economy, right? not just ride sharing, but the sharing economy in general. it's a new phenomenon out there. there's expectation that it continues to grow. you think about lyft and uber, they compete without a lot of assets in the game.
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so that takes a little bit of the risk off but still, that battle they are fighting in terms of market share in the united states and the billions they are spending against each other -- neil: they do have cost issues. if their workers are actual workers -- susan: employees with benefits, yeah. for a long time, people thought ride hailing was a winner take all kind of market. it's proving, well, there are two players that they can absorb right now, uber and lyft. you would think in this cutthroat competition, how much they are subsidizing, i think lyft is subsidizing $2 per ride. how much longer that can continue on for and ultimately winner take all and does the bigger player ultimately win when uber comes to market. >> it's kind of untested in terms of what happens when the economy does really start to slow down. none of these ride sharing apps have been in that situation in a big way yet. neil: all right. this is the froth at the end of the quarter, if you want to call it that. amazing quarter, if you think about it. for the s&p, perhaps one of its best quarters in a decade.
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similar success with the dow, the nasdaq. what does that tell you about the rest of the year? >> you have to look at this in context. certainly the s&p's first quarter is big, stock markets all over the world, we talked about it this morning in newsletter, have really rebounded from those lows we saw last quarter. you also have to remember, that's where they came from. you had the worst quarter that we saw in the fourth quarter last year, since i think at least going back to the great depression, worst december going back to -- neil: which is real? what happened in december or what happened in -- >> that's the question. then you also have to look at the number of buy-backs. our main story this year -- excuse me, our one big thing this morning was the number of buy-backs growing past the pace we saw last year, which was a record year by hundreds of billions of dollars. companies bought back close to $1 trillion of their stock. neil: that shrunk a lot of the supply as well, right? >> exactly. neil: even more ipos. >> precisely. we are seeing a lot more of that and even more $18 billion more so far this quarter than last
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quarter. a number of -- neil: for what? >> for stock buy-backs. $18 billion more so far this year than at this point last year. susan: i'm wondering how much of that is because of the cheap money with the treasury yield -- >> with the fed on hold. susan: yeah, the fed on hold. there are a lot of reasons why they are using that cash. by the way, also the tax cuts as well to buy back their own stock makes the stocks look better. >> the companies -- >> it's a temporary stimulus bill. they can't continue the buy-backs forever. eventually it comes down to profits and fundamentals again. right now they are okay but we are starting to see signs of weakening out there. neil: i'm looking more when the first quarter earnings start trickling out. this is going to be a negative quarter, right? susan: 3% down. we might see an earnings recession which means two quarters of falling sales and profit. i would say it's a tough compare. last year was a record year -- neil: there's going to be people looking at revenue, whether that momentum is slowing. we haven't seen much signs of that or many signs of that.
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what do you think? >> i think absolutely, you have to again, look at everything in the big picture sense. you are seeing slowing but you make a good point. that was from a record year. companies are punishing or sorry, investors are punishing companies less for negative guidance. more companies over the past five years have guided negative and investors have sold those stocks down less than they have historically. susan: because they usually guided down lower so it's lower expectations to jump over which makes earnings look better. >> right. but usually investors sell on those numbers and they haven't this year. neil: they have nowhere else to go. isn't that the argument? by the way, the president is in florida right now. he's talking up infrastructure progress there under his administration. i mentioned one of the things, you can help me with this, glenn, he's saying what's going on in the markets, what's going on with these guys, all of that is positive noise and disrupts the whole mueller thing for which he feels he's been fully vindicated. how much does he factor into
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this market rally? >> well, there's been a lot. remember, we were talking about the trump trade not too long ago and that has persisted longer than people had thought. we saw a couple bumps along the way but the market has generally, as you were saying, shrugged off some of that negativeness and it's all seen as largely external, the problems. the headwinds coming from china, do we get a deal or not get a deal, that's driving optimism, the hope -- neil: the markets later picked up, it appears the president got a pass -- that's the wrong word, but didn't have to worry about the mueller report. because they feared, no markets right or left like constitutional crisis. susan: no. >> not very popular. neil: not popular. >> for 2020, the economy and the markets need to continue going in order for trump narrative like that to be of value to the whole, you know, republican party. neil: let's play that out. 2020, where are we? susan: oh, wow. we discussed this before. with this type of economy, it should be a runaway easy --
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neil: absolutely. he should be up by ten points in this environment. susan: that's probably a more realistic blowout, i think, in 2020 than he -- he will probably win. neil: the reason why he's not up ten points is all this other stuff. susan: the noise. neil: the tweeting and that just dials everything back. >> you have to also look at the real economy. we talk about the stock market and rightfully so, but a lot of people are still struggling. lot of the same folks who were struggling and voted for the president because he said he was going to make a lot of changes are still struggling. you're not seeing movement on the dial of a lot of these low income folks, particularly in rural areas. neil: demographics have improved, right? record high employment, record low unemployment. susan: wages have gone up, by the way. neil: african-americans, hispanics, whathave you. will that translate into more votes? >> that's the thing. the needle needs to move. the statistics have improved. you are seeing a continuation of the theme that was there but it's the same theme that was there. we are also still seeing a lot
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of issues in rural communities. we are still seeing jobs disappearing. you are still seeing factories closing. a number of businesses reducing -- neil: i just wonder, could he win in pennsylvania, wisconsin and michigan, minnesota again in this environment? it would be tougher, wouldn't it? >> it would, but it's going to depend who the democrats nominate. neil: you're right about that. the wild card is brexit, for the 700th time. they need a new name. these are protests, apparently these were planned a couple weeks ago. they just so happened to correspond with what's been happening in parliament which is not much. they rejected yet another deal the prime minister put together. it means even the april 12th official departure might be in doubt. it's just a mess. where does this go? susan: that's a great question, isn't it. the pound is moving as well. neil: how bad is that? every time she speaks they are talking over her. susan: that's how it works in parliament. she's a tough lady. i would say for the uk, hard brexit, they will probably go into this eu emergency session,
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probably having to give more concessions, pay out more billions to leave the european union. at the end of it i think it will be delayed. eventually they will get there. >> probably has to be a long delay, because now you have a leadership challenge in the uk to take this forward. they are going to have to allow time for election and all of that, and the eu doesn't want to go through this again. neil: they also don't want to leave. >> there's a decent chance they don't do it. susan: i think that would hurt their credibility a lot. >> i'm sure. neil: in the end their concern, if britain leaves this elite club which very few have the qualifications to be in, and they realize britain survives, they get nervous that others will bolt. >> no, that's exactly what it is. you've got these yellow vest protests in france. you have a lot of angry people in places like hungary, poland, where people are really upset. you have this thing in italy which is bubbling and a lot of people are talking about.
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italeave, whatever you want to call it. there's no reason for the eu to make this easy for britain. neil: wish my people had come up with that. i'm going to write that down. guys, we shall see. right now, something in what these guys are saying because we are up 151 points. lyft shares continue to surge. as for britain and where they go, we don't know. what we do know is it's still a mess. what we do know is the president is continuing the post-mueller enthusiasm he's been building. he was capitalizing on it last night in michigan. this time talking infrastructure in florida. more after this.
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ifor another 150 years. the fire going ♪ to inspire confidence through style. ♪ i'm working to make connections of a different kind. ♪ i'm working for beauty that begins with nature. ♪ to treat every car like i treat mine. ♪ at adp we're designing a better way to work, so you can achieve what you're working for. ♪
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optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. neil: linda mcmahon is leaving the trump administration. she's going to resign as head of the small business
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administration. blake burman has more on that. hey, blake. reporter: hi, neil. this just coming in within the last few minutes from a source familiar with the ongoing matters. linda mcmahon will indeed be leaving as the head of the small business administration. she's been in the trump administration for a couple years now in that role, been praised by the president consistently throughout her years within the administration for her work. some had speculated here in washington that as the different cabinet members moved in and out, maybe she would have moved on up in the administration but we are hearing that it is probably sooner rather than later that linda mcmahon will be stepping aside as the head of the small business administration. as for her next step, what she may or may not do in the private sector, we do not know. as you know, linda mcmahon is the wife of vince mcmahon. they run the wwe, a wildly successful business venture in its own right, though we are told in the political side of things, another source familiar
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with that matter says that it is possible that mcmahon could be joining one of the super pacs that supports president trump. so bottom line here, there is going to be an opening for the head of the small business administration as linda mcmahon we are told is going to be stepping aside from that post. neil: real quickly, i'm curious about this. you are always ready for these questions out of the blue for me. the whole betsy devos dust-up about taking money away from the special olympics, the president obviously overruled that and is putting the funding, i think $13 million, back in. how did that all go down and the back-and-forth? the president only became apprised of it yesterday morning? reporter: it is the start of baseball season. is that a cavuto curveball? neil: i want to see how smart you are. reporter: a 12-6 hook. look, at the end of the day, this is a budgetary issue that was submitted by the department of education cutting about $18 million or so of funding.
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the budget gets submitted up to the hill. the hill is the one that eventually decides this and the president came out to the south lawn, just said look, i talked to my people about this and i'm overriding it. if nothing else, this was a major p.r. blunder for the administration because again, they don't determine what the funding is. it is capitol hill that does it. but clearly, the president recognized this and thought if nothing else, he's got to get that headline out of the front page of the news cycle. neil: all right. continuing the baseball curveball approach to you, this recent threat the president has of shutting down the border. what is he basing that on? how likely that is? reporter: i think the news is we are getting an actual time frame. we heard the president issue this threat on twitter, within the last couple months he's brought up this possibility and even last night during his campaign event he talked about shutting down the border, but the difference today is he said next week. so now we're sort of getting
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this time frame and it's fast, next week is approaching. it's friday. how realistic is it? i think you saw in the interview with stuart varney, john bolton, national security adviser, did not want to touch this one at all. we'll just have to see where the white house and the president goes with this one as there's a whole lot of factors at play here. you have the usmca, trade deals, et cetera, potentially wrapped up with this as well. neil: he's in florida, talking infrastructure. he thinks that's an area both parties can find agreement on, right? reporter: yeah. you know, it's interesting, when you talk about infrastructure and this project, at least where the president is right now, in lake okeechobee, i can tell you from someone who worked six and a half years in the miami market, that lake okeechobee everglades restoration funding, supporting that area, year after year after year they talk about this thing. it is a very political issue there in florida. the democrats and republicans all up and down state offices run on it.
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the republican senators, marco rubio and rick scott, rick scott, the former governor, wants $200 billion in funding with federal dollar-for-dollar matches, but you put up 200, we put up 200 and they want that to continue. the last number that i was given was $63 million so there's clearly a divide between what they want and what the federal government is willing to give. but as one source told me, last night, the president said there in michigan great lakes restoration, let's do this thing. they are hoping rick scott or that president trump says the very same thing today down at lake o, as it relates to lake o, fixing those problems in everglades restoration. neil: i might point out the yankees have won their first game. might as well wrap up the season now. it's over, my friend. reporter: my marlins are only one game back. that is progress. neil: thank you very, very much, blake burman. he handled everything we threw at him. we threw at him quite a bit.
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let's take a look at lyft. it's still doing quite well in its debut offering. a lot of others claiming to go public. they are all looking at that as well. if this is having momentum, maybe we'll have similar momentum. more after this. what do you look for when you trade? i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪
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neil: all right. the president is in florida right now at lake okeechobee talking about infrastructure. let's listen in. >> then we'll go around the horn. thank you very much. >> mr. president, thank you for your support for florida, not just with this but amidst the hurricane and other things that we're working on. we really appreciate it. really, if you look at what we need to do, you have okeechobee, this goes all the way down really to florida bay, the everglades and our estuary. this is the first part -- neil: governor desantis and marco rubio there, the former this infrastructure effort to support funding for a dike here
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that he says there could be a lot of common ground between republicans and democrats on that. we will continue monitoring that. also continuing to monitor new details coming to light about that boeing crash, at least the most recent one. fox business' gerri willis with more. gerri: that's right. official investigating the deadly ethiopian air crash believe it was caused by the misfiring of the stall prevention feature called mcas. we talked a lot about this on the network. the story according to the "wall street journal." the findings based on data found in the plane's black boxes provide a possible link between the ethiopian air crash and lion air crash just five months previously. ethiopian authorities are set to release the preliminary report in the coming days but officials there are already saying there are clear similarities between the two crashes, both of which combined claimed a total of 342 lives. boeing stock getting hit hard for the about 13%
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since the accident. that wasn't enough to bring shares down for the quarter. the shares up, in fact, about 20% for the quarter. you can see they are also higher to finish out the week, due in part to the company's unveiling of a software fix to that same stall prevention feature on wednesday. back to you. neil: thank you very, very much. in the meantime, here we are learning chicago wants the amount of money it spent looking into the jussie smollett case. as you know, that was entirely dropped by state prosecutors, city prosecutors, i should point out. a criminal defense attorney says the actor used it to further his career and the police union is saying he should pay up for that. good to have you. where do you think this is going? >> i think this is going to be a civil lawsuit. i think the defendant's going to have to pay for what he did. i think the city is not very happy with the way that the criminal prosecution was handled
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and as a result are trying to make up for it and save some type of face. neil: obviously if he were to pay that, he's acknowledging guilt. he's not done that. i know prosecutors have said that the dropping of the 16 charges against him did not mean he wasn't guilty. still, it's very confusing. is there a danger leaving aside your views on the subject, if he pays this, that he is acknowledging guilt? >> yes. 100%. just keep in mind, he already did pay the $10,000 bond. and he did some community service which shows that there was some level of guilt because if somebody was innocent, they would fight all the charges and make sure the public was able to see and hear everything. neil: where and how far does this go? the feds are involved, the fbi investigates so you have local prosecutors going one way, the police union and the mayor's office going the other way and along comes the fbi and who knows who else. this could drag on awhile,
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couldn't it? >> yeah, definitely. at the end of the day, the defendant may not face any jail time. it's all about money, i guess, at the end of the day, and saving face. neil: all right. we will watch it very, very closely. thank you. let's take a look at lyft. it's probably one of the more telegraphed and highly anticipated initial public offerings of the year. just to clarify here, charles brady, who follows this stuff, was giving me basic math lessons to say how much this value means. at $81 a share, for example, times the number of shares outstanding, $291 million. that would give it a value of a little bit north of $23.5 billion. i think i said close to $30 billion before. what charlie is telling me is you're wrong, i'm right. more after this. minimums and fees. they seem to be the very foundation of your typical bank. capital one is anything but typical.
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neil: all ssion in this market, sign the bull is running free and running wild. i'm talking about lyft, the ride sharing service which is up close to nine bucks from its offering price of $72 a share. now it's about 12% on top of that already, 48 million shares changing hands. a lot of these enthusiasts should get a moment back to reality from marketing professor scott callaway. says lyft might be a heavy lift for the long run. good to see you. your concerns are? >> my concerns are this is a company -- so is this a great company or is it wildly overvalued? the answer is yes. this is a company that assume it continues to grow at these incredible rates, it might at some point be a $10 billion doing $1 billion in ebita. a dozen times in the prospectus they use the term network
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effect. there's no network effect here. they could get scale but when you search on google, you inform the algorithm for the next person who searches. that's a network effect. there's no network effect in lyft or uber. they entered into consensual hallucination with the investment marketplace that this is a company that will benefit from network effects. it's just not there. neil: what about scale effects? it's a 1% market right now, you talk about all the vehicles out there, if they can have a greater percentage of that beyond 1%, which is almost inevitable, we haven't factored that in. >> that is also wildly optimistic that the sharing market in automobiles grows to be $200 billion or $2 trillion which it could but this is what they have. what is the single point of differentiation from lyft than from uber? there is none. sometimes when you call lyft, they turn on a lyft light instead of their uber light and they are about to get another player into the marketplace that has access to even cheaper
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capital. what i think you see is a future of a pricing war that maintains negative margins. when you take a trip in lyft and they charge you 12 bucks, they are really losing, it's costing them 20 bucks. it's economically irresponsible to the consumer not to take lyft but for shareholders and investors, at some point when the music stops, this is going to be ugly. neil: unless they moved to self-driving vehicles and all of this, you take the humans out of it. you heard all that. >> but it's not as if the drivers are paying a lot of money right now. at the end of the day -- neil: those drivers are employees, no longer contractors, a lot changes there, too. >> but they're not. that's a key point. what lyft and uber are now is an incredible transfer of wealth from drivers to riders. at some point, you are probably going to have to -- we talk, they use the term renewables, they use the term carbon offsets. meanwhile, they have to move their road show from san francisco to new york because protesters representing 98% of the work force, the 1.4 million
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drivers, were protesting in front of the road show. this company has real problems. think of the last time there was an ipo where people representing 98% of the work force were protesting the road show. neil: they are getting a piece of this, though, aren't they? >> let's talk about that piece. if you have driven 10,000 rides, you get $1,000 or a dime a ride. if you have driven 20,000, you get $10,000, that's 50 cents a ride. i would argue these companies have figured out the ultimate ninja move to kick the middle class in the groin by saying with 4100 employees, and our investors, we are going to split $25 billion and the 1.4 million drivers get between $8 and $15 an hour and flexibility. and that's something but we used to have an economy when you have those sorts of spoils, they were spread across everyone. in my opinion, this is another example of kind of a structure where we have figured out a way, the ultimate have and have-nots. neil: the haves are the two joint owners.
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they are hard to push out. >> they can't be pushed out. another two class shareholder company where they decided if you are a shareholder, you are in the back seat. i may occasionally glance at you in the rear view mirror but you don't have a say in where the company is going. neil: let me ask about how it has propelled interest in the market, set up, whether or not you like what's going on here, for other ipos. the bullish argument is a lot of companies are buying back shares so if you think about it, there are fewer shares available to investors today, these become available, they hunger for them, that's a bullish development. you say? >> the key to any irrational price that a product can garner is the illusion of scarcity. there's half the stocks publicly traded there were 20 years ago so there's fewer stocks. in addition, because of the dynamics of big tech, most promising young companies are either killed in the crib or acquired. so there's just fewer new ipos coming to market. if you can get out, you are a luxury product by virtue of the
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fact you go public, resulting in what i think are irrational multiples and frankly, being private right now is all of the taste, liquidity, incredible valuations with none of the calories, none of the scrutiny, none of the people like me getting a look at the financials. it used to be great to be public. now quite frankly, it's great to be private. neil: what about all these technology companies where it's not great these days to be one, on the street a lot of shares have come back but they seem to be a focus for everything from invasion of privacy to redlining when it comes to housing and all that, in the case of facebook. are they political targets now? >> i would argue that they are not even targets, that there's immunities kicking in. we have organizations that have biomechanically addicted our teens, engaged in incredible tax avoidance. google paid more in fines in europe than they paid in taxes. we have content that a lot of people would argue incents acts of genocide in southeast asia
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and they are not subject to the fraction of scrutiny you are exposed to. we decided that these companies are subject to a different set of standards. i would argue this is long overdue and it's finally immunities kicking in. neil: that's a little bit different now, i guess, that republicans and democrats appear to be on the same page in going after them. >> this could be the first bipartisan issue. i wrote an article in esquire about the power and dangers of big tech. on the same day i heard from senator warren and senator cruz's office. how often do you hear from those two people on the same issue? this could be a bipartisan issue. neil: the ringleaders this year, it looked like they were beaten down. they have come off their lows from last december. if the markets are worried about this phenomenon you are alluding to, they have a funny way of showing it. are they whistling past the graveyard or what? >> again, are these companies bad for the planet, bad for society, or great investments? again, i think the answer is yes. i don't think facebook is especially good for our teens or especially good for our
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democracy -- neil: you think it could be both, right? >> the business model is supernova and unstoppable. there is nothing in facebook's numbers that would indicate all the headline news and scrutiny they are coming under. as a matter of fact, they will continue to absorb and incur these fines purposefully because their gross margin on their business with this growth is worth enduring multi-billion dollar fines. if i said to you okay, the parking meter's $100 an hour but the parking ticket is 25 cents, you would break the law. that's what these companies will continue to do. neil: very interesting. professor, very good having you. he does make you think. the president, by the way, we were mentioning, he is talking about the health care deal in florida right now. he thinks one can be had. he surprised a lot of republicans right after the mueller report was released to say they are going to target health care. that has been sort of like the third rail for republicans and a big reason why democrats picked up 40 seats in the house. lot of those republicans are
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saying before you push efforts to repeal obamacare, it's probably a good idea that we have something to replace it. they don't. he's still pushing the fact that they will. therein lies the rub and the divide. more after this. imes a day. times change. eyes haven't. that's why there's ocuvite. screen light... sunlight... longer hours... eyes today are stressed. but ocuvite has vital nutrients... help protect them. ocuvite. eye nutrition for today. ifor another 150 years. the fire going ♪ to inspire confidence through style. ♪ i'm working to make connections of a different kind. ♪ i'm working for beauty that begins with nature. ♪
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-- something that is going
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to be much less expensive than obamacare for the people. i'm not saying government. i'm saying for the people. and we're going to have pre-existing conditions and we'll have a much lower deductible so -- and i have been saying it. the republicans are going to end up being the party of health care. thank you very much. neil: all right. the president in florida today talking about infrastructure but he was addressing health care. right now he's talking about what the republicans will have. they don't have it right now. that was a source of concern to some republicans who said after the mueller probe findings were originally released that it maybe was not a good time to maybe step on that and talk about a health care plan that technically, they don't have. the administration is ready to move to repeal obamacare, something that would directly affect the 20 million or so who enjoy the affordable care act or at least have coverage through it. right now, if that goes away, republicans have nothing to replace it. there has been talk about an interim program in effect that would help them until whatever
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plan the president talks about would come to fruition but right now, they don't have a plan. it's a big worry. so the campus correspondent emma michelle joins us and democratic strategist david brown and america rising pac senior adviser alex will. alex, i will begin with you on this notion that, you know, the president is talking a good game. he might be very sincere in saying that republicans will come up with something that will be meaningful on the health care front, obviously making clear he doesn't think obamacare is that, but they don't yet and that could be a problem. >> well, i think the president is feeling a lot of wind at his back from after the mueller report. i think he feels that he has the political capital potentially to take this on. neil: but he doesn't if he doesn't have a plan, right? >> i think it's in formation right now. neil: well, i'm trying to lose weight. that's in formation. >> the general parameters that he's outlined, keeping pre-existing conditions, keeping deduct jailableibles loeshgw, t
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popular with the american people. neil: i'm wondering if this reignites a debate that could be a pox on both parties because they remind the american people, those that have a plan, they don't think much of for the time being, and those that don't who are oned dering what either party is doing to work with the other on producing something. what do you think? >> well, i think the president is getting pretty bad political advice heading into 2020 if he wants to attack the affordable care act. yet again. we saw how this played out in 2018. probably most democrats running in that midterm election would point to health care being the single most important issue to their voters in their districts. the fact that the president and his department of justice just i think it was last week took a position again in the case in which essentially, they are arguing for a full-scale repeal of the aca. by the way, in so doing also getting rid of those protections for pre-existing conditions. that's the sort of issue that really drove democratic voters and also suburban women and all the other voters who flipped for
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democrats in 2018, helped drive them to the polls. i don't think the president is thinking this through. i also was really struck by leader mcconnell's comments, i think today or yesterday, in which he essentially said to the president hey, if you want to take this on, that's on you, but i'm not going to carry your water this time and good luck negotiating with speaker pelosi. neil: the bottom line is that timing is everything. i'm wondering if it was bad timing. i think the president is genuinely and sincerely interested in finding a plan that will work. he's not a fan of obamacare. that's hardly a fox alert. but if you don't have a plan at the ready, you are just going to invite more trouble, aren't you? they lost 40 seats in the house because of this. >> well, it's going to take a big push from congressional republicans to get this through and to put some teeth into this plan. neil: are they capable of doing it? i'm telling you, for years they talked about it. i don't know what it is. they can't do it. >> but so far, we're seeing that people are dissatisfied with the concept of socialized health care. i don't think it's too much of a stretch to say that the republican party could be the party of health care, because we
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like free market solutions to problems. neil: you have to have someth g something -- >> they do want a solution but we want it to come from the free market which is the right place for a solution to come from. neil: we have a news development. larry kudlow says that he wants to immediately see the federal reserve cut interest rates. this echoes positions that people like steve moore, the president's appointee at the federal reserve, said forget about just holding steady on rates. cut them and cut them now. what do you make of that, alex? the signal the administration is sending here? >> i think that the president wants to keep the continued, you know, strong economic growth going, going into the 2020 cycle certainly, because the economy is a huge factor for people when voting. i think right now people are feeling generally satisfied with where things are going. i think if the fed were to raise interest rates, that would put a real damper on people's expectations, on people's feelings about the economy and their willingness to invest in
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new projects, new businesses, buy new homes. neil: you don't think if the fed were to act on that and cut rates, leaving aside what it would look like in succumbing to political pressure, i know a lot of investors, they are frantic to begin with, they are nutty, actually, no matter their political persuasion, they might read into that uh-oh, something is up with the federal reserve which was willy-nilly raising interest rates as early as last year, now they are reversing that. they must be panicking. what do you think? >> well, i think you know, no one wants to see the economy tank just, you know, this was the slowest recovery in history and so nobody wants to see the strong economic progress that we've made go away. so there could be some course correction happening on the interest rates and i don't think that would be such a bad thing. neil: what do you think, david? >> yeah, i'm struck by a few indicators. one, the fact that q4 economic growth came in well below expectations, and even overall for 2018, i think the commerce
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department just came out saying growth was at 2.9%. the president of course had said 3.1%. bit of a gap there. there's two parts to this question. there's the political party, but then there's also the economic reality part and the fact that a lot of analysts are looking at last year and are arguing that in fact, we saw the economy really peak then. so as the fed's looking to this year and next and even with the jobs report that just came out, it was pretty poor. i'm not surprised to hear they are looking at these types of measures. i think for the president politically, i assume his team is paying very close attention to this because he's really run and has owned, during the several years in office, owned the economy. he said it's his, only he alone can fix it, so heading into 2020, i'm reminded of james carville's famous quote from i think when bill clinton ran, it's the economy, stupid. the president's got a lot riding on this. i guess the last point i would make, even looking at the market versus the overall economic well-being of the country, only about 50% of americans are in the market.
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when you look at the number of american families that have less than $400 in cash reserves, 78% i think in a 2017 report saying they live paycheck to paycheck, there's a real disparity, a real discrepancy between how the administration talks about the economy, even the tax cut that was supposed to help middle class families, and the actual reality every day for working americans. so i'm not surprised the administration -- neil: it is [ inaudible ]. just be aware of that. >> sorry, neil. sorry. neil: he makes a good point. i want to get a sense whether the administration is worried about something when you have key players saying cut interest rates, cut them half a percent, all of that, it's gone beyond just criticizing the federal reserve for raising them, and thereby taking the impact away of the tax cuts, as they say compromise, the bang for the buck they would have gotten because we raised rates a full percentage point in the interim. but they must be seeing something. that could raise worries. what do you think? >> well, we could speculate all day about --
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neil: i built a career on it, young lady. >> we could speculate all day about what the administration has going on behind the curtain, but the fact here is that the president has made the economy his issue, to david's point, and he wants to continue momentum. he wants people to continue to have confidence -- neil: he's got a good case to sell for the time being. i guess the worry they must be thinking about is how it will look in november 2020, right? >> um-hum. when we're looking at the 2020 race, we are looking at a question of people being confident in the market versus not being confident in the market. and right now, whether or not people realize that whether or not young people are checking their stock portfolios, they are experiencing an amazing job market with unending opportunities, where when they are graduating college, they are not wondering whether or not they will get a job. they are wondering where do i want to work, do i want to work in austin, new york or l.a. people have choices now which is a big difference from ten years ago. neil: you don't have to be in the market to be affected by what's happening in the markets and if your bosses are happy and expanding because of that, it's good for you. i want to thank you all very, very much. we are mentioning the president in all this.
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apparently he will be holding a news conference at 4:00 p.m. eastern time. a lot of this might be following on the heels of linda mcmahon leaving the instasmall business administration. that's 4:00 p.m. eastern time presser. heading into retirement you want to follow your passions rather than worry about how to pay for long-term care. brighthouse smartcare℠ is a hybrid life insurance and long-term care product. it protects your family while providing long-term care coverage, should you need it. so you can explore all the amazing things ahead. talk to your advisor about brighthouse smartcare. brighthouse financial. build for what's ahead℠ . . , which most pills don't. , flonase helps block 6 key inflammatory substances. most pills only block one. flonase.
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neil: all right. there all saying same things like eye ipo boy, this is big oe lyft coming public. this is small shattering of shares in the scheme of things. it values the company north of $20 billion, with the 12% uptick in share prices above the $72 a share offering at $80.57 a share. a lot of people became very rich. gm made a billion dollars off this. valerie jarrett, half a million dollars invested early on.
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halfway across the world, what is going on in london, protests continue after another failed "brexit" vote. these people are among those say get out and now. easier said than done. to charles payne. charles: thank you, neil. very exciting day, folks. good afternoon, this is "making money." a lot of people are. stocks are i here today. in fact we're on track for the s&p to have its best quarter in more than a decade. today's rally in part, thanks in part to the latest round of the u.s. china trade talks, which ended on very positive note to other details i will tell you about coming up. all eyes on lyft. the stock market debut. the ride-hailing company shares soaring out of the gate. it pared some of the gains of the investors want to know, this is the question, is this too hot or is this just the beginning? >> after three years of lies and


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