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

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top 20% pay 90% of all the taxes. they're whipping fastballs. stuart: they want us to pay more. liz: it is bullying. stuart: my time is up, neil, it is yours. neil: we're happening what is corner of wall and broad. now with 205 point advance meese meese -- most of the dow 30, not too far, maybe 500 points or so from highs reach last october. the s&p on route to seeing third straight weekly gains. so the markets are worried about a lot of stuff. invariably they are, they have a funny way of showing it. let's get into all of that as we digest bank earnings. contraction in earnings in the first quarter. we leave the estimates. the read at this point from charles payne. mike murphy here.
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lauren simonetti. as we're going through these, charles payne, what we're seeing is, the concern people had for banks dissipate ad bit. i know each has its own story, but what do you have? >> banks were considered the number one stock pick group on wall street, january of last year, january of this year. so in part because they were supposed to do very well from the federal reserve being more aggressive. apart from jpmorgan number the december rate hike helped this number, particularly making money on the consumer lending side. that theses is starting to play out. it should start to work out. i'm glad banks are lending money to main street instead of relying solely on the fate of trading. that is the sort of ridiculous. goldman sachs, it will be interesting to see how they do. neil: with savers, they barely budge. >> interest rates alone, not that much they can give you.
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neil: that's what they say. lauren, a lot of guys are saying, rate hike we had in the period just being discussed was good for them, then a static environment you could make an environment would be problematic. >> as charles said they are lending and the commentary coming from particular dimon at jpmorgan, employment and wages going up, inflation moderate, confidence out there is strong. these are all positives but if you notice, you were kind of getting at this, charles, what the banks pay and what they pay depositors, there is a big gap there. you're seeing smaller online banks come out pay depositors a little bit more. i'm waiting for depositors to say enough is enough, we'll move our money to make more money in another bank. neil: some say we'll bring you up to .20%. >> thank you very much. neil: i'm like, what is the deal with that? >> there is a search for yield
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out there. savers need to get yield somewhere. but when you look at banks -- neil: not hurting banks, right? they're not losing them, right? >> most people don't know where to go with their money than banks. it would be nice rates go up a little bit based on economy and federal reserve. banks were pricing in negative news but positive from jpmorgan. that is why we're popping. if banks expo back to lending, that is circular effect for banks and economy which will help banks more. jpmorgan is great. i think bank of america, citi will be very good also. neil: we're very early on, just started the process you reminded folks charles, decline year-over-year earnings from the first quarter last year. >> right. neil: i'm wondering though whether we could be pleasantly surprised on upside? >> i think we will be. neil: that happened in the
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quarter before that and quarter before that. >> i think that is it will be. there was massive panic coming out of december. analysts overplayed it. 25 in first quarter is not a big sample but crushing earnings. i'm not sure we can say they will, neil, but just like gdp in the last few weeks, went from .2% of to 2%. not just from atlanta and other outfits. we were looking doom and gloom in december, early part of january, wall street got in its foxhole too deeply. neil: you didn't, i remember that distinctly. but, lauren, one of the things coming up looking at earnings, these guys are getting pretty shrewd. i used to do it with my parents and report card. if i had a "c" in there they thought i was einstein. i wonder if that would be coming into play, orchestrate it so it
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will surprise. >> set the bar low, surprise on the upside. if you look at climate in terms of the fed, with low rates, that could be negative for the banks. positive, hope for a deal with trade negotiation with china. that's a positive. volume so low. like we have summer trading on our hands already. that could inflate things to the upside as well. all of that can push the stock prices and reactions to earnings postively. neil: by the way. this isn't just banks. disney up 10% last i checked. they will have $6.99 a month streaming service. that is weighing on netflix but i'm wondering the forces at play here, do you like what you're seeing as far as a statement on the economy? >> i love what i'm seeing. i'm seeing some m&a. we had a big deal, 33 billion-dollar buyout in the energy sector. neil: we could have a bidding war. >> we could. disney, old, stodgy company moving into the tech space.
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maybe they get, netflix trading 130 times earnings. disney is trading 17 times earnings, if they got priced in middle you would talk a thousand dollar stock on disney. i'm not saying it is going there. there was so much negativity, we get high growth tech companies coming public, where people can invest in a high growth sector there is a lot of positives the out there. doesn't mean we go straight up forever. if you're an ins have tore looking for places to invest like banks which haven't taken off or tech, good time to be investing because the economy is very strong. neil: oil patch, chevron, anadarko petroleum, 33 billion-dollar deal. they already had a deal on the table so they could back and forth. charles, one. things that is interesting about that, ipos, even if they disappoint come out the gate, those planning launches from uber to pinterest, they're kind
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of lowering expectations. that is a healthy development what do you think is going on? >> there is two camps. lyft had 19 rounds of fund-raising before they went public. there is where i think a large names we know are running into problems. when valuation goes up from 100 billion to 200 billion to a. you want a bite of the apple, come on in. >> 25 billion. >> 25 billion for you. neil: richly rewarded after the fact sometimes. with facebook if you waited after it tumbled -- >> not just facebook. you know how i made a lot of money, the etsy. it collapsed and ipo rolled in. an african company up 50%. page pd up 55% on the first trade but they didn't have 19 rounds of funding. it wasn't all sucked out,
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valuation wasn't so overly rich by the time they went public. i think pinterest is understanding this. i think uber is even understanding this, that maybe we don't need to take every kernel out and crush these people who ultimately are using our products may not want to if they think we fleeced them. neil: good point. you could make the argument here as well it is a good long-term plan to lay out for investors you are going to make money and uber kind of poo-pooed the notion, more or less put it off if ever, that kind of worries me. >> you think? neil: i would think that's a good idea. >> uber is such a popular company in the sense that consumers are out there, ridership, they're diversified as well. that is differentiation you make from lyft. they have other ways to make business. they do have a lot of struggles. they have shown, yeah, they can grow revenue but that comes at a cost so that growth is slowing.
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there are a lot of red flags for that company. there are people, especially -- we did two trips, used uber in every single city, if you look at it basic how could that be a failure as a stock? neil: small percentage of the world. ipo backdrop regardless of individual cases are is strong. these were delayed because of the government shutdown. they generally encourage others to follow. what do you see happening? >> i think it will be a great year for companies that have been private for a long time but as charles was pointing out, if uber comes out at 120 billion, that's great for people who own the stock currently in the private market but investors at home watching the program may be overpaying for the stock. i think now they're walking that back a little bit. but as you get more companies coming to the market, technology is changing how we live our lives. last quarter uber did 1.5 billion rides in three months. they have a huge -- neil: that was lauren and her
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family. >> there is a huge net out there. people continue to use it. when they want to turn on revenue or profitable they will get there. i think they set the bar very low. neil: thank you all very much. dow is up 215 points. >> we talked it up 15 points. neil: i like that. you're gaspo. administration no doubt taking bows on the market. focus on what is happening at the border. blake burman at white house with more on that. reporter: hey, neal. a pretty big headline hit the papers the white house considered releasing immigrants into so-called sanctuary cities. here is what i can tell you in speaking with a source who was familiar with the discussions that took place i'm told over at the white house earlier this year. that person described it this way. they say the view from the white hughes is that democrats want immigrants to come into the u.s. if that's the case then they should work with the administration to find the best way to transport those already
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set for release and that would include into the lawmakers own states and into their districts. this person who i spoke with was pretty clear when they made the case that they say it was not for this idea, not for this political retribution. the feeling that i essentially got, more along the lines of challenging democrats on their own policies or at least how the white house views the democrats policies. separately fox is told that i.c.e. informed the white house this whole idea of potentially busing immigrants to certain so-called sanctuary cities was not legally possible. so that kind of put the end to that. meantime earlier this week, we heard president trump when he was in texas on wednesday, did some fund-raisers there, made impromptu comments at one of those fund-raisers he was thinking about sending more troops down to the southern border. the acting defense secretary addressed those comments earlier today, was pretty thin on details. listen.
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>> shouldn't come as a surprise that we'll provide more troops to the border. the way i tend to frame that is, our support is very elastic given the deterioration there at the border. you would expect that we would provide more support. reporter: shouldn't come as any surprise patrick shanihan says, neil. we don't know how many troops might go down, how long they might be staying there on down the line. neil. neil: just to be clear the idea that was raised and shut down to send some of these illegals to these sanctuary cities whose idea was it? reporter: wasn't specifically said to me. it was put in the terms of, it was discussed. obviously there is some intrigue as to who this might have been. whether it was stephen miller, the president, other folks, et cetera. i wasn't given an exact name to
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be quite honest, neil. more so the explanation of how the thinking went along, which was essentially if this is what democrats believe that immigrants should be allowed into the country and, when they're set for release they need to go somewhere, well, send them into the districts of democrats and to the states of the democrats because this is what they believe in. at least that is how the white house views the democrats point. that was greater terms of the discussion, at least as it was framed to me this morning. neil: got it. never came to be anyway. reporter: right. neil: curious about the cycle of events. thank you, my friend. you're the best. blake at the white house. elizabeth warren going after amazon, companies as big as amazon, particularly amazon are not paying enough in taxes. amazon fires back, says we are certainly most paying a lot back in taxes. then she just got back to amazon for that defense. after this. i can't tell you who i am or what i witnessed,
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neil: all right. you make more than $100 million a year a 7% surtax on that, and that is exactly the kind of thing that amazon didn't really like when elizabeth warren was saying idea companies like amazon and others were to fork it over would make a big, big difference. fbn's hillary vaughn with the
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back and forth. reporter: senator elizabeth warren cracking down on corporation as cornerstone of her campaign. she talked about cracking down on big tech. now she wants big business to pay big taxes. she rolled out this new plan yesterday called the real corporate profits tax plan. she wants to target 1200 of the most profitable companies in the u.s., calling out amazon, occidental petroleum paying zero in federal income taxes. now she wants to tax every dollar made over $100 million brought in by 7%. she says that will bring in about one trillion dollars over 10 years. of course that is if the companies decide to stick around for a decade, following this higher tax code. amazon fired back at warren's tax proposal they paid billions of dollars in taxes and employ quarter of a million people here in the u.s. amazon pays all taxes required to pay in the u.s. and every country where we operate. corporate tax is based on
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profits, not revenues. our profits remain modest given retail is highly competitive, low margin business and continued heavy investment. senator warren fired back at amazon on twitter, blasting their response saying their claim that they pay what is required is exactly the problem, writing quote, in response to my plan, amazon says it pays all the taxes we are required to pay in the u.s. yeah, i know. you made more than 10 billion in profits last year and you were required to pay zero dollars in federal corporate taxes. that is the problem. now warren wants all of this money to pay for programs, like, social programs, child care, and other things but amazon was not just getting attacked by warren yesterday. they also got hit back by one of their rivals walmart because jeff bezos wrote in a letter to shareholders saying he challenges his corporate competitors to match what they pay their employees and benefits package that they offer to their employees.
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so walmart's vice president tweeted, hey, retail competitors out there, you know who you are, why don't you start by paying your taxes first? amazon is really taking it from all sides here, neil. neil: never stops. hillary, thank you, very, very much. this is part of a theme you might have seen from presidential candidates. find ways to come up with money, saving money. you can fault republicans for that, couldn't you? "daily caller" news foundation editor-in-chief chris bedford on implications of all that. independent women's forum kelly billioner. let me begin with you. elizabeth warren who had asset tax employ on those with certain level, depending what it is, 10 million, 25 million, it's a moving target. this is essentially a different tax to raise more money but i'm wondering, others are following the lead here, not necessarily to the same extent but higher
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taxes, and particularly on the wealthy and or corporations. where is this going? >> absolutely. across the boar democrats are calling for higher taxes which would ultimately hit not just big corporations and wealthy billionaires, it would hit middle-class americans. when you look at programs that they are actually pushing, "medicare for all" example, for example, the white house put out estimates it would cost average american family $17,000 a year. i think these programs sound good in theory. who doesn't want free stuff? if you look at the extent to which democrats are promising through the programs, government funded child care, tuition-free college, "medicare for all," the list goes on and on, no way taxing the rich will pay for it all. neil: what is interesting, chris, if you look at this, i would love to see both parties part a willingness just as creative finding ways to rein in spending. generally they're not.
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so let's say, one of these democrat candidates, say elizabeth warren gets in, much would depend on makeup of the house or the senate but are we going through a wave now of higher tax environment, after relatively low tax environment? >> saving money, neil, such a 2010 idea. that is not popular anywhere. not popular here in washington. certainly not popular on the campaign trail with the democrats. i think that it is possible. we have tax cuts that the president pushed through. as long as mitch mcconnell is still in charge of the u.s. senate you will not see the tax cuts go away. he will protect those very much. will he be in charge in two years? company like amazon, big tech companies, traditionally since calvin coolidge could count on republicans to protect them from democrats or big spenders president doesn't like them. they pick ad fight with lot of conservatives. they alienated conservative voters. if they lose mitch mcconnell
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in the senate they could see their taxes go up. neil: i don't know where this will ultimately go, kelsey, depend how much they raise taxes ending loopholes, certainly to a man or woman, prominent democratic candidates they want to stick it to the rich. they want to go after the companies they say they have gotten a free ride, like amazon for example. i'm wondering with the effect would be, particularly of those companies who obviously you know, go elsewhere? >> right. well this is where republicans really need to step in and do a good job communicating what these tax cuts have done for businesses and american families. we have tax day just around the corner. it is important to have this conversation. to also talk about the extent to which democrats calling for these socialist programs, that would end up hurting americans in their pocketbooks. the economy is doing great. unemployment is down. why do we want to try to fix
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something that is not broken? really makes no sense. neil: you know, the other thing i'm curious chris, let's say we had divided congress as we do now. and divided, white house under another party's control. you have to think that when barack obama was reelected, he was able ultimately to get, having said elections have consequences, that delayed hike in the upper rate. he got it through. now, that helped with a lot of democratic votes and the like but i always think that people, particularly republicans who poo-poo this phenomenon, call it socialism, call it whatever, do so at their own peril. there is a great deal of support for a lot of spending. if you're not the one who worries about the taxing you're for it. >> outside of the tea party i have never seen a popular movement in the country to actually cut spending or figure like that.
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people like spending. tip clay don't lose elections. if you i were wealthy, i would be worried about republican house of representativesps. that is answerable to the people. this populist bubble that made bernie sanders almost knock off hillary clinton and made president trump president. that has not gone away. there is huge appetite. a lot of companies making a lot of companies. when we called major u.s. companies and amazon, google, do you consider yourself an american company. most of them dodged the question, said no, they're global companies. a lot of voters are angry at that attitude. less likely to defend them. congressman will follow suit. neil: that is the way it generally goes, chris, kelsey, thank you both very, very much. if wall street is concern ad lot of biggest names and most successful stocks are facing higher tax, they're not showing it. we're up 235 points. we might make a positive week of
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this for the dow jones. we're down close to 300 points going into the day. there is a possibility we could make this an up week. we already know for the s&p 500 it will most likely be up week. that will be third week in a row we've seen that, after this. things will be tight but, we can make this work. ♪ now... grandpa, what about your dream car? this is my dream now. principal we can help you plan for that .
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>> we want to put building blocks in place sew we could have the fastest possible networks so all of these applications can operate at scale. we think that america is the best home for this kind of innovation and investment. if we get it right especially comes to transformative technology like 5g, we're confident we'll see more competition and innovation. ultimately that is question others have to think about with the appropriate regulatory framework. neil: that was the fcc chairman, speaking to our maria bartiromo on this whole 5g rollout. sort of like waiting for gadot. you hear a lot about it but
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gadot is not moving. bret larsen on this. you and i know were chatting before the break. >> yes. neil: we know it is coming, and test cities where it debuted but this is hurry up and wait. >> it is hurry up and wait. 5g requires a lot of infrastructure spending. that is coming out of the pockets of at&t and verizon. that is why t-mobile wants to merge with sprint to combine resources. this is really, really high frequent. talking tenfold higher than the wi-fi network in your home, like 37, 45 gigahertz range. the problem with the frequencies they're so high, they don't go as far as other frequencies we use for 5g. neil: you need more. >> need one on every light post. that is one example i heard. creating a lot of problems.
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cities are not saying, that we won't want towers on every light post. put up a thing on corner or hill, with a tower looks like a tree because 5g service doesn't work that way. the fcc is supposed to be announcing today they will do a spectrum auction where they sell more of this frequency to the wireless service providers but there is still a matter of, we don't really have a lot of phones. we have one phone right now that connects us to the 5g network. neil: that depends if that is accessible. >> right. it is, if the 5g tree falls in the woods there is no one there to capture it on their smartphone, does it really exist. neil: the hardware, phone-maker, samsung is only one that has it. >> samsung is and motorola does as well but requires -- neil: like when 4k tvs came in. a lot of technology put on the tv. >> there wasn't anything to watch. very much like 4k. like we went to high-definition television, you needed content, needed the tv. then we needed to put the hd
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channels not over the air, needed them on the cable system. neil: right. >> the thing very exciting about 5g, not just that you download harry potter and "the chamber of secrets" in a minute 30 seconds on your phone, it will allows you to have more technology. the fcc chairman is right about that we don't really foe what will happen with 5g technology. will it finally make driverless cars a reality? the technology would be there for that. low latency what they call it. when the device is told to do something, it is able to tell the network it did it in fractions of seconds as opposed taking a second to get that piece of information back. that would allow things like robotic surgery, have a surgeon in new york, performing a surgery somewhere in rural kansas. neil: do you think next year at this time, this will be in everyday use? >> no, i don't. i really don't. i think what we'll see with 5g, i hope what we see with it, i
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think we'll first see this delivering high speed broadband to areas underserved by broadband because as you know it is cheaper to put up wireless service than to wire every single house, especially in a lot of rural areas. that is part of the fcc chairman's plan. they want to set aside $20 billion for that. we have a lot of places in the country, really underserved by broadband. it is creating a lot of problems. i heard a factoid today, netflix still has people that get dvds in the mail because they don't have broadband fast enough to stream movies. neil: that is where they started. >> 5g would change that. that is what at&t is doing with test markets on 5g. using it as a way to access the internet, not necessarily on the smartphone. neil: for a self-described nerd you i could understand what you were saying. >> i try to translate the nerdiness. neil: bret, thank you very much. fox 24/7 anchor. he was mentioning netflix and it is in a world of hurt right now
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brighthouse financial. build for what's ahead℠ neil: all right. the concerns we would head into global recession, they eased a little bit. that slowdown you were seeing that brought interest rates to about a year-low, that is, dissipated but they're still very, very low. don't savers know it. if you go to try to see a cd rate at a bank likely will be below 1% no matter how much you give them. it's a tough environment. if you don't have debt, you save, good for those in hock, but not so for those in the money, wanting to earn a little bit more money interest ratewise. to baron's associate editor jack otter, for those looking forward to retirement, trying to play conservatively, for them it isn't great news, right?
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>> i will tell you a little bit of good news, cd rates stayed a little bit elevated despite what is happening in the bond market. i looked on before coming on depositaccounts.com, the best rates are 2.8% on 12 month cd. neil: from big banks or from -- >> one of them markets, new goldman sachs arm. some other legit banks. so, that is good news. frankly i think for short-term cash, that's not a bad idea to lock in 2.8%, if the bond market continues direction you talk about, those could easily go lower. i think it is important for savers not to be too conservative. you and i talked about this a lot. i know the stock market is scary place. we're 10 years into a bull market. who wants to put money to work now but oppenheimer did a study looked at potential investments
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from 1995 to sift is sift. here is the important point, if you put 100 bucks in cds in 1995, guess what you had in 2016 after inflation is figured? 100 bucks. so you're just not going to make the kind money you need to make to retire by putting money in safe investments like that that. if you put 100 bucks in 10-year bond, 154. by 2016 not bad. if you put $100 in the stock market you had $320. that includes two vicious, painful bear markets. if you left it alone, you did better. people need to stomach the risk for long term savings, that is probably one of the few ways to really grow money they need to. neil: patience is not only a virtue, it can be a moneymaker. it is tough, try telling somebody in the middle of a freefall 10 years from now you will be okay. >> it is what it is. milestone, neil, this is exciting, we're 1% below the
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all-time high in the market. today a guy named dan weiner at vanguard advisors, sent out a note we hit all-time high in total return for s&p 500 including dividends. that is another important thing, dividends can pay off. neil: that's right. especially those reinvestment them. different way looking at market, different performance overtime. jack otter, "barron's" associate publisher. back to the battles going on in washington right now, for the president looking to put people who share his views on the federal reserve, we don't know about stephen moore right now. we do know for herman cain doesn't look like it is going to happen. charlie gasparino has the latest. >> excuse me. herman cain is on life-support i would say. probably will get pulled today. neil: four definite no votes among republicans. can't lose another one. >> i think even worse than that, i think mcconnell's attitude
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to cain and moore, to certain extent which has people concerned. very much he will not go to bad for either of those guys. you know what i'm saying? he think these guys represent battles more on cain's side than moore's side but battles not real fighting. cain had me too issues in the past, allegations that he denies by the way. i thinking -- think bigger problem with herman cain, he ran a super-pac for trump. a little too close in terms of the fed independence aspect. even though, listen who will trump put there but a supporter. this is political appointment. neil: doesn't that improve moore's chances if it turns out you're right? herman cain they have to pull it. >> he is the independence thing. moore thing is more personal. it will get into all his statements. neil: they couldn't reject two. >> who knows.
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if you notice what is going on with steve moore, he is doing the, he is doing the circuit. he was on cnn last night. he has been doing us. he is trying to explain his views better. i think it is a warmup, i think for more questions from political officials. public officials. i think, what's, what the conservatives, i know a lot of conservatives close to moore, what they are worried about mcconnell pulling support from him. neil: what is their concern right now? i know people -- >> two things. we know what we have with cain. the concern with moore -- neil: he will be a political ally? >> no, i think it is past statements. this guy has done a lot of writing. you write stuff -- neil: for the gold standard, against the gold standard. >> where is he on basic economic issues. i think there is personal stuff. i will say this, some of his friends were kind of blown away by the news that came out about child support payments and
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things of that nature. they knew he was getting a divorce. they didn't realize he was that absent-minded. if you know steve moore, he is kind of like an absent-minded professor. the question how absent-minded was he in his personal life? do the democrats use that to embarass the president? neil: presidents when selecting nominee for federal reserve we hear historically, fdr trying to stack the supreme court. that didn't work out with democrats but can you stack a fed? >> i think all bets are off. i think you can with the right people. listen, stephen moore -- neil: every president wants a looser monetary policy. >> let's be real clear about moore and cain they didn't get their phds like the guys did before the financial crisis. if you look at four very distinguished economists on the fed board -- neil: jerome powell is an economist. >> he wasn't on the board in
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2007. kevin warsh, guys from top schools, real did i didn't see the financial crisis coming. i think steve moore and cain are qualified. the question do the democrats use their personal stuff, issues to make the president look bad, make mcconnell look bad. conservatives mcconnell will not support either of them. less cain more and more but not so great with moore. neil: tomorrow saturday we are talking about latest revelations with mitch mcconnell and fractious relations president has with republicans he is doing them no favor pushing these controversial names, steve moore, on that "cavuto live" which is saturday, tomorrow. >> i didn't know that he was going to be on. under care by focusing our mind on whatever's on yours.
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neil: we wondered whose idea it was at white house, kicking around to put illegals in sanctuary cities, the president owning up to it that was his idea, due to the democrats that the democrats are not willing to change very dangerous immigration laws, we're giving strong considerations to illegal immigrants in sanctuary cities only. he says radical left have open borders, open arms policy.
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this should make them very, very happy. let's get read on all of this, with arizona attorney general mark bernovitz. thank you for joining us. what do you think of the president is saying? this was his idea. he thinks democrats should like it? >> here's the point, neil, something that was proposed, hasn't been implemented but rejected so it is theoretical. what it does indicate the political state when it comes to immigration folks are trying to come up with all sorts of ideas or, to show the consequences of illegal immigration, but two, i think it shows the frustration on a lot of people's part including myself, that the people back in washington, d.c. will not address this issue. this is not some hypothetical crisis what will happen if your temperature goes up half degree, 100 years from now. this is happening right now in places like arizona, texas, throughout this country being impacted by thousands and thousands of people coming here
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illegally. neil: i understand that but i also don't think he is done with this. he said it was rejected. according to the tweet, general, we are indeed giving strong consideration to placing illegal immigrants in sanctuary cities. say what you will of the people who run the sanctuary cities, allow this to happen, isn't i hurting people who are legal residents in those cities, no matter how offensive he finds the leadership's attention to this matter? in other words that he would foist force this on those cities? many of whom probably voted for him? >> i know here, in arizona, neil, it has been reported more than 18,000 people migrants, come here have been released into our communities. that affects us costing local cities, counties, millions and millions of dollars. so this has a devastating impact, real world impact. i think what i think he is expressing that frustration, that nothing is being done.
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but at the end of the day, whether you're placing migrants here or there, congress needs to come up with a solution. this is something is that both democrats and republicans have complained about over the years but no one is doing anything about it. i think that is the unfortunate thing, that is so politicized everyone wants to wait until after the next election. the reality we have elections every two years. if we wait until the next election, we'll keep waiting, waiting, until the dam bursts. neil: is it your sense then, that president of course had some, a purge within homeland security and forces there from secretary on down you need people there who will take immediate action and what would that action be, would it be legal? >> this is part of i think the dilemma, the problem. i think president trump is frustrated that he wants certain things done, they're not being done. obviously you have a lot of courts, activists judges
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stymieing him with his executive orders. if i were advising president, use some of the political capital, put the focus back on congress. i think we've seen some of these efforts, maybe they kind of stumbled and fell when it came to the shutdown but if some point he needs to use the political capital. instead of trying to do executive orders, trying to do this unilaterally, he needs to shift the focus back on congress. this will require a comprehensive solution, it is going to require a republicans, democrats, working together. this is an issue that you know, isn't about right or left. it is an issue of right or wrong. you know as a nation i'm a first generation american. no one is more sim is threat tick to immigration reform than i am, but neil, we are a nation of laws. this country was founded on the rule of law. we don't have any national religion, ethnic identity. we have sacred documents like the constitution that require the rule of law to be
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consistently applied and enforced. when you have undermining of rule of law it undermines the very fabric the foundations of our society. neil: attorney general, thank you very much. he has interest in this. arizona one of those states that deals with this head on. you don't have to be on the border to feel the pinch. when we come back we'll talk to former wisconsin governor scott walker why this is a huge issue whether you're bordering mexico or not, after this.
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♪ neil: all right. we could make [ inaudible ]. we end the week down 300 points and now within about 50 points or so of making it an up week. a lot of that is in the beginning of earnings season which kicked off largely with banking issues. jpmorgan chase, wells fargo, both beating estimates. in the case of jpmorgan chase, handily. that disney stock surging better than 10% on some better than expected news and indications that it's going to have a $6.99 a month streaming service to rival netflix. good for disney, not so good for netflix. but also, big deal in the works for chevron wanting to scoop up anadarko petroleum for about $33 billion. you might recall if that name is familiar, occidental has a bid on the table for anadarko. that and throw in ipos with more
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coming next week and the weeks thereafter, and you've got a perfect mix of issues that had been sort of all over the map that are coming back. the s&p 500 for its part is looking at an easy third straight weekly pickup and again, that is a broader representation of corporate america. we will keep an eye on all of that. in the meantime, keeping an eye on this mueller report that we are told could be out in a matter of days. much of it is released to the public or released period and to whom is anyone's guess. a good time to catch up with a guy who follows this very, very closely, of course, talking about the guy who was there at the very beginning, robert ray, former whitewater independent counsel. let me get into this with a couple of criticisms that the attorney general has gotten for his spying comment. what did you make of that, and because to a lot of democrats it looked like he was carrying the president's water, and that's something the president has
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said. you say? >> well, they have contended it was a dog whistle and of course, it's the coincidence of the fact he used the same word that the president used. i don't think that's what he was suggesting. he was simply indicating that he's going to conduct a review which is the news, of whether or not proper procedure was followed in connection with the origins of what became the russia investigation, including, i would imagine, because this is also before the inspector general at the department of justice, michael horowitz, questions about whether or not politics entered into the decision-making process about seeking court authorization for electronic surveillance, spying. neil: right. so like you were saying during the break, surveilling, if he had said that, might not have gotten as much attention. >> sure. no one is suggesting that anybody did anything wrong, that's what you have an investigation to figure out. neil: knowing you were coming,
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i'm intrigued by a "wall street journal" editorial today talking about comey's role at the time, saying that when former director james comey admits he deliberately hid his work from both the house and the senate and the fbi kept information from another overseer, the judicial branch, telling the fisa court the democratic national committee paid for the disputed dossier, it presented as a basis a surveillance warrant against carter page, a u.s. citizen. the "journal" is saying it lends perfect legitimacy to at least explore how an investigation got off the ground. >> i should think so. i should think democrats and americans of all stripes should be interested in that question. in other words, that very important question to make sure that this process was not tainted by political considerations. and i think it is a central question that the "wall street journal" has zeroed in on.
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why -- who made the decision about not fully disclosing in the warrant application where the steele dossier came from. neil: what is the obligation of the person who is spying or surveilling, and comey is going after this and not sharing it with anyone, he was flummoxed, comey, in some comments he was making, that he didn't understand where barr was coming from here. who's right? >> as my elementary school teachers used to say, if you don't know what the word means, look it up. i think that -- spying -- and i don't think the attorney general was suggesting the pejorative dmo connotation that apparently jim comey seems to derive from that and the rest of democrats who have roundly criticized this. neil: what is that definition? looking into the behavior of certain entities. >> right. clandesti
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clandestine, secret. doesn't suggest whether it's legal or illegal. that is a characterization that i don't think exists and certainly not one that i understand to be signified by the word spying. look, the point of all this is that we are having an investigation at the highest levels of the department to determine whether or not proper procedure was followed with regard to something everybody should understand to be sensitive. do you want one party in power to be spying on or conducting electronic surveillance or eavesdropping against a candidate for office from the opposing political party. neil: that would be giving away what you are supposedly trying to get. >> i think that's a complicated question. if there's a predicate to believe there is criminal wrongdoing afoot, my sense is that you would not be obligated to share that. that's why you are trying to figure out whether or not this was adequately predicated investigation of a presidential
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candidate under those circumstances. that's a legitimate question to be asked. all americans should be concerned and want to know what the answer to that question is. i think that's why the attorney general has signaled once the horowitz investigation is over, that he intends to look at it. not just, by the way, with regard to the department's conduct, but also the intelligence community's contributions to that effort which presumably would include not just the fbi but also potentially others including the cia. that's a legitimate thing for the department of justice to be evaluating. neil: interesting. robert ray, thank you very much. >> good to see you again. neil: let's get a read of what's happening at wall and broadway. gerri willis on what's happening in, well, energy land. gerri: this is the talk of the floor, i got to tell you. oil patch stocks trading higher today on news of the chevron deal for anadarko petroleum, the $33 billion deal in cash and
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stocks. chevron shares down 5.7%. anadarko up 16%, really moving the stock today. it's really fueling speculation that there's a new wave of consolidation going on in this industry, because chevron gets a foothold in the shale industry. if you thought the permean basin was over, think again. top candidates for acquisition in any merger wave, noble energy, pioneer natural resourc resources. this from a note from rbc capital. we are also looking at another wrinkle on this deal between chevron and anadarko. apparently company called occidental bid more for it, not $65 a share, $70 a share. that deal didn't happen but it's being reported today shareholders get news of that, get a whiff of that, it will be interesting to see what happens. anybody might coming in on this deal might try to make a richer
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bid but for sure, the company's base, lots of talk about who's going to merge next, who's going to buy who. back to you. neil: thank you very much. the other positive backdrop if you like deals, you probably like earnings that beat the street. jpmorgan chase out with a 5% overall pop in profits, revenues strong as well. that eased a lot of slowdown fears and the fact of wide concern that banks are in for a world of hurt, certainly in a now low interest rate environment. the first quarter, there was a rate hike. that might have helped them a little bit. we also had briefly a backup in rates that tends to be a good mix for banking issues or banking business. to market watchers larry glaser, jason prentice. what did you make of what banks are telling us early on? in the case of jpmorgan it was lifting the sector. what do you think? >> i think there's such a strong relationship between financial stocks and ten-year treasury yields so it's natural i think as the yield curve flattens to
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get worried about financials. by the same token, one would think as i think that the economy's in very good shape. the banks, the balance sheets of the banks are fortresses and from a valuation perspective we think the risk-reward of bank shares is quite good, which is to say the downside risks are pretty low given where they're priced, and the upside is quite good, especially if you get some animal spirits going and they weaken some of the lending standards that you have seen over the last ten years. neil: you know, larry, separately, there's this view here that maybe we overdid it back in december, when we were in the freefall, but now a lot of people love what they have been seeing and making a lot of money hand over fist are worried whether we are overdoing it on the upside. if we return back to the old levels of the s&p within a percent or two of its all-time high, the dow within maybe 500 points of that all-time high, my math could be a little off here, but it's not unthinkable that
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very soon, both of those old highs could be topped. do you worry? >> you know, i think he makes a great point. the animal spirits are back and alive today. the irony is the animal spirits are not because people are expecting such a great earnings season which is the key to fundamentals, it's because we see other factors going on today, like m & a in the oil patch, like some return to value, like the banks did better than people's lower expectations. that's actually a real positive. also, the key to improving global growth is going to start with things like china stimulus. so for earnings really to continue to grow, we need that global growth story. and we never want to underestimate china's ability to stimulate their economy. we saw a really strong trade data coming out of china today. i think that gives us some optimism. it may not come from our earnings season necessarily. you know, tech has led us all along and tech is going to be the laggard in earnings season. i think the ipo craze, investors have been so foaming at the mouth, so excited about, may be
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distracting them from opportunities in value in financials, in energy, and some of the areas that aren't as sexy but are really important and they present better opportunities for investing, especially as the narrative changes in the second half of the year. neil: what do you think of that? >> i think unfortunately, i think we both agree, it makes for bad tv, but i -- >> we can argue if it makes better tv. >> we can figure out something to argue about, i'm sure. listen, i think larry's right. i think it's very hard to fade china stimulus in the second half of the year. it's probably going to be mal investment. i'm sure it's not going -- they might just build another jersey city that no one lives in but that's basically what china does. every time it gets itself in trouble and with $3 trillion in currency reserves it's hard to fade that. i think that also has obviously a big impact on european growth as well, which has been weak. there's no positive, no affirmative things happening in europe to get growth which is there's nothing that is going to
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stimulate capital formation, unfortunately, but china growing and weaker currency will undoubtedly stoke global growth in the second half. so the -- i think the value growth debate is one of the big ones and we are very much on the value and cyclical side. neil: we will watch it closely. gentlemen, thank you. the growth in china that our guests were alluding to was surprisingly strong surplus, trade surplus on the part of china that few people had seen and continues a spate of surprisingly strong stats out of china this week that might have put to rest or delayed concerns they are heading into a deep slowdown. that's in the eyes of the beholder because we are getting this data from china and sometimes they are not honest. leave it at that. more after this. i'm working to keep the fire going
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neil: all right. he calls himself mayor pete because a lot of people have a lot of trouble pronouncing his last name, buttigieg, but right now, he is one of the hottest things going in the democratic presidential pack, which is unusual, if you think of the times here, so many bigger and better known names, gay, christian, served in afghanistan, harvard grad, rhodes scholar. so much more. yet he has jumped to third in the monmouth university poll
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that has joe biden on top, bernie sanders behind him and again, buttigieg not that far away. to the panel. you know, let me get your sense on what you make of this. he is a phenomenon. phenomena can come and go. we know that from past experiences. we know just from looking at the polling of this election year, pre-year, i should say. what do you make of it? can you hear me? >> sorry, i didn't realize that was for me. absolutely. i think it's great he's come out of the gate strong for him. he's definitely a refreshing new voice in politics. there's a lot of appeal to him. he's not -- he doesn't have all the baggage of some of the existing candidates and so in that sense, i think he's doing great. but i think he's actually gotten himself out ahead of his skis in
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the sense that i think his situation recently with mike pence, criticizing him for his affiliation with donald trump and being sanctimonious in that recent appearance where he was criticizing him for his faith and it seemed very preachy and i think off-note for him. i think that's not really worked out well. but he also hasn't had a chance to be exposed to all the sharp fingernails and the attacks that are likely to come from the democrats so i think the shine is going to come off of him pretty soon as the others perceive him as the front-runner and begin tearing him down like they have done with kamala harris and some of the other promising new stars in this firment. neil: to her point, doug, about raising some of these issues that might offend the religious right, but to do so on their own turf or to do so, pound the issue and go after the vice president for his views on gays or whathave you, it is a risky
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strategy. it might earn you a great deal of supportin the democratic party. in a general election, how does it play out? >> it's not going to play out well in a general election, i don't think. but candidly, he's not worried about the general election now. he figures if he can get through the primary, it will be such a huge story that whatever fights he's had now, with mike pence about his faith or his faith in president donald trump will pale in comparison to the enormity of his victory should he have one. and he has been really, as you have suggested, a fresh face, new ideas. he is the new "it" candidate. he's replaced beto o'rourke. i think what he's done is largely been smart. i would not advise a democrat and a democratic primary to pull his punches against the vice president. neil: it's interesting, because we have seen, you know, the number of candidates emerge, kamala harris at first when she
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was raising so much money, still continues to raise a good deal of money, then beto o'rourke, to doug's point, so maybe with some luck, all the 16 or 17 or ultimately 300 candidates will get their chance to be in the lead here. but what do you make of what's happening, the soul searching a lot of democrats are doing as they ponder all of these candidates? >> i think it confirms what we already know which is this race is wide open. i think democratic voters are going to be looking around and they are weighing all the different options. the buttigieg boom is real, we have seen him rise in polls in new hampshire and iowa, nationally, but the real proving ground will be the debate stage which will happen in june. that's where he can really sort of make his mark on a national level, if he's able to perform well there and separate himself from some of the other democratic candidates. that will be a chance for him to really catapult himself into the top tier, if he's able to do -- able to have a great debate
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performance. neil: i also follow the money and it's interesting that he, all of a sudden, started surging raising a good deal of money, by the latest count $7 million in the first quarter from 159,000 individuals. that was out of nowhere. i'm wondering if the two go hand in hand. what do you think? >> well, this says a couple of different things. it's absolutely a strong performance for somebody who has been a mayor, he's been a mayor for eight years and really came out of nowhere to most of us. a lot of these candidates have had a really strong first couple of weeks with small donors. that speaks to the hunger in the democratic party for some better leadership, i think. i think that that is a warning sign for the older, more established candidates that maybe the electorate in the democratic party is looking for somebody new, fresh, younger and has something different to offer than their usual kind of shrill one-note anti-trump message. unfortunately, pete just went and threw that to the side and went to the far left immediately as well. i was thinking he would stick to
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the middle and be this conservative christian gay candidate but in fact, he's actually turned out to go on the far extreme on abortion and some of these other issues. i think that's not going to serve him well because there are members of the democratic party, lot of voters who are more conservative than these candidates. i think that's really going to be their challenge, to capture that middle which is actually pretty appealing to -- that donald trump was able to capture in the 2016 election. if they all go to the far left, i think it is actually a miscalculation. i agree with doug's point the calculation is now winning the primary but i don't think that's necessarily going to really play out for them because they cannot assume that the electorate will go along with ninth month abortion and very strong extreme issues like that. neil: you know, doug, i tend to look at a lot of numbers which of course, richly earns me the nerd label that i embrace. i'm comfortable embracing it. i so see a brokered convention, with so many candidates in the race, with proportional voting and awarding of delegates that way, even in california, it's not just kamala harris, there
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are other candidates now, congressman swalwell. you could divide that up and we could get to the convention where none of them have the number of delegates needed and might go through a series of votes before we know the nominee. what are you looking at? >> i think that's certainly possible. i wouldn't for a second rule it out. i would say there are thresholds that candidates need to get. i think it's about 15% in most states to get delegates so i suspect that the process will narrow itself out on super tuesday, march 3rd, when we have texas and california among the number of other states. but that being said, with 18 candidates, i think it would be foolhardy to say oh, we'll have a clear front-runner and he or she will be nominated or on the path to nomination. i think we really have to see how the first month or so plays out, then wait. neil: what do you think, tom?
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>> i agree completely. brokered convention, first it would be awesome for tv and for politics in general. it would be very fun to cover, very dramatic, but still, it's still unlikely at this point because i agree with doug's point, the process has a way of winnowing itself down, the field down. i think we will see that happen, you know, in the first month or so, given how california has moved up its primary. but again, i think the race is still wide open. anything's possible. neil: we are up to 18. amazing. guys, thank you all very, very much. still early on in the process here. the president is owning up to it. it was his idea to at least float the possibility of taking a lot of illegal immigrants and dropping them in sanctuary cities. he says democrats should embrace it. former wisconsin governor scott walker on why you don't have to be a border state to know that we've got a border problem. after this.
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neil: the president says it was his idea, tweeting that he was giving and is continuing to give strong consideration to placing illegals in sanctuary cities. governor scott walker joins us now. good to have you. >> great to be back. thanks for having me on. neil: thank you. what do you think of the president's idea? >> well, i think he's just trying to draw attention to the fact just how serious this crisis is at the border. my goodness, you even had barack obama's former secretary of homeland security acknowledging that is a humanitarian crisis but i think in different parts of the country, people don't fully appreciate just what a big deal this is, particularly when it comes to the border. you're talking about not just immigration, really talking about trafficking of humans, trafficking in firearms, trafficking in drugs. those are things that are in fefting all parts of america, not just those states adjoining the southern border.
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neil: you don't think he was calling their bluff? >> well, i think that's just it. you know, in the past, i remember years ago when we were pushing -- when i was a lawmaker a long time ago, when we pointed out as a matter of an argument, we were trying to figure out what to do with perennial sex offenders and there were some people that wanted to let them out in the communities, we said why don't we put them in the neighborhoods where those people who are advocating for that. obviously we didn't do that but it was to make a point that, you know, people say it's not an issue when it's not in their own backyard. the fact of the matter is if we don't do something about this crisis, it's going to continue to be a problem. in milwaukee and every urban area, in fact, increasingly in suburban and rural areas. you look at the drug problems alone, those are issues that are happening by and large through our southern border. this is something that isn't new. just we finally have a president who is willing to do more than just talk about it but do something about it. neil: it's interesting, no one
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really expected that donald trump would carry wisconsin. you campaigned very hard for him. obviously the president did as well, he won by 23,000 votes over hillary clinton, over i think close to three million cast. you think he can do that again or are polls different now? >> i think it's going to be incredibly difficult. it was a combination of donald trump, then candidate, was really speaking to a lot of people who felt forgotten by washington, the forgotten men and women of our state, and all throughout the midwest, for that matter across the country, combined with the fact that hillary clinton, you might remember, after she lost the primary in wisconsin, never came back. i believe she didn't come back to michigan, either. and people in the midwest, in particular, they actually want to be treated well, they want the candidate to reach out and talk to them. democrats aren't going to make that mistake again. but i think this race is the difference between more freedom and more prosperity versus less and that's what you get with a socialist agenda, whether it's bernie sanders or any of the others talking out there, they are moving further and further to the left. i think if people realize we don't want to be like venezuela,
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we want to be like america, and i think that's a message that can carry the state and carry the country. neil: you mentioned what's going on in the midwest as well and the states the president won. a little over 70,000 votes, i believe, tipped the electoral map in his favor by winning states like ohio and pennsylvania and of course, your fine state, whathave you. other polls seem to say the president is at best competitive if not losing in those states. i don't know where he would gain ground elsewhere. i will go to your point, i mean, it depends on who the democrats nominate but they are going to virtually live in those electoral battleground states. you think the president should as well? >> oh, yeah. he's been here, he's been in michigan, he's been all throughout the midwest. when you look at what he's done for dairy farmers, what he's done for workers in manufacturing companies, what he's done for taxes, the average family in our state, two parents working, two kids at home, saves over $2500 because of his tax
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cut. we don't nearly talk enough about that. i also think, you know, the more people know about whomever the democrats nominate, they will have their convention right here in milwaukee this summer, to me obviously they are not going to do this but their best strategy will be not to tell us who their nominee is until a week before the election because the more we know about that person, him or her, the more concerns i think americans are going to have and i think that's where the race tightens up. neil: that's depending, you know, whether they get to wisconsin and have a nominee. the reason why i'm dwelling on this, it may be a bit too much, i apologize, is the irony could be that the electoral college at least provides a way for candidates to visit these battleground and other states, small states, rather than if it were, you know, if you are a democrat, in california or new york or if you are republican, in texas or elsewhere. i'm wondering, if the irony is just that, they might now just camp out, both candidates, in
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states like yours. >> oh, i think there's no doubt about it. you look at the midwest, the path to the presidency in 2020 is clearly through states like wisconsin, michigan, iowa, ohio. there's a few other outliers. florida will certainly be in the mix. those will be the key battleground states. i think the contrast has got to be freedom. free enterprise, more freedom, more prosperity for americans. it's why i have been speaking out for example on this whole talk about 5g and nationalizing the system which i think would be a huge mistake, not only in policy but politically. we should be contrasting things between we don't want to be like china, we don't want to be like venezuela, we don't want to be like places that have failed. we want to be like america. i think the president was right all the way back in the state of the union address when he said we were born free, we will always be free, america will never be a socialist country. bernie sanders and the long, long list of others trying to replicate his agenda want to push america in a socialist agenda. that promises prosperity but leads to poverty.
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we've got a real plan to get people working again and it's working here in wisconsin and across the country. neil: governor, thank you very much. good to have you on. >> thanks, neil. neil: in the neck of the woods there in the midwest, also in the west, you have a blizzard, you have flooding fears, you have a mess. matt is in the middle of it in steel county, minnesota with the very latest. hey, matt. reporter: right now we are near the border of iowa and minnesota. what's happening here is a critical repair of utility poles, excel energy tells us it has some 300 utility poles that were destroyed from this storm. you can see the pile behind me of utility poles that were damaged or basically snapped in half like toothpicks and now we have between 12 and 15 trucks out here to repair the utility poles. they tell us this is a six-mile project so they are trying to restore energy to up to six miles worth of properties.
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excel says last check it had 4800 meters without energy here in minnesota, 3700 in south dakota. the wind chill right now is bone-chilling so being out in this or just being in your home without power could be deadly. we just spoke to two women who have been without power since yesterday. one woman says she has been hanging out at a gas station for food and warmth. another woman is at a shelter for the national guard. >> staying warm and under blankets, trying to charge our phones at the gas station so we have some, at least a phone to talk. >> eating the leftovers i ate yesterday. reporter: this april blizzard really packed a punch. we experienced wind gusts up to 70 miles per hour, hail, snow, rain, even thunderstorms. people who experienced it in mid-april were not happy about it. the department of transportation reported at least 32 jackknifed
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tractor trailer accidents across highways in the midwest. right now, the department of transportation here in minnesota is still reporting new accidents every hour, so some of the roads are completely dry like the ones behind me but a lot are still wet and slick. if you are driving in any of this, just be careful. neil: wise words. be safe yourself, my friend. meantime, you know about disney, with the $6.99 streaming charge. that's a lot lower than netflix. disney's stock is up. netflix, in case you are just hearing this, is down. more than 16 bucks. more than 4%. after this.
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the day we'll finally get something done. hey, who are you? oh, hey jeff, i'm a car thief... what?! i'm here to steal your car because, well, that's my job. what? what?? what?! (laughing) what?? what?! what?! [crash] what?! haha, it happens. and if you've got cut-rate car insurance, paying for this could feel like getting robbed twice. so get allstate... and be better protected from mayhem... like me. ♪ neil: all right. not a good day if you're a netflix shareholder. first of all, the bad news for the company that disney was invading its turf, and offering a streaming service less than $7 a month, then word that tinder surpassed netflix as the top
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grossing non-gaming app. deirdre bolton following all of this. deirdre: analysts seem to like disney at this $6.99 price because it's cheaper than netflix. disney had always intimated they were going to be lower priced. in theory they have less content. well, they simply do have less content than netflix which may actually play in their favor, because the people who like the disney products are really ardent fans with a much more focused group in many ways. neil: only disney stuff, right? deirdre: for now. they will create original content but they have not ruled out -- neil: they got [ inaudible ], right? deirdre: including the simpsons is a great example of that. the first of 30 episodes will be on disney plus. they just told me something kind of funny. they had a picture last night that got a lot of chuckles. the reaction has been $6.99 is really good.
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i think it's even lower than most of the investment community had anticipated and just seemed to feel like it's good bang for the buck. disney has also been very transparent. they are not going to break even on this for about five years. they are going to spend a billion dollars on developing content and we know that netflix is still the 800 pound gorilla in the room with 140 million subscribers worldwide. because netflix just got there first, there are a lot of people who maybe they complain about netflix, like this doesn't suggest good things for me or i don't feel like paying the most common is $13 to have the two log-ins for simultaneous streaming, it seems unlikely based on studies that people actually drop netflix. i think the question going forward is more will you add disney and what we heard from disney's team last night is obviously they are anticipating a yes because fans are loyal. so if you are a fan of marvel super heroes, a fan of "star wars" or if you have little kids
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who love "frozen" -- neil: there is a tinder threat, though, right? deirdre: i think that is becoming the biggest top grossing non-game app so far this year. but i think in some respects, that has to do with netflix breaking away from apple, because netflix used to be the top app available on ios. apple's operating system. netflix doesn't really want to get into the apple streaming product so they really put up this wall saying if you want to join netflix, you have to go through our website, not through an apple device. one quick thing, i want to get back to disney for a second, because this kind of got glossed over. if i were disney, i would have been really shouting about this. it's about hot star. that was a property that they got from fox entertainment assets. that is bananas growth. they had the head of that division kind of presenting this like oh, yeah, we have hot star. but i copied down, they already have 300 million subscribers. that is quadruple from 2017 and
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you know, in india, they have 500 million internet users, 800 million have yet to even be connected to the internet. so it was one of these kind of parts of the businesses where it was just like oh, yeah, we have this little growth project called hot star. those growth figures seem almost worth looking at the stock in and of itself. and shed a little light. then of course they did all the fireworks and the storytelling and the actual interface reminds me a lot of actually what apple does. it's very clean lines, very simple, you have the different tiles for the disney kids section and i think that's another distinction is the disney plus is really family friendly versus netflix, if you want to be critical of netflix which is kind of just the kitchen sink. you get all this content, boom, you figure it out. neil: master of marketing. deirdre: they certainly did a good job in the presentation. neil: thank you very, very much. meantime, wuber is warning they may never make money.
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kristina partsinevelos following all of this ahead of the big ipo. reporter: that's exactly what we saw in the filing, almost 300 pages long. it's a really glimpse into a company that's been around for a decade and yet two major concerns. you hit it right on the head, with one, the path to profitability may never occur literally a statement in there saying they may not achieve profitability, and the second major concern for some investors or future investors is the fact the company may not continue to grow at this rate. you are seeing 91 million active monthly users but that growth rate is slowing. market share is shrinking. why? competition like the likes of lyft. what is uber doing? they are expanding into new markets, expanding into new avenues like freight as well as uber eats. they are still working on that. of course, that comes at a cost. we take a look at the operating loss just over the past three years alone, that equates to $10 billion. if you like visuals, to compare that loss to its revenue, in
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2018, it did see a little bit of a large boost, revenue grew 42% compared to the year prior. so we're seeing some strength there. but overall, it is a concern about when will this company, if ever, become profitable. ahead of this ipo, we still don't know the exact date at the moment. they are looking to sell $10 billion worth of shares. could be a big one like alibaba. and these shares will be one share equals one vote which seems to be a good thing because a lot of tech companies have been doing these dual class structures. overall, this company is going to have to woo investors on this road show right now. one to overcome all the scandals of the past two years and two, how to push out the competition as they try to position themselves as a global transportation provider of the future. neil: kristina, thank you very, very much. meantime, we are just getting word that barack obama's former white house counsel greg craig pled not guilty to charges that he was trying to win influence
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neil: all right. the president saying it was his idea to put illegals in some of the sanctuary cities.
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he's still kicking it around. now the white house deputy press secretary hogan gidley issuing this statement. the democrats say we must have open borders and immigrants have a right to be in this country at all costs so they should be working with the administration to find the best ways to transport those illegal aliens that are already set for release into communities in their states and districts and back and forth we go. meanwhile, julian assange is now under arrest and it's highlighting the difficulty we have not only getting information out of him, but try to prevent the kind of stuff that was started under him, that is getting compromised security information that put a lot of lives in danger. tech founder and cybersecurity expert david kennedy with us now. david, i don't know where this julian assange investigation goes. we do know that since he was first getting that information for manning, that ever since that time, there have been a
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number of security breaches, some tame, others huge. we can't seem to get this under control. >> yeah, great to see you again. when you look at what the kind of cascade of different portions of breaches that occurred for top secret data, secret data that occurred after manning, we had a breach that was very heavy on cia tactics, we had edward snowden, we had the shadow broker stuff where a government contractor was posting a lot of data around some of the nsa's most secret hacking tools and techniques and code. we have had a number of different breaches that have impacted our intelligence community and how we actually conduct operations, how we conduct military operations, cyberoperations, all of those. it's been very difficult for them to get a grasp on how you actually protect this in the digital age. i think the problem is it's no longer you can go into a skiff and try to take little pictures. you have these little tiny devices that are literally the size of your thumbnail that you have to protect against now, and
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it's really difficult for the intelligence community to get their hands around that. neil: i wonder, too, in this day and age, whether we come up with a better mousetrap, we find a smarter mouse. back and forth and back and forth. >> yeah, there's a lot of technology out there that's trying to catch hackers, it's what we call deception, where you kind of put little pieces of artifacts out there for people to go after, and if you look at what happened with edward snowden specifically, in his role he was a contractor that was more of a systems administrator, not really a hacker in any sense, and he had wide access to a lot of different pieces of the top secret network there, which allowed them to essentially grab a lot of that information and pull it back without any type of detection. the military really needs to focus -- the military and our intelligence community really has to focus on who has access to that data and seeing if anybody is grabbing copious amounts of data like we saw with manning and edward snowden and with herald. all of those are key indications that something's wrong, somebody
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shouldn't be downloading 50 terabytes worth of data like we saw with martin which had some of the biggest secrets the nsa holds dear. neil: we tend to discover this after the fact. i don't know what the timeline was with manning and eventually getting it to assange. it's like stores that report, like target remember it was months later we found out about another case. i'm wondering why that is. >> it's a problem we face both in the intelligence community and in the private sector as well. if you look at data, there's so much out there and with data it's usually all over the place. there's no real formalized way to structure data in a way that allows you to kind of say okay, this person has access to this data. you look at a company as large as target, for example, they are massive and they have people in a whole bunch of different stores and seeing patterns that are unusual is becoming our biggest challenge in the security industry, and why it's becoming more and more difficult for us to identify these breaches early on. you saw starwood, three years,
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you saw a lot of these newer breaches as well, still to this day we have problems looking for these different types of breaches. so as an industry, we have to get better at detecting earlier on when these types of abnormal patterns of behavior are occurring in these networks, including the intelligence community. we all have to do a better job at finding them earlier on, day one, versus six months or a year down the road, when the information is released or the breach is discovered. neil: well said. so we wait for just that. david kennedy, always good catching up. thank you. let's take a look at the corner of wall and broad right now. we are very close to turning this into a positive week. the dow is about 250 points. disney is helping. bank issues are certainly helping. a lot of economically sensitive issues are helping. all in the idea we are doing just fine. more after this. i'm working to keep the fire going
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ask your parkinson's specialist about nuplazid. ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. >> three, two, one. neil: we're back up there again. florida spacex successfully launching the world's most powerful rocket for paying customers. this booster alone on rocket, stronger than a saturn v, which brought all missions to the moon. the wait great gene cernan last to walk on moon, i don't care who goes up there whether
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government or private company, we should be the one to go there. steve moore, whether he makes it to the federal reserve. meantime, charles payne take you through the next hour. charles: huge day on wall street. stocks solidly in the green, big news from banks and media companies. jpmorgan leading the way for financials after reporting solid increase in earnings. we have to talk about disney, the winner of the session. soaring more than 10% after unveiling a aggressive pricing strategy and bold subscriber predictions for the new video streaming service that competes with netflix. neil: >> race to control the fertile ol' feeds. what will be the next multibillion-dollar oil deal? we'll tell you. president tmp

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