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tv   Your World With Neil Cavuto  FOX News  December 21, 2016 1:00pm-2:01pm PST

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favorite sports started with a case of cabin fever 125 years ago today. should newsbreak out we'll break in because breaking news changes everything on fox news channel. "your world with neil cavuto" is coming up. see you later. all right. you are looking outside the trump compound in florida and that is the ceo of boeing. donald trump wrapping up a meeting with him and very shortly the ceo of lockheed martin. of course, the two big aerospace defense contractors. he is obviously exacting some concessions out of them. remember, it was boeing that donald trump criticized upon taking office after his election victory that the quotes he was hearing on the cost of the new air force one, a variety of planes, actually at least two planes, was getting out of control. and that the new generation for at least a couple planes,
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remember, any time you travel with the president is designated air force one. the new ones boeing were going to make was going to cost in excess of $4 billion. $4.2 something billion at the time. now an indication from the ceo of boeing that they have come to an agreement to bring that price down a little bit. we don't know how much it will go down. we don't know what is coming of the lockheed martin meeting that mr. trump is having with the ceo there, who is also come under some criticism for f-35 contract that donald trump is also criticized for being a bit excessive as he tries to use examples like this to send home the point that this can be a little bit excessive here. again, exacting at least a concession out of boeing. but again, how much is anyone's guess. again, this air force one contract which was reported to be in excess of $4.2 billion, we're just told it won't be that high. charlie here on that and what to make a finger wagging moment for the president-elect.
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charlie, what do you think? >> well, you know, neil, this is definitely unchart er eered tery for a u.s. president. generally you don't see president-elects come in there and start renegotiating cracks that were signed before them. but he, you know, he does have the power of the bully pulpit and his bully pulpit is bigger because it's a twitter account that, you know, basically sends shockwaves out every time he says something including he's able to move stocks. one of the things about twitter as a business reporter i can tell you i move stocks. donald trump is the president and he really moves stocks. and so basically that's how he got both boeing and lockheed back to the bargaining table. as you know, his initial tweets about the cost of those two different projects, the air force one project and i guess the f-17s, or whatever they are, excuse me if i don't know the exact type of planes. >> f-a. >> that those -- you know, those were contracts signed before. he tweeted about them, that they were too expensive. the stocks of both companies
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began to crash and lo and behold the ceos are so scared to death they're back at mara lago, unofficial white house at this point right now, renegotiating the deals. listen, i will say this, neil, as a free marketeer, if they over charge they shouldn't over charge. you don't want the taxpayers to pay too much money. if donald trump is going to crash stocks and expound flesh from every company he doesn't agree with, even if they're in the right and not in the wrong, that is really scary unchartered territory. listen, you just can't go out and -- listen, i'll be honest with you. there are securities laws that say you can't really go out and lie about a company and purposely crash its stock. >> of course then you have to prove intent there. >> sure. >> in his case he's trying to telegraph and this is something i'm going to raise with peter ducy, that even in the precious defense department for
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republicans for something you don't cut, donald trump is sending the message that if there are cost overruns, if something that seems in excess to me i'm going to deal with it. who arranged this meter, peter, do we know? >> neil, we don't know yet. i reached out to the transition team hoping for some details about exactly who called who here. but we know that it was the president-elect who called out boeing and lockheed martin separately. boeing, we just found out, said that they are, after being basically threatened by the president-elect with the contract for the next air force one deal, they came out and said that they're going to get it less, done for less than the $4 billion for two planes than the president-elect was complaining about. the ceo said that it was a productive meeting from boeing and we understand that the lockheed martin ceo is in there right now talking about, we would think, based on what we heard from the boeing ceo, we would think about the f-35
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project that president-elect had been complaining about on social media recently. and something remarkable about this meeting is that even though the president-elect made a point to call these companies out a few weeks ago on his social media pages that are now monitored by everyone in the world, they didn't tell us that these meetings were happening today until just a few minutes before. this is not something that was mentioned on a daily transition official conference call which reporters where they tell us everybody that's going to be showing up just so we know who to be on the lookout for and what the theme of the day is. but we were told this morning that the team was going to be national security. we know that the president-elect got a presidential daily briefing which is something he does not receive every day because he said in the past that he thinks they can be a little repetiti repetitive. and after that briefing here he is talking about something that is obviously national security matter, the next air force one and the cost. and f-35 project and the cost of that. we are waiting to hear from the
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lockheed martin ceo after the meeting is done. it sounds like the -- half the meetings at least since the boeing one went so well, were a success here at mar-a-lago. >> we're going on the basis of the tweets that we're getting from the president-elect that the $4.2 billion estimate, peter, we're getting on these air force one dual plane contracts, again, two different air force ones being made, will get it done for less than that. quoting from donald trump. t so it might be 4.2, it might be $3.9 billion. it is very hard to say. i'm trying to see if there are any other comments here from this. but again, you're looking or you were up with the ceo of boeing, of course, who has said that they are working with the president-elect to address this. lockheed martin has come under fire as well for its f-35 long-term defense contract with the government. but, peter, i'm just wondering if there's a bigger strategy here that he is sending that
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when it comes to the defense contract, that there's room for cutting and room for revisiting defense contracts of any sort and that even though it's a close to $600 billion defense budget we have, there's room for pruning there, which would put him at odds with some, oddly enough in the republican party as well, right? >> right. but that is something, neil, as you remember, throughout the course of the campaign, he said that he was going to do. he pointed out a lot of different examples where me thought that there was waste and something else that he's trying to do right now that the transition officials are trying to do with all of the meetings like this, he's trying to show that he's not going to wait until january 20th to start essentially making executive decisions, that obviously is not sitting well with many on the left who continue to complain and look for loopholes and try to figure out how to stop him from becoming president. a lot of these meetings he is acting on behalf of himself, the next president, for things that are going to effect his
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administration and obviously the united states military that he will soon be the commander in chief of. >> all right. peter, thank you very, very much for those developments. reuters is quoting the boeing ceo who -- when he was made to react to the $4.2 billion estimate for air force one that it had been paired down a little bit. he said we're committed to working together and make sure that happens. this is a business that's important to us. we work on air force one because it is important to our country and we're going to make sure that he gets the best capability and that it is done affordably. this air force one contract is years away in the making. in other words, it might not be available until at least 2021 and maybe later than that. so it might not even be a jet that donald trump would be using in this event. but back to charlie gasparino and these other ones, a similar meeting presumably about some of these costs that grow
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exponentially which is the nature of government contracts. some say cynically, too much so. but he does seem to be sending a clear message here as we're looking at the respective stocks and how they faired on the day, that business as usual won't be business as usual with me. what do you think of that? >> yeah, particularly when it comes to taxpayer money. the good side is this here, you know, donald trump was elected by people because they wanted a businessman in office. he's going out showing that he's a businessman, that he understands government contracting, he understands balance sheets, he understands what costs are, he also understands that, you know, things can get out of hand. and he's not going to stand for that. that's the good part. you know, the bad part, again, listen, i have no problem with him saving taxpayer money. i'm all for it. and i really like the fact that he's a green eye shade on costs because we're going to need that going forward, particularly if we're going to be cutting taxes and building infwra structure. that said we are getting in dangerous territories if he
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starts, you know, squeezing companies to do what he wants based on his twitter feed by crushing their stock. i i think that's a problem. but, you know, he was voted in office. you and i know it. because people wanted a businessman and this is how businessmen operate sometimes. >> right. we're looking at how those stocks, the defense stocks faired since this election. >> pretty well. >> most sectors well. we follow that closely here. we should point out as well that this is very unusual for a president-elect to be getting this kind of stuff from saving better than 700 carrier jobs in indiana to going after another factory there for trying to ship jobs overseas, particularly in mexico. and this of course now going after two big defense contractors to say not on my watch. more on this including the latest on that manhunt for the guy behind the berlin attacks. they lost him. how? you won't believe. there's a lot of places you never want to see "$7.95." [ beep ]
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hard as it is to believe this is the guy they think was behind the attack in berlin thatd 12 people and injured dozens more. he was the driver that got on that sidewalk and plowed through people much as we saw in nice, france, over the summer. the difference is not only did they not capture him, he's missing na missing. they can't find him. gnr reporter with the latest. allan, what are we hearing here? >> it seems to be a comedy of errors, really. anis amri, his birthday is tomorrow, 24. he was arrested three times in germany this year for a variety of offenses. one was a forced document from italy. one was a knife fight in a fight about drugs. another unspecified arrest upon a long distance bus to berlin about 400 miles.
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every time let go. the authorities say that he had been under special observation because he was a radicalism islamist and very close ties to islamic state and every time he just walked free. one of the investigators told anonymously to one of the newspapers over here supposedly there wasn't enough evidence. but i think that the security services have just completely overwhelmed because of the influx of immigrants. you know, germany has taken over 1.3 million. and this character came in as a refugee last year. he was supposed to be kicked out this year and simply vanished into the underground, into a network of preachers and hated at the west. unshelt unsheltered. one can presume that's where
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he's hiding now. >> thank you very much. gnr reporter, retired army lieutenant colonel. colonel, you know, obviously it says a lot when someone like that just disappears from the scene of the crime. but even more when there was this back and forth, if he was part of this wave of refugees, that came into the country and then they kind of lost track of them or tunisia, the paperwork, not to return him. confusing mess but a reminder of what maybe angela merkel brought upon her country. what do you think? >> i agree with you. in fact, merkel is in very serious political situation. obviously with the election in 2017, neil. the reality is there's not a lot of sharing of information across borders. we also see very clearly that the germans are nervous and understandably. i just saw a picture faxed to me or sent to me on my cellphone that shows military people that are now around some of the
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christmas markets. there may be a couple of thousand of these christmas markets in germany and of course the subliminal statement is it's anti-christian what has happened here. we've argued about the clash of civilizations. but i think clearly we're beginning to see with the influx of these people that are totally unvetted into a christian part of the world, west germany, france, belgium, et cetera, and the violence that has followed has really created a backlash amongst the people in western europe and we're beginning to see not only lapa in france but certainly the alternative for germany is rising in power, threatening merkel, and it's happening all over that entire region. but yet, i fear that this could lead to violence internally, which destabilizes a region that is already destabilized because of russian threats and of course
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the mass immigration. a lot of issues here. >> you know, i think germany has accepted better than i, colonel, so i'll refer to you, close to a million refugees. now, this guy presumably could have been one of them. we don't know for sure. we don't know exact order of events. we do know that the german government was not interested in granting him asylum. and however that process goes, to ship him back to tunisia. tunisia then said, well, we don't know if he's from here. so whatever it was paperwork you go through to sort of seal the deal and get someone even in your country or return to another country was amiss. and i thought, boy, that's sort of double jeopardy right there. >> yeah, this could destroy the eu, quite frankly. you know, you think brexit's story about the brits leaving the eu, italy is looking at renewal perhaps of going back to the lira. and whole idea of the border controls wiped away.
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what the germans are saying now, we want border controls, we want limits on immigration, and we don't want all of these immigrants coming in that are not vetted sucking up all our civil services. you know, there is a tolerance level that the has been breached here. there was an illustration. you remember two years ago charm "charlie hebdo" had 20 people murdered in paris. today's issue about "charlie hebdo" art berlin, they have a gingerbread house and the gingerbread house has gun barrels sticking out the windows and the caption underneath says this isn't going to happen to us. you know, what messages are the europeans feeling now? you've got the freedom party in austria. you have lapin over in france. the right is really saying, look, you know, we're not going to tolerate the progressives that have taken over our government. so what happens in the near term, you know, i really think we're going to see something
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like brexit, perhaps like what happened in this country, mr. trump was victorious, surprising everyone. >> look it, germany just to bring people up to speed a a series of regional elections before they get to the big one. and then the regional elections, populous parties have won. sitting government have lost power. it's been a consistent theme. at least three more of them are coming up in the next few months before angela merkel's very future leading the country could be in doubt. colonel, thank you very, very much. >> thank you. all right. there's a growing push right now for the people who will not give up on making sure donald trump is never inaugurated 45th president of the united states. you won't believe what they're trying no though. frank luntz on why you should know what they're trying to do right now. a photo of you opening the safe. a post using the hashtag "#justrobbedthesafe" so, what are we supposed to think?
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all right. i want to take you to mar-a-lago expense i resort, donald trump's home away from home as many home '. this place is humongous. it is also what they're increasingly calling his future florida white house. he's been meeting with a lot of big wigs there including we're told in a few minutes with some major jens and admirals. he had just wrapped up a meeting with the chairman of boeing. apparently in the middle of a meeting now with head of lockheed martin. he's been critical of both companies for excessive costs on air force one when it comes to boeing. $4.2 billion deal which he is convinced can be chopped down a bit and apparently it has. lockheed martin is up 35 fighter jets we told in a meet that that might be a subject of a revised contract. signed, sealed, and done
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contracts but contracts tend to go up. now, donald trump himself will be coming out of mar-a-lago and might address with the others in attendance with him what he's doing here but clearly a defense themed. a continuation of a very busy president-elect. i guess we always forget that. he's not president yet but he sure is doing a lot. sxwr. >> this is unprecedented. there's no president in my lifetime so active and this engaged specifically in the economy as donald trump. now, i tell you two things. one is that this business community's a little bit unnerved by this. they're hoping they're not going to be next. nobody wants to be put on the carpet in front of the president-elect and told to cut their prices. so everyone is going to be on their best behavior. and the voters themselves, it's one of the reasons why donald trump's numbers have come up so significantly in the last three weeks. that now a majority of americans have a favorable impression of
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him. first time since he began his campaign 18 months ago. he's at his high watermark because they like what he's doing. he's proving to them that he is serious that these aren't going to be the usual political games that washington plays and a he's going to be more than their voice and he's actually going to take a very tough hand to the corporate community and they like it. >> by the way, as you're speaking, frank, we're getting word now that the president-elect is going to be naming carl icahn to take over financier as adviser, regulatory overalls. carl icahn, so many rules and regulations in the way of companies, small, medium, and large alike that they really can't move forward. it's not so much as a tax thing as a regulating thing. icahn would be playing, presumably, a central role in selecting the next chairman of the securities and exchange commission. but again, the keeping with this very busy pace, where he's supposedly tapping the best and brightest of the corporate world to send a message. what is that message?
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>> that politics as usual will have no place in this white house, that corporate welfare is just as bad as fraudulent welfare. and that everyone is going to be held accountable. and if i can be candid with you, neil, i was not expecting this. i am more than pleasantly surprised. this action, this activity has caught the american people and really touched them because most people at this point are prepare for christmas, they're preparing for hanukkah, they're leaving their jobs. and donald trump even several days before is still at work shaking up the system. and i'll give you one example. the appointment of nick mu mullvaney is brilliant. this man knows how to hold washington accountable. can't wait to get in there to cut wasteful spending, to up end the tax code so that it is truly fair and flatter and his
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commitment to undo regulations, trump is taking the best political people, the best businesspeople and saying, we're going to change this thing. we're going to rock washington, d.c. and, neil, the voters are seeing it. they're hearing it. they're feeling it. and they like what they see so far. >> you know, i'm wondering, too, when you talk about that and what -- someone luke mulvaney has been zeroing in on government waestes and would bea modern day david stockton as ronald reagan's budget director and weed out the waste and abuse. >> right. >> but i also want to pick your brain quickly on what you make of the message donald trump is sending by going after two big defense contractors. i know these contracts are signed and done. but they're not signed and done with me. he seems to be letting republicans though, your defense budget might be sacred with you but it's not sacred with me.
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waste is wastend i'm not going to tolerate it. and carrier, shipping jobs to mexico to remind them that that's not going to ney with me and threatening actions of the tariffs and the like. it is a populist message, it's popular. i'm sure it unnerves republicans as well as democrats. >> well, it absolutely unnerves wall street. it's got to unnever the business round-table and chamber of commerce because these are people who have depended on this support from washington for many of their projects and programs. and it's just not going to be that way. neil, the key attribute here that the president's pushing that no president has done since probably ronald reagan is accountabili accountability. and trump is saying, i don't care what the agreement is, i don't care what the rules are, if you're not held accountable to hardworking taxpayers i'm coming after you. the election is over. he's the president-elect. but that pursuit of accountability is why the public is warming to him and why there are a lot of people in washington, a lot of republicans
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and even some democrats, that are looking forward to the next 100 days. >> you know, you're a great student at political history as well and we're talking about you've never seen anything like this. sometimes something controversial comes up and in this election of cabinet, maybe with john kennedy, the selection of his brother to be attorney general. maybe with jimmy carter, burt lance to be his budget director. but very little makes much of a needle move. but in donald trump's case it's something every day, substantive moves that are actually changing not only how wall street responds, which has been very favorable since his election, but how companies react. >> well, look at this situation. i hope i'm not going to get into any trouble here but he's picking ass-kickers for these important jobs. these are not individuals that will shy away from a fight. these are people who are very principled, very experienced,
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very well respected in their individual professions, and they're spoil for a fight. and those people who don't understand this, who don't understand that this is a new day in washington, d.c. because so many tens of millions of americans said they had enough with washington, he is doing exactly what his voters would want him to do and he's doing it well. >> you know, you're an expert on so many fields, if you go back to my nerd purview which is wall street. as you know the markets have been racing ahead. missed 20,000 today but it's racing ahead. dow up 10% in this time since he's election. small stacks, russell 2,000 up 20%. virtually every sector including the badly battered defense guys have had a nice run themselves. do you ever get the feeling though that donald trump, because he's doing things that are raising eye boughs and getting people excited, might be making things tough on himself by raising expectations and so much to the point that people
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are expecting the sun, the moon, and the stars? >> no because expectations were so low. the level of pessimism, the level of fear of the future was so high, neil, that it was really hard for me to do my focus groups for fox because everyone was so depressed and so not looking forward to the future. and over the last six weeksetel number that i look at, i know you're looking at the stock market, i look at consumer confidence and i look at actual consumer purchases. and both of them have been racing ahead over the last six weeks and i do attribute that to the change in presidency. i think it's significant and i think it's going to continue. >> all right. thank you very much, my friend. frank luntz, very good political and market read. he doesn't like the market part of it but it's pretty good one. we are expecting to hear from donald trump shortly. he might outline the things we've been talking about including meetings with two big defense contractors krrk eos, boeing and lockheed martin and now we're told some pretty big
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name admirals and generals and all of this on the same day we're getting word that carl icahn, billionaire investor extraordinary take over artist extraordinary will be playing a key advisory role for him.
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you are looking live at m mar-a-lago where donald trump is expected to talk to the press outline after a meeting with generals a se s admirals.
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all right. we show you mar-a-lago, florida, right now, the southern white house or the southern white house to be, donald trump's estate. this place is larger than a t. white house which could explain why so many people say that donald trump might not spend all that much time at the white house because he has bigger homes p this is among them. it's a club, a very exclusive club in palm beach, florida. but it is also a meeting point where he's had a chance to gather today with the chairman
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of boeing and the chairman of lockheed martin and apparently extract concessions out of each and potentially both to scale back some defense contracts which according to many people close to donald trump were looking outrageous including a $4.2 billion air force one contract that apparently has been peeled back a little bit. in the case of lockheed martin the very pricey f-35 defense contract that apparently is also being kind of scaled back a little bit. and all of this as we're getting word that the president-elect is going to be naming carl icahn, to takeover artist extraordinary, multibillionaire doing just that, buying undervalued assets and turning those companies around, selling them in pieces or in whole and mr. icahn would play a central place in the chairman and exchange commission appointee. as frequent guest on this show. mr. icahn said the problem isn't the taxes as high as they are in this country, it's the
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regulations that make it next to impossible for american companies to do business. when it comes to advising on the s.e.c. there are many icahn critics seizing at this saying to an not gas to the fox selecting who is going on the overseeing the hen house. be that as it may the read right now from the democrat extraordinary who could -- could be taking on the new york mayor, bill de blasio who recently met with the president-elect, president-elect is a big fan of his. what sdaung do you think of all this? we're waiting to hear from mr. trump and he is with a number of admirals and generals. we don't know who but he's been meeting with who's who in the defense arena. and seemingly telegraphing when it comes to the defense contractors that they're not sacred and this is a republican and a republican president who will watch their contracts and watch how much thiey spend. what do you think of that? >> neil, he is being donald
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trump, a businessperson. so he is working. he's working on vacation, which we as businesspeople do. i'm down here in miami on vacation working. >> what are you doing? it looks very nice there. you don't seem to be doing much work. i'm kidding. >> i'm working away on the real estate side and many other things. the president-elect is focused on understanding how our money is being spent just like a businessperson would and he is demanding better value. and he's going to get it. he is also, you know, focused on making sure that we don't waste our money. so i think those are all very good things that he's bringing some very talented people in to his administration. and carl icahn is one of the most successful businesspeople on the planet and to have him advising our president and helping our country is only a good thing. >> you know what's interesting about it. you're very good at getting the substance of his style down. it's very important in politics and government.
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and i think sending messages, whether you're president or president-elect, is important. and the message he seems to be saying to me and i could be wrong on is that you republicans are saying, who think simply because i'm a republican that i i'm not going to look askance at the defense budget, big as it is, think again. where i see cost overrun or potential problems, you know, i'm going to be a symbolic kind of thing as well and a reminder to anyone who is going to be working on a government contract, you know, i'm looking at you very closely. what do you think of that? >> well, i think that's true. and i think that that makes a big difference to know that they're being watched. look, people who do business with the federal government do it with the expectation that bureaucrats who have no vested financial interest in how the money's spent are making these decisions. and no one who has real business experience is making those decisions or looking at them. now that the whole different story and he's serving notice on
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that. he's setting the tone on a number of other things. look, the fact that he and i had a chance to meet and have a comp prehencive discussion about many things, i'm including how to advance economic opportunities for minority and women-owned businesses and the fact that he's very genuine about that. i think that he's sending message of what kind of president he's going to be. so far i like what i'm seeing. >> we should remind people looking at that fellow on the left earlier on showing a picture was den news muilenburg, head of boeing, looking at redoing that defense, a couple of jets that would comprise air force one, 4 plus billion dollar price tag that got the president's attention. i don't need it at that price. he's an noised. they obviously paired that down. what's odd about that is he is revisiting tracontracts that we
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signed, sealed, even though they were years away from being delivered. what do you make of that? >> womell, look. contracts should be fair. the federal government and the taxpayers in this country should be treated fairly. and if a contract has been poorly negotiated, it's a very responsible thing to go and encourage these contractors to look at them again because they are looking to do repeat business. >> but no one has ever done that. you're a successful businessman but no one's ever done that. we're just used to cost overruns, we're used to things getting out of control. you said it would cost a billion, now it's 2 billion. he seems to be sending the message and he's not even president yet, it's not going to fly. >> well, look, that's a big difference of having a large-scale businessperson. the last businessperson we had in office was george w. bush and he was a relatively smaller business entrepreneur. so we have not had in the country a large-scale businessperson running our
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government. and so the benefit of that is that we're going of get someone who search warrant a big thinker, who understands the reality of doing large-scale business and to put skills to use for our country. think about it. if someone is doing repeat business they're going to want to, you know, keep that line of communication open and donald trump understands that as a businessperson would and has gotten them to reconsider. and i would expect to see that across the board. he's certainly not anybody who is a businessperson allowed himself to be taken advantage of. >> that's marillyn hewson leaving. he is the head of lockheed martin. it was the f-35 fighter jet series that was coming under some criticism in a contract that had gone a little overboard. but she unlike her counter part at boeing, dennis muilenburg, not talking to reporters. thank you very much. sorry for the breaking news in the mid of the discussion. on the left of the screen, we're
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going to keep following this, mar-a-lago, the pricey resort in palm beach, florida. it is also donald trump's home down there. it is such a large structure, it is technically bigger than the white house. that doesn't mean private residence of donald trump enjoys there is bigger than the white house. but it is his home. and it's 70 plus degrees there versus 30 degrees in washington. so you decide for yourself when he is elected president of the united states, where would you want to spend your time? more after this. wish big at the lexus december to remember sales event get up to $2500 customer cash on select 2016 and 2017 models for these terms. see your lexus dealer.
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all right. not all have it at the trump tower these days. sometimes they move south. quite a bit further south in florida. palm beach, florida. mar-a-lago, of course, the trump estate down there in that neck of the woods where membership at that particular club runs at excess of 100 grand. but that isn't what's important right now. it's who he is meeting with and coming in and out of those doors down there including a who's who of admirals and generals on a defense theme day. i say that because donald trump has wrapped up meetings with the head of boeing and the head of lockheed martin sending reminder, polite reminders, we are told, about costs that simply will not fly with a president-elect who says i don't need a $4.2 billion air force one so chances are that price tag will be reduced and he doesn't need pricey f-35 fighter jets from the likes of lockheed martin.
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we don't know the details. i do know a fellow who knows more about this than i do and what this whole day keeb theming out to be, bob mcginnis. good to have you back. thanks for sticking around. what do you make of this? donald trump is expected to speak shortly. what do you think is going on and the message he's sending with the messages we're getting from boeing and lockheed martin? >> yeah, neil this is exciting to me having worked in the industry for 45 years. you know, here i see a president-elect not only pushing back against these overspending because, you know, we in the defense establishment, you know, see a lot of inequities, we see a lot of wastes. we need to fix that. and i see donald trump doing that. i see when he puts general mattis in charge of the defense department and others that understand business and understand warrior spirit, you know, we're going to begin to see changes we haven't seen in washington maybe in 60 years. you know, reminds me of general mcarthur when he took over the
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chief of the army staff he went in there and he really removed a lot of the excess, he put a warrior spirit back in to the war department. that's the sort of thing we need. you know, donald trump here, what, right before the election was up in gettysburg. he laid out his national security agenda. he said, we need an army of 540,000. we need an air force of at least 1200 aircraft. why does he want all this? he understands that we face existential threats not from the terrorists like in berlin today and yesterday but from the chinese who are working hyper sonic aircraft that are unmanned. we don't need a f-35 fighter which has a man inside. and i have friends that work on these projects. i have some insight here. they say what we need are capabilities that are going to fight against the real threats that we face, the chinese, the russians, and the iranians, and of course the one that always disturbs administrations one after another is how to handle p
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north koreans. we have these issues and they're very expensive to address but we need a prioritize and we haven't prioritized nearly enough. >> you know, you're a war hero. i like to consider a numbers nerd hero. and one thing i've said colonel about watching the way it workses is democrats won't touch entitleme entitlements. republicans will never touch defense. and they each protect their respective pet spending turfs. and we can never make progress unless we address the fact that there's likely wastes and overruns in both. here's donald. i think making more than just a cosmetic move here to meet with the heads of boeing and lockheed martin to say no. these contracts are not going the fly with me even though they're signed and done deals and the way of washington is to let them go forward and then there are cost overruns and that's just the way washington works. he has said no. and i'm wondering, i'm sure that's a purposeful signal.
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what do you make of that? >> yeah, well, having contracting firm that i work with and i have people in the pentagon that work for me. you know, i know how the contracts work. and some of these big the average salary for the individual that they are charging the government for. we don't need do that. >> they build in overruns? >> absolutely. >> contractors are working on your house. >> we had more contractors in afghanistan than soldiers, same in iraq. why in the world do we need this? we don't. that's why we need good leadership from general mattis, from the president-elect. and we're going to get that. i have every confidence we will look at our next defense review and figure out where the threats are, whether sicyber or weapon mass destruction and we will have the tools to fight it. >> thank you very much. have a merry christmas. >> you as well. >> we profit off your insight. the scene in florida, palm beach, always keep in mind
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whether you like donald trump or not, whether you voted for the guy or not, i think it's safe to say it's not business as usual. he is shaking things up. i don't think he is president yet. all at president-elect.
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all right. this is the scene moments ago outside. the woman in the dark outfit is the ceo of lockheed martin coming out about 30 minutes or so after the ceo of boeing. donald trump meeting with admirals and generals as well.
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[ no audio ] >> we're trying to get the costs down. a program that is very expensive. >> is there any concession from lockheed martin? >> we're going to see. it's a dance. we're going to get the costs down and we're going to get it done beautifully. these are great people. these are amazing people. i'm very impressed with them. good negotiators, too.
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we have had the chairman of boeing, ceo. and i think they're looking to cut a tremendous amount of money. thank you, everybody. you comfortable? everyone okay? not bad, right? thank you. general, thank you. thank you very much. >> donald trump, thumbs up to people saying, look, i'm trying to get the costs down. that's what the meeting was about boeing and lockheed martin and admirals and generals. you are watching this, very unusual. it's happening with a president-elect and a republican president-elect, going after what he deems excessive contracts. what do you make of this? >> it's not only that he is upsetting the business as usual part that we talk to that had you with your previous guest in a sense that this is something that republicans have always been loath to protect, and
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that's defense spending. that's why you never can get a deal. the sequester was an accident. you have donald trump in the face of lockheed martin's ceo and sending a message to everyone else in the industry. there's a lot of money here to be made. part of it is the waste, the low ball bids that always end up coming in significantly above and significantly late. this is a man whose own business -- you can't do that. of course, he gained prominence with an ice rink in new york city that new york city couldn't get together over a several year period. he put it together under budget in a few months. that's when he sprang to prominence beyond his fame as a builder. i will tell you what i think is interesting. part of the reason that the defense industry sees all of these costs overruns that we see this, congress likes to have the
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projects built in the town. they like to keep it home. we built tanks that you can't use in a modern day warfare. you couldn't use them in the middle east. they so big they will sink. we build these things. we keep building them because it keeps local jobs. i think what donald trump is trying to say, i am the steward, i am the shepherd of taxpayer money. it's incumbent upon me not to squander it. >> that's the way it should be. if democrats were just as open to sort of reigning in domestic entitlement growth and all the rest -- not cutting it to smither evsmith smitherines but just willing to see waste on all sides. i don't think this was accidental. when it comes to defense, there are no sacred cows. if there's an overrun, there's an overrun. it could be a powerful message to others who do business with the government that it's not going to be business as usual.
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>> he zeroed in on most important fighter jet in our fleet. some would argue how effective the f-35 is supporting ground troops versus the a-10. that's where the folks in the military. as far as keeping us -- our predominan predominance, the f-35 is vital. he went after the most vital plane in our fleet and said, i don't care, we will bring it in under cost and stop ripping off the american taxpayer. >> what do you think the role carl icahn to could play? >> i love it. i was hoping that this would happen. also, peter novaro, who wrote the book about china killing america through the business world, he is going to be great as well. some good picks today. i think the market will respond positively tomorrow, save, perhaps, for lockheed martin stock. >> or boeing. we will see. novaro a big propotee prope tepf
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saying, we need them. that loud and clear today from florida. hi. "the five." president-elect trump expected to see him at any moment to speak at any moment. who put this in there? you gotta take that out. he already spoke, everybody. all right. let's start over again. hi, america. all right. that's what happens when a producer puts something in a teleprompter and doesn't tell you. the berlin terror suspect may be a tunisian refugee, an asylum seeker with a pile of ail yanss who

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