political. this is house speaker john boehner who a couple of hours ago announced his resignation as speaker, his resignation from congress in october. we were awaiting what was scheduled to be a statement, but is clearly not happening now. this is video of the speaker making his way away from a republican meeting today. in the meantime, so much else to talk about. yellen giving her speech last night. short-term worries about her health as she was almost unable to finish a 23-page speech. nikkei up overnight. dollar at a five-week high. nike earnings. blackberry to talk about. we're going to get to all of that. in the meantime, let's turn to our john harwood who has been watching these political developments all morning long. good morning. >> good morning, carl. it's a stunning end to john boehner's speakership. everyone had known that he faced some disent in his caucus. there has been speculation for numerous years that he might decide he has had enough of it after we had the difficulties in

2011 and 2013. no one expected the timing of today right after the pope's visit, which was a very emotional moment for john boehner, but it also coincides with the end of the fiscal year. another brinksmanship fight over shutting the government. john boehner, i think, calculated that, one, he was fed up with it, two, it was more likely that we will avoid a crisis with him stepping by -- stepping out than if he stayed, and that is likely true. members are saying that they believe that it's more likely that they'll avoid a shut down now, but that doesn't resolve the problem because this is a republican party that has a significant faction, carl, that is, as we've discussed in the last hour, disconnected from an achievable political reality, and they're not backing down. they have the power if not to pass their agenda, to prevent anyone from passing an agenda so long as they're able to block the republican leadership. that's the dilemma that the

republicans have not solved and that kevin mccarthy is likely to inherit as the probable next speaker. >> that was -- that's the natural follow on that. mccarthy's political calculus, does it differ from what boehner has had? >> i don't think so. kevin mccarthy, by all indications, is not significantly different from john boehner politically. he. >> because is he in california, he is perceived to the left of john boehner simply because a california -- >> the republican party is not in the mood to accept the leadership of its leadership, and that's a challenge.

it's a challenge for jeb bush, and others in the presidential rags and a challenge for them now. >> what does it do to the prospects of a government shut down? does it make it more likely because you don't have the sort of leadership where you know what to expect at the top, or less likely because i don't know why it would be less likely, frankly? >> less likely because john boehner is stepping aside as of october 30th. he will still be there over the next several weeks. >> we'll keep the government open. if they don't go along, he can without any potential future cost to himself, he can make an alliance with democrats and pass a spending bill with democratic votes. this makes it likely, and i don't know how the market is going to interpret this in the immediate term, but it does make it less likely that we're going to shut down right now. >> what ripple effect does this have going into an election year

for a republican party that already, as you mentioned, several times has fractured leadership and the symbol of that being donald trump? >> well, the republicans have to hope that they get a nominee out of this process who can unite the party. the images that ordinary americans are seeing in the republican party right now are ones of discord and dysfunction, and donald trump is leading the presidential race while being openly scorned by major strategists, rival candidates, conservative commentators. that does not present a picture to the country of a party that's got it together and is ready to govern. nor does the fact that the long serving speakers -- it's not a pretty picture for the republican party right now. they're going to have to hope that the primary campaign yields a nominee who can overcome that.

>> good morning to both of you. stan, let me talk about what's turning into a potentially treacherous period for the market, and people are increasingly talking about not this continuing resolution or the fact that we might get a jobs number on friday, but this period in late november, early december where that dealt ceiling comes up again. >> absolutely. the one thing john didn't mention was that while this probably takes away any likelihood of a shutdown in october, it really increases it probably in december when we have to go through this whole thing again when the current continuing resolution will likely run out, and that will be happening at the same time as the debt ceiling, and it will happen when the new speaker has to be watching himself or he'll be under the same challenge that john boehner was. there is going to be -- this is going to add a lot more uncertainty to the markets than was there just a few hours ago.

>> ed, how are you calculating the degree of that risk to the markets? >> over the long-term this could be a disaster. what we're going to have is even if, say, kevin mccarty does become the speaker, he probably only become the speaker when he makes alliances with the conservative block of his party, folks in the tea party caucus, the freedom caucus, who are going to say if you do not have fights that are much harsher than what boehner was willing to do, we're going to remove you as well. >> i think part of the reason where he wants to stick around for one more month is he is calculating he might be able to get some of the debt ceiling debate out of the way before he leaves office. if he is able to do that, that's where the near term risk goes down rather than up. >> why flouns this today? yesterday kevin smith, boehner's -- told "time magazine" he is not going anywhere. why would you make an

announcement like this today? what does that achieve, and what does that signal about how ready he is to throw in the towel or how ready the rest of the gop is to have new blood at the top? >> i think after the pope was out of town, i think they had to assess kind of how real that battle was. he probably would have survived it this time around, but how much did he want to go through with this, and ultimately, kind of step down. he is an institutionalist at heart and kind of transfer maybe over to kevin mccarthy and get a fresh start and kind of show that, you know, kind of going out on top for john boehner who is a devout catholic. what better way of ending his speakership than having to be the first speaker to invite the pope to congress.

>> there has been a new marginal risk at the very place we thought was safe. what do you do here, stan? >> well, i mean, first of all, this risk was likely there from the beginning, but everyone discounted it. >> what's going in washington, except when it gets really -- >> to start this kind of turmoil from washington. >> this will be one of the most turbulent times in congressional history throughout the united

states history. >> we've had a turbulent history, but i think people are knowing where you are headed. thank you for your time. appreciate it. as we continue to see pictures of the speaker leaving that meeting today. by the way, none of this is live. it's all happened earlier today. >> i heard john pain ser in line, so you couldn't do -- >> 13 million units. how much is weighing on this opening weekend? how much matters? >> i think there's a lot of chatter are not apple and whether they can keep up and continue these sales. they keep saying they're going to beat their last year's iphone

6 with this one. >> they wouldn't say this if they didn't have the orders. the question is how many people get the new phone, and if they keep it up worldwide in china with the new colors, like rose gold and other things. whether they can keep that line thing going. i think that's ultimately -- there are lines, and it's probably overplayed every time they announce something. not quite as exciting as it used to be. >> with every iphone the camera gets better and better, and the camera in the 6s is getting a lot of love. barrons says it could be a go pro killer. do you think it's that good? >> i haven't used it, so i don't know. different people say it's a great camera. i think all these phones, you know, including the samsung phones, all the android phones, the cameras are fantastic. the question is whether you are going to strap it on your head and behave like a gopro. ink people do that. >> it will be interesting to see what people use it for. the features, the pause thing where you can see before and after. it's pretty cool. the camera stuff is always

getting cooler and cooler. >> the camera is, indeed, very nice. i can vouch for that right now looking at a picture i just took of you. >> you look great, all you people. so handsome. >> i was actually at the store this morning. i had one of the earlier appointments. >> you thought it wasn't real because it was at -- >> they gave me a spot that didn't exist. 7:30 to 8:00 a.m. just because i was ip at 3:00 a.m. trying to get the earliest slot i could because i wanted to test out the process for the iphone upgrade program. i went into the store. went through the process. learned a couple of things. one, if are you trying to trade in old phones, apple does not give you a good price on your old phone. they tried to give me the same pri

price. >> it went really smoothly. something else i found they don't 2e8 you is they charge it for about three months worth of the upgrade program ahead of time. >> they want to make sure that you've got credit. it was a good smooth process. if you have people waiting a couple of days in line, it's just because they have a cause that they're trying to promote. there were a number of people. sprint was out there, and delivering a phone to someone outside the store 15 minutes before they let us into the store to say, hey, here's who is getting the phone first. otter box was out there. the international cause was trying to get people's old iphones and had people in line for a long time.

>> we have some reporters at the apple store in union square, and we'll see. we'll see how it is. it's not the same excitement as when it originally happened, but it's a marketing event. it gets people excited. i suspect in years to come that will not be a big deal. you know, apple likes that, the little party atmosphere around the new iphones. they cheer at you and things like that. i don't think it's quite the same thing, and it's getting -- to me it's getting a little tired, but we have reporters there, so there we are. >> an abelievated session, but it's always good to see you. cara swisher joining us at one market. taking a look at pictures of the 9/11 memorial in lower manhattan where the pope has made his way after speaking to the u.n. earlier this morning. this is expected to be among the more solemn of his appearances before he heads uptown and meets with some underprivileged youth

in harlem. procession through central park. all before giving mass tonight at madison square garden. just amazing to watch a 78-year-old man hold up during the incredible few days in the u.s. >> quite a pace for the pope at ground zero. he is going to be leading an interfaith service for muslims, jews, christians, sieks, and hindus. he will be meeting with family members of victims who were killed in the 9/11 terrorist attacks, and you can see the crowd he is drawing there, the crowd he has drawn at every station of this visit has just been incredible, carl, at central park this afternoon. scalpers are selling tickets over $100 just to get a glimpse of the pope in the popemobile through central park. >> we expect him to pray at the memorial. there's cardinal dolan. we'll bring you pictures of that. in the meantime, we're getting some reaction from various congressmen to speaker boehner's decision to resign. paul ryan has spoken out. kevin mccarthy as well.

we'll talk about blackberry earnings with john chen after a break. e world has gotten you fa, but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running.

>> second quarter earnings. take a look at the stock right now. down quite a bit. 4.5%. ten-year lows and revenue as they shift their focus away from hardware. john chen, the ceo of blackberry, joins us now with a first on cnbc. john, a couple of big items

here. you're releasing an android phone in partnership with google. first, let's talk about your core business software growth has been with you. it's been happening as the core of the strategy, and it does not seem to have matched what many were hoping to see in this past quarter. is this cause for concern? >> no, it's not a cause for concern. let's talk about the software. there are two components of software. one is our core business, which is our server business. that grew 33% on license year-over-year. so that's very gratifying. the second one is the ip licensing. ip licensing didn't happen this quarter. it will happen in the second half. we just are building up that business. it's not a big concern of mine. >> as far as the android phone, i've been asking you for years. literally, you are doing it, but as we've seen in the android marketplace, if you don't have samsung on your phone, you are having a really hard time making money off of android phones.

why is blackberry going to be any different? >> we have the claim, obviously, and the technology for the most secure and most private phone. i heard a great line today of security is what i provide and privacy is what you got. we're very much focused on the privacy side of the equation. from an anned user's point of view, and so that set of technology is -- we believe adding that to the android ecosystems a goodwiner, a winning combo. >> a few weeks ago you are announcing a deal to buy rival good technology. we spoke on the phone at the time, and one of the things that you told me is that good strength in ios devices, that it is managing on the enterprise side is a nice compliment to your current business. since you announce that transaction, whatsoever feedback have you gotten? how has goods trajectory changed if at all? >> the good trajectory, i can't

comment on, because we still are under -- we file the anti-trust. we're waiting for that. until then i shouldn't be commenting on the acquired company or to be acquired company. the feedback from the customers from my side of the equation have been really positive. as you pointed out correctly, i mean, for us to really realize the true proteshl, we do very well obviously on the blackberry device, the old one and new one, as well as android, and that's been growing very, very rapidly. some ios is not going as fast. good technology. 64% of all their licenses is ios based, though i think the combination may be pretty formidable in the space.

>> they're basically valuing it at zero. is that fair in any way? >> no. of course not. i could see why people wanted to see -- we have a lot of moving parts. a lot of good things that are happening in the software and iog and automotive industry. obviously that's not being valued correctly arks coringed to me, obviously, i'm somewhat bias from that perspective. we do have $1.25 billion of debt, so it's not exactly zero, zero, but nevertheless, it's too low a valuation from my point of view. >> does that affect you at all? you spent a long time in your first year, year and a half at the company trying to assure customers that you are aren't for the long haul. you have the cash. does this mean that you are still on track to have the hipa

cash flow level that is you intend and that you have set despite the concerns that some have over the software levels of this quarter? >> oh, yeah. i think of all the customers i spoke to, they all understand that we're fine as a company. we're financially stable and viable. we generated, by the way, last quarter about $100 million of free cash flow. we're adding to our cash pile. it's now $3.35 billion. we're starting to buy back stock. i got authorization to buy another 21 million shares back, as of yesterday. 15 plus the six that i already had. we -- then we've been acquiring companies as well as doing organic growth. i'm comfortable in where we are, and i understand the market will want to see the proof, and i can respect that, but this is a good story to follow. >> all right. well, at least you got some interesting buyback levels for

that authorization. john chen on blackberry earnings. thanks so much. >> thank you. >> meanwhile, lawmaker from both sides of the aisle are weighing in on the surprise resignation of house speaker john boehner. >> a lot of people are turning to now as the possible successor to john boehner. his statement within the past few minutes. our country had better difficult times. always moving forward with the best interest of the american people. close to his heart. he will be missed because there is simply no one else like him. mccarthy going on to say now is the time for our conference to focus on healing and unifying to face the challenges ahead, and always do what is best for the american people. kayla, i have on tell you this sort of shakespearean drama we're seeing play out at the top of the republican leadership now reminds me of history repeating

itself. remember, john boehner himself was one of the republican insurgents back in the early 1990s. he was part of the gang of seven republican members of congress who were very frustrated in those days with the leadership of bob michael, a republican leader they felt was too inclined to compromise with the democrats. boehner then became one of the to lieutenants to newt gingrich in the gingrich revolution pushed michael and that -- republican politicians to the side. now boehner facing his own group of insurgents facing a very similar dynamic. the big difference here is john boehner is much more conservative than bob michael ever was, guys. >> eamon, who would you say is the newt gingrich of this shakespearean drama? >> well, that's fascinating. you look through this list here of the members of the house freedom caucus. it's the tea party generation that came to congress starting in 2010. you see if there's any number of that will take that mantle up,

and we're seeing a name is being flung out there on twitter by all sorts of people on capitol hill. in the meantime, pope francis has arrived at ground zero just a few moments ago. let's get to mary thompson who is live today in lower manhattan. hi, mary. >> hey, carl. he arrived at ground zero just about 15 minutes or so ago. stopping and immediately saying a prayer at ground zero.

who also visited ground zero back in 2008 when he was in new york city. now, what will happen at 11:30 the pope will participate in an interreligious or an interfaith event in the 9/11 memorial. that is a closed event so there won't be any tape or feed coming out of that. again, he will do this in spirit of this dialogue that he has been encouraging ever since he stepped foot in the united states saying that we have to speak to many different people from different points of views in order to solve the problem that we have here. that is, again, in keeping with that. just moments ago, again, pope francis setting foot on 9/11 saying a prayer and then greeting some of the families of the victims of the 9/11 attacks. carl, back to you. >> mary thompson watching the pope for us today. mary, thank you very much. dow is up almost 200 points here. getting a big boost from nike, which is far and away the top performer today after earnings. we'll talk about some of their internals and talk to our cache

of director of floor of operations after a break.

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>> trying to wipe out the gains for the week. europe support quite going to get there. >> it's a very good session, as you can see, for those that are along the market. the bulls in the market. the fact that janet yellen last night played up the strength of the economy here, played down international developments and twice mentioned the possibility that they start raising rates before the end of the year has added a normalcy, if i can put it that way, to what's going on. to the point that carl makes, you're only cutting losses that you incurred earlier in the week. take a look at where we're tracked for the week. the stock 600. the german dax. german dax. i think i'm right in saying on the move today with that 3% gain slightly just slightly out of correction tirtory. certainly from the close on the 31st of march. nonetheless, daimler remains front and center. volkswagen remains front and center for many people.

still waiting the result of the supervisory board, the new ceo, and who is getting sacked. volkswagen has turned down on the session. it was higher earlier. for the week volkswagen is down 34%. by my calculations, that is a loss of $39 billion of market cap. i mentioned daimler. daimler has had to come out and categorically deny that it's had manipulation of its own results as everyone gets caught up in the swell of the automotive industry. it huts a lid on europe. those that would be quite price sensitive like airbus or l'oreal. you have seen the luxury goods advance for a similar reasoning across europe. carried, which owns gucchi, and

cartier. some of the chips at least. army is up 6%. initiating a buy there. you can see other semiconductors have done well. interesting, a lot of the asset managers and big insurers have done well as well today. when you see asset managers moving higher, that's a good view as to where the markets might be going. acon a top. morgan stanley initiating that one other than overweight. guys, we also, of course, this weekend have an election in catalonia. i think i'll leave that until monday. back to you. mroo seems to be an election. >> it's not going to lead to independence. >> good to know. simon hobbs. have a great weekend. meanwhile, dow is coming off the highs of the day, but seems silly to say that when we're still up 190 points, and now turning slightly positive on the week. joining us on set art cashin, dreshlgt of floor operations at ubs. great to have you. even without nike kwli, which, of course, is adding 70 points

to the dow. >> is this all? >> i don't believe so. i think you got a big boost from yump and bmw. >> can you see that stock is up. >> the other thing is, and we havation bit of a divergence here earlier right after the boehner announcement, and completely unconnected. oil began to spike up above $46. that put the market up at its highs. now oil has booked off from the highs, but we're not backing off much from the high so far. that's an interesting divergence that traders will watch here. >> because of the boehner announcement, we're now talking more than ever about the potential. i wonder if you think --

>> will it provide more bumps in the road? yeah, i think so. >> art, what about potential shutdown right in the middle of a holiday season? would that have an impact? is the market factoring that in? >> i don't think they're factoring in any extensive -- i think they're looking at most one or two day shutdown. i can get enough votes to get this through. that will probably lead it a short-term sloogs, but you probably can get close to year

end that way and through your holiday season. >> early backer of alibaba, jeff richards, and we are awaiting a news conference from volkswagen in germany. all that coming up after the break. can protect capital long term. active management can tap global insights. active management can take calculated risks. active management can seek to outperform. because active investment management isn't reactive. it's active. that's the power of active management.

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>> cyber attacks and call those meetings with silicon valley ceos in the middle of the week. >> it's great to have you on such a momentous week before china-u.s. relations. >> great to be here. thanks for having me. >> it's the 18th chinese internet industry forum. do we expect more to happen than did? >> i think expectations were probably a little higher than reality. what you saw --

>> chinese business execs and tech leaders in town for the meetings. we did see some notable tech relationships come out of it. >> they notably have a relationship with baidu. there's a collaboration between u.s. tech companies and maybe marking that, and obviously today's meeting with president obama is probably the most important part of it. >>. >> the conversation, of course, happens today over cyber security in an interview with the wall street journal -- commercial secrets that were ever lifted that china has not been behind any of these cyber attacks. it appears that the u.s. and china are coming from very different places on this issue. how much ground can be bridged? >> it's an important topic, and it's probably the most important topic for the next five to ten years. it's something we're all focused on in silicon valley. i know the chinese government is very focused on it as well.

it's very important for them to have. >> arguably the most important growth market for the next five to ten years. >> has silicon valley and u.s. tech in swren figured out where the icebergs are in the waters of china yet, because we keep seeing different big tech companies whether it's cisco, qualcomm, even microsoft running into some unexpected troubles there now and then, but now you see cisco back at the table at this meeting. apple just a few hiccups have big build-out plans out there. is it smoother sailing from here on out? >> i don't think it's smoother sailing. hooin is a tough place to do business. i understand wra is a tough place to do business. brazil is a tough place to do business. i don't think it's getting ease wrer, but i think the american

companies are finding relationships in local partnerships that maybe are better than they've ever been. you have folks like alibaba reaching out and making investments in the u.s. >> it's a hard market to do business. it's a market that american tech companies can't ignore. if you want to produce growth, you have to be in china. >> no question that's why mark zucker burg had a conversation with president xi in mandarin. we'll ehow that plays out. facebook blocked in chooirn. we have a lot to go in this relationship. jeff well, appreciate you being here. >> thanks for having me. >> jeff richards from gdp capital. >> congressman reacts to spiker boehner's resignation. we'll take that, and getting closer to when we expect that volkswagen news conference on one of the busiest news days we can remember. dows off the highs up 179. back in a minute. here at the td ameritrade trader group, they work all the time.

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>> coming up on the halftime show in just a few minutes, we'll have breaking news at the top of the hour. that historic news conference with president obama and china's president xi. we'll bring it to you live. plus, janet yellen lifts the markets with clarity perhaps on future rate hikes. we'll ask mohammed if she's going to stick to her plan, and the potential ripple effects of house speaker boehner stepping down. we will discuss all of it, carl,

in about 15 minutes. >> let's get over to the che. >> wow, is there -- this is one wild 24-lower news cycle, huh, carl? it's just amazing all the things going on. the only thing i can think of is short-term gain is not what we're thinking of. we're looking for a little pain to get the long-term health right. that seems to be the crossroads. didn't have the confidence to raise a quarter of a point or normalize in the face of what may ultimately need to come back down, garner a little insurance.

at the very least, take some control in the marketplace. i think that's what made the market nervous. >> when it comes to john boehner, it explains a lot in that regard too. what's the status quo with regard to congress? what's the status quo if you happen to be one of those, what, the crazy conservatives that came in in 2010 that took over the senate majority in 2012? is the status quo good? no. that's why all of that is happening. if you are a minority, a wrung person, you look at your debt,

you look at your job opportunities, you look at your unemployment based on history, that isn't a good status quo, huh? when you look at how many people that couldn't work -- does that stack up to status quo. when you look at the federal reserve policies, and nobody could give you correlations for the damage it may be doing down the road or the 19 trillion in debt, how does that compare to status woe? >> division is the seed of change. if you don't get the change, there's not a lot to hope for. back to you. >> rick santelli in chicago. rick, thanks. >> up next, house republican congressman tim will react to house speaker john boehner's resignation. squawk alley will be right back.

>> getting word of speaker john boehner, that he has decided to reside from congress and resign as speaker. in the middle of his statement, the first job is to protect the institution that we all love. it was my plan to only serve as speaker until the end of last year, but i stayed on to provide continuity to the republican conference in the house. it is my view, however, that prolonged leadership turmoil would do irrepairable damage to the institution. to that end i will resign the speakership and my seat in congress on october 30th. god bless in great country that has given me the son of a bar owner from cincinnati the chance

to serve. eamon has been covering this story for us all morning long. your take on this? >> he just recounts this poignant moment here from john boehner after the pope's visit in which the speaker was leaving the capitol last night and wanted to just enjoy that moment with the pope one more time. >> we know he is an emotional man. a man who has put his heart and soul into the republican party and to the congress of the united states, and now to see him go out like this, you just get the sense that republican history is repeating itself. we have seen time and time again where republican leaders have been deposed by unhappy factions within the republican party, and boehner knows that better than anybody because he has been

living it for so many years. >> although for a job that has come with so much peril, eamon, people are pointing out there's something different about this departure. we don't know exactly what, but it certainly feels different. >> no political future to have a deal with remaining moderate republicans in the house to keep the government open. the question, i think, now is what happens in the leaderless republican party going into december that the short-term continuing resolution of government's spending bill will refund the government through december.

>> they want to stop this government. they want to stop funding for planned parenthood. i'm not sure how you resolve this in that political moment when you have a new leadership that comes in saying we've got to fight or the same thing is going to happen to us. >> well, to that end, eamon, thank you. we are going to talk with republican congressman tim's camp in a moment and see what change he would like to say. dow still remains up 1 3. the best day for nike in a year. talk about that and more in a minute. we believe active management can protect capital long term. active management can tap global insights. active management can take calculated risks. active management can seek to outperform. because active investment management isn't reactive. it's active. that's the power of active management.

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can your business deliver? >> we're just a few moments from what we expect would be a press conference in the rose garden with president obama and chinese president xi jinping. had a bit of a ceremony on the south lawn. a bilateral around 10:00 a.m. we are expecting some -- maybe a couple of questions to both the president and president xi. michelle caruso cabrera on our air. i asked what she would ask. she said her question would be why is facebook banned in china, which could elicit all kinds of responses, but it will be interesting to see what path they both take in response to the q & a. >> facebook, twitter both blocked.

google left the country by its own val igs because it found operating there too difficult. then, of course, there have been the challenges in the last few years that china sites are privacy, national security concerns. >> in the meantime, breaking news, of course, this morning. speaker boehner the sudden announcement that he is stepping down as speaker and retiring from congress at the end of october. joining us this morning republican congressman tim hooul's camp joins us as well. it's great to see you again. good morning. >> hey, good morning. pleasure to join you. >> you wrote this morning today the establishment lost. what did you mean by that? >> absolutely. john boehner was the -- he has not been the man to lead the republican party in 2016, and i think it's a great day. finally, we can hopefully elect a speaker that actually can not only believe in, but articulate conservative principles. he has had a long career. probably too long. 25 years of serving in congress. we need a speaker for the 21st century that can actually bring the party back to life. i think when you look at the

republican primary and the presidential side, you see candidates that are not tied to the establishment who are winning. this is a great day for those that are looking to see changes in wash wish wash. conservative changes in this town. >> congressman, you call it bringing the party to life. others call it discord, dysfunction within the party. which is it? do you see any merit to the fact that this is not resemblance of a party that has got it together is ready to glovrn govern? >> as speaker john boehner has spent more time attacking conservatives than heent went after the united states, his super pact went after me and dozens of others. he never ran a super pact ad against planned parenthood or president obama recently. instead of attacking conservativings, it's time to elect a speaker that will work with the kwshz in the party. that's the grassroots of the party. i keep telling these folks in washington. you think in the next election they're going to vote for you just because you're republican. there's a real chance that pro-lifers and other conservatives, grassroots conservatives, will walk out and say we've had enough. there's not a dime's worth of

difference between two parties. it's really driven by establishment attacking conservatives. if we want to win elections, we have to come together, and the bid money interests should not control this party. >> a concern on wall street is that if we get the sort of speaker that you want in early 2016 we're looking at a government shutdown. you think that's likely? >> i don't think that's likely. it will be a tragic failure if the last thing john boehner does as speaker is continue to fund planned parenthood, the trafficking of baby parts. that's got a line in the sand. john boehner has one thing left to lose, that's his pro-life principles. the president has threatened to veto any bill that doesn't fund planned parenthood. that's an extreme radical threat. i think we need the speaker, as long as he stays on, and whoever is coming along, we have pro-life principles and principles of basic dignity in human life as pope francis talked about, and i think this is a great time to actually move

forward on that and challenge the president and challenge his greatest political ally, which is planned parenthood. >> we appreciate your insight, and we'll be watching this one for sure over the coming weeks. thank you very much. >> thank you. >> tim. there's the rose garden. we'll await the president and chinese president xi. in the meantime, it's over to hq. the judge and "the half." >> kwarl, thanks. that's where we're going to stay. welcome to the halftime show. moments from now the president of the united states and china's president xi jinping will meet in the rose garden for that joint news conference. we'll take you there live as the leaders of the two most powerful economies meet reporters with many important issues on the table today. cyber security, the theft of intellectual property, hack, and the threat of u.s. sanctions as well. our chief international correspondent michelle caruso cabrera is on the north lawn for us today. michelle, this visit may have brought the