i love kevin o'leary. jim you got a final? >> next week is retail, all week long, there will be winners and losers everyone knows j.c. penny, see the result, you can pick your winners and losers k078ing forward. >> you have a final? >> no, i think the market "options action," you can't tell the after effects of the press conference. >> that does it for us, too, have a good weekend, everybody. "power lunch" is now. >> you are looking live at the boeing facility in north carolina. >> that is where president trump is about to speak t. stocks on the chair, hitting an all time high today of $172 bucks a share in today's session. we will take you live to the president as soon as he starts. >> your money as we await the president. the stock cally taking a bit of a breather on this friday. the do you industrials down 60

points. >> that number is a little misleading, a third of the down ends are higher. united help down about 3.5%. that's heavy and is dragging the index down as well. united health bringing down the marks. keep in mind for the best week so far for the year for the dow. >> brian, thank you very much. welcome, everybody. i'm tyler mathisen. a florida man is in police custody for allegedly plotting to blow up several east coast target stores. investigators believe he was attempting to target stock. a man arrested in korea, current will i the defacto head of samsung, accused of bribing the now impeached president. rain-soaked california bracing for yet more wet weather. forecasters say parts of los angeles could see the heaviest rainfall in six years. michelle. >> tyler, we begin in south

carolina, where president trump is expected to speak at the boeing facility. eamon javers is in washington. give us a preview of what to expect. >> reporter: things, plaintiffing in the usa, job creation as well as perhaps the export/import bank and the importance of keeping that funded, certainly for boeing, it is important. remember it was a year ago 245ir7 led by the tea party wing of the party hey it's crony capitalism. get rid of the export/import bank. general electric, a number of them said do you not want to get rid of the export/import bank. that's how a number of those customers, particularly where their credit rating may not be as strong. that's how they fund these multi-billion purchases, like a slew of new airplanes. now, donald trump is indicating he is in favor of the export/import bank. we are hearing he may talk about that a little today. >> that will certainly be welcome news, not only for

boeing executives but also about 6,000 boeing employees here on the floor. it's a little hard to see them right now. they are locked in this area. they are in front of the stage where we will be hearing from president trump, we expect in the next 20 minutes or so, like with all things whenever there is a presidential visit, guy, they seem to be running a little behind schedule. back to you. >> i'm shocked. import/export bank, that would be something quite twicive within republicans. it's such a large part of the tea party that does not want to do that. it's seen as corporate welfare, taxpayers subsidizing risky deals. . >> reporter: yes, right. even though, michelle the number or the default rate for export/import loans in december 0.26%. so this idea you are giving out money that's never being paid back to the export/import bank, the facts don't back that up. >> i know you know your stuff as well as anybody out there.

we were talking about jobs and manufacturing and automation. you might have we heard the mark cuban comment at halftime. >> do you have any idea how many people it takes to build a 737 now versus years ago, is it half the same, is it more? >> reporter: well, it's fewer to build a commercial airplane now than it was 30 years ago. how many -- how much has it been reduced? i have no way of knowing specifically. but i can tell you this, boeing, one of the great things that boeing has done, at least if you talk to investors is it has been driving greater efficiency. it doesn't mean they are laying people off. they are using fewer people to build this aircraft. this gets to what mark cube isn't talking about. you have more robotics, more automation. >> that doesn't mean they will get rid of the 7500 people at boeing charleston, in fact, they have been adding jobs. it does mean people who are hired on the manufacturing line, not just here around the country, they're doing a lot

more. their productivity rate is way above where it was just ten years ago. >> so where you are standing right now is a big focal point for the big battle going on within unions in this country right now. where you are, they voted overwhelming two days ago. they don't want to be unionized. a pretty significant event, no? >> reporter: which is interesting. because the site leader, who is warming up the crowd, if you will, about ten minutes ago said who's house is this? got the crowd worked up into a let lather. 74% of the approximate 3,000 workers who voted on whether or not to join the machinists. they rejected the idea. so this was not a close vote. 74% said no and as you know, when it comes to these types of activities, organizing a union, that means they can't come back and have another vote for a year. have you as to wonder, what you and i talked about in the past,

when it comes to manufacturing south of the mason dixon line, they don't like it to be organized by unions. you haven't seen the uaw organized here t. machinists have struggled here at the being plant. it's just not the way it is down here. that's why so much manufacturing has moved down here. >> they fear becoming less competitive, i think. thanks, so much. we are still standing to make $23 bucks an hour, walk state more than 30 bucks an hour if you are a boeing employee. eamon javers joins us to talk about it politically. >>ment. >> reporter: we have been told the president got his tour of the facility where you saw phil speaking. the president announced it incredible, incredible tech nochlth it is hard to overstate just how tightly connected boeing as a company has been to the american presidency. every single president since fdr has visited a boeing or boeing legacy plant we are told. >> that gives you a sense of the import of that company overall to the american political

landscape, particularly so to this president, donald trump, who has now spoken in person with the ceo of boeing twice. this will be their third meeting today. donald trump very much views his negotiation with boeing over the price of the new air force one aircraft as a central victory of the early stages of his presidency. here's what he told a group of members about his association with boeing and lock heed yesterday. take a look at this. >> i'm negotiating a lot of contracts that are save billions and billions of dollars for the american people and for all of us. i am very proud of it. you know the 835 fighter jet. the air force one program, which was totally out of control and now it's back very much in control. and many other things. >> reporter: there you we heard the president calling the air force one program totally out of control, now back under control. he clearly views this as a negotiating success in the early stages of his presidency. boeing, for its part, is going to want to continue to have that

relationship with the president of the united states. they are very closely linked at the hip with the air force one deal and the company does this visit cements all that and, of course, goives the president an opportunity to talk about jobs, jobs, jobs the central issue of his presidential campaign. michelle. >> i will make i pick it up. thank you very much. we are as ayman said, we pointed out, waiting on the president at the boeing plant in south carolina. he likes to come around 1:00 for us. we are glad to have him. let's bring from jerly bernstein on budget priorities and former economic adviser to vice president biden. we hope to be joined by ron christy in just a moment. we'll see about that. let's start with this boeing visit that the president is making. and i'd like to get your reaction to the fact that the boeing workers there voted by 3-to-1 not to affiliate with the machinist union. what dhauz say to you, maybe, about the particular

circumstance at that plant or about the health of unions in america? >> i think it's a great question. i think one of the things it says about the circumstances of that plant is that plant is in south carolina and folks with a few-years-old memory will recall that boeing went from pugent sound in washington state to south carolina to build the dreamliner, in part to avoid unionization. and that play has worked out for them as per this posted which i suggest is overwhelming. but i wouldn't dismiss the role of the union. a, they'll come back. all they you are right, it will be a while given how big they were. but also when you got that kind of an organizing driving, it does put pressure on management, vis-a-vis job quality. i actually think these are good jobs for south carolina and you know a part of that is because that pressure is kind of always there. >> you say the only once an hour? $24 an hour? >> to be fair, it's a lot.

can you live $24 in south carolina is probably $50 in seattle given seattle home prices. i mean. >> that's my point. >> these are good jobs already. >> exactly. mercedes is in alabama. hyundai is in alabama t. weather is better. everybody is moving there. jared, watching trump's press conference yesterday as a former official in the obama administration, i mean this with love and affection, did your hair catch on fire? >> yeah. it's charred. you may not see that on tv. i wrote about the incident, the interchange with the reporter from the urban newspapers who last i'm in ryan which i just found to be really pretty offensive and offputting the black caucus. i think given the conversation you guys had this morning, i think what's key is is that what you don't hear in these press conferences at all is any substantive policy. you hear a lot of campaign rhetoric. you hear a lot of bravado. you hear a lot of what i think you will hear today down there in south carolina. boeing, which is, you know, i'm

great, boeing is great. jobs are great, but i have yet to hear any of the kind of connected tissue between all this greatness and what trump is actually going to do to help his voters. >> isn't that what paul ryan is supposed to be doing, kevin brady? they're working on the corporate tax reform bill. they're working on obamacare bill. ultimately, it's congress that writes legislation, just like president obama hand over to nancy pelosi at all, go write obamacare? >> not really. i mean, i'll tell you as someone who worked in the white house when there was a lot of stuff being done, where the white house stands on legislation is critically important. if you actually talk to legislators about the border adjustment tax, which i know is a very big deal around these parts. something by the way that boeing probably writes. >> they do. >> because their exporters. what everybody is waiting for is the white house to weigh in. so the absence of a kind of coherence systematic policy voice. >> let me ask you on that point, based on, we have now learned in the last 24 hours, we believe

steve bannon is a supporter of the border adjustment tax. what you we heard in washington, d.c., that would give it a big powerful push. wouldn't it? >> you'd think so. i can tell you that i think the border adjustment tax is pretty likely dead. tax reform in washington is like it never happens until it happens. so i don't want to rule it out. but i think the likelihood of that getting over the legislative kind of hurdles that it faces, given the pressure from importers is just too high. i don't think it's going to stick. >> do you think that the gop will be able to get anything done with taxes? >> yes. >> it's like three years to get something done. do you believe we will get some kind of package? >> i absolutely do. reagan faced a much more difficult congress. remember george w. bush, who had republicans behind him? he got a pretty big regressive tax cut pretty quickly. i think that's what's going to happen here. there will be a significant tax cut and it will very much benefit the wealthy. there will probably be a cut in the competent rate. but it probably won't be paid for by border adjustment tax.

>> that means it will create a lot of red ink. >> all right. thanks very much. stay with us. we will have a shark tank battle over president trump. it took place right here on cnbc on the halftime report. if you missed it, we will show you the highlights. stick around. also, of course, we are waiting for president trump. he's about to speak about jobs t. boeing 787 plant in north charleston, south carolina. i hear applause coming up? it's not him to the left there? all right we will carry it as soon as it happens. don't move. whether it's connecting one of the world's most innovative campuses.

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>> president trump is expected to speak at the boeing facility in north charlotteton, south carolina. we will carry it as soon as he begins. in the meantime, a big "shark tank" battle royale at the halftime report between kevin o'leary and mark cuban. here's the highlight. >> trump has a style. he makes statements. but at the end of the day, my assumption is for the good of all of north america, including mexico, he is going to be

pragmatic. >> computer kill. >> are you saying he is not practicingmatic. these decision as leader and on everything he is doing are not being practicingmatic and there is a risk of destroying north america. that's what i hear in what you are saying. i don't agree with you. i'm okay to push back too. remember we all enjoy freedom of speech. >> that's fine. >> he's not going to trash his own country and the trade he does with canada and mexico, because he's pragmatic. you don't like his sometime. that's what i think. >> remember during the campaign peter teil came out. he gave a lot of people comfort. he said, take him seriously. don't take him literally. now january 21st, donald trump, president trump is trying to be very clear that he is going to uphold all of his campaign promises. >> that you should have taken him literally and he will respond literally in the actions and orders to get passed. >> look, i make the assumption, mark, maik maybe you should be

thinking one day i'll be negotiating with thisgy for the benefit of both you and me. >> god besse us all. >> scott wapner, are you the master of someone stainious combuchlths what happened? this just happened? it just happened. >> right place, right time. >> i mean the next "shark tank" will be interesting the next time they go out to l.a. and do that. you know what started this whole thing, what got us interested in the first place, there had been a bit of sparring back and forth between the president and mark cuban in the last couple of weeks. as recently as, you know, yesterday, mark cuban tweeted a couple of things, among those, it's a waste of time to try to turn pinnochio into a real president t. focus needs to be on the gepetos and legislators around him. he went on to say some of the good things president trump had done and sort of took issue with some of the this i think so that he didn't agree with, saying that his biggest issues are no self aware inside, no situational awareness, can't admit mistakes, no leadership

skills, can't stay focused. that's the genesis of how this happens. kevin o'leary has a different point of view. he said, look, you are not giving the president a fair shake. >> you are judging him on style. >> it's a month into the administration. give the guy a chance to do what he said that he's going to do and mark said, look, as president, he should be leading by example, not doing some of the things or acting the way that the president -- >> it's relatively positive comments to trump. to that end, you got to give him a shot. mcconaughey said that and got blacklisted out of hollywood for months. >> he said things that are good, tax, bur rocky case, sec, they're positives in mark cuban's mind if he can get those things done. some of the things he obviously disagrees with. >> i hear a lot of the criticism that the people who don't like president trump really do

dislike the style. he's not presidential. how come he doesn't know the number of electoral votes? he upsets them in a really dramatic fashion. whereas i think his supporters are like, this is the same person who is on the campaign trail, he was no different yesterday. by the way, he is doing all those things that mark cuban said he is doing. >> i'll say a couple things on that. giving facts that are incorrect or as some in his administration have characterized them as alternate facts should be rightly criticized. 100%. but it's a total change. it's like a force of nature has come into the white house unlike anything that people have seen. >> yep. >> and it's taking some time to get used to. >> but jerry bernstein senior fellow on budget priorities and adviser to vice president biden also joining us is ron christy, former special assistant to president george w. bush. ron i want to get to you.

you have been in the white house the last couple of days, radio it? the story line in all the main stream media is this is a place that is in disarray, chaos. what are you seeing on the inside? >> good afternoon, michelle. it certainly wasn't the white house i went to. people were working very hard, very quietly. jared, of course, knows what it's like to be in the administration on the opening days. i was actually surprised by the level of tranquility i saw inside the trump white house, inside the trump west wing. i looked at that and said, boy, there must be some media folks that haven't walked these halls. i certainly did and did not see a staff and a white house in chaos. >> that's so great. we are so glad to get the real inside access. if you read the stories, you think that everybody was running around screaming and there was nobody in the white house doing anything. it's great to hear that. during the first days and weeks and months of the obama administration, we do admit that people on the far right wanted obama to fail. >> that's right. >> do you believe, ron, there are many people, some in the media, who seem to openly want

trump to fame? >> oh, they relish in the opportunity for president trump to fame. they don't want him doing exactly what he is doing. like him or not, president trump is doing exactly what he said he was going to do. he is upsetting the apple cart of business as usual here in washington, d.c. you call it draining the swamp. it is absolutely what a lot of people, millions of people voted for, they said politicians have lied to us. politician versus made promises that they haven't kept. we want a new leader, a few direction and donald trump has certainly given that to them, whether the media likes it or not. >> do you think a lot of people on the left want him to fail? >> i don't know. >> would they put it that way? >> i don't know. you know i certainly don't. i very much would object to that view. i will say, by the way, that when we took office with president obama, gdp was cratering negative at a rate of 8%. we lost 2.1 million jobs in the first quarter, if anybody should have been freaking out, it should have been us.

we were concentrated on getting the recovery act in place. >> but, hold on, hold on. because the point, you know, we get all that. i guess the point i was trying to make is, actually i was sitting at dinner last night, somebody i knew came up and said what is the media do something it seems like they are trying to trap the media. i said i can't speak for the whole media. we have our show here. can you had mit at all, somebody that worked in the obama administration the coverage of trump has been decidedly negative, almost for three weeks. >> well, yeah, i think there is a kind of a two-sided thing going on there. the "saturday night live" skrechs are not created out of a whole cloth. he obviously has a hostile relationship with the media. i think it's a way in which he dangles the key to say, don't look at what we're doing or not doing over here in the chaos and let's really get excited about this media fight. and i totally agree with you that there is some, you know, real negativity on both sides

there. but i also think it's kind of distracting. in many ways, distracting from -- >> we want to tell people what's going on, on the screen. are you oright-hand the left side of the screen, the people at the plant are able to see, we will put it on a large screen there. the president's plane air force one. they have opened the door and they're going to be able to see president trump walk out of the plane live as it happens. >> i wanted to ask both of you to sort of scott's point about facts being facts or whatever they are. when the president repeatedly yesterday said and i don't think he was speaking solely about the economy. i want to turn it back to the economy, if i might. he said, i inherited a mess. ron, diltd he inherit an economic mess? >> i think, timer, to a certain extent he did. yes, there has been solid job creation over the last several months. if you look at the work participation rate, we are at the low nest a decade. if you look at the number of economies displaced.

94 million people. who are the people actually working? they're folks who have more than one part-time job. so there is still a lot of ways we need to go. there has been solid job creation. it's still not nearly good enough to keep at pace with the number of private -- >> repair the mess he inherited to the mess mr. obama inher redd? >> say that again go compare the mess mr. president trump inherited to the one mr. obama inherited. >> no question, he has a better handoff, that, there is no question. >> i mean i think if you describe this economy as a mess, then we have a very different definition of that word. there is no question that there are some pockets of weak demand, and ron correctly identified them and they're important. but, you know, we're in a situation where the federal reserve is on an interest rate raising campaign because they're worried about things getting too heated up.

that's not only different from the handoff, but that's a suggestion is that we're close to full employment. the thing that i'm scratching my head about. i think that debate in the last segment that you guys were talking about the "shark tank" debate was really, really interesting. i commend our moderator there. i thought that was very artfully handled in the way you let that go. because what i'm kind of scratching my head about, ron may have different views on this, is that washington is really in a very chaotic state in terms of the first few weeks of the trump administration and markets are brushing that off because they think they're going to get a tax cut and deregulation. i think that disconnect is really interesting. i kind of agree with mark cuban that what kevin is calling animal spirits, i think is kind of a secular bubble based on trump's stuff that's probably not going to work out so well. >> all of us moderators are at our best when we see the loose. so. >> especially when have you those two.

>> ron owe 14r0e. >> yeah, i was going to say, i agree with jared on this, if you look at the real payoffs, it's the walk consultants the washington chattering class here they can't quite put their arms around, what does a donald trump presidency mean for us? when he talked about draining the swamp. i was looking at the advance copy of theed a machine strax, he said i will work on behalf of the american people, not the pundits in washington and he is definitely taking aim at people like us, mike i like me, who he doesn't believe work on behalf of the american people. it set a lost of corporate folks on a lot of tension. >> hold on one second. we are watching president trump arrive at the manufacturing facility. phil lebeau you are on the ground there, what's the mood? >> reporter: oh, he's getting a rousing applause, not surprising. this is conservative trump territory. he is going up on stage right now. he is joined by the boeing ceo dennis mullenberg. we expect to hear from him, not

very long. then we will hear from president trump. again, he talks about manufacturing, jobs and perhaps the export/import banks. we will hear what they have to say. >> it's been so interesting to watch the shares of boeing in the trump presidency he tweets he wants to can sell air force one on the one hand, yet there will be a lot more defense spending on the other. >> exactly. you know what's interesting is when those tweets first came out. i reached out to executives at boeing, they were shell shocked. they were like oh, what do we do now? it's a far different attitude and ten oar in terms of dealing with the trump administration. >> that doesn't mean they are chummy and best friends. certainly, that i have come to a better understanding of how to work with each other. >> they are standing on the stage now, let's listen in. >> reporter: i also want to thank all of our special guests here today. you will be hearing from president trump shortly here. i just had the privilege of

watching this factory with people wanting to -- i'll say i think he was impressed with what he saw. by his own interpretation. we have amazing work going on here. the rollout event is a historic and inspiring event. this is the first 787-10 built right here in charleston. an incredible airplane that will clang the world for our customers. and when we roll out a new airplane, remember all the investments that have gone into this. this area here seven years ago was swamp land. today, today after $2 billion in investment and partnership here in the community, this is a modern aerospace facility building the highest technology airplanes in the world and we've added thousands and thousands of

jobs over that time period. [ applause ] this is about manufacturing in the u.s. going forward, boeing is going to be spending another $ breathalyzer of r&d and capital in the united states this year, investing in innovation. the new paid hangar here at charleston is just another example of that. [ applause ] and going forward, mr. president, our commitment to you and to our country is that we're going to continue to build dreams. we're going to continue to grow and sustain jobs here in the u.s. and we're going to continue to bring innovation, bring new innovation to our customers that allows them to connect, protect, explore and inspire the world. [ applause ] so on behalf of 150,000-plus

boeing employees, including many here today working across three shifts two took the time to be here, across more than 1.5 million aerospace workers in the u.s. in our supply chain, it is my great privilege to introduce the president of the united states, donald j. trump! [ applause ] usa! usa! usa! >> thank you, guys. i have to say, i love south carolina isl carolina! i love it. remember, we came down altogether, we came down and

this was going to be a place that was tough to win and we won in a landslide. this was a good one. so i want to thank the people of south carolina. and your governor, a tremendousgy. he supported us right from the beginning. so i'd like to thank governor mcmaster for the incredible job. he's right here some place. thank you very much. you have been fantastic. and i have to say also that is one beautiful airplane! [ cheers ] congratulations to the men and women here who have built it. what an amazing piece of art. what an amazing piece of work. thank you, dennis, for the invitation to be with you today. you know the old days when i made this speech, i got paid a lot of money. now i have to do it for nothing, so. not a good deal. but that's okay. we love it.

it's wonderful to be back in south carolina, especially with your new governor. where is henry? he's around here some place, where is he? stand up, henry. proud of you. he helped us so much. and i want also to thank your former governor nikki haley, who is doing an awfully good job for us. she's representing america very well as our ambassador to the united nations. she is doing a spectacular job. it's early, but she has just been really great. we're here today to celebrate american engineering and american manufacturing. we're also here today to celebrate jobs. jobs. [ cheers ] this plane as you know was built right here in the great state of south carolina. our goal as a nation must be to rely less on imports and more on

products made here in the usa. right here in the usa. it's amazing to think that a little over 113 years ago, next door, in north carolina, orville wright was the first man to sail the skies in a very little airplane. the 1903 wright flyer was made of mostly wood and cloth. it was so small that orville's brother wilbur could not join him on the flight. he was always very upset about that. the flight lasted all of 12 seconds. but it was incredible. >> that flight was a testament to the american spirit. i see that same spirit everywhere i travel in the country. i saw that spirit all throughout the campaign. we have the greatest people

anywhere in the world. we have the greatest spirit and you just look at what's going on today in our country. you look at what's happening with jobs. you look at what's happening with plants moving back into our country. all of a sudden they're coming being. and they're going to be very happy about it. believe me. they're going to be very, very happy. as your president, i'm going to do everything i can to unleash the power of the american spirit and to put our great people back to work. [ cheers ] this is our mantra, buy american and hire american! we want products made in america, made by american hands, you probably saw the keystone pipeline i approved recently.

and the dakota and i'm getting ready to sign the bill, i said, where is the pipe made? and they told me, not here. i said, that's good, add a little sentence, that you have to buy american steel. and you know what, that's the way it is. that's the way it's going to be. we are going to fight for every last american job. we've come a long way since the wright brothers and their first flight more than a century ago. your plane is made of carbon fiber. it seats 330 passengers. it's 18-feet longer than the previous version of the 787. and this airplane can fly for half a day before it touches the ground. the name says it all, dreamliner. a great name. our country is all about making

dreams come true. over the last number of years ago that hasn't necessarily been the case. but we will make it the case again. [ cheers ] that's what we do in america. we dream of things and then we build them. we turn vision into reality. and we will be doing a lot more of that, believe me, in the months and years to come. i also want to say a word to all of the members of the armed forces who are here with us today in this record crowd. south carolina has a long very, very proud military tradition and history. we salute all south carolina military families and we salute all the men and women who wear

the uniform. we are going to fully rebuild our military. by the way, do you care if we use the f-18 soourp super hornets or do you only care about -- what do you think? well, i thought that was a super hornet. we are looking seriously at a big order and we'll see how that, you know the problem is, na dennis is a very, very tough negotiator. but i think we may get there. we're also working on the air force one project, which was a difficult project for previous administrations, but it looks like we are getting closer and closer. and we're financial to ensure

that our great service members have the tools, equipment, training and resources they need to get the job done. as george washington said, being prepared for war is the best way to prevent it. and that's really what it is. the best way to prevent war, being prepared. peace through strength. we build a military might so great and we are going to do that, that none will dare to challenge it. none. we will ensure our men and women in uniform have the latest, the most cutting-edge systems in their arsenal. right now, it's not that way. it will be that way very, very soon. believe me. you will be an important player in this effort. boeing has built many important

aircraft, including as i said, the f-18 super hornet. the f-15 strike eagle. and the apache helicopter, just to name a few. and i'm being very, very serious. the new air force one, that plane, as beautiful as it looks, is 30-years-old. can you believe it? what can look so beautiful at 30? an airplane. i don't know. which one do we like better, folks? tell me. p on every front, we are going to work for the american people. nowhere in our focus is and i mean this so strongly, and our focus has to be so strong, but

my focus has been all about jobs and jobs is one of the primary reasons i'm standing here today as your president and i will never, ever disappoint you, believe me. i will not disappoint you. i campaigned on the promise that i will do everything in my power to bring those jobs back into america. we wanted to make much easier, it has to be, much easier to manufacture in our country and much harder to leave. i don't want companies leaving our country. making their product, selling it back, no tax, no nothing, firing everybody in our country. we're not letting that happen anymore, folks. believe me. there will be a very substantial penalty to be paid when they fire their people and move to another country. make the product and think that

they're going to sell it back over what will soon be a very, very strong border, it's going to be a lot different. it's going to be a lot different. already american industry is roaring back and believe me, if me, not me, i'm a messenger, if we didn't have this victory, we wouldn't even be talking about it. to achieve that goal, we're going to massively reduce job crushing regulations, already started. you've seen that, that send those jobs to those other countries. we are going to lower taxes on american business so it's cheaper and easier to produce product and beautiful things like airplanes right here in america. [ cheers ] we are going to enforce very strongly, enforce our trade rules and stop foreign cheating,

tremendous cheating. tremendous cheating. we want products made by our workers, in our factories, stamped with those four magnificent words "made in the usa!" since november, jobs have already begun to surge. we're seeing companies open up factories in america. we're seeing them keep jobs at home. ford, general motors, fiat, chrysler, just to name a very, very few. so many more already, they're keeping and bringing thousands of jobs back in our country because the business climate they know has already changed. in arizona, intel announced it will open a new plant that will

create 10,000 american jobs. they're spending billions of dollars. we will see more and more of that across the country as we continue to work on reducing regulations, cutting taxes, including for the middle class, including for everyone, and including for business and creating a level playing field for our workers. when there is a level playing field and i have been saying this for a long time, american workers will always, always, always win. but we don't have a level playing field. very shortly you will have a level playing field again. [ applause ] because when american workers win, america as a country wins

big league wins. that's my message here today. america is going to start winning again, winning like never, ever before. we're not going to let our country be taken advantage of any more in anyway, shape or form. we love america and we are going to protect america. we love our workers and we are going to protect our workers. we are going to fight for our jobs, we are going to fight for our families. and we are going to fight to get more jobs and better paying jobs for the loyal citizens of our country. believe me. you've we heard me say it before, and i will say it again. from now on, it's going to be america first!

[ cheers ] working together as a unit, there is nothing we cannot accomplish. no task too large, no dream too great, no goal beyond our reach. just like you built this incredible airplane behind me, both of them when you think about it, we are going to rebuild this country and ensure that every forgotten community has the bright future it deserves. and, by the way, those communities are forgotten no longer. the election took care of that. and we will pass on to our children the freedom and prosperity that is their american birth right. our children will inherit from us a nation that is strong, that is proud, and that is totally

free. and each of you will be part of creating that new american future. i want to thank you, south carolina, i want to thank the great people of south carolina. god bless you. may god bless the united states of america and god bless boeing! [ cheers ] >> thank you. >> reporter: the president wrapping up a news conference at a boeing plant in south carolina where the 787 dreamliner is made. he praised the plane for being made in america. so he will continue to fight to bring manufacturing back to america. also commenting on the boeing f-18 super hornet fighter jet saying, quote, we are looking at a big order, presumably phil lebeau about the f-18. it's hard to know if he was referring to that plane specifically or a big order of military jets. either way, you got to characterize it as a good day

for boeing. >> absolutely. any time the president of the united states ends a rousing occasion like this by saying god bless boeing! i can see from here, dennis mullenberg had a huge grin on their face. who wouldn't want a big grin on their face after an event like this. look, donald trump gave the people exactly what they were looking for, a rousing dose of i will protect you. i will bring jobs. i will protect the u.s. made in the usa is the future not only for this country but the people in this area of south carolina. again, this is a conservative area. this is trump territory. you knew he was going to get a friendly applause here, that people wanted to hear from him. and he played to them. he definitely played to them. >> he was in a very good mood, tyler was saying, happy, compared to yesterday when he was clearly very angry. still with us, phil, don't move the president said it has to be easier to manufacture in the

united states. ron christy, can he really do anything about that considering what we know about wage rates around the world? >> well, michelle, i think we can. i think if he can work with the congress to find the way to cut the corporate income tax rate to make american companies more competitive to be in the position to hire more workers, i do. this was a great day for the president. the president is in a good mood. he's actually going out there and rallying his base and trying to say, i'm here to deliver on the promises i made. i think he can find a way to make america a lot more competitive in the days ahead. >> jared, i wonder how you look at his laser focus on job creation in the united states and whether some of -- whether some of the job announcements that have taken place over the last month, month-and-a-half had been previously announced or hinted, you have to really appreciate how focused he is on this particular topic and on

spotlighting the job creation issue. >> yeah. i mean, some of this is stuff that was going to happen anyway. i mean the intel claim has been well documented. it's something they were planning to do for a long time. but i definitely take your point and, you know, i think this was actually for a trump speech, this was kind of looked a lot more presidential than he certainly did yesterday. and kind of stayed on point, it looked like he was reading the speech the teleprompter. i want to say one thing about the question you asked of ron. i actually don't think the corporate rate is where there is much traction here. multinationals pay a lot more. what i we heard him say and often we heard him say the same thing is important in this sense is about this cheating. what he's really talking about there is currency manipulation the way some other countries manage their currency to get an export edge over us. i don't actually think that's the kind of thing the white house should be going after, congress should be going after. >> ron christy, this plane the

787 actually almost perfectly exemplifies the challenge to michelle's point about taxes and some of the other things that have to happen. because while the 787, which, by the way, a spectacular plane, it actually has head room, is built in america. it has major parts from japan, korea, australia, italy, the uk and france. >> brian is 6'4" by the way. so if those parts have to be imported and are subject to a tax, a border tax, michelle's favorite topic, that could make the plane less competitive on a global stage. >> no question about that. i think that's one part of what we are talking about what a trump economic agenda might look like, not just reducing the corporate tax rate. you are right, looking at the regulations, which i think inhibit job growth and inhibit creativity here in america. but that visual behind him, i think is perfectly the embodiment of what donald trump wants to do, keep jobs in america.

build things in america. use u.s. steel and find a way to have more products and services back in a minute here, for the american people. >> it was a great discussion. gys, unfortunately, we have to leave it there. we will have you back on soon. this discussion is certainly not going anywhere. much more around power lunch and president trump's visit at boeing in south carolina. your money, your politics, all straight ahead. whether it's bringing cutting-edge wifi to 35,000 fans... or keeping a hotel's guests connected.

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>> welcome back, everybody, markets right now the dow industrials is off about 64 point, nasdaq with a slight gain of about 6.5. the s&p 500 off hicks and three-quarters. unilever front and center in new york. bob is following that and more. >> reporter: the important thing the president is speaking, take a look at the s&p 500. it didn't move too much. we topped out on wednesday. not a lot of movement in the day as the president was speaking. we had two key leadership groups. one is bank stocks. banks have had historic highs. most of the big niems names hit

on wednesday. exxon is down almost 10%. chevron is hitting new lows for the years as well. there seems to be real valuation issues going on with the marks right now, certainly as regards the big oil stocks. some people are saying, we got to get into the 60s before these companies justify their valuations. obviously, the market is saying they don't believe that's going to happen any time soon. the bottom line on the markets right now, two under pinnings in the market. number one the trump rally, still intact, number two the global reflation trade. the global economy, the european and asian economies are all slowly getting better. those two underpinnings of the markets still very much intact. guys, back to you. >> the whole world at the same time, incredibly rare.

thank you so much. one big time republican calls the border adjustment tax quote a theory wrapped in speculation, inside a guess. next, meet the man responsible for the gop's tax plan, a professor from uc berkeley. >> that conversation straight ahead. are you entirely prepared to retire? plan your never tiring retiring retired tires retirement with e*trade. i'm in vests and as a vested investor in vests i invest with e*trade, where investors can investigate and invest in vests... or not in vests. sign up at etrade.com and get up to six hundred dollars. ♪ some things are simply impossible to ignore. the strikingly designed lexus nx turbo and hybrid. the suv that dares to go beyond utility. experience amazing.

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welcome back to "power lunch," here's what we're watching for you at this hour. the president talking jobs and touring boeing's facilities in charleston, south carolina. he once again promised to put america first, protecting american jobs and punishing companies that leave america, to move jobs overseas, we will get a live view, by the way, of the president sitting inside the cockpit of i believe that is the boeing 787. it would seem to be. that's the plane they were building. meantime, shares of kraft and nestles rallying on merger talk news. who might be next? and anybody that had unilever marriage. we are like in coal country. what the president's new orders mean for the people there who desperately need a rebound. >> there is your captain speaking.

captain trump. >> can you imagine? >> make that line great again. >> make flying great again, big league. >> there he is. >> wow, very cool. >> you have been speaking at that facility down in south carolina. that's a live video of the president on board the boeing 787 the dreamliner, the name he applauded. fill lebeau is live at boeing's facility. captain trump in command, phil. >> ha ha, tyler, did you see that picture? >> he's in the seat of the 787-10. no doubt talking with a boeing executives including dennis mullenberg the ceo about the dreamliner, the most advanced if you will, certainly the largest one. he's going to tour maybe for another minute or two, then he comes down and he gets escord over to -- >> i don't know if you can see the picture. there is jared kushner, ivanka

trump and gary cohn obviously been in there as well. >> and so they've just, i think about four, five minutes total inside the new dreamliner. now they're going over to air force one. they will taxi, take off and all of the boeing employees who were here. i want to say there were about 6,000. most of them are still here a. few have left. they've gone back to a different area of the plant. most are still down there, obviously, taking pictures with their phone. there's donald trump as he comes out giving a big thumbs up to the people here. hey, guys, you we heard the speech. we carried it live. it was all about manufacturing and jobs and made in the usa. we didn't hear him mention the exsport/import base, which we probably shouldn't be surprised about. i talked to donald trump at the carrier florida i was at the white house with the airline ceos. >> yeah. >> he doesn't seem to be getting into the nitty-gritty so-to-speak what about the export/import thing? he keeps a big 50,000 picture

and says we will bring more jobs to the u.s. >> to quote a rather famous commercial from twenl 20 years ago, let's not forget he is the president. he is a client. he owns a boeing 757. so we got a president i think that knows the boeing product fairly well. >> absolutely. and he talked about air force one and he talked about whether they do some more military contracts with boeing. look. if you are boeing, compare this with where you were late december when you go into the office and you see a tweet from the president-elect saying, it's outrageous what they're charging for the air force one. we're going to can sell this contract, potentially. i mean, it's night and day in terms of what boeing was experiencing with just about seven or eight weeks ago and what they're experiencing today. >> ultimately, phil, don't move, we want you to stick around as the president goes on. we know we will get taped playback of his tour of the facility. >> that happened earlier today.

in the meantime, beauing isoein supporter of the gop house plan. there are a number of senators who came out, a number of members of congress who came out against it. one from california apple is in his district. he joins us now. cfo of apple saying he is not a big fan of the b.a. t.s we are starting to call it. always uc brkly it's his work with the gop corporate tax plan, he co-wrote a paper with a man that speaks here frequently. rvgs i want to start with you. keep in mind, we are waiting to play a taped playback of the boeing facility. we bought the the architect signature right there next to you. what would you say to him? why are you concerned about the border adjustment tax? >> i don't think even he would support the republican version. the plan would basically be a tax on middle class americans and working families.

they would be paying more for goes, more for food, more for their cell phones, more for clothing. it's basically reversed distribution, you are taking middle class americans to pay for tax cuts for wealthy individuals and corporations. >> professor, what would you say? >> i would say he's welcome in berkeley any time so that i can go through with him why what he just said is not correct. unfortunately, there are a lot of people who are misinformed who are providing information like that. one might call them alternative facts. but, in fact, this is a plan that would encourage companies like boeing and like other companies to locate production facilities in the united states and it would be quite progressive because it would help the wages of american workers. >> do you understand intuitively

why t he says you will taksim ports by 20% and all of the people in the country, buy imports. why wouldn't that make them 20% more expensive? >> that would if there were no adjustment in the exchange rate for other market reactions. markets do react to provisions like this. we have evidence that they've reacted in the past when there have been changes in export or import taxes. and, therefore, with ecan be pretty confident that the ultimate impact of changes in border adjustments will not be rises in the price of imports, but rather changes in the incentives of companies. you know, i can certainly understand why companies, particularly those in the area from which the congressman comes might not be particularly happy about another important impact of this legislation. which could be to make it impossible to report your profits, low tax savings instead of to the united states. that's what a lot of those companies are doing right now. they wouldn't be able to do it under this new system.

>> if i could respond a. couple points the professor knows, martin feld stein and mark grudman wrote a paper that has exactly no effect on trade t. professor knows that. he's distorting their works. the economists are unanimous. the last time we tried a tax is and we saw how that turned out. the reality is that there is an alternative way to get these companies to pay tax and i'm all for it. apple and others paying tax. that's to end the definitely so that they should be paying tax on their foreign earnings. >> that would solve the problem. but to put a 20% import tax where every person will be paying more for their consumer products is wrong. one other point, japan tried this. and we know that the dollar didn't or the currency didn't aappreciate. so i think to have some theory that five years later is going to appreciate and in the meantime, working families get hurt to pay for tax cuts for the

wealthiest individuals is just wrong. >> congressman, i'm not advocateing for a tax or not t. one thing i do want to push back a bit is the idea that the middle class will be ruined if he have fewer cheap goods. most americans will say life was better for the miding class in 1996 than it is today. would you agree with that statement? >> that's true. >> in 1996, we imported just 3.5 million in chinese made goods, now it's 37 become. this whole era of cheap goods is 15 or 20 years old, so how do we square the argument that things were pretty good for the middle class for most of america. now this new trend towards cheap stuff is new. maybe with cheap stuff comes cheap wages. >> i hear you. but what was the problem in the 1990s as you know is they had this check your box provision that allowed companies to avoid paying tax under foreign earnings, they would say these foreign subsidiaries weren't subject to tax. we need to change that.

and we need to level this playing field. >> i agree with that. my only point, sir, was that i think that this concept that higher, slightly higher prices are going to destroy the consumer of the middle class is just wrong because history says it is. >> brenten woods as you know, america led the world in coming up with an international finance system that's a disaster. you know that there is a great chance of border adjustment tax would be held to violate the wto rules. why would we want to blow up the system, risk retaliation, where we built the system? >> that's another argument. professor. >> how much time do i have? >> about a minute. to be quite frank. >> that's okay. but first after all, as the congressman may or may not know. border adjustments exist in virtually every country exhibit the united states through their value hf added taxes. they are not a tariff. they would not be a tarifft u.s. second the aim of border

adjustment is not to clang the balance of trade. he cited a well known paper by marty feld stein and wall krudman. he may wonder if he cites that result why marty feldstein is a major support of this proposal t. reason is the same reason i sport it which is not to encourage a trade surplus, which is not the aim, and not to impose a tariff, which it is not. but it is to stop shifting of profits by multinational companies and to encourage companies to locate production in the united states rather than abroad. putting a then e penalty on them if they earn profits abroughted is a way of making american companies no longer be american companies. we have been fighting corporation aversions for the last few years very unsuccessfully. if the congressman approach is taken, we will have to fight harder against it. >> gentleman, thank you very much for this very civil discussion. also we know you waited because of the president we know time is

incredibly valuable. thank you very much. we'd love to have you both back. >> thank you. meantime the president signing a law aiming that boeing back-up regulations at mining companies, coal miners in particular. we sent contessa brewer to coal country. for more on how this will impact communities, this is not something they are hoping for. this is something that they need. >> reporter: yes, in fact, you see that around this area where, quite frankly, coal miners are feeling like they're on top of a mountain today because the regulation that got lifted here. the street protection rule was the frame to protect groundwater and habitat from the kind of pollution and damage that sometimes happened with mining-related actions. the industry, though, thought of a government ploy to kill coal, thereby killing jobs, this is an area as you say that relies on comb. in fact, the income that coal miners bring into the community with the estimate is that it

could support as many as four up to 11 other jobs. so around the corner from where i am at the riverside restaurant, the owners say in their 21 years, they have started seeing far fewer coal miners coming in and now they're relying more on the retirees to support their business. but as tom along with the house and senate lift these regulations on coal the whole community is hopeful. >> i understand that he's got a tough job and, you know, a lot on his plate right now, but the optimism that we have in this community and in this ohio valley is now that we can get miners, we can get steel workers. we can get industry back to work. >> reporter: they really consider this law a step towards president trump fulfilling his campaign pledge and that was a pledge that persuaded many life long democrats, brian, to vote for him. >> yeah, contessa. we we heard the one sound boit

from the gentleman that you spoke to. you know, you have been there now. is there a sense of optimism? do people believe? i know they want it to change. do they believe it will? because natural gas is a big competitor. >> reporter: yes, yes, for people who work in the coal industry that they say we can compete against natural gas if there are no other imped imts to the competition. if the government is trying to kill coal we're going to lose. but if it's a level playing field, if we have an equal opportunity with natural gas, then we can compete. in fact, the machine you we heard in my story, the harbor master here, he says there is no cheaper way to produce electricity in this company is comb. now he's biassed, he needs more coal. i got to tell you on the other side of this they say they are embracing environmental regulations. they're not against clean water. they said this street protection rule was ill logical, there were

e regulations in place. he showed me in back of me, brian, there is a retention storm runoff. all of this coal you are seeing around me. he says they treat that water. he says, you can go into the retention pond and drink out of it. because they are taking care of their environmental obligations. they want it to be clean for their families and the families of their communities. >> contessa, thanks very much. contessa brewer. reporting from ohio. >> unilever turns down a $143 billion offer from kraft. if you look at the stock, they're up 15% unilever. something is going on. let's take a look at who might be the next to merge. plus the one company that could have a major impact on a kraft-unilever marriage, that is straight ahead. hey nicole. hey! i just wanted to thank your support team for walking me through my first options trade. we only do it for everyone gary.

well, i feel pretty smart. well, we're all about educating people on options strategies. well, don't worry, i won't let this accomplishment go to my head. i'm still the same old gary. wait, you forgot your french dictionary. oh, mucho gracias. get help on options trading with thinkorswim, only at td ameritrade. whyour boss?ork for? yourself? your family? our financial advisors are free to realize a plan to fit your family's unique needs. we'll listen. we'll talk. we'll plan. baird.

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>> welcome back. aetna shares have been halted and the news is out the company is doubling its dividends from 25 cents a share to 50 cents a share and the company says in addition to $1.1 billion in buybacks it has, it will authorize up to another $4 billion for shares of purchases. earlier this week mutually agreed to terminate its merger with cisco and tyler, it has a

lot of catch. it is returning them to shareholders. back to you. >> thank you very much. shares of unilever and kraft rallying on merging talks, unilever says kraft's $143 billion is just not enough. sarah. >> reporter: hey, timer, investors are bullish on this idea, kraft-heinz, which itself is born out of an acquisition put together by a brazil giant pe and warren buffet in 2015, tried to combine with the megabritish dutch company unilever. unilever owns dove soap, act deodorant and mayo and ben and jerry's, it did reject this initial proposal. kraft says it's looking forward to reaching an agreement on the tomorrows of a transaction. what's interesting here, everyone expected-heinz to partner with 3g to pursue a deal. unilever is food and household

products. a little half is in household products t. common thread, lack of growth. be ig food and household products struggled to change consumer taste. we talk about it all the time, healthier eating, clang in buying habits. consumers are getting basics online and on mobile phones. and the slow down in emerging markets, which accounts for nearly 60% of eunly lever sales. come in boy us, cut costs, big league, boost profits and that often includes job cuts. so what happens next in this case? some analysts say the price will go up. this is just a starting offer, in fact, it's pretty low when it comes to a prem judgment, being at consumer staples, kraft has until march 17 tomkat announce a firm intention as to make a specific offer or has to walk away under british law. they are quiet about the strategy, some speculate maybe it wants the food business here. it also keep in mind has to face regulators in the u.s., the uk,

and the netherlands. no words from any government at this point. >> sarah, when chavt-heinz happened, are you right, what 3g the famous for is cutting costs. 10% of the work force gone, if they apply to unilever, there is a lot of facilities in europe, right? it's much harder to fire people there. is there cost strategy going to work as well with this kind of acquisition? >> reporter: well, that's surgeon lip one of the questions and already you see british lawmakers come out bashing the deal. they're saying brexit is waiting for a fire sale, because of course there is a currency flight here as well with the strong dollar buying british assets on the cheap. they're going to talk it down. yes, a big part of this strategy, what 3g does is cutting costs. how is that going to go down in a politically charged environment? that remains to be seen. it's interesting that some of the other food companies, i should mention, are selling off on the food today. because they were looked at, as

potential tarts of the next big deal the household products, guy, ra rallying, they are being completely rerated, it's more fun to have international products hand the international exposure. we will see. it's definitely not a done deal at this point. initial talks are ongoing. certainly, investors are excited about the idea. >> thank you already have much. sarah eisen. the dow taking a little of a breather today. just a little bit. despite all the questions raised over mr. trump's policies the stockmarket is continuing to hit new highs, seemingly day of day. should it keep going or should we prepare for a pullback? gentleman, welcome to both of you. ron, you are concerned that the market is under valuing only soft political risks that things may not get done as planned, that they may get done less quickly and other risks of instability? >> yes, yesterday's news conference notwithstanding where

the president continue at simultaneous war with the intelligence community and the press. you know, when you start reading these headlines about the ongoing campaign aids and resignation of general flynn. to me this looks like in some ways a corporate scandal where the first headline is not the worse and the last. i think the market doesn't appreciate the extent to which this could be a real political crisis. >> why, mark, is the market seemingly not paying attention to the things that ron is identifying here? the market was higher yesterday. >> sure. >> they continue. when you see the thing about general flynn, the market doesn't flinch. however the week before you see gary cohn from goldman sachs, in charge of the market rallied. they're concentrating on the inflation trade. we had a high probability rates were going to be up. because both sides of congress are in republican hands, regardless of mr. trump, i think corporate tax rates are coming down. that's really what the markets are concentrating right now. >> it's an important point, mark, listen the markets rallied

the last couple months, could be about the president and gop. i don't know. i know there is buyers out there i think your inflation is very important. because inflation is heating umm, which makes bonds stink, basically, and maybe that's just bringing people to the stockmarket. >> if you look at the etf flows, you see massive reflections on the side. >> look at ten-year bond yield chart, it's been going south for ten years. this trade isn't going to be over in a couple of months. you have a lot of money flow come back next whichties. from an equity income standpoint, those staples, we were talking about kraft, all those, those stocks are valued pretty richly. they're not concentrateing on the dividends. the dividends don't look as attractive anymore t. switch next whichty income investing has to be to growth and growth in income and growth in dividends. that's why i think a major shift is coming in the way you invest next whichties right now. >> ron, draw a line for me. when you are concerned about

these headlines, general flynn resigning to earnings in the s&p 500, which helps thrive valuations. what is it? i understand if corporate tax reform fales, that's bad. >> that means the lower tax rate is gone. but the rest of this, a distraction. but -- >> well, for now a distraction. watergate wasn't a distraction when it started and the same times of comments we we heard about watergate we are hearing about the investigations of the presidents and his associate's ties to russia. it started as a trickle. we had the non-denials, the various leaks. i'm talking if this were to expand into a full blown political crisis. i think it's possible. then you have a disruption of the president's agenda, until someone else were to implement it. >> i don't remember the answer to this question, but i bet you do, so i will put you on the spot t. stockmarket and the monica lewinsky scandal? >> that was not a constitutional crisis. to the extent the president lied under oath about an extra marital affair.

it did have an impact on the stockmarket. if you go back to that period, investors, hedge funds. >> the market overall was higher. >> i'm talking about something bigger than that, which is something if you read -- >> president clinton was impeached. >> '98 and the stockmarket soared. >> if you are talking about the involvement of a foreign government in the outcome of a domestic election. >> that would be worse. >> yes. >> a bigger deal, watergate, which was a true constitutional crisis. >> if you are bearish. >> i completely agree. that's the most amazing part of this market is the lack of risk being priced into it. but if you have that opinion, i would say the vix is at an all time low, applied "options action," applied, eight, nine, depending on where you go, incredibly cheap risk protection. now would be a good time to buy puts and individual names and "options action" and the s&p and

500 market. >> that's the point you might see on cnbc.com, rick is under valued. >> thank you very much. mark, i appreciate you being with us. >> thank you. unilever rejecting a $143 billion offer from kraft-heinz, coming up, we will take a look at one of craft's best owners. 3g capital. which has a reputation as a ruthless cost cutter.

this just in. 50 million customers' data was not compromised this morning in a security breach that didn't happen. wall street, not rattled... at all! no. sir, sir. what went right? everything. we have a brief statement on this non-breach. we're happy to report there's nothing to report. my dad's company wasn't hacked today. cool.

>> welcome back do "power lunch" a digital blow, a satellite image company are spyinging on heavy volume. the tell could value digital global about 2 to $3 billion. watch those shares as well. in the last few moments, guys, aetna shares have started trading up by just about $2 from where they closed t. current trade right now $12005 pine 86. remember they doubled their quarterly dividend to 50 cents a share, also authorized, rather, an additional $4 billion of the common stock to be purchased. this is in addition to the $1.1 billion as well. so aetna shares off their lows.

combining it with the negative sentiment. >> domenic, thank you. so sue herrera, we go, for cnbc news updates. >> here is a news update at this hour, by a 52 to 46 vote. they have confirmed scott pruett as the head of the environmental protection agency. two democratic senators, voted for prosecute, while gop senator susan collins voted against it. malaysian police reenacting the alleged killing of north korean leader kim jong-un's half brother. he died at the kuala lumpur airport two days ago. north korea saying it will reject the postmortem conducted and demanded the body be released immediately. friendsic officers and security services shutting down a shrine in southwestern pakistan as they investigate thursday's suicide bombing, which killed at least 75 people. isis claiming responsibility for that attack, saying it had

targeted a shiite gathering. and pope francis telling a crowd of university students in rome the only way to overcome the fear of migrants is through intgrachlths he said it's important migrants learn the language, get a job and learn the language of their new country. >> unilever rejected a $143 takeover bid from-behind, one of craft's largest owners is the board of tradian owner 3g, which "fortune" magazine called it ready to swallow the global food industry whole. jeff, good to have you here. >> it's great to be with you. >> we see unilever fending off this takeover from heinz-kravmt tell us about the kraft-heinz takeover. what happened to employment levels and cost cutting there? >> well, this is what they do all the time. they have a playbook.

it's a very successful one. so what happened is what you would expect. a lot of employees at the top level were fired immediately and over a slightly longer period, employment levels in general came down. they cut costs and they're very good at it. >> so,ever, why would kraft-heinz want a lot of the brands that unilever have nothing to do with their core business, mainly food? i love q-tips, they're wonderful. i love vaseline and dove and all that stuff. why do they want it? >> so the speculation is maybe they done want it. maybe all they want is the food. because few look at 3g capital over its long existence. it's been beer, burger king. >> right. >> tim horton, kraft, heinz, they love food and beverage and when i can asked them, you seem

like food and beverage, their response was no comment. >> i love that why gurt. that's good stuff. >> so that the thing that makes sense is they probably don't want dove soap and all the personal care products. >> it's an entire sauce. >> the question, first off, a lot of people probably don't realize there or don't care, unilever is our corporate neighbor, they're next to us in englewood clifts, new jersey, they're building a whole new campus. they're in the mild of spending money. i wonder what the 3g guys will do. i don't want an emtry building next to us here. presumably kraft-heinz has to borrow all of it or most of it? there has been talk of killing the interest corporate tax deals. you think it's one of those things they're trying to shove something in under the gun so to speak? >> it certainly could be, although, frankly, i don't think that would be the main motivation. it certainly could be.

it's so uncertain at this point. if we do have the big tax overhaul that paul ryan and the rest of the house republicans are talking about, you would have so many pieces, it could end the deductibility of interest. the change, it would lower the tax rate also. it was hard to figure out what the bottom line result would be for any company. >> in your article, you focused on this oscar mayer plant in madison, wisconsin, it was very interesting, kraft had long thought it should go over to heinz, it should long be gone. but there was sentimental attachment to the plant. hold on, wait, we have to go to don chu with breaking news. >> there is interesting, both stocks are moving, t-mobile and sprint shares, according to a reuters story, they're saying soft bank is preparing to join the unit to discuss a possible merger, according to sources familiar. also saying soft bank is willing to give up sprint's q t-mobile

and retain a minority stake of the combined company. soft bank and dai-iceutsche are in talks. also they are expected to begin talks after the "options action" end in april. so that's why those shares are moving higher. that's a still pretty big development, perhaps if it comes to fruition. >> these two companies have a history? >> they don't like each other. they have not been exactly kind. this is the number three and four. so they have, but remember there have been regulatory hurdles in the past. >> regulatory hurdles, do they try to get together? >> it was determined whether you wanted four "options action" for consumers. >> so we have a new administration. now i remember the whole thing. they thought four players, and the architect for this was, right now you got two really strong players, two very, very

weak players, if you let these two move, you will have three strong players t. last administration said, no, they didn't want to believe that. maybe the change in presidency is a part of what's going on here. >> the regulatory environment, you remember the same thing i do, the idea that back a number of months, perhaps years ago, it was determined they wanted to have more players to give consumers more "options action". that's the reason why they didn't go anywhere. >> the son of the richest men in japan controls soft bank which which the way controls sprint. people are confused by this whole thing, sprint is some way a japanese-controlled company. he made a $32 billion offer for t-mobile back in 2014. i'll give a shoutout by the way to pc magazine, because back in december, they said this trump son meeting which basically means the sprint-t-mobile thing would be a done deem. whoever the reporter was, if we can get them on the phone. to michelle's point a long sis i

history here, sun made it clear he wants t-mobile. i think the most interesting aspect, if they try to do this, could this give us a window on the donald trump administration, what their point of view may be on -- >> a merger. >> anti-trust and big mergers? >> i would say, guy, one of the first international business leaders spotted at trump tower with donald trump was matsioshi son and he will bring jobs here. >> that will play interestingly if this deal yets gets traction. >> david ises with with eunly lever. now he will be on this. okay. thank you. all right. thanks a lot. all right. what a week it has been for biotech. the etf attracts the move, the ibb is up over 3% on ways i pa is this week for the fourth straight week of gains with the overall market. but will the biotech run keep

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>> welcome back. president trump just a short while ago touring boeing facility in north charleston, south carolina where a 787-10

dreamliner is made. the 787 plane prominently displayed during the news conference. there you see him going up moments ago. he checked out the cockpit. there he is. right there. as if he's piloting the plane. the captain speaking. >> imagine if you ever we heard him when you are flying. the president spoke about that resonated with the crowd. we we heard them cheer very specifically, hire american, buy american. he mentioned that the military is looking at a large order of f-18 jets. >> that would be news. all right. to the bond market. >> well, michelle, the best way to understand this week is to first consider dow as it sits down 50 is still up 300 on the week. look at the weekly chart, virtually unchanged. not only on the week, on the year. look at tens minus twos, a lot of talk last week with the fed. it looked like it steeped

mid-week. back down to 122. one week on the dollar index. you know the dollar index basically unchanged. 30 basically unchanged. i told you on tens, twoings changed on 119. listen the dynamic seems to be about growth and the future of taxes, the market seems awfully comfortable with everything right about now. brian, back to you. >> rick, thank you. looking at how biotechs have done lately. they were up 7% in four weeks. are more gains ahead or should you literally sell everything? you are watching "power lunch." ♪ why do so many businesses rely on the u.s. postal service?

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companies across the state are york sgrowing the economy,otion. with the help of the lowest taxes in decades,

a talented workforce, and world-class innovations. like in plattsburgh, where the most advanced transportation is already en route. and in corning, where the future is materializing. let us help grow your company's tomorrow - today at esd.ny.gov the trading nation team today taking on biotech max wolf, they've had a heck of a run. do you see more gains ahead or is it literally sell everything and run off? >> it's probably on a short-term

basis ahead of its name. i like the name. there is the future of health care, who is going to pay for what? markets don't seem to air about that now. longer term, we like the trend the demographics of aging, the fwloebl market. it looks like this may be an area relatively less likely to be effective or slammed into by various twitter policies or politician-led discussions about drug prices. >> ari wolfe, from the ibb the biggest of the tech prices, how does it look technically? >> technically it looks great, we recommend buying the industry. one we like better is the s&p spyder, it's equally weighted. i think you want to own the small tore mid-cap stocks showing more relative strength here. if we chart xbi we see the etf is breaking above this six-month consolidation it's been in.

we think the breakup continues t. reason why it's all occurring above a rising 2 00 day moving average. for upside, we think xpi gets back to therer 80. more or less where it was breaking down to peak levels at 2015. a very strong set uphere, brian. >> a strong setup. thank you very much. for more trading nation go to our website. all right. get ready for retail bonanza, wal-mart, macy's, home depot, all unveiling earnings next week. >> that is only on tuesday. everything you need to know about retail earnings next on "power lunch." >> now the latest on trading nation.cnbc.com and a word from our sponsor. >> overbought and oversold oscillators are generally used differently whether the stock is range bound or trending.

looking to buy a market when the oscillator falls into oversold territory and moves back above it. looking to sell when the oscillator rises into overbought territory and then drops below it.

welcome back. new details on the border adjustment tax. john harwood, tell me everything. >> michelle, the opposition among senate republicans to the border adjustment tax, which as you know is critical to the house plan for tax reform, is reaching critical mass. take a look at the senators. david purdue of georgia last week said this would slow economic growth and retirement income. you have tom cotton on the senate floor. the biggest retailer in the world. they're on life support. he's concerned about the effect on oil prices among other things. now the question is if you lose all three of those republican members, you're below 50, which is what they need to pass this even under the expedited procedures to take democrats out of the equation. i just got off the phone with kevin brady's fs.

kevin brady, a lot of ups and downs in the tax reform process. besides, the people that want to kill border adjustment, how are they going to raise the revenue needed to get the corporate rate down? one option, of course, is expanding the dpef cisit -- deficit not making it revenue neutral. when did they decide to willingly add trillions of dollars or billions and billions of dollars to the federal deficit? one person who has the potential for breaking this log jam is president donald trump. he's expressed mixed signals so far. if he weighs in strongly, that could change the equation. >> that is what we all keep waiting for. john harwood, thank you so much. steve bannon likes it. meantime, most of the big retail ceos met with the president earlier this week. they are largely against any border adjustment tax. by the way, retail report --

earnings next week. joining us now is brian gildenberg as well as oliver chen. oliver, i'll start with you. listen, if anybody is looking for some insight into the recent discussion over tax, they're not going to get it next week, right? this is more -- the earnings we're going to see next week are more of a referendum on the consumer and whether or not housing and car sales are stealing business from everybody else, are they not? >> that will be a piece of it. we'll go through fourth quarter earnings, but companies will also guide for next year. guidance will be an important factor. there are several revolutions happening in retail. the border adjustment tax issue as we've done our research here, it could affect earnings per share by 50% or more. so it's a hot topic. these calls are forms for analysts who really pursue what we need to know in terms of modeling earnings. it's a big problem. it's a big problem because we do not think -- >> did you say 50% or more? >> 50% or more.

>> yes. >> does it work like that? >> i think we haven't done it in as much detail, but i think we'd suggest you add the impact on retailers, specifically those making significant amount of money would be very high. 50% doesn't sound unreasonable at all. >> have you done the calculations even when you adjust for a much stronger currency so what they buy is cheaper and much lower tax rate? >> yeah, you get a couple of things there. so, yes, you would have a stronger currency, at least theoretically to start with, but at the same time you're also going to have a shift in what people buy, right? >> and how much they buy. >> simply have less. the dollar will go less far, right? >> if prices trickle up a bit, that will still impact the amount of stuff they can purchase. >> and the nature of it. a good working model is the u.k. with the valuation. what's in effect has happened is it's raised the price of important stuff. it's changed the mix of what people are eating. >> kurges si got weaker. >> yes. >> go farther. >> buy more stuff.

>> except with the tax you would have a concurrent price change between what the price was of imported stuff versus the price of things that weren't impacted by the tax. the key issue for us is when you look at walmart in addition to being the largest retailer, they're the largest employer in 23 of the 50 states in the country most of which voted r republican. i think that's going to be an issue if they're not thrilled politically to get it to work. >> oliver, who does it hit hardest? >> as we look at it, price sensitivity does matter particularly at the low to middle income. as you analyze the elasticity, any small raise in price would kill volume. you have to consider how these companies acquire goods and its u.s. dollar denominated. it will be a little while in terms of working through the potential price increases but it's going to be very painful. i don't think the u.s. consumer is really willing to take these price increases. we have the rise of amazon, we have a real changing shopping pattern and already retailers

are facing problems in that people just don't physically want to go to stores. so walmart has been investing billions in lowering prices and this has been the trend. so for this to happen would require significant inflection, otherwise earnings per share could be completely wiped out. >> gentleman, we have to leave it there on that cheery note. brian, we appreciate it. oliver, thank you as well. check please. this is my retirement. retiring retired tires. and i never get tired of it. are you entirely prepared to retire? plan your never tiring retiring retired tires retirement with e*trade. i'm in vests and as a vested investor in vests i invest with e*trade, where investors can investigate and invest in vests... or not in vests. sign up at etrade.com and get up to six hundred dollars.

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check please. >> more corporate deal making. maybe sprint will try to go after t-mobile. who knows. that's my check please. very boring on a friday. >> aetna earlier this week pulling a merger, but today pulling a good one for shareholders doubling the quarterly dividend. aetna boosting it to 50 cents per share. >> didn't seem to make it move off the bottom. president donald trump speaking today saying the military looking potentially at a large order of f-18 jets. there's been all of this controversy about the f-35 made by lockheed martin. f-18 hornet is an earlier version of our fighter jet. >> he has been the negotiator chief on the fighter jets, f-35, air force one project which he still wants further. he's happy the price has come down but he still wants it

lower. >> today was the president at his best. >> it really was. >> business environment smiling, upbeat, cheering the crowd on. >> no media. >> no media. that was crucial. >> friendly crowd. >> thanks for watching "power lunch." >> "closing bell" starts right now. have a great day. hi, and welcome to a very busy friday here on the "closing bell." i'm kelly evans at the new york stock exchange. >> and i'm mike santoli in for bill griffeth. a bit of a pull back. dow and s&p with mild losses. the dow component united health is dragging on that index after accusations it defrauded medicare. >> down 4%. president trump wrapping up a visit to boeing taughting job creation. we will bring you highlights of his speech there. >> plus, a look at how trump's win has hurt gun sales and could put a