cap in europe is reporting next week. that needs to corroborate our views. >> and just this wee bit of a french election. >> a lot going on next week. don't go anywhere. josh, thank you very much. thanks for watching. "power lunch" starts right now. >> see you in five. i'm melissa lee. president trump getting ready to take aim at taxes and financial regulation. what it means for banks and business. france heads to the polls this weekend. investors are watching very closely. we lay out the various scenarios for the markets. new terrorist attacks, of course. our michelle caruso-cabrera is live on the ground in paris. the retail wreck, macy's is down. the new ceo joins us exclusively to lay out his growth plan. "power lunch" starts right now. and welcome to "power

lunch." i'm david faber. stocks are more or less steady. a swing between gains and losses. we are down on all the major averages right now. industrials and financials remain the best performing sector due to the big drop in oil prices that's been dragging down the energy sector. crude is down almost 3%. check out some of the other moves we have. ge after what was relatively decent earnings report although cash flow seemed to be missing from it down 2%. that's near the session lows. the company did beat on the top and bottom line. revenue slipped 1% from a year ago. lower sales in oil and gas and their lighting business. stanley black & decker is up 3% after earnings did exceed estimates. the company also raised its 2017 outlook. here is what else is happening at this hour. volkswagen has been orpded to pay a $2.8 billion criminal penalty for cheating on its diesel emission tests. sales of existing homes rose almost 4.5% in march, the

fastest pace in a decade. and new data out showing greece is breezing past goals set by lenders. let's get now to michelle who joins us are from paris. hey there, david, nice to have you on the show. we're covering the french elections which are extremely consequential because one of the leading candidates wants to abandon the euro and return prance to its own currency. the big question is last night's attack, terrorist attack. how is that going to influence sunday's outcome? in the last hour we've heard from the french prosecutor more details about the attacker from last night. he says that the attacker was found guilty of crimes four times since 2001 and served time in prison. the attacker was not listed on an intelligence watch list which here in france is known as file s and at no point during his prison term, said the prosecutor, did he ever-present signs of radicalization. however, when he was shot dead

last night right here on the champs-elysees, a piece of paper was found defending the cause of isis. let me show you the latest polls for the four leading candidates. we're waiting for a fresh round of. the numbers are before last night's attack. in the lead emmanuel macron. the woman we're all watching marine le pen, 22.5%. fillon would be radical for france. 19.5%. and the communist on the right jean-luc melenchon. we'll be here monday for those results. today we're going to explain to you how we got here, in part, by showing you what france's rust belt looks like. similar to what we talk about in the united states and the trump effect as well. disenfranchised voters who feel left out by globalization. that will be very telling and will look sem lar to a lot of

people compared to what we saw in the united states. we'll interview a guy who worked for president obama and now he's working for macron, see if he can help the centrist lead the country. the markets would like the centrist more than marine le pen. >> we'll see you shortly, michelle. president trump taking aim at taxes. ylan mui with the very latest. >> reporter: the executive order directs the treasury department to review all regulations issued last year to see which ones might be overly complicated or overreaching. steven mnuchin pointed to one significant issue they're looking at, the inversions and earnings stripping rules that president obama put out last year. remember, those are the rules that scuttled the deal between pfizer and allergan. a memo that looks at the government's ability to unwind large and complex financial institutions also known as the orderly liquidation authority.

some conservative republicans and even some democrats see this ability as just another chance to bail out big banks but form earp fed chairman ben bernanke has said this power is critical to the government's ability to respond to another financial crisis, and he said that repealing that authority could put both the economy and the financial system at risk. the final order will issue a review. the financial stability oversight council and its ability to designate firms as, quote, systematically important. and if those firms receive that designation they are then subject to additional supervision. this is an issue that insurance giant met life has been challenging in the past. the president will be heading to the treasury department in just a little bit in order to sign these orders. it's his first visit over to that agency. i'll be heading there as well and will keep you posted, guys. >> okay, thank you, ylan mui.

let's head over to dominic chu. >> david, the last time we saw stocks, hedge fund manager said this chart behind me should be terrifying to central bankers around the world. cnbc has learned that jones told attendees of a closed door conference with goldman sachs asset management he's concerned where the markets are. the chart is a variation of what we're showing. it's the value of the stock market overall relative to economic activity. right now you can see the highest levels we've seen since the dot-com era. low global rates have caused sharp rises in valuations but he did stop short of saying that this market was ready to be shorted. still, though, this stock market value comparison is sometimes referred to as the buffett indicator because warren buffett has referred to this particular

metric in the past. it's not the only thing in terms of caution flags being waved. concerns about the president's tax plan, first of all, the reform agenda front and center there also the fed and the potential for socioeconomic issues in france, germany, italy with elections going on there. keep an eye on that buffett indicator for sure. paul tudor jones is. go to cnbc.com. i will tweet out the links to those stories as well. an interesting look on a relative basis at the valuations in the market. back over to you. >> we look forward to seeing that when you tweet it out. thanks, dom. just how terrified should investors be? chief investment officer and shannon is head of asset allocation and portfolio strategy with boston private wealth. let me start with you, you hurd dom report, concerns from paul

tudor jones, and more concerns about perhaps a softening economy looking at a ten-year yield of 2.22. oil today. are you concerned? >> investors have a right to be concerned. it's not just because of the metric tudor jones cited but agreement among factors. stocks are expensive across every factor whether it's price to sales, price to earnings, in this case market cap, relative to the economy. other markets are also showing a little caution. the yield curve is getting flatter. typically whereas equities are priced for complacency and usually when there's a disagreement between the bond markets and stocks are saying, typically the bond investors are right and they seem to be showing concern about whether it's trump's reform agenda or whether it's the french election. good reason to be wary of that. or just geopolitical risk in

places like north korea. >> shannon, do you agree? there are some who are saying and burns is implying to a certain extent the trump trade, so to speak, that benefited the market through much of the early months of the year is over. >> i would say one of the things we've looked at is the underlying macroeconomic data that's really supported this trade. i think it's inaccurate or inappropriate to look at one particular chart or piece of information as the indication of the overall strength of the market. we certainly see valuations as being stretched. the stock market is anticipating positive moves here whether it's tax reform or a potential improvement in the european economy the back half of the year. there could be things that are priced in. we've been saying there could potentially be a small correction should we get another delay on tax reform. i think looking at one particular table or chart is probably less important than looking at the mosaic of information that's available in the market right now. >> you like financials, you like

jpmorgan and morgan stanley in particular. we had largely good earnings from the financials in particular. the price action following those good earnings reports wasn't very good at all and, in fact, j jpmorgan is still trading below the level when it reported earnings. are you concerned about this price action? do you think it's the sector telling us that the headwind of a flattening yield curve could be greater than what we're seeing in terms of economic growth for the remaineder of the year? >> in this case if you look at jpmorgan it probably is trading more on the tightening of the yield curve, interest rates pulling back, but rather than necessarily trading on individual company fund aamenta but morgan stanley actually had some great price action given it demonstrated they're taking share from goldman sachs, and just in general. with morgan stanley trading at 12 times earnings, it's a steep discount to the other banks and

brokers, their dividend yield is twice that of goldman, returning that capital to shareholders. and it's a transformation story. they've become more of a wealth manager. i think in a lot of these cases the place for investors to focus on is looking for a lot of these company specific stories that might be able to overwhelm what the broader market actions are going to be. >> all right, we appreciate it. have a great weekend. >> thank you. oil prices under pressure. to jackie deangelis for news. good afternoon to you. baker hughes out with its weekly rig count numbers. five oil rigs were added for the week taking us up to 688. the 14th straight week that we've seen rigs coming online, up 345 from a year ago, that's adding to the pressure here you're seeing in oil. 49.33 right now, session low 49.20. oil is on track for its worst weekly loss in about a month, 7% decline we're looking at right now. and this is part of the problem taking us under 50 here. while the opec producers have

cut, you have the u.s. producers ramping up. back to you. >> jackie deangelis, thank you. still ahead, macy's new man in charge makes his it tv debut here on "power lunch." how he plans to steer macy's through the retail rut. an exclusive interview with jeff jeanette. back to michelle and the battle over the presidency in france. michelle? hey there, melissa, there are so many similarities in france to what happened with prex it and president trump's election in the united states. deep unhappiness among people who used to work in the industrial sector but lost their job. coming up, to france's rust b t belt. don't move. live from paris on the other side of this break. kevin kevin kevin kevin kevin kevin kevin kevin kevin kevin trusted advice for life.

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welcome back to "power lunch." i'm michelle caruso-cabrera. this weekend's presidential elections. one of the leading candidates, marine le pen, wants france to abandon the euro. it would be extremely consequential for international markets. why is she getting as much support as she has, more than 22% of the voters? in part because france, like the united states, has a rust belt, has a large section of the population that used to work in the industrial sector but doesn't anymore. we went to one of the towns affect ed by globalization to se how those people may vote. 100 miles north of paris is a historic town center,

storefronts are shuttered. and on the outskirts the signs of an economic downturn even more clear. this is national front territory, the party of presidential candidate marine le pen, where the median household income is less than $18,000. people voted solidly for le pen in the first round of the 2012 elections giving her a victory of 35% over sarkozy and hollande. >> i think marine le pen will bring back employment. i think a lot of french people just want to have the feeling they are a priority in politics. that isn't the case anymore. >> some in town believe what le pen is selling and the town is buying is her celebrity like status and that she won't be

able to deliver on her promises. >> it's like make america great again. >> she's not the only one. marine le pen isn't the only one trying to get these disenfranchised voters in france. there's a communist running, jean-luc melenchon, also one of the leading contenders, a top four candidate. he could be very negative in terms of the viewpoint of the markets. let's talk more about the possibilities of what's going to happen this weekend. a political risk consult aant. good to have you here. last night's terrorist attack, the consensus that helps marine le pen, do you agree with that? >> so when you look at the last tax, we've had quite a few of those, it hasn't benefited marine le pen. what traditionally happens is that voters feel like they need to go towards a sense of safety which is more provided by

traditional candidates francois fillon, actually. this time it target ed policeme and the police in france, the security forces in france, are marine le pen voters. it's really important for them. >> because we are cnbc and we're a business news network, we focus so much on marine le pen's position on the euro. but here in france, it's more the focus on her positions on immigration, re-creating strong french borders and getting rid of open borders, her very critical position on islam and radical islam. so that's why i ask if it would help her. but security is the bigger issue in this election, isn't it, rather than the euro or am i wrong about that? >> it's difficult. for the french there are several issues. unemployment is really high and has been really high for the past few years, more than 10%.

current president francois hollande couldn't do anything about it. the french hope somebody from outside the political system can fix that type of a problem. on top of that we've had several terrorist attacks. the french feel like there has been no response to that and the solution might be to just close the borders and deal with those issues a little bit better from marine le pen's perspective. so she has been able to capitalize on france's situation. what she has done is to have a much more moderate approach to what she is saying, not more openly racist, openly -- >> okay. trying to bring more moderates. >> exactly. and that has been successful. >> you mentioned francois fillon. he's last out of the four. however, to me he appears to be the most radical candidate because he endorses the views of margaret thatcher. i think of france as a leftist place, and he's talking about a

very right-wing position. does he have a chance? >> what's interesting, first of all, he has a chance because he's from the only traditional party who is actually now able to make it to the second round, and that's unprecedented. and, second of all, he caught part of the french population that has now the feeling that over the past few years nothing has happened because we need more reforms in france. and so he's trying to bring that to politics and say we he can't do anything else. we need to do these radical reforms and part of the electorate believes in that as well. >> thank you for joining us. he would be a market favorite if he won. great to have you on. she will rejoin us on monday as well. once we have the results from the first round of the election to bring us more analysis. guys, back to you. >> all right, michelle, thank you very much. well, still ahead, you remember the recent bomb attack on the german soccer team? the team lucky to escape disaster. an arrest has been made but, get this, wait until you hear the

motive for planting the bomb. i assure you it is not what you think.

watching the markets very closely because in just the past 20 minutes or so, actually ten minutes or so, the s&p lost about four points and the dow about 50. you might say that's not much but it happened in a matter of minutes. let's take a look at the biggest lo losers. financials are sitting at session lows and we have some

notable losers here. bank of america down more than 2% now. these are all the biggest losers in the financial sector. this is a group to keep a watch on because these stocks are sitting at session lows right now. brian? german police have made an arrest in the bomb attack on germany's top soccer team. one player and one policeman injured. the suspect is a 28-year-old dual german russian citizen. the motive initially thought to be terrorism but it was not. it was greed. on the day of the bombing the suspect bought 15,000 put options on shares of the team publicly trading betting they would fall after the bombing, guys, and hoping to make millions. by all accounts the bus stopped a few seconds before it moved on and if it hadn't, just randomly, they think that many of the team could have been killed. it was a financial motive to short the soccer team stock. >> that's terrible. >> it's terrifying. it is terrorism in a way, a

different way, but it certainly is. >> perhaps another reason teams shouldn't be public. let's get to eamon javers with breaking news from the white house. >> reporter: i just came out after session here on the white house complex with a senior administration official who said a couple of important things to bring to your attention. one is the senior administration official says the senate budget committee staff is working now on a draft version of the language surrounding the potential health care deal that this administration is pushing very hard here in washington right now. they say they expect to have that as early as this afternoon, the legislation reported out from the budget committee staff and the senate or by tomorrow. the reason that's important is that would trigger legislative clocks that would make it possible to do something on health care next week. so if they get that legislation out this afternoon, that would be an indication to observers watching this process that they are still on track for at least the possibility of a health care deal next week let alone whether

they get the votes or not, just the basic legislating is the key there and the whole purpose of going through the senate budget committee as opposed to the house here is to wash this through what they call the bird rule that this checks all the boxes in terms of the budget reconciliation, all complicated stuff but in washington you have to do that first and then set up a deal. the white house is saying this administration official also saying that in terms of the government shutdown potential for next week the next four days will show us a lot about what the next four years are going to look like. the officials saying that if washington is working the way it's supposed to work you should be able to get a deal here between democrats and republicans negotiating, haggling back and forth over a government shutdown bill. if it's not that would give you an indication where the next four years are going to go. so a lot of interesting detail here from the administration but, importantly, they are pushing forward on health care legislation. they ex inspect to have that out

by this afternoon or tomorrow, guys. >> okay, thank you, eamon. still ahead, making his tv debut. new macy ceo jeff gennette joins us, live on "power lunch." how he expects to get macy's through very difficult times in retail. ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and. ♪ it's not just a car, it's your daily treat. ♪ go ahead, spoil yourself. the es and es hybrid. experience amazing.

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i'm contessa brewer. your cnbc news update this hour. police are raiding the a home in france today, the islamic militant accused of killing a paris policeman and injuring two others. yesterday he was shot dead by authorities. they're trying to determine whether he had accomplices. a deadly bus crash involving school kids under investigation in south africa. 17 students between 5 years and 10 years old were killed. others pulled from the wreckage. they're expected to survive. this happened after their minibus collided with a truck. an nhl linesman filing a $10 stoyanovich to $10.25 million lawsuit against a

player. he said he suffered head, neck and other injuries when he was cross checked last year. he was suspended for ten games in connection with that incident. drama erupting at starbucks over its new unicorn frappuccino. oh, no. it is so popular and takes all this time to make, like mocha frappuccinos don't take that much time. like unicorns everywhere it will disappear into the imagination because it's only available until sunday. we go back to it being a figment of our imagination. that's the cnbc update. >> it looks gross, contessa. does it take that much extra time to stick the food coloring? >> barista will get cross checked by a hipster. >> good one. >> contessa, thank you. we are off the session lows. the dow down about 40 points.

nasdaq down by 0.2 of a point. s&p down by 8.5 points. retail stocks, women's clothing retailer bebe announcing it will close its brick and mortar stores. they are in the midst of trying to reorganize itself, set a plan to close about 12% of its locations. amazon meantime announcing it will create 2,500 full-time jobs in new jersey at three new fu fulfillment centers part of amazon's plan to create 100,000 jobs over 18 months which was announced back in january. not even two years ago macy's was a nearly $70 stock. today it's below $30 and sales are sliding, which makes the job of your next guest all the more difficult. jeff gennette is the new ceo of macy's and is with our courtney reagan for his first ever tv interview. >> reporter: hi there. thank you very much, brian. i am here in beautiful tucson, arizona, with jeff gennette, the ceo of macy's, a month into the

job, two days shy. thanks for having us here. >> thanks for having me, courtney. >> absolutely. we're happy you chose us as ceo. i guess just to get started, you gave some interesting facts a moment ago. you said that 10% of your macy's customers are responsible for 50% of the sales. you've said that macy's has latent goodwill but clearly you have to reignite that. what's your plan to do so? >> so the first thing we'll do is we have to get our core business right. we have to keep our digital and our mobile business humming because it's been going at a double digit clip. and then we have to set the foundation for growth for the future in places we can play. the first is what we'll be doing that are consumer facing. we have three points of our strategy that are consumer facing. that is brand, product, experience. starting with the brand, really re-engineering reaching the customer in new ways.

with product focused on exclusivity. brands we create, house name brands that are exclusive at macy's. and the third piece of that that is consumer facing is experience. and this eidea about this nexus between technology and the human touch, when that is combined we believe a unique proposition for macy's to win with. so that is fueled by our fourth point, cost, to help fund all of that. so we've done a good job with that. we know how to get cost out as a company. the past two years we've gotten $1 billion of cost out of which we've taken a chunk and reinvested in the business. we have within that point what we're doing with real estate and monetizing that and creating cash flow. and then the last point is really what's the future look like? what's behind the corners? where is the consumer going? we call it what's new, what's next, and making sure we have the right and intellectual horsepower on that. what are the new models, the new business, the new partnerships that will strike out.

so that's our overall strategy. overall we are looking outward as much as we're looking inward and we're committed to that joern. >> reporter: you've said you think department stores may actually look like malls within themselves with food halls and different experiences, services as well as selling product. but customers aren't going to malls as much as they used to, then why is that a solution for the future for macy's? >> i still think that the notion of a mall, the notion of a department store within a mall is relevant today as it always has been. i think we have to have new reasons for customers to come into a store or a mall and some of our best malls are getting positive traffic. when you look at our stores, so the stores we're investing in right now where we're putting new initiatives into, we're seeing traction from them. i think the notion of a store and the experience you have to put into it is different today and will be different in the future than with the way it has been in the past. we're working on the next generation of stores,

experimenting with that, looking at smaller stores, we're putting more fashion in, we're adding experiences like food eateries into these stores. look iing it at the role of service. where does service play in a store today. so in some cases there are high-touch businesses, if it's a brand like lens crafters, a lot of service there if it's a fine jewelry business. some where the customer has everything they need on their mobile device. if we have a great app, which we do, they have everything they need, the customer reviews, the potential of doing mobile check-out at some point in the near future. we're reimagining what goes into that store and what the services are that we're going to provide. >> reporter: does headline risk make it tough to do your job? are you scared customers are gettinger in voice what they're seei getting and turning to different channels? >> most of our malls, most customers perceive as very, very safe. i do not see that as an active

concern of consumers. i think consumers need reasons to go to stores. every brand that is an omni channel brand has a success itful website and customers really browse there first. so to go into a building, to go into a mall or a store has to be something that will he can sight them. and we think about that. how do we delight her by the experience when she goes into one of our buildings? >> speaking of looking for something and delighting a customer, two-thirds of macy's shoppers are off price shoppers, the tjmaxx shoppers. it is that treasure hunt. so is it something macy's could replicate? >> i think so. we're testing. we do a good job in our culture of testing and scaling. and so right now off price is clearly in our sights. we started almost two years ago with our backstage concept and it started as free standing and we had success with it, much

what you described. shorter lead times, faster turns. we did that in a free standing environment and decided to bring that into store. we need reasons for customers to come into buildings. we looked at some of our unproductive stores and dropped backstage, a section of the door. it lifted the building by a nice margin. if we're going to do that, let's make sure it's an administrative additive experience. we're playing with that right now. we started last year with about 15 of them. this year we're adding 30 more. playing with a couple of different test formats within what i just described and hope by the end of 2017 what we're going to exit with is a viable off price concept that is on mall, not off mall like our ferocious competitors are, but on mall. does that give a customer shopping the macy's side and

buying cosmetics and go over to the backstage side and buy something they would have gone to a competitor with? it helps so. it wins if we get an extra purchase, it is a home run when you get a new customer. we played with all of that and so far the results are promise ing but we're not through yet. >> reporter: very quick final question, if all of these plans sound great but if a border adjustment tax goes through, does it wipe the slate clean? >> this is no surprise. retailers are not supportive of the border tax. we don't believe it is good for customers. we don't believe it's good for business. and we're hopeful that through the efforts of organizations like the nrf that we will make our case. at the end of the day i think it's not good for consumers. prices would go up. i think it could lead to job losses. so we're not supportive of it and we're doing everything that we can to make sure that our position is heard and

appreciated. >> reporter: what would macy's tax rate go to? >> i'm not going to quote that but we have modeled it, looked at it and i'm not ready to tell you what that is. we're going to wait and see. we do think this is a very active issue and it's going to play out. we're not done with this one yet. our position is it's not good for the american consumer. >> reporter: got it. thank you for joining us, jeff gennette. we know you have a very big job, but we will be following along closely. back to you in new york. >> thank you for that exclusive. some quick reaction. the sceo of telsea advisory group. >> thank you for having me. >> jeff is talking about how to think about new stores in order to get customers in. is adding food halls more of an experien experience, is that the solution? >> i think one of the things we're seeing they're putting in different categories. the department store world basically moved more towards

apparel over the past 15 or 20 years and now they need to have more diversification. whether it is some apple in-store shops, cosmetics where all after sudden there's application, whether there's consumer electronics and home, food and restaurants, anything to drive traffic is what you'll see. the other part of it is the fact we're not going to have as many department stores in a shopping center going forward as we've had in the past that will lead to more diversification, too. >> jeff was saying the investment they put in stores so far in terms of trying to rev revitalize them is leaving some traction. are you seeing that on your channel checks? >> yes. i happened to be in los angeles two weeks ago and attended the opening of the new macy's that's undergoing a lot of -- a new mall, a relocated macy's store that looked very good and part of what changed with it, there's more self-service, more interaction with the customers. there's definitely technology

with the my stylist that's included in the stores, so these stores are re-engineered. >> a couple days ago courtney did an excellent piece, animated, showing the cost difference between online and brick and mortar isn't much at all. in some cases online, given the logistics, may be more expensive plus people do like to shop. have we in the media conflated, overstated, what have you, the death of brick and mortar? >> i think overall brick and mortar is going to continue to remain relevant and i think it's omni channel. i think it's a harmonization of the stores and the digital presence. on average that shopper who shops both channels spends two to three times more than the single channel. you need online. you need the stores. the combination together is more powerful than apart. >> dana telsey, a pleasure to have you on. thank you very much. >> thank you. one of the candidates in the french election trying to take a

page out of the obama playbook. michelle is in paris. what do you have coming up? >> now a man working to elect macron who has the lead in the polls even though there's a lot of concern. coming up after this break we'll talk to him and we'll outline the best and worst case scenarios depending on who are the two who emerge on sunday. she can't become a guitar legend just by playing air guitar. the baby's room won't build itself. and her paw won't heal on its own. we're all working forward to something. synchrony financial can help your customers make it happen sooner. so she can plug into her dreams... and they'll have a new addition for their new addition. whatever you're working forward to, even if it's chasing squirrels, synchrony financial can help you get there.

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fedex.com slash dream hthis bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with thinkorswim. only at td ameritrade i'm michelle caruso-cabrera live from paris. sunday is the first round of the french election. there are four candidates in the lead at this point. it's neck and neck. international media is here because of the woman you see on the far right on this graphic we've created for you, marine le

pen. she wants to abandon the euro, extremely consequential for markets. a lot of possible outcomes. what is the best case scenario when you talk to market pundits? they would love to see a run-off. the top two contenders emmanuel macron and francois fillon because they believe in the markets. what would be the worst case scenario marine le pen on the far right and jean-luc melenchon on the far left even though le pen is far right by french st d standards, she and melenchon both believe government intervention, anti-free trade, very, very status. the expected case is that it's going to be marine le pen and emmanuel macron and that eventually when we get to the second round emanumanuel macron wins. rex paulson worked to help get president obama elected twice, and he's working to try to get emmanuel macron elected here in

paris. are you totally unconcerned about the polls because they suggest the moderate candidate will win by a landslide in the second round? >> if you blow on this thing the wrong way, everything as we know in french politics could turn upside-down. you could very easily have two candidates who are not part of the two traditional political parties in france, or you could have a candidate who has rejected the european consensus from the left in melenchon and another in marine le pen. there is nobody who is a favorite and we are taking it as seriously as anybody at this point. >> were you involved in helping to get this phone call between president obama and emmanuel macron that he tweeted out and sent out a video of him on the phone with president obama? >> i did mention it to him on the basketball court last weekend -- no, i don't have that kind of access. i've been work iing hard for democrats abroad and i'm happy to see the two of them talked. >> you are happy and the reason

i question why you would be happy is president obama goes to the uk and tells british citizens they'll be at the back of the queue if they vote for brexit. they he didn't listen to him. he talks to angela amerimerkel somebody said who do you support? he said i support you but i don't know if that could help you or hurt you. is he helpful or does that speak of more important interference? >> i've been on the ground knocking on doors and barack obama still has a wonderful respect and a deep admiration. he is much more helpful than hurtful. france is full of insecurity and care more about their own domestic economy than what america thinks. >> lex paulson, it will be a historic weekend. good to have you here. thank you so much. guys, back to you. okay, i'll take it. thank you, michelle. michelle, of course, from paris. exxon mobil has been seeking a waiver from the treasury department to recommence its drilling in russia. did they get it or not?

let's go to eamon javers who has that news for us. eamon? >> reporter: no, they did not, david. the treasury department just putting out a statement here within the past few moments saying in consultation with donald j. trump the treasury department will not be issuing waivers to u.s. companies including exxon authorizing drilling prohibited by current russian sanctions. now you remember the reporting from earlier in the week which said exxon mobil was pursuing that joint venture with pao state controlled oil company. they wanted a waiver from those sanctions. they are not going to get it. >> thank you, eamon javers, updating us there. rex tillerson, former ceo of exxon mobil, now the secretary of state. well, something is happening in the world of car racing that has not happened in 50 years sending shock waves to the racing world. we'll tell you what that is and why it is a big deal for the sport. first, the always fast rick santelli at the cme. green flag to you, rick. >> reporter: i'll tell you what, we always like a green flag. it's a weekend coming up,

elections, of course, markets will get a little squirrely. look at some of the behavior in he cequities about 30 minutes a. down two on the day, down three on the week. one week of tens minus hovering right around 104. one week of bund, this is the weekend of the election in france. basically it's up six basis points on the week. and the currency, even though it's down on the day, keep in mind closed at 106.17 last week. "power lunch" will return in two minutes.

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oil continuing the rough week. oil is down more than 2% right now. the rig count is up showing a nearly doubling in the number of oil rigs on land in america from year over year. the price of oil down 8% in one week. imagine if a golfer skipped u.s. golf tournament and went to

one somewhere else. that's what happened in car racing. skipping a high profile price to race in the indy 500. and he's racing for andretti auto sports team. michael, thank you for coming on. how did this deal come about? >> it was pretty crazy. i think it just happened by a casual conversation that zach brown had with fernando when he let it be known he was interested in running the indy 500 someday. zach ran with it and we were able to get a deal together. it was an interesting few days when we were trying to get it to work. happy the way it came out. i think it's going to be an excellent program for everybody involved. i think we're going to be able to give fernando a good shot at winning the race. it's great to have mclaren as a

partner, and have them in indianapolis, it's a win/win for everybody including formula one. they're trying to get bigger presence here in the u.s., and it's a great way for them to get a lot of recognition for having fernando run this race. it's one of deals that i think everybody is just going to win on it. >> it's going to be huge, no doubt. indycar ratings have gone up nicely. nascar has been suffering. indycar has come back up. n how did the drivers react? not only your son marco but last year's winner, alexander rossy. you have one of the highest profile drivers in the world jumping in for one race. it's got to shake up the camaraderie a bit. >> no, not at all. i think it's going to strengthen it. they're all excited to have him in here. as a driver you always want to

compete against the best in the world. i think fernando is considered one of the best if not the best in the word. so to have him on your team i think is going to be great. and guys like marco and ryan are excited to be able to work with him, and i think they're looking at it, and maybe they'll learn something from him as well as fernando is going to learn a lot from his teammates because he's never driven on an oval. everybody is excited about it, the drivers, the engineers, the mechani mechanics. there's not been one negative. >> you mentioned driving on an oval, and we see the practice going on on a traditional road course. you've driven and won an road courses and ovals yourself. people say all you do is turn left. you're going 230 miles per hour. what's the single biggest piece of advice he needs to learn about potentially having a chance to win the indy 500?

>> i think my biggest advice i'll going to give him when i see him is learn from your teammates. follow what they're doing. and i think the biggest adjustment he's going to have is not necessarily the speed of going out there by himself. he should pick that up pretty quick. it's going to be traffic. when you're out there with other cars and you have so much turbulence and how do you set your car up in it. it's going to be his biggest challenge. i think our team is going to be able to help him a lot in that area. we'll have six cars. we'll simulate race conditions. by the time the race rolls around, i think he's going to be ready and know what to expect. it worked out really well for alexander last year. he learned so much. he was very ready for the race when it happened. and obviously it showed at the end of the race. >> michael andretti, thank you and good luck. we'll see you at indy.

>> mcdonald's share hitting an all time high. we have one expert's bullish call on mcdonald's next on "power lunch". welcome to th

of "power lunch". we have breaking news. the associated press ran a headline from an interview with the president of the united states saying president trump tells ap he will unveil tax plan that includes a massive tax cut for individuals and businesses. the treasury secretary said that tax plan would be coming soon. according to associated press we now know it's coming next week. and it will be focussed on both businesses and individual tax cuts. there had been a question about whether or not this white house would push for a broad structural overhaul of the tax system or content itself with targeted tax cuts. from the president, it looks like they're pushing for the structural overhaul across the board. we'll see for the details. some news here now from the president in terms of taxes. all right. thank you. another headline a positive one on taxes. no surprise. we're getting a lift higher in the markets. take a look at the interday, you

see the s&p 500 gaining about 4 points on the back of these headlines. we're now sitting on a loss of just two tenths of one%. the dow is down about three points and the nasdaq is down by .1. >> all right. let's bring in grover norquist, president and founder of americans for tax reform. sometimes it works out on tv. good timing. i bet you know some details of what trump called the biggest tax cut ever. what do you know about it? how are they going to pay for it? what's getting cut? >> it's probably going to look a lot like what trump talked about in the campaign merged with the republican house proposal which was co-authored by the president trump people. we trump talked about taking the 35% corporate rate down to 15 %.

that will go at least to 20, maybe to 15. at least to 20. that makes us competitive with the rest of the word. we're not there now. it will also include something that both the house republicans and trump made a commitment on. and that is the business income. when the president talks about business income. a lot of business income is taxed at the individual level through subchapter s corporations. both of those rates will come down by 43%. >> so this is something -- we have not talked about this a lot. we talk about stock market and fortune 500 companies. the majority of americans that are independents are s corp.s. are you suggesting maybe eve an one person business could get a big tax cut by making them into companies? >> yes.

that is exactly what both the house has been looking at and the trump campaign and trump presidency have both been moving toward, and they've been there for some time now. some of the state -- i'm sorry, the national federation of independent businesses which represents many of the smaller companies thinks this is their highest priority, and they worked very hard with trump. he worked with them. and committed that you'd have that. that's why this discussion that you have heard, what if they were going to do corporate only, i don't believe that was ever an option. it was never going to happen. some people thought about that several years ago thinking maybe obama could go for that. but the small business community, like 10 million guys in s corp., they would have gone ballistic many opposition. putting them together, it's not just general motors and boeing that finds this exciting. it's ten plus million self-employed people.

>> a lot of people said that's why. you have to do individual and corporate together. of course, let's assume that we get what the president is calling the biggest tax cut ever, or i'm looking at some of the language he's used here. massive tax cut. biggest yet. bigger, i believe than any tax cut ever. let's assume it sees the light of day next week. do you think it will include a boarder adjustment tax that was in the house ways and means blueprint? >> that's the biggest question in my mind, because when you look at the present plan that's put together, the white house, the senate, and the house have been working on this together. the governors have been in on these discussions. this has been predigested and worked out and you could see it coming together over the last year. as people came to the same place. with border adjustable, it all fits together and it's all permanent. with adjustable, you can have a territorial tax system and from now into the future, all the

money overseas can come back tax free and flow back to the united states. if you don't do border adjustable, you have to find a trillion dollars in high e taxes somewhere else, and you have to find a different way to make territoriality work. it's not easy to find a piece of the puzzle that does both of those things, so i would not be surprised to see it still there. if they're going to come up with something else, it's going to have to do two different things. the third option is you take the trillion dollars off the table, and then much of the tax changes die in year 11. it's temporary. >> although, gary cohn said he would like permanence to the tax cuts. does that make you believe the border adjustment will be in the tax package or through dynamic scoring the tax cuts will pay for themselves somehow?

>> the house blueprint has been scored and they used dynamic scoring. they get about a trillion dollars in that. this is a tax cut. this is not revenue neutral. it's deficit neutral near 11 out. it cuts taxes by trillions. that's the good news. i think cvo understates the dynamic effect of taking corporate rates down and the full immediate business expensing that's in the present plan. that's a trillion dollars, but much of that is gained because of the -- regained because of the effect it has on job creation and economic growth. >> all right. grover, thank you for joining us. we appreciate it. grover norquist. trump making a promise on tax reform. will he be able to deliver? you sayover promise, underpromise and overdeliver.

you're skeptical? >> i wrote a piece prior, but if you look at donald trump's business career, he has at least for his constituents, whether they were employees, investors, stockholders, contractors, always overpromised and underdelivered. he has a constituency of one, himself. that's the person that's benefitted the most from his business activities. he's governing in the same manner. >> does it matter? could it be okay to underpin the gains we've seen in the markets? >> as he's doing again today, speaking in superlatives where you promise to repeal and replace obama care. they're going to try again. if they do, funding the it will be difficult. they're counting on a trillion dollar reduction in medicaid expenditures to help finance tax reform. if you don't achieve that, you leave open the possibility of not getting tax reform through, and if you're going for

permanence, you can't use budget reconciliation. that opens a different can of worms. >> it would still be a ten-year deal with reconciliation. >> yes. >> there are those who think they're going to do it because now there's no one they can stop. but it would be a temporary likely decade long cut. >> yeah. and account exception of getting a supreme court nominee through thus far, the executive orders have been studies of, promises to. they have not actually enacted any regulatory roll backs. they have extended the time frame over which some of these things might be implemented. it just strikes me that when you speak in superlatives, you're getting yourself up or at least your constituents up for disappointment, and if you can't pass health care reform within the next several weeks, you're going to lose a lot of leverage in congress. >> when he says this is bigger than any tax cut ever, you're not believing him?

>> i don't know. >> he says with sarcasm. >> they may very well -- >> seriously, we've had this conversation, and we will for weeks ahead. let's assume we get something, the president saying maybe wednesday or thursday of next week. what chances do you give it of making it through to law? i mean, we just had macy's ceo on talking about a border adjustment tax being frightening for the retail. there are so many different parts of a potential tax bill. does it have a shot? >> i don't know. i think if it goes through reconciliation, it is a better shot. if it doesn't, you have more arguments in kocongress in favo of retailers, energy companies who oppose the border adjustability tax. others say it's a nonstarter. i think that raises questions.

health care reform is going to be extraordinarily important, and the president does not have in place the number of people you need for congressional outreach to move a lot of this stuff through congress. they have tried to predend that they are going to rule by edict. it does not work in the system we have. and thus far has not borne any real fruit in washington. >> don't you feel the markets are -- to trump saying it's massive. if anything gets through, it feels like the markets will be okay with that. >> just the fact that you had two administration officials talk about it yesterday and we go up 164 points. i think the markets may be setting themselves up for a serious decline if none of this happens. or if none of it happens on the timetable expected. first 100 days. >> now we're looking by the end of the year. do we have runway to the end of the year? >> i don't think so. i think the market is at risk at being disappointed. >> we end up with some sort of

tax puts and repatriation deal? >> i suspect that's probably right. >> what do you think would happen, we talk about theoretical stuff. what do you think would happen if trump says we're not going to be able to get tax reform or infrastructure done. i tried. it's not going to work out. would the stock market fall or go up or not move at all? >> i think it would fall. >> why? >> the fundamentals underpinning everything are so good. >> the market is priced in the rebound of corporate profits. the marketplace in the rally since november 9th. also priced in, all the additional stimulants, no matter what it is. the increase defense spending, it's been added to the rally we've seen that's carried through up until the beginning of march. i think there's vulnerability. i doubt this president would say nothing is going to happen. that's not in his personality. >> it was a theoretical. >> i understand.

i think the market then runs the risk of serious disappointment. it could be a five or ten percent correction, not the end of the world, but the market is set up now to expect things that may not happen. and the president thus far hasn't shown a great deal of skill in getting legislative accomplishments through congress. >> all right. thank you. well, it's not just tax reform. we learned the senate budget committee working on language for a new health care bill. but if that fails, some people may find themselves out of options. bertha is live in tennessee talking to the real people who would be affected by these politics in washington. >> reporter: hi. here in eastern tennessee, humana is the only insurer on exchange, but they're pulling out of the obamacare market next year. for people like john and sheryl who are sel self em ploided, the concerned about having no

options. they feel like washington just doesn't get it. >> do they realize what type of pressure that you face every day in making health care decisions? >> simply waiting to let the current law explode is going to leave a lot of people hurt. >> now, the state's insurance commissioner says she's been talking to the other insurers in the state to try to fill the gap, but with more than the half of the state's enrowly's getting subsidies, until it's resolved, they don't think they'll step? . >> the most critical issue for us is funding of the cost sharing reduction payments. >> julie, the incoming president of the nic, the national insurance commissioners, says when you take a look nationally, tennessee may be the only one

now, but she thinks a lot of other states that could be feeling the same pain sometime this summer if things are not ved in washington. >> thank you. the market is getting a bit of a pop on the back of those trump headlines regarding taxes. bob is on the nyc floor and brings us more. >> hello. it's a confluence of events moving the markets. recently we were at our lows and popped. take a look at the s&p 500. the president tweeting he's going to unveil tax cut plans on wednesday. massive, he says, or shortly thereafter. the lows moved to the up side. bank stocks reacted to that. the kbe, the bank etf moved to the up side as welcoming off the lows on top of that. and, of course, generally we saw ten-year yields also moving up a little bit. if you take a look at that. the overall market lifted. on the ten-year, kb lifted. david, we have three events going on here. strong industrial reports early

in the day with general electric. geo political events with the french election, and tax cuts are back on track, or that's what the president says right now. thank you, bob. giving us an update on where we stand with stocks investigate let's head back to paris. something important going on there this weekend. >> reporter: president trump moved the markets by telling the associated press that there's going to be a new tax reform plan coming very soon. in that same interview president trump weighed in on the french election. we'll be live from paris after this break to tell you what he said and what he thinks. don't move. okay let's call his agent i'm coming over right now.

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welcome back to "power lunch". we're awaiting the first round of the french election on sunday. president trump in an interview with the associated press weighing in on the french election saying that last night's terrorist attack that happened right here on the shawn s -- thinks it's going to help marine le pen. she wants france to leave the eu. is it going to help? we have new poll numbers that just came out in the last hour. some of the people surveyed were surveyed after last night's attack. she has gotten a half a percent

boost. she is now neck and neck with the centrist name macron. the top two vote getters go to a final vote in two weeks. right now the best case scenario is if le pen was eliminated and we had a faceoff between macron and fillon. they both like the markets. the worst case scenario is le pen against melenchon. they both believe in more state intervention into the economy. what's expected is that it's going to be macron versus le pen. let's talk with the chief economist right here. good to have you here. >> thank you. >> do you disagree with anything i said? >> i agree with you on this point, and the keys are the same

with macron and he le pen and fillon. >> clearly the election is impressing. you have two candidates that are against europe. as you said, macron and fillon are more business oriented candidates. that's the point, and we expect that macron and le pen. that's what polls say, and usually they're relevant on that point. >> i want to draw a point next to what you said. usually the polls are right. let's see. the recent history for polling has been dreadful. i'm a journalist, so i like to focus on the negative.

monday comes and what if it is the two people who don't like the markets? what if it's marie le pen and melenchon. how bad is it? >> the point is they said in the program that they want to discuss critics with other european countries, and if they others don't agree with them, they are exit from the european institutions. and that's what market fear. and so in that case, probably we will have a new french currency, and not independent. that sets the framework. an inside case, it will be negative for france. so we can expect on monday morning we would have a drop in the french financial markets. more than that, we have to think that with french out of the euro

zone, probably the euro zone could burst. and against the dollar the euro will be -- >> everyone says not so fast. even if one of those people leads france, they still have to get the parliament. do you buy that or just the fact that french voters could choose somebody like them would still be negative enough? >> if you have marine le pen, for example, she has 6 million people behind her. if she wins the presidential election, she will have 16 of 17 million people behind her. so it means that people are legitimate, and probably they will give a large share in the national assembly. so she will be able to govern with this national assembly. >> very, very gyyou euro negati. thank you for joining us.

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wac back. now for the good, bad and ugly and today's trade. . the engine maker topping third quarter earnings expectations on to the bad. that's electronics down about 9.5%. they missed first quarter sales in revenue forecast, and mattel done by almost 12%. they missed first quarter earnings expectations. >> all time high today. our next guest has that stock as one of his biggest holdings. he's going to tell us what else he likes. plus a rough week for oil is about to come to an end. we'll bring you the closing trades coming up. and president trump is heading to the treasury department to sign an executive order regarding taxes. stay with us.

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here's your news update at this hour. the u.s. says american forces killed an islamic militant with ties to the new year's eve nightclub attack in istanbul.

the militant was tracked down during a secret u.s. ground operation in syria on april 6th. pg&e says it's working to get power restored within 90 minutes. it began about 9:15 local time. officials say more than 95,000 customers lost electricity after a substation fire. the oklahoma city area is also dealing with some outages today after strong storms barrelled through the state and cut power. severe weather remains in that region. and the first named storm of the year is expected to dissipate today. tropical storm arlene weakened to. it developed more than a month before the official start of hurricane season, june 1st. that's our news update after this hour. back to you. thank you. we are 90 minutes away from the closing bell. stocks an interesting ride in today's session, especially after headlines from the president saying we will get a

massive tax cut sometime next week. we saw the markets lift off those headlines. the dow is now in positive territory, up by 6 points. the s&p is down about by 4 points. the nasdaq down by 5. we saw dramatic reversals within the sector. bank of america was down by more than 2 %. it's now down by less than 1%. we're watching oil. a down day. i think a 7% decline for the week. >> that's right. 7% decline just about. but we're off the session low which was 49.20. we have the close over the mark. it's interesting to note when it comes to oil prices, the news that we got really was actually some of it was supportive today. the rig counts didn't help. you had news out of opec talking about the possibility of extending that cut. it actually was a special

committee recommending the extension. it's not necessarily new news here. but certainly supportive. but again, not enough to take us over 50 for the end of the week. back over to you. >> okay. i will take it. thank you. dow component mastercard trading at all time highs at least since the ipo in may of 2006. the stock up more than 2400% since that time. funds up over 9% this year. that's easily ahead of s&p. joining us is jim tyranny. >> call it a day. take the summer off. i think 2006 was the year of the cyclical company. i think 2017 will be the year of the secular grower. and mastercard is one of those businesses. we think there's a lot more to come. >> why do you believe that? not mastercard, but the thesis

about secular growth? >> people were buying into we were going to have a huge economic rebound. it hasn't worked out. money is moving from those kind of companies to the companies that can grind out the nice 10% growth, and mastercard is in that sweet spot. >> when you look at your portfol portfolio, i would expect alphabet or apple. i think of some of the other names that define the outperformance from the broader market. abbott labs? >> it's been great. if you look at last year it was punished because it was waiting to close the st. jude deal. it closed in early january, and it's been off of the to the races. it trades at 15 times an ex year's earnings. >> it's not well orchestrated. >> i think that will be a crete of and in a nice growth area of

the market. >> concerns about delphi in light of what's going snon. >> when you look at the number, 92 million cars globally. there's more than just the u.s. >> even in china they're seeing car sales down. >> i think car sales are still up in china. certainly up across europe. there are other growth markets. delphi is content. you're seeing more of their products per car. >> what's the last stock you sold? >> we sold some vf. >> are you out of it? >> we're out. >> because you have few stocks. that's why it's a focussed fund. what made vf corp. now unattractive to you? >> everybody talks about amazon is disintermediating brick and mortar, but also it's brands.

vf has great brands, but we saw better the opportunities in the market. >> we started off talking about mastercard which is down. visa is also down. why do you see that as a secular growth story? >> think about the different ways you pay for things. you're using your cards, whether it's your apple pay or whether it's any other way that you're using your credit card or debit cards much more in every part of your life. right now 84 % of all transactions around the world are still done with cash and check. there's still a huge conversion opportunity for both those companies which is why it's a great secular growth story. >> you're concentrated. you're focussed on growth, but the market can have an impact on your portfolio. we have a fairly high multiple on the broader market. are you concerned about the broader market? >> i am. when you're trading at 17 times hoped for earnings, if you have any kind of a slip, it could be

negative. looking at this. but when you look at a company like mastercard, if global consumer spending is 5%, but they're growing the revenues at 12 or 15%, that gives you a lot of room should things go south a little bit. >> jim, well done so far. thank you for being with us. >> thank you. the old-timers in oils have a saying. the cure for higher prices is higher prices. production goes one when prices rise. it's going on again. and we'll talk about what it means for stocks. we're expecting the president to arrive at the treasury. when he does, we'll bring it to you live. a lot more to do. stick around.

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time for street talk. the analysts recommendations on the stocks you need to know about. first national beverage corp. getting a downgrade to a neutral price target of 82. it's hard to find a good reason why shares have climbed so much. it's rumors coca-cola could be interested. they say the market cap tops what it thinks fizz would be worth in a takedown. >> what did you tell us about

the margins on lecroix water? >> i don't remember. >> csx, a double upgrade. raymond the target at 65. they upgrade grade to buy from hold. analysts like to increase around hunter harris's turn around program. he's removing a two year discount he put on the stock. that target 25% above the current price. stock number three. quest diagnostics. 116 on the back of quest strong earnings report. raymond james saying say they the bears growling at the stocks. it sees more up side through growth and potential m&a. >> final stock. this may be your biggest small

cap call of the day. it's just $17 billion rhode island based bank citizens financial group. >> 17 billion? >> yes. but it's not a name we talk about. and it's friday. cut me some slack. this policies earnings. the earnings should continue to grow at a faster pace. expense levels are under control. and they upgrade and boost the target to 41 from 38. up side for one of -- it's a small cap because it's in rhode island. >> no. it's not small cap at all. >> rhode island has the longest official state name. did you know that? >> i didn't know that. >> the xle emergency etf hitting the lowest level since november. it's a learning kind of day. let's bring in the team. david, listen, we joked around.

the cure for higher prices, higher prices, we're back under 50 on crude oil. does that mean the stocks, it's 40% two stocks, will rise or fall. >> >> we're getting to a point where you're seeing a level that's a trading buy. you have supply growth that's overhanging the market and the commodity's side. the opec sort of tail when it's being overshadowed. the xle, 65%, close and buy it. we're getting close to that level. i'd start picking away at these levels and get aggressive as you see more downside toward the 65 level. on the desk we've seen nothing but sellers in all the names, especially the bigger or winners right now being sold at our desk. i think even the bowls are almost capitulating here. again getting closer to a bottom. i think there's a little more

downside. >> 65, david. you said it. the line in the sand is what we're watching. larry, your take on the xle or maybe even oil prices generally? >> i think more importantly is coming into the new year, the trump trades were popular, infrastructure names, high-teches, equities, and that's all gone by the wayside. those groups are down, and we're between 11 to 20% since december. now is the time you want to be leaning into some of these names. oil in the xle, these are the high tax regime oil names. the biggest in the s&p in terms of taxes. as the perception of tax reform comes back in a positive light over the next couple of months, we see a substantial up side for the xle. >> okay. david telling us to watch 65. a reminder. 40% of the etf is exxon and chevron. that's largely what you're buying here.

>> for more head to our website. for whoever was whistling in the studio, nobody likes a whistler. >> okay. i'll remember that. i'll let you share that message. mcdonald's went public 52 years ago today. and the stock has never traded higher than it is today. we're going to talk to an analyst getting more bullish on mcdonald's, and by the way, it could be soon delivered by a robot. that's next on "power lunch". >> while it is true that volatility can benefit the trader, it can also lead to ayos and a greater amount of risk. in volatile markets narrow your risk parameters to narrow losses while capitalizing on the swings that go in your favor. [vo] quickbooks introduces jeanette

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welcome back. a white house official has sent a note with some context here now on the president's remarks about his tax bill which the president told the associated press could be coming as early as next week, wednesday or thereafter. the president told the associated press. officials saying the president

was saying what we've been saying all along. he wants to do tax reform as quickly as possible as doing it right. an official said they won't preview the details and said the president's comments came in the context of an interview on a number of different subjects with the associated press. there's questions about when and what exactly we'll see from the president in the terms of tax cuts and how much of a structural reform there this will be and how much of a targeted tax cut in terms of corporations and companies will see. >> you said context. is this effectively walking it back a little bit? because his statements were extremely aggressive when characterizing the size and the time frame of the plan. >> i don't think so. the white house has always said this was coming. and the treasury secretary said it was coming very soon. >> but wednesday and very soon -- >> they put a point on when very

soon is, absolutely. but whether we're going to see it wednesday, does that mean thursday? could it slip to the end of the week? i think those things might be more in the air than the sense reading that only. >> it's a big headline, but i guess the opposite is tax reform slowly and badly. i mean, what's he going to say? we want to do it quickly. it's going to be garbage, but it'll be done. no, they don't talk like that. >> no. absolutely. >> best ever. >> right. also, remember, the important difference, this should go without saying, the important difference between announcing a tax plan and passing that tax plan up on capitol hill. in order to do that, you have to get buy-in from factions on capitol hill, the same factions that bedevilled them on health care. most administrations do a front of the scenes rollout in terms of the big pr push, have the

president travel, do rallies, and behind the scenes push with all the industry groups, trade associations, and interest groups here in washington to mobilize them to put pressure on the hill to pass the package. all of that stuff presumably is the tail end of the train, the engine might be leaving next week if the president is correct here in the timing, but all of that effort to pass this massive project would have to happen in the months to come. >> thank you. at the white house for us. well, everything seems to be golden at mcdonald's. stock all-time high, up nearly 10% so far year to date. more on this move, let's go to bob, the senior research analyst. bob, great to have you with us. raising the price target to 140 from 136. there's been a slew of positive reports out on mcdonalds this week, initiating it outperformed, upgrading the stock this week as well. what's behind the sudden interest in mcdonald's? what are they doing now that makes you more confident in

them? >> well, melissa, dream with me for a minute. what if, in fact, the company with the worst food in the industry begins getting better? you know, i think we're on the cusp of that with mcdonalds. it's not an overnight success. they worked east brook taking charge in 2015 made gradual progress. as we go deeper into the year, there's going to be a lot more evolutionary change than seen over the last two years. i think it means good things ultimately for both sales, earnings, and the bottom line for this company. >> what sorts of -- i want to continue dreaming the dream with you, bob. what sorts of food? fresh beef and slushies -- we have to interrupt. we have to get to president trump at the treasury. steven mnuchin, the secretary speaking now. >> thorough and mindful of the goals and look forward to delivering findings in june. your directives today further highlight the priority of this

administration places on fair and efficient regulatory relief. they provide further focus and depth to the mission here. we're going to go back and look to see if the processes regarding orderly liquid dags authority and other determinations make sense. we have a targeted mandate in place to review both. as instructed, i will report back to you on our findings. in the interim, you call for a much needed timeout for the financial stability counsel's process for designating financial institutions that is systemically important. until the review is completed, we greed not to designate new nonbank financial institutions except in cases of emergency. the goal is to make it smarter, more effective process to reduce the sis stemmic risks that harm so many americans during the financial crisis of 2008.

under authority, we look closely to evaluate whether framework is consistent with your core principles. we intend to provide a clear analysis of the extent to which ola encourages inappropriate risk taking and extent of tax a payer liability. we note some codes appropriate for resolving financial distress. this launches a recaption of last year's major tax regulations to make sure they do not unduly strain the americans and the economy. calls for revision or appeal the harmful rules that impose unnecessary costs and complexity on taxpayers. i look forward to taking a hard look at the tax code that consumes billions of productive hours in compliance costs. a significant amount of time has passed since the crisis. with the passage of time and

with your leadership, we are now well positioned to evaluate what works and what does not. we believe in clear and effective regulations, but not regulations for its on sake. where we can do so, we'll lift burden of excessive regulation to make sure banks lend, small businesses borrow, and american's work can thrive. on behalf of the entire staff here at treasury, who work tirelessly to make this country prosperous and safe, i want to extend our warmest welcome, ladies and gentlemen, the president of the united states. >> thank you very much, i just want to thank you. >> certainly. >> thank you. >> thank you very much, steve. great honor. i must say. it's a great pleasure to be at the united states' treasury

department and meet so many dedicated public servants. i went through the beautiful hallway with incredible paintings of past secretaries and it was very interesting. i want to read every one and learn about every one of them, but we have one that i hope goes down as one of the greats. i think hamilton is tough to beat, but maybe you can do that too. we'll take it, right? but thank you very much. the treasury department is the guardian of america's wealth. and a worldwide symbol of american prestige. this department was first led by the same gentleman, alexander hamilton, a man who understood that the government must protect the job of its citizens and the wealth of our nation. secretary mnuchin, who i've known for so long and he's so good and so smart and so financially adept, is working

very hard every day to do just that, to protect the working citizens of america and to safeguard our finances from nip, anybody, any nation who would try to take advantage of the united states. his vast experience and financial talent are now being put into service on behalf of the american people, and you'll see what i mean very soon. we have taken unprecedented action to bring back our jobs and return power to our citizens. it's been taken away. we've lifted one terrible regulation after another at a record clip from the energy sector tots auto sector, and we have many more to go, and that's going to be happening over the next, i would say four, five weeks. we have begun a historic effort to begin manufacturing and manufacturing businesses, companies, and our workers from unfair foreign trade.

protecting our treasury also means getting other countries to ti finally pay their fair share for the cost of defense, and in other global projects that for too long fell under our guidance and unfortunately fallen under the united states' taxpayer expense. we're going to end that. going to end it quickly. we want fairness. we don't want to take advantage of anyone. we want fairness. we are now in the process of rebuilding america, and there's a new optimism sweeping across the country like people have not seen in many, many decades. we're here today to continue this great economic revival. i will be signing three presidential directives to further protect our workers and our taxpayers. the first executive action instruct secretary mnuchin to begin the process of tax simplificatio

simplification. such a big thing. people can't do their returns. they have no idea what they're doing. they are too complicated. this regulatory reduction is a first step towards a tax reform that reduces rates, provides relief to the middle class, and lowers our business tax, which is one of the highest in the world, and has stopped us from so much wealth and prosecutingivity. secretary mnuchin is a leader in our effort to make america competitive again. we're going to make it great again, strong again, make it safe again, and we're going to make it competitive again. i'm issuing two directives that instruct secretary mnuchin. many cases, rules have done the opposite of what they were

supposed. these regulations shrine too big to fail and encourage risky behavior. we're taking steps to make our economy more fair and prosperous for all. as part of our broader financial strategy, we're working to open up lending to small businesses and entrepreneurs including our incredible women entrepreneurs who are doing better and better and better. we want opportunity for everyone and in every single part of our country. secretary mnuchin and the entire administration work around the clock to help struggling americans achieve their financial dreams. earn a great paycheck, have a job they love going to every single day, and have real confidence in the future. together, we will restore prosperity to the nation, a nation we so dearly love, and to