so, my play there is a simple one. royal dutch shell. >> you don't want the president finding out your track >> the lifting is evident in that marathon deal today >> guys, thank you erin, thank you. "power lunch" begins right now thank you very much. welcome everybody, i am tyler mathisen what's on the menu of a wild week ahead earnings on apple and a fed decision on interest rate and the jobs report. we'll get you set up for this busy week. it is an mma monday back in a big way. t-mobile and sprint announcing the merger and what does it mean for at&t and verizon and everybody. a blo a block buster at the box

office, disney's "avengers" breaking in the most highest of all time and that does not include china. we'll talk about the stocks and more beginning right now on "power lunch." ♪ welcome to "power lunch," i am sara eisen investors are struggling to end the volatile month here. the dow is up more than 125 points earlier verizon and intel among the dow's biggest drag right now mik m mcdonald's is the biggest gain on the dow sprint and t-mobile are getting whacked on the back of their merger news. marathon petroleum is dropping on its plan and andeavor is soaring. the company spin off from

arconic back in 2015 some business out lines are coming ucom coming out >> thank you, sara i am melissa lee the wearable device teaming world cup google to provide health data with patients. fast food dollar deals surge in the first quarter. value menu traffic is up since 2018 value menu sales saw a 13% gain. spending bouncing back last month and personal incomes continue to grow the personal savings rate dips from the prior month tyler. all right, thank you so much melissa. right now markets, they are flat but requewith earnings mostly positive why has the rally been a little bigger or rally at all bob pisani is at the new york stocks exchange. explain it to me >> two bogey words gotten everybody talking here since the earnings season

started, i date it to april 13th, the s&p have been sideways and semis are down and they are down again today why is this happening? why position is we did have a rally on earnings and it was in the fourth quarter of last year from october through early january. we went up 400 points of the s&p, that had a 16% decline. once we start hitting questions of higher rates and wage inflation of february, we had a little bit of correction and sideways in a consolidating pattern. don't say we have not had any rallies. is there a bigger problem for the market here? well, maybe here the big gains happen on the tax cuts but there is the slower global growth issue that people are debating right now people are saying maybe we are not going to have the kind of robust growth we were

anticipating overall you put higher rates together and have the other ugly word, stagflation. that's what is giving the market a little bit of a pause right now. let's take a look at this. the one thing if you look at sector and oils are stronger and benjamin netanyahu is talking about an announcement on iran and we don't know what it is but it drove oil prices higher and banks and materials and semiconductors all week today. mix day, guys, back to you >> bob, thank you. >> earnings and deals feeling the bolts today of the last trading day of april will they win to be determined will the old adage selling may go away this year >> let's bring in paul christopher, good to see you both quincy and paul >> first on the deal boom that

we have seen whether it is driven by additional cash by tax reform or the window for rates as they start to go up where do you see more if so? >> we expect m&a across the board and in pharmaceutical and biotech. it started to see merges and acquisitions we expect to see it across the board in every sector. >> what's driving it primarily >> what's driving it is the regulatory backdrop is very attractive you have more cash with the tax cuts i think you know typically you go into m&a deals when you worry about growth you go out and buy growth. more and more companies realize they need partners and they need to be able to move quickly and not organically. >> paul, do you expect m&a to be a big theme and do you expect this rally to continue or there is some real worries of what's going to happen with the cycle

>> yeah, we agreed with the idea that there is extra cash coming in right now and there may be some hesitation about how strong organic growth maybe that'll fuel some m&a activities we do think spending in the economy is going to be solid we look at the revenue line of 10%. you got wages up 2.5% and 10%, we think that's still an attractive feature for earnings that are going forward >> paul, bob used the phrase that has not been heard around these parts in a long, long time and that's stagflation which is slow economic growth and rising inflation. are you worried about that and i am going to ask the same thing to quincy? >> no, i am not worried about that growth is solid and there is plenty of the inflation side that looks a little bit weak especially in the durable good area where we have been in deflation for a while. we think some where 2% and 2.5% inflation that should give us a

ten year between 3 and 3.5 revenue growth is strong this year >> do you feel the same way quincy >> no, yes >> well, it is no or yes >> it is both. >> okay. >> stagflation, you can have it, it is a spectrum we live through major stagflations in this country the actual growth is going to come into the economy even at the margin you are going to see capit capital expenditures picking up and leading more gdps. we are expecting companies building out there and tech infrastructure to the point that we'll see a balance. >> so i hear you say the flation part is there but the stag is not. >> i don't think so. the next eight or ten months, no >> thank you, guys

we'll leave it there >> let's get to dom chu right now. closi closing arguments are taking place today. what we see is price volatility of the shares of time warner the justice department concluded its closing arguments. the court is in recess right now where at&t and time warmer will make their their argument. we are getting some words about the closing arguments that the doj is making. they' there should be some structural remedies that are put into place at&t should be allowed to buy portions or parts of time warner this may be a bit of a concession perhaps by the justice department in case things don't go their way. in this case here, that's what the justice department is saying again, we are waiting until 2:00

this afternoon where at&t and time warner will make their closing arguments. that's the reason that you will see the price volatility of time warner >> if the deal is not rejected out right by the court then the doj will be in favor of other stru structural remedies. >> okay. correct. that's the reason you are seeing the particular headlines coming out of the courtrooms and that's what's driving shares. >> thank you, dom chu. let's bring in our own david faber and beverly hills. first, we got to get your reaction on this which is the news just crossing >> we are at the end of this trial closing arguments, you know, melissa, i have not been down there but i have been spending a lot of time speaking to people in courts on most days and their argues after listening to testimonies from at&t and time warner witnesses. the government did not

particularly prove its case that it will be competitive and the key being would result in a significant raise in prices for customers of time warner and other services structural remedies at this point, we are not going to hear from him by the way until june he's going to take some time here and figure out where he wants to come out. it does seem to the extent that the government at the end, you don't have to block it but you can do this. i guess i understand where they may come from. they have been arguing that their case have been a strong one but judging from the people who have been watching this everyday, melissa. there is a belief and mostly that judge lee will agree with at&t and time warner >> the government is conceding defeat, it sounds like >> no, i don't think so. >> i don't know what they are doing. i got to be honest, i am not in

the courtroom, i think it is too hard for us to draw any collusions i will have an opportunity to discuss this, if i learn anything i will be happy to bring it to our viewers as soon as possible. >> still a fascinating development. we do want to get on the big deal of the day after so many months of speculations of sprint and t-mobile making the merging. wall street does not seem to be excited. both stocks are trading lower. is it because there is skepticism on the deal and getting it done and getting it approved in the process? >> that's certainly a part of it a lot of people using 50% or so is the belief. this is the third or fourth time depending on how many times you want to account that they tried. the entire idea originall originally -- much of it was to merge it with t-mobile to create

a viable t-mobile itself have had great success over the last '06 or so years. the two companies are focused on that outcome and mainly can they get the regulatory approval they need to shrink the wireless providers from our country from four to three? that's a horizontal deal, not like time warner and at&t which was a vertical merger. this one nobody would be surprised and that is one reason why at least you are seeing the stock not performing that well some people are surprised at the cap ex the free cash flow projection as well speaking of john ledger earlier, he's making the case as to a lot of fronts including the key idea of five g and bringing it here in the u.s. and the idea that we are already lagging behind the

chinese, take a listen >> it is the early innovation cycle of 5-g this is not something that we can allow. this will be the first company because of our available spectrum of 600 megahertz and guess what, ctia says they could bring jobs and 500 economic values we are behind. what we hope to do is get comcast and others to step up their investment and we expect that they'll invest in an extra $20 billion and we'll invest in the $40 billion the first three years. this is the key provision that they have been pushing that 5-g is so important and we saw that in the government's decision to block broadcom from buying qualcomm and talking about essence of the national champion

of 5-g and how we need to compete with china >> send it back to you >> pretty direct appeal i think to government officials when he's mentioning not just the big competitors but the likes of the comcast and put forth the notion that there are many people in the space and not just potentially three players. >> that's right. >> exactly to your point comcast and chargers, they signed up a number of wireless subscribers and more than at&t and verizon lost last quarter. they're trying to paint a different competitive landscape here in terms of 5-g it is important to the country and the new competition from cable and the fact that they'll say they'll add jobs, something that's certainly important and appealing to the white house which seems to have more interests these days and scrutiny of m&a.

we'll see how it end up. it will be a long time before we get an answer here it is the key to whether or not they'll get this enormous deal done of $6 billion in snergy >> my understanding is charter is realizing -- >> that's right, tyler it is verizon/spectrum they are using and they're reselling it as part of their service they are spending more money on it and conceivably it is a real competitor and you go the other way and say that 5-g, this new wireless service we'll be dealing with potentially will be a competitor to cable in the home in terms of providing broad band those are all the ways they're trying to at least say hey, it

is a different landscape, don't look at this the way you did three years or six years ago >> all right, david faber, thank you very much. let's get more on the deal bringing in the analysts who downgraded sprint and t-mobile she lowered her price target let's bring our wells fargo security, jennifer it is great to have you with us. >> thank you for having me >> what tr tare the odds of this deal getting through the regulatory progress? >> i think it is going to be a long log for a lack of a better word >> what is going to be the basis on which it is rejected fchlt yrejected last year on an annual athpay tt the market had a potential --

>> you know i think they're saying many of the right things, i think many of us lived through 2011 when at&t tried to buy t-mobile and different deal. hhi index which is the key index that the doj will look at is going look a little bit in some of metro markets in rural area, they're called third and fourth tier markets. it is duo monopoly with at&t and verizon. if you look at on top of one another, both of those companies are done very well t-mobile is not broken and it could be a victim of their own success. david alluded to this earlier. you can look at the growth it has had in the last five years, it is more than surpassed at&t and verizon. >> i am wondering of the nationalist argument that the u.s. have to try to beat china at 5-g and china is racing ahead

of us. sprint is run by a japanese company and t-mobile is run by -- is it going to hold weight for the u.s. government? >> i guess the issue i have is that it is hard to argue is john legere calling them dumb and dumber are really that dumb. at&t is going to be in the line change markets this year and verizon have been clear of a strong strategy building those two carier carriers are nt sitting idol here. i think that argument itself is going to be hard to make >> i do want to get your reaction on the headline that we are getting out of the dc courts if the deal are not rejected by the court that potentially structural remedies could be on the table, what does it sound like to you? >> yes, that could be many

things i would not want to speculate there. we have thought for a long time that the case and the laws very much on at&t side in their closing arguments today may be showing an uncle call by the doj which i think is how this is going to shake out >> does this decision have any weight on t-mobile and sprint are allowed to tie together. i cannot keep track of larger calls or dumb or dumber, is at&t finally approve to merge by the judge and a much bigger competitive for better business, would that matter? >> it does help the sprint/t-mobile. that certainly helps it is a different conversation and that at&t and time warner very much a vertical merger and this one is 100% horizontal one

and competitors will be removed. jennifer thank you for your time i appreciate it. "avengers" smashing the box office this year they have more big budget movies on the way in disney the numbers continue to make moves big off to get people off the couch and into the theaters. stay on your couch though if that's where you are two more minutes, we'll return right after this that's confident. but it's not kayak confident. kayak searches hundreds of travel sites to help me plan the best trip. so i'm more than confident. forgot me goggles. kayak. search one and done.

benjamin netanyahu addressing his country on primetime tv right now in what's being described as dramatic news regarding the nuclear agreement with iran. oil is spiking as you see there by about less than 2%. nbc news hans nichols is joining us now >> why iran has been lying since the 2015 joint comprehensive plan of action that's the iran deal that we hear from president trump. he's trying to present facts one question that we have and benjamin netanyahu is saying these are newly acquired documents and he's showing a bunch of binders and cds the question is when were those

acquired and what was the date on them. you see the israeli making a public case for president trump. let's listen in. i don't know if we have any sou sound byte in there yet but lets listen in. >> we have known for years that iran had a secret weapon program. we can now prove that their program was a comprehensive program to design and build and test nuclear weapons, project amad we can prove that iran is storing project amad materials to use a time of its choice to develop nuclear weapons. >> there are two parts of crucial information in terms of timing also, when you thoif what's happeni happening. secretary of state and he was in israel just over the weekend he's making it clear and unless this deal, this 2015 deal. the u.s. is going to pull out.

benjamin netanyahu's presentation today makes it easier for trump to pull out on may 12th you have to also think of the other aspects of what trump wants. he wants to expand the deal and he's open to stay in it as long as the deal is more expansive. what benjamin netanyahu is doing is criticizing the core deal or not the four pillars that we heard from emanuel macron when he was here at the white house last week. we'll watch for r his reaction at the state department. we have pompeo addressing at the state department and at the pentagon as well as the white house where we may be hearing from president trump on this project when he has a press conference later >> politics aside, hans, if the conclusion is based on facts and iran is lying about its program and it is not compliant and president trump decides to pull out from it, then what does that look like? what can we expect to happen next >> the short term you have the argument of the facts and chains

of custody this evidence that benjamin netanyahu is presenting is efficient enough for the europeans. the europeans need more intelligence than what the israeli is willing to present. you can make a case to increase sanctions and the deal and strengthen it and broaden it out a little bit more to those four pillars that's to have some sort of language there of what you do of ballistic missiles. the short term, we'll see quite a bit of volatility in large part we also don't have reaction from the trump administration, we could be getting that shortly. >> all right, we'll see what happens ahead of the key deadline of may 12th hans nichols visitors this summer are expected to eat crab cakes but turns out our industry is facing a lot of problem our ylan mui, what's the

problem. there is a shortage of workers of this season and that's the company in a pinch we'll tell you more when we come back once there was an organism so small

no one thought much of it at all. people said it just made a mess until exxonmobil scientists put it to the test. they thought someday it could become fuel and power our cars wouldn't that be cool? and that's why exxonmobil scientists think it's not small at all. energy lives here. feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow.

you set it. nasdaq. rewrite tomorrow. who's your first pick in the second round, we are going with disney >> maybe the deal will close

sometimes. >> why are you picking disney? >> we think it is going to be a major power house in the industry that they're already dominating and they're going to snatch customers from netflix. >> those were the stupts frdentm stevens tech they did pick disney and a decision that jim cramer was not enthusiastic about "gener "avengers," the biggest opening weekend, $258 million and it has not even opened in china yet let's dig into this historic box office event with our analyst.

>> great to be here. >> how hot is disney and what do they have for the beginning of the year, they have a lineup like today's yankees >> they are athe modern day equivalent of that we'll see over the next several years just incredible array of movies that bring people into the movie theaters certainly this performance, we are talking about, now $258 million that went up higher that had $250 million in north america. that's $10 million higher than the "force awakens." i didn't that that record would fall like you said without china even in the mix there this run up to "avengers:infinity war" was

incredible each of them doing well at the box office and critics loved it, too. you have "spider man" and "thor" a >> i thought people were not going to movies anymore and they were streaming and bingeing and all sort s of dooms and glooms for these studios. >> i have been doing this for 25 years and the dooms and glooms come about every other year. if the movies are good and people love going to the movie theaters certainly there is a lot of competition from the screen. people have to go out of the house and they go into a movie theater. if you went to a movie theater this weekend, you are in the communal environment and it is

electricity in the air and the fans are there what we call in the '60s are the happenings >> and the popcorn >> they're going to keep ongoing over the summer, it is going to be a strong summer this opening weekend, i didn't think -- on friday, the movie made $106 million. that used to be a great opening weekend, they made that in one day. that was the second biggest single day ever. >> what's the lasting power of a great opening weekend, in other words, if more people see it up front, does that mean fewer people see it later on and it evens out on the end >> a lot of these movies are front loaded because people are so excited to see them and they want to be able to see the virtual water cooler of the first weekend to check it out. on social media, this thing exploded we have a metric called preapp we measure the social media

conversations. 7.5 million conversations for "infinity war," 1.6 million conversations over the last week they have another month basically before "dead pool ii" opens before "hahn solo" so people are still going to the movie theaters i am not going to listen to that anymore. i think people are always going to want to go to theaters. >> paul, thank you very much >> big weekend >> thank you >> appreciate it >> we know maryland is famous for crab cakes, before you can make the crab cakes, someone have to actually pick the crabs. right now is the prime season but there is not enough workers. our ylan mui has the story >> reporter: these guys the

famous blue crabs. the season is in full spring and there is a bunch of crabs here in the markets there is not enough workers this year because of tighter restrictions on immigrations and that includes companies in a pinch. >> crabbers have worked the docks here for generations >> hauling in live crabs and to get the famous jumbo lump meat two dozen women from mexico pick it by hand the workers here, brian hall, says he was lucky to get the paper approved and there were so many applications, he had to enter a federal lottery. >> we got lucky. without them we would be out of business >> that's what happened just down the streets at russell hall where instead of cracking claws, all you can hear is the ticking

of the clock nobody is here harry phillips one the seafood plant but he's not sure how much longer this is the i >> this is the killer. we started the new building. we always got them in the past and right now that can almost jump over board because what am i going to do? >> now, all of this could send the price of jumbo lump crabs sending upwards. they do plan to increase the number next month. companies are going to worry it is going to be too little and too late >> if there is not anybody picking the crabs, are they going to mark it in shells like the ones you have in your hands? is there demand for that >> reporter: you can steam it

yourself or pick it yourselves if you choose. what we are hearing is the price of live crabs is going down because processers don't have any workers to do anything with them while you see the price of jumbo lump crab meat is going up, the price of these guys is falling >> we learned a lot there. >> crab picking and fascinating. president trump threatening to shut the government down this fall if he cannot get enough funding for the border wall. is that a winning strategy right before the midterm elections, speaking of the president, we are waiting for a news conference from trump and the nigerian president, we'll bring that you to live, stay tuned for leisure. so i go national, where i can choose any available upgrade in the aisle - without starting any conversations- -or paying any upcharges.

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the united states is currently working to expand trade and commercial ties with african nations including nigeria to create jobs and wealth in all of our countries. >> we hope to be the economic partner of choice and nation across the continent and all around the world and you see what's happening with respect to trade and the united states. we are being respected again i hope all african country and countries throughout the world that we'll also be supporting

you and they'll like wise support us along with canada and mexico for the 2026 world cup. we'll be watching closely and any help they could give us with that bid, we would appreciate it nigeria, one of our largest trading partners in the region, we look forward to trade and on reciprocity. >> we have already talken with the president about taking down to trade barriers. very substantial barriers with the united states trading with nigeria. president buhari taken several steps to fight corruption and improve the nigerian business

clima climate. most of all to me ripping down those straight barriers, these measures will make it easier for nigerian and the united states company to invest. we'll be investing substantially in nigeria if they can create that level of plain field that we have to very much ask for and maybe demand i especially want to thank president buhari in the fight of terrorism. he's been a real leader. niger nigeria has been one of the firstafrican nation to join th coalition to defeat isis and nigeria forces are currently leading regional efforts against isis and west africa and doing very well as we have nigeria is also leading african nations in the fight against boca wh boko haram and another ruthless

gerald owe jihadist groups. i made two great young women who were kidnapped by boko haram at the secondary school in nigeria. i was deeply moved by their inspiring stories of courage, resilience and survival. they really were, two amazing young women. i told joy and lydia of my administration is committed to combatting both jihadist terrorism and human trafficking and smuggling. there is more human trafficking than there has ever been if you can believe this th they use the internet almost as

bett better than anybody. there is more human trafficking and slavery than at any time in the history of this world. it is hard to believe. to protect americans, i have called on congress to close immigrations and loopholes that are exploited by terrorists. look at our southern border and our obsolete laws. they are absolute and pathetic there is no countries in the world that have laws like we do. >> they got the change and they got to change it now for the safety of our country. we are helping our nigerian

partners the first ever sale of american military equipment to nigeria. these new aircrafts will improve nigeria's amendment to target terrorists and protect civili s civilians. we are deeply concerned by religious violence in nigeria including the burning of churches and the killing as and persecutions of christians it is a horrible story we encourage nigeria and the federal state and local leaders to do everything in their power to immediately secure the affected communities and protect innocent civilians of all phase including muslims and christians mr. president, thank you again for visiting the white house and being with us today. nigeria is a valued partner and a good friend. i look forward to working with you to deepen our cooperation and for a closer partnership

the united states is committed to working alongside nigeria as we seek a future of strength, prosperity and peace for both of our countries. mr. president, thank you. >> reporter: mu thank you >> mr. president of the united states of america, ladies and gentlemen of the media it has been a pleasure and honor to visit washington, d.c. and the kind presentation of donald trump. nigeria and the united stat states -- our two countries maintain a strategic partnership

for peace and security resolutions as well as a global fight against terrorism. we also share common features and committed to the values and fundamentals of our human rights and freedoms, social justice and the rule of law. president trump and his team and myself and the nigerian team discussed issues related to security, trade, governance and human rights and humanitarian crisis we congratulated the leader of the north and south korea on the historic day we applaud them for what they

have made towards the denuclearization president trump deserves a great deal of credit we also congratulated the united states government on the importance role to play in the defeat of isis although some of the remanence have found their way to the region we appreciate very much the united states agreement -- to effectively fight terrorism.

the federal government has adopted an approach involving related government agencies to ensure the damages, maintaining a low and order. as part of our efforts to address this in the country, the nigerian military adopted counter terrorism in code named, operation save corridor to deregulate and -- >> this program is currently embarking on a number of

projects including integrity and the greenhouse department and among others a number of international partners including the organization organization for migration, have contributed to the success of operation safe corridor we indicated that we would appreciate whatever support we could also get from the united states we express gratitude to the united states' support in the reconstruction and rehabilitation efforts in the northeast of nigeria as well as humanitarian assistance to the internally displaced persons through agencies such as the united states agency for international development and other international partners the united states of america has been, to date, the biggest contributor to the humanitarian

response and last year gave approximately $500 million united states in cash and in kind contributions through the united nations and other intergovernmental organizations. these have mainly supported protection activities, health, food assistance, and shelter we are doing all we can to secure the release of the remaining abducted schoolgirls fr in this context, we will continue to welcome united states collaboration in intelligence gathering, hostage negotiations, and information sharing. the government is taking necessary steps to promote the peaceful coexistence of herdsman and farmers by focusing on boosting security and enforcing legislation that will guarantee

borders and farmers' access to land i extend sincere congratulations to president trump and his government on the impressive performance of the united states economy under his watch. our aim is to diversify our own economy by focusing on agriculture and food security, power and infrastructure we have cut the importation of rice by 90%, thereby saving a significant amount of money. we very much welcome increased united states investment in nigerian economy, especially the non-oil sector economic relations between the united states and nigeria are -- on several instruments, mainly the binational commission, trade and investment framework agreement, and the africa growth and opportunity act.

the binational commission in particular, compromising bilateral political economy, developmental, and humanitarian partnership is a basic economic framework for engagement between our two countries. nigeria's trade with the united states stood at $6.70 billion according to 2016 statistics and compromised $4.76 billion also of nigerian export to the united states and $1.894 billion exports to nigeria we urge greater effort to increase these figures substantially. we thank the united states government very much for cooperation we have received in our effort to recover stolen funds. our two governments have put the

machinery in place for their respective attorney generals to collaborate in ensuring the return to nigeria of over $500 million of looted funds siphoned away in banks around the world. in this connection, we congratulate the united states government on launching an asset recovery initiative which was spear headed by the united states department of justice asset forfeiture and money landering. we hope that we can continue to count on united states support in this area the government of nigeria remains deeply committed to the principles of human rights as well as promotion and protection of people's freedom, even in the process of fighting terror we commit to ensure that all documented cases of human rights

abuses are investigated and those responsible for violation held responsible i thank you very much for listening. >> thank you, mr. president. thank you very much. thank you, sir steve miller of the "washington times," please "washington times. thank you, steve >> thank you, mr. president. i had a two-parter on immigration. last week, in the supreme court case over your travel ban, the lawyers for the opponents said that if you would simply apologize for some of your rhetoric during the campaign, the whole case would go away and i was wondering -- >> i don't think it would, number one and there's no reason to apologize. our immigration laws in this country are a total disaster they are laughed at all over the world. they are laughed at for their stupidity and we have to have

strong immigration laws, so i think if i apologize, it wouldn't make ten cents worth of difference to them there's nothing to apologize for. we have to have strong immigration laws to protect our country. >> and looking to the future, the caravan has arrived at the u.s. border. >> we've been watching it. we've been watching it >> and i'm just wondering, in your opinion, or your estimation, what percentage of those people do you believe are deserving of asylum in the u.s.? >> i won't get into percentages but we are a nation of laws. we have to have borders. we don't have borders, we don't have a country, and i've been watching for weeks as the caravan came up, and you know the mexican laws are very tough on immigration, extremely tough, and it started out with way over 1,000 people i guess now it's down to about 100 going all through mexico people don't realize what a big country mexico is, but it came down by a lot, and now we're working on the border with the worst laws any country, no

matter where you go, all over the world, they can't even believe it, and we're doing the best we can with it. but we have to have changes in congress, and we have to have it quickly. we need a wall, number one, and you see that right now you know, where they are, even though it's not a particularly good wall, and even though a small percentage can climb to the top, they have to be in extremely good shape, but a small percentage can climb that particular wall. we have a wall that's much more difficult. but if you didn't have that, you'd have thousands of people just pouring into our country. you got to have a wall and we need border security, and we will have border security as you know, we're sending many, many national guardsmen down to the border, most of them are already there. and that's having a big impact but we need a change in the law. catch and release is ridiculous. if they touch our property, if they touch our country, essentially you catch them and you release them into our

country, that's not acceptable to anybody so we need a change in the law >> mr. president, when you were sitting down in the oval office with president trump, who ran on not wanting to be the policeman for the world, what kind of arguments did you make to convince him to continue a military presence for the u.s. in your country and what arguments did you make to him? how receptive was he >> they send a training team based on their experiences to train our officers at some of our training institutions and move to the area to see how well the trainees are performing. i think this is one of the best things the united states could do for us to stabilize the country. >> and he agreed with that >> i do very much so that's why i thank him for it. >> thank you >> well, we more and more are -- because it's a very fair

question we more and more are not wanting to be the policemen of the world, and we're spending tremendous amounts of money for decades on policing the world, and that shouldn't be our priority we want to police ourselves and we want to rebuild our country and the president understands that and they've come a long way. they're doing a great job. we're contributing to that job, but they have done a great job what we do want to do, though, is open nigeria and other countries up to trade, because we have spent over the last decade a number that's so large you wouldn't even believe it and i think we'll be treated in a reciprocal fashion now as of today, so i think that's going to happen and i have great respect for the president, okay? how about jordan fabian. where's jordan jordan, "the hill. >> thank you that you know, mr. president thank you. i want to ask you about iran,

the israeli prime minister just gave a speech very critical of their nuclear program. i want to ask if you have made up your mind to pull out of that deal and if you do pull out of that deal, are you worried that sends the wrong message to north korea as you seek to enter nuclear talks with kim jong-un >> no, i think it sends the right message. you know, in seven years, that deal will have expired and iran is free to go ahead and create nuclear weapons. that's not acceptable. seven years is tomorrow. that's not acceptable. so, no, if anything, it's proven right, what israel has done today with the news conference, and prime minister netanyahu just gave a very, i don't know if everybody's seen it, but i got to see a little bit of it, and that is just not an acceptable situation and i've been saying that's happening. they're not sitting back idly. they're setting off missiles, which they say are for television purposes. i don't think so so, we'll see what happens i'm not telling you what i'm

doing but a lot of people think they know, and on or before the 12th, we'll make a decision. that doesn't mean we won't negotiate a real agreement you know, this is an agreement that wasn't approved by too many people and it's a horrible agreement for the united states, including the fact, mr. president, that we gave iran $150 billion and $1.8 billion in cash nigeria would like some of that. $1.8 billion in cash and $150 billion you know what we got we got nothing we got nothing so, that doesn't mean i wouldn't negotiate a new agreement. we'll see what happens but i think if anything, what's happening today and what's happened over the last little while and what we've learned has really shown that i've been 100% right. >> president buhari, i want to ask you, you're the first leader from sub saharan africa to visit president trump here at the white house. did you address his reported

comments from earlier this year when he reportedly used vulgar comments to describe african nations? >> well, i'm very careful with what the press says about other than myself. i'm not sure about, you know, the validity or whether that allegation, i guess, the president was true or not, so the best thing for me is to keep quiet. >> we didn't discuss it. and you do have some countries that are in very bad shape and very tough places to live in but we didn't discuss it because the president knows me, and he knows where i'm coming from, and i appreciate that. we did not discuss it. mr. president, you can ask a question >> yes, that lady's already up >> thank you, mr. president. my name is julianna.

mr. president trump, i would like to know, nigeria is in dire need of the aircraft to tackle the problem back home. will you be kind enough to release at least two before 2020 to enable the country to tackle the situation in the country, and how soon will you be visiting nigeria >> well, i would like to visit nigeria. i'd like very much to visit nigeria. it's an amazing country and in certain ways, i hear from the standpoint of the beauty of a country, there's no country more beautiful. so i would like to and the first part of your question, i couldn't hear what you were saying. go ahead >> the helicopters >> oh, helicopters oh, oh, we love helicopters. he likes them more than i do he likes buying helicopters and they're buying a lot of helicopters. >> we want to know how soon you will be releasing them >> very soon we're getting it approved. part of the problem was that you weren't allowed to buy

helicopters in our country and now you are. i worked that out so that now you can buy the helicopters that you want they weren't allowed to buy the helicopters in our country for various reasons which, frankly, were not good reasons, but now, they get them and they get them very quickly and they are the best helicopters anywhere in the world. we make the best military equipment in the world and our friends can now buy that equipment. mr. president? >> thank you very much >> i had you havedid you have a the president? >> my question is to president trump. the fight against our corruption is one of the major achievements that the nigerian government has presented to the world, and the records show that the united states of america is one of the major destination countries of illicit fund and assets from nigeria. to what extent did you discuss the need to repatriot these funds back to nigeria to fund critical infrastructure, to cut down funding for terrorism, and also to reduce illegal

immigration from nigeria to your country? >> yes, we have actually discussed all of those topics at length over the last period of time, and in terms of corruption, nigeria has a reputation, as you understand very well, for very massive corruption i also know that the president has been able to cut that down very substantially we talked about it he is working on it, and they have made a lot of progress, and i think they will continue to make a lot of progress we have a lot of people in this country and, frankly, the country itself, that invests in nigeria, so cutting down on that corruption element and a corrupt element is very important to us. and the president will be able to do that >> president buhari -- to president buhari, the united states import of crude oil from nigeria has considerably gone down did you discuss the need for the

u.s. to increase this imports of crude oil from nigeria >> no. i can't tell the united states what to do but luckily for us, we have got market for our crude oil elsewhere, but the progress made by united states in technology is largely -- is certainly for us a model economy i hope the technology will allow them to use our crude for its quality for petrochemicals vis-a-vis -- thank you >> i think maybe more than anything else, what we discussed today was our agricultural products going into nigeria, which nigeria wants, but we have certain barriers that don't allow that to happen, so for the good of our farmers, u.s. farmers, and for the good of nigeria and all of africa, it's very important that we are able to sell our great agricultural

products into nigeria, and that will happen, and we're going to be working on that right away. okay thank you all very much. thank you, everybody >> president donald trump wrapping up his news conference there with the president of nigeria, talking trade policy, eliminating some barriers, aid to nigeria, immigration policy >> including singapore, and we are also talking about the possibility of the dmz peace house, freedom house, and there's something that i thought was intriguing i think that some people maybe don't like the look of that, and some people like it very much. i threw it out today as an idea. i also told president moon and through president moon, we connected with north korea there's something that i like about it, because you're there you're actually there.

where if things work out, there's a great celebration to be had on the site, not in a third party country. so, we are looking at the possibility of doing it in that location we're also looking at various other countries, including singapore. i will say this. the good news, everybody wants us it has the chance to be a big event, and the united states, i was talking to john bolton about this a little while ago, the united states has never been closer to potentially having somethinghappen with respect t the korean peninsula that can get rid of the nuclear weapons, can create so many good things, so many positive things, and peace and safety for the world so, we'll see what happens you know, i often say, who knows. who knows. maybe a lot of things change, but kim jong-un, who has been very open and very straightforward so far -- i can only say, again, so far, but

he's talking about getting rid of the site, which was their big site he's talking about no research, no launching of ballistic missiles, no nuclear testing, and he has lived up to that for a long period of time, longer period of time than anybody has seen so we are looking at that as a potential site, yes. i think it would be very interesting. i think it would be a great celebration if it works out well and if it doesn't work out well, that's the way it goes >> are you still confident the summit will happen is there anything that -- >> oh, yeah, i think the summit's going to happen they very much want it we certainly would like to see it i think the summit will happen and personally i think it's going to be a success, but we'll see. i will say this. if it's not a success, if it's not a success -- got to get rid of the nuclear weapons if it's not a success, i will respectfully leave it's very simple thank you all very much. thank you. >> have you narrowed down a time frame, mr. president

>> and now it looks like he's done guess the president was in the mood to take a few more questions there from reporters talking about the potential u.s./north korea summit. says singapore's under consideration, so is the peace house in north korea let's go to amon at the white house. number of headlines made there on foreign policy, including on iran. >> reporter: absolutely, sarah you see the president there very confident, happy to take a few extra questions, breaking the script a little bit in order to do that. but you're right, a wide ranging press conference and really shows this president's different approach to the world than what we've seen from his predecessors, particularly i was struck by two moments, one, when he talked about the united states bid for the world cup of all things and he mentioned that he's going to be watching very carefully how african nations weigh in on that and who they support for the world cup, in essence saying that he wants their support, lobbying with the president of nigeria at his side and also suggesting that he wants trade barriers in nigeria for american companies to be lifted so that the u.s. can do

more business in nigeria and citing the american payment of what he said was more than $1 billion a year in aid to nigeria and saying, i think we're owed that from the nigerian side. so, those two elements give you a sense of the president as a negotiator here, pushing for what he sees as american interests. and i think the other headline here that's going to come out of this is the nigerian president's mention of his skepticism of the media in terms of the president's reported remark earlier this year, using crude language to refer to african nations, among other nations the nigerian president said he simply doesn't trust or know what to believe about the president's remarks as reported by the media, so he said the best thing for me is to remain quiet. i think that will get a lot of attention as well. >> all right, amon, thank you. >> you bet we have a guest in the house. his name is john harwood hi, john you just watched what the president said i think one of the other things that came up there that was very interesting, in light of within

the hour, news that president netanyahu of -- prime minister netanyahu of israel is holding a, basically, a show and tell, describing what he describes as lying and cheating on behalf of the iranians with respect to the nuclear deal, it's -- when president trump was asked about it, it certainly sounded to me as though he has made up his decision to walk away from that deal and potentially negotiate something down the road. did you feel that way? >> yes i heard it the same way. and it was interesting that he said it in response to a question about whether it was a wise thing to do in advance of the summit with kim jong-un in north korea, and the question was, why should -- does it give you any pause to pull out of the deal because you're going to, then, try to strike a new deal with north korea and he said, absolutely not, it confirms my approach so, that was a double lean into the idea -- >> he said it would not send the

wrong message. >> exactly >> pulling out of deal to north korea. >> exactly now, he did say he hadn't made up his mind so we don't know, but i think prime minister netanyahu was pretty skillful today about trying to get in the last word, you know -- this president's famous for responding to the people who lobby him the last last week, you had emmanuel macron, angela merkel, both in washington trying to convince him to stay in the deal, and they had a joint event in the last couple of days saying, we're going to try to sustain this deal, and netanyahu just went over the top and made a strong appeal to the president to get out so, if the president takes that attitude, i don't think anybody's going to be surprised at this point. >> president, over the weekend, avoided the white house voe correspondents dinner. were you there what did you think >> it has created such an uproar, which we in the media tend to do we like to create uproar and talk about it. >> which we're doing now >> that is one of the problems

we like to talk about ourselves. we like to celebrate ourselves and personally, a lot of the talk is about the comedian i don't think the problem with the dinner is the comedian i think the problem with the dinner is the dinner, and the tuxes and the limos and the parties and the self-celebration that the media engages in, to me, that has made this ripe for extinction for years, long before this president was in office now that this president is in office, he has a negative feeling toward the press a lot of the press has a negative feeling toward him, so all of the things -- that is on top of all the things that were already wrong with this dinner so i don't know what's going to happen, but i suspect that there is either going to be a dramatic reshaping of that event or an abandonment and that would not break my heart one bit >> it is described as the nerd prom, right? among those -- among us nerds. >> and we had a lot of nerds

there. cnbc had a couple of tables of nerds. >> whatever you think of the president's wanting to attend it, not wanting to attend it, by going to michigan and being surrounded by people who are strong supporters of him, he reinforces with that constituency the idea that he is, a, anti-establishment, b, anti-elite because that's -- >> and likes to counterprogram >> and brilliant counterprogramming >> i don't think those people need convincing that he is anti-elite and anti-establishment but nevertheless, he did make that point. >> he did make that point. john, good to see you. >> you bet we will get a check on the markets here we've got the s&p 500 just about a point or so off the session lows the values there down by 66.5 points we'll talk mark-ups and much more straight ahd. there's nothing small about your business. with dell small business technology advisors you get the one-on-one partnership you need to grow your business. the dell vostro 15 laptop. contact a dell advisor today.

so what else is new? humm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird.

markets taking a bigger drop in just the past few minutes we're around session lows right now, 3 or 4 points off the session lows on the s&p 500. let's get to bob and mike we've lost about 190 points in the dow from peak to trough, bob. >> yeah, i think there's a problem developing you know, we've had this fight about the peak earnings for weeks now. i think peak earnings is a little bit of a bogus argument because at 16 times forward earnings, if you're getting still global growth, peak -- you

can be fine right now. earnings could slow a little bit and the market will be fine, but it's combining with another argument now, the slowing growth argument, the global growth is slowing a little bit we have higher rates there's that sort of whiff to the stagflation thing, even though a lot of people aren't using that so combine peak earnings with slowing global growth and higher earnings, now you have a much more potent argument than people who are saying, oh, the earnings are peaking this quarter >> you're a little bit stuck between not being sure of what to be afraid of. an acceleration in growth that maybe gets rates going a little faster and maybe gets the fed more excited to hike more, or a slowdown, which of course brings those earnings growth rates into question i think this morning's rally was very tentative in general. this earnings season, you know, you've been going sideways during the season, not rewarding these very gaudy profit growth numbers, and i think it hasn't penalized everybody for sitting it out >> that's what you're seeing every day. >> everyone who argues, oh, we're not moving on earnings,

it's true since jpmorgan started on april 13th, but you go back to fourth quarter of last year, we moved almost 20% from october to the peak in january there was the rally. look at that rally we just moved jgigantically, moved up amazingly 16% gain and then we got hit on the higher rate story in early february and now we've been consolidating in a range we're there, folks we had gains based on the great earnings numbers already >> right, so valuation of the market peaked the day the tax cut passed >> mike, impact wanted to know r acti reaction there are some companies being rewarded look at mcdonald's, shooting higher, 5.5%, incredible for a company like mcdonald's right now. boeing did nicely, amazon did nicely and it was rewarded for that so what did we learn do you have to do the trifecta? what is it >> not to say you have to have a

flawless quarter but it has to be basically without many misgivings about how the next couple of quarters are going and you have to show momentum. i think that's the key thing it's not just we brintprinted aa number and we're going to rest on those laurels it's a very bifurcated market. the market's kind of weeding out the stronger from the weaker >> all right guys, good to see you. thank you, bob, mike all righty strong earnings growing economy and deals, deals, deals. so why aren't the markets rallying look at the dow, down 55 let's bring in brian, chief investment strategist and michael, portfolio manager with manulife asset management. brian, michael, welcome. good to have you with us why is the market seemingly not respecting good numbers and good economic news the way one might expect was the rally all already priced in >> no, i don't think so.

good afternoon, by the way i think sarah eisen did a really good job talking about stocks. we're shifting from a market and index driven stock market to a stock by stock market, and we continue to believe that investors are just really, really struggling, tyler, with this whole notion of fundamental investing. even mr. santoli, who's been in the markets for a long time, he's talking about earnings momentum and screening mechanisms we're going back to fundamentals and boeing's got great fundamentals, great management, great marketplace. same thing with amazon and netflix. we saw what's happened with apple. we've seen what's happened in the financials in terms of great business models going forward but also paying bigger and bigger dividends this is a stock by stock market so again, i think that the market's going to probably take a little bit of a pause because people are having a hard time transitioning into fundamental investing but at the end of the day, our view has not changed. fundamentals look great and the market participants just have to slowly, slowly try to figure it out. >> michael, what is your

perspective on this? we, i think, hear from the fed later this week. no expectation of a rate hike then but interest rates have been rising. >> yeah, so i agree with a lot of what was just said, and i think one thing to keep in mind is that the earnings season is still not over and you're still in an environment where on the retail side, you know, have had net outflows coming out of equities the last couple weeks you have these blackout periods where companies can't be buying back their stock and they are the biggest buyer of stocks out there with the s&p set to have a 3% net buyback this year >> so, brian, where should we be in the market? from peaks, the price in the s&p 500 has gone down by about 7%. forward pes have come down by 11%. should we be trading at where we are? is the market saying this is where we should be right now, we've gotten the good earnings and we're reflecting in the market and this is what the forward pe is or should it have been the peak forward pe and we need to get back to that >> it's a great question, melissa, and i would say that so

much pe analysis is based on what the trailing pe was and i think the forward pe is going to be the biggest issue that people are going to have a hard time understanding. in fact, we think the market has 10% price upside but earnings are going to be in the 15% to 18%. if you do the math and look at how that works from a formal leg standpoint, multiples are going to go down this year so i think it's dangerous saying the market's all priced in you have to see how earnings continue to drive this market. again, we firmly believe that investors have no clue what's happening in terms of this multiple compression type of market and sure, the markets we think have run clearly, but i think the biggest misnomer is that we believe the tax cuts weren't fully realized from investors until mid-december when the final announcement came in and then had a very strong six weeks that people had rushed to fall into stocks. the other guest made an excellent point. we had net outflows from equities in 2017 we still think the participation low, the participation level, i'm sorry, has been very low from investors >> yeah and then you have this

creeping threat of rising interest rates it hasn't been talked about that much today but the fed's preferred measure of inflation came out it's pretty much where the fed wants it, at the target, just below 2%, michael. what's the risk of higher interest rates and which stocks do you want to stay out of if we continue to see that >> i still think it's very likely that interest rates continue to trend higher throughout the year. i think if you look at the futures right now, it looks like there's two more fed hikes priced in for the year i think we're likely to get that and maybe we get a third thrown into the mix as well most of the pain, thus far this year, throughout the earnings season, you've seen it in what you would view as the sectors that would be hard hit in a rising interest rate environment and that would be a sector like consumer staples so that's a sector that we're currently underweight. >> michael, thank you very much. and brian has left us. we thank him as well >> with a little beeping noise >> that beeping noise says the signal went down >> that's what happens wherever he goes, apparently. the burger battle is on as mcdonald's reports a blowout

quarter while its rivals keep up and what stock should you bite into the cautious tone is getting louder another analyst will join us straight ahead (baby crying) ♪ ♪ don't juggle your home life and work life without it. ♪ ♪ and don't forget who you're really working for without it. ♪ ♪ funding to help grow your business... ♪ ♪ another way we have your back. ♪ ♪ the powerful backing of american express. don't do business without it.

let's get straight to jackie >> take a look at shares of twitter. you can see they're popping more than 4% right now. this is after an announcement that disney and twitter will be working together on a new live content and advertising agreement, so this is the disney portfolio across the twitter platform, and as a matter of fact, twitter and disney's espn, they're going to announce specific live shows in development later today and this week as well, guys back to you. >> interesting partnership and certainly twitter on the move. jackie, thank you. mcdonald's is also on the move higher. delivering a first quarter pounder earnings beat. investors are loving it. shares up more than 4% right now and on pace for their best day in a year. are the golden arches the best bet right now or is one of the competitors poised for a new breakout let's bring in peter from btig whose top pick is mcdonald's and nick, his top picks are wendy's and jack in the box. peter, i'll start with you

what is steve easterbrook doing that is setting mcdonald's so far ahead of not just the restaurant companies but the big consumer staples as well >> i think they're changing the remodels on the stores they're making them much nicer stores they're adding digital to the stores they're adding fresh beef. they're layering in value as well so that value platform just launched earlier this year so you're seeing them make a lot of change within the four walls of the restaurants, really elevating the brand all around and i think they're bringing in lapsed customers that weren't there previously and i think you're going to see them continue to take market share. you've seen nine of the last ten quarters, mcdonald's has taken the share. i think that continues and you've seen historically when mcdonald's starts to take share, the regional competitors are the ones that suffer the most but they take share from just about everybody. >> do you agree that this quarter does not bode well from the mcdonald's competitors and that it's not like the fast food business is all of a sudden experiencing some surge? it's that mcdonald's is taking

share? >> i disagree. here's why we've seen mcdonald's take share to peter's point for a number of quarters in a row but we've seen qsr across the entire category, whether it's the pizza guys or the chicken guys or the taco guys and in fact, the competitor burger guys have done very well as well so we've seen that qsr category outperform relative to some of the other categories over the past few quarters i don't see that changing. you know, i think some of the drivers that are impacting the regional guys like jack in the box are company specific and they're being addressed. and so, you know, going forward, based on my checks, at least, i think both wendy's and jack in the box are going to be fine >> it's a case of a rising boat lifts all tides. >> where is the money coming from if everybody is gaining, right? somebody must be losing or bringing in that incremental customer who might have eaten at home or elsewhere. >> there's two things going on

last year, we saw for the first time that lower income consumer, the income growth, start to outpace the middle and higher income demographic, so arguably, the pie for the first time in many, many years, is starting to expand and then two, the fast casual category, the chipotles and panera of the world, they've started to reverse some of their gains, so as the qsr category reaches up by improving quality, et cetera, they're able to get some of that share back that they've lost over the past decade and a half. >> you know, i mean, i think there's thought out there that maybe the tax breaks are starting to help folks a little bit on the lower end i think last year, we did see some of the lower end consumer pull back a little bit and now they're starting to come back into the market somewhat so we are seeing a little bit of a rising tide lifts all boats. you've seen multiple companies talk about an improving same store sales trend from january to february to march

the last six months for restaurants has been the best we've seen since 2015. we've seen an improvement. >> when you say mcdonald's is leaning into digital, what does that mean for the customer experience that i don't deal with a human being? what >> i think that's one aspect the other, they're rolling out these kiosks ordering in their stores, walk in, you go to a kiosk, order from the -- >> they have those in europe >> and a lot in the u.s. as well i think in the next couple years, a lot of restaurants will have them. in rising inflation, it does help >> i don't like the kiosks they have them at the airports i think they're dirty. >> you don't like touching the screen >> think about that. >> but there's less room for error on your order. >> i guess so. >> they have them all at the airports >> we'll leave it there, peter i know you have a $200 target on the stock. and nick, good to see you as well >> thank you we are live at the milken conference with the ceo ofern et

& young. plus, sliced apple one analyst slashing his estimates ahead of that company's earnings tomorrow. he'll tell us what he sees and why there is still a bright spot for investors. an organism so small no one thought much of it at all. people said it just made a mess until exxonmobil scientists put it to the test. they thought someday it could become fuel and power our cars wouldn't that be cool? and that's why exxonmobil scientists think it's not small at all. energy lives here.

hello, everyone. i'm sue herera here's your cnbc news update israeli prime minister netanyahu says iran has lied about not pursuing nuclear weapons and had continued to persevere and expand its nuclear weapons knowledge after signing the 2015 deal with global powers. >> we've known for years that iran had a secret nuclear weapons program called project amad these files conclusively prove that iran is brazenly lying when it says it never had a nuclear weapons program. >> thousands in moscow rally to call for internet freedom. this after russian authorities began blocking popular messaging app telegram over its refusal to hand over keys to its data encryption the app promised to keep

running, despite the ban and listen to this one a cow with a beef with law enforcement chased down a texas police deputy last week. that's dash cam video which shows the cow chasing the deputy around his patrol car before eventually running off into a field. it gives new meaning to the term stakeout, which is no bull and eventually the cow moo'd on. back to you guys >> very clever that's good. and scary at the same time sue, thank you >> you got it. the oil market closing just moments ago. let's go straight to jackie at the cnbc commodity desk. >> well, we closed at $68.57 but crude oil hitting multiyear highs on the heels of a speech by israeli pm netanyahu. that was at the ministry of defense in tel aviv and crude oil crossing $69 he says he's got proof that iran has a secret nuclear weapons program, one not for peaceful purposes this is coming right ahead of

the may 12th deadline where president trump must decide whether to continue sanctions. we watched iranian oil come back online it had a hand in depressing prices if the same supply came offline, it would certainly boost them even higher from here. >> all right, jackie, change is something corporate leaders deal with every day but the change of pace unprecedented with automation today cnbc's senior correspondent is at the milken conference in los angeles with someone who has a strategy on succeeding in this age of disruption. great to see you >> hey, great to see you guys as well hello to the "power lunch" team from los angeles his you guys mark weinberger is chair of ey but also the head of the finance committee for the business round table. you wear a lot of hats before we get to ey stuff and what tyler tossed to us with, i want to talk about the brt, the

business round table lot of criticism on the corporate tax reform plan. companies are going to only use the money for buybacks they're not going to raise wages or spend money on capital spending you have direct evidence that is not happening and companies are investing, correct >> yeah. this is a landmark deal that structurally changes the tax code it's not just about next quarter, not about a lower rate. it's allowing corporations to bring back their capital from overseas, which they've done it's then allowing them to invest it in plant equipment to increase productivity, pay more wages, hire more people. but it takes time. because you got to put these plans in place and then you got to execute them, so i think you're going to really see the full effect and the increase in productivity of the investment in these people and jobs you've already heard 200 or 300 companies announce they're going to be doing this but the real payoff won't be for six months or a year from now you haven't seen a whole line of companies moving overseas, which is what this was trying to stop from happening before, and you

are seeing increased liquidity, leading to more deal work and efficient capital flowing where it needs to be >> bottom line, you believe the critics will be proven wrong and that it won't just be lining executives' pockets and doing bigger buybacks to benefit shareholders that real wages and real investment will go up. >> there is no doubt in my mind that on the margin, it is much more profitable to invest in the united states today than it was before that will lead to increase investment, because the money will follow where the profit is, increase growth and productivity over the longer term in the short-term, you are seeing buybacks but that's because they don't have the plans in place yet to redo their supply chains. >> it's a holding spot in a way, they don't want to do nothing with their money in the short-term >> in some ways, maybe it's profitable to buy back your stock today because it's undervalued relative to the market you can't put the plant and equipment into place but longer term, you are going to see increase in investment, increase in wages. >> while you're here at the milken conference, you got a

panel talking about the future of work effectively. i think it may be the issue that defines the next decade. >> absolutely. >> are all these people here going to be automated out of a job and not just truck drivers i'm talking about thought leaders, lawyers, are we going to automate ourselves out of a job? >> no. here's -- this is a tough question there will be a lot of displacement this is going to be tough as we go through transition like every other industrial revolution, but what's changing our tasks, not jobs, so we have a quarter of a million people around the world. we are going to hire 65,000 people this year, lose 40,000, who will go off in industry, academia, something else we have 1,700 robots those robots are not -- >> wait a minute back up there, mark. what do you mean you have 1,700 robots i'm picturing rosie. >> it's not the will smith kind of robots. >> danger, will robinson >> right those are bots and they help our people to do tasks that you can do repetitively over and over

again more efficiently so that's more looking at contracts and finding employee information loading up billing and different things like that we have drones that do inventory for audits around the world. that frees up our people to focus more on judgment calls, judgment issues, things they have to think about more, that humans will always be needed for. so you're going see some of these tasks go away, and you will see jobs change dramatically one example -- >> there's a big backlash with tech and robots and a.i. and automation >> and you can't ignore that because that's what gave us the social unrest we've seen in the elections not only in the u.s. but around the world when you have people that used to be in a factory, now they're controlling robots, that's a different skill set. we need to talk about reskilling but the jobs will be there but we got to get them reskilled >> mark, it was a real pleasure. thank you very much for joining us here. guys, little optimism. we're adding jobs and wages and tyler, max headroom is not coming for you yet >> i hope not. brian, thank you very much great to see you >> we all hope not >> no. thanks again

the world health care conference taking place in washington, d.c., today. berthasitting down with the woman who runs medicare. bertha >> yeah, seema, the administrator for medicare and medicaid services. she was here talking about proposals that the administration proposed just- week that are really trying to get health care beyond that last mile of getting interoperability the administration proposed requiring hospitals to post their prices online, also requiring them to be able to send files when someone leaves the hospital to their primary care doctor electronically, and being able to have patients own their data and get access to their files. she says this is something that is key for the administration now. >> we know that interoperability is already working if you're within a health care system, we know that records are

already being shared within the health care system, so you know, we're going to pursue making sure that patients have their data no matter where they go on the issue of price transparency, we know that any other place in the economy, you can know what things are going to cost, but snou health caomehh care, it's a big mystery we're not given that information on the front end it's very difficult to understand >> that transparency in health care is often considered sort of the last frontier, one of the things that they're trying to breakthrough the other thing that the administration is very keen on is on drug pricing she wouldn't really drop any news about proposals, but a week from tomorrow, the administration is expected to unveil their new proposals to try to combat high drug prices back over to you >> all right, bertha, thank you. bertha in washington for us. we're getting some more insight into what to expect from apple's earnings tomorrow. tim long's had a buy rating since he initiated coverage in 2015 that is until he downgraded the

stock to neutral at the end of january. shares have been relatively flat, down 1% since then well, tim is now out with a new note, lowering iphone expectations before apple's earnings tomorrow. tim, great to have you with us >> thanks for having with me >> you also say that for the june quarter, revenue will be well below consensus where are the shortfalls going to be for that quarter >> yeah, we're mostly talking iphone weakness here it's been pretty well telegraphed if you're watching the supply chain that the -- there have been order cuts and looks like demand is weaker for the iphone x than it originally came out of the gate or late last year, so we are thinking that this is really about price elasticity the company has gone up, well publicized above the $1,000 price point and we think it's just not selling that well, so we're going to see that impact the next few quarters here >> you know what really stood out to me in your note, tim, is

the line that you said, additionally, we believe consumers are satisfied to hold on to their smart phones for longer and we had all been thinking that perhaps a smartphone cycle would be elongated but if this is, in fact, the case, what you believe is actually come true, shouldn't apple just demand a lower multiple than where it has traded historically because the metrics of that cycle have been flattened. >> that's what we're concerned about, hence the market performed rating here. i would say, you know, two things are going on. number one, they're probably not gaining enough new subscribers anymore as the market has somewhat saturate and had you're right, when you talk about the average life of holding a phone, it archverages to about 2.5 yeas other phones are 2.7 or even 3 years. so, whether it's fixing your battery or just extending the life or putting new apps on the phone, there's a lot of value to that device, so upgrading it is something that's happening less

frequently now, and that could result in a few years of more flattish type iphone units and without that growth, it's a little tougher to demand the higher multiple. >> i wonder, too, how the pricing model changes that have happened over the past three or four years have affected cell phone sales, broadly it used to be the phones were heavily subsidized by the carriers, you agreed to a two-year commitment and you got it for $199 or whatever the heck it was now you are really renting to buy, and i wonder whether that figures in there somehow, where i'm -- the cost transparency is very much clearer to me, and that may hold me -- cause me to hold on to my existing phone longer >> yeah, i think that's a good point. if you think back before the iphone, we would see subsidies for smart phones in the $100 or $200 range when apple came out with the

iphone, we were looking at $400 or $500 subsidies so there was a real transfer in value from the service providers over to apple and that seems to be moving back the other way a little bit so i think consumers now, they might be in a program where they have forced upgrades every year, every two years, every three years based on the agreement they strike, but it certainly does -- the price was hidden from consumers for a very long time >> tim, i get that you're worried about the core business and maybe some slowing growth in their main category, but what about the cash pile? now they have a chance to repatriate all those foreign earnings, bring back cash. the possibilities are endless. don't long-term investors really get excited thinking about m&a, cash return to shareholders? could that put a floor under the stock even though you're concerned about some of the issues with the iphone >> yeah, i think so. i think that's why i wouldn't want to get too negative on the shares here. we're looking at $160 billion

cash balance right now and they're generating $50 billion or so in free cash per year. they haven't been very inquisitive in the past so we're mostly assuming that when we hear tomorrow about the new capital return program, we'll l, modelling 50% this year and next, and the company may talk about getting that balance to 0 over the next two years or so, so we're assuming, call it a $200 billion buyback in the next few years. that's embedded in the model at this point, maybe others don't have it in there, but it should be soon. it is positive, but typically this stock has more been a function of the product cycle and success of the new products. >> tim, thank you. tim long >> caller: thanks for having me. >> $166 price target, a dollar higher than where apple is trading now. square rallied 165% in the last year, but are there signs of weakness in the past month and today as well.

rngsephey deliver in the eain rort this week? we'll debate that next

we want to head back out to the milken conference with david faber, and, david, i can only guess what you talked about. >> reporter: well, yeah, we were talking about antitrust policies relating to some of the enormous companies we know well, tyler, but, certainly, i had to ask to weigh in on a couple things, closing arguments occurring in the government's case against the accusation of time warner by at&t, and i asked him whether or not in the closing argument, the fact that they raised the possibility of structural changes to the deal that the judge might impose, if not blocking it, as to whether that meant the government did not believe it proved its case he said no, but certainly it's something you seek in terms of structural settlement, and it is something that they have offered previously, and it was not taken up, of course, by the party's concern, but it did not say as

you would expect, indicate in any way the government did not believe it made a strong case for why the deal should not go forward. not much more to offer beyond that as you can see in the bottom of the screen, a couple things he had to say, again, tyler, i asked, as you might expect, about his view of the merger of t-mobile and sprint, no. 3 and no. 4 in the wireless country, and high took a pass other than looking forward to seeing the magenta supported by john ledger when he goes to washington to meet with them >> is it possible that this case, the at&t case could settle between the point of closing arguments and the point in which the judge makes a ruling, in other words, could the parties get together and solve it? >> reporter: absolutely. i mean, it's always possible i don't know how likely it is, tyler. i think that time warner or at&t really feel as though they put on a very strong case, and the government is not necessarily

proved why the deal should be brought, but it's always a possibility, taking whatever risks they choose to saying, okay, we can mitigate that risk by a settlement we're willing to live with. >> did you get any sense from him how much he is being pressured or is in communication with the president on some of these big high profile deals >> reporter: you know, great question i -- during the course of our panel, again, not about these deals, i did ask him whether he reads the president's tweets on amazon, and he said, he reads about them, but he did not necessarily add met to actually reading the tweets themselves because, of course, that goes to the argument in terms of amazon being potentially anti-competitive, something the president tweeted about, in addition to his concerns that they are in the stocks >> thank you good stuff outhe, tredavid, see you soon check, please is coming up next

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academic, please >> everybody's watching the dollar again, i'm always watching, but breaking out in three month highs, moving higher, positive for earnings to see a weak dollar and could be reverse, maybe something for companies to worry about >> means higher interest rates >> yes >> the sprint, t-mobile deal, stocks say the deal is not getting done, they should be higher on the news there's going

to be less competition prices can go up, american tower and crown castle trading higher. saying no. >> what a weekend for disney, avenger infinity war, highest opening ever and highest first playoff for the cavaliers and indiana yesterday. >> wow >> lebron. >> lebron. >> thank you for watching "power." >> even i know that. "closing bell" is next they almost pulled it off too, they had a chance you knew they were not going to, but almost did anyway, welcome to the "closing bell" -- >> you enjoyed that check please you always do. >> i do. i love that segment. >> really the right topic for kel ly today this is the final hour of trading on this, the final day of the month major averages on track to close a positive april, first time since january the dow, s&p, an