emerging right there, and obviously the president is right with her. there's the president just behind the marine guards there. so they have -- they're on the red carpet. i presume that benjamin netanyahu is about to walk out and they will be greeted by the first lady and the president of the united states. neil cavuto, this now, sir, is yours. neil: all right. stuart, thank you very, very much. and as you've been indicating, this is a little odd here. as soon as benjamin netanyahu arrives, they're going to hop upstairs presumably to the east room to conduct their press conference and then go on with their talk. so press conference first. and we know how that goes. these things tend to be on the shorter side with this president, in fact, he's been running them about a quarter of the time president obama did. but, again, moments away now from benjamin netanyahu who a lot of times had sort of acrimonious relationship that's probably putting it some said that when he addressed congress, he not only failed to make it to the white house if he

came in he would to through the backdoor, not this august entrance on the south lawn of the white house. israeli prime minister arriving. president and melania trump ready to greet him. let's see if we pick up anything of this. [background noises] [inaudible conversations].ç

neil: this is very close relationship. the two have known each other for the better part of three decades, donald trump and benjamin netanyahu, dating back to the days netanyahu was commentator, analyst in this country. educated in this country of course. returned twice as prime minister. continues in that capacity. today, as i said had acrimonious relationship with barack obama that became even more so on that u.n. censure of expanded israeli settlements in what the palestinians claim were their lands. they got the administration to do something americas that never done, that is the obama administration. essentially let it happen, let it go through without any protest. donald trump said that was wrong back then. he has given hints since, he doesn't want that a green light for israelis to keep expanding on the settlements. they will hop upstairs east room very shortly for this joint press conference. ahead is blake burman in the

white house. what is in store here. a little unusual, blake, what they're doing here? reporter: this is inverted, neil. because theç press conference s happening first. you're watching as they about to make their way over here to the white house. after that the luncheon and discussion between two leaders, president trump and prime minister benjamin netanyahu. what we expect here during this press conference is a little bit of a table-setter. keep in mind these two have not yet spoken face-to-face on this day just yet. so they will come in here. presumably make some opening statements, take a couple questions from the meaded yaw. from there those two will go on about their afternoon in discussing policy. this obviously, neil. neil: is a major news event for a couple different reasons. the first, taken at face value, you have got the prime minister of israel coming here to the white house for his first meeting with president trump just in his fourth week in office, and all issues that go with that.

the two-state solution or might not be a two-state solution pressed forward. the administration said yesterday the end goal is peace, that is the end goal, not necessarily getting there with a two-state solution. there is the u.n. vote that took place at the end of the obama administration and settlements. then the bock grand with former national security advisor michael flynn no longer on the job the last 36 hours orç some this is press conference, which means questions will be asked. in which direction those questions go and what comes from them, we have no clue. if it is indeed asked about general flynn, then the president will have to respond. neil: neil? >> he can control how long the thing goes. they have been shorter in reese weeks. republican senator john thune on what to make of this event and administration intent getting focus on things that matter, they say, not some ancillary

issues. senator, what do you think of that? >> i think it is really important the meeting going on right now, neil. as you point out they're our closest friend and ally in the middle east, democratic government, free market economy and a country enormously important to america's national securely interests and obviously to the national security interests of the region. i hope this gets started on a good footing. i think it will. the previous administration as you know did not have a good relationship with israel and i think that is done some damage but i hope that can be rebuilt. neil: senator, much has been talked about investigations and others into the whole general flynn situation. republicans have been calling for them.ç democrats as well. how long and how involved do you think these get? >> i think that the intelligence committee here in the senate and the house was already looking into russian influence in the election. i think this just widens that a little bit of they will take

into consideration some more recent questions that have been raised but i guess my hope would be, neil, these questions, the administration would be incredibly forthcoming, getting out there and get it behind them because it is important from my point of view that the administration get this issue in the rear view mirror so they start moving forward, addressing not only national security issues we face in the future but important economic issues many of which we want to see addressed legislatively here. we need an active partner with the president and his administration in order to get obamacare repealed and replaced and regulatory relief and tax reform and we're getting on a new supreme court justice here in the united states. all issues important to the people of this country and things we want a clear-eyed focus on. i hope they move past some distractions. get information out there and get questions answered and get going forward. neil: i talked to one of your democratic counterparts said markets might get ahead of themselves how they're surging

convinced the president and republicans will get past a lot of thisç and do things market wants to see, tax cuts, regulatory relief, repeal, replace, obamacare, you name it but it is not likely. that this process will be stymied. what do you think of that? >> it will be stymied if the democrats like to stymie it. we would likeeration, have a constructive conversation about some of these issues. obviously in the senate, full debate and all that, but at the end, we want to see progress. we want things to move forward. what we've seen so far particularly with the nomination process is the democrats doing everything they can to delay and obstruct and foot-drag and keep the president from even getting his team in place. this is unprecedented and historic how long this has taken. never been like this before. i hope when it comes to legislative agenda, legislative calendar, things we have to do, democrats work with us on health care reforms that make sense and give us a better system at a

more affordable cost. also on tax reform, it is important to our economy. we want the growth rate back up north of 3% we're creating better-paying jobs and raising wages for the families in this country. those are critically important to that. so i hope that the democrats will cooperate and if they do, i think we can get really good things done for the american people. neil: do you have any concern, it has beenç raised with generl flynn, the whole situation, apparently this was known for weeks? he was still in the security briefings. that is something that some republicans, virtually all democrats have been focused on and how compromising that could have been, maybe was. what do you think? >> i think that the questions with regard to russia do need to be answered. we need to understand the scope of some of those, some of the relationship that existed prior to the election. their attempts to influence the election, all those questions i think need to be answered, neil. but i also believe that it's

really important for this young administration to start moving forward, and you know, to get into full swing when it comes to moving a legislative agenda good for the american people. these things are a distraction momentarily. obviously they need to address within the white house some of the concerns about who knew what when, whether or not the vice president was informed. this is a team taking shape. they're still figuring things out. but it is time to bring the a-game. we have some important work to do for the american people. and i certainly hope that we can partner with this new administration to get many manyf those things done. neil: senator john thune, pleasure, thank you very much. >> thank you, neil. good to be with you. neylp corner of wall and broad, stocks are up over record territory yet again. nicole pet at the time, it is interesting, you hear chattering media community, chaos. wall street, nothing but optimism.

what do you think of all this? >> they know that the administration, the trump administration is still on track to do things they promiseed, tax cuts. earnings season is 5% growth year-over-year, that brings optimism. janet yellen admitting some optimism yesterday and today. bring it on as we approach 21,000. we got over 20,600 today. we have plenty of names that led the way since january 25th when we hit the 2000 mark. apple, waiting on the new iphone later this year. goldman sachs and nike stellar performers. there are dow all-time highs, several of then, including apple, goldman sachs, jpmorgan. apple is a big story. i will delve into goldman sachs in a moment. home depot, visa. look at financials. everybody is loving the financials as we see a rising interest rate environment. by the way dumping out of theç

10-year bond is almost 2.5%. how has goldman sachs done since the election? almost 40% gains. it is unbelievable. in addition to that 2000 points on the dow and goldman sachs took out the number we saw back in 2007. it has finally surpassed nine years later those levels since the financial crisis and that in itself is something to cheer about people who are invested for the long term. jpmorgan up 30%. american express up 19% since the election. so, neil, as the administration tries to stay on track, and i know we have a lot of things coming out of washington but big picture remains the same and optimism for the long term. back to you. neil: i'm calling this an adele rally, nicole. >> i agree. neil: because this dog that won the national west minute sister kennel club, the -- westminster, dog's name, rumor has it. she contributed to the rally on

monday with her sweep of the grammy awards. i find it telling she continues this stock surge, don't you? >> i can't disagree. you made unbelievable correlation. neil: that is the way i role. >> i didn't put it together, rumor has it is the addée song. rolling in the deep. neil: touche. >> we'll see. but in the deep of the thousands, maybe 21 you thousand, we'll see. neil: there you go, people calling up brokers who pick up the phone saying, hello. nicole. new york state assemblyman on this, i don't think we'll get it into with the assemblyman the adele thing, maybe he is fan maybe not. as we get ready for the press conference on recalibrating this relationship right now. it kind of went off the rails. where do you see it now?

>> well i think it is going to be totally different. even the few moments of the president greeting the prime minister and the prime minister greeting the president those few moments you could tell there was something different there that you did not have before. that was only a couple moments. neil: they have known each other for decades. there is added value you, when you know someone for so long, through ups and downs, familiarity is important. >> absolutely. there is a very deep relationship and i believe that this administration from the president, the vice president, and many of theç people in his administration, the congress, of course, i think this is going to be one of themost dramatic, friendly administration, administrations in terms of the relationship between the u.s. and israel. this administration understands the threats that israel faces. they understand the terrorism that israel has faced all of its

existence. there will be a very, very different approach. it will be very, very special. it is going to be an incredible relationship as the president would say. neil: we also have our difficulties, as the first ladies of both countries arrive, waiting for their husbands. jared kushner, very influential role in the administration. i do want to get your take on the fact rumors are -- another adele song, they will ask israelis to cool it on expanded settlements, not stop them or reverse them but don't go aggressively beyond what you're doing. what do you make of that? >> i don't have a problem with any of that to be honest with you. the fact this administration understands israel, does not have the same problem in terms of the communities in judea and isç

samaria. they are called settlements. most are cities with tens of thousands of people. this not settlements with a couple of people living there. neil: right. >> you know, with regard to some of these cities, there is no question this administration is going to support israel continuing to build. the question is about the outlaying settlements. we'll see what happens with that but the bottom line is that america and israel are going to be great friends. that does not mean that things will always be perfect. that american national interests may not be a little different from israel at certain times. that will be the case but you know what the difference is? there's a friend, someone the israelis trust. neil: all right. >> someone the prime minister and the president, they have a relationship. neil: and here they go. here they go. well-pointed out. here they go now. kicking things off with the press conference. >> thank you very much.

thank you. today i have the honor of welcoming my friend, prime minister benjaminç netanyahu to the white house. with this visit the united states again reaffirms our unbreakable bond with our cherished ally, israel. the partnership between our two countries built on our shared values has advanced the cause of human freedom, dignity and peace. these are the building blocks of democracy. the state of israel is a symbol to the world of resilience in the face of oppression. i can think of no other state that's gone through what they have gone and survival in the face of genocide. we will never forget what the

jewish people have endured. your perseverance in the face of hostility, your open democracy in the face of violence, and your success in the face of tall odds is truly inspirational. the security challenges faced by israel are enormous, including the threat of iran's nuclear ambitions which i have talked a lot about. one of the worst deals i have ever seen is the iran deal. my administration has already imposed new sanctions on iran and i will do more to prevent iran from ever developing, i mean ever, a nuclear weapon. our security assistance to israel is currently at an all-time high, insuring that israel has the ability to defend itself from threats of which

there are unfortunately many. both of our countries will continue and grow. we'll have a long history of cooperation in the fight against terrorism and the fight against those who do not value human life. america and israel are two nations that cherish the value of all human life. this is one more reason why i reject unfair and insided actions against israel at the united nations. just treated israel in my opinion very, very unfairly. or other international forums as well as boycotts that target israel. our administration is committed to working with israel, and our common allies in the region towardsç greater security and stability. that includes working toward a

peace agreement between israel and the palestinians. the united states will encourage a peace and really a great peace deal, we'll be working on it very, very diligently. very important to me also something we want to do. but it is the parties themselves who must directly negotiate such an agreement. we'll be beside them. we'll be working with them. as with any successfulling in shun both sides will have to -- successful negotiation, both sides have to make come promices. you know that, right? >> both sides. >> i want the israeli people to know that the united states stands with israel in the struggle against terrorism. as you know, mr. prime minister, our two nations will always condemn terrorist acts.

peace requires nations to uphold the dignity of human life and to be a voice for all of those who are endangered and forgotten. those are the ideals toç whiche all and will always aspire and commit. this will be the first of many productive meetings, and i again, mr. prime minister, thank you very much for being with us today. mr. prime minister. thank you. >> president trump, thank you for the truly warm hospitality you and melania shown me, my wife sara, our entire delegation. i deeply value your friendship.

to me, to the state of the israel it is so clearly evident in the words you just spoke. israel has no better ally than the united states and i want to assure you, the united states has no better ally than israel. our alliance has been remarkably strong but under your leadership i'm confident it will get even stronger. i look forward to working wiá you to dramatically upgrade our alliance in every field, in security, in technology, and cyber and trade and some others, and i certainly welcome your forthright call to insure that israel is treated fairly in international forums and that the slander and boycotts of israel are resisted mightily by the power and moral position of the united states of america.

as you have said, our alliance is based on a deep bond of common values and common interests. and increasingly, those values and interests are under attack by one malevolent force, radical islamic terror. mr. president, you have shown great clarity and courage confronting this challenge head on. you call for confronting iran's terrorist regime, preventing iran from realizing this terrible deal into a nuclear arsenal. and you have said that the united states is committed to preventing iran from getting nuclear weapons. you call for the defeat of isis. under your leadership i believeç we can reverse the rising tide of radical islam and in this great task, in some others,

israel stands with you and i stand with you. mr. president, in rolling back militant islam, we can seize an historic opportunity. because for the first time in my lifetime, and for the first time in the life of my country, arab countries in the region do not see israel as an enemy but increasingly as an ally. and i believe that under your leadership this change in our region creates an unprecedented opportunity to strengthen security and advance peace. let us seize this moment together. let us bolster security. let us seek new avenues of peace and let us bring the remarkable alliance between israel and the united states to even greater

heights. thank you, thank you, mr. president. >> thank you, again, thank you. [inaudible].ç >> we'll take a couple of questions. david brodie, christian broadcasting. david? >> thank you, mr. president. mr. prime minister. both of you have criticized the iran nuclear deal and at times called for its repeal. i'm wondering if you're concerned at all as it relates to not just the national security advisor, michael flynn, who recently no longer here, but also some of those events that have been going on with communication to russia, if that is going to hamper this deal at all and whether or not it would keep iran from becoming a nuclear state. secondly on the settlement issue are you both on the same page? how do you exactly term that as it relates to the settlement issue? thank you. >> michael flynn, general flynn is a wonderful man. i think he has been treated very, very unfairly by the media

as i call it the fake media in many cases. i think it was a sad thing he was treated so badly. in addition to that, from intelligence, papers are being leaked, things are being leaked. it is criminal action, criminal act. and it has been going on for a long time, before me. but now it is really going on. and people are trying toç cover up for a terrible loss that the democrats had under hillary clinton very, very unfair what's happened to general flynn, the way he was treated and the documents and papers that were illegally, i stress that, illegally leaked. very, very unfair. as far as settlements i would like to see you hold back on settlements for a little bit. we'll work something out but i would like to see a deal be made. i think a deal will be made.

i know that every president would like to, most of them have not started till late because they never thought it was possible. and it was impossible because they didn't do it but bebe and i have known each other a long time. a smart man. great negotiator. and i think we're going to make a deal. it might be a bigger and better deal than people in this room even understand. that is a possibility. let's see what we do. >> that's right. >> doesn't sound too optimistic. good negotiator. >> that is "the art of the deal." [laughter]. >> i also want to thank, sara, please stand up. you're so lovely and so nice to melania. i appreciate it veryç much. [applause] thank you. your turn.

[inaudible]? >> please, go ahead. >> thank you very much. mr. president, in your vision for the new middle east peace, are you ready to give up on the notion of a two-state solution of that adopted by previous administration and will you be willing to hear from different ideas from the prime ministers as some of his partners are asking him to do, annex of parts of west bank and urn restricted settlement constructions? one more question. are you going to fulfill your promise to move the u.s. embassy in israel to jerusalem, if so when? mr. prime minister, did you come here tonight to tell the president that you're backing off the two-state solution. >> so i'm looking at two state and one state, and i like the one that both parties like. i'm very happy with the one that both parties like. i could live with either one. i thought for a while the two-state looked like it may be the easier of the two but

honestly, if bebe and if the palestinians, israel and palestinians are happy, i'm happy with the oneç they like e best. as far as the embassy moving to jerusalem, i would love to see that happen. we're looking at it very, very strongly. we're looking at it with great care, great care, believe me. we'll see what happens. okay? >> thank you. i read yesterday an american official said that if you asked five people what two states would look like, you would get@ eight different answers. mr. president, if you asked five israelis, you would get 12 different answers but rather than, deal with labels, i want to deal with substance. something i hoped to do for years in a world absolutely fixated on labels and not on substance. so here's the substance.

there are two prerequisites for peace that i laid out several years ago. i have a change. palestinians must recognize the jewish state. they have to stop calling for israel's destruction. they have to stop educating their people, for israel's destruction. second, in any peace agreement, israel must retain the overriding security control forç entire area west of the jordan river. if we don't, we know what will happen. because otherwise we'll get another radical islamist terrorist state in the palestinian areas, exploding the petition, exploding the middle east. unfortunately the palestinians vehemently reject both prerequisites to peace. they continue to call for israel's destruction, inside their schools, inside their mosque, inside the textbooks, you have to read it to believe it. you know they even, deny, mr. president, our historical

connection to our homeland, and i suppose you have to ask yourself, why do, why are jews called jews? well the chinese are called chinese because they come from china. the japanese are called japanese because they come from japan. well jews are called jews because they come from judea. this is our ancestral homeland. jews are not foreign colonialists in judea. unfortunately the palestinians deny the past, they also poison the present. they named public squares in honor of mass murders who murdered israelis. i have to say also murdered americans. they fund, they pay monthly salaries to the families ofç murders like the family of the terrorists who killed taylor force, wonderful young american, we point graduate, who was stabbed to death while visiting israel. so this is the source of the conflict. the persistent palestinian

refusal to recognize a jewish state and any boundary. this persistent rejectionism, that is the reason we don't have peace. that has to change. i want it to change. not only have i not abandoned these two prerequisites of peace, they have become even more important because of the rising tide of fanaticism that has swept the middle east and also unfortunately infected palestinian society. so i want this to change. i want those two prerequisites of peace, substance, not labels. i want them reinstated. if anyone believes i as prime minister of israel responsible for the security of my country would blindly walk into a palestinian terrorist state that seeks to destruction of my country, they're gravely mistaken. the two prerequisites of peace, recognition of the jewish state and israel's security needs, west of jordan, they remain pertinent. we have to look for new ways,

new ideas, on how to reinstate them. move peace. and i believe that the great opportunity for peace comes from a regional approach, from involving our new-found arab partners in the pursuit of a broader peace and a peace with the palestinians and i greatly look forward to discussing this in detail with you, mr. president, because i think that, if we work together, we have a shot. >> we have been discussing that and it is something that is very different, hasn't been discussed before, an it's actually a much bigger deal, much more important deal in a sense. it would take in many, many countries and it would cover a very large territory. so, i didn't know you were going to be mentioning that but now that you did i think it's a terrific thing. i think we have pretty good

cooperation from people in the past would never ever have even thought about doing this. so, we'll see how that works out. okay? katie rom down hall. katie. thank you, katie. -- town hall. >> thank you, mr. president. you said in your earlier remarks both presidents make compromises when it comes to a peace deal. you mentionedç settlements. can you lay out a few more specific compromises you have in mind both for israelis and the palestinians? mr. prime minister, what expectation do you have from the new admin administration how to amend the iran nuclear agreement or how to dismantle it all together and how to overall work with the new administration to combat iran's increased aggression, not only in the past couple months but past couple years as well? >> that is actually an interesting question. i think that. the israelis will have to show some flexibility. it is hard, it is hard to do. they're going to have to show

the fact that they really want to make a deal. i think our new concept we've been discussing actually for a while is something that allows them to show more flexibility than they have in the past because you have a lot bigger canvas to play with. i think they will do that i think they very much would like to make a deal, or i wouldn't be happy and i wouldn't be here and i wouldn't be as optimistic as i am. i really think, i can tell you from the standpoint of bebe and from the standpoint of israel i really believe they want to make a deal and they would like to see the big deal. i think the palestinians have to get rid of someç of that hate that they're taught from a very young age. they're taught tremendous hate. i've seen what they're taught and, you can talk about flexibility there too but it starts at a very young age and it starts in the schoolroom. and they have to acknowledge

israel. they're going to have to do that. there is no way a deal can be made if they're not ready to acknowledge a very, very great and important country. and i think they're going to be willing to do that also but now i also believe we're going to have, katie, other players at a very high level and i think it might make it easier on both the palestinians and israel to get something done. okay? thank you. very interesting question, thank you. >> you asked about iran. one thing is preventing iran getting nuclear weapons, something that president trump and i i think are deeply committed to do and we are obviously going to discuss that. i think beyond that president trump has led a very important effort in the past few weeks, just coming into the presidency, he pointed out there are violations,ç iranian violations

on ballistic missile tests. by the way these ballistic missiles are inscribed in hebrew, israel must be destroyed. the pal -- israeli foreign minister said our ballistic missiles are not intended against any country. no. they write on the missile in hebrew, israel must be destroyed. so challenging iran on its violations of ballistic missiles, imposing sanctions on hezbollah. preventing them, making them pay for the terrorism that they foment throughout the middle east and well beyond. i think that is a change that is clearly evident since president trump took office. i welcome that. i think it's, allow me to say this very openly, i think it is long overdue. i think if we work together and not just the flights -- united states and israel but so many

others in the region who see eye-to-eye on the great magnitude and danger of the iranian threat, then i think, i think we can roll back iran's aggression an danger and that's something that is important for israel, the arab states butç i think it is vitally important for america. these guys are developing icbms. they are developing, they want to get to a nuclear arsenal, not a bomb, 100 bombs. they want the ability to launch them everywhere on earth, especially, eventually the united states. so this is something that is important for all of us. i welcome the change and i intend to work with president trump very closely so that we can thwart this danger. >> great. you have somebody? >> mr. president, since your election campaign, even after your victory, we've seen a sharp rise in anti-semitic,

anti-semitic incidents across the united states. i wonder what do you say to those among the jewish community in the states and in israel, around the world, who believe and field that your administration is playing with xenophobia and may be racist tones? mr. prime minister, do you agree to what president just said about the need for israel to restrain and or to stop settlement activity in the west bank? quick follow up on my friend's question, simple question, do you back off from your vision of conflict of two-state solution or lay out in the speech or do you stillç support it? thank you. >> i want to say we're very honored by the victory that we had, 306 electoral college votes. we were not supposed to crack 220, you know he that, right? there was no way to 221. but then they said there is no way to 270. there is tremendous enthusiasm out there. i will say that we are going to

have peace in this country. we are going to stop crime in this country. we are going to do everything within our power to stop long-simmering racism and every other thing that is going on. a lot of bad things have been taking place over a long period of time. i think one of the reasons that i won the election, we have a very, very divided nation. very divided. and hopefully i will be able to do something about that, and i, you know, something that was very important to me. as far as people, jewish people, some friends, a daughter who happens to be here right now, a son-in-law and three beautiful grandchildren. i think that you're going to see a?x&ot different united states f america over the next three,

four, or eight years. i think a lot of good things are happening. and, you're going to see a lot of love. you will see a lot of love. okay? thank you. >> i believe the issue of the settlements is not the core of the conflict, nor does it really drive the conflict. i think it is an issue. it has to be resolve in the context of peace negotiations. and i think also, we also are going to speak about it, president trump and i, so we can arrive at an understanding, so we don't keep on bumming into each other all the time on this issue and we're going to discuss this. on the question you said, you came back, with your question, to the problem that i said. it is the label. what bus abu mazen mean by two states? what does he mean? a state that doesn't recognize the jewish state? a state that basically is open for attack against israel? what are we talking about?

are we talking about costa rica or another iran? obviously it means different things. i note you what are the conditions i believe necessary for an agreement. it is recognition of the jewish state and israel's israel's security control of the entire area.ç otherwise we're just fantasizing. otherwise we'll get another failed state, another terrorist, islamic dictatorship that will not work for peace but work to destroy us but also destroy any hope, any hope for a peaceful future for our people. so i have been very clear about those conditions, and they haven't changed. i haven't changed. if you read what i said eight years ago, it is exactly that. and i repeated that again and again and again. if you want to deal with labels. deal with labels. i will deal with substance. finally if i can respond to something i know from personal experience, i've known president trump for many years and to al you lewd to him, to his people

his team, some of whom i have known for many years too, can i reveal, jared, how long we have known you? well, he was never small. he was always big. was always tall. but, i have known the president and i've known his family and his team for a long time. and there is no greater supporter of the jewish people and the jewish state than president donald trump. i think we should put that toç rest. >> thank you very much. very nice. i appreciate that very much. >> thank you. >> answering any questions about your contacts with the russians or -- >> we're done. [applause] [shouting questions] neil: when he is done, he is

done. my favorite part about these joint press conferences with foreign leaders that the president is having, this is the third big one, is, they're very short. they don't drag on very long. usually he will say thank you, that's it. but in this case he just walked off. so he is the host. that is the way it goes and he's done. the president though, did make a little bit of news here. he did say when it came to obviously the dust-up over michael flynn, it is now gone, the national security advisor, he think the general was treated very unfairly by the media and leaks to the media are the real criminal act here. when talking obviously about the building of settlements that the israelis got targeted on by the lasted a administration, donald trump seemed to say you know whcan cool it on that. we think you might hold backç a little on building settlement. i was watching i was watching

benjamin netanyahu's face when he said that as they pulled out. he look ad little surprise it came up in this setting but the administration and its underlings said that is fine but cool it. that is essentially the message here. blake burman at the white house now what he makes of what he just heard. blake? reporter: neil, that was potentially the moment of this press conference talking about settlements, president obama, president trump, excuse me, he feels the israelis could be flexible. and he looked at benjamin netanyahu, the prime minister of israel, you don't seem to be too optimistic. the prime minister said, well, that is "the art of the deal." referring to president trump's past writings. it is interesting we talked about before, two met moments face-to-face as president and prime minister. they have obviously known each other for a while as you just heard. mr. netanyahu got here to the white house. there was the press conference started. there was no talks beforehand but first level type

negotiations. you heard it there with settlements. there was a question about whether or not the president and his administration would like to see a two-state solution. president trump saying,ç basically, that i'm going to leave it up to the israelis, whatever they want would be good with me as long as there is peace. benjamin netanyahu is done with labels. he wants to talk about substance. netanyahu also took, i don't know if they were direct digs at p.m. -- at president obama, but he says he feels it might be easier to deal with this administration than the previous administration. neil, as you were talking about, there was president trump's comments on michael flynn in which he said he feels that the general, the retired general was treated very unfairly. as he said in the tweet the real story he feels here are the looks which are criminal, they have been ongoing but been stepped up since he has taken office.

neil. neil: you have covered all the press conference. there have been four joint press conference, first the british prime minister, and then the japanese prime minister, and then the canadian prime minister and now of course theories israeli prime minister. i think each lasted about 78 seconds. i'm exaggerating, but to make the point they don't go on and on. i don't remember a president who hosted another foreign leader where these joint remarks are truncated to the degree they are, and that is by design, right? it is quick toç the point, thas it, we're out of here? reporter: yes. the remarks of president trump, prepared, written and then read off the top, i believe each time, definitely the last three, have been significantly shorter than his counterpart. so here you've got the foreign leaders walking into the white house. they lay out their case. president trump, keeps it short and concise. we know he is messenger. then he moves on to his counterpart and questions wherever those go, neil. neil: thank you my friend, blake

burman. it is interesting. i always love the stuff because the guy reminds me of my father, lord rest him. he was done, he was done. he walked out of a room. dad? that was president trump today, when he was done he was done. normally he says when he is done. what make this is whole presidency kind of riveting to follow, whether you like him or not, whether you like what he is doing or not, even his counterpart this case, benjamin netanyahu had to say, i guess he is leaving. back with us, new york state assemblyman. we have former pentagon official michael rubin. welcome to both of you. michael, if i get your view on that, that is a little goofy obsession looking at it. this is the fourth time president wraps this up. like president obama, i cast noç aspersions about the former president, we would be 1/3 into it. different way to handle these things. what do you think of that. >> i think that is astute move

on donald trump. i travel outside the washington bubble, people are fed up with the whole issue of ceremony, want to get to substance. what president trump said i would be leader of the free world. he will try to do what he needs but not going to be involved as the zoning commissioner of jerusalem. he will not get into that minutia, symbolically walking out after he did what he needed to do shows that. neil: i also said on the settlement issue, cool it. it was an odd venue to do it in publicly, to negotiate something in that kind of a forum by saying, i think you, paraphrasing here, you i think i got the gist of it. you done your settlements. you made your point. you got the former president upset about it, i let that go, but that's it, you can't keep doing it. what did you make of that? >> this is for me? neil: yes, dov. >> yes, i'm sorry. ultimately look, policy is consistent, with don't

particularly care for this across administrations. the problem, what made obama separate, he madethis precondition, that in effect through a wrench into the gears. neil: you don't mind the way he did it in this forum, right? >> no. that is donald trump being donald trump -- neil: sorry for the confusion at the outset here. did that bother you on any level? >> no, not really. i thought it was a rackable press conference, things the president said point after point after point, literally went right to my heart. it was just magnificent the points he made about israel being a symbol to the world, recognizing what israel has faced all of these years, point after point after point. most dramatically, two-state solution, one-state solution, whatever deal they can make to have peace. i think that is amazing. the entire thing. look i said it earlier. it is not going to be perfect. things, there will be

differences. look, settlements will continue. there is know request about that. they will negotiate some kind of a understanding, for instance, in the blocks, those are the large cities in the judea and samaria, settlement growth will continue. natural growth will continue in all the settlements, no question about it. i think it was remarkable. i am just so thrilled, to watch this dramatic change between the united statesç and israel. neil: all right. >> there will be differences but this was dramatic. this was somebody, donald trump, someone that the people of israel can trust. you know, when they do polls in israel, not like obama where 70, 80% of the people did not trust him as a friend of israel, this is going to be dramatically different. there will be differences but this is a true friend. neil: we shall see. assemblyman, i want to thank you. michael ruben, thank you very much. in breaking news i would be remiss what is mentioning on

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neil: all right. this is the end of the press conference. only benjamin netanyahu did not know it. want you to watch it. that's it. i'm done. yeah. here we go. thank you, fake media. we're out of here. i love that stuff. i've been crunching the numbers, this is the fourth joint press conference the president had, this with the israeli prime minister. he started with the british prime minister. the japanese prime minister. the canadian prime minister. now of course benjamin netanyahu with israel.

those four joint pressers seemed to be of the less than one of barack obama's. i'm not saying anything bad about barack obama. people sometimes go on and you make these weighty, lengthy affairs. sometimes you don't. but, all four taken together shorter than just one, barack obama's. i don't know what that means. outside of endings like this, or they're pay-per-view moments for me. the stock market surging ahead. that is a pay-per-view moment. what got it going, long before this joint press conference was a pay-per-view moment and a meeting with retail ceos that seemed to harken a promise of massive taxç cuts the likes of which wall street has never seen since dating back to ronald reagan and likes talk of that adam shapiro with more on that. hey, adam. reporter: hi, neil. the big headline this morning from the white house was the pledge from president trump that

tax reductions are coming soon harkening back to the. ceos lobbying him on tax reform issues. president the promised a tax reform bill that will lower personal and corporate income taxes. >> we're going to simplify very greatly the tax code. it is too complicated. and we're going to bring down the number of alternatives and i think it is going to be a, just a much, much simpler tax code. in fact h&r block probably won't be too happy. one business that might not be too happy what we're doing. other than h&r block, people will love it. reporter: back to you, neil. neil: thank you adam, very much. remember when he made headlines criticizing davos and out of the bubble leaders go there while i was there, caused quite the wave. i don't know what it is with leaders these days. walked out. more after this.

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neil: become -- welcome back. there we go. i could. i could do advertising. the largest advertising firm in the planet. but i am interested over the years the trend that you saw in the 1990's, you said it was going to change everything. that was before al gore. [laughter] >> when a lot of your colleagues out there were expressing disdain and shock on donald trump, we are out of touch of reality. i'm paraphrasing here. >> and the brexit, by the way. we were talking to ourselves. neil: you had wanting to stay in the union and you thought

hillary clinton would win. >> zero for two. two spikes. neil: you also had two hits there. how was that received? >> i think to be fair the people probably agreed. how could you not agree? a year previously everybody was saying the uk -- well, they were surprised by the result, but i think when they looked and start today analyze what was going on, they understood that they were looking at the wrong data, looking, taking the wrong opinions and talking to themselves in that bubble, whether it be the london bubble in the uk instead of the north or the west or the east or the south, whether it was the bubble here on the east coast and west coast and forgetting the heart of america is -- is in the middle. the fly-over of the country. neil: not when it comes to

brexit. >> i was asked whether it should be, you know, sort of hard or soft or slow or fast and i said, fast and soft, i guess, was my solution but it's going to be very difficult. neil: don't drag it out. >> no. you said to me what is the biggest thing we see at the moment, it's the uncertainties. this morning's press conference, one level obviously israel and u.s. relations are very strong as a result of the new administration, the emphasis by the new administration but how much uncertainty will be removed in the medium to long-term is the key issue. you you see technological risk, taking or yesterday taking stake in gamble, 220 million and then

taking -- 1 and a half percent or whatever it is. significant in terms of sums of money. you have that uncertainty and then you have the zero-base budget movement if you can call it that. neil: where does trump fit into this? is he mixing messages? >> to be -- well, to be fair, most regimes when they start have bumpy, have to appointment large number of people, some people work out and some people don't. the interesting question about how does the trump administration figure, let's say, short-term, medium-term u.s. economy i think is positive. we heard again this morning, there's going to be very significant tax reduction. the biggest deal that has ever -- and that's got to be good for

business at least in short to medium term. but i think for the u.s., if you ask me again, you go back, what do you see, in the u.s., will gain on u.s. swings, we might lose on the international round-abouts. some things happening internationally, whether it be china or méxico, what will happen in the middle east, probably don't diminish the uncertainty. i would be pretty bullish for the u.s. economy in the next two to three years because i think of infrastructure spending in reduction in tax rates. neil: spread-over effect in the world? >> 17 trillion. by definition it's the biggest engine. going at a rapid rate. neil: we might be dragging ourselves in more debt. >> 20 trillion and people are concerned about that and there's also the inflationary impact.

you will have that in the uk too. in uk to be fair, we are out or we are coming out, so they say, the uk economy is resilient so far. there are those who say in 2018-2019 the position might be different. remember, we have a two-year negotiation process which is when i said -- two years of uncertainty. at the end of two years we have to extend the process we need 20 out of 27 member states approving negotiation period. that doesn't sound like we will be able to get an extension. it may be that we have to revert to wto rules in two year's time. neil: world trade organization rules. i want to pick the advertisement brain in you. focusing on messages because the

rap against donald trump is he's all over the map and that could be a good thing or a bad thing. >> very reactive. neil: all right, on the immigration order that's been battled in the courts, you said i have an instinctive dislike of such measures, what did you mean by that? >> there are three points. has it affected us to date, no. second order of impact which is what i worry about the impact on our people because we have, for example, in the uk same issue, 17,000 people in the uk, 200,000 people worldwide. of the 17,000, 20% are eu citizens. the same thing applies here in the u.s. neil: bad hombres getting through? >> i don't think so. neil: that's what he's saying?

>> you never know for certain. do we have bad hombres in the organization -- i'm the grandson of immigrants from the ukraine to uk on my father's side and between the world wars from poland and romania from my mother's side. but that's my instinct of dislike. i am a second generation uk immigrant and i think immigrants have made major contributions, which is the founding of immigrants. neil: it's gotten out of control, right? >> well, you're leading the witness there. neil: yes, i am. >> the question is always in these things a question of balance and there are people that it has got out of control. neil: yeah.

>> i think the sound side of restriction outweighs the positive. that's my instinctive reaction. i just believe that immigration and the sort of thing in the world, syria or elsewhere means that we have obligations as well as having rights and powers, we have obligations to help. neil: you know, i got a chance to read foreign press, by the way shock, it was a shock worldwide but reading a lot of the british press it was collective gasp, when he goes to britain, your prime minister has invited him, there was even talk do not let him speak at parliament. >> yes. neil: what do you think of that? >> well, that's going to be for parliament to decide. whether it seems childish or not -- neil: what do you think? >> variations.

neil: would you do that? >> to be fair, the personal stuff, the personal views that he expressed during the course of the election were issues that people feel pretty -- issues they feel pretty deeply about. neil: are you surprised by the vitriol? >> there are things coming out of it in relation to russia or something else, we have to see how that plays out. we are focused on tax cuts and israel but yesterday we were focused on other things, the russian situation probably has to play out some more. was i surprised by the reaction, no, i think during the course of the campaign the campaign was flagger gassing, wasn't it? neil: it was. you're right about that.

to prove that point, $5 billion of your clients' money -- >> invested. neil: in google. 1.7 in facebook. >> yeah. neil: 90 million in snapchat. >> that's small. snapchat's revenue was 400 million. neil: i understand. snapchat is the latest. facebook like. >> potentially. i mean, we know facebook have tried to buy snapchat on at least two occasions, we know that facebook has made changes to their applications or changes in their applications. 13 or so applications which mimic a lot of the things that we see on the snapchat which is successful. clearly facebook is feeling a little bit of the heat, less so with google.

google's key product is search. the big issue for google is going to be what amazon does in terms of search. that's where, i think, google -- neil: you don't look at snapchat, by the way, we are seconds away to go back to the white house with netanyahu and president trump meeting, you don't think that snapchat is an overrated -- >> they said about facebook and probably said it about google at the time too. google's fundamental product is the search. neil: the oval here. the press conference was short and sweet. they might be answering reporters' questions. >> go ahead.

[inaudible conversations] >> thank you, thank you very much. neil: again, these things are short and sweet. photo op as they call it. you know, as if we were mentioning before the way they approached this president has to even sort of negotiate at a press conference saying, you know, those settlements of yours -- >> u like restrain. neil: but it is a different type of style, isn't it? >> much more direct. maybe, who knows, maybe it'll be effective. a lot was talked about. i think the president said he didn't have any firm views on

two states, one state. neil: right. >> it was all up for grabs and a bigger deal was -- neil: one of your clients there probably. >> no, it's my son. what he was saying it was a bigger deal and it would be a stronger deal and it would be measure ambitious deal and i think it was interesting. it was also interesting the direct communication. a lot of people feel that it is too reactive. i think there's a certain charm also, let me put it that way in direct communication and it is extremely effective. we saw in the campaign. if you were saying what was one of the key reasons why he won, i think it was because of the direct communication. neil: market reaction has been whatever -- >> stock market. neil: again, some of the

spurring to come through more spending or tax cuts -- >> well, the market is looking after tax earnings. neil: doesn't look so rich all of a sudden. do you think the markets are getting ahead of themselves? >> no, i think it's difficult to say because we don't know what the extent of the tax reform will be. we don't know the extent of what the infrastructure spending will be. i was talking to one cabinet administrator that it takes three years to get legislation through. i didn't know that was the case. it takes an awful -- if you think three and a half years. shorter. not similar. actually prime minister cameron tried the same thing that president trump tried. for every piece of regulation, take away -- he did exactly the same thick. neil: did it work? >> not really as much as, i think, he thowlgt it would do. but it's the right -- it's the

right way to go about things, so changing things is going to take a long period of time. that's why the president executive orders do have their charm because they can get things done or apparently get things done quickly. they have to be implemented as you saw from the immigration ban from extremely effective and careful way. the devil is in the details. neil: how is the baby? >> three month's birthday. [laughter] >> there's no jet. [laughter] >> so, you miss td out on that one. [laughter] neil: we will try next time. martin sorrel. this is it for this president on this day walking out of a press conference, signal he's done. he shakes hand with you, that's his way of saying, i'm out of here. he walks out of the room and

netanyahu is -- [laughter] neil: exactly. that is israeli, illustrates what we are talking about, it's very different, some call that refreshing and others no doubt, e-mailing but anything but. a little more to this your insurance company

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>> from intelligence, papers are being leaked, things are being leaked. it's criminal action, criminal act and it's been going on for a long time, before me, but now it's really going on and people are trying to cover up for a terrible loss that the democrats had under hillary clinton.

i think it's very, very unfair what's happened to general flynn, the way he was treated and the documents and papers that were illegally, i stress that illegally leaked. neil: all right, so now what was leaked, well, the fact that itw. president trump hitting back on intelligence agencies that he said might have compromised more than just the words of one retired general who is now out of the administration, his national security adviser, reaction from new york congressman. good to have you, what do you make of the president's position on this -- no one is focusing on these constant leaks, not ultimately what is leaked, the fact that we are constantly seeing leaks a lot more so in this new administration. >> it's an important concern on the part of the president. he may be the most concern because so much has gotten leaked out. not just since elected president

but also oath of office. image he's greatly concerned and wants to get to the bottom of it because it impacts america's national security. he has a job to uphold, provide for the common defense. he wants to identify the leaks an close them so it's a reasonable position from that front. neil: you can read hypocrisy on both parties, i'm not saying you, sir, but republicans weren't necessarily concerned about leaks when all the stuff came out and hillary clinton emails and the john podesta emails, it was the final material and talking about it that was the issue. now the roles are reversed, it's a big issue, you could say the same as democrats. what do you think of that? >> i actually thought it was a big issue previously -- cybersecurity is a whole new

form of warfare, it greatly threatens our government, our infrastructure, businesses, individuals. when -- you have russian -- foreign governments, we heard the russians, the russians, chinese, other actors, you have people acting on behalf of their own to obtain personal identification from large businesses here in the united states and elsewhere, that's a massive concern regardless if you're a republican or democrat. on a whole another level we are talking about security and we need to up our game big time. neil: we can go back and forth with the retired general flynn knew or when the president knew it, all i know is that stocks have been running like crazy. so they seem to be dismissing this and more focused that the republicans are going to come -- the president indicated with retail ceo's massive tax cuts, do you agree with that? i know that you're not a stock

picker, the markets are pricing imperfection from you guys. >> well, the media -- much of the media wakes up in the morning and they are trying to figure out how to sabotage this president and to how to undercut him when the fact of the matter that when we are talking about overhauling dodd-frank, gse reform, flood insurance program, having tax reform, investing in infrastructure, repealing obamacare, these are the issues that everyone is focused onto move our country in a better direction, so as far as stocks go and the market and the economy as a whole, i think they are encouraged understanding that dodd-frank, for example, perpetuated too big to fail where bad actors knew that taxpayers will bail them out. the stock market is responding appropriately. neil: great catching up with you, thank you. >> thank you, niel.

neil: there's the other issue that's taking attention, costs associated with obamacare, affordable care act will get corrected while in repeal will they find something to replace? there are a number of plans, the dirty secret is republicans are not sure on alternative options, they couldn't agree on one. they are closer now, we will tell you how close and whose plan they really like after this . n't replace the full value of your totaled new car. the guy says, "you picked the wrong insurance plan." no, i picked the wrong insurance company. with new car replacement™, we'll replace the full value of your car plus depreciation. liberty mutual insurance.

neil: you heard of repeal. you heard the difficult part is the replace part with obamacare. republicans, two key ones, have such a measure ready to go. gerri willis has the details. hey, gerri? >> neil, that's right. congressman mark sanford, senate rand paul, have companion bills, very, very similar, although not identical, to replace obamacare. now this marks like the seventh

and eighth bill to replace obamacare. there are many bills out there, lots of choices out there. this threatens to further divide republicans who haven't been able to come to agreement on a repeal and replace plan. now, when you need to understand about these, it is further dividing the gop. yesterday rand paul walked out of a meeting with top goppers, including the house of representative speaker, paul ryan, they were discussing obama care and what senator rand paul did not like the part about tax credits which is something mainstream republicans embrace to help people pay for health care. he prefer as deduction. that is one of the things holding this up. quickly, i tell you, irs making a major move you want to know about. they will no longer be the cops on the beat on the individual mandate. what they say specifically they

will not reject tax filings in which filers don't say, refuse to say whether they have coverage or not. so, previously this was their role to be that cop because of executive orders from donald trump though, they're not going to do this. so, you know, the reality is, could come back and bite you if you don't tell them because they could enforce later because obamacare remains law of the land. for now your filing will be accepted. neil? neil: gerri, thank you very, very much. let's take a look what is going on here now. stocks up still better than 81 points. we have a key fed member that could give you a better perspective on whether that can continue. our peter barnes with that after this. why pause a spontaneous moment? cialis for daily use treats ed and the urinary symptoms of bph.

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neil: we got to know the fiscal stimulus and all of that. what is the federal reserve going to do? markets get a gauge of that, our peter barnes speaking exclusively to st. louis fed president james bullard on that subject. take a look. >> we're here with jim bullard, president of the st. louis federal reserve bank. jim, thanks for joining us again on fox business. >> thanks for being here out in st. louis. >> start with chair yellen's testimony on the hill yesterday and today. she is talking, she is saying that jobs numbers keep coming in at their current pace and if inflation continues at its current pace, she still has

three rate hikes penciled in for 2017. you, however, are talking about just one rate hike this year. why? >> we think we're operating in a low, real safe interest rate environment, and rates are just not that high globally. you don't have to do as much in this environment to keep inflation under control. and, so we think we're actually in pretty good shape. we have one increase this year. i'm a little agnostic about timing on that. and, we'll see how it evolves as we go through the year. >> what about concerns colleagues have at thed if about potential stimulus from the trump administration how that might spur growth and higher inflation, potentially higher rates. >> new administration needs the program together to get it through congress to take a while. i don't see any way that will be

resolved by march, for instance. and, perhaps no later in the year. so i think given the numbers i see on the economy, i think we can probably afford to work later in the year to make our move. >> later in year for one move? >> yeah. >> but not three? >> we only have the one. >> colleagues are talking about -- >> you have to talk to them about that. >> no problem, but that could come as soon as march, march meeting as far as you're concerned? >> well, i don't think -- i just don't see that uncertainty about the fiscal situation being resolved. it is only a couple weeks away and obviously congress has to grind through the legislative process. if you look at other administrations that have come in, like reagan, they have, you know, took till july, august time frame before they got their legislation passed. >> speaking of the trump administration and on the hill,

they have proposals around the fed about perhaps, putting more controls on it or audit the fed bills, things like that, and, we're all of course real curious how the fed and chair yellen and president trump and trump administration are all going to get along. how do you think they will get along? >> i think we will get along famously. >> very good. >> there are proposals on capitol hill and evolve and develop as we go through the year, but generally speaking, i think the fed tends to be a very collegial organization, very professional organization. i think we'll do well in this environment as we have in other. >> but the president was very critical of the fed during the election? >> he was, but he will have a chance to make his appointment and so, you know, we'll let him go through with that, but i think you know, it is a pretty big committee and so, if you make a couple of appointments. >> ad board level. >> board level.

you have its constitutional memory. you have a good staff and they can push policy in a direction. generally speaking there is a lot of continuity. and i think markets should be reassured by that. >> jim bullard of the federal reserve bank of st. louis. we will take a little break here and neil, when we come back, we're going to do our little web special. we'll have that posted on foxbusiness.com later this afternoon. back to you. neil: my friend, peter barnes, very revealing there. here is one fed voting member who is saying one and done, not three and wee. you get it? more after this.

>> i think we're going to make a deal. it might be a bigger and better deal than people in this room understand. that is a possibility. so let's see what we do. >> that's right. >> that doesn't sound too

optimistic but, good negotiator. >> that is "the art of the deal." [laughter] >> i also want to thank -- neil: maybe not lewis and martin but i think close, i think close. israeli leader, the american leader, joint press conference, you could tell they get along, these guys have known each other for decades. so obviously is a lot of history and respect and admiration. whether there is israeli-palestinian deal there. charlie gasparino, lizzie macdonald. how do you think it went. >> i think it went well. depends how well everybody else feels. neil: that's true. >> security apparatus and intelligence community wants to get donald trump. he wants to shake up the intelligence community. that is reporting we're hearing from d.c. i think it is interesting the israel leader mentioned the heart of the deal. he is supposed to come in shake up washington, d.c., except,

washington, d.c., the establishment getting its licks in on donald trump right now. neil: not relenting. what do you think of that? >> i'm not condoning what the intelligence community is doing can trying to destablize our government which is what they're doing, but he kind ever started it going out there, they were horrible. they were bad. they screwed up on this, that and other thing. lo and behold they start leaking about him. neil: that doesn't justify it. >> i said that. it does not. they're actually -- neil: saying horrible things about our president. >> destablizing the presidency of donald trump. neil: to lizzie's kind of point, this drags on a while and makes it difficult to get deals going? >> i don't know. depends how much there is there. if you look on the surface, right, the whole flynn situation, it is president mundane. he discussed ending sanctions with his russian counterpart, stomach trump was already out talking about. the only thing he lied about the circumstances surrounding it.

that to me does not seem like a big deal. neil: but coulds ifter. >> if you see lines from russian intelligence during the election to certain people in the trump orbit, that could be a real problem. neil: the markets don't see it as a problem. talked with other guests, lizzie, this disconnect or maybe there is none, between an investment community, likes what it is seeing and i guess punditry community that doesn't? >> that's right. so the we're talking about tax cuts, right? we're -- the president talking about tax cuts. the way they could do tax cuts, he needs political capital. if the political capital is drained away by side issues, important issues with michael flynn and russian intelligence coming into our election process, that is serious issue. that gets drained away, can he get tax reform in budget reconciliation bill which only requires 51 vote, not supermajority. neil: kevin brady he thinks they can. >> he thinks they can. that is a deficit play because of rec sell ages.

>> i think markets, i talk to the markets, they like what they're hearing. at some point they have to show stuff, show a little leg here. where is the agenda? where are the bills? >> martin says, they have priced into perfection? >> that is a problem. this gets a little hairy. if you disarray in the sort of, among the top managers of trump where there is no real chief of staff, where people are not getting stuff done, this thing drags and tax cuts and regulatory cuts drag on second half of the year, the market right now does not justify economic conditions. if you talk to steve leeb, ask him, he is pretty good at value. neil: right. >> he will tell you that the dow 20,000 is pricing in corporate earnings that grow much beyond where they are now based on tax cuts, corporate tax reform. neil: so the market isn't as rich anymore? >> the market is ahead of itself. but the point is -- >> go ahead.

>> point i'm going to say, if they don't get this stuff done soon, it is going to come back. >> i think charlie is right. i think they're overits skis, talking about tax cuts impact coming into the economy in 2018, and if that isn't done and trump said market was in a bubble in august. i think it could come back down, yes. neil: what did you make of, here you have the federal reserve governor by the way i see only need for one more rate hike? and there are others saying given stronger data we're giving, both wholesale inflation numbers, retail inflation numbers, double what people thought, pick up might warrant what we thought -- how would markets digest that. more rate hikes even as tax cuts come. >> depends if he achieves his economic goals this year. listen. the market has been, the market, the market has not been trading

off the economy in a long time. it has been trading off low interest rates. but in the stock market. the real economy was not all that great. it went up to 18,000. trump came in and said, okay we'll improve fiscal side. we'll do fiscal stimulus and market traded up. if that fiscal stimulus doesn't come, it is going to trade down, whether the fed raises rates or not. by the way it doesn't come, they will not raise rates. neil: that's true. >> that is true. i agree. only quarter point rate increases we're talking about. maybe .75 increases for year. neil: we talk to all the young people who say, oh, my god, if i get a 4.5% mortgage i'm gouged. >> that's true. neil: the vantage point, up tick like that might seem small because these rates are still historically low, that could be -- >> higher rates could be good in a lot of ways. neil: absolutely. >> you don't have to take risk in the stock market. more money in investments, buy

them cheaper. let's be clear here, bank stocks generally push the markets. if you have higher rates, bank earnings will go up for a lot of reason. remember banks do not pay you higher interest rate. neil: what is going on with goldman sachs by the way? >> simply this. lloyd blankfein made a bet, the ceo made a bet. he said that he would not have to ratchet back his business to conform to dodd-frank. at some point we would have friendly administration, either trump or hillary. he has the most friendly administration with his guy. neil: hilly wouldn't have been friendly, right? >> he is friends with hillary. i think he got the best of all worlds. >> he did. >> he has trump and got gary cohn changing it. >> trump could by next year -- neil: up almost 40% since -- >> that's correct. trump, the administration could appoint a total of five, five people by next year to the federal reserve board of governors, including replacing janet yellen whose term expires. >> only one matters.

there is only one that matters. vice chairman of the fed. he is signaling a free market guy who will go light on dodd-frank and probably change something known as volcker rule which allows them to take more risk. thus his business model has never been changed to benefit. >> more bankers instead of phds at the fed. paul volcker worked at chase manhattan. there were more bankers under volcker's head than economists under yellen's head. i know you're bored with this. neil: you're so smart it is scary. >> dry as sawdust. >> i think it gets down to one thing, gary cohn. he was sitting -- >> are you crazy? neil: i am. what do you think about the dog? >> westminster. germ hand sheppard. -- german shepherd. do we have video. neil: do you guys like adele?

>> i'm actually a cat guy. >> you're a cat- neil: i will leave it at that. we'll have more after this. ♪

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call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence. go long™. ♪ neil: all right. mexico's foreign minister is saying that secretary of state rex tillerson, homeland security secretary john kelly, well, they plan to visit mexico on february 23rd. that will be next week. that will be an interesting development there. we're talking about the wall. talking about he revisiting, if not trashing nafta, north american free-trade agreement. whether this lays groundwork, who knows. next week it all begins. we're also hearing republican senator purdue on the whole border adjustment tax, not necessarily keen on it. doesn't think the way it goes. he could be very instrumental

all of this, david perdue big fan of tax cuts in general but not using this border adjustment tax that would essentially represent imports coming into the country. a lot of retail ceos who met with the president today weren't keen on it. that could be significant development. let's us get the read with the scott martin, kingsview asset management chief investment officer. it is interesting, scott, because what he is saying is, it is not going to pass muster with me. more and more republicans are saying things like, that it would be counterproductive. assuming he is still keen on tax cuts, then democrats or others will say, how do we pay for them? what do you think? >> yeah. that is funny coming from democrats, isn't it, neil? looking back for last eight years -- neil: that is an issue. >> it's a bigdeal, you guys, republicans have to pay for it! this is funny about the border adjustment tax, if you're retail, you're very concerned.

meeting president trump had today is timely. a lot of their goods are produced overseas around brought into the united states. if you're retailer, don't have pricing power to make something in the u.s. or raise the price with the costs on import you will have a issue. tell you what is interesting about it. the goal isn't nationwide. to get companies to start making stuff here in the united states, bring production here which a tax could he will actually do, let me get a sense. i think tax cut is coming one way or the other. we can bicker over the rates, what they will finally be. the president calls it massive. kevin brady, house ways and means chief says it is sweeping, massive, comprehensive, all of that, but if you don't have alternative means, i'm in the camp like you, tax cuts, people need a way to pay for them, people go nuts, when you get a big tax cut at first it will lead to bigger deficits before revenue comes in. a whole congress not accountable

for end spending all revenue, but there will be a period where deficits by extension will get worse. how many republicans will be okay with that, do you think? >> it is funny. we're not far from the midterm elections, a lot of constituents piping up to some leaders and talking about whether they really feel comfortable with the tax situation or the tax plan. tell you what. you're right, neil, about the long-term viability, long-term effectiveness of a tax cut, simplifying the tax code as president trump commented a couple hours ago, i think that is much more of a boon to the economy than policies we've seen in the last eight years, and that really is what most of america should be excited about. neil: all right, buddy, thank you very much. sorry for the truncated time. we wanted to pass along the latest adele fallout. neil, are you aware what the president said today. aware of massive tax cut, are you aware of better-than-expected earnings and you're attributing this to a

dog and adele? yes i am, i want you to prove me wrong. the dog that won the westminster dog show was a german shepherd named, rumor has it, named after adele. this led to monday rally and, the dog's name is rumor. i looked into it. the full name is rumor has it. the dog goes by rumor. my producer will be looking for work. we'll have more after this. ♪

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♪ ♪ ♪ neil: you know a lot have been e-mailing nasty things saying my obsession with adele borders on creepy. my own wife pointed out, you're weird, that adele is younger than our daughter. i'm aware of all of this. she has a beautiful voice and now owing her name to a dog

tournament. hello, that's a dig bale and you're wondering why stocks are up. they are in the green because adele made a lot of money, hello, trish regan, hello. trish: hello, thank you, niel. all right, we have market that's up right now. breaking right now president trump and israeli prime minister netanyahu are in a working lunch. the two leaders held first joint conference where prime minister netanyahu told president trump that israel stands with him and that he himself, prime minister netanyahu stands with him as well. the iran nuclear deal right now very much in question if that's a good thing, while the two communicating that they are working on a whole new deal, i'm trish regan, welcome to the intelligence report. i want to go straight to blake berman that's at the white house. hey, blake. blaish blaish hi, tris