maria: thanks for being with us, great to see you guys, thanks for joining us today. there is a lot we will be covering next week. that will do it for us, have a great weekend. "varney and company" coming up now. stuart: a major speech from president trump 90 minutes from now. if he talked taxes he could move this market. friday morning everyone. here is the backdrop to today's speech, statements from steve bannon and steve mnuchin. steve bannon defined the trump presidency, economic nationalism. america first. he says the president will never back off from that. how is this for an extreme reaction? bannon lifts his mask of death. it is not a pretty sight says britain's far left guardian

newspaper. as for steve mnuchin on foxbusiness he laid out an ambitious schedule, tax-cut package by august. rapid all together, the president will do what he said he was going to do and do it very quickly. you will hear from the president. the close from the market 20,80010, the 10th straight record. the dow is 2478 points since the election. we will open down at least at the start of trading. investors do not like the border tax the president has mentioned favorably. we will mention what happened after the president speaks, "varney and company" is about to begin.

>> some people have remarked that we are a little bit different. i am a small town guy. i am midwest, he is manhattan island, he is known for his bigger than life personality, his charm and charisma and i am not. as i said at the republican convention i guess he was looking to balance the ticket. stuart: was that his new ticket -- accent, balance the ticket, vice president pens making fun of himself at cpac yesterday. president trump speaks to that later in the next hour. we will see it right here. president trump's chief strategist steve bannon spoke at cpac. listen to what he said about the

economy. >> a nation with an economy, not an economy in a global marketplace but open borders, we are a nation with a culture and a reason for being. that is what unites us. that will unite this movement going forward. stuart: economic nationalism is what he was talking about and deconstruction of the administrative state, strong stuff. rich lowry with me now. he just defined the trump presidency and redefined conservatism in economic nationalist terms. >> if you had anyone sitting in a chair the last 40 years at cpac ask that question he would have said what unites us his opposition to the states and collectivism. this is a significant redefinition. if he means economic nationalism we are going to take national interest first in economic decisions that does unite all of us. if economic nationalism is protectionism then you have a policy issue.

stuart: that is the sticking point for investors, the sticking point for a lot of republicans who do not want this border tax because that is part of economic nationalism, you put up a border tax, you encourage exports, discourage imports, a lot of republicans don't like it. >> a huge sticking point. paul ryan is insistent on this, he thinks it is a way to head off tariffs and more protectionist measures but folks in the senate, retailers hate it. a major disruption and it will die unless donald trump strongly backs it and pushes it in the senate. stuart: he spoke favorably about it. he said it could lead to a lot more jobs in the united states. he spoke favorable, everybody else has one of these taxes. >> still vague. this surprised me. we don't know where in

specificity it is going on trade. >> they are still figuring out what their major agenda items are. stuart: he has the cpac speech at 10:20 eastern, we will carry it live. i wonder if he will enhance the economic nationalist argument and dabble with the border tax. you think? >> i don't think so. he will be addressed to congress. stuart: a whole new brand of conservatism. are you with it? keep asking a question. you are all right from the "national review". the dow coming off of its 10th straight record closing high. the market will open lower this morning, president trump says the border tax could lead to more jobs in america being taken as a sign that he wants that border tax would investors think it might lead to a trade war headed to the current selloff.

let's see what happens when the president speaks. better profit at nordstrom, the full priced or down says discount stores, we don't believe there's impact from dropping ivanka's fashion line. the retail ice ages the story of the day. profits were up but it is closing 140 stores was wall street likes that. the market is selling it off. down $0.09, 1.3% pennies all the way back to $6 per share. i would not want to be the owner of a shopping mall. liz: amazon sales are outstripping all the department store chains. news crossing just now, moving to an online strategy where you

order online. they are trying to shift to answer amazon and they have nike and adidas in their stores. stuart: the store becomes a warehouse, you order online, drive to pick it up and you are out of their in no time. that is fascinating. ashley: slow, behind the curve to say this is online. stuart: they are late to the game. liz: is that their lifeline? stuart: look at this headline, from the new york times. weakened democrats about to voters opting for total war on trump. come on in david webb in dc, you are at cpac. you are? >> right here in the big hall at the potomac ballroom. stuart: this is a gamble. looks to me like a democrat party base is running the moderates out of town. what say you?

>> democrats have opted for scorched earth theory. when they don't have a policy opposition, failed across the country at all levels and voted out almost en masse across the country except for urban centers, shows the desperation of the party. and a new york democrat who i will call out on your show, jeffries of new york who said steve bannon is a racist and should not meet with the cdc. you are a liar. i have known steve bnon longer than you will ever utter his name and it are you to face me on stuart varney and discuss how you present facts that call him a racist and that he is or you say that about donald trump. republicans for the longest time did not hit back against these democrats and opted for scorched earth and we are playing offense. stuart: the scorched earth policy could have successes.

if democrats in congress can delay over a long time the repeal and reform of obamacare and then delay tax cuts and the tax-cut package, you delay, you obstruct, that could be construed as a success and they will claim a success. >> you know who it fails? who it fails is the american people. obamacare is failing. it provided access subsidized by taxpayers, we are still paying for, the cost is out the window, the tax relief package helps all-americans because these businesses hire americans, not left or right, don't just hire republicans and as business grows, as hiring grows that benefits those very democrats that believe in the scorched earth theory. like the day without an immigrant. in america we never had a day without a legal immigrant. what we wanted is a day without criminal illegal aliens on our shores and we want law and order that benefits everybody, not

just republicans over democrats. let them keep driving themselves further left, to lead the party down the path of deruction, they destroyed the party of jfk, they have destroyed the reagan democrats, the blue coalition, trump has broken the blue wall and americans are saying we need america first, the sovereign interests and need to do it under the guise of helping the world. stuart: i do believe i know where you are coming from. david webb at cpac, thanks, appreciate it. totally different subject a totally different story, malaysia says a band nerve agent was used in the killing of kim jong un's half-brother seen on videotape. that is the half-brother who was killed. is this vx? ashley: classified as a weapon of mass destruction by the united nations. just a little drop of this on the skin can kill someone within

minutes. how was this brought in. and one of the attackers, and and it takes a little dab on the skin, absorbed very quickly, and you tie her up. feel like you are drowning. >> anybody who has got vx. >> a lot of chemical weapons. >> how to the chinese feel about it? and china can't be very happy.

>> because the conservative political action committee conference. president trump speaks from that podium, there it is. that is not president trump but that is the podium he will use an hour from now. we will take you there live. a question for everyone. would you invest in iraq. of market watchers says there is money to be made over there. you will hear from him later this hour. president trump laying out his case for a border tax, he says everyone else has one so why shouldn't we? maybe that is why the market is going to go down at "the opening bell". you will hear from the president on the border tax. video from china. tigers. i can't believe this. tigers snatched a drone out of the sky, ripped it apart. a fun fact for you. the collective noun for tigers, do you know what it is?

ambush. and ambush of tigers. that makes the point. more varney. bet you can't wait. at ardoing? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms wwith markeprofessionals andes, idthousands of other traders? i know. your brain told my brain bere you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade.

stuart: the white house at 12:00 noon president trump will sign an executive order on regulatory reform. what is this about? >> regulatory reform officers at all us agencies have taskforces as well, have to report to the white house about the cost benefit of every pool in place by their agencies. stuart: regulatory reform officers. liz: not czars, officers. stuart: president trump says a border tax could help create more us jobs. listen to this. >> i certainly support a form of tax on the border because everybody else, we are the only

country, has no border tax. >> market started to go down. that is one of the reasons a border tax there's a selloff this morning. he was at the manufacturer meeting. in that meeting of the border tax. >> as you know, we broke up into groups, it was involved in regulatory reform. and the tax reform is a very big issue for all manufacturers. the border tax issue is clearly an issue many people believe in or don't believe in. it is a divided group. stuart: a very divisive subject

at this moment, and generally in favor of a barter -- border tax as opposed to imports. are you a little worried that a border tax means a trade war. >> from my perspective we have to see that. and some following action, and the ramifications of manufacturing. and can't operate in a vacuum. stuart: you are gung ho, you are not going to do that. >> what is the reform around total manufacturing competitiveness. >> about of contention on the market. we will be done 80 points on "the opening bell". the companies that are represented. he is the next one, steve

bannon, chief strategist of the president, economic nationalism will be the president's focus. listen to what president trump said yesterday to the ceo of us steel. >> you are going to be doing pipelines now. you are entering the pipeline business because we approved the keystone pipeline and dakota but they have to buy meaning steel so i say us steel that steel made in this country. stuart: that is economic nationalism. >> i want american exceptionalism. if we can stay competitive, and compete in a global platform. and since the president have said that is focused on making our manufacturers more competitive, i'm encouraging to do as much as possible but not for nationalism.

i'm 4 american competitiveness. >> the ceo, chair, thanks for being with us. i got good news for anyone who doesn't like overpaying, proctor and gamble, and the gillette line as much as 20%, this does apply to the blades. this is the expensive stuff. former house speaker john weiner says a full repeal and replace of obamacare is not going to happen. we are on it, more varney after this. as a control enthusiast, i'm all-business when i travel... even when i travel... for leisure.

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stuart: former speaker of the house john weiner makes some headline saying republicans will never replace obamacare. they will fix obamacare. i shouldn't have called the repeal and replace because that is know what is going to happen. they are going to fix the flaws and put a more conservative box around it. if that was the case, i think you agree with that, they won't be able to repeal and replace totally, just change it. if that is the case it wouldn't

take very long. it will shorten the legislative schedule so there's still room for tax cuts before august. >> youth have to think of it as overly ambitious agenda, 6 months of repeal and replace obamacare. the problem with repealing and replacing obamacare is simple, too many conflicting interests when it comes to the controversial elements of the plan especially things like preexisting conditions, staying on your parents plan. i don't agree with john weiner on much of anything but what he is saying is the exact truth. if they are going to do this in 6 months they have to do it this way, fix it. hopefully there will be a complete repeal at some point. that is what trump wants but at this point this is the best they are able to do. stuart: so you can get tax cuts, very interesting, that will be good for the market. interesting. happening in the next hour

president trump about to speak at cpac. will his speech move the market? yet again history is about to unfold and you have a front row seat. on that podium president trump just a little later.

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♪ stuart: it is friday morning and for the first time in a long time i can tell you here and now, even before the market opens we are going to be down, down probably quite sharply. five seconds to go. [opening bell rings] remember we hit a 10th consecutive record high, we opened, we're down 65 right from the get-go. we're off. we're down below 20,800. i see only six dow stocks that are up at this point. the rest are largely lower. who is joining us on a friday morning? who do we drag in to cover the market on a friday morning? we have scott shellady. he is still in london. any moment now he will have a british accent. jeff sica is with us, a friday regular. ashley and liz, all together now. i say the market opened lower because president trump is speaking favorably about a border tax.

is that why this market is opened lower, scott shellady? >> i don't think so. i mean we can't hang on every single world that donald says unless it is about a phenomenal tax cut. the markets will do what they're going to do in the short term, stuart. we can't manage things day-to-day. that makes us crazy. in the long term again, go to three tenets of his policy, tax cuts, infrastructure spending and you don't want to fight the tape on this one. you just said just below 20,800. we were worried on hanging on to 20,000. we have so slow our roll. stuart: that is very true. thanks, scott. ashley: tax reform will take longer than expected. fiscal spending infrastructure spending will take longer. i don't think the market bought when steve mnuchin bought that we'll have something in place by august. the transportation index has fallen the last two days.

there is a bit of a canary in the coal mine. if you do big expansion and rail lines and everything else would benefit from that. they are falling on the belief this is overly ambitious. stuart: wow, inside baseball, ashley webster. liz: no buzzer. stuart: no buzzer. we were generous. >> i got a headache. stuart: zika? >> i think the border tax will be albatross on market and earnings and the reason why i believe thatrst of all we have a stronger dollar and a lot of these multinationals rely on efficient markets and low taxation in order to generate those profits. with we begin to see, we'll begin to see effects of the border tax in earnings report. that is it what the market is concerned about. stuart: if president trump at 10:20 eastern time this morning, downplays the border tax and plays up a rapid move towards tax reform, the market turns around.

that would be my opinion. what do you think? liz: i think so too. oil and gas companies will turn around that any increase in border tax will raise gas prices by 20 cents a gallon. $400 per household extra spending. stuart: politically tough to sell that. >> he promised us something phenomenal three weeks ago. when someone promises me something phenomenal i don't want to wait weeks and weeks to know what that is going to be. if he is going to say it we're waiting waiting with bated breath for him to reiterate. stuart: we're down 68 points in the very early going. there are quite a few losers we'll put on the screen for you. here is not necessarily the stock of the day but a company very much this the news, jcpenney. it will close more than 100 stores. i think this is part of the retail ice age. lizzie, what are they doing online? liz: they're pushing for their online strategy. you order online and pick up at stores. they're saying on line sales

will increase more than 20% of total sales next five years. that is their big push to be an online retailer. stuart: i know someone sitting right next to me says jcpenney is good buy. by that thing at $6 a share, this guy, zica. why are you buying jcpenney? >> the first thing they're taking cues from walmart. i think they're late on taking the cues. they paid a very big price but, what they're doing, by doing these radical closing of stores, cutting expenses, i think they're doing enough of it, and moving towards the online, i the stock has fallen too far in my opinion. stuart: scott, are you trying to get into this? >> yeah, you know what? i happen to be watching the show the other day when you had the ceo of box on, i believe. stuart: yes. >> numbers he was saying still done online today were very, very small in comparison to all retail sales.

if that is actually the case i think ceo is correct and i actually like him too. this is great idea by jcpenney. i think they're absolutely -- to jeff's point they might be a little bit late but it's a great idea. stuart: some of the bricks and mortar retailers like walmart who are transferring heavily online, their stocks have done very well. look at that, bucking the trend. nordstrom, t.j., home depot, walmart, they're bucking the bricks and mortar trend. they're doing well, in part because they have a strong online operation. liz: yeah. stuart: everything is going online. everything is. extraordinary stuff. now we're down 60 point. not too bad. not too shabby. we were down 70 now we're down 60. we'll see where we end up today, i will give you apple, very much a stock in the news. new iphone comes out later this year, there are reports that a lot of new technology in the new iphone is already on other phones. jeff, does, apple, does apple

have an innovation problem? >> oh they have way beyond an inno vision problem. basically they have created the swiss army knife of phones, that is what they think. so they have an innovation problem. they're rolling out new versions of old products. what they're giving us in terms of the incentives to buy this phone as they're steadily raising the prices to me are just not worth it. to me you have a company at all-time high, that is hinging all of its success on the sale of the new rollout, this is just a gigantic it cell phone company with a product that has competition an a product that's saturated the market. stuart: this is record-setting, this man dishes apple, largest and most successful technology company in the world and he loves jcpenney the declining ghost mall giant. very interesting. ashley: to your original point they're coming out with the new

phone, they are already on samsung. we talked about eye scanning to unlock your phone? remember that? samsung has that. liz: 3d stuff is already in the iphone. stuart: you're beating up on apple. ashley: having said that, apple has amazing brand loyalty, when you resell them get much better money than a samsung. many other benefits for the all the apps apple has, the apple environment is still very strong. stuart: shellady i can hear you talking all the way from london. what do you have to say? >> once again, stuart, i have burden of common sense. talk about how expensive the next phone will be 1000 bucks. it better give me a back massage and foot ma sass knowledge a thousand bucks. stuart: an a cup of tea. >> so jeff's point they turned themselves into utility. if they want to do something, turn themselves into a label. that you want to have it instead of have to have it. start putting diamonds and gold

on these things rather than 3d cameras. stuart: the brit have got to you, shellady. they really have. we were down 70 odd points. we're down 50. 20,075, that is hardly a selloff. by the way when did we assume that if the market goes straight up as it has, it must come straight down? since when? you can have a pause. ashley: sure. stuart: you can have two, 3% drop. that is not a crash. ashley: a breather. stuart: people assume if it goes up like that, and has to go down the same way. liz: they take the escalator up and elevator down they think. stuart: alphabet's wamo, self-driving car unit, sued uber over allegations of technology theft. alphabet is down half a percent. revenue fell at the china search giant, baidu, hurt by a government crackdown on health care advertising.

the stock is down 4% right there. hilton worldwide, stock buyback scheme, a bill dollars worth of stock being bought back. it may change its name, the corporate name, to hilton, inc., effective next month. not much change in the stock. 11-cent is all they get. next case, president trump speaking at cpac next hour. adam shapiro come in, what is the buds on the floor? reporter: give you direct quote from different traders we've been talking emailing. jonathan corpina saying obviously traders will watch the president's speech today but i don'think he will y anything at will rail the market rally. scott told us there is lots of rhetoric circling how the market wants more nuts and bolts details from president trump, rather than tweets. we got this one from harry shapiro. the market needs a rest. this is great run and normal correction of 3 to 5% is in order. after a short rest i think we'll

pass 21,000 later in the year. they look to talk about taxes but he details. he said the border adjustment tax was complicated, then there was this will increase jobs. if they get details, one trader told me this market closes up today. stuart: we shall see, 10:20 he speaks. adam, thanks very much indeed. >> dollar shave clubs they have taken a bite out of gel lit, for example, the parent company there is proctor & gamble. they're responding by cutting prices. everybody in the meeting this morning said that razors are very expensive. well, they're going to cut the price. not just the blades, not just the razor itself. ashley: the blades. stuart: they give you the razor. it is blades are coming down in price effective march. liz: stock to watch. nelson peltz, estimated $3.5 billion stake. stuart: unless son peltz has 3.5 billion in proctor & gamble? liz: to shake it up. stuart: that is a huge bite to take out. you look proctor & gamble, sica. >> i think they're making right decision but like anything else they're late.

explains the beard trend. a lot of people can't afford spend $20 for their blades and decide to grow beards to save money. so you know -- stuart: you didn't have a shave this morning. you did not. >> no. i had a beard for a lot of years. stuart: did you? >> yeah, yeah. stuart: because you're on tv, so you don't have a beard. >> it was turning gray so i decided to get rid of it. liz: when you were a bear. stuart: you think investors don't trust a guy with a beard? >> that is what i was told. can't have a beard on tv. stuart: next case. >> some day i will have a long one when imright. stuart: u.s. steel and other infrastructure stocks were down yesterday on speculation that the infrastructure plan could be delayed until next year. no bounceback this morning by the way. all right we've got the dow down now only 43 points. it is 9:41. time for me to say good-bye to scott in ldon. he is off for a pint at the local brew house, i'm sure. >> absolutely. stuart: i remember those days. jeff zika, thanks very much

indeed. we're down 41 points. that's it. we were down 70. now we're down 41. is this a comeback. everybody waiting to see what president trump has to say. in our next hour you will hear it. president speaks at the conservative conference in maryland. we'll obviously take you there. you will watch it live when it happens. front row seat for everyone. first a question, would, would take your money -- get this right. would you take your money and invest it in iraq? someone who is doing just that says there is money to be made there. we will discuss that in a moment. ♪

stuart: we were expecting a selloff this friday morning.

didn't really get it. down 4points. you can't call that a selloff on a 20,000 industrial average. we're down 43. foot locker one of the bright spots in the retail business. nice profits from foot locker. hewlett-packard enterprises, that is a software company basically, not to be confused with the hardware side of things, the company cut full-year profit forecast and way down, a loss of 8% there. check this out, our next guest says iraq is a huge investment opportunity. there is money to be made he says. an old friend of the company, and the program, northern gulf partners cofounder. welcome to the program. >> thank you, stuart, great to be back. stuart: first question, how do i do it? i'm a small retail investor, if i want to put my money in the iraqi stock market how on earth do i do it? >> for retail investors it is fairly easy to set up with

baghdad-based local stockbroker. stuart: that is not easy. i don't know a baghdadi-based local stockbroker. i don't think many people do. >> that is good point, stuart. there are fairly easily found. there are and haful doing it for six or seven years. i haven't heard any horror stories, the investment picture hasn't been great in the last few years, in terms of setting up accounts with local brokerage as it has been smooth for investors. stuart: okay. >> i run a small, with a partner, a small fund for partners and close friends of my firm. stuart: why should i put my money in iraq? >> well, i don't know that i'm here to tell anyone why they should do it but i can say why investors are increasingly doing it and why some of the world's biggest companies are doing it. three years ago today iraq was probably the fastest-growing important economy in the world. it was home to the early stages

of the largest natural resources development program anywhere in 50 years. then came isis, in very regrettable u.s. vacuum. stuart: right. >> isis is on the back foot, clinging to its last corner of territory and iraq is once again shown its resilliance. the oil price has almost doubled since this time last year. the stock market is up more or less 50% in the last six months. and so the nxtcomm back is happening. stuart: forgive me, but i don't think i get my money out. i don't think if i set up some kind of a account and put my money in, that i would get a 50% return over the last six months. i just don't believe that. >> i respect that a lot, stuart, i'm certainly not here to sell it -- stuart: but you come across that response frequently, i'm sure? >> sure, sure. for experienced, emerging markets specialists, for globally-minded investors of a

contrarian nature i think it is a an interesting opportunity right now. >> that is a an interesting niche market. i'm out of tum but that was interesting. and come back to see how things go. bartel bull, everyone. the next case, the market, we're down 46 point for the dow industrials. we have 10 or 11 dow stocks are up. the rest are on the downside. president speaks around 10:20. that could move the market depending on what he says, we'll be back. accounts, so let's get together and talk, and make sure everything's clear. yeah, that would be great. being proactive... it's how edward jones makes sense of investing. if over time it can lead todry cavities and bad breath. that's why there is biotene, the # 1 dry mouth brand recommended by dentists. biotene. for people who suffer from a dry mouth.

stuart: senator john cornyn, is a republican, and is from texas. he says a border wall makes absolutely no sense in areas along the southern border with mexico. come on please, the governor of the great state of texas, republican greg abbott. sir, senator cornyn toured the southern border and says the wall mak no sense in some areas. what's your response to that? >> well i think the comment needs to be understood in context. remember this, stuart, this past year alone off anrage there were more than a thousand people coming across the border illegally every single day. what we found a border wall is

effective tool to deal with that illegal immigration. i think what the senator is talking about what new homeland security secretary john kelly when the secretary and i were on the border. we need a multitiered process on the border. a component of that is a wall. another component is more boots on the ground, more border patrol agents. another component are air-based assets so we see what is taking place on the border. the bottom line we need all of the above if we're going to adequately secure our border. stuart: the goal is control the border. stop the flow, control it by whatever means you ever got available, that's the goal here, isn't it? >> precisely, stuart. remember a fundamental responsibility of the united states of america is to secure our sovereignty, that means securing our border, using whatever means are necessary to accomplish that task. stuart: okay. next one, governor. president trump is, he says a border tax will create more jobs

in the united states. it seems like the esident is for a bord tax. well, texas is on the border. are you inavor of that border tax yourself? >> well understand this, stuart, if you look at the what the president has said over the past 24 hours, especially with the business leaders he was working with yesterday, this is a work in progress where congress has a proposal, the president is weighing in on what he suggests as potential modifications of that proposal. here is what we do know. we have a president who is a great businessman. we can count on this president to make a good business decision beneficial to the united states of america, beneficial to american workers, beneficial to american companies, and that requires just getting in there and figuring out what would be the right strategies that would benefit americans. stuart: i think investors would like to hear the governor of texas who has a great deal of clout turn around and say, you know, not so sure i really like

this border tax because that is what, investors don't like it at all. you're not prepared to say that governor? >> well understand this, stuart, that is mexico is our largest trading partner. i think on average we may have about a billion dollars worth of trade every single day. what i do know is the fact that a deal will be struck in a way that will be beneficial to texas trade, beneficial to american trade. here is what we do know, stuart. that is, nafta simply is outdated. anytime you have an agreement that is decades old, that is time to refresh it. that is exactly what the president is going to do. wean always be smarter and better. that is the pathway we'll go down in ways beneficial to american companies. stuart: president trump wants to get rid of sanctuary cities, i believe he signed an executive order to that effect or at least trying to get there. are there any sanctuary cities left in texas, and if so, can you get rid of them? >> the answer is yes, and yes. the, seat of government in the

state of texas is austin, texas. the county for austin, texas, is travis county of the travis county sheriff announced sanctuary city policies. i said we're not going to have any of it. i told the sheriff if you want to be a law enforcement officer you have to enforce the law in the state of texas. so what i did as governor is, i removed $1.5 million of grant money that was going to travis county, now we have worked on a piece of legislation already passed the texas senate that will impose real penalties on any sanctuary city policies that will impose fines, could impose jail time for this sheriff who is refusing to jail dangerous criminals here illegally, rather than turning them over to i.c.e. stuart: governor, i get the distinct impression, that texas is the exact opposite of california. texas appears gung-ho for trump. california, not. i just seeing the president there, we just got him on tape. this is moments ago. this is in washington, d.c.

he is leaving the white house, i believe on his way to the cpac conference. he speaks about a half hour from now. am i right, governor, texas gung-ho for trump, exact opposite of california? >> california and texas are polar opposites. california believes in the power of government. texas believes in power of freedom and individual. california believes in heavy-handed regulations. texas beliefs in reducing regulations the california believes in sanctuary city policies led to the murder of kate steinle, i will not allow acts of crime li that in the state of texas, why i'm leading the way in banning sanctuary cities in texas. stuart: governor greg abbott, republican, from texas. thanks for joining us. >> thank you, stuart. stuart: as you can see on the left-hand side of the screen the president leaving the white house there. he is on his way to the cpac conference. won't take long to get there. he has marine one available. he will chopper over there and

descend the steps and off he goes to the place where he will deliver the speech. we have the podium on the air a few moments ago. by the way i can see the market coming back. it was down, what0 odd points in the very early going? now we're down 30. coming back a little bit. i think the market will be looking very carefully at what president trump says about a half hour from gnaw -- now. if he comes out and says anything about you have to have a border tax, if he says that i think the market goes down. liz: he was optimistic about one. he turned around, initially said it was complicated. yesterday he said it was good. about noon he will soon the executive order installing the regulatory reform officers at federal age a sis -- agencies. we'll wait for desays about that government worker rules are working on rules that hurt private sector workers an manufacturing jobs.

he met yesterday with two dozen manufacturing leaders. stuart: politics and money are pretty much intertwined. left hand sign you see politics, president getting in marine one, off he goes to make a speech. we're a live action presidency. we're a live action news show. you follow it and see reaction of money on your screen. liz: what a 180 when president donald trump went to. consider pack and trailing behind marco rubio and ted cruz at c pack. stuart: he didn't appear last year. liz: approval ratings at cpac meeting. stuart: now this for you, please. steve bannon, i think he just defined this presidency. president trump he says has an agenda of economic nationalism. that would deconstruct the administrative stuff. strong stuff. let me give you axplanation. men's america first, end power of government bureaucracy. that really is a revolution.

it certainly a repudiation of the last eight years. economic nationalism means changing long established agreements. putting american interests first. border tax, punishes imports, favors exports that is would be economic nationalism. the pipeline, use american style. that is economic nationalism. approval or not, fundamental refirstal of policy. president obama wanted to be the president of the whole world. he is a internationalist. trump is not. how about this, deconstruction of the international state, fix that, chop it back says bannon. that is why we have president trump executive orders rolling back some of bureaucracy rules. why scott pruitt was chosen to rein in the epa whose rules intrude into so many aspects of life.

steve bannon has not said very much in public. but his appearance before the conservative conference thursday, laid out the trump philosophy, clearly and concisely. what is the action from the left? how about this from the guardian? this is socialist newspaper in britain. bannon lifts the his mask of death. it is not a pretty sight. i think you get the point. minutes from now president trump addresses that same conservative conference. america first, dismantle the bureaucrats power. with that he redefines conservatism and the republican party. the second hour of "varney & company" is just beginning as the president takes off. there you see it. he is off. that is marine one, heading out to maryland, very close by of course. very short hop. and that is where he will address the conservatives at cpac. now, numbers just coming in to us, new home sales. this is not existing homes. this is new home sales. who has got them? ashley: up 3.7%.

coming in at annualized rate of 550. that missed estimates just a little bit. it was also down in december because we had a rate hike in november. however new home sales very important, perhaps more so than existing home sales, you have to fill them with furniture. you have to put in washers, driers and refrigerators. so they have a ripple effect in the economy. stuart: it is an improvement. ashley: year over year an improvement. stuart: the market likes it, we're down 20 points. that's where we are. there is another number. what is this one? liz: university of michigan consumer sentiment coming in better-than-expected. the mood on main street 96.3. the estimate was 96. the mood is picking up a little more optimistic. stuart: i'm laughing, to mine immediate right, not politically but geographically. juan williams is trying to suppress a yawn expresses increase in consumer sentiment which he will deny category or

say it is the result of president obama. we'll get to juan in just a moment. ii want to talk economic nationalism. tammy bruce. welcome to the show. >> i'm not yawning. stuart: wide-eye'd. economic nationalism, he said it. he is the president and actual guru. that seemed to me to define the new republican party. >> yeah. stuart: it defined conservatism, it he defines donald trump. >> well look, it is the actual conserve ideal. the problem with the current republican party it is bureaucratic this phrase brinks in everything we understand. this is about the economy and america first. so it brings that in. when you say it is about redefining conservatism. i disagree. conservatism is about small government. freedom bought to you by taking the boot of government of your neck. that is about deconstructing the administrative state. it is created.

it's a monster. their pledge to bring that back. it is going to be fabulous. the president's speech today will be great and america will be better off for it. stuart: ashley, you got something? ashley: he talked about a new political order, steve bannon. we're a nation with an economy. not an economy in a global marketplace with open borders. that is interesting way of phrasing it. new political order. stuart: there is the cpac podium. the president speaks from that podium i'm guessing in 20 minutes time and you will see it. ed butowsky is with us. ed, i think sticking point for the stock market at this moment is the border tax. the president likes it and wants it. so do a lot of house they want the border tax. i don't think investors want to touch it with a 10-foot poll. what say you? >> no. agree with you, stuart. the market definitely gotten way ahead of itself and consumer sentiment as liz said, that is a positive number.

so people are really excited. the border tax will be a problem. it will be a big problem economically for all businesses an individuals as well. take money out of our pocket versus what bannon was saying, basically the night nationalism, economic national i, that is putting money back into our pocket. that is contradictory to what bannon said. i do not like the border tax and don't believe for a moment it will get passed. stuart: i agree. i don't see how it will happen and get that through very quickly in congress. >> not at all. stuart: we had two signs of growth. ed, want your comment on this. new home sales up about 3% i think it was. consumer sentiment increasing, improving shall we say. i see signs of growth here before we even got tax cut and infrastructure package all the rest of it. i see signs of growth. what say you? >> we're seeing optimism and we're seeing growth in the stock market but the numbers aren't supporting it just yet. three years from now all these

numbers will be supported. it will take a little bit of time, and i'm telling my clients, telling everybody, don't get ahead of yourself because you have to have the numbers there. 3.7% growth on housing was a little under what we had expected. you will continue to look at the gdp number. it will not be as quick as people want it. so stuart, we're ahead of ourselves. now optimism, hey, it is in my household. i have can't tell you how much stuff is coming into my house right now. optimism is absolutely there, stuart, without question. the numbers aren't there yet. stuart: i have to tell you, ed, on left-hand side of the screen moments ago we had a view of the crowd of cpac with my friend lou dobbs, my colleague for 40 years, for heaven's sake. he was getting mobbed by the crowd. they really like this guy. way to go, lou. get back to the aforementioned juan williams ceased his yawning fit. he is with us. we livened him up with the talk of president trump and market.

>> here i am. i'm a wake. awake. stuart: you're hardest working man in television. you're entitled to yawn. >> all these numbers pour in, this is live television, it is live, the markets are reacting, from some of us who are not so plugged in it is like, wake me when it's over. stuart: we don't flood our viewers with endless numbers. >> not at all, not at all. only numbers of significance. that's true, yes. stuart: exactly. new home sales are up. consumer sentiment is up. small business confidence at a 12-year high. i suppose that is all because of president obama? >> finally find a point of agreement. yes obama handed trump a great economy. he have handed him a recovering economy, high consumer confidence, high stock market and it has continued to grow. stuart: we'll get nowhere on that particular subject so let's change the subject. >> absolutely go to the alternative facts because the truth is so troubling to stuart.

stuart: that is pretty good, juan. i say 15-0 to you at the moment of. i give you that. how about the front page of "the new york times" they're saying the people in the street, i mean the base, put all-out war, that is what the base wants -- >> democrats. stuart: democrats base, they want all-out war, headline in the new york time. all-out war. i keep saying it. [laughter] do you approve of this? >> do i approve of it? stuart: all-out war from the democrats in congress. stop everything. undermined everything. >> in fact i think it is democrats, democratic base is pushing the democrats in congress to this position. stuart: yes. do you approve of that? >> yes. i think what the democrats across the country fear -- stuart: you do? >> that trump is an autocrat and doing whatever he wants without consulting congress, without considering needs of the american people. i think even john boehner said when it comes to health care reform, this is, he said he was laughing. this is just not going to

happen -- stuart: pushes your party on to the fringe? if the base takes over and they want absolute destruction of anything to do with trump, and impeach him to boot, i don't think that bodes well for 2018 and the elections, especially the 10 democrat senators who are up for re-election. some of whom are come from states which trump won in the general election. >> won huge. stuart: they're not going to be happy. >> huge wins for trump. but the point is right now, among the people running for the chair of the democratic national committee, they all committed to the idea they're not even pushing challengers in those states. they're not pushing those senators, members of congress who are in trump districts. stuart: they're 10 up for re-election. they will not get reelected if the base runs whole show and takes them far left. >> i think they can get reelected. i think they're popular. there is a challenge. clearly geography favors

republicans in growing their majority in the senate. stuart: challenge? that -- liz: you know how dangerous it is for the democrats going hard left? the 10 democrats in states that trump one, that means republicans would have filibuster-proof majority in the senate. they can't even stop the freight train that is the republicans. gallup poll showed 70% of the americans identified themselves as moderate or conservative. the democrats yanked themselves so far left, they're cuting new trump voters. >> look at approval numbers for president trump. they're down. they're down to the point where liz: what is democrat answer, investing in the middle class these vague ideas? >> i think democrats are pretty clear on terms of some of the issues stuart was talking about earlier. border tax. guess what? democrats don't favor that. used to be republicans didn't favor it either. liz: a lot of them don't. stuart: i want to give you some rather nasty media reaction to steve bannon's cpac appearance yesterday.

this headline from "newsweek." at cpac, priebus and bannon offer red meat, ominous hints. that is not. opinion piece running in the guardian, that is crazy left-wing socialist paper in britain. steve bannon lifted his mask of death at cpac. it wasn't a pretty sight. here is the drop line, at a rare public address he let us peek at the darkness that resides inside the west wing. ashley: is he darth vader? stuart: well, i used to know that paper quite well. ashley: yes. stuart: this from opinion piece in the "new york times." at the conservative action conference fringe elements were once shown the door. now they occupy the white house and are getting a group hug. fringe? , tammy. >> yeah obviously not. this is the new earn sensibility. something all americans agree on that they want jobs. they want their savings accounts back. they want to be able to know the future for their children. they want security. they want safety.

all of these things are, why president trump was elected and it is a sentiment not just of course of republicans but of the independents who voted for him and if the democrats like in boston, in massachusetts and in pennsylvania who went over by the thousands switching from being democrats to republican, to vote in that general election for president trump, that is, as liz has said, it is only going to continue. we'll he see it empty midterm. look, americans, if they win, at one point i think it was kellyanne conway who said the importance and value to the american people transcends party. so i think donald trump is presenting himself as an independent who can relate to everyone across the board. at this point he can. stuart: not fringe? >> nope. stuart: juan williams, if, if i say, that the people who are born men should use the men's room -- >> here we go again. oh, no. stuart: people born women should

use lady's room, am i a bigot? >> no. ashley: next? >> not well-informed about the issue i think you want to debate, not a big got. stuart: should high schoolgirls have to use a shower in the presence of a strange man who says he identifies as a girl? >> stuart what is going on with you this morning? stuart: what is going on with you leftists? >> who would say such a thing is right or normal. that is out of imagination. obviously that is perverse. stuart: what is perverse? >> you want girls in a high school gym setting in front of a man, what are you doing? stuart: well isn't that the bathroom law that president obama wanted to introduce at federal level? >> this is so sad because i think you mislead the viewers. we did this last week. obviously you're not learning quickly. we'll have a repeat lesson today. this is a about transgendered people being able to use the bathroom of the sex they identify with. stuart: right. >> that is it.

it is not about little girls being seen by some pervert. stuart: it is not? >> no. stuart: it doesn't open up that opportunity or possibility? >> believe me that possibility is open right now and those people belong in jail or under the jail. stuart: it is not open right now, regardless who you identify with, you go to the bathroom of -- >> if you're a criminal, if you have criminal intent, if you have somel deviance guess what -- stuart: opens door for you, doesn't it? >> i would hope you would be arrested. stuart: i just like to dedemocrats in the year 2018 go to voters and say, we demand this bathroom law. we're standing on the bathroom law. i think you'd lose. >> oh, yeah? guess what, caitlyn jenner, young lady whose name i forget who sang with president trump at inauguration have been pretty clear. betsy devos, new secretary of education the federal government has obligation to protect the rights of students, including students who may be transgendered, just as they

protect the rights of disabled students. stuart: so everybody else has to change and thousands of years of history have to be changed and negated? >> oh i, boy. stuart: please, you democrats, go to the country on that issue. let's vote on it, shall we. i would be -- >> vote about, let's vote on gays and same result. what about black people? come on. you don't vote on human rights. you don't do that, stuart. stuart: okay. so just imposed upon us. >> it is not imposed. it is right. stuart: they are telling me i have to close this discussion out because -- >> because you've won again. stuart: basically i did. >> every week it is such a thing. imagine that, far right tea party, they go right into the fringe and then win an election. stuart says, democrats, don't do it. stuart: don't destroy my ratings. they are really strong at the moment. don't kill them. >> pretty soon they will be like trump's approval ratings, in the tank.

stuart: if you're not careful. hold on. i have got serious news as apart from juan. the snap ipo. ashley: no bathroom issue here. stuart: what have you got? ashley: apparently reports, they will price this, going public next week. it will be priced on wednesday. begin trading on thursday at the new york stock exchange. there are underwriters telling investors that the deal is overis subscribed in the price range of 14 to $16 per share. there is lot of criticism of this company. where is your growth coming from? you're not making money. however, the report is they are oversubscribed. a lot of interest. >> liz: means you can't get in. ashley: can't get in, yes, even though you don't get any voting rights. stuart: ed, serious money subject, snap, march the 2nd. ashley: that is when it starts trading. stuart: that would be next week actually. what, have you got on this ed?

>> stuart, a lot of companies have bonn public in my career, individual investors will get five to 7% of the offering. the rest is going to big institutions. i would never get close to buying the stock, even if it jumps up the first day. the way to ask yourself, if i had $30 billion in cash would i buy a company with no earnings? not a chance in the world. i don't see a forecast in the future how they make money. it is so overvalued, run away from this thing, even if it jumps up, this thing will end up down like twitter after it ipod. stuart: i'm reluctant to ask juan williams on snapchat. i have a couple minutes before the president speaks so why not. would you buy snap if it goes public, buy shares in it next week, 14 to $11 a share. do you know what snapchat is. >> i know what snapchat is. i have children. stuart: and the grandchildren. >> i understand what you're saying, but i think the potential is tremendous.

i worry i would not get in on the ground floor. stuart: hold on a second. left-hand side of the screen. matt and mercedes schlapp, taking the podium. they will be introducing the president who is due to speak in just a couple minutes time. the audience stand up, applauds. >> did you all show up for us? ashley: did you all show up for us. stuart: mercedes was on the show monday morning. she was on the show very recently. they're having a bit of fun at the expense -- yes, they have five children by the way? let's listen in for a second. >> first year, ronald reagan in 1981! [cheers and applause] >> wait. okay. so that means the 1980s, i'm pretty sure they didn't have twitter back then. but, just like the 1980s -- stuart: momentarily they will

introduce the president, who has arrived in the building i believe. at this moment the dow jones average is down 60 odd points. when the president starts to speak we'll mark it down. where is the dow industrials. where are the dow industrials when the president begins his presentation. if he has any mention of the border tax, one way or the other, that would move the market. if he has any mention of the schedule for getting the tax cutting bill through congress, and on to his desk, if he mentions that, favorably, if the schedule is on pace, then you will see the market move. if he mentions taxation, the border tax or personal income tax cuts, you are going to he see a market move on this. i suspect, it will nudge it one way or the other. liz: i think you're absolutely right and john boehner made some really interesting comments about obamacare reform, that they are going to fix it. it is not a lost cause. you can fix it. john boehner showed the way. give the states more power over

the health exchanges. do block brands grants of medicaid. with tax reform and get obamacare reform done, it is doable. john boehner did show the way out. stuart: what john boehner had to say would not make conservatives happy. ashley: no. stuart: but it would make investors happy. ashley: yes. stuart: because john boehner said look, fix it. tinker with it. don't repeal an reform the whole thing. you haven't got time. liz: he is common sense. in my 25 years i never seen any republican come up with a replacement plan that they all agreed on. and that is the problem with republican party. that is reason why john boehner is the former speaker because there is a new sheriff in town. they do know how to do it. this is what we want to have done. we've rejected the old gop, the republican party that couldn't get anything done. now they can. stuart: okay. raucous applause. the president has taken the stage. let's listen to this. ♪

♪ i'm proud to be an american where at least i know i'm free, and i won't forget the men who died to gave this life to me, i gladly stand up, next to you and defend her still today, but there ain't no doubt i love land, god bless the usa ♪ >> thank you, everybody. so great to be with you. thank you. [cheering] great to be back at cpac. [cheering] the place i have really, i love this place. [cheering] i love you people. so thank you. thank you very.

first of all i want to thank matt schlapp and his very, very incredible wife and boss, mercedes. who have been fantastic friend and supporters and so great when i watched them on television defending me. nobody has a chance, so i want to thank matt and mercedes. [cheers and applause] and when matt called and asked, i said, absolutely i'll be there with you. i mean the real reason i said it, i didn't want him to go against me, because that one you can't beat. so i said, absolutely, and it is really an honor to be here. i wouldn't miss a chance to talk to my friend. these are my friends. [cheering] and, we'll see you again next year, and the year after that,

and i'll be doing this, i'll be doing this with cpac whenever i can and i make sure we're here a lot. if you remember my first major speech, sit down, everybody, come on. you know, the dishonest media, they will say, he didn't get a standing ovation. you know why? , no you know why? because everybody stood and nobody sat. so they will say, he never got a standing ovation. right? [cheering] they are the worst. >> usa. usa. ussa! usa!. [cheering] so this is, sit down.

donald trump did not get a standing ovation. they leave out the part, they never sat down. they leave that out. so i just want to thank you. but you know my first major speech was at cpac and, probably five or six years ago, first major political speech, and you were there and it was, i loved it. i loved the commotion. they did these polls where i went through the roof and i wasn't even running, right? but it gave me an idea. and i got a little bit concerned when i saw what was happening in the country. and i said, let's go to it. so it was very exciting. i walked the stage on cpac. i will never forget it, really. i had very little notes, and even less preparation. so when you have practically no notes and no preparation, and then you leave and everybody was thrilled, i said, i think i like

this business. [laughter] i would have come last year but i was worried that i would be, at that time, too controversial. we wanted border security. we wanted very, very strong military. we wanted all of the things that we're going to get, and people considered that controversial, but you didn't consider it controversial. [applause] so, i've been with cpac for a long time. all of these years we've been together and now you finally have a president, finally, took you a long time. took you a long time. [cheers and applause] and it is patriots like you that made it happen, believe me, believe me. you did it because you love your country, because you want a better future for your children, and because you want to make america great again. [cheering]

the media didn't think we would win. >> fake news! >> the pundits, you're right, they had an idea. the pundits didn't think we'd win. the consultants, that suck up all that money, oh, they suck it up, they're so good. they're not good at politics but they're really good at sucking up people's money. [laughter] especially my opponent's because i kept it down to a minimum. but the consultants didn't think but they all underestimated the power of the people, you, and the people proved them totally wrong. [applause] never -- and this is so true, and this is what's been happening -- never underestimate the people. never. [cheers and applause]

i don't think it'll ever happen again. and i want you all to know that we are fighting the fake news. it's fake, phony, fake. [cheers and applause] a few days ago i calle the fake news the enemy of the people, and they are. they are the enemy of the people. [cheers and applause] because they have no sources, they just make 'em up when there are none. i saw one story recently where they said nine people have confirmed -- there are no nine people. i don't believe there was one or two people. nine people. and i said, give me a break, because i know the people. i know who they talked to. there were no nine people, but they say nine people. and somebody reads it, and think think -- and they think, oh, they have nine people. they make up sources. in fact, in covering my comments

the dishonest media did not explain that i called the fake news the enemy of the people, the fake news. they dropped off the word "fake." and all of a sudden the story became the media is the enemy, they take the word "fake" out, and now i'm saying, oh, no, this is no good. [laughter] but that's the way they are. so i'm not against the media, i'm not against the press. i don't mind bad stories if i deserve 'em. and i tell ya, i love good stories, but we won't -- [laughter] [applause] i don't get too many of 'em. but i am only against the fake news media or press. fake, fake. they have to leave that word. i'm against the people that make up stories and make up sources. they shouldn't cu allowed to use sources unless they use

somebody's name. let their name be put out there. let their name be put out. [applause] a source says that donald trump is a horrible, horrible human being. let 'em say it to my face. [cheers and applause] let there be no more sources. and remember this, and not in all cases. i mean, i had a story written yesterday about me in reuters by a very honorable man, it was a very fair story. there are some great reporters around. tre are talented, they're honest as the day is long, they're great. but there are some terrible, dishonest people, and they do a tremendous disservice to our country and to our people, a tremendous disservice. they are very dishonest people, and they shouldn't use sources. they should put the name of the person. you will see stories dry up like you've never seen before. so you have no idea how bad it

is, because if you are not part of the story -- and i put myself in your position sometimes, because many of you, you're not part of the story. and if you're not part of the story, you know, then you sort of know if you are part of the story, you know what they're saying is true or not. so when they make it up -- and they make up something else, and you saw that before the election, polls. polls, the polls. they come out with these polls, everybody was so surprised. actually, a couple of polls got it right. i must say los angeles times did a great job. shocking because, you know? they did a great job. [applause] and we had a couple of others that were right. but generally speaking, i mean, i can tell you the network. somebody said a poll came out, and i say, what network is it? and they'll say a certain -- let's not even mention names, right? [inaudible conversations]

[cheers and applause] >> well, we had a lot of them. look, the clinton news network is one. [cheers and applause] totally. take a look. finish -- honestly, take a look at their polls over the last two years. now, you'd think they'd fire the pollster, right? after years and years of getting batter ored. but i don't -- i mean, who knows? maybe they're just bad at polliing or maybe they're not legit. but it's one or the other. look at how inaccurate, look at cbs, look at abc, look at nbc also. they're so inaccurate. and what that does, it creates a false narrative. it creates this narrative that's just like, we're not going to win. and be people say, oh, i love trump, but i'm not feeling great today, he can't win, so i won't go and vote. it creates a whole false deal, and we have to fight it, folks.

we have to fight it. they're very smart, they're very cunning, and they're very dishonest. so just to conclude, i mean, it's a very sensitive topic, and they get upset when we expose their false stories. they say that we can't criticize their dishonest coverage because of the first amendment, you know? they always bring up the first amendment. [laughter] and i love the first amendment. nobody knows --ç loves it bettr than me, nobody. [cheers and applause] i mean, who uses it more than i do? [applause] but the first amendment gives all of us, it gets it to me, to you, to all americans, the right to speak our minds freely. it gives you the righting and me the right to criticize fake news and criticize it strongly. [cheers and applause] and many of these groups are part of the large media

corporations that have their own agenda, and it's not your agenda, and it's not the country's agenda, it's their own agenda. they have a professional obligation as members of the press to report honestly. but, as you saw throughout the entire cam rain and even -- campaign and even now -- the fake news doesn't tell the truth, doesn't tell the truth. so just in finishing, i say it doesn't represent the people, it never will represent the people, and we're going to do something about it because we have to go out, and we have to speak our minds, and we have to be honest. our victory was a win like nobody has ever seen before. [cheers and applause] and i'm here fighting for you, and i will continue to fight for you. the victory and the win was

something that really was dedicated to a country and people that believe in freedom, security and the rule of law. [cheers and applause] our victory was a victory and a win for conservative values. finish. [cheers and applause] and our victory was a win for everyone who believes it's time to stand up for america, to stand up for the american worker and to stand up for the american flag. [cheers and applause] yeah, there we should stand up. come on. [cheers and applause] there we should stand up. okay. [applause] and by the way, we love our

flag. by the way, you folks who are in here, the place is packed, there are lines that go back six blocks, and i tell you that because you won't read about it, okay? [laughter] but there are lines that go back six blocks. there is such love in this country for everything we stand r. you saw that on election day. [cheers and applause] and you're going to see it more and more. so we're all part of this very historic movement, a movement the likes of which, actually, the world has never seen before. there's never been anything like this. there's been some movements, but there's never been anything like this. there's been some movements that petered out, like bernie. petered out. [laughter] [applause] but it was a little rigged against him, you know? superdelegate. superdelegate. she had so many delegates before the thing evenç started, i actually said to my people, how does that happen?

[laughter] not that i'm a fan of bernie, but a lot of bernie people voted for trump, you know why? because he's right on one issue, trade. he was right about trade. our country is being absolutely devastated with trade deals, so he was right about that. but we got a lot of bernie's support, so actually i like bernie, okay? i like bernie. [applause] but i'm here today to tell you what this movement means for the future of the republican party and for the future of america. first, we need to define what this great, great, unprecedented movement is and what it actually represents. the core conviction of our movement that we are a nation that putnd will put its own citizens first. [cheers and applause]

>> usa! usa! usa! usa! usa! >> for too long we've traded away our jobs to other countries, so terrible, we've defended other nations' borders while leaving ours wide open, think about can come this. anybody can come in. oh, we're going to build a wall, don't worry about it. we're building the wall, we're building the wall. in fact, it's going to start soon. way ahead of schedule. [cheers and applause] way ahead of schedule. [cheers and applause] way, way, way ahead of schedule. it's going to start very soon. general kelly, by the way, has done a fantastic job, fantastic. [applause] the job he's done.

and remember, we are getting the bad ones out. these are bad dudes. we're getting the bad ones out. okay? we're getting the bad -- if you watch these people, it's like, oh, gee, that's so sad. we're getting bad people out of this country, people that shouldn't be whether it's drugs or murder or other things, we're getting bad ones out. those are the ones that go first, and i said it from day one. basically, all i've done is keep hi promise. [cheers and applause] we've spent trillions of dollars overseas while allowing our own infrastructure to fall into total disrepair and decay. in the middle east, we've spent as of four weeks ago $6 trillion. think of to it.

think of it. and by the way, the middle east is in what -- i mean, it's not even close -- it's in much worse shape than it was 15 years ago. if our presidents would have gone to the beach for 15 years, we would be in much better shape than we are right now, that i can tell you. [applause] be a hell of a lot better. we could have rebuilt our country threp times with that money. this is the situation that i inherited. i inherited a mess, believe me. we also inherited a failed health care law that threatens our medical system with absolute and total catastrophe. now, i've been watching, and nobody says it, but obamacare doesn't work, folks. i mean, i could say, i could talk, it doesn't work.

and thousand -- now people are starting to develop a little warm heart. but the people that they're watching, they're not you. they are, largely, you know, many of them the side that lost. they lost the election. how many elections do we have to have? they lost the election. [laughter] but i always say obamacare doesn't work. and these same people two years ago and a year ago were complaining about obamacare. and the bottom line, we're changing it. we're going to make it much better. we're going to make it less expensive. we're going to make it much better. obamacare covers very few people. and remember, deduct from the number all of the people that had great health care that they loved that was taken away from them. [applause] it was taken away from them. [applause] millions of people were very happy with their health care. they had their doctor, they had

their plan. remember the lie? 28 times. you can keep your doctor. you can keep your plan. over and over and over again, you heard it. so we're goi to repeal and replace obamacare. [cheers and applause] and i tell paul ryan and all of the folks that we're working with very hard, dr. tom price, very talented guy -- [applause] but i tell them from a purely political standpoint, the single best thing we can do is nothing. let it implode completely. it's already imploding. you see the carriers are all leaving. i mean, it's a disaster. but two years, don't do anything. the democrats will come to us and beg for help.

they'll beg. and it's their problem. but it's not the right thing to do for the american people. not the right thing to do. [applause] we inherited a national debt that has doubled in eight years. think of it, $20 trillion. it's doubled. finish and we inherited a foreign policy marked by one disaster after another. we don't win anymore. ing when was the last time we won? do we win a war? do we win anything? do we win anything? [inaudible conversations] we're going to win, we're going to win big, folks. we're going to start winning again, believe me. we're going to win. [cheers and applause] >> usa! usa! usa! usa!ç >> firm, bold and decisive measure, we have to, to turn

things around. the era of empty talk is over. it's over. [cheers and applause] now is the time for action. so let me tell you about the actions that we're takingright now to deliver on our promise to the american people and on my promise to make america great again. we've taken swift and strong action to secure the southern border of the united states and to begin the construction of a great, great border wall. [cheers and applause] by doing this and with the help of our great boarder mis-- border police, with the help of i.c.e., with the help of general kelly and all of the people that are so passionate about this, our worder patrol, i'll tell you

what they do, they came and endorsed me, i.c.e. came and endorsed me. they never endorsed a presidential candidate before. they might not even be allowed to. [laughter] but they were disgusted with what they saw. and we'll stop it. we'll stop the drugs from pouring into our nation and poisoning our youth. [applause] pouring in. pouring in. we get the drugs, they get the money. we get the problems, they get the cash. no good. no good. gonna stop. by topping the flow of illegal -- by stopping the flow of illegal immigration, we will save countless -- [inaudible] and that's so important, because the tax, the dollars that we're losing are beyond anything that you can imagine. and the tax dollars that can be used to rebuild struggling american communities including

our inner cities. [cheers and applause] we are also going to save countless american delivers. as we speak today, immigration officers are finding the gang members, the drug dealers and the criminal alienses and throwing them the hell out of our country. [cheers and applause] and we will not let them back in, they're not coming back in, folks. if they do, they're going to have bigger problems than they ever dreamt of. i'm also working with the department of justice to begin reducing violent crime. i mean, can you believe what's happening in chicago as an example? two days ago seven people were shot. and i believe killed. seven people.

seven people. chicago. a great american city, seven people. shot and killed. we will support the incredible men and women of law enforcement. [cheers and applause]ç thank you. and thank them. i've also followed through on my campaign promise and withdrawn america from the trans-pacific partnership. [cheers and applause] so that we can protect our economic freedom. and we're going to make trade deals, but we're going todo

one-on-one, one-on-one, and if they misbehave, we terminate the deal, and then we'll come back, and we'll make a better deal. none of these quagmire deals. by the way, take a look at that have that, one of the worst deals ever made by a country having to do with economic development. it's economic undevelopment as far as our country's concerned. we're prayering to repeal and -- preparing to repeal and replace the disaster known as obamacare, we're going to save americans from this crisis and give them the access to the quality health care they need and deserve. we have authorized the construction, one day, of the keystone and dakota access pipelines. [applause] and issued a new rule, this took place while i was getting ready to sign, i said who makes the pipes for the pipeline? well, sir, it comes from all

over the world, isn't that wonderful? i said, nope, comes from the united states or we're not building it. [cheers and applause] american steel. [cheers and applause] if they want a pipeline in the united states? they're going to use i'm that's made in the united states. pipe that's made in the united states, do we agree? [applause] but can you imagine, i told this story the other day, can you imagine the gentleman, never met him, don't even know the name of his country. i actually sort of know it, but i want to get it exactly rrect. big, big, powerful company. they spend hundreds of millions of dollars on the pipeline. same thing with the dakota, different place. they got their approvals everything in the place of dakota, and then all of a sudden they couldn't connect it because they had people protesting that never showed up before. but with the keystone -- so they spent hundreds of millions of

dollars with blood-sucking consultants, you know -- i used them all my life. don't worry, we're going to get it approved, i'm a lobbyist, don't worry. bottom line, obama didn't sign it. a lot of jobs, didn't sign it. but can you imagine? he gave up. a year ago it was dead. now he's doing nothing, calling his wife, hello, darling, i'm a little bored. you know that pipeline? that has killed us, that is killed our opportunity. knock knock. mr. so and so, the keystone pipeline, sir, out of nowhere has just been approved. [cheers and applause] can you imagine the expression? and i don't know the sad part? -- and you know the sad part? those consultants that hit him for all the money and failed, they're now going to go back to him and say, didn't we do a great job? we want more money.

right? because that's the way the system works. a little bit off, but that's the way the system works. we're preparing bold action to lift the restrictions on american energy including shale oil, natural gas and beautiful, clean coal, and be we're going to put our miners back to work. [cheers and applause] miners are going back to work. miners are going back to work, folks. sorry to tell you that, but they're going back to work. we have begun a historic program to reduce the regulations that are crushing our economy. crushing. [applause] and not only o crushing our jobs because companies can't hire. we're going to put the regulation industry out of work. and out of business.

[applause] and by the way, i want regulation. i want to protect our environment, i want regulations for safety. i want all of the regulations that we need, and i want them to be so strong and so tough. but we don't need 75% of the repetitive, horrible regulations that hurt companies, hurt jobs, make us noncompetitive overseas with other companies from other countries. that, we don't need. but we're going to have regulation. it's going to be really strong and really good, and we're going to protect our environment, and we're going to protect the safety of our people and our workers, okay? [applause] another major promise is tax reform. we are going to massively lower taxes on the middle class, reduce taxes on american business and make our tax code more simple and much more fair

for everyone including the people and the business. [cheers and applause] in anticipation of these and other changes, jobs are already starting to our back into our country. you see that. in fact be, i think i did more than any other pre-president. they say president-elect. president-elect is meeting with ford, he's meeting with chrysler, he's meeting with general motors. i just wanted to save a little time. [laughter] [applause] because ford and fiat chrysler, general motors, sprint, intel and so many others are now, because of the election result,

making major investments in the united states, expanding production and hiring more workers. and they're going back to michigan, and they're going back to ohio, and they're going back to pennsylvania, and they're going back to north carolina and to florida. [cheers and applause]ç it's time for all americans to get off of welfare and get back to work. you're going to love it. your going to love it. you are going to love it. [cheers and applause] we're also putting in a massive budget request for our beloved military. [cheers and applause]

and we will be substantially upgrading all of our military, a all of our military, offensive, defensive, everything, bigger and better and stronger than ever before, and hopefully we'll never have to use it, but nobody's going to mess with us, folks. nobody. [cheers and applause] it will be one to have greatest military buildups in american history. no one will dare question, as they have been because we're very depleted, very, very depleteed, sequester. sequester. nobody will dare question our military might again. we believe in peace through strength, and can that's what we will have. [cheers and applause]

as part of my pledge to the restore safety for the american people, i have also directed the defense community to develop a plan to totally obliterate isis. [cheers and applause] working with our allies, we will eradicate this evil from the face of the earth. [applause] at the same time, we fully understand that national security begins with border security. foreign terrorists will not be able to strike america if they cannot get into our country. [applause] and, by the way, take a look at what's happening in europe, folks. take a look at what's happening in europe. i took a lot of heat on sweden.

[laughter] and then a day later i said has anybody reported what's going on? and it turned out that they didn't, not too many of them did. take a look, take a look at what happened in sweden. i love sweden. great country, great people, i love sweden, but they understand i'm right. the people over there understand i'm right. take a look at what's happening in sweden. take a look at what's happening in germany. take a look at what's happened in france. take a look at nice and paris. i have a friend, he's a very, very substantial guy. he loves the city of lights. he loves paris. for years every year during the summer he would go to paris. it was automatic, with his wife and his family. hadn't seen him in aç while. and i said, jim, let me ask you a question. how's paris doing? paris? i don't go there anymore. paris is no longer paris.

that was four years, four or five years he hasn't gone there. he wouldn't miss it for anything, now he doesn't even think in terms of going there. take a look at what's happeng to our world, folks. and we have to be smart. we have to be smart. we can't let it happen to us. [applause] so let me state this as clearly as i can. we are going to keep radical islamic terrorists the hell out of our country. [cheers and applause] we will not be deterred from this course. and in a matter of days, we will be taking brand new action to protect our people and keep

america safe. you will see the action. [applause] i will never, ever apologize for protecting the safety and the security of the american people. won't do it. [applause] if it means i get bad press, if it means people speak badly of me, it's okay. it doesn't bother me. the security of our people is number one. is number one. [applause] our administration is running with great efficiency, even though i stilldon't have my cabinet approved. nobody mentions that. do you know, i still have people out there waiting to be approved? and everyone knows it's going to be approved. it's just a delay, delay, delay. it's really sad. it's really sad. and these are great people. these are some great people. we still don't have our cabinet. i assume we're setting records

for that. that's the only good thing about it, is we're setting records. i love setting records. [laughter] [applause] but i hate having a cabinet meeting and i see all these empty seats. i said, democrats, please, approve our cabinet and get smart on health care too. if the you don't mind. -- if you don't mind. [applause] but we're taking meetings every day with top leaders in business, in science and industry. yesterday i had 29 of the biggest business leaders in the world in my office. caterpillar, tractor, campbell's soup, we had everybody. we had everybody. i like campbell's soup. [laughter] [applause] we had everybody, and we came to a lot of very good conclusions, and a lot of those folks that are this that room are going to be building big, big, massive new plants and lots of jobs. and you know what?

they're going to be building them in this country, not in some other country. [cheers and applause] we're meeting with unions, meeting with law enforcement, and we're meeting with leaders from all around the world. where the white house doors used to be totally closed, they were closed, folks. you don't realize that. they wereç closed. they're now wide open, and they're open for people doing business more our country -- for our country and putting people to work. [applause] and when they come into the white house, we're translating these meetings into action. one by one, we're checking off the promises we made to the people of the united states. one by one. a lot of promises. [applause] and we will not stop until the job is done. we will reduce your taxes. we will cut your regulations.

we will support our police. we will defend our flag. [applause] we rebuild our military -- we will rebuild our military, we will take care of our great, great veterans. we're taking care of our veterans. [cheers and applause] we will fix our broken and embarrassing trade deals that are no good, none of 'em. you wonder, where did the people come from that negotiated these

deals? where did they come from? well, they came also from campaign contributions, i must be honest with you. [laughter] they're not as stupid as you think. [laughter] we will cut wasteful spending. we will promote our values. we will rebuild our inner cities. we will bring back our jobs and our dreams. [applause] so true. so true. [applause] and, by the way, we will protect our second amendment. [cheers and applause]

you know, wayne and chris are here from the nra, and they didn't have that on the list. it's lucky i thought about it. [laughter] but we will, indeed. and they're great people. and, by the way, they love our country. they love our country. the nra has been a great supporter. [applause] they love our country. the forgotten men and women of meca will be forgotten no longer. that ishe heart of this new movement. and the future of the republican party. people came to vote, and these people -- the media -- they said, where are they coming from? what's going on here? these are hard working, great, great americans. these are unbelievable people who have not beenç treated fairly. hillary called them deplorable. they're not deplorable. >> boo!

>> lock her up! lock her up! lock her up! lock her up! >> who would have thought that a word was going to play so badly? [laughter] that's the problem in politics. one wrong word, and it's over. [laughter] she also said irredeemable, but we won't mention that. [laughter] the gop will be, from now on, the party also of the american worker. [applause] you know, we haven't been as a group given credit for this, but if you look at how much bigger our party has gotten during this cycle, during the early days when we had 17 people running, the primaries.

millions and millions of people were joining. i won't say it was because of me, but it was, okay? [laughter] [applause] and we have an amazing, an a amazing, strong, powerful party that truly does want to see america be great again, and it see it, and it's going to see it a lot sooner than you think, believe me. a lot sooner than you think. [applause] we will not answer to donors or lobbyists or special interests, but we serve the citizens of the -- we will serve the citizens of the united states of america, believe me. [applause] global cooperation, dealing with other countries, getting along with other countries is good. it's very important. but there is no such thing as a global anthem, a global currency or a global flag. this is the united states of

america that i'm representing. [applause] i'm not representing the globe, i'm representing your country. [cheers and applause] >> usa! usa! usa! usa! >> there's one allegiance that unites us all, and that is to america. america. it's the allegiance to america. [applause] no heart our background -- no matter our background or income or geography, we're all citizens of this blessed land. and no matter our color or the blood, the color of the blood we bleed, it's the same red blood of great, great patriots.

remember, great patriots. [applause] we all salute with pride the same american flag, and we allç are equal, totally equal in the eyes of almighty god. we're equal. [cheers and applause] thank you. [applause] and i want to thank, by the way, the evangelical community, the christian community -- [cheers and applause] communities of faith. rabbis and priests and pastors, ministers, because the support

for me was a record, as you know not only in terms of numbers of people, but percentages of those numbers that voted for trump. so i want to thank you folks. it was amazing. it was an amazing outpouring, and i will not disappoint you. [applause] as long as we have faith in each other and trust in god, then there is no goal at all beyond our reach. there is no dream too large, no task too great. we are americans, and the future belongs to us. the future belongs to all of you. [cheers and applause] and america is coming about, and it's coming back, and it's roaring, and you can hear it. it's going to be bigger and better. it is it is going to be -- it is going to be. remember. and it's roaring. it's going to be bigger and

better a stronger than ever before. [cheers and applause] i want to thank you, and matt and mercedes, i want to thank you, and all of the supporters that i have. they're all over the place. you are really great people. i want to thank you. [cheers and applause] and i want to say to you, god bless you and god bless the united states of america. thank you, folks. thank you. [cheers and applause] thank you. ♪ ♪

stuart: when the president began his speech roughly 45 minutes ago, the dow jones industrial average was down 58 points. when he finished his speech, it was down 38 points. in other words, the president did not move this market. he hardly mentioned -- liz and ash, you were listening as well -- he hardly mentioned the tax cut package. he did not mention specifically, i don'vç think, the border tax - >> that's correct. stuart: all very important for the market. >> yeah. stuart: and he didn't really mention the schedule in congress for getting it all done, that's why he didn't move the market. >> pretty vague terminology, yes, cut middle class taxes, corporate tax reform, but you're

right, nothing about border tax, nothing about the tax cuts being retro active and when they could take effect. >> the only thing he spoke strongly about was repealing and replacing obamacare, he talked about building up the military, bemoaning the fact of his cabinet, many still have not yet been confirmed. he covered a lot of ground, beefing up the military, eradicating isis from the face of the earth, but when it came down to something about taxes, he said, yes, we're going to reduce corporate and individual taxes, that was it. stuart: i thought that going into this speech the president might move the maet if he talked taxes and border tx, but he didn't mention those in any prolonged form. so i think we're back to square one. the market doesn't like the border tax, and the market heard nothing about it in this speech, so the market didn't move. is that an accurate summary from an investor's point of view, ed? >> yeah, from an investor

standpoint, without any question. and, you know, i thought it was a great speech. one thing i would have added if if i was his speech writer is, you know, by lifting the restrictions on drilling and bringing coal back, if you want to call it that, i would have said to everybody, watch your electric bills drop, because that's what's going to happen when you lift those restrictions, and that would have gotten applause and maybe a move in the market. stuart: i want to bring in katie pavlich, our political analyst if i can -- if you don't mind me saying that, katie. >> i'll take that title. [laughter] stuart: i suspect the president was saving any comments on the border tax, i suspect he might be saving that for tuesday night when he addresses congress. >> there's a -- certainly. there's a better audience for specifics about what the agenda's going to be when he is in front of that audience. cpac is a very friendly audience for him this year, it's a lot of young conservatives. i was there yesterday, i'm

headed over there after this is over, and les a lot of young conservatives making wearing headache america great again -- mistake america great again hats, they were excited to see the president, they were excited to see yesterday the vice president. kellyanne conway touched on this yesterday, but president trump discussed that, look, the gop has different types of voters now, and we are going to be the party of the working class moving forward. and that's what his message was on the campaign trail, that's how he beat hillary clinton in the blue wall states, and i think it'll be interesting to see how he brings that message into the next election as we move forward. stuart: katie, maybe this is a stretch, but i'm going to say it anyway. yesterday steve bannon and today president trump, i think they redefined the nature of conservativism and the nature of the republican party. the presentation from bannon yesterday, the speech by the president this morning, i do think it ctainly defined the trump presidency.

am i reaching too far? >> i'm not sure it's necessarily defined. i think that the conservative movement is more diverse at this point. steve bannon has been part of the tea party movement for you know, these electoral victories that we saw in 2010 and 2014 with republicans running against established republicans and democrats to take back a thousand plus seats from the obama administration and from the dnc, so he's been around and involved, and it just came to fruition with president trump running in the fashion that he did. and i think for the first time in a long time republicans took their message to different types of voters that were ripe for consideration that democrats had been ignoring for a very long time, white, working class, union-type voters and bringing them this and saying weir going to do -- we're going to do something for you. doesn't mean we can say those voters are always going to vote republicans. i'm sure democrats will work on their message, but they certainly have brought this a

new sector of voters on the economic side to bring republicanses more votes. stuart: now, we were watching this speech from beginning to end, and i have to tell you the first 12 minutes kind of electrified the audience, because he was just beating up on the media. [laughter] they make up their sources, i'm against fake news. let's roll a sound bite about what the president said about the media. roll that tape, please. >> i called the fake news the enemy of people, and they are. they are the enemy of the people. they shouldn't be allowed the use sources unless they use somebody's name. let their name be put out there. you have a lot of them. look, the clinton news network is one. look at cbs, look at abc also. look at nbc. ta aook at some of these pols. they're so bad, so inaccurate. stuart: well, the crowd loved it. i'm not sure he got a standing ovation at that point, but he certainly got a loud round of applause, that's a fact. erin elmore is with me,

spokesperson for the trump campaign and now, i guess, the trump presidency. >> that's right. [laughter] stuart: is he like that in private? i know he's got screens all over the place. does he shout at the screens? >> i was just speaking about president trump the other day, and the person you see on television is the person you get. he is exactly what you see. stuart: yeah? >> he's even funnier. he's actually even funnier in person, that's all i would say. he's funny. stuart: he's going to get heavily criticized by the media -- >> well, of course. stuart: but he did say nobody loves the first amendment more than me, because it gives me the right to criticize fake news. >> it's true. stuart: that, the audience lapped it up. they loved it. >> another thing about president trump, you're absolutely right, that he knows his audience whether it's on television, when testifies campaigning. -- when he was campaigning. this is a young audience, it's friendly to him, but they are there to get energized, and he

gave the perfect speech for that young, captive audience. stuart: i've never seen a president or any senior politician who can work a crowd like president trump just worked that crowd. >> that's true. >> he knew what they wanted to hear, and he gave them exactly what they wanted. >> and you know what he did with the fake news thing? he said they misreported that story too. i'm not against news, i'm not against the press. when uses the first amendment more than me? i love the first amendment, i love free speech. i said i'm against fake news. >> what he said was i'm being quoted as saying the media is the enemy of the people, absolutely slammed in the media for that. he said, theyç misrepresented. fake news, he said, is the enemy -- >> yeah, that's what i was saying. >> so in other words, they just took part of his statement. >> because if it was one of those fake news networks, people do watch, and they get very confused. stuart: yes. no other president has railed against the media like this, not even close. i've never seen that before. >> this is revolutionary. nothing like this. but now i think it's letting

people know out there be careful what you watch, be careful what you listen to, do your research, and then you'll find out what is the truth. stuart: ed, still with us, i believe, money manager. now we have the market down 48 points. it was down 58 points when the president started. there's no reaction on the market to this speech at all that i can find, can you? >> no, i don't see any reaction. i see this market now just getting ready for a nice weekend. you're not going to see much movement the rest of the day. stuart: sebastian gorka joins us now, deputy assistant to president trump, specializes in the terror front. sebastian, if i can put it like that. he really went to town on this issue today, sebastian. he said this is going to be, i'm trying to fine it knockout, this a matter of days -- >> obliterate isis. stuart: -- a brand new action. what's that all about, sebastian? >> well, look, the clock is ticking down, stuart, on the plan, the defeat isis plan

deadline. we came into office, and the president gave the pentagon, general mattis, defense chief, 30 days to prepare the plan. the plan is practically ready. there's other measures that will be coming out with regard to the broader threat. but you just have to listen to the language. it was annihilate, obliterate, wipe from the face of the earth. it couldn't be more clearer in comparison to the last eight years, don't you think? stuart: yes, i would say that that is very true, sebastian gore ca. -- gorka. i also noticed that the president dwelt a little bit on the terror situation this europe. he was holding up europe and saying we don't want to be like this. he got that there you, didn't he? [laughter] >> it's one team, one team, stuart. the point that has to be understood here is the original executive order about the immigrati here tore yum, the temrary halt -- moratorium, the temporary halt, the point of good counterterrorism is not to

react, but to prevent. and you heard it today straight from the commander in chief. we are taking these measures now to prevent something like the nice attack, the double paris attack, the berlin christmas market attack. we don't want that to happen here. we want to prevent that. and the conditions in europe are an abject lesson in what needs to be done to protect america, you're absolutely right. stuart: he mentioned sweden specifically and the mix-up about who said what and why and the way the media had taken it. he also said that he'd been talking to an old-time friend of his who used to live in paris, and he says paris is no longer paris. are we going to get a reaction from the french government to that? [laughter] >> look, if you talk to our french colleagues, if you talk to our european colleagues below the level of politics, if you talk to the operators, they know the threat to their nation. stuart, you grew up in theç u.,

i grew up in the u.k., my family used the go to summer holiday in france. that was where you went. compare the reality back then to today. you walk around paris, and what do you see? soldiers in combat fatigues holding assault rifles. now, that's not an opinion, that's not hyperbole, that's the situation with our colleagues today in europe. and we want to help them fight the fight but headache sure we don't have -- make sure we don't have that level of threat in america. stuart: exactly. so to sum it up, your job as you see it is to stop anything like that happening in the united states of america. that's it, right, sebastian? >> absolutely. here in the conus, the continental u.s., to make sure we have no mass casualty terrorist attacks here like we've seen in europe and to help in the theater our muslim allies. this is important. this is why the islamophobia charge is so utterly fallacious and truly is fake news.

because the president has said we're not going to invade other countries, that's un-american. we want to help our sunni allies whether it's the jordanians, the egyptians, the iraqis to defeat this threat for themselves. that's our pla stuart: all right, sebastian gore da -- gorka, thanks for being with us this morning. many thanks. >> anytime, stuart. thank you. stuart: katie pavlich still with us, i want to get back to you. how do you think that speech went down with grass roots, republican america? >> i think it went really well. it sounded a lot like one of his campaign speeches which i think is actually fine considering he's only a month into his presidency. he still wants to repeople what his a-- remind people what his agenda is and the promises he's made already, so he's just reminding them that, hey, i'm here, i'm this d.c., and i'm not interested in changing my mind about the things i told you when i was campaigning, i'm actually going to follow through. stuart: my bottom line from the

speech was he's doing what he said he was going to do. that's what i took away from it. >> right. and if you look at the ending of his speech, it really goes back to the america first mantra where he talked about, look, america is here, we're going to do great, amazing things in the future. i'm not the president of a global entity, i'm the president of the united states. we don't have a global flag, we don't have a global currency, we have an american flag, and that's what we're interested in protecting. and so his message is very clear, and he's making it clear that he's going to be working with different companies to try and bring some jobs back to the united states, make it less expensive to do business in this country which is something we've been talking about for a very, very long time. stuart: katie 356 limp, thanks for being with us -- pavlich, thanks for being with us. erin, i know you've got to go, but i want to get a last word in from you. is that -- on a ranking, on a scale of 1-10, how good was that speech? that was such an easy question. [laughter] >> okay, i'm going to give him a 9.5, you know why?

i think his next speech is going to blow it out of the water, so i'm going to give him room to even crush it more. stuart: i mean, i just set -- >> i think 9.5 is pretty good. what i liked most is he started off really strong. he said my first big political speech was right here in 2011, and he got such a good response then, 10 out of 10 then. and he said to himself, i think i like this business. and what i liked about that is he didn't callç it politics, he called it a business, because he a businessman. and you have called him the action president, i think that business and that action are tied together and go hand and hand, and that's why he's doing such a great job in the first month in office. stuart: stuart thank you very much. ed, i know you've got to go, but one last one to you. the market did not move. i thought it would, but it did not. what would move this market now? >> well, it's all going to be an earnings play that's going to come in once he gives us that time. we had yesterday steve, i have a hard time with his last name,

mnuchin say that we are going to see that tax cut in august. once he says that, and it'll probably come tuesday night, we're going to see this market move. and, stuart, one over thing. when juan was on, you know, he said he's going to push back and he supports the pushing back. i don't know why they want to push back. we have $3 trillion more in market capitalization in the stock market today. we have the economy starting to pick up. i think they're going to run out of things to push back against. stuart: i think democrats are very defensive on this issue, i really do. ed, thank you very much, indeed. all right. we've got to take a short commercial break. we have just seen the president of the united states deliver a speech that was very well received by his conservative audience. the bottom line is that stock market did not move for nothing. barely a point or two. we'll be back.

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>> we are going to massively lower taxes on the middle class, reduce taxes on american busine and make our tax code more simple and much more fair for everyone including the people and the business. stuart: well, that was the president on tax reform and that was about all we got in a

45-minute speech. come on in, david, associate white house counsel under george h.w. bush, david, i was disappointed because i want a tax cut and i wanted the president to push it, how about you? >> i want him to push it but i want to make sure that the proposal is well drafted and if you look at what happened with the roll-out of immigration executive order, i think waiting a few more weeks to have a full package emerge is worthwhile. plus, let's look at what is going to happen and already happening, regulatory relief has the same impact short-term and long-term in the economy. stuart: you think so, really, david? you think you are going to cut regulations, do you think that has the same beneficial effect as cutting a whole bunch of taxes? >> absolutely, a dollar that's taken off bottom line it's not available for investment. if it's out of bad labor regulations and obama's

environmental regulation was awful, you tell me, stuart, why does it have any less of an annual impact on taxes? stuart: that's a fair point, can he actually do it? he's about to sign it. he's going to employ regulation officers, officials, officers that's what he calls them to cut back on the number of regulations. though, you, david, we heard this so many times before. iej going to cut the waste and the fraud out of government, every president has said it, i don't believe there's one that actually done itcan this president? >> i would say reagan and bush 41 and bush 43 not so much. i hope the administration will do it if the white house continues to focus on this. we have very good people in the cabinet. let me just say this, it's imminently possible. now, let's be realistic, it's

not going to take days or weeks, most of the regulations have been put out notice of common process have to be undone the same way. look, so many of obama irregulations are unlawful in any case stopped by the courts. i am hopeful that let's say by the end of this year, early next year you will see billions of dollars, costs taken off the table. any serious damage to any of the value th is re trying to be addressed fbi regution. stuart: that would be the plus. talk to me about economic nationalism which steve bannon was so big on yesterday. i thought that defined the new republican party. i think it defined a new area, a new element in conservatism. it's very different from the republican party and the conservatism of your day when you were in the george h.w. bush white house. do you approve of it in. >> i do. thank you for aging me a bit. [laughter] >> let me say this, i believe

very much that the new economic nationalism is -- is consistent with lots of global trade and lots of investment, serious diplomatic engagement and even military engage meant, look, u.s. has the world's most attractive market both for investment and trade. all we need to do is leverage access to our market and fair access to other people's markets. we are not talking about destroying exports, we are talking about creating jobs, we are talking about being about to protect our intectual property. again, the notion that somehow this is about frch -- stuart: a bush guyliked the speech from president trump, is that accurate? >> that's accurate. i would say policy wise-a comprehensive speech, i thought it was a good speech, let's see if mainstream media is going to portray it as such but i thought

it was a good speech. stuart: not a prayer, i'm waiting for the headlines as i am watching as they come out. got a hold of them, does martha maccallum share my view? she hosts first hundred days. i thought he reached out and got the audience going with him, how about you? >> it was interesting, when you compare it to the inaugural speech, many people said it was very dark, this was a speech where, i think, he hit his stride a little bit, he's been there over a month, he seemed happy to have a relationship with this crowd, he felt he had that when he walked in the door, you think about cpac, stuart and you think about the people they supported over the years. this is the crowd that wanted ted cruz, they wanted rand paul,

they want that had kind of politician but he has won them over and i also was struck when i looked at the crowd out there as the diversity in that crowd. there were young women, there were african americans, asian americans, there were lots of white americans as you would expect, but a very interesting crowd in that room and i also one more thing about bannon, bannon spoke in the various sort of academic terms, big words, economic nationalism, he talked about deconstructing the system, today we got the blue-collar billionaire version of those words in a way that everybody can digest and understand. stuart: to me economic nationalism is america first, to me deconstructing the administrative state is get that bureaucracy out of here and get the government off my back. that was the interpretation. but he did not -- i don't think he mentioned the border tax. >> he didn't. stuart: that surprised me and

that could have moved the market and it didn't move at all. >> it's interesting to talk to folks on wall street which obviously you do a lot. the border tax is the thing that they are most divided about. they for the most part were hillary clinton supporters because they felt like she was going the leave them alone. they have warmed up to donald trump and love what happened to the markets because of rolling back of regulations and tax cuts and all of that, the border tax is a sticking point. people aren't clear on what the impact is going to be on american business, right? stuart: you are very much on the inside of this, you know more about politics than i. do seems to me that the border tax is the sticking point for the hole of tax reform. house republicans want border tax, manufacturers want the border tax -- >> yeah. stuart: they love it. >> this is going to be an interesting tussle, as you point out it all goes into the budget

and you have to have the umbrella budget before you do tax reform and by the way you start repealing and replacing obamacare and president trump has figured that out, he has to get overall budget and maybe he didn't want to focus on that today because that's for another day. stuart: for the first 12 minutes he was railing against the media. >> yeah, media too long on media exclamation point. he needs to get off this subject. i know he probably thinks this crowd likes it and they want a little bit of it, you often get thfeelinwhen you watch a president trump speech, okay, let's move on, you know. stuart: listen to this. he's talk about the first amendment. roll that tape. >> yeah. >> they say that we can't criticize their dishonest coverage because of the first amendment, you know, they always bring up the first amendment. [laughter] >> and i love the first amendment, nobody loves it better than me. nobody.

stuart: who uses it more than i do? stuart: do you think he spent too long on that? >> and i thought, the speech improved when he got onto some of the topics that he was there to talk about. i don't think he can help it. he wants to enjoy those moments and i just wonder how long that's going to continue. stuart: you're making the judgment about the content of the speech. i'm making a judgment about how good a speech it was. >> it was a solid speech. stuart: if i could get the crowd going like that, i would get the crowd going. >> you wonder, how is that going to feel on tuesday night when the crowd is congress, half of the room is sitting and half of the room is standing and applauding, i'm going to be fascinating and we will be doing live coverage and that's going to be interesting to watch. stuart: well, we think when he made the presentation in front of congress, that's when we will hear more about tax reform and the border tax and the schedule of getting it all through congress.

well, we can but hope because we would like to hear about it. >> that's the idea. we look forward to it. >> you have a show to prepare. martha, many thanks, indeed. great to see you, thanks very much, indeed. believe it or not the president started speaking around 10:25 eastern time. now 11:38 when he started speaking the market was down, the dow was down 58. now the dow is down 56. i think i can solid i will say that there was zero market impact from that extraordinary speech by the president of the united states of america. and we will be back

nasdaq is off 15 points. there are winners and losers, of course, as there always are. verizon is up about half a percent. johnson & johnson 1.2%. jpmorgan and goldman sachs getting hit. apple is investigating something that's going viral. a video of iphone 7 catching fire and smoking. it's been posted on social media, on twitter and it has gone viral more than a million views on this. no comment from apple. reuters are in contact with the

people who posted the video, those people tell fox they haven't heard from apple in new york state is already in motion. companies across the state are growing the economy, with the help of the lowest taxes in decades, a talented workforce, and world-class innovations. like in plattsburgh, where the most advanced transportation is already en . and in corning, where the future is materializing. let us help grow your company's tomorrow - today at esd.ny.gov

stuart: doesn't take long for the president to helicopt frer the cpac speech in maryland to the lawn of the white house. that's marine one, moments ago the president landing. he's virtually back in the oval office already. it's nice being the president. ashley: a heck of a way to travel, isn't it? [laughter]

stuart: let me bring this up about his speech that we saw in the program, he said he would be changing obamacare, he said he would replace obamacare. 30 seconds later he said he would repeal and replace obamacare. the whole thing. grace marie, a lot of people are saying if you repeal and replace obamacare that will take eternity in congress and will never get to taxuts, what say you? >> they are not going to get into the tax cuts until they repeal and replace and they are absolutely going to do it. you have heard -- you heard steve bannon say it yerd at cpac, where we are now that the president keeps his promises, he has a list and georgia on it. congress is working furiously to

get -- stuart: i know it's hard for you to hear me. democrats are going to oppose the repeal and replacement of obamacare at every single turn, how long do you think it would take to get through legislative schedule, we have to be talking months here, haven't we? vor. i think that they are going to try to get this done before they recess for easter which could be basically end of march, early april. the process is well under way, they are using the reconciliation process so they can do it with the simple majority in both the house and the senate and they are working very closely with the white house to develop legislation that the president wants to sign. this is -- this is a top priority for the white house and the congress, i believe, they

are going to get it done and within a relatively fast time frame. stuart: grace marii, hold on for a second. let me tell you what the former speaker of the house, republicans will never replace obamacare, here is his quote. they'll fix obamacare and i shouldn't have called it repeal and replace it because that's not what's going to happen. they are basically going to fix the flaws and put them all conservative box around it. he's saying, you can't do this in a short time frame. that's what he says. >> he also said that congress has never come to consensus on health reform. there's a reason as much as i love john boehner that he's the former speaker. the first thick that paul ryan did when he took office, when he became speaker to set up a process and develop a consensus plan, the better way is the foundation for the plan that also contains most of the ideas that president trump talked about on the campaign trail.

there is a consensus plan and there are -- there are parts of obamacare you can't reach for this reconciliation process. that was going to take time. some can be addressed through administrative action, regulatory action but the fundamental cornerstone and structure, the taxes, the entitlement, the -- the credits for people to be able to purchase health insurance who can't afford it, all of those are going to be structured in a new way that give people flexibility, involves the states aggressively and give people the choices of affordable care act so that they want to keep coverage and they don't have to have mandate. stuart: grace mary, thank you very much. i can tell how difficult that is, we much oblige for you being in the program. it's a full court press to get this thing done. ic that's what the market wants to hear because if you really do get this thing done in the first quarter of the year then you can

pack in tax reform before the august recess. that's exactly what people, investors, that's what they want. by the way, the dow industrials are still down 58 points. that's how -- ashley: where we started when the president began the speech. stuart: we both made a note of that. we were expecting the president would talk about the border tax and if he did that would have affected the market. no, he did not. we are still down 59 points now. what a difference, okay. now, i think we are going to take a short commercial brake. infrastructure, okay. ashley: we can talk about it. stuart: yes, that's right, that slipped my mind. we have an executive order, the president march intoed the white house to sign this thing. ashley: that's antiregulation. charles payne picked up on this yesterday, infrastructure, rebuilding the roads, redoing the airports, the bridges,

sounds great, it may get pushed back to 2018, next year because there's so much more to handle with and with tax reform and, you know, the budgetary stuff, obamacare alone is going to be a quagmire that we talked about. the infrastructure spending gets pushed off to next year. stuart: that will be a big part of the stimulus to the economy. ashley: trump administration is startingo learn about the frustrating rhythms washington that you want to flood it all and get it all done, washington doesn't work like that, doesn't happen in a day. stuart: how on earth are you going to get obamacare repealed and replace, tax reform. ashley: budgetary issues. stuart: the budget. let's not forget that. it'll be awfully hard to see a trillion dollar infrastructure package passed this year. that's a negative for the market. ashley: it is. stuart: by the way we are still down 56 points. [laughter] stuart: we will deal with

chicago in just a moment, okay. change the subject. we will be back

>> i'm also working with the department of justice to begin reducing violent crime. i mean, can you believe what's happening in chicago as an example?

two days ago seven people were shot and i believe killed. seven people, seven people. chicago, a great american city, seven people shot and killed. we will support the incredible men and women of law enforcement. stuart: well, that was the president just a few moments ago, the murder rate in chicago outpacing last year's rate. jeff flock is with us. jeff, you have some information on who is committing these crimes, tell us, please. jeff: well, two take away, stuart, one the reason for the violence this week, global warming and i only jokingly say that, police do tell us that the temperature got up to 68-degrees and typically this time of the year crime is chilled by the cold weather this year, not so much. so that's point one. point two, up until now, the

lion share is committed by and on the african-american community, the hispanic community, not so much. today police telling tribune that they have detected increased gang activity, hispanic gangs, ar-15 riffles and ak-47, immigration crack-down on what he called bad hombres. up to now the violence policemen has nothing to do with immigration, if that's not so, could change the -- change the narrative. stuart: chicago is a sanctuary city and emmanuel vows to use taxpayer money to defend illegals caught up in the sanctuary city mess. jeff: correct. immigration is not a policemen, but if it's proved different, it could be a different story. stuart: that is fascinating. jeff, good stuff, thank you very much, indeed, sir. now -- we have breaking news on

the dakota pipeline. ashley: quite fascinating, stuart. oil they say could be flowing through the dakota access pipeline in less than two weeks. stuart: whoa. ashley: according to papers filed by the developer. but, yeah, according to -- stuart: there was only a small gap that needed to be completed. that's all it was. ashley: not going to take long to finish off the connection. stuart: once you stoed the protests or get over the protest or whatever it is, two weeks and -- ashley: estimated ready and complete to flow oil anywhere between march sixth to april 1st, that's just around the corner. stuart: it sure is. ashley: that shows you how quickly that thing got on line. stuart: next different story. jc penny, they are going to close more than 100 stores. look at it go down. this is retail ice age ashley:

it is. as many as 140 stores. they are going to save themselves a ton of money, they will take a hit in the short-term. these are underper forming stores that they just can't make money on and they are pushing more and more to online sales. stuart: look at wal-mart. stock has gone to 72. ashley: jumped on it much quicker and realized what the departments were doing. stuart: ash, good stuff, indeed. more varney after this.

stuart: the take away from the president's 45-minute speech was that it did not affect the stock market at all. i think i'm right in saying that.

ashley: very accurate. stuart: i think we can safely conclude that since the president did not address tax reform in any meaningful way and never mentioned the border tax, that's why no impact on the market whatsoever. see, niel, i'm giving you something, go. neil: what did you give me? stuart: a dead-flat market. neil: thank you for that. i appreciate it my friend. as stuart pointed out we don't have the markets doing much. the question going forward is what happens here. we go to early 1997 for markets that had run-up in the course of time. that was an active period and you know how the year ended not comparing all of that but back then we had a president who was zealous on very big tax cuts in his final -- going to final year in office and, of course, we had other developments as well as getting regulations under control, too many of them.