stuart: 15 seconds before we get to him. ashley: and you, stuart? stuart: i like henry. liz: henley would be great. stuart: never been a henry after henry viii. neil, it is yours. >> how about charles? insisting economic relief will only come after complete denuclearization. north korea after they said they were stopping all nuclear test es. >> media suggested "rocket man" tweets would lead to war but looks like the approach is

leading to talks with north korea. we have former national security advisor to dick cheney, john hannah. john, i have to agree 1000%. the media went apoplectic because of president trump's heavy-handed this in this. we're dealing with a dick state tore who may only -- dictator who may only understand that type of approach. >> i have a bit of whiplash here. today the criticism is president is naive and about to give away the store. a terrible hand dealt by his predecessor, north korea had already as many as 60 nuclear weapons. we're on the cusp of a negotiation in which kim has said he is ready to talk about

the u.s. objective of denuclearization. he said that as part of any deal he is not insisting that the u.s. troops get out of south korea. and that as you said last week he froze his nuclear and missile tests we shouldn't get ahead of ourselves here, stipulate up front. the north can't be trusted. it has broken every agreement it ever negotiated. the u.s. can't give concessions is for empty gestures that are easily reversible but at the same time let's give the president getting us to this place of cautious optimism. let's be honest. the experts that have had 25 years to try to solve this problem have failed miserably. i should know. i was one of them. charles: then what exactly, when you had your chance with him, when vice president cheney and of course gorge bush had their chance, going with the same playbook, you don't want to

rattle these folks too much? is there, in other words, that old playbook that both parties used, it is not applicable, is it, anymore when we deal perhaps with the north koreans or the irans of the world? >> i at least, at least think you have got to acknowledge what we've done before hasn't worked and therefore you have to be a little bit humble about what the president has done and what he has done is really quite extraordinary. he put together an incredibly tough sanctions regime of maximum pressure. he has gotten china to do more than it ever has done to cooperate with the sanctions. for the first time in the a long time he was prepared to confront kim jong-un with a credible threat of military force. i think it is undeniable when you put all that together we're on the cusp of a negotiation, rather than testing nukes and icbms every other, every other week kim jong-un is now going

out of his way to at least try to create a positive atmosphere for these talks. charles: let me ask you john. i believe the media's hatred for president trump is hurting america. it is okay to criticize the president but they go so far to dismiss everything he has done as a failure. we could have a great jobs report, the media reports inflation is on the way. we have a poor jobs report, they say, oh, man, the economy is falling apart. in this particular instance does it help, or how much does it hurt that the media says kim jong-un is brilliant, china is brilliant? i don't see how they're helping us? on one hand we should let china steal $600 billion in intellectual property because we're hurting pig farmers the media never knew exist ad couple years ago? >> i agree entirely, charles. that we have really, now more than ever given the range of national security threats we face, we do need to return to a

degree of honest bipartisanship on these really difficult national security issues and let me just mention here, that the senate foreign relations looks what it is about to do to mike pompeo, a man by every measure of knowledge, experience, personal integrity, relationship to the president of the united states is eminently qualified to be our next secretary of state. he is not going to get a positive recommendation out of the senate foreign relations committee, precisely because rather than the historical standard of being qualified for the job, they resorted to tribalism, to polarization, and to simply a dislike of the president and the desire to embarass his choice. charles: yet, pompeo just went on this clandestine mission to north korea to do the groundwork for this meeting. apparently it was

extraordinarily successful meeting. proving once again he had disqualifications to do this. he was cia director. john, to your point, it is more than disheartening, it is starting to hurt our country in many ways. everyone needs to be reflective and honest how much do you want your animosity towards president trump to hurt the entire nation. report on the main fairly, he does tweets, other things, when nothing is good, that is not good for the nation. appreciate your time and your expertise. >> thank you, charles. charles: more on how the media is ignoring these big accomplishments, "washington examiner" reporter gabby mongiello and liz harrington. gabby, i see it every day, 300,000 jobs, that means inflation is around the corner! no matter what it is, it is negative narrative. when the news is so good you

never hear about it, and how can we get the most negative spin. the current example, north korea we're giving away the store and kim jong-un is brilliant. >> i think there is quite a bit of an effort to undermine the public's trust in president trump's negotiating skills ahead of the sit down with the north korean leader l or not president trump was qualified to hold such talks at highest level between him and the north korean regime. whether or not he was naive as you mentioned in your last segment and understood foreign policy challenges of denuclearizing the korean peninsula. a lot of questions reporters are asking i don't think this would be asked if this was president obama sitting down with kim jong-un, not president trump. charles: liz, i would go further. they would be polishes off another nobel peace prize. he did less and got the prize before. let's be honest? >> exactly.

pretty incredible that trump can get them the first time to halt their nuclear tests. some in the media saying this is the "art of the deal" for kim jong-un. whose side do you think they're on then? you have to question some people in the media praising north korea which we saw throughout the winter olympics as well just fawning them over kim jong-un's sister. but again they can't give trump credit for anything. like you say, if this was obama he would be getting the peace prize. wait, he got it before he did anything. before he happened to give hundreds of billions of dollars to the leading state sponsor of terror, iran. charles: of course, the wars that he campaigned against, we stayed in them. we're still in those wars to this point. gabby, you covered this beat very well. you know better than anyone else. it does, the tone, i mean, again, i know there is idealogical animosity. most of these folks are progressives or liberals, we get that. there used to be a more serious

degree of professionalism leaving my personal opinions at home when i do this job. >> yeah. i think that has become a obviously huge issue in this environment. one of the primary reasons this president became elected because of frustration among americans seeing daily just the level of partisan chatter among people who are supposed to objectively covering this administration and covering politics in general. there is huge frustration it has grown under the trump administration since the get-go. we haven't seen any attempt by most reporters to hide their own opinions. in fact it has been quite the opposite. seems as though we done away with any goal being objective in our coverage that is sad that will play a big role in midterm elections this fall and also president trump's attempts to get reelected in 2020. charles: you were very fair,

gabby, when you were wanting to do is this amount of certain disappointment, how do you resist not being suck ised into that world? >> i think there are plenty of fairness in operating or injecting bias into the way that we choose which stories to cover. i think that the policies of this administration is affect something far more interesting than what is going on with allegations that a porn star is making against the president. others obviously don't share that same opinion. i think that is disappointing in some sense. no matter what i'm reporting on, no matter what others are reporting on you need to make sure the story is fair but there is no reason not to be able to choose which stories are worth covering and which aren't. charles: liz, what are your thoughts on that as well? >> i couldn't agree more. it is such a detriment to the profession where everything is now spun in a way that can hurt trump just because it is trump. i noticed something recently, anytime there is news that should be pretty beneficial to trump, whether it is this north

korean news or comey memos, him leaking classified information, and being under review you have the media saying oh, trump is now trying to spin this in his favor and trump is trying to spin north korea halting tests it is the media doing spinning which we've seen again and again and again. regardless what the issue is. that is unfortunate. charles: liz, let me ask you about president trump baiting the media. he does that a lot. glaring example was mission accomplished. and they did like a bunch of piranhas instead of actual news of that day? >> i think he should keep doing it because they always fall for it. one of the best examples on the campaign trail was when president trump got everybody to go to his new hotel in washington, d.c., because he would comment about "birtherism, right, saying i don't believe that anymore, he trots out all the veterans. shows off the hotel. at the very end, oh, yeah, the

"birther" issue it is over. he totally played them. he to the so much free airtime and good, positive coverage for vets and for his new hotel. that is classic trump. he should keep doing it. nobody has a high opinion of the media anymore. charles: gabby, should he keep doing it or stop doing he would put the media in a tougher bind? >> i think this relationship with this administration actually has been quite an improvement from the obama years. we have great access to this white house. the president is always making himself available. one thing that you rarely hear of in the media. if he wants to bait us, wants to mock us he can do so all he wants as long as he continues to give us access to the administration. charles: they used to call me anything but don't call me home late for dinner. ladies thanks. french president macron ai have rifing -- arriving in the united states in the next hour

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charles: france's emannuel macron is on his way to washington. he will be arriving at joint base andrews in the next hour ahead of president trump's first state dinner that's tomorrow.

german chancellor angela merkel will visit the white house this week. there are reports that macron and merkel plotting their tactics before their respective meetings here with president trump. trying to get him to come around on their point of view on things like trade and iran deal. to former reagan advise so arbitrate -- art laffer there. is push back against president trump, particularly acceptance of him by macron, not necessarily as much by merkel but who has the upper hand this week? >> first place i wouldn't assume that merkel and macron are in cahoots on this deal or any deal. there is a lot of dissension within the eu, charles, that these guys are not just team players against everyone else. number two, i think donald trump is in charge. he has proven himself own the world scene and domestic economy. they would really like to have

him on their side. obviously macron and merkel have a common interest not have protectionist measures put on by the u.s. as i think a lot of people are but with regard to iran i wouldn't be surprised if there are differences in their views. charles: i want to remind the audience because when president trump initially went out to nato all the leaders there seemed to not take him seriously. i want to show video to the audience to remind him, when everyone was snickering at him. maybe we don't have that video. when we get it, art, we'll share it. >> i would love it. charles: there it is. >> trump is taken very seriously. charles: no, listen, we're showing right now, back in may of last year. as you recall he went there and they kind of all -- look at that. you could just see the the memes

right now. we're big giant baby huey with power but don't have the wisdom to use it properly. we have bad wine choices. two things you brought up, art. on trade. germany has really gotten a really sweet deal with the euro. i think a lot of these other nations, of course the uk witnessing, never got in the euro witnessing this whole eu thing was a bad deal in the first place. a lot of other nations are saying you know what? this whole unification thing, one trade policy working well for a nation with a surplus, that can sell their automobiles at premiums around the world but hasn't done much for the rest of the world. where is france on that? feels like france and germany always biding for leadership in the continent? >> there are all sorts of misperceptions what a trade balance or surplus or deficit is for a country. by the way we had a biggest trade deficit and hugely

worsening trade deficit under reagan. we had the biggest boom ever. dollar rose sharply, stock market rose, trade deficits i don't think a are a problem myself. european common market is good for a common currency just like the u.s. dollar is for a common currency. i think the rest of the deal is not good. i would like to see "brexit" occur with lots of those countries. i think it is valuable for europe to have a common currency. that is wonderful. all the rest of it hurts europe. they should have different trade policies. they should have different tax policies. they should have didn't regulatory policies. governments should compete in europe like the u.s. it is good for them and good for us, charles. charles: i'm sure, greece, italy, portugal, those countries wish they had their own central bank. maybe they could print their way out of some of their trouble. >> i don't know about that i wish they would have separate policies. frankly all the stuff they're doing with all the underwriting

and zero interest is just lousy for europe. i was just over there. i did a keynote at european union conference and the thing is i told them they have to give he have one leave so they have competition amongst the government exploiting their citizenry. europe is awful place to be a citizen. a great place to be a government employee so you can rip off the people. charles: you're still living on past glory. we have less than a minute, art. i have to ask you. >> go ahead. charles: you have spoken with larry kudlow. you're tight with him. how is he doing with the approximation with respects getting his ideas across with president trump and having perhaps president trump alter his approach. >> i don't know about him altering his approach. i would not wish for that for anyone. larry kudlow is the best ever been in that job. i've seen them all since is the 13th century. larry kudlow is the best ever. he is a great communicator.

he knows how to use it. v he is well educated economist and knows the real world. the most important thing, charles, i loves that job. you can't do a good job unless you love the job. larry kudlow is the best ever. i couldn't be happier than i am. by the way trump is wonderfully respectful of larry. he loves larry and vice versa. there is a really close relationship and i'm expecting the very best out of this administration and i'm really hopeful. charles: art laffer, always great having you on. >> charles, you're the best too. charles: he is legendary investor and big republican fund-raiser. foster friess is throwing his cowboy hat into the ring. he wants to be governor. we have an exclusive interview with him next. ♪ trust that we do what's right for our clients, without the constraints imposed by the traditional brokerage houses.

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charles: key gop donor launching

a campaign of his own. investor foster friess is here exclusively announcing to run for governor of wyoming. we reached out to his opponent. >> thank you, charles. it is very exciting. i'm enjoying every minute of it. charles: that is interesting. last year there was some speculation you would even consider running for senate. sensing you have endorsed john barrasso, now looking at the governorship, tell us immediately what has changed? what have you learned? what was your epiphany throwing your hat in the ring. >> i'm designed to be more of an executive running $15 billion and managing 70 people, how you lift them up, how you evaluate them not on their past what they can become. focusing on their strengths and ignoring their weakness. the biggest thing in wyoming we have significant economic

problems and i have become friends with doug bergram and suzanna martinez who have to deal with same issues. they are oil-related. they have done a great job bringing other businesses. i don't think the government is in business of creating businesses and jobs but as governor i hope i can support my fellow citizens trying to help them as much as i can. charles: you believe government should create a backdrop inviting for businesses and jobs to develop there? >> exactly, the environment of, wyoming has a very, very beautiful, open space and a life-style and that is why wyoming is so attractive and people want to locate there. the people, ethic, kindness, and i hope i take the spirit from wyoming to create it. our nation needs to create some civility and part of that my role will be serving the people of wyoming but in the process

hopefully there will be some overflow that can make that happen around the country. charles: i have been to wyoming on several occasions, i got to tell you you're right it is a beautiful place, the people are wonderful and friendly and they're outgoing. you think, someone comes to new york city to work every day, why we all can't be like that. what do you make of the environment, in this country right now? you know, i know it has always been divisive. we know that but feels like tribalism, and bitterness, harsh bitterness. shania twain said she might have voted for president trump if she could vote. she had to take it back within minutes because people descended upon her. we're not allowed to have any opinions in this country. >> however if you look all the malls, you see, blacks, whites, hispanics, laughing together. on athletic fields you see embracement of black and white players in victory and consoling black and white players in defeat. if you get down to basic american people, we elected a

black president even though we're 80py white. we get the kingdom of d.c. spreading venom in the colonies. that will be easy to turn around. one of the greatest silver bullets to do that, look up rachel's challenge,.org. i put out a $2.5 million challenge grant, money goes into there. they go into schools they stop, they stopped 17 school shootings darrell scott was the father of rachel, the first columbine victim. her spirit of creating a chain reaction of kindness changed schools and communities around where bullying has dropped. i put finance in my high school. i could not believe the principal and students that wrote me. it changed the whole climate. suicides, these folks have eliminated three suicides a week. that is like 150 a year. so i think that is one way of dealing with the nastiness you're referring to. charles: foster that is amazing,

idea perhaps of a grassroots movement. instead of waiting for powers that be, because they benefit, let's be honest, large institutions a lot of organizations even media related sort of benefit from americans being at each other's throats. they benefit from the tribalism. you're right. you go through the malls, just regular folks out there trying to make it, trying to have fun, trying to get to a movie, whatever it is. i wish you luck. by the way will you still be able to donate in the midterms? if so, are there candidates you are looking at? >> i'm going to take that candidate by candidate. i'm a big fan of ron desantis in florida and rick scott's a friend of mine too. look what he has done with his diversification. getting back to the government role. i'm not in favor of giving a tax break to someone coming in to compete against one of my fellow wyoming companies. wyoming companies should be first in line for any incentives in order for them to grow first. charles: okay. so you've got your agenda.

you got your platform. you're not short of cash. good luck, we'll check in on you from time to time. you've always been a fantastic guest and very honest person and by the way someone we can all learn to look up. thank you very much, foster. >> charles, quick great news, i signed a modeling contract for fitness magazine, i'm before. if i lose 20-pound, i cancel the contract. charles: i'm working my way up to a good before picture. when i lose 20 pounds i'm taking a before picture. >> bye-bye charles. charles: mike pompeo may get a negative vote from the judiciary committee but why he could still get the votes to become trump's secretary of state. ♪

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♪ charles: mike pompeo's nomination for secretary of state is poised to get rejected

by the senate foreign relations committee. blake burman at the white house with the latest. reporter: embarassment here for mike pompeo, but at the end. day what is expected to happen later in the senate foreign relations committee, might not happen at all here is the reality when you look in the math. in the senate foreign relations committee, 11 republicans, 10 democrats, rand paul expected to vote no. still this would go before the full senate. there there are 51 republicans, paul being a no brings down to 50. ailing health of john mccain, 49. however, two democrats are expected to vote for pompeo. heidi heitkamp out of north dakota, within the last hour here, joe manchin of west virginia saying he will give his support to pompeo. this is what a lot of folks have been banking on for the democrats in red states up for election come november, to eventually support the

president's nominee for secretary of state. still, it would make pompeo the first secretary of state to get the thumbs down from the senate foreign relations committee which is expected to happen later today. sarah sanders, the press secretary, the president has been speaking with rand paul about his vote. head of legislative affairs at white house, mark short had this to say about paul earlier today. not holding back at all, telling reporters, i think it would be quite surprising to the voters of kentucky to see rand paul vote for john kerry for secretary of state and yet against mike pompeo. we still believe there is a good chance rand will see the inconsistency in those votes and vote for mike this afternoon. president trump turned his ire to democrats earlier today on twitter. here is his take on the whole thing. quote, hard to believe obstructionists may vote against mike pompeo for secretary of state. the dems will not approve hundreds of good people including the ambassador to

germany. maxing out time for approval of all. not never happened before. need more republicans. when it looks to get to the entire senate this looks to break pompeo's way. charles: blake, thank you very much. should mike pompeo be confirmed, we have christian whiten should the meeting should help. it didn't move the needle, did it, christian, with this committee it hasn't. maybe it did with joe manchin and heidi heitkamp. >> i worked on rex tillerson confirmation, we got four, a couple of pickups. manchin was one of them. that is nice to come along. warner from virginia could still come along. either way as was just reported he will pass on the floor but you have this astounding display of partisanship of democrats block voting on the committee. first time a committee used to be a bipartisan will give a no vote to a secretary of state nominee.

charles: what would be the rationale? what do they tell voters and american public why could you legitimately say i did not vote for this guy? we check the record some voted for him as cia director. >> that is big culprit tim kaine who voted for pompeo for cia director. changes his vote in the committee. he will vote no. donald trump is not big on dep employment he is will be like that. we have evidence that they have done with kim jong-un what previous presidents failed. charles: hypocrisy, what does he define as diplomacy? send them a pat of cash? this peals like the emit me of negotiations. it is tough, hard, transparent by starting to move, the needle is moving and pompeo making a move on that. >> he is willing to walk away

from bad deals. like reagan was willing to walk away from a bad deal with the russians in reykjavik in 1986 which led to successful arms control agreement. trump is willing to do that here. we have to ask the question if what the democrats are doing weakens, president and pompeo but the north koreans have to be watching this too. they're probably a little surprised. charles: i would suspect the north koreans, chinese, iranians, i would suspect all of these leaders in the rogue nations, nations vying for dominance of america are watching how much animosity opposition party has and they must be using that in their calculus, right? this gives them some leverage to some degree, none of them face this. china you don't have a media that hates the guy. he doesn't have to go back to congress. same thing with north korea, the same thing in iran for the most part. they do get some leverage off of this, don't they. >> that's right. they get encouragement i think more and they see you know, it's a false signal. i think the american people are

behind trump. polls show that clearly on north korea but it does weaken him. there are tremendous number of other posts open. ric grenell, ambassador to germany, stop on ric grenell for a moment? what the heck is going on? what is the record for for someone not being confirmed with these sort of credentials and qualifications? >> ric, who was here in new york as u.n. mission with all the fights in the 2000. doug manchester, respected business leader up for important caribbean post. with the example of germany, there are big things going on in germany. we need an ambassador. the embassy gave a ridiculous contract, very suspicious and unappealing that would not happen with a real ambassador. merkel could go either way on number of issues. we want to have our voice heard. charles: in this last mission to syria. she gave us moral support but other than that, you know, i think a lot of americans are surprised france through in, uk.

germany certainly at odds with america on very key issues. you need someone there working that from a diplomatic point of view. >> again, going back to the hypocrisy, this committee, foreign relations committee says diplomacy is so important. let's not just rely on military or hard power. now we see stunning display of partisanship impedes diplomacy. charles: president trump likes rand paul. they have a good relationship. perhaps marc short is the one attacking him. at what point, rand paul thought john kerry would make a great secretary of state but doesn't think mike pompeo does. does his entrenched belief in political ideology hurt the overall republican party and trump agenda? >> it does. again very peculiar he says he is northern interventionist. if you're impeding alternative to non-intervention are you really a non-ininterventionist. rand paul mass no plan for

north korea or plan for china. if we listened to him isis would not be the greatly diminished threat. all he does is wail about imagined prerogatives of the senate. at the end of the day the senate can bloviate but we need to defend our country. charles: christian, great to see you. always see you remote. >> have a great day. charles: 10-year near the 3% threshold. remember couple months ago that was to be the death knell for the market. maybe not anymore. see me tonight at 6:00 p.m. right here on the fox business network "making money". ...a mythical castle... and a grand banquet hall. this is not just a yard. it's where memories are made. the john deere x350 select series with the exclusive one-touch mulchcontrol system. nothing runs like a deere®

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it's a good time to get your ducks in a row. duck: quack! call to request your free decision guide now. because the time to think about tomorrow is today. charles: more rates on the rise as 10-year yield nears that 3% level. this as existing home sales are rising now for the second straight month. so what does it all mean for housing going forward? here to help break it all down fox business's deirdre bolton, connell mcshane and kristina partsinevelos is with us as well. deirdre, let me ask you first, we had a beat on existing home sales. looks like we're gaining some traction there. it's a fickle number. nevertheless it gives us something of an insight to this economy. >> certainly does. you have the shorter term yields going higher, right? a lot of investors are watching,

talking about the yield curve flattening. a lot of people beginning to maybe have a little bit of advanced anxiety. when this happened in the past, basically it has been a precursor of every recession since 1975. it is not causation but one data point. charles: the ultimate canary in the coal mine? >> that's right. more and more banks are putting out research. charles: here is the irony, kristine narcs we're concerned about the economy is overheated. how do we live in one world, one world where all the experts say, hey, if these yields invert we're going into recession, the other one is the economy is so hot we have to slow it down? >> i wrote a note goes against with what a lot of people are saying with flattening of the yield curve if this is anything but a buying opportunity. mark mahaney rbc markets, best market returns with the

flattening. >> i misspoke. i meant inverted. >> that we cross, that the recession is looming. what do we do? flattening of the yield curve. 10-year saying one thing. two year t-note saying something completely different. just a martie right now, expecting interest rate hikes. >> housing gets more expensive, right? if you buy a new house? charles: some folks have speculated for a wild maybe you need yields up a little bit to get fence-sitters to make a move? a sense of urgency, if i want to buy a house for a long time if the rates go up -- >> existing home sales suggested a little bit of that. i think i'm getting this right from 4.2 up to almost 4.7 during that time period. we saw a number beat expectations by 50,000 or so i think you're starting to see people saying themselves, i better lock this in right now before the rates go up even more. >> anecdotally we have the

reports about millenials they are trying to save just enough money to buy a house in any one of 15 metropolitan areas where jobs may be. that is sort of a side note. second biggest ever graphic. >> young people and their willingness to buy houses first rent them. >> i fall into that category. i'm far off. i won't be able to buy. >> what about the rest of us? we don't fall -- >> you guys live in new york. charles: that is a key point, affordability, in the existing home sales number for instance, 100,000, almost dropped 20, 21%. even homes in the sweet spot, 200 to 250,000, dropped by 8%. affordability is real issue. a lot of younger folks say how do you make that up? >> supply side too. affordability. according to national association of realtors, they're seeing the supply decreasing over 34 straight months. when you have these lower, more

affordable homes not even available, how can millenials, first-time buyers get into the market? first time homes 17%, that means connell move ad couple times. talk about tech because alphabet earnings after the bell. deirdre, this is your beat. you have the passion and understand this. i'm looking at two angles, economic and social, right? if the facebook hearings still have a lot of these companies, the day in the journal is a piece about google having more of our information than facebook. >> they do. the journal is reporting as usual is right on point. google has between eight to 10 times more data on the average user than facebook. there are a lot of people, especially facebook investors, why was mark zuckerberg dragged before congress for 48 hours and 10 collective hours of testimony? i actually think that is going to affect what we hear from google. i just checked on robin hood, right? speaking millenials, the app, no fee investment app known to skew

to younger investors, they're selling more this, ahead of google's earnings this afternoon, alphabet google, this afternoon, than before the last quarter. there is some anxiety about, okay, just how much rowing against the tide are these tech companies going to be facing? google included. as we know europe is starting to enforce these rules as of may, pretty much no u.s. company fair to say is ready to go with those. there is a lot of concern. charles: in "barron's" there is an article, a big article, front page about dividing this, the tech world. on one side you have folks that gather all information and one way or another, whether alphabet or facebook or yelp, other side of companies that facilitate, sell you things like apple or microsoft. >> right. charles: and feels like this divide may be the ones who sell is us things are going to be able to escape this extra scrutiny. that could help from investment point of view.

>> that is where you get the tension as well. apple ceo tim cook talking about facebook. their basic point we sell you this iphone and you pay x-amount of dollars for it. because you value privacy we're going to encrypt a lot what we put in the iphone to give you that privacy whereas in the interests of facebook and google to gather as much data as it can about as much people as it can. that is its business model in order to sell advertising. companies like ours, traditional media companies would love to have access to the amount of data these technological companies have not guess who the audience is and advertise the way we've been doing it for years and years. they are at odds, charles. >> do you think that is something in the future, privacy online? charles: facebook says we'll sell you stuff, if you don't like it, don't come on. if they're up front i don't think they will lose a lot of

people. it is gambit they will have to try. i don't think they will suffer much. >> one side note, getting back to europe and new rules go in place, nyu professor scott galloway spoke a lot about this. he says a shock across the bow breaking up u.s. tech companies comes from europe. he is public about this argument. europe has all of the downside and none of the upside. they can't brag these companies started on their shores but facing all the angst with consumers feeling, rightly or wrongly, their privacy has been invaded. >> they care about it more there. they culturally care. charles: remember you can opt out, the opt-out law? >> i think the market might be underappreciating level of risk coming from europe. that will trickle across the globe. charles: real quick, folks, something really important. video coming in of the royal baby. >> do we have a name about that? charles: not sure. thinking about connell. >> looks like a connell.

looks like a charles. we have good contenders. charles: has there ever been a royal named chris? >> bring my name into the mix. charles: i don't know. deirdre, you look like you love this kind of stuff. >> who doesn't like the joy? connell what do you think? am i antihuman? what is going on. it is fun and spring. what's better. charles: weak or so into earnings season you excited about how we look? >> i am. i think it is short term. i think it is great. charles: really appreciate it. we saw the first appearance of the new royal baby. we'll have a lot more later on in the show. we'll be right back after this. now i'm thinking...i'd like to retire early.

let's talk about this when we meet next week.

edward jones came to manage a trillion dollars in assets under care by focusing our mind on whatever's on yours.

from what i understand it would cost a lot of money and a commitment that he stays in power. are we able to do that? >> some conditions we might be able to do that. he also has to get up the shortly that was great stuff.

and we have joe with us, fox news contributor and independent women's form. listen, i just think this form. [inaudible] the good news is just never simply good news. it broke on friday on msnbc and they were talking about james comey. this is kind of a big deal. i know you don't like president trump at this is great news for the country. the fact that it's great news for the country should mean more than your problems with

president trump. you should be able to get over it be happy even if they don't like them, it's good for the american people and for the world. >> i see the same thing. after ignoring it, they find the negative spin. before the weekend was over msnbc, the spin was that kim jong-un was a brilliant negotiator. >> they cannot stand, they have so much in invested in denigrating president trump in seeing him fail. he was proving wrong. the american economy has been built to leverage it. he's building up our military can and for our allies, he is not capitulating or

deferring. that was president obama style. it's sometimes difficult to separate a person and their animosity from their professional obligations. >> believe it or not, some journalist don't buy it. the thing that probably drives the president the most crazy and something that he tweeted about is watching these pendants from past administrations who were themselves trying to lecture this white house on how to deal with north korea. it's crazy for the smart people have been saying trump is going to step on the banana peel. they just have not happened one time yet. turn trump is picking a fight with north korea. >> he's not a nice guy, by the

way. when president trump first started talking about north korea, i was not sure how to feel about it. i understand some people might have seen it as something so different as what's been done in the past but now that we are for a fact that it working,e recognize that it is working. it's time to give credit where credit is due. >> when you brought this up, the idea that it's time to tear some of the old rules because they're necessarily working for us. they become nuclear eyes, they have abilities, our trade deficits are getting larger and larger, we are losing key industries, there are certain things going on and if you don't mix it up, there's no such thing as a subtle science. whether it's economic science or social science. >> charles, you talked about it. you've been very persuasive about the terror threat. most of us have cringed at it

in a lot of ways. we don't have trade wars with our allies. no we don't, but it's true that it has put many american workers at risk. any deal with mexico, he saying is that the right tactic to take on this? particularly when it feels like we're close to some sort of major renegotiation on nafta. his is going to be a hurdle that sort of derailed that. >> announces a hurdle, but for majority of trump space they like to hear about the renegotiation of nafta and the border wall. tying the two together only reinforces that. what you have. trump is right, it's a must

like this border wall is becoming a metaphor for the trump administration success. that is old footage of the wall right there, but the president of france has just landed. we will continue to look at the moment. back to on the sprint i think we are very close. mexico has an amazing booming economy. there were 29000 murders there last year, mostly drug related. they have an issue with fennel coming in across the border and things like that. >> what comes down to really is how to pay for. it doesn't look like mexico's to be paying for the wall anytime soon and there's also a huge split in congress when it comes to the wall. were not just talking republican versus democrat, were talking in the republican party. if you can't get all the republican votes to fund the

wall that won't happen. right now don't see that happening. >> there is evidence that there's prescription for opioids i have dropped considerably and yet overdose deaths are going up and we know there's a new source for it, it's not just doctors and drug companies and it's got to be coming across the border. it's creating havoc on both sides, excreting death and mayhem. >> the synthetic fentanyl is causing many deaths and it's a very dangerous phenomenon to have. i view the wall, when i say wall, it's not just the physical structure but all the technology and personnel and all the administered mechanisms needed to assure that a sovereign border is a sovereign border. it doesn't mean it can't be a friendly border. if mexico wants to have continued success economically, they do have to deal with us. >> and get back to kathy

because an interesting thing showed only 43% support for the wall. a lot of that is just about people, texans pride themselves on owning that land. overwhelmingly they want border security. they favor national guard slack it's back to the point, there could be some commendation that is assessable to the american public to secure our southern border. >> i'm not summary was a supporter of the physical wall, i think it cost a lot of money and i'm not sure how much of a difference it would really make especially when you have people overstaying their visas and that sort of situation, but absolutely, border security is important to americans in medicare should be put that way in terms of it's not just the wall, it's also having other support and i think another thing that could help would be to and some of the welfare incentives that we have for people. >> that's a red carpet, thank you all very much. you can see he is arriving

ahead of president trump's first day dinner. we'll have more on that coming up. of course don't forget to tune into my show making money, i have all the latest developments on the market and how you should be positioned because were to break out real soon. ervous. but not so much about what market volatility may do to their retirement savings. that's because they have a shield annuity from brighthouse financial, which allows them to take advantage of growth opportunities in up markets, while maintaining a level of protection in down markets. so they can focus on new things like exotic snacks. talk with your advisor about shield annuities from brighthouse financial- established by metlife.

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president macron is arriving for president trump's dinner. he said sunday the two leaders have a special relationship because of the way they were elected. this is democrats are still calling on the trump campaign. made a mental block trying to justify this, but just like weird. it really was weird. this was the ultimate loser syndrome. >> first we have the fbi investigating these warrants and we have a special counsel investigating and we haven't found anything. they need a russian cloud over the top of the administration.

there was a lawsuit against the rnc but certainly completely different set of circumstances. >> the president has make clear the republican position which is that they are trying to find out what happened in 2015. who did what. this opposition research, the discovery lawsuits are looking forward to that to find out what people are saying to each other. it was just like the text messages that change the dynamic. >> also representativeness of the weekend saying the probe may have started without any real intelligence, like in other words it was just really

, it's becoming more obvious that was purely clinical from the very beginning. >> i think that's a really big deal, i think there's a lot of honesty and house-senate, i think he was looking at the electronic communication that was recently about how they started and it was a deleted paragraph and i thought this might have some information that british intelligence past and it didn't. they were wondering what caused this, wasn't just political. it comes at the same time we have the dossier, still questions about that. when the fbi director briefed the president, he didn't tell him that it was a piece of opposition research commissioned by the clinton campaign. >> where we go from here? it feels like on one hand were getting these actions and were knee-deep in these investigations, there's no turning back, i don't think president trump is going to fire anyone, i personally hope that he does not only because it feels like the finish line

is near. i would suspect from what we know so far it will be good news from the white house and consequently good news for the white house has been good news for the stock market. >> i think it may not be good news for everyone. the report is going to come out pretty soon and that was an investigation that was done because democrats claim that jim comay had thrown the election with his last-minute press conference. that caught up and remicade and his wife did collect money from clinton affiliated, some of her old friends so i think we will learn a lot more about the intelligence services but i would like to know chairman nunez, what was the role of sidney blumenthal. this is counterintelligence and so forth. what is sidney blumenthal doing in the midst of this scandal? >> isn't it ironic that barack obama, upon given hillary the job sciences this blumenthal tie has nothing to do with that. >> he by the way was a creator , it wasn't donald trump, it

was blumenthal. >> we always found out a fraction of this for the most recent one was the comay memo. >> here we have president macron and his wife joint base andrews, president trump will have his first state visit this week. he also hosts angela merkel. it's a big week for him with two key leaders with a lot on the table and the agenda. certainly very exciting. interesting enough ring this time they went from that handshake competition where they both sort of wanted to see who had the strongest grip to now a real bona fide friendship and i think it will benefit from us. tell me your thoughts on all the things on the agenda with respect to france, germany, europe in general and the world. >> a lot of it is the middle east, a lot of it is terrorism and mr. macron joined the united states and those strikes on syria and i think

the strikes were limited to chemical weapons manufacturing to get the international participation of the tree some a government and the macron government to join us. >> but that in and of itself speaks to the maturation of president trump and the job and listening to externals and his advisers, not the old cowboy president trump that we saw. >> the ironing is his cowboy stuff he can pains to be anti- cowboy. he campaigned on two things. he campaign that he wasn't going to be weak like president obama so i think he likes these shows of force. the question is, do you need something more sustained, for example no-fly zones in syria to maintain the gains that we've had. i think he's very reluctant to do that. >> packets back to perhaps a campaign promise and a lot of people, to your point, a lot of people on the republican side got tired.

i want to bring in the host of kennedy. kennedy is with us. >> i charles. >> hello. >> you're bringing in spring. >> that's right. >> i always have love in my heart. >> you have love and warmth for the new trump approach to foreign policy? the allow for syria? >> i think there's a clear enough strategy to say that there is not enough or too little. i think that's when you get into some problematic situations. if we are going to invest that money, invested over here. it's the department of defense.

that's why they lobbied for a strong defense budget but it's not for the department of offense and that's the problem i have. i think he is going to have much more success in north korea and i think that type of diplomacy which is certainly a shift in american foreign policy, that will translate to our allies in europe. >> does north korea take president trump more seriously when he responds. >> it's hard to say what they respond too. they respond to the unpredictability and they are in utter desperation right now i can't see their own military. even the upper echelon members , that very small oligarchy in north korea and those most elite fighting forces. they don't have any food in there so desperate and now that china is being squeezed geographically and economically, that's also having an impact. the fact that they don't know exactly where the president is coming from, that

unpredictability, you can't say it's just one thing but there's certainly a different kind of response that we seen in past. >> into your point, the more recent, when they defected, that's typically the best, your elite forces and this guy , what you make of it this week. it can be a big week. you have the state dinner, andrew macron, a lot on the plate. >> i think macron extending complements and criticisms to the president is a better way of addressing their friendship with the united states and i think she would be very wise to learn from that.

[inaudible] >> i guess are somewhat at odds because germany uniquely benefits from our economic arrangement. you talk about a hundred 51 billion-dollar deficit last year, a sizable chunk, they benefited from the euro. this would put michael a lot more odds and there's immigration. i'm not sure if he's coming around, but she was really big on sort of open-door immigration. >> yes. >> i understand that. trying in the spirit of the eu to have economic prosperity, i certainly understand that, but at the same time they're very different. she's going to see that germany has always found a way to succeed and rise up even when some of their neighbors and partners around them are crumbling. they get very frustrated having economies in portugal and greece.

>> they were designed not to stop them militarily but stopping them or slowing them down economically under the eyes of slowing them down militarily. they find a way to raise their economy. we pay a price around the world. >> yes we do. that's part of the success. the american strategy is not to keep us in the ashes, it's to become self-sufficient. >> so bottom line your helpful. >> i think he likes having success in foreign policy and i think he will do well this week. >> i did you. >> what this visit means, that's can be a big one. we will discuss right after this.

>> we are very happy to be here with my wife bridget at the invitation of president trump and the first lady. this state visit is very important for our people and very important for us. will have several conversations with president trump this evening at mount vernon and tomorrow at the white house. i will deliver a speech to congress on wednesday and during the state visit we will

have the possibility to discuss a lot of bilateral issues and to discuss about security and trade and a lot of issues that are very important for our countries and beyond our two countries. this is a great honor and i think a very important state visit given the moment of our current environment. [speaking in native tongue] [speaking in native tongue] [speaking in native tongue]

[speaking in native tongue] [speaking in native tongue] [speaking in native tongue]

[speaking in native tongue] >> that was emmanuel macron speaking at the first state dinner. we want to go to former senior advisor to the senate formulation there's a lot here. what do you think the number one issue will be tonight. macron and merkel want to get him to change his mind on the

deal >> are coming to the united states and saying were coming to you on your turf, your the big man on campus and we want to convince you that you don't need to throw away this deal in world politics. i think he was right to be skeptical of the deal and he was right. the best way to get to a good deal is to negotiate from a position of strength. >> re- imposing the sanctions, how would we impact our relationship with our allies >> a lot of people are saying it would disrupt our allies and would be left alone or isolated. the reality is they said the same thing when congress passed these very sanctions in 2011 and 2012 in the obama era fought them. they have no real choice but to go along because the secondary sanctions actually require people to choose between banking with the u.s. or doing business with iran.

we had a trade deficit. it's not as agrees just as china but it's tough for america to do business in europe than it is for europe to do business in america. this is not unusual. the more we push back on that, it's important to ensure that we have fair access to those markets. militarily, president trump last year, when he went to europe , it was like here's a

guy who's in above his head but that's sort of the typical reaction to any american president unless it was president obama who was loved by the rest of the world, but republican presidents are we seen as a big giant power-hungry cowboy who will destroy the world and yet it feels like president trump has got nato to do the right thing. perhaps rejoining their charter. how much further do you think we can go there because perhaps last week only fought back against syria and we had those strikes, germany set that out >> look, the europeans have always been allies of ours. that's why it's important that the president go to them and say look, we need your support in some of these areas. if not we can do it on our own. director pompeo is a part of these issues. at the end of the day nato,

we've taken on that burden that's an important part of our relationship with the allies. it's important that we stay strong with them and we know that they there from them and they had to be part of the deal too >> someone might call that reciprocal >> exactly right. we love the good news and the bad news, right after this

the treasury yield is quickly approaching 3%. that would be the highest market about four years. mark sandy is here, a few weeks ago when we started to see the yield make this move, the market fell out of bed and everyone said i was going to be armageddon. it feels a little cooler this time around. what has changed? >> earnings. you're talking about the stock

market. we've done very strong corporate earning pretty few go back a few weeks ago i was still an expectation and now it's reality. this is push and pull between strong corporate earnings and higher interest rates. print group and continued pressure on the market >> we knew we were going to stay at zero for ever and we knew the yields were going to stay at these levels forever. i get your point on earnings. so far were near full employment. how important is it to justify or nullify higher yields >> strong economy is important. clearly businesses can make money unless they can sell their producing. that's a strong economy. at the end of the day, a stock investor trying to put down

cash for a stock is going to look at the earnings of the company that they're messing in, but yes the economy is very important to that for the economy is not performing well, then starts will perform well >> what you make of this dual narrative that's going on as yields start flatten. at the same time extraordinary anxiety and fear that the fed will overdo it and raise rates to quickly >> i do think with all of the deficit tax cut that the economy will grow and unemployment will continue to decline. that is never ended well. the fed always overdoes it. it's very difficult to land that monetary policy plane on the tarmac and i imagine the

have difficulty doing at this time as well >> to the ever take into account mainstream circumstances? when i look at the savings rate of america, every time it gets too low it goes back up fairly quickly. i feel that we have a public that has lived through this great recession and some of the assumptions on wages and the automatic inference that will create a certain amount of inflation, i'm not so sure that will come true which makes me worried that the fed will cut this off just as main street which has been hunkering for a long time to get their heads above water is just starting to see a little bit of semi- here. >> i think that's fair, but i tell you a couple things, people aren't behaving as if this is different than the great recession. if you look at the personal saving rate, that's how much you and i save in our friends and family, it's pretty close to a record low.

if we were behaving differently, that savings rate would be higher. the second thing i would say is i think the fed is sympathetic to what you just said. they're going to wait longer in hope that inflationary pressures don't develop or develop quickly because they are focused on main street. they do know a lot of people have struggled a lot in the past ten years and they want to get them out from under. i suspect they are sympathetic to that argument. it's one more reason why i think the raise rates but don't raise them relatively slowly in the context of very low on employment. >> market, we are starting to get enough earnings in that we can make some assumptions. it looks like we will do better than expected. so far we have the guessing game coming into this with that is going to be an amazing earnings season anyway. how do we keep this going because now the big argument or one of the big things emerging is that this is peak

earnings >> we will get these great numbers you talked about that justify higher stock prices, but the guidance perhaps for the ability to duplicate them becomes a lot harder >> i think that's fair, it's going to be tough. obviously the tax cuts, corporate tax cuts going from 35% top rate to 21% is a big boost to after-tax earnings. that's just arithmetic. you can't replicate that. now going forward it will be much more difficult for companies to maintain earnings, particularly in the context of falling unemployment and accelerating wage growth. i'm a business guy. i employ several hundred people that report to me and i am looking at the difficulty i'm having holding onto workers, and by the way, all over the world. not just your the u.s. wages are going up. if they're going up, that puts pressure on the cost side of the earnings picture anything it makes it much more difficult for companies should generate the earnings growth

they have >> you been more optimistic in the last year a couple years, overall, despite all the different things that could happen with this economy and all of the other intangibles like form policy, are you still pretty optimistic about where were headed as a country? >> yes. in the next year or two the economy will be fine. we have a lot of stimulus coming in. a big increase in government spending, that will just things up. on the other side, when there is no stimulus and interest rates are higher, i worry about that. i am optimistic about the american economy's prospect. does this old adage to say something like if you bet against the american economy, you have invariably been wrong. this is a fundamentally strong economy and it takes a lot to push it off the rails for any extended. of time

>> thank you. it's always great having on >> after a fatal flight, faa calls for engine checks, the fallout that you need to hear, right after this.

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do you hate getting those robo calls? everybody does. washington is looking to stop those illegal calls. edward lawrence has the details >> charles, it is the number one complaint to the fcc and the ftc. it's a big problem. last year three-point to billion robo calls, unwanted robo calls were made last month alone. today the fcc and ftc put on an expo which some of the solutions to the problem they believe technology allows the robo colors to make those calls, but it also could be part of the solution. there are apps out there and boxes you can put on the hard-line going into your house that will divert some of these phone calls before they get to you, but the technology allows these companies to know which numbers that out millions of phone calls each day and you can block those numbers for the fcc said this is a good start to the massive problem but does not just one fix.

>> it is a difficult challenge and there's no silver bullet. i think as a government, the private sector and the american people work together than we can significantly reduce the number of robo calls that get through. >> just last week the man who the fcc calls the robo called kingpin testified in front of congress. they levied or proposed $121 million fine, the largest in the history against him for making 96 million calls in three months. as the enforcement is picking up, so are the robo calls. hopefully they will make some headline. headway. we appreciate it. fallout from the southwest flight, they are canceling dozens of flights. day over injun inspections. airline regulators are calling for emergency boeing 737 engine checks. oliver mckee is here. should this be a concern for fires? you've got nine years without

any u.s. fatalities so of course, anytime something like this happens, it gets our attention. are they doing enough? >> yes they are. this is the first time we've had a fatality on southwest airlines in a 51 year history. people are asking right now, is this going to happen to me next time i get on an airplane, there wondering what happened. what were talking about is this is a one in a million chance. you can be sure that the airplane system is safe, but also, southwest is stepping up and so is the faa. they are looking at inspections, more fatigue cracking, were talking about the micro- aging of aircraft. micro cracks that are hard to see and when this blade broke off, we essentially had a blade salad that tore up the cell and went through the fuselage and that's unacceptable for safety reasons. they are stepping up and looking at this.

this is a long-standing decades the program on the aircraft structural integrity program developed by the great, late jack lincoln. we are looking very closely at using the advancements in nano and micro technology to look at cracks >> let me ask you, before we get to that part you say one in a million. this 40 million flights year and i know you're just throwing out a number, but that still seems like for the average person out there you had an air pocket and you start to wonder. what causes the weight come off. was there something with the belt? i thought immediately to the old car, the belt they used to wear in the cars and how quickly they would wear and how do you monitor for something like that? >> essentially i always am i class on aircraft structures, aircraft engine is a controlled bomb. it's a high-energy system rotating at high rates of speed, 10000 rpm in the front engines. sometimes these blades are

susceptible to fatigue and overuse. sometimes that's associated with cracks that exist. when it breaks out you have a high-energy projectile that can break through the cell but this engine was designed to contain all that like we have in general electric and rolls-royce. >> how much of this calls for regulations or how much of this is incumbent upon the airlines themselves to do more screening to step up their processes and add another layer or two >> you think you're right part another layer is necessary but this is also critical in the structure that were looking at. we are looking at advances in science and technology and will be looking closely to new materials and nanotechnology as well as going into a national quantum physics

initiative that essentially looks at how new materials bloom and change at the quantum microlevel. at the molecular level. we will really be talking about how we look at new detection technology and evaluation technology so that we can see a crack that we can't see. not all cracks are created equal. we need to advance those technologies that are developed by jack lincoln in the structural programs by the u.s. air force to get better at the >> between now and then, this future that you're talking about that sounds amazing, are we using these planes too often? they land, they clean up, they turn them back around. what level of comfort should our viewers take with the current situation? >> i think our viewers can be rather comfortable because this is really a 1 million chance of happening but also charles, your question is very excellent because we always have to be in touch with where we are going in so far as

making sure we have these non- destruction technologies advanced and that we use what we've learned from military infrastructure >> thank you. we always learn a lot. i always take out a pen and try to take notes but i can't even spell what you said. >> there's a big week for the white house ahead. with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. fidelity. that's it. i'm calling kohler about their walk-in bath. nah. not gonna happen. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm.

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charles: another very busy week for earnings. alphabet after the close. making money, the market on cusp of a major turn around building a base for it. here is ashley webster in for trish regan. ashley: every day is busy day, charles. macron landing at joint base andrews. he beginning as a three-day state visit hosted by president trump. u.s. treasury yields creep towards 3%. sparking fears of a bear market on wall street. i'm ashley webster in for regan, now on toe "the intelligence report." both men have a lot riding on this week's visit where trade and iran iran