that point they would be pretty sad. i don't know, then you have to say that the price of all your other goods go down. maybe if you understood that as an overall concept. great job, connell. love it. connell: all right, melissa. melissa: fantastic stuff. that does it for us. bulls and bears start right now. hi everybody. this is bulls and bears. we're glad you could join us. i'm david asman. joining me is steve forbes, john layfield, rick unger and erin gibbs. we will show you some live pictures of the george h. w. bush presidential library. this is in college station, texas. and it is the final destination for our 41st president. we are awaiting the arrival of the president's casket traveling along with the bush family and friends. the train, that train number 4141 has arrived. the casket has been transferred into the hearse. we will be bringing you the final ceremony before he is laid to rest. scheduled to begin later within this hour.

you don't want to miss that. first stocks staging major comeback this afternoon. the dow closing down only 77 points. at one point it was close to 800 points down rallying on a report that the fed may take a more cautious approach to raising rates, but it was big news from canada that sent stocks plummeting earlier. deidre bolton is standing by in the newsroom with more on the developing story surrounding the arrest on a high-profile chinese tech executive. hi. >> hi. the u.s. is upping the ante against china. canadian authorities say that they arrested the cfo of a company. the charges are related to alleged iranian sanctions violations. it has come to light in the meantime that national security advisor john bolton knew of the arrest in advance. in an interview with another news organization, he said i knew in advance. this is something we get from the justice department. these kinds of things happen with some frequency. we certainly don't inform the

president of every one of them. you don't know exactly what's going to happen in terms of a particular law enforcement action. that depends on a lot of other circumstances. according to a white house official, president trump did not know about the extradition request before the dinner at the g 20 this past weekend, with the chinese president xi jinping. the company has been at the center of this u.s. china rivalry since the summer. in fact the u.s. barred its equipment from u.s. networks seeing it as a potential back door to espionage. the trump administration has even ramped up one step further trying to get american allies to ditch the products. as you know, they build next gen internet mobile networks known as 5g, very much the future of all mobile technologies. it put out a statement saying it follows all export laws sanction laws and business laws in regard to the u.n. u.s. and eu. most experts say the arrest means that tensions between the u.s. and china will get much

worse before they get better. of course this comes at a very delicate time as the world's two largest economies try to establish a trading relationship. david? >> steve forbes here, the timing of the thing, was this meant to ramp up pressure against the chinese and starting to make discussions and concessions on tariffs because they could have arrested her any time in the last year or two. why now? >> some people do find it somewhat coincidental let's call it that. others say it will be damaging to the talks. deutsche bank put out a note saying you know what? we had in the next 90 days about a 40% chance we had already factored that in of the u.s. and china reaching some form of trade agreement and now with this, which is a very high-profile case. i mean the company is seen as a big success in china. it is going to be difficult for the chinese premier to go back -- or chinese president rather to go back to the people and say oh we gave this concession to the u.s. while they have arrested the cfo of

one of our major successful corporations. so deutsche is actually saying it is going to hurt investment and it is going to hurt the markets. and they are now saying instead of a 40% chance of the u.s. and china being on the same trade page, it is down to 30%. >> deidre, something like this, should this have been done a year or two ago to get the chinese to pay attention to our real concerns about trade abuses instead of putting sales taxes ie tariffs on ourselves, we put them on them but we're hurting ourselves as well. this kind of thing is very very potent but it hurts them, doesn't hurt us. >> i think so many people would agree with you and why we have handled our trading relationship with china the way we have for a decade or even longer. that is a big open question. i'm with you, steve. i think that would have been a great idea because this is really the heart of the matter, is ip, intellectual property theft and the way that at least our sources tell us that china goes about doing it, which is to place tech companies in our

country, our allies' countries, information that way or to force joint ventures between our tech firms on their soil. >> guys, is it just me or does anybody else find it absolutely bizarre that the president of the united states, who sat down at a dinner with the president of china in what was certainly the biggest event of the g-20, certainly from us, that he did not know that this was going to happen? take away whatever you think about the president, his policies, what's going on at this white house? >> well, the white house says they didn't know. i mean, that statement followed john bolton's statement saying he knew and very clearly said listen this comes down from the justice department, and we don't tell the president every single little thing. >> negotiate every single president of other countries every day. i'm amazed. >> i understand that. i don't think the chinese are going to believe it, though. it may be true. you had the last meeting that the president had with president

xi in mar-a-lago, during that meeting, 59 missiles were put into syria. and now during this meeting. i don't think the chinese are going to believe this. even if it's true, i believe we're backing them into a corner here, and there's no way for the chinese now to save face and be able to find an off ramp to get off these tariffs without saying never again, which has been their motto since -- >> that was the point of the deutsche bank note, saying now there's no way out and whatever concessions, exactly to your point -- that the chinese president cannot give any concessions to us after we did this. >> certainly it does look like it is going to be damaging, regardless of whether he knew it or not. i think it is also really interesting that we've had so many announcements particularly around the 5 g technology for u.s. companies cell phones and so on. this is going to be one more hindrance. so a, i would say this looks more like a cybersecurity technology versus truly trying to hurt the tariff issues. >> i think that's also what we have been talking about in the

sense that china and president xi jinping has made it clear that he doesn't want to be this made in china sort of cheap manufacturing center for the rest of the world. so t-shirts and toys. i mean they really want technology and other high-powered industries. they have all but said that it is really not fair that the u.s. has its position in some of these high earning industries. david: by the way, timing -- we are talking about timing for the u.s. there's also the question about timing for china because china knew about this when it happened. and yet a couple of days afterwards they were talking all nice and good news about trade with the united states, extending olive branches. it wasn't until the news became public that they started using words like hooligan in describing the u.s. i'm just wondering what's going on from the chinese side. it looks like xi may be getting some pressure to push back against the u.s. >> well, i think that has to continue -- i mean what happens after this 90-day freeze is very much an unknown.

i think as we have been talking about the markets, that's one reason why we have seen a huge sell off -- david: absolutely. >> -- i mean 800 points down in the past two days that we have been active. obviously we had the one day of pause. been something like 1500 points lower on the dow. david: right. deidre, thank you very much for that report. we're saying farewell to bush 41. the president's casket nearing its final resting place. we will take you live to college station, texas, for the latest, the last ceremony in honor of president george h. w. bush. that's coming right up. so a tree falls on your brand-new car and totals it. and as if that wasn't bad enough, now your insurance won't replace it outright because of depreciation. if your insurance won't replace your car, what good is it? you'd be better off just taking your money and throwing it right into the harbor.

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david: just a day after meeting with ohio lawmakers, general motors ceo back on capitol hill today. take a listen to what she said just after meeting with michigan representatives. >> it's important for general motors to make necessary but incredibly difficult changes to make sure that we can be in a leadership position. so general motors is strong to provide jobs, provide manufacturing and to provide leadership in the transportation industry as we move forward. david: michigan democratic congresswoman and a former gm executive was at the meeting today. she joins us now. congresswoman, what is mary barr

doing wrong? >> well, look, for starters the way the whole thing rolled out was not right. but i think what probably got expressed by republicans and democrats at today's meeting the most was the concern about how much production was being moved to mexico, which was contributing to the low volume that's at these plants. 80% -- it's almost 800,000 units that are being built -- that were built last year in mexico and 80% of them were shipped back to the united states. so we need to have a level playing field, and we're concerned about the decisions that are building, for instance, the blazer with the most recent building these cars in mexico. >> congresswoman, gm went bankrupt because they ran their business very poorly and now they are trying to run their business profitably. it seems to me now the government is telling them they should not be doing this. once of the principals on the bulls and bears had this to say yesterday. roll the tape, please. >> i was reading through some of the transcripts and i can't remember if it's a senator or

congressman that used to be a gm executive, i don't know how long, i don't know what she did, but she said i want to go through and review their product plans. that's some senator or some government representative is going to go through the product plans of a company and make sure that they are to her liking, incredible. >> congresswoman, are free markets dead? >> first of all, that was taken out of context. i'm not looking into their product plans but i want to know that they are playing on a level playing field. it is cheaper to produce cars in mexico because of deliberate trade policies. i'm concerned about that. and that's what i was saying. i do not think that the free market is dead. i am very aware that this industry is a cyclical industry. it used to be that if we were at 14 or 15 million units, we thought that that was a very good sales year.

now we've been at 18 million and back to 17 million. i understand that we're competing in a global marketplace, but i also understand that we're competing with countries that care about supporting the companies that are producing in their countries, and i want to make sure that we're not giving tax incentives or we don't have trade policies that are making it less competitive in this country. i want the united states to stay at the forefront of automobile producing mobility. >> it does seemed like a lot of the comment that seems to be that you want them to make cars that nobody wants to buy. they are looking at the highest profit growth for next year. we don't want to change that. that's a good growth for a long-term growth overall and having plants both in the u.s. and outside of the plants. how do you present it so that they can make cars and still be profitable? >> well, for starters, i would like to see workers -- you know, we're competing in the united states with wages that are $1.80 to $2.80 an hour. that's very hard to compete in

that kind of competitive marketplace. so what i would like to do is to level the playing field for all workers. but, you know, they are going to produce, look, i want to see general motors says that they are going to produce more than 20 electric vehicles by 2025. i want those cars built here in the united states so what do we need to be doing? but we also -- look, mary barr and i have known each other for a very long time. and i was very intense and i'm still intense. i want to make it clear that i respect her but i'm not afraid to tell you what i think. and i -- at times general motors sends out very mixed signals on what public policy they are looking for. we need to have a united industry as we're talking about different policy, alternatives, if we're ever going to understand what they want. we had a very candid conversation about a lot of things today. and i want to work with general motors to make sure that they are successful, but i also want to protect jobs here in this country, not see them shipped

overseas. david: congresswoman, we appreciate you coming. i'm sorry to cut this short. we do have the memorial for president bush there and we do again thank you. please come back and see us again. meanwhile, we are going to take you back to live pictures. this is the presidential library in college station, texas, the final resting place for president george h. w. bush. of course the 41st president. he's now going to be honored with a ceremony, 21 fighter flyover. let's listen in as we see george w. bush, his wife and family go to the casket.

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david: beautiful ceremony. there's just really did it right. of course george w. h. bush was 94. they had a long time preparing for this moment. but still, everybody's handled it so well over the past week. steve forbes is here with us. he worked with george h. w. bush when he was in the reagan administration. what are your memories of the

man, steve? >> just what everyone has been saying, gentleman, real values, extremely knowledgeable about the world, always wanted to hear your view of things, and the personal touches, whether it was calling me when my father died and talking about what his father meant to him, those gestures, the notes, the hand-written notes, so big things, small things, he did it right. i think that's one reason why we have the outpouring of emotion. this man was a treasure. david: are you a little surprised at how much of an outpouring there was? i mean, a lot of people wondered whether there would be enough people to come, and it was overflowing both in washington and in texas. >> i think there's a greater appreciation for the way he handled the cold war, not a shot being fired, the dissolution of the soviet union he made it look so easy which is part of the task of a professional, but you tend to underestimate the difficulty of making that happen. and i think too the way he

conducted himself, being a fighter from the second world war, patriotism, being a man -- a gentleman but a tough man at the same time. these are the kinds of qualities we want to see more of. i think it is out there, but people yearn for it, and i think that's why you had the outpouring. they want to see future george bushes. david: patriotism and decency, those were the hallmarks of his presidency and his life. we will be right back.

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david: a lot of big tech ceos are at the white house today, meeting with administration officials. blake burman has the details. >> some of the biggest names in tech converging on the white house. the leaders of microsoft, ibm, google, oracle, and qualcomm, plus the presidents of mit and

carnegie mellon university along with henry kissinger meeting with top members of the white house, jared kushner, ivanka trump and larry kudlow to name a few while we're also told that president trump stopped by the meeting as well. senior administration officials describing it as a listening session to talk about artificial intelligence, computing, 5 g and advanced manufacturing. one official saying quote we want their suggestions on how we can create an environment to dominate in these industries. also joining the discussion the president's top trade rep robert lighthiz lighthizer. one official saying he was brought into the meeting in anticipation that the ceos would want to discuss the theft of intellectual property. that is at the very top of the list for president trump and his trade team as they engage in ongoing discussions with china. back to you in new york. david: all right, blake thank you. how will the president press these companies about the bias he sees in social media? >> well, david, this is amazing

about these companies who know the political world they live in that they haven't gone out of their way to make amends to every constituency in the country. in the old days, at&t before the break up in the early 80s made sure they ran ads in every magazine and newspaper, they were kind to everybody service was at the top. when somebody had a problem with a university that was perfectly harmless, they should have tended to it right away instead of saying it is all about algorithms. their tone deafness is astonishing given the vulnerabilities they face in this environment. >> i have to agree with what steve said. it is like they've been so high and on top for so long they've just lost touch with who their customers are and what their customers need. but i do have to point out one thing, i would have much preferred that this meeting at the white house today was more focused on google's decision to go along with the chinese government requirements of censorship. you can't have it both ways. you can't be okay business, do

whatever you want if you're going to make money and then stand up for american ideals. google should have taken a pass in my estimation. >> and talking about google and then turning their backs and working with the pentagon, come on. >> i disagree on this. china has been within the u.s. companies for ages and we're complaining they are too involved. they are an opportunity to get your foot in the door, particularly a place like china, with that type of growth, why shouldn't we be there too. david: because of the fact of what we have seen from china, particularly today, see how they play dirty. ibm used to have a deal with them and they stopped that. >> if we're not there, who else is going to go in? i think if you are on the playing field and you have an opportunity to talk, if you're at least at the table, that's an opportunity rather than closing the door completely. >> it never works that way. >> but that's where one we should have been united with our european allies, canada and

others, and go to china and say these certain practices are unacceptable. you have to work to do away with them. that way i think we would have made more ground than hoping google could change the way china operates. >> look, i disagree with china dealing with -- google i'm sorry dealing with china this way with the censorship, but it is their right. just because i disagree with that, doesn't mean that that's not something. if they want to get into business and the chinese market, they have to decide what is the greater good for their business. their decision is to go in under their restrictions. that's what you do with foreign countries. you can make a decision at that point whether or not you want to do business with them. to me this is short-termism. i don't know why anybody would alienate 50% of the country by being conservative or liberal. i think it is a terrible decision. artificial intelligence is where we need to rule the world like china is trying to do by 2025. i applaud this summit and what's

trying to come out of it and that is to be the leader in artificial intelligence in the world. david: you have to give them credit for getting all these people together. they let their biases fall by the wayside in order to do well for the industry. guys, thank you very much. coming up next, the ceo of u.s. steel on how he thinks president trump's tariffs will impact the steel industry and consumers. that's coming up. >> he is doing the tough things to get people to the table to have a conversation.

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what do you think? >> perhaps mary barra could talk to them, what happens when you get in bed with the government. it is like joining the gang, you can never leave it. so their flexibility in the future is going to be severely restricted and it also when you're protected by the government, your innovation goes down which is going to open up the market to the real innovators. >> i agree with steve. look, this administration has done so many good things for this economy. the tax cuts, the cuts in regulations, one of the reasons we had 4% growth a couple quarters ago, 3 1/2% growth this last quarter. however to me these tariffs are absurd. this is self-sabotage. we are doing things i think can structurally hurt our country. i know we have to go through china and intellectual property theft. i don't think this is way to do it. you look at soybeans that cannot be sold. china buying soybeans from brazil, helping them build their export infrastructure. we're not going to lose those contracts this year for our farmers in america. we will lose those contracts forever.

i think something needs to be done about this to protect 200,000 people in a steel industry there's other ways to do this. >> i completely -- >> the stock price is going down because investors can read the actual data. i saw that report. it was all a bunch of nonsense. you go to the heart of the rust belt, towns like youngstown, ohio, huntington, west virginia, they saw employment declines following the tariffs. go to the top ten metropolitan areas in the country for steel production, four of them saw job declines, six of them saw what you would call anemic growth, 0.8%. that's lagging by half of the national rate. this is all nonsense. with every job, look, u.s. steel created 400 jobs last year. i'm very happy for those 400 people. i truly am. but you know what? it costs even more jobs in other industries. what he had to say was just propaganda and nonsense. i'm sorry. >> to your point, steel is only about 3% of the u.s. market. and when we look at industries that have to buy steel, we're

talking about 20%. so, you know, multiple of seven times just has an immediate impact, a negative impact, and that's something that i think we should be concerned about. david: you deal with stocks. u.s. steel -- you look at it, march is when the tariffs came in. you look at the one-year graph. march is exactly -- that's a three-year graph. look at the green arrow. that's march of this year. it kept going down. it went down from about 44 down to 22, which is what it is now. >> yeah, so you are looking at either competitors buying -- sorry, purchasers looking at finding new alternative, something other than steel, going to somewhere else, or just making less, and that hurts the whole economy. >> we tried this in the early part of the last decade when bush 43 put in tariffs on steel, and some jobs were saved, but each job saved, five were lost in the rest of the economy. so we have seen what happens when you do this for a while. >> took them off two months after he put them on, it was

such a disaster. david: another contradiction with the trade policy which is the tariffs and embargoes and everything is supposed to help our trade deficit, to increase our trade with the rest of the world. in fact, we just had a headline from market watch, the trade deficit has hit a ten-year high with china as they are shunning our soybeans. i think john mentioned that. they are giving up our soybeans for brazil. so the tariffs which were supposed to help our trade imbalance are actually hurting it even more. >> well, it's like steve said, we have seen this movie before. it cost 200,000 jobs by the bush administration's own survey. it also got the biggest fine in wto history. we have seen this before. aren't the republicans supposed to be the free traders? i mean we're talking about taking over general motors? talking about -- >> -- stupid party and sadly sometimes we live up to that. >> couldn't agree with that. >> i'm sure rick. we are giving you the ammunition.

house democrats are resurrecting a talk of a federal gas tax increase to pay for the trump administration's long desired infrastructure program. but could president trump actually get on board? we will discuss that coming next.

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defazio plans to reintroduce the legislation to raise gas taxes to pay for infrastructure repairs. is there any way this president would sign in on it? >> i hope so. '91 and '93, they stole the money. it's like having an alcoholic buddy and saying i will give you some more jack daniels. they spend like drunk sailors. >> i don't think we have to worry too much about it since this has been in discussion for decades and has yet to be passed. i think there is a possibility

we'll be driving electric cars before it gets passed. i question whether it would be beneficial. but i question more about whether it can get passed. >> i do think it's something we have to do. we do have to improve the infrastructure. it's getting dangerously bad. but i do agree with him when it comes to the accounting issues. >> the structuring, there is graft in the bidding process. that's where a lot of the money goes. >> this president may not fall into the trap of any tax increase. go along with the tax increase and we'll give you your wall.

he better stay off that slippery slope or he may be a one-term president. david: any time you hear the term "lock box," forget it. you know they will stick their greedy paws in there and pull out the cash and put in worthless ious. >> you can repair that statutorily if you have a desire to. i can write that statute so you can raid it all day long. but i can also write that statute so it works. >> i agree. i would be in favor of a raised gas tax if the money actually went to infrastructure. but these politicians are stealing the money to fund other projects. up to 40% of gas taxes at state levels is being used for something other than

infrastructure. if you give these guys a dollar they would take three. david: you would rather give your tax dollars to corrupt local politicians? a lot of these projects go on and on forever. there is all kinds of graft and all kind of stuff going on there that doesn't make these things effective. >> only if like rick said if you can put a statute in place so these guys can't steal the money. funny how you have a big dig in boston, you have got to deal with the mafia. >> the trouble of the lox box, one change of the law, one amendment, wide open. they have don't before and they will do it again. they can't help themselves. >> we heard in australia there

are transparent bidding policies. i don't see it worth raising taxes for until you address the policy. >> does fedex and ups have a problem with infrastructure. get the government out of the way and these things take care of themselves. >> isn't it amazing that you have to write something in place to tell people not to steal money? david: you are going to have at the very least, a lot of waste, if not actual graft and corruption. >> that fedex is doing fine in shipping freight won't be doing so great if one of their road trucks goes down when one of

those bridges collapse. david: thank you all for watching, our sympathies to the bush family. that was an extraordinary memorial we were able to bring to you. that does it for "bulls and bears." liz: wall street was down nearly 800 points, then down 80 point after the initial freakout over the arrest of the ccfo, of huawei *, a former military officer. wall streeters applauding president trump's tough line with china because china is stealing to make china great