>> i think he drank a 21 voted 18, that's ridiculous. voting at 16 is equally ridiculous. connell mcshane in for neil. >> look at the time. i thought! was afraid to fight back for a second. liz: i'm just laughing. >> welcome everybody to "cavuto: coast to coast." i'm connell mcshane today is really meant for neil. all the global growth concerned today with the company were talking about are certainly weigh in on talks today. european central bank to take action to prop up its economy which has been weakening and that is kind of entered the conversation here with the slowdown concerns we are ready had in the u.s. we are down 219 points first up today, where the economy is headed. what you think danielle, what

europe did? lowered forecast, we're in stimulus mode again. sign of time to come? what is your impression? >> with 80% of the global economy slowing at some point it will indeed visit our shores. market, was highly anticipating lot of actions european central bank took today. i'm not so sure we were surprised by the magnitude, decrease in their forecast for growth. they raised unemployment forecast more than in the history of the european central bank. i think markets taking this as more of a shock factor. we're seeing that play out in european bank stocks today. connell: we are. we had this discussion and debate for a while where the u.s. sits in all of this. best of the bunch, everybody is struggling. capital flow comes to us here in the united states. to the point you made earlier

everybody else is catching a cold, we're going to catch it. how do you balance those, how do you look at it for rest of this year, how it will play out? >> unfortunately i'm not trying to be debbie downer, we saw layoff data. february layoffs quit, shortest month of the year, biggest number of layoff announcements they had in over three years. so it is concerning to me. we're seeing layoffs happen in the industrial sector. we know from the ecb this morning to get back to the original question here, how the rest of the world could affect us, well the euro is weakening sub taxly. which means the dollar is going to be strengthening which we know, president trump will not like at all but it will put further pressure on the manufacturing sector, even as they're starting to implement layoffs. connell: right, let me drill down or try to on the point of layoffs a little bit if i can.

that has been the big story. our friend dan henninger writes about in the "wall street journal," an there is a lot of noise as dan writes out there, we could debate budget deficits, trade deficits and all kinds of economic factors, one thing we have going for us, he argues we still do, the job situation. people are hiring here in the u.s. as the argument goes they will continue to hire. if that is the case don't worry about the other factors, the economy is pretty strong but you're starting to see cracks in that, is that your point? >> i am. i certainly respect dan's work but yesterday in the adp report for example, we saw small business hiring contracted for first time in several years. that really concerns me because a huge engine of growth since trump took office has been small businesses increasing confidence among small business owners and hiring that they have done. if we're starting to see that pull back that is very

concerning to me. connell: it would be. question comes right in your wheelhouse, we talked about the ecb already, what does the federal reserve about all this, how does it interpret this, what is the next move for the fed, may be cut in interest rate, than increase in interest rate, maybe there is more to it than that in terms of strategy? >> it certainly is nuanced. we'll hear more from the federal reserve on march 20th, than what we would have heard had none of these events in europe transpired. so it is not just going to be a matter of reacting to the global downturn but also going to be what is going to happen here next. the new york federal reserve chairman janet yellen president john williams made a speech yesterday that really caught a lot of attention saying if conditions warrant it, they would consider negative interest rates. investors are saying wait a minute, wait a minute, we're talking about shrinking the balance sheet. talking about getting back to zero on interest rates. so the market is is rightly

pricing in rate cuts. connell: march 20th, calendarwise, week ahead of a u.s.-china trade deal announced or finalized. who knows how that will end up. >> that's right. connell: good to talk to you as always. president trump reportedly looking to make investors happy with the trait deal, but how focuses are voters on the markets? "real clear politics," tom bevan on that. i don't know how much truth is to the narrative reported that the president is looking to make a deal to boost a stock market kind of going sideways or a little bit lower now, but is it a good idea politically if that is what he is looking at? >> we always said that, you know, look, not necessarily a good idea for a president to tie the health of and his record to the actual dow because it will go up, it will go down day-to-day.

you live by that metric. you die by that metric. folks always told, trump supporters, look for trump to focus on underlying fundamentals of economy. you mentioned jobs. voters don't pay attention to the market per se. what they do pay attention to, they don't necessarily pay attention to the things like the trade deficit number, one of the things he came into office promising to rectify, but what they do pay attention to is what they're occurring at day-to-day lives and what they're seeing in the ground level in terms of rising wages and plentiful jobs. trump has to continue. when that stops, that slows down, those perceptions change, then i think it start to have negative political effects. he has highest job approval rating on economy since he took office. connell: people are working. whatever happens in the future we don't know. danielle says we get a slowdown in that front. but the idea people are working

making more money what they're doing, you're judging, that is pretty much how people judge, i guess a lot of the other tough doesn't matter. does that take pressure off the president to get a big deal with china we think we're going to get at the end of the month, take pressure off him? >> it takes a little bit of pressure off him. remember, one of the reasons, trump, cornerstone of his pitch to america, why he was elected for decades republican and democratic administrations were being ripped off by china. they were stupid. getting taken advantage of. he was going to change that. he can need a deal, look if it is not everything he wanted, even if it is not a fundamental shift in our relationship to china he needs something to say, something i promise i had said i would handle. i did. i have done the work for the american people. neil: if it doesn't fundamentally shift of the relationship with china will it be good enough for the people he promised that he would make that

move for? and you know the politics of it, but heading into 2020, if you're, if democrats or if you're president trump, do you have more risk in not getting a deal with china at all, or getting kind of a wrong deal, bad deal, that allows on democrats by the way traditionally going back in time would have more likely to agree with him on trade, rather than disagree, give them an opening to hammer him, say he wasn't tough enough on china, like sherrod brown from ohio, for example, somebody like that? >> that is a good point. trump has to have something he can present to voters. he has to also say look at my economic record. are you willing to vote for somebody else? again, remember, all these issues are should be filtered through the lens of seven states that matter. most of those are in the rust belt, the midwest and then north carolina florida, arizona. michigan, ohio, wisconsin,

pennsylvania. we should focus on those. connell: that is old george carlin routine. seven different words. tom bevin. thank you. we have facebook, very interesting story what facebook announced in terms of this pivot to privacy. but as we follow up on it today, think little more broadly about it, whether facebook is taking a page some ways out of china's book. at least from a chinese company. as we come up, uncertain markets down more than 200 points, tune in "after the bell," 4:00 p.m. eastern. melissa joins me. we'll break it down to see where we close. we'll be back here on "cavuto: coast to coast". termites, feasting on homes 24/7.

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connell: ceo mark zuckerberg is planning a pivot on user privacy t was announced yesterday. more encryption, messaging and the like. susan li is here on some of this. the idea, susan, that maybe, like they do in china, you could get everything on one app. that has been written about today since mark zuckerberg made announcement. >> "wall street journal," "axios" is talking about that. connell: kind of the new wii chat. >> new wii chat american companies, copping one instead of other way around. connell: that is the contention for years, all the chinese companies do is steal american ideas. now the idea, wii chat business model. >> we chat is owned by tencent. basically everybody is on it. you see it on the screen. it facebook of china as well as social media site. you can make payments on it. you can buy movie tickets. there are so many other chats

tied to we chat. tencent has a billion users. only 1.3 billion in china by the way. this app dominates every aspect of life. connell: doesn't matter necessarily, doesn't matter at all whoo type of phone you have which intrigues me about it. >> right. connell: iphone,. >> android. connell: chinese made phone, it is all about the app. >> it is all about the app. did you scratch your head from that post of mark zuckerberg, we're a social media company, no more private messaging in the future. is privacy part of public sharing social media app? i found that interesting. i think the reason why they even bought whatsapp, it was high price back then, $18 billion idea of copying we chat, it has been around almost 10 years or so? connell: the thing that really caught on, you know better, idea of mobile payments. we're caught up in encrypted messaging. in china everybody is paying. >> no one uses cash.

very rarely you pull out your wallet. connell: that hasn't caught on there. maybe facebook is -- >> credit cards didn't catch on in china. skipped over the generation, like 2 g in the u.s. china never had 2g. they moved on to 3g. that is advantage, though residents would like more conveniences early on in their lives. connell: facebook maybe goes that way. rumors on internet. >> i think they have to. connell: facebook going to mobile payments. cryptocurrency, work all this together. i don't know if it catches on but it is interesting idea. >> 90% of the facebook revenue comes from advertising right now. that is not necessarily diversified. when you're paying $18 billion to property like whatsapp, billion dollars for instagram, you have to start monetizing at some point. if people are concerned about privacy do they continue to use application as they once did.

as we see with users, the numbers are dwindling. facebook is the abouting smart. he is a businessman. they need to find way to make new money. connell: is there challenge making new money that way though, because, almost harder to monetize that in some ways if you're focused on privacy so much, you can't necessarily target people easily theoretically with targeted advertising, right? >> i think model is not necessarily transferable to the u.s. as it is in china. look in china, do you have the privacy demands that you have here in the u.s.? no. in fact it is surveillance state. as we all know. it is very hard to be, i guess we chat here in the u.s. when it is a different government system and people have different expectations how well-protected their data is. connell: it is interesting, worth talking about. thanks. you know a lot about it. thanks for coming in. susan li with us. as we talk about privacy and facebook it is not only concern about big tech companies. in fact social media generally is accused over and over again

being biased, being biased against conservative voices. recently on joe rogan's popular podcast, a journalist named tim pooln, talking to ceo jack dorsey about it. got a lot of attention. twitter's chief executive officer was in on the conversation. we have a short clip about those concerns. here it is. >> you literally see legitimate high-profile individuals getting suspensions joining on a joke. >> there are for sure there are mistakes. i don't think any of us claim we got this 100% right. >> our team not having 100% context what is happening as well. we would fully admit we were way too aggressive when we saw this as well and made mistakes. connell: attorney, rnc committee woman hahm meet dillon joins us from san francisco. you've been talking about this forever. it looks like, that is kind of

admin mission from jack dorsey. rogan had a lot of criminal system not going hard enough on him. they redid the broadcast, where jack dorsey said we could have done this better what do you make of it. >> i think this is fake what i heard. i personally written to the general counsel, informed her of suspensions inappropriate under their rules of a client of mine on two occasions. i never got a response. you know, they're full hi aware of this happening. i know it from my personal experience. this is disappointing to see business leaders lie like that. they're aware of the issue. connell: what do you think should happen? when you start putting subjective, subjective kind of opinions into the mix here what is banned, what is allowed, that is where the gray area starts to come up. then you get, you open yourself up essentially to accusations of bias. one of the things came up in the podcast. if you're twitter, other companies as we, we're saying all about free speech, why not

follow just u.s. law? this is guy tim pool brought up, not make your own rules? that something you would think make more sense? >> i think they are going to be forced to do that. you had a segment about facebook pivoting doing something different because they anticipate more regulation. connell: right. >> all these companies enjoy immunity from suit which is premised on them being a neutral platform, not censoring yet they're all getting in there, censoring claim for user experience and then protect people on the internet but, for an example, facebook five years ago would take off a post if it was personally harassing or threatening an individual. today twitter and facebook and google will ban speech if it offends or may offend an entire category of people. that is censorship. that is china-style censorship. it does not belong in america. these companies need to choose. if they want immunity from suit they need to be neutral. if they want to be publishers,

they should be treated as publishers like fox, "new york times" and others. >> right. >> if they engage in manipulation, lie, false, censor don't honor terms of service which these companies are not doing they should be held liable for that. connell: they will say, hey, we'll promote privacy. we'll promote things like encryption on our messaging, instead of being open forum or more closed forum you think that the is strategy here to avoid the regulation? >> i mean it sounds good but honestly are you going to truth facebook or twitter with your money when you can't trust them with your privacy? i am not. that is big stretch. connell: that is the challenge. >> you're absolutely correct in your prior segment in some cultures people are habituated with having no privacy, that is not america. i don't want it to be america. we need to find a different way than what is being proposed. connell: that is really good

point. that is the difference between we chat and maybe what facebook is trying to do here. harmeet dillon thanks for coming on. >> my pleasure. connell: warning to democrats about handing election to president trump. what howard schultz is saying about the direction of the party. new comments from former starbucks ceo. 10-year treasury yield hit one-year low. growth worries around europe and around the world seem to be front and center. we'll continue. if ywhen you brush or floss, you don't have to choose between healthy gums and strong teeth. complete protection from parodontax has 8 designed benefits for healthy gums and strong teeth. complete protection from parodontax.

connell: let's get to venezuela where an american journalist has been released after being detained by officials there. the plan is to have him being deported where he was reporting as freelance journalist for some time. retired army colonel allen west

joining us now. this is the not first that a reporter has been detained by authorities. your take on it? >> my take on it there is iranian influence in venezuela goes back too hugo chavez and mahmoud ahmadinejad. we saw what iran did back in 1979, with the hostages they took under our embassy with jimmy carter. maduro understands there is little bit of a different president. he doesn't want to go down that path. this would definitely force his hand as far as potential military intervention. the sanctions are appropriate but we also need to look at options we have with our allies and people that we're working with down in south america. connell: the other thing is, the best idea we could possibly have, thanks to reporters like, like this guy, reporters at fox, and other areas, other outlets

have been able to get in venezuela to report from inside out, i guess if you're thinking trying to get inside of maduro's head, if you're maduro, he didn't harm this guy, the univision reporter, if you take reporters off the streets for a while, other people, we're talking other people see that. does that have an effect how this is covered now? i'm sure that is his goal, reluctance of others to take that risk? >> i'm sure this is about threat, intimidation, coercion and violence if it needs to be. that is one of the things about the green movement in iran. we had people getting pictures out to us, we saw what was going on there. nicolas maduro wants to control the message, control the propaganda, control reports going out. that is the best way he can try to keep his people in the dark and rest of us outside of venezuela. >> so far seems he failed in that attempt.

timetablewise, is it surprising he has been able to hang on for so long? what do you expect? >> no it is not surprising. one of the things he still has senior generals loyal to him. but as resources start to dry out, he is not able to pay people, and keep those cronies in place, you will see more people peeling off and that is where that intervention with the cubans and also the iranians into play because they close circles around hip. connell: patience, you say, just a matter of time, right? >> i'm not agreeing with former strategic patience philosophy. connell: right. >> i think it is appropriate to put the pressure on there so you push up his timeline. >> i see what you're saying. that is key distinction. colonel west, thanks for coming on. allen west. >> always a pleasure. connell: meantime let's go to the other story here about the democrats who appear as a party to be divided on a few issues. we talk a lot about this battle to see how far left can you go, particularly with regards to

2020? former starbucks ceo, presidential candidate, howard schultz, talks about how the democrats could talk about handing president trump re-election win. take a listen. >> if the democrats decide in their wisdom to nominate a far-left person who is professing policies that resemble that of a socialist, that will be the spoiler, and in my view, donald trump will get reelected. and so the spoiler will be that, not me. connell: wow, okay, former democratic strategist marjorie clifton, fox news political analyst gianna caldwell join us. march sworery, go to you first, talking markets he is talking his own book there. the accusation, hey, howard you will spoil things for us, democrats talking. if you get in it will make sure president trump gets reelected. what do you make of him trying

to flip that argument as he did there? >> i think he has an interesting point because republicans saw this with the rise of the tea party, all of sudden a divide within the party. i think democrats are sort of on the verge of a challenge where they have a moderate group, and you have a much more progressive group. things that folks are talking about with the green deal, medicaid for all, those things resonate with a lot of populations because they're getting at the heart of the issue they care about but there is a way to talk about those things in a way that also leans on practicality, leans on budgets. in a time where we're fiscally very strapped, we have an incredible deficit is that is hard thing for a lot of moderates to hear. i think the thing he is saying actually makes a lot of sense. airing that on social media, airing that in the public i don't think is a great strategy. i think democrats need to sit down behind closed doors and find unity about values they care about. connell: it will be hard to do that, because some of them want to be the race.

there is this race to the left. think about potential moderates running on democrat side, howard schultz would be another one. says no i can't do it. mike bloomberg, more money than god, i can't do it. essentially i can't win in the primary. as if our conversation i think right now, we don't know whether the former vice president joe biden will get in either. so kind of an interesting dynamic. what do you think? >> yeah. howard schultz is common sense guy. he should be a republican to be honest with you with some of things he says, certainly not all but some. the consideration not just pro-left, heart -- hard left people in the democratic party. they have taken over the party. when we look at the news, aoc or something bernie sanders said, this regards to socialism you know the democratic party is fully completely taken over. what is problematic for

democratic party, only 18% of americans view socialism postively. we know that the rest of america is right in the middle. they're more so independent. democrats have a real big problem on their hands. they are not going to be able to win any presidential election especially when you have the hard left antics of the green new deal which is going to cost families $600,000 per family. that is insane. connell: go ahead, marjorie. >> well i would just be careful to label anyone type as any one party. in same way a lot of republicans who don't want to carry donald trump as their label, there is a lot of people who don't want to carry aoc in the democratic party. connell: they don't seem loud enough. >> those are not vocal individuals. not vocal democrats. >> you're very right. absolutely. >> look how many people supported the green new deal if how many members of supported green new deal who are traditional democrats. may not be you, march sworery, but not rest of the elected

officials. connell: to gianna's point, they come on say exactly that. surprisingly so to a lot of people you have presidential candidates jumping on board with something they know in their mind will never actually happen but they feel a need, a political need to support it. go ahead. >> you know why? because it is easy. that is an easy bite-sized thing to talk about it. connell: won't it come back to bite them, won't it bite them politically? >> i do. it will take a candidate who can walk into the discussions, talk about things in terms that are not black and white. that is by the way on both sides of the aisle. i think people want to hear from someone who can bring people together. that is a hard thing in these times. it means talking about things differently. removing a lot of labels. >> marjorie is right, especially when she says, you're right you say it is a bite-sized thing. it is easy for people to grasp. that is why democrats shouldn't be taken seriously or have

control of the house, want to go easy, whatever we do to win votes, like hillary clinton did in 2016, versus table issues families actually care about. connell: something by the way the vice president, former vice president joe biden would say is his political calling card. that is his specialty. just find it intriguing. we will talk about this later. very well may get n he probably will. it is interesting he hasn't yet in this particular race with these particular candidates in the dynamic we're talking about about. >> i think there is a lot of thought going into running. this is something he considered for a long time. i think candidates who are betting in are ones feel like there is place, there is a way they can make a difference but that is not an easy thing to do with very complicated dynamic and very complicated country and i do believe we benefit from having a two-party system involved in congress. i don't think congress is better to have one party dominate everything. that is what we need, a candidate who can bring people

together. connell: always good to see you. good talk. as we continue here, we'll get to the huawei story. this chinese company trying to strike back against the u.s. so should investors be nervous what it all means for the china trade deal? this new lawsuit they're talking about. there is trade and growth sensitive stocks have been a drag on the market. we're down a little under 200 points. dow, boeing, 3m, goldman sachs, caterpillar, they are all down the we'll be right back. this is loma linda,

a place with one of the highest life expectancies in the country. you see so many people walking around here in their hundreds. so how do you stay financially well for all those extra years? well, you have to start planning as early as possible. we all need to plan, for 18 years or more, of retirement. i don't have a whole lot saved up, but i'm working on it now. i will do whatever i need to do. plan your financial life with prudential. bring your challenges. connell: going to a business alert on the china trade negotiations. there is a story just coming across on "the new york times," from "the new york times" reporting that officials in beijing are now supposedly a little bit wary that the final terms of a deal with the united states may be less favorable to them. so we'll look at this throughout the day and you know, see if anything comes out of the

white house on it in terms of impact on the markets. we were 200 plus points lower on dow. now we're down 179. we'll watch this as we watch all things china. speaking of which, huawei suing the united states on a government ban on its products. we'll bring in charlie gasparino is reported on a i will say directly related story in the fight for 5g and faster mobile internet. >> that is what this is all about. the u.s. basically put them in the penalty box. they're coming back saying they're being unfairly targeted. either way you cut it u.s. policymakers both in national security and economic policy, consider huawei a threat, a national security threat. what are they doing about this? obviously targeting them, sanctions, whatever. what we understand, the white house itself. national security policymakers and economic policymakers, people like wilbur ross, people like larry kudlow, are pushing

for the approval of the sprint-t-mobile deal. now normally if this deal would come together you would say, wow, this raises massive antitrust concerns. if those two were allowed to merge, basically go from four to three major wireless carriers, right? connell: yes. >> you know, that they will control 95% of, three would control 95% of the market. connell: would be u.s. companies to match huawei. >> let me point this out. the doj antitrust would say this is a horizontal merger. basically layering on top of the same companies. it rings all sorts of bells, whistles, very hard to get through. the reason why people think this has a shot, 50/50 shot, because you have to worry about the clayton act which governs antitrust issues. policymakers say we need this deal, we need a strong t-mobile, stronger sprint, lesser layers in the wireless category to

compete with huawei developing 5g, which is mother load to the u.s. economy. it will add hundreds of billions of dollars to the u.s. economy. it will prevent the chinese from hacking in. if we control it, better than they control. connell: they could, as they have already done the u.s., government, what the huawei lawsuit is all about, they could say, huawei, you're not allowed here. >> more than just them not being allowed here. that we want very strong u.s. companies competing for the 5g. so the policymakers, why it directly, huawei is the reason why larry kudlow and wilbur ross and the national security people are pushing for this deal to go through. who runs antitrust and ajit pai, who runs fcc, it is horizontal deal. you dent want to open up to lawsuits, because the chate ton act basically has a lot of rules in there. my point under normal

circumstances you can kiss this deal almost good bye or a medical conditions. connell: less likely. >> now with this huawei thing cooking a lot of people think it is going to get through, there will be a lot of eyes on it but there is betting. by the way if you're playing the stocks if this goes through, when we reported this yesterday, the stocks of both companies spiked, so you know. there is a lot of traders trying to bet will doj acquiesce to the policymakers in the administration? connell: i got couple things. we have to take a break in a second. i mentioned china and trade deal. other thing that came out from reuters, i believe "the times," officials in china apparently what they're leery of, they don't want to commit, surprise, surprise, to china making structural changes in the economy. maybe this is not as done deal as we thought. second thing, politics, i just brought up his name, sherrod brown, senator from ohio will not run. >> we broke this yesterday. "the times" follow us today.

joe biden is 99%. connell: we were talking about. >> i heard you. connell: not 100%. >> but never 100%. here is why he is not announcing now i'm told. he gets no benefit. has 100% name recognition. likely to announce in april or by april. he wants the field out there to essentially kill each other. connell: makes sense. >> his calculus going in, he can get 20% of the vote. the rest of them split the 80. neil: what do you make he have sherrod brown? heartland, trade? >> listen this is what i told you, they are signaling joe, go, joe. that is why bloomberg didn't go. sherrod brown, they're opening moderate to centrist, center left-wing of the democratic party is open to joe biden. everybody is saying it. i can't imagine he doesn't go. he may wake up tomorrow, hey, i'm 76. i will be 77. why do i want to put my family through this?

i could always see that happening. based on what he is telling people, i spoke to a lot of people close to him he is telling them he is going. connell: he is boeing. >> i never say definite. connell: i have to go. good reporting on all those topics. we'll be right back after a quick break. we'll talk about the tax refunds again. apparently they're ticking back up? after months of wearing only a tiger costume, we're finally going on the trip i've been promising.

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let's talk taxes here. national taxpayer advocate nina olsen testifying on capitol hill, worries about refunds. edward lawrence joins us. what is the latest? >> she looked big picture, basically the irs is woefully stretched thin in order to be able to handle all the questions that taxpayers have. that is the conclusion of the national taxpayer advocate nina olsen. she testified before the house oversight subcommittee that the tax reform actually created complexity in the tax code. she says 68% of americans can actually not use that 1040 postcard and claims that the new forms add to complexity because it adds preparation to tax time, there is more paperwork to be

done. she also testified that one of the biggest problems for the irs is hacking with what she calls hackers trying to get the mother load of data on people that the irs collects. >> they're getting information not from the irs. they're getting it from other entities. hacking into other entities. getting companies, phishing companies to get full w-2 data sets. once somebody has that it becomes very difficult for the irs to tell whether you are the legitimate person or not the legitimate person because the thief looks identical. reporter: olson says this year tax pay remembers getting frustrated. only 1% of cause for assistance are actually answered by the irs. there has been a 200% jump in the number of errors on tax forms this year. now the irs responded saying, as they continue to try to improve on what they're doing, they said, quote, it is also important that we work to provide appropriate resources to

our employees so that they can continue to provide the best possible service to taxpayers, on going problem with the irs. back to you, connell. connell: edward lawrence on capitol hill for us today. adding to that, goldman sachs out with new numbers saying tax refunds are indeed coming in roughly the same as last year. we have all kinds of studies as we watch data come in, sometimes they're up, sometimes down. goldman says about the same. national taxpayers union mattie duppler is with us. start with the simple part, mattie, how americans are being treated or treat the tax refunds that people need to rethink that? >> at beginning of tax season we heard a lot about democrats about tax refunds down early in the season, a lot of democrats were saying that your tax liability was lower. your tax refund has nothing to do with the tax liability. we know 90% of middle class taxpayers got a tax cut as a result of tax cut and jobs act.

those people are better off all year long. the fact their refund may have been lower especially at beginning of tax season, result not giving interest-free loan to the government for entire year. in fact that is lot better situation to be in. i would rather have the average american have the money in the pocket than the government confiscate it for better part of the year. connell: say not sophisticated investor, makes at argument, logical argument, say to themselves, you know what, i will give it as you say, interest-free loan to the government. let them hang on to my money, because if they don't, you know, i will just spend it. people think this way all the time. >> that is true. connell: if government holds on it, i will get it back, pay down the credit cards, go on a trip, whatever the case may be. what do you think about people making that argument? >> there is better savings

places to use. even .1 of a percentage point, that would be better than zero interest the government is giving you. we need a conversation about financial literacy. have americans save pennies more rather than relying on government to take that for the better part of a year. connell: one group is aing it is up. one group says it is down. now goldman says it is the same. maybe people rethink whether it's a good idea to strategize for a tax refund. hear people like you. >> you heard a lot about republicans of tax reform 2.0. after it was passed in that package savings vehicles would have opened up even more opportunities for americans to hold on to pretax dollars, create opportunities, relying on the government taking their money better part of the year. i certainly hope more opportunities on horizon for americans to do that. connell: whether people should do it or not, if they are doing

it, we'll see how numbers work out, if they don't get a big of a refund, could have impact on growth say. >> something to look out with the numbers. treasury reports numbers every week, telling us how the tax filing season is progressing. tax filing season was slowed down because of the shutdown. we're two million returns shorter now than this time last year. as a result of that a lot of refunds go out the door were delayed. the irs is not allowed to release the bulk of refunds until february 15th. why you didn't see a lot of the numbers start to improve to get back on pace with refunds from last year until last week, when people started seeing money in their bank account. connell: speed stuff as always -- good stuff as always, mattie. markets off the lows. we'll talk about the news when we return.

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connell: back at it here on "cavuto: coast to coast" paradigm connell mcshane ceiling in borneo.

our number two of the show. the talk about the market for a moment. pausing for the best start since 1987 north side selloff of 200 points earlier in today's session down 127 on the dow. it seemed like european central bank/in its forecast announcing stimulus measures. now see in a global slowdown softer spending the leave aside in the united states to reconsider their rate hike past or it's all about to the backdrop a lot with china trade is to bring in a couple market watchers to talk about it. ben phillips and catherine were to very join us today. good to see you both. let's start with you. i think it's interesting what's been reported by the times i'm not in what would may be hurt talks a little bit more. on europe, the idea here is the europeans really cut their forecast on their back in the stimulus mode with her central bank. it seemed to worry investors a

little bit. what you make of what you saw and what does it mean for us? >> the market reaction was because of the more pessimistic outlook at the ecb with their statement. with the market said his europe is actually slowing down and requires this new stimulus effort, which is what we expected. and maybe things are as bad as they seem three months ago. here is the fact. if europe doesn't restructure its reform from a more monetary stimulus is not going to cut it. they did labor reform, they need to cut regulations and that the government off the backs of small business and they need to either integrator split. i don't like europe as an investment. connell: makes sense. the question then becomes is that all about then and it may very well be his heir issue europe or is there something to the idea that once they've caught this cold eventually it

comes our way. do we stand alone as the best of the bunch or do we catch the cold. what's your take on that debate this developing? >> from an economic standpoint, the world is certainly more interconnect now than it really ever has been and that's not changing. if there's a slowdown occurring in europe or other countries or regions around the world that does have an impact on the u.s. a large part of companies in the united states our exports are doing business internationally. it certainly impacts. connell: how does that change how you invest or does it? >> a question could exactly where is going with it. the capital flows to where you can earn the best return and put it to the most productive uses in right now that's the u.s. u.s. is the place for investors to find the best returns we think going forward and so that's where we would be with u.s. equities versus european. connell: does that make sense to you? >> i take that other side about

the u.s. economy is domestically driven. while if europe grows your .5% from 020%, and granted it affects the global economic growth but it's not going to take points off of the u.s. connell: it's almost like the same -- it's a diversion. so the u.s. is going in a far more rapid rate in europe even if europe decelerates ripple disproportionally outperform europe. europe goes one, 135% come even 20%. u.s. is growing a significant amount at a significant pace beyond what europe or japan are actually doing. i like emerging market filing suit to the united case we can get more bang for your buck. connell: you like the same thing for different reasons. different types of stocks, more domestic. what is interesting and i was

thinking about it when catherine was talking their and almost lays into what everybody put a big headline on the trade deficit number yesterday and if you think about it that is what is going on there, too. the trade deficit comes down well at the end of the day the reason it's not as her importing more than their exporting and consumers spend and were in better shape than the rest of the world. so what does that mean to you i guess is the question. >> i think that's right here and we're u.s. focused investors so that's where we spent most of our time and where we are finding them are places like health care. health care has been underperforming and it's an opportunity i do something defensive and on some structural till wednesday or from a policy standpoint. we like infrastructure. the states are taking it into their own hands this year. 24 states increased tax taxes -- gas taxes since 2012. it is somewhat related but has its own drivers and fcc

deregulated spectrum there. they're serious to invest that we think our long-term areas with the money. connell: makes sense. we're going to talk about china little later with reports the chinese are getting a little bit worried about what his final trade deal will look like. we appreciated then, catherine could the dow down 134. we've talked a little bit about trade and deficits in the fact they are both rising we do have fears of an economic slowdown that could be coming over there. stocks for the year still relatively strong. nasdaq 1225%. so with that as their backdrop, let's bring karl rove in common in e-mail, and kind of a two-part conversation. i want to talk about your column in the journal. as a sidenote, thursdays are a favorite. we always love dance columns.

>> i always love the hettinger cowan. >> from the president's point of view, things are good on the jobs front. just forget about everything else did the least that's what i took away from the column. a lot of noise these trade budgets and deficits in all the others. if you have job zero k. politically. >> i think that's a strong argument and it's in the polls. take a look at the gala. the gallup overall approval of the president of the president is for preapproved approved, 54 disapprove but on the economy it is 5643 and unemployment 54 proof, 42 disapprove. the president has several strengths here on the economy and that's going to matter a great deal in 2020, particularly if his opponent is seen as somebody who advocates an entirely different direction for the country and not as productive as the american economy and the american worker. >> it plays a little bit into what you are writing about this

morning of the democratic primary from, but the idea is to get everybody and their brothers to basically run for president on the democratic side. it makes it all the more challenging. today since the column came out we have the news last hour, sherrod brown is not running so he's not getting in. we're not 100% sure what joe biden is doing. take it in terms of who will oppose the president is taking shape. >> i wrote today about the rule changes in state changes. one is the democrats are going to dinner debates earlier. republicans begin in august. that is going to make the process even uglier because you have a lot of people appear 14 candidates now. i suspect this team, 16, 17, 18 candidates and they're going to want to break out. someone wants to do so by attacking other democrats are

going over the president are throwing out some red meat for the party's hard left base. that's all going to complicate rings. second of all their frontloading the primaries. in the first 29 days of the democratic and republican primaries in 2016, democrats elected less than a quarter of their delicates. because california north carolina are joining the early bunch of primaries, at least 42% of the delicates out of colorado and georgia have early primaries that they had four years ago appeared nearly half the delegates will be chosen in the first 30 days and that could be -- you matched up with the proportional rules of democrats. you could have been so fractured with so elected that it almost mathematically impossible for somebody to get 50% on the first outlet. what brings in the final change which is the superdelegate, they can vote on the first ballet,

but they can vote on the second ballot if nobody has the majority. 755 automatic delegates screaming onto the battlefield on the second will be a hacker theater. connell: maybe we'll have more this time around. i guess maybe one of the questions you raise a the environment, how do you stand out? it seems now it's rushed to the left. i want your quick reaction on whether maybe being a moderate is the way to stand out as a way for former vice president biden's decision. doug schoen was on yesterday when david asked and was posting his doing polling for mike bloomberg is not running as the so-called moderate and he was asked whether jamaica 2020 endorsement. here is what doug said. >> you know whether or not he's going to throw support behind biden. >> having spoken to him at this point he really is going to do what he said. he's not a man of guile or

political games. he said his focus was on issues. he's going to stick on with that and i have no sense that he's going to make an endorsement anytime soon. connell: ban on gun control and other issues which is interesting because the thinking in some people's minds was sharad around getting out, bloomberg not running, the first moderately and if it's fair, maybe amy klobuchar said it but they're for the taking for the former vice president. >> i think it is and i think he'll bring two advantages to them. one is a strong relationship with organized labor. he'll be endorsed by some of the unions including the firefighters if he gets in the race early. secondly he's the best-known of the democratic candidates. he'll start out with the lead pair greasing it in in all the polls now it will grow little bit when he gets into the race. how much can he hold onto that will depend upon his messaging. but you're right if you have kamala harris, corey booker,

robert francis, beto o'rourke, all these candidates flocking to the left, then there are going to be some democrat centerleft, but not that far left who will say joe biden is the more typical democrat. connell: he's right about timing. charlie gasparino brought that up that maybe the strategy is let them kill each other for a little while and i won't officially given and it's got the name recognition than he could join whenever he wants where do you see as a deadline coming soon he has to get in pretty quick. >> the deadline is june and it's got to get in before june and it got to some strength before that. on the other hand i think he's smart to hang back. he's clearly working behind the scenes, democrats talking about how to get calls from him or his people. he wants to come out with a strong sense that he's got support among labor and they are going to be with him and again when you have a fractured field that's a good way to start.

now you can't win by simply being that person. at the end of the day you have to find a way to grab some of these delegates whose candidates fall by the wayside. he doesn't need to be in the race today. probably doesn't need to be in the race until early april at the latest. connell: makes sense. carl, good to see you, karl rove. facebook is getting all the headlines is it really just about keeping users happy. is it about avoiding regulation? facebook stockton one to 5%. don't miss "after the bell" today promotes will join me for pm eastern time. we were down 200 plus and now the dow was off by 133. we will be right back. i can't tell you who i am or what i witnessed,

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welcome back to cavuto coast to

coast paradigm gerri willis on the floor of the new york stock exchange. a tough day in the market get a little improved it down anyway with the worst performing dow of the day. no headlines on this company today, but traders say trade dependent stocks have been essentially hard hit after the ecb european central bank unveiled plans to deploy additional economic stimulus. 3m replies on europe for a fifth of its revenues. ecb would move interest rates unchanged until with these end-of-the-year bank loans to move the health of the global economy and concerns for international companies doing business in those markets. other trade giants affected here. caterpillar, dupont also traded lower as you can see. huwei down again for imports biggest five-day selloff in nearly five years.

traders also citing pressure at the s&p 500 fell below its moving averages. on top of that right now they spoke shifting its focus to user privacy. >> gerri willis on the floor of the new york stock exchange. it was interesting the announcement they made yesterday with the motivation might be too going towards encryption, more privacy. dennis cartman joins us on this and also talk about the market more broadly. somebody brought this up earlier. just kind of a play by facebook save wear on top of things and regulators stay away from us. >> i think that's precisely what it is. any sort of legislation coming down the pike to inhibit them. i think it's a way to differentiate themselves from the damaging effects that elon musk has had on his own company. it's a way to get ahead of

legislation that clearly is in the pipeline. i think it's a good idea on their part to try to do that. i'm a little bemused as to what affected shall have been what effect it will have on their advertising revenue stream. let's give them credit. this is a wise move on their part to get ahead of the legislative problems that could mean comment. >> theoretically the more -- the harder it is to target the oil. you talk about it all the time publicly or not the biggest tech guy. you're not investing in companies to begin with. in terms of providing analysis of the comment they even have a name for it. that clash. the idea the government is coming after these guys. what is it due to the facebook, apple, amazon of the world in terms of their investment outlook for you? >> on all, it certainly doesn't entice me to want to be invested in them. i have difficulty to begin with with high-tech right off the

bat. but i have to admit, and even with all of the illness that has come out, facebook has done extraordinarily well in the last two months. if you made me take a position i'd be a buyer rather than a seller. just looking at the chart if i had to do something a facebook i'd rather be a buyer than a seller. a seller in the past two months has not felt good. connell: i said i wanted to talk about the market more broadly. because of what happened in europe with ecb are guests were talking about the fact that they are back in stimulus mode. their economy is slowing more than people thought is our market and economy the best of the bunch the way investors look at it as a place the capital will continue to flow to her as a global slowdown that eventually infects us, too? where do you stand on that mission marks a mac mini is to go someplace in clearly is treated better here than in

europe. we've heard the metaphor the claim assured in the dirty.job laundry whatever way you want to look at it. we are going to do better than europe has been doing. we will do better than europe does in the future unless one of your previous guest made and i thought it was a brilliant idea europe needs not fiscal stimulus. not monetary stimulus. what they needed deregulation. they need to get smaller, not larger as far as government is concerned. less regulated as far as government is concerned. i don't see that happening any time in my life. it's just not their mindset. they are centrists. for lack of a better term they've always been that way and they shall always be that way. that is the real driving motivation behind brexit. england is demonstrably less european than europe is and that's why they want to believe. connell: interesting as always. good to see you, sir. >> good to be seen.

tanks. trade to three bills to help the skyrocketing student debt. some people are asking questions about it like if the students are paying, who is? one point for $6 trillion. we'll be right back. this this is your invitation to be our guest.

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connell: democrats entered a new plan. the idea is to help with college debt. investment banker says the best way for that interested in is to get the government out of the way in the education business. isn't that right? she joins us now. >> yes, good to see you as always. that's absolutely case. becoming the home of expensive free stuff. we know that the government being involved in backing student loans has increased demand and has driven the cost of college through the roof peers so much so that many of the education never sort of return their value in terms of

jobs. we need to get them out of the way. we need for colleges to have skin in the game. when he first advanced to have skin in the game and we need for lenders to make decisions in ways that they make all other kinds of loan decisions. what is the credit worthiness of the applicant? are you in a student versus the student? are you studying engineering for you studying gender studies. there should be lower rates and more money available. >> by the way, the cosponsors that they are many democrats in 2020 and they are jumping onto the same the best thing you can do is get rid of everybody said. no matter how much they take on. if your college kitty state grade i don't have to pay any of this back. >> it does. everybody likes free stuff until you realize who needs to pay for

it. unfortunately that has been particularly the far left mantra. they want to offer everything quote, unquote for free but we know taxpayers are paying for it. if there is no transparency in the responsibility in no skin in the game menu increased demand by making more available to people who may be would've gone in a different direction, gone into a trade. he makes these more expensive. basic supply and demand. connell: the ivanka trump initiative and the president was there, tim cook and all the rest, or 10 apple and everyone is singing. one of the debates they are starting his two years versus four years in terms of college education which makes more sense for the individual. you think that's a big part in terms of how much debt you take on, more sensible in terms of personal responsibility to not go to these pricey for your schools is that his quote, unquote not for you.

>> 100%. it all depends on your personal goals and object is then return on investment. my own father didn't graduate from college. he was an electrician but he was very financially savvy and he made me commit that if you pick a major you have to build a payback. i took him $40,000 of college debt that i paid it back in a year and a half because that was my promise to my father. people need to make those roi calculations. they should have disclosure from the lenders and colleges. what is the median amount you might make with this particular degree so people can make smarter choices. >> what is my return on investment in whatever reason people don't look at it that way. good to talk to you as always. all of this is coming as a debt ceiling fight is just around the corner. howard schultz talking to fox news correspondent gillian turner thinking that the united states has a spending problem and it's not just the democrats or fall. your use.

>> sitting with a $22 trillion national debt with over $500 billion in interest expense. this president, president trump is adding a trillion dollars a year. i've been speaking about this for years. republicans every single day were banking on him to reduce the debt and deficit. now two years then, president trump makes it even worse. where are the republicans? not one of them talking about the national debt. trade to growth david mcintosh joins us now. we talked to you about these issues all the time and i get mr. schultz does have a point that we always point the blame or point the finger of both parties should maybe sharon is a little better. >> i think he does have a point. president trump is actually tried to push the republican party into spending less and he didn't want to deal with one of those monstrosity bills that comes at the end of the cycle with all this spending.

or frankly republicans come appropriators in the senate and the house kept spending. >> he's been the guy in the past that something great with debt and that kind of thing. you wonder how much -- if this is really a priority for the president. you think it is? >> i think it's becoming one. more and more republicans realizing this is a major threat to our economic prosperity and frankly a national security threat in the future if we don't get our house in order. and on top of that coming you see these new progressive democrat coming up with even more wild pending plans like the debt repayment when you were just talking about where we're going to make medicare for all to pay for all of the health care free college tuition. it is almost like a shopaholic who goes on and gets five more credit cards than just runs them through the roof. we can't sustain that and the people who pay for it are middle

american average families who are trying to make an meat and they're going to be asked to pay more and more to the government for all its spending. it's not fair. connell: to your point there has actually been a real debate happening. in the past this was blown off as being on the fringe but it's not anymore about whether this all matters. mmt, modern monetary theory. people have said that coming you know, we have our own currency. if it's an issue they can essentially print more money than the debt and deficits are not as much of an issue as people like you have been telling us for years. but the real debate happening. >> i basically say to them, you can pretend that you can control the world, but the market place will discipline you when you spend more and borrow more than the economy can sustain. it's been going on forever. we showed it under past

presidency goes up, up all the time. we've had some issues, and maybe in the 90s where we had to get where we chose to get bending under control. for the most part we really haven't dealt with it in the argument goes we haven't really had a huge issue. what do you think? >> i tell you any economy that does this eventually implodes in a matter how big you are. there's a lot of rivals out there. china, other countries are nipping at our heels and if we don't get our house in order on a path with real fiscal discipline, they're going to have to overtake us and at that point we can just keep firing because they'll replace us as the reserve currency. connell: it will be too late. >> there's a controversy with the green agenda we can have an economic armageddon. in fact, we put out a website. economic armageddon.com for details if you go down this path of enormous spending will triple

our economy, but millions of people at a job, bankrupt the middle part of the country. trinket will start to happen? how would it start and what's your theory on that? >> great question. the key is to point out as interest rates will start to rise as inflation increases and once that happens, that eats up more and more about federal budget. then you have pressure on even social security and medicare, how do we pay for those. that starts creating social unrest. you see the economy starting slowdowns that more people are put out of jobs sue government gets less income. it becomes a negative spiral that can send an economy as it did in the history in argentina, more recently in greece and italy into a tailspin that's very hard to get out of. connell: if you're right about that, those types of voices if

europe had. good to talk to as always. thanks for coming on. connell: huawei filing this lawsuit against the 90s tapes, the chinese company. could this put a china trade deal in any jeopardy? that is next.

connell: how about huawei from a chinese company suing the united states, suing the u.s. government. will this complicate trade talks with the chinese? blake burman with all of that. hey, blake. reporter: when you look at the 54 page lawsuit filed yesterday, and not once did it ever mention trade. instead, huawei is saying that the u.s. government has broken a few different constitutional rights, especially the right to due process because dating back to the national defense authorization act was signed

last year, which ban the federal government from buying huawei products. this is part of the complaint. it says at one point in short section 889 blacklist huawei and by significant sectors of the telecommunications market all without giving huawei a fair hearing at which it could be informed up and confront the accusations made against it. i want to take you back all the way to february 2018. that's in the intelligence chief including the head of the fbi and the national intelligence director and now secretary of state mike pompeo testified that u.s. citizens should not use products from the telecom giant huawei in cte. senator tom cotten led the line of questioning and he fired off this threat today now suing over my amendment to lester's defense bill to keep them out of the u.s. market.

more to come. mark your ruby is also one of those two is a long essay minds thinking of cotton as it relates to potential national security and he said bring it on. he's happy he was filed because it then allows for disclosure to sort of look into documents in prod certain issues. so far no response from the department of justice, the white house deferring to doj makes sense considering that it's some 50 pages that were filed. the department of justice is now revealing the lawsuit. connell: they tried to keep these issues separate whether or not china feels the same way. before i let you go, this very came across on "the new york times" through their website that apparently beijing is getting a little bit worried about what a final china-u.s. trade deal might look like.

now when i saw that, there is a market that could sell off. we are down 200 or so but it's off the lows. what are you hearing about how to deal might come together? >> china worried about certain things i don't think is a major newsflash. the negotiations are ongoing. they still have a ways to run. remember, nothing will happen until president trump and president xi jinping a china sit down face-to-face insert of hash out a deal. might there be some concerns? sure. but that's been the case in with the negotiation is all about. >> they don't even have a summit technically set up yet. >> correct. i was speaking to a senior white house official center for team minutes ago that the u.s. has identified a body potential summit. no i was not told of the exact date, but at least the u.s. has identified a possible date. my colleague edward moran that

it's been reported for little while the chinese have blocked of march 22 march 29th. there not been a call for 10 days. over here at the white house they have the dates. whether or not it gets to that date is still tbd because the negotiations are still ongoing as the senior white house official told me will see what happens. i think you know one other person who said that. the bottom line here, there's still a ways to go. we'll see what happens i guess. >> thank you, blake. were all kind of adopting that language. in mortgage rates moving higher this week, first time in more than a month. the average climbing up to 441. four points or 1%. more in a moment. termites.

we're on the move. hey rick, all good? oh yeah, we're good. we're good. terminix. defenders of home.

trained to look at the amazon in the move to essentially change course. it's now backtracking on its retail strategy. kristina partsinevelos on that story joins us with the latest. >> amazon calls it an experiment with the pop-up locations of 87 pop-up locations. these are a store within a store. you can find them in whole foods, polls and in some malls or at amazon has announced that they are going to be closing all of those locations. i reached out to them to find

out why and they said we came to the decision to discontinue our pop-up kiosk program and are instead expanding amazon books in amazon forests are where we provide a more comprehensive customer experience and broader selection. we look forward to opening additional locations of those stores this year. it means that they are closing the pop-up locations that they are going to be expanding and focusing on their bookstores, which they already have about over a dozen. four-star locations mean at least a four star in amazon.com can range from household has two books in those stores in very recently just this past week you had amazon announced a new grocery stores that's going to be different from whole foods. last but not least, these shops, convenience stores will have no cashiers. there's already one of the adult. jeffrey analyst said he doesn't believe the books in the four-star sewers will be successful because amazon? expertise in physical retail

fulfillment. the winning retail center talking about amazon. employees and now they are saying several employees are claiming powers have been cut drastically. one woman from illinois said she went from 30 hours to 20 hours a week. i reached out to whole foods. they flatly denied these claims. they said claims that whole foods market is reducing hours as increased wages. our full-time members work the same number of hours in january and february. we are going to leave it on your screen right now that there's been a slew of retail stores closing across the board. not just these amazon pop-up shores. jcpenney, victoria's secret, macy's, payless. gap 230 and abercrombie and fitch at least 40 stores.

back to you. connell: in a changing world. in the meantime, one thing we talk a lot about here is the idea that wealthy residents are essentially getting out in states like the one we are broadcasting from. new york, also illinois is a similar problem. where did they go? of course the low tax states. we covered this on the show last week when alexandria ocasio-cortez mother moved to florida in its reporting went to get away from high property taxes in new york. what's the impact on real estate? also a member of the 2020 trump advisor boards. good to see you, sir. when you say to people that are thinking about real estate here in new york? what is the impact on the rest acted real estate market and states like new york and

florida. >> pretty simple, supply and demand. they are chasing high earners now. the taxes are high. they spend too much money. what this really goes back to his the 2017th tax cut in the reform bill that was passed. connell: one side blames the other. this is president trump is president trump's fault and then the republicans said no, you should not taxes so high to begin with. >> what the federal government did was basically put it on a level playing field and now they're all competing for jobs in high earners. in states like texas and florida where they built tax people so hard and they don't handle their money, jobs are going there. people are going there to open businesses. they encourage businesses to come and flourish. trying to get them to go there. >> if you look at new york and california, over the next three years of this committee will

does 800,000. new york was to point a billion dollars of tax revenue last year. we have a serious problem in the state and what is really interesting is how that plays into 2020. connell: how will it? >> democrats basically align themselves with socialist. bernie sanders, kamala harris, corey booker. more taxes, high spending. do we want a government run on a federal level worse a third job creators to state that are doing the right thing. red states where there is lower taxes, lower spending. playing into republican hands. connell: good to see you as always. as we move on, apple is facing slowing sales will talk about that. also a new threat we would get into. we'll be right back.

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i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪ connell: the tech world. it iphone set to have a new challenge. samsung launching the new galaxy s 10 tomorrow.

is this another issue for the folks at apple? what do you think samsung coming out with? >> this will be temporary pain for them. i don't think the samsung rollout will go well. what i read, 10,000 open and flips, usually the fail rate. connell: back up for a second. getting a lot of buzz around the idea they have this so-called flip phone, not like the old flip phones we all used to use, idea of a foldable phone. a tablet, fold it out, fold it in, it is a phone. you say the technology just not there yet? maybe why apple is not in it. >> like anything first generation there will be a lot of pickups and a lot of screwups along the way. connell: is that a good idea in your view? do people want that? >> i think it's a gimmick. i don't think apple needs to jump in that. connell: i read or hurt reports, looking at patents and thinking about it. i wonder if they have ipad

that folds up or just forget this? that is the challenge for apple saying we've been the innovator a lot over the years. sometimes they're second or third, strategically right thing to do. it has been a while, correct me, people have been exciting something apple has done or come out with? they are satisfied with a huge following but been a while before people were really excited about apple. >> they haven't created a new product that didn't excite imagination of people. connell: why? >> steve jobs. connell: that simple? >> yeah. connell: it might be. i thought it was, i thought i was odd there, somebody has to think of, before we know we need it, right? >> right, right. connell: no one can get this in our head. we pretty much have what we need you know. >> yeah. connell: what did you think of what facebook announced yesterday? because i thought it was interesting, facebook getting killed for being, you know, on the privacy side for giving away peoples data, all the rest,

going through encrypted messaging, really a business strategy to be all about privacy in we'll do things on whatsapp and messenger and keep it private, between the people using it. good strategy or set up to fail in. >> i think that is set is up to fail. facebook is one of the least-trusted brands out there. whatsapp is trusted encrypted act. connell: nobody knows facebook owns it. don't name it, facebook, whatever do. that might work, no? >> at this point mark zuckerberg he really screwed this up. his trust -- connell: amazing fall from grace as someone youngest billionaire ever until kylie jenner came along. now you're right it has trust issue. frank thanks for coming in. i will be back with you guys 4:00 p.m. eastern time. stronger then because melissa will join me. we have numbers at closings

bell. we look forward toe seeing you again four to 5:00 eastern time. that is it for "coast to coast". in for neil. i will be here tomorrow to plan your day tomorrow. but now over to charles payne. charles: people change the calendar? connell: something to do between 12 and 2:00. >> they're calling family and friends. see, connell. i'm chairs payne. this is "making money." despite major reversal of monetary policy to prop up europe's economy. the bounce faded quickly. yes, recent market weakness continues to grow. meanwhile the debate over whether central bank money print something helping or hurting economies. that also continues to grow. we have more in a moment. more fallout from amazon's big announcement on our hour yesterday. it is shutting down all of the popup shops. they cite ad variety of rea