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tv   Cavuto Coast to Coast  FOX Business  April 4, 2019 12:00pm-2:00pm EDT

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entertainment. ashley: there he is. stuart: he would balance it out. steve moore an herman cain balances it out. two political supporters. by the way, everyone herman cain is on this program tomorrow morning. ashley: excellent. stuart: connell mcshane is in for neil. connell: you put the news out there a little self-promotion for tomorrow. stuart: self-promotion we're very big on that. connell: nothing wrong with that stuart, great show as always. welcome to "cavuto: coast to coast." a lot going on. a lot is in washington. connell mcshane in for neil. we'll start at white house where president trump is meeting with the opportunity and revitalization council. we'll keep an eye on that. kind of first two big meetings. we'll bring you any news that comes out of it but i have to say our top story involves that second meeting hopes of a trade deal. the hopes for a summit possibly between president trump and
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chinese president xi xinping. first the president will in the oval office later this afternoon welcome in the chinese vice premier, the head trade negotiator side of things. that person you're looking at liu he, earlier climbing the stairs of the u.s. trade representative's office in another part of washington where edward lawrence is hanging out for us. he joins us from. there they start where you are. they could end up at white house could. be a very big day. what is the latest? reporter: all smiles when the chinese delegation coming up the stairs. this time, treasury secretary steve mnuchin also joined the creating with u.s. trade representative robert lighthizer, the two sides shook hand in a very good guess ture going forward. still the u.s. trade representative's office is preparing for another day of talks tomorrow to possibly finalize the agreement. they're trying to move forward. the main sticking point still is the enforcement mechanism. the chinese want tariffs gone forever never to return.
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the u.s. wants some tariffs in place to make sure china follows through with an agreement. possibly reimpose tariffs, if china breaks the agreement without retaliation from china. the chinese vice premier, liu he will meet with the president. reports are that the president will consider a summit. this is what press secretary sarah sanders said when blake burman asked that very question with her. >> i'm not aware anything is finalized. negotiations continue. they continue to go well and we'll see what happens. reporter: i can tell you from the chinese side. chinese what we previously reported that the chinese are hesitant about president xi xinping come to the u.s. just for a special signing ceremony for fear in china, this may look like he caved to the united states. also the white house doesn't seem to have an appetite to go to china to do a signing for this. we possibly could be looking at a neutral site, maybe the g20 in tokyo in june. that is if we can finish that
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last 10% as being described to get over the finish line to have a deal. although all signs again today look good. back to you, connell. connell: it is interesting, owed ward. all the rumors were mar-a-lago summit. i guess it doesn't really matter where it is to your point. let's get this thing done. you could sign it via skype for that matter. reporter: chinese want it because their economy is faltering a little. the u.s. would like to see it. all sides pointing in the right direction. this is definitely feeling better than it did in the same period of the usmca the canadians were the holdout. they really signed at the 11th hour. this is really a better feeling going into the final rounds of negotiation. connell: good enough. you've been all over it from the get-go. edward lawrence is in washington. there is a key jobs report out tomorrow which is in the middle of all of this.
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we mentioned that the markets are up. dow, s&p 500, maybe in the jobs report if you look what we had in the private sector, jobs report earlier in the week we could get more signs of an economic slowdown. if that's the case does it really push it in terms of a need to get a deal with the chinese? center for economic freedom's john tamney with us. always good to see you, john, by the way. always has a unique point of view. we talk to people all the time, guys come on or women come on, you need a deal with teeth and this whole type of thing. i read one of your comments all right, we need a deal that is not consequential. i said what is tam any talking about? please explain? >> we need unconsequential and get tariffs out of this. trade by definition improves peep. in this case the chinese are a huge market for us. if we're going to put tariffs on their goods such they can't sell here, it makes it more difficult for american companies to sell there.
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this matters when you remember apple sells 1/5 of its iphones in china. boeing sells one quarter of its planes. 3400 starbucks in china on the way to 7,000. it is second largest market for nike, mcdonald's, the list pose own and on so if -- >> when you hear the talk the u.s. could stick tariffs if the chinese don't comply and apparently chinese couldn't respond. that is the kind of thing talked about. i don't know if it will be approved but when you hear that, you say no good? >> why would the chinese want to injure themselves would weigh follow suit by injuring every single american? the reality economy is just a collection of individuals. individuals benefit the more people around the world they have competing to meet their needs. it means they get a raise. if the chinese want to limit the living standards of their people that is their business. connell: i wouldn't necessarily argue your point of view but i
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know that the administration doesn't see it that way. the mechanism that is in favor is the tariffs. so you know -- >> you're right, they don't see it that way, but what gives me hope is that the administration wants to run on a strong economy in 2020. and rich countries everywhere are generally open to the world's plenty. that is what improves the economic outlook for their people the most. this is particularly true in the u.s. because we have the most valuable companies in the world. by definition that means our companies are selling goods around the world. it does not help us if we injure people elsewhere economically. connell: that is interesting one of the things you see from this president, when you agree or disagree how he goes about things he sometimes is willing to take a economic hit to further a policy he thinks it is important. look at border, i don't know if he closes down the border but that is the idea. hey, he said the other day
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national security is more important than trade. i asked john lonski moody's economist, he said we would have been three percent plus growth if wasn't our trade policy. his point, the president because he think it is important willing to take a little bit of an economic hit. i wonder if that is still the policy? you say he needs a great economy to runs on but sometimes he is willing to go had a different way. >> it is a shame when any president is economically powerful. he hits on something, security is more important than trade or growth. trade is the single advancer of national security mankind ever conceived. that is the case. if the whole world is selling to you, if you're their best market they have a rooting interest in your well being not going to war with you. connell: right. >> china was a much bigger enemy to us when it was desperately poor country because they had nothing to lose. now they have a lot to lose and that's good. thank goodness americans and
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chinese are trading with each other so much. thank goodness they're so economically reliant. connell: you always have a unique point of view which we always appreciate. you informed us what a non- consequential deal would look like which is what i was wondering. >> thanks. connell: the border is the economy is the crisis at border with the homeland security secretary kirstjen nielsen there today. white house press secretary sarah sanders said earlier in the day that the administration. looking at impact from all angles. >> things are still, looked at, but we're not closing the door on that at all. we're keeping that option on the table. as the president said yesterday, he is very well aware of the impact economically that it can have but you can't put a price on the safety and security of the american people. connell: that is the point we were just referring to, former
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arizona republican governor jan brewer is next up with us. what is your take on this, governor brewer in terms of, they seem, they being the administration, whether sarah sanders or themselves there is economic risk threatening to close down the border. not like saying no, no, it wouldn't impact the economy but just a matter do you do it still because you think the priority of national security is more important? where do do you come down? >> well, absolutely we know it is going to have a huge economic impact on the united states and particularly arizona. we do, you know, about, there our largest trade partners but the bottom line we have an immense crisis on our border. it is causing confusion and chaos and people are worn out. we need solutions. the bottom line is that i believe, taking everything into consideration, we need all the governments, we need the business community to put
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leverage and heat on the president of mexico so that he would enforce his immigration laws so we wouldn't be the recipient of all of this humanitarian crisis that we're facing. it is outrageous, can president trump do to insure that happens? we're told he had conversations with texas senator john cornyn. i know senator ted cruz warned him saying it would be pretty much a disaster economically to earlier point to close the border, but when he spoke to cornyn we understand, something to the effect, hey, if you don't think it's a good idea to close the border what do you think is a good idea? i will put that same question to you, what are the alternatives if the president wants to establish or accomplish his goals if closing the border will hurt husband economically, how does he get there? >> well the only way we're going to get there to put pressure on mexico, to have them enforce their immigration laws. we cannot absorb what is taking place. we've got, we've got people pushing babies through
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concertina razor wire, slashing them to get across to get asylum. sending the kids back against the border. they're releasing thousands of people into our communities. we don't have the facilities. connell: right. >> as of today we have been notified that the cpb is going to close the nogales border on sundays so they can take their resources, their people, send them out to manage this humanitarian crisis. we have got to have our business community step up and our governors to step up and put pressure on mexico, who we do business with, to get this under control. business community is concerned about the losses right? the business community is concerned about their own interests to some degree, don't you think. >> well of course, we're all concerned about that, about that, but we're also concerned about our safety and the humanitarian and democrat, the democrats simply turning a blind
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eye saying there is not a crisis. well they need to step up in congress to do their job. the loopholes close and i believe president trump will stand firm. we finally have a president that has a spine, that will get this job done. it has got to be resolved. but sunday our border at nogales will be closed for commercial traffic. that is the beginning. connell: that is happening this sunday you're saying? then it continues? >> correct. connell: on, for as long as we know? every sunday after that until or we don't know? >> i don't know. connell: okay. >> i don't know but they're doing it because they have to move 750 border patrol over to the manage all the humanitarian crisis. connell: all right. interesting. president is going down tomorrow. secretary nielsen today. we'll continue to follow it. governor brew geared to see you. thanks for coming on. in the next hour the head of the manufacturing association coming in to us why this border crisis could have an impact on jobs. so we'll continue to cover it from that side of it. meantime there is a new push to see the president's tax returns.
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that has been in the news today. republicans asking though, what about your taxes? new calls to focus on policy and note probes. we'll get into that after the break. quick reminder to catch us along with melissa francis. she joins me as always at 4:00 p.m. eastern i'm on "after the bell." we'll see how the market closes, with the dow higher by 123 points. we'll be right back.
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and now get $250 back when you buy a new samsung galaxy. click, call, or visit a store today. connell: dow, inc., we called it do you dupont until couple days ago. but now dow inc. the stock is up today, disney looks pretty good. more green than red for the dow
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which is up about 84, 85 points. meanwhile house democrats in full attack mode, demanding six years of president trump's tax returns. pushing newly authorized subpoenas over the mueller report. the president responding to a all of that. here he is. >> is that all? >> that's all. >> usually it is 10. we're giving up. we're under audit. connell: blake burman at white house with latest developments there. hi, blake. reporter: richard neal has become a household name here in washington, d.c. the top democrat on the house and ways and means committee, sending a letter to the irs, wanting wednesday, six days from now the president's tax returns. neil we herd from him the first time today since he sent the letter on camera, said essentially they're playing the long game here. they know there will be a legal fight ahead, most likely. this is probably going to have to work its way up through the federal courts. neal says he is not sure if he
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will get an answer by next week as it relates to the president's tax returns. you heard the president say there, normally, they ask for 10 years. but neal explained earlier today, why he went for six years and not necessarily more than that, or 10. watch here. >> the reason for that is, that we followed irs guidelines which suggest to taxpayers that six years is generally the measurement that they use for advising taxpayers how long to keep their forms. so, we didn't want to have the case perhaps dismissed on a technical glitch. reporter: translation there, connell. they know a court case most likely coming down the line. they want to have all this buttoned up. over here at the white house they say democrats are simply playing partisan games. >> look, we're not interested in playing a bunch of political games like the democrats in congress clearly want to spend their time doing. the president is focused on actually solving real problems
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like the crisis at the border, dealing with health care and number of other fronts. reporter: last month up on capitol hill treasury secretary steve mnuchin was asked about this then pending topic and said, when it gets, got to this point that we're at now, woe quote, follow the law. of course the law can be interpreted in many ways. that is probably the road we're heading down here, connell. when you look at the actual law, which is section 6103 if i have the to the the numbers correctly in the tax code, it says an individual's tax returns cannot be revealed. however, at least they have to be private. however the head of the house ways and means committee is one person who can request a return and view it privately. then of course, one of the big questions is, whether or not it will get to that point. if it does, whether or not the head of the house ways and means committee, richard neal, at that point tries to make them public. connell: we'll stay on that,
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blake. stay with me. we have news breaking. the white house press pool is with the president. i will go through headlines we're getting from reuters, because they are on the big topics we were talking about before the first commercial break at the hour. the president said first of all, a lot of good things as he put it are happening in mexico but then he says he will close the border with mexico, or, in his terms, put tariffs on cars. he may apparently start by putting tariffs on cars. he says, if mexico does not help on immigration, what we'll do, we'll tariff their cars. i assume that is quote or something close to it. their cars coming into the u.s. i don't know if you want to add anything? reporter: i say it all the time in our internal notes that you and our colleagues over at the networks, network gets. when we get headlines from the president in the oval office you have to be careful, because short snippets we don't know exactly. but either way this would be i guess you could say an
quote
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escalation of the threat from president trump because remember, initially, last week i believe it was, when he threatened to shut the southern border, his frustration was with mexico. now it appears if mexico, he feels is moving in the right direction. his frustration is with congress -- connell: they are warning him not to close down the whole border. ted cruz. >> ted cruz the word he used was disaster. mitch mcconnell said it would be a catastrophe i believe. john cornyn i think if reporting of fox as well called up the president to warn him against this, senator from texas. connell: yes. reporter: if he foes the road of tariffs, we know this president is a fan of tariffs, it might just be a way to sort of shift the picture or maybe a different leverage point. connell: that is what it sounds like but we'll see. why don't -- we are going to move on talk a little bit more about this. see what you can come up with, come back to us. gabby orr from powe powe lit ca.
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good to see you, abby. president says he will give mexico one year warning, if they don't stop with illegal drugs coming into the u.s., he said in the oval office, the u.s. will tariff goods, those goods will include cars and possibility of closing the border. so i blake alluded to, this is the answer to those who said to him, it's a real big economic risk if you close the entire border here? >> yeah, republicans, people inside of his administration who have been telling him as long as he has been threatening to close down the border, this would have tremendous consequences for our economy an actually worldwide as well. this might be a way out of that scenario for the president but still a way for him to put pressure on mexico. he talked before a 20, 25% auto tariffs, and the mexican government including the mexican ambassador to the u.s., geronimo
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gutierrez has said that would be a tremendous blow to the mexican economy. but it would also have worldwide ramifications. so i do think there will be consequences for this. we will see, not only mexican officials in the coming days but probably some folks on capitol hill as well start to push back on this proposal just as much as they have the idea of closing down the border entirely. connell: the thing i'm wondering about, apparently this is one-year warning the president is giving to mexico. that certainly matters. but the thing i'm wondering about, what effect in any or complication this is would mean for the usmca which has to be approved by congress, right? >> that is something aides kept saying to him. look, one thing for you to close down the border, think that is going to pressure mexico and the northern triangle countries to sort of deal with immigration and asylum-seekers in a way they haven't previously, domestically it does have consequences for the politics of this trade deal, that the president is really hoping to get through congress before he delves deeper into his
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re-election campaign. getting that through congress would be a significant boost for him, to be able to go to the rust belt states, look at this trade deal i negotiated with mexico and canada. doing something like this on immigration is definitely not going to bring those democrats that are going to be key to passing this in the house into the fold, into a place where they can support this trade deal. connell: he is in a tough spot in terms of accomplishing his goals, right? in this particular instance because he is already been kind of shut down with the congress. had to veto that resolution. and, doesn't seem, apparently this was his conversation with senator cornyn, hey, if you don't like what i'm proposing what is the alternative here? he threw out a few things, tax on remittances brought up. that kind of thing of the president doesn't have a ton of options to get democrats to come along if they don't want to? >> no, he doesn't. he is in a very difficult position politically given the house is under democratic
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control. he is trying to negotiate some type of a immigration deal which his administration obviously tried before. not only with republicans but also trying to get democrats to back comprehensive legislation. it hasn't worked. i don't think based on what i'm hearing out of the white house there are a lot of officials who really think pushing for the border to be closed down either partially or entirely, pushing for these auto tariffs that are going to impact mexico, that these are going to help in any way. if anything, it is just going to create further obstacles for things like the usmca and a broader immigration package to get passed in congress. connell: fair enough. abby covers the white house for "politico." thanks for rolling with thing news. >> of course, thank you. connell: tesla having a rough ride. down 8%, having very poor numbers came in last night, but that might not, might not be the worst of it today, for elon musk because he's in court. we will be too after a quick break.
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news from the white house. headlines coming out from president trump on number of different topics, most importantly probably the threat of possibility of auto tariffs. if mexico doesn't comply with his wishes along the southern border. here is the president making those comments just moments ago. let's listen in from the white house. [reporters shouting questions] >> thank you. thank you. >> coming along well. we're having a big meeting this afternoon. i think you folks will be at it for a little while this week. the vice premier is here. lots of top people from china. they very much want to make a deal. we'll see what happens. got to be a good deal. got to be a great deal. look, we've been losing over many years, four five, $600 billion a year. we're losing a few years ago, 200 routinely to china. we can't do that. we'll turn it around. if it is not a great deal we're not doing it. but it is going very well. top officials are here.
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and, we're very well along on the deal. it is very complex deal. one of the biggest deals ever made. maybe the biggest deal ever made. it will be a great deal for our farmers. technology, intellectual property theft, everything is covered. there is not a thing that is not covered. we could have made a quickie, but we're in very good position. our economy is way up. china is not way up. and, we're, we're going to make a very good deal. or we're not going to make a deal at all the looks like the deal is moving along very nicely. you will meet me, we're going to say hello to the media for a little while sometime after 2:00. thank you, everybody. >> thank you. >> a lot of good things are happening with mexico. mexico understands that, we're going to close the border or i'm going to tariff the cars. i will do one or the other. probably start off with tariffs. that will be a very powerful
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incentive because mexico has the strongest immigration laws anywhere in the world. they don't have courts like we do. we have a stupid system of courts. it is craziest thing in the world. we could be the only country that has it. you put a foot on the property, you put a foot into the united states, congratulations, go get perry mason to represent you. you end up with a court case. then they release you and you come back four or five years later but nobody comes back. 2% come back. the not so smart ones come back. the most ridiculous system anyone has ever seen. we have catch-and-release and we have chain migration, somebody comes in, bring the whole family, the grandparents, your brothers, your sisters, your cousins, craziest thing i ever seen put in by democrats. the democrats will straighten it out. if they don't straighten it out, i predicted this, i hate to see it but at least i can say i was right, i told everybody, this
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is, you have a national emergency at our border and nobody even talks about drugs. the drugs that are flowing in. so for the last four-days, you actually have covered it to a very minor extent mexico has been capturing people and bringing them back to their countries at their southern border. they have been taking people under their very powerful laws they have the right to do it, bringing them back to where they came from. that is about three days now i guess since, frankly since they heard i was going to close the border. but before i close the border if mexico, and we love mexico, we love the country of mexico. we have two problems. we have the fact that they allow people to pour into our country. we have to stop them. border patrol is incredible. i.c.e. has been incredible. law enforcement is incredible. the other problem is drugs. massive apartments, large, most
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of the drugs, much of the drugs coming into our country come through the southern border. in all different ways. much of it where we don't have walls. the wall is under construction, by the way, large sections. we'll be meeting by the way on friday at a piece of the wall we have completed a big piece. a lot of it is being built right now. a lot is being signed up right now by different contractors. it is moving along very nicely but we need the wall but we need lots of other things. we need help from mexico. if mexico doesn't give the help, that's okay, we'll tariff their cars coming into the united states. the other thing is because mexico is such a big source of drugs, unfortunately, unfortunately, now we have china sending fentanyl to mexico so it can be delivered into the united states. it is not acceptable. so, the second aspect of it is, which you haven't heard before is that, if the drugs don't
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stop, mexico can stop them if they want, we're going to tariff the cars. the cars are very big. if that doesn't work we're going to close the border. i think that will work. that is massive numbers about dollars. so if we don't see people apprehended and brought back to their countries, if we see the massive caravans coming up to our country right through mexico, coming right through mexico, like nothing. buses are even given to them. the last three days it hasn't happened, since i said we're closing the border. the only thing frankly better but less drastic than closing the border is tariff the cars coming in. i will do it, you know i will do it. i don't play games. i will do it. we're doing it to stop people. we'll give them a one year warning f the drugs don't stop or largely stop, we're going to put tariffs on mexico and products in particular cars. the whole ballgame is cars.
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it is the big ballgame, with many countries it is cars. and if that doesn't stop the drugs, we close the border. because mexico last year, and over for many years, just like china, except china numbers are even bigger, and i don't blame china and i don't blame mexico if they can get away with it. i blame the people that used to sit in this seat. they should have done something about it. i'm not just talking about president obama, i'm talking about many presidents, they should have done something about it. so if mexico doesn't do what they can do very easily, apprehend these people coming in, and they can do it in much more humane fashion, why should they walk up 2,000 miles and be brought back? they can stop them right at their southern border, right where they come into mexico. they have unbelievable immigration laws where they have the right to do it, the most powerful in the world. as good as you can have. and they're going to do it.
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if they are not going to do it, we'll tax the cars. if that doesn't work we'll close the border. we'll do something having to do with tariffs on drugs. because not only are hundreds of thousands of lives a year being ruined in our country, but numbers of people, dying that you wouldn't believe. we'll lose one military personnel, it's a front page story, yet we have 100,000 people, people don't even know the number. they say 77,000. they say 72,000. any number they give you can guarranty to raise it and if the drugs don't stop we're going to put tariffs on. it also costs our country at least $500 million through our southern border, $500 billion. so we will put tariffs on, if they don't apprehend and ultimately we're going to give them a period of time but if in a year from now drugs continue
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to pour in, we're going to put tariffs on. now, we have a deal. usmca, it is all done. they're going to have to live with it, okay? they will have to live with it. i'm not trying to be unfair. they will have to live wit but the usmca is a great deal for everybody but this is more important to me than the usmca. so they will have to live wit. thank you very much. [reporters shouting questions] thank you very much. thank you very much. connell: all right, that is president trump just momenting ago at the white house and providing some context to the headlines before we told had that played back. he talked about our big story today, the meeting he will have later today with vice premier of china, liu he. of the maybe he is not done then we'll recap. this is the president, we'll see if he takes more questions from reporters?
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no, i don't believe he is going to. you never know. you never know until it is really over. anyway, certainly made some news on mexico there on the border crisis. he didn't say much about china. that is going to obviously be the story later on in the day when he has meeting with chinese vice premier. he said trade is coming along. we'll see what happens. he gave us a little bit of context on headlines, told but the threat of tariffs. progress is being made towards mexico. mexico is coming around. they're capturing people and bringing them back to where they came from. he went forward with the one year warning and threat of auto tariffs. mexico understands we'll close the border, tariff the cars. if the drugs don't stop we'll tariff the cars. if that doesn't work we'll close the border says the president. i know he has been quite critical of u.s. immigration laws but it was something to see the president of the united states say about those laws, and i'm quoting them now, we have a
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stupid system of courts the president is saying a few minutes ago. market is up 100 points on the dow. we'll come back to talk about all of this as we continue on "cavuto: coast to coast." we'll be right back. rather than worry about how to pay for long-term care. brighthouse smartcare℠ is a hybrid life insurance and long-term care product. it protects your family while providing long-term care coverage, should you need it. so you can explore all the amazing things ahead. talk to your advisor about brighthouse smartcare. brighthouse financial. build for what's ahead℠ brighthouse financial. your control. like bedhead. hmmmm. ♪ rub-a-dub ducky... and then...there's national car rental. at national, i'm in total control. i can just skip the counter and choose any car in the aisle i like.
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and if you've got cut-rate car insurance, paying for this could feel like getting robbed twice. so get allstate... and be better protected from mayhem... like me. ♪ connell: we've really been watching tesla stock price today. it is getting hammered down 8% after the company last night reported a big-time disappointment in terms of first quarter shipments. actually way below the estimate. that is not good news, model 3, what have but there may be some more troubling news for the company because elon musk, the ceo, has a court battle that is underway here in new york. in fact that is such a big story that charlie gasparino hightailed it downtown to the courthouse to cover the whole thing. he has been all over tesla. what do we expect today, charlie? >> you know, listen, let's back up a little bit, this is a court case over that tweet he put out
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that he didn't get, remember when he cut the consent decree with the sec over the funding secured tweet, that was wrong, remember that? they said if you want to do other tweets involving the company they have to be truthful and go through some sort of compliance process. he did a tweet about production numbers, something along those lines. the sec deemed it wasn't truthful and didn't go through the compliance process. it went to the court. the judge today will have to figure out what type of, you know, remedy or or violation and what he should do with elon musk. theoretically the judge today in federal court could stop him from being a director or ceo of the company. literally could bounce him out of the company. he owns 20%. you can't make him sell the shares. she could rule that he shouldn't be an owner or director of the company, that he gets you bounced down something like creative director, something that is not an officer. a lot of people doubt that is
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going to happen. that is one thing at that could happen. here is the other thing that could happen which is so strange i don't know why tesla is not commenting on this. i've been asking them for the past week will elon musk show up? i just got off the phone with the tesla pr guy, will show up? they keep saying no comment. i don't understand why they're doing that, other than you know, there is a very good possibility he is going to be showing up at this thing personally. if he does, that will be a pretty interesting story. we'll obviously try to nab him, get an interview with him. if he does that, it willhiteen the drama here. if he does that, my guess they are worried that she is going to throw, she is going to throw the book at him. i will say this, connell. sec generally enters into the agreements, settlements with corporate executives. it's a civil settlement. the corporate executive neither admits or denies wrongdoing. sec says you have to follow these rules. most ceos follow these rules.
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this guy obviously did not. the real question if you're the federal government, do you allow a powerful ceo to get away thumbing his nose at the sec and a settlement decree he signed? i am sure he will have some sort of a explanation this did not violate it but if you see what happened, it pretty clearly did. i think if shows up, they are worried she will really throw the book at him. i can't tell you if she will throw the back at him but i can tell you tesla is not commenting whether he is going to be here or not which makes me think there is a good chance he will be here. connell: that is a little weird. i know he is not required to be -- we have to go anyway. good reporting, charlie, that would be must-see tv getting gasparino chasing elon musk down the street. president backing off on the threat of closing down the whole border but entering with a new
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threat of more tariffs, auto tariffs specifically. some context on that analysis after a quick break. we'll see you back after quick break. 900 acres. 48 bales. all before lunch, which we caught last saturday. we earn our scars. we wear our work ethic. we work until the work's done. and when it is, a few hours of shuteye to rest up for tomorrow, the day we'll finally get something done. ( ♪ ) our grandparents checked zero times a day.one. times change. eyes haven't. that's why there's ocuvite. screen light... sunlight... longer hours... eyes today are stressed. but ocuvite has vital nutrients... ...to help protect them. ocuvite. eye nutrition for today.
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connell: we heard in breaking news from the president a few mints ago, from the white house he has a new warning from mexico. basically you have a year to get
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your act together with regard to the border, otherwise tariffs are coming. if that doesn't work the border is closing down. from the state department, senior policy advisor chiron skinner is our guest now. thank you for coming on with us, maybe we start this because literally it just happened. this is now on the table for mexico. i guess, this is modifying a position, is that fair? we heard from the president earlier, we'll close the border. now adding this threat of tariffs. >> i think what we're seeing the u.s. president play a leading role in the international system, one that the united states has needed to play in the 21% century but always hasn't on issue of the southern border, issues like nato, that is happening right now. ineffective governments that are not taking up their responsibility to their own citizens, and they're arriving at our border, wanting entry, the president is saying this is a security threat to the u.s.
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we've got to take strong action. i think he is trying to give mexico time to make some tough decisions. as you know recently defunded the northern try angle countries because -- triangle countries because they haven't used foreign aid for objectives to advance their own citizens and affect their societies. so the u.s. has to do somethingt language to help push, push the partners to our south to think about their options in a way, perhaps that they would not think about in the absence of him, kind of laying out how he sees the state of play. connell: what's the role of your boss, mike pompeo in the state department in all of this? you alluded to foreign aid. is there more of that to come possibly? is that another -- the president goes back again and again, did today with the threat of tariffs. what about more threats of cuts to foreign aid, is that also something that's on the table? >> i think we're looking at all
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alternatives but the foreign aid discussion around the northern triangle is a recent decision that the state department was deeply involved with and will be a central in executing and it is really a signal that four foreign assistance is important for the united states. it is not just something we do because we've been on autopilot with it. we want to see results. those results will be rewarded or not, based on performance of countries. and so that decision, really speaks to the president's agenda and links up the state department with the white house. i think in a very important way. connell: we've soon that in some ways, as you know, european countries, the whole discussion around nato which you referenced a moment ago. jens stoltenberg, the secretary-general of nato, met with the president. made a big speech in front of the congress. the i believe meeting with secretary pompeo. what is the takeaway from his trip this week in terms of what this administration has been able to accomplish and the
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changes put in place how u.s. interacts with nato. that is excellent question what is happening on southern border, it was a remarkable moment in the u.s. congress to have the nato secretary-general talk about the improvements in nato, in part due to the american president, underlying, underscoring for the nato countries the importance of increased defense spending. that discussion by the american president, much like his press conference moments ago on the southern border look at their own budgets, make commitments. $41 billion in additional nato spending from european and countries in canada, the past two years, with more to come. i think it has a result when the united states, the predominant power on earth acts, acts in a way as responsible international partner, helping all of our
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allies and those to singh -- seek to oppose us or won't take care of their own countries when we see we're willing to talk to them in unvarnished ways i think we get better results. nato is strongest today than it has been in years. year 70, more commitment to collective security and defense and a better understanding of our challenges including on the eastern flank of nato which we're talking a lot about with our nato partners this week. connell: thank you very much for that and for commenting on breaking news from the white house. kiron skinner from the state department today. quick break we'll stay on top of trade. big meeting with the president with the vice premier of china coming later today. trade related stocks higher ahead of that.
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connell: we're back, with the dow up by 102 points on what's turned out to be a busy thursday
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afternoon. all the afternoons turn out to be busy at one point or another. we have big dfltevelopments out washington. one of them, the china meeting the president will have later in the day as those talks continue. we also have the president making news on the border which we'll get back to. that happened last hour. we will talk more about it in this hour. with the dow higher ahead of liu he, the vice premier of china heading over to the white house, let's bring in rebecca walser and mike murphy. you know, mike, it's like groundhog day but every night we get these reports essentially out of washington, edward lawrence, our reporter, somebody says we're almost there, almost there, now maybe it's for real that we are almost there with china. what's your read on it? >> i think that's a great way to sum it up. but if you look right now, the market is looking past this, i think. the market expects a china deal to get done. i think a china deal will get completed. really, i think the market now is being drawn to those old
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highs, the market momentum is there to take out the old highs. unless this deal completely falls apart, that would be a negative. if it doesn't, if we get any sort of a deal, i think the market will make new highs in the near term. connell: any sort of a deal thing is what a lot of investors point to. you can get the academic types, people who have looked at china for years and years, say it's the type of deal, of tyou have enforcement mechanisms but the investment community want to get this thing out of the way, right? >> yeah, we do. i was listening earlier, we don't want tariffs, this is not good for all of us but we have to remember president trump didn't get into office putting tariffs on people all across the world. there are legitimate reasons the tariffs went into place. connell: can you invest in a world, do business in a world where there are still serious tariffs on the chinese and they still have some on us? >> well, look at the alternative. if we have no way to enforce a
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tariff we are back to square one. we have to have enforcement measures. that's why i think i do agree there has to be teeth in this deal. i think mike's right, the market's pretty much priced it in. we expect something and it will be really bad if we don't get something. we will get a bump when the deal is done. connell: we are? >> we are. connell: it's interesting, mike, because that is kind of the discussion is that, you know, is it okay to enforce this deal with what everybody on wall street and everybody else seems to hate from the beginning is the tariffs. in other words, when you say that we are pricing in a deal, are you pricing in one where we don't have to worry about tariffs anymore or where that's still part of the discussion. remember, the whole usmca deal, it's not like tariffs necessarily just go away like this as soon as he signs one of these things. that doesn't always happen. >> you are correct, but i think when you look at it now, any deal we have is going to put the united states on better footing than where we were in the past. and you asked the question can
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we move forward or move higher or can we invest in a world where tariffs exist. well, they have existed. it's just that the playing field has been slanted against the united states for so long, and looking past president trump, so many presidents have addressed this and said they were going to tackle it and do something about it, and they haven't. so the fact that a deal gets done -- connell: it's automatic that we are better off than we were? i guess i bring it up because depending on what we get here, some of the farmers say just as an example in the midwest have gone through pretty tough times, it's not like everything stopped while we were negotiating this deal, and i'm sure they are hoping to not just be back to kind of square one. they are hoping for a significant improvement, right? >> right. well, you are absolutely right, but i think really, there was no -- putting tariffs, you could argue, wasn't what a lot of people wanted but i don't know what the other option was for the president to do. i think standing up to the chinese and getting a better deal for the united states puts all of us on better footing, and eventually, that will also
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impact the farmers. even if it doesn't right now. but a stronger u.s. economy and the u.s. on stronger footing will be better for the entire united states. connell: i get where you're coming from. rebecca, last word on this topic in terms of we are going to be better off than where we started, i suppose, if we get something whether today or two months from now. >> listen, any time you have a relationship where it's smooth sailing but it's a bad relationship, it's going to hurt to rip that relationship apart. i 100% agree, this had to get done, it's going to get done. any deal, we need enforcement but any deal is better than where we were. this is the president who has made this happen. thank god it has. connell: rip that band-aid off. good to see you. thank you, mike. good stuff from both of you. up 90, 91 on the dow. if we hear from democrats, they are demanding the president turn over his tax returns. that's one of the items in the news today with the house ways and means committee looking to do that, ranking member kevin brady reacting to that with this. here's what he said. >> -- another step in the
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democrats' misguided rush to impeachment. this request of the president's tax returns is an abuse of the committee's authority. it violates the very law chairman neal used to request these returns. connell: obvious transition to chad pergram, who is covering capitol hill and joins us from the hill with reaction to all this back and forth on taxes which really started during the campaign. reporter: well, this is exactly what democrats said they were going to do, make no surprise about that. everybody knew they were going to do this. it's a question as to whether or not anyone will be able to look at the taxes and whether or not the ways and means committee will get them. listen to this from house speaker nancy pelosi. >> the secretary shall furnish, shall, not may, should, could. shall furnish such committee with any return or return information specified in such request.
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>> -- people that are running for president, though [ inaudible ]? reporter: democrats think they certainly have the law on their side and nancy pelosi reminded reporters this morning that there has never been an instance when the ways and means committee or people on capitol hill have asked for tax returns that they have not gotten them. keep in mind, this is all part of the overall investigation that democrats are conducting. there's the part by the oversight committee, the part by the judiciary committee certainly looking into robert mueller and trying to get their hands on the mueller report, then the issue of the taxes to see if there are questions about the president's business dealings that might be revealed there. you talk to republicans and they think this is an abuse of the law, that the democrats are weaponizing the issue of tax returns. the democrats think the law is on their side and this is part of what they said they were going to do. keep in mind, when they passed hr-1, their hallmark piece of legislation to start the new year, in that was a provision that if you are running for
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president, if you filed to run for president, you have to cough up your tax returns. connell: real quick, you have talked to democrats behind the scenes, some of the more moderate ones who did well in the midterms, is there any thought amongst the caucus that we better be careful not to overplay our hand, not to go too far with all this? reporter: that's always the concern. i haven't heard it as much on that issue, because you look back, most presidential candidates have released their tax returns. it's one thing if they find something that's shady in there, but they feel they are on pretty solid ground. there is unanimity on that issue. connell: this whole larger picture of whether the democrats are focusing too much on probes and not enough on policy has come up. "washington examiner" commentary writer is with us and "usa today" congressional reporter as well. take it from there. it could be this issue with the taxes or maybe it's mueller but the idea for the democrats, do you push, push, push, keep going after the president, or do you shift it back to policy where
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you did pretty well on things like health care in the midterms? >> you mentioned some of those democrats that flipped those tough seats, the seats that the president won. there is concern from them, like chad said. i'm hearing the same thing on taxes. they feel that is something they have solid legal footing. pelosi was talking about the actual law there. but they are concerned, especially talk of impeachment, subpoenaing the mueller report, getting the full mueller report, but what happens when they look in it and there are some things that might not be super-positive about the president, some of the progressives want to go after him and now the moderates are concerned. i think there is concern of overstepping their hand, but at this moment, they are supportive of getting the tax returns and getting the mueller report but then once they get those items, that's where i think you will start to see friction in the party. connell: interesting. what's your read on this, especially on demand for the tax returns which again goes back to the campaign days, legit now or
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distraction? what's your read? >> i probably would agree with eliza. i think there are many democrats and trump critics who would argue democrats are not overplaying their hand on this because they are fighting the way that trump would, particularly going after his tax returns and you know, subpoenaing the mueller report are just seen as the democrats fighting against the trump administration. connell: that's what 2020 looks like, you think? >> bigger picture, if you are looking at the 2020 presidential election, they are trying to arm themselves or have the ammunition that they didn't have in the 2016 presidential election via the tax returns. you know, democrats will try to seize on any negative implication that might be in the mueller report or his tax returns, and that might be sufficient enough to at least go after him with. connell: the risk is, right, that the tax returns turn out similar to what we know so far about mueller and what we know so far about mueller is there were no indictments. we don't have the whole report. i understand there might be more in it but the tax return thing has been out there forever.
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what if we do see them and there are no smoking guns? then you do if you are the democrats have to pivot to policy, right? you are kind of stuck. >> right. i think that's why we are seeing someone like pelosi or richie neal not trying to guess what is in the tax returns. pelosi this morning was saying we want to make sure he's being audited. connell: which is what the president has said, before he took office he was under audit. >> exactly. connell: they want to make sure that's true. i get that. just if it comes out and you get the six years somehow and all of a sudden, there's nothing in there, you talked about it for years, it doesn't make them look good either politically. that's the risk. >> absolutely. they'll have to talk about policy at that point. connell: all right. good to see you both. we move on to talking about boeing and what's been interesting to watch, at least the stock price today, the new report out of ethiopia shows boeing is facing new blame for that ethiopian airlines crash. why investigators have been saying the pilots were not at
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fault. with that, you would think the stock would be selling off and it's not. we'll talk about that. what do you look for when you trade? i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪
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connell: ethiopian airlines releasing its first report on the 737 max crash and i'll tell you, if you look at it, the headlines from it, doesn't look great for boeing. it's basically blaming boeing as opposed to the pilots for the crash. as we mentioned earlier, not hurting the boeing stock price. let's get to jeff flock with the latest on all this. jeff? reporter: well, you said it absolutely right, connell. yeah, you look at the headlines and let's put them up there so you know what we're talking about. this was the ethiopian transport ministry that issued this first preliminary report. it said the pilots did follow the emergency protocols that
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boeing laid out with that anti-stall system. they turned it off when it appeared to malfunction. the takeoff appeared normal. the plane had a valid certificate and the pilots were rated as qualified. why, then, is the stock which of course was the top performer on the dow in 2017, boeing, why is that stock now up about 2.5%, almost $10 a share? well, here are two reasons. one, it is the ceo of boeing which has said that you know, in connection with the crash, they have come up with a software fix. he says that's a valid fix and that's going to be fine. that's one factor. the other one is a comment from former ntsb investigator and board member to fox news, saying he believes that ethiopian transport ministry report is wrong, in his words. he said there is evidence that the pilots did not follow emergency procedures as outlined by boeing when they turned that system off, apparently they also
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turned it back on. he said, i quote him now, you don't restore power to a system after a malfunction, you wait until you're on the ground. that would be a violation of the procedures. i guess we'll see. the faa not really weighing into this much. sort of a no comment to me, although we do have a statement from the faa. i read that to you. says we continue to work toward a full understanding of all aspects of this incident as we learn more about the accident and the findings become available, we will take appropriate action. pretty much no comment, as far as i can read that. guess we'll wait for awhile longer from the faa. of the moment, plane's still on the ground. connell: yeah. keep on top of it. reporter: stock's flying high. connell: yeah, it is. jeff flock, thanks. we have breaking news i want to get to because it has an effect or could on amazon and its founder and ceo, jeff bezos. mckenzie bezos just tweeted out
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she is giving jeff, jeff bezos, all of the interest in both "the washington post" and blue origin, two of the companies he controls. on her twitter feed she writes she's grateful to have finished the process of dissolving my marriage to jeff with each other. in addition to saying what i just said, giving him all my interest in "the washington post" and blue origin, she adds and 75% of our amazon stock plus voting control of my shares to support his continued contributions with the teams of these incredible companies. mckenzie bezos, that would be something that was i guess open to some question about how the split on the amazon shares would go, and what stake she might have in the company's future. appears she doesn't really want much of a say and is giving 75% of the amazon stock plus voting control to jeff as part of the divorce proceedings. that was just in.
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wanted to pass it along because it certainly involved amazon, one of the more valuable companies in the world. meantime, president trump last hour putting a warning out to mexico. a one-year warning about the border. listen. >> only thing frankly better but less drastic than closing the border is to tariff the cars coming in and i will do it, just like -- you know i will do it. i don't play games. i'll do it. so we're doing it to stop people. we're going to give them a one-year warning and if the drugs don't stop or largely stop, we're going to put tariffs on mexico and products. connell: national association of manufacturers president and ceo jay timmons recently paid a visit to the border himself. says there's real national security risk and something has to be done. he's our guest as you look at a picture from that trip. good to see you. what about the reaction to the breaking news that the president's threatening auto
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tariffs? if that doesn't work, he will close the border. what do you say? >> good to see you, too, connell. we have an issue with immigration reform. i don't think anybody can doubt that, regardless of what side you're on. you're right, we did go to the border. we saw the national security concerns. we also saw the humanitarian tragedy that is occurring down there. congress has a responsibility here in addition to perhaps others, but congress has a key responsibility to get comprehensive immigration reform done and it needs to be done very, very soon. connell: now, it's the how, right, how we get there. >> well, sure. we actually have a plan for that. connell: i know. i know. but it's been talked about for years and years. and getting there has always been difficult. in the meantime, you have companies that you talk to and represent that have their own concerns that i just wonder how they would react to some of the rhetoric we have heard this week. seems like anybody you mention in the manufacturing industry says no, no, don't even talk to me about tariffs on cars. what do you say?
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>> yeah, they are obviously very concerned when the discussion was about closing the border, we decided we needed to quantify that. that's about $265 billion of goods that are being exported from the united states to mexico. it affects one million manufacturing workers and about 3.3 million other jobs in the united states economy. so that's a huge, you know, that's a huge problem, obviously. if you look at just cars or autos, as the president has outlined today, there's got to be a lot taken into consideration there, because that also impacts american manufacturers. connell: what about usmca? that's the other thing the president said, i'm more worried about all this national security than i am even about that trade deal which is not approved yet. >> i don't think you can really separate those two things. i think both are very important. obviously national security is an imperative and i do think we have a problem with certainly drugs coming in from outside of this country and it's caused a lot of consternation throughout this nation. because of the abuses we're seeing here. but i also think you've got to
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make sure you have robust free trade between our country, certainly among our allies, mexico and canada as well as other allies throughout the world. that helps us to make sure that we can follow the rule of law, that we have these economic norms that benefit both countries. and will hopefully dig us out of this mess and help mexico right its own economy as well. connell: got to run. good to see you. >> thanks for the time. connell: more on that mckenzie bezos tweet, kind of interesting, giving 75% of her stake in amazon as part of the divorce proceedings. that's coming up next. don't miss "after the bell" today at 4:00 p.m. eastern. we will see how the markets close. dow is up 103 right now. i'm working to keep the fire going
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hey, guy. he's on his way into the courtroom. elon musk in a court battle with the s.e.c. over the appropriateness of a tweet that he sent out. we have gasparino down there trying to tackle him. we'll see if anything comes out of it maybe on his way out of the courthouse. there was a question about whether mr. musk would show up in person. obviously he has and does have a certain flair for the dramatic. stocks are getting beaten up for a completely separate issue. shipping numbers that came in last night for tesla were not very good at all, down by 8%. tesla shares, $267.31 per share. he's there. i don't think we missed anything. i don't think he said anything of significance as far as i can see. if he did, we will bring it to you. the other thing that came in very interesting a few moments ago from the jeff bezos divorce,
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interesting in that it could have an impact on amazon as a company. mr. bezos will be keeping 75% of the shares that were to be divided up between he and his wife mckenzie as they go through the divorce. she tweeted. susan li on this and other topics we will cover. susan is with us in studio. susan: divorce expert is the role i'm playing. connell: smomeone's got to be. susan: i went through the shares and through the numbers. this is breaking news. i did the quick math and if you split it up, 75%, 25%, it looks like mckenzie is still walking away with $30 billion. connell: i was worried about her. breaking news. susan: $30 billion is fine. she's giving away all the voting shares and voting rights of these shares to her husband which i think is very good for
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the stock price and the company and shareholders, because there was some question given that it was washington state that this divorce would take place in, she actually had a right to 50/50 of everything. 50% of the money, 50% of the voting shares. in this case she's saying okay, you handle the company and jeff bezos has also tweeted as well. i don't know if we have that tweet, thanking mckenzie for doing this and being a great partner in this divorce. i think amazon shareholders are very happy. connell: fair enough. stock's kind of flattish today but certainly that's probably the best of both worlds for amazon. want to talk facebook with you while you're here. before we do that, let's listen to mark zuckerberg i guess essentially doubling down on his calls that he has made recently for more regulation of his company and industry. >> setting the rules around political advertising is not a company's job. there has been plenty of rules in the past, just that at this point they're not updated to the modern threats that we face. we need new rules. connell: "good morning america" interview.
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what's the angle here? susan: two separate succinct chunks of the interview. i would say he's basically pushed the onus on to the government, whether the first amendment right, free speech, defining what terrorist videos look like, what exactly is hate speech, that's all on the government. also, redefining what the internet rules should be. connell: right. susan: how do we govern if we don't know what the rules are. connell: some people criticized him, to the point you were making a moment ago he's trying to pass the buck to the government. susan: especially the fcc commissioners have said this is not our job, this is a private company, you are dealing with private citizens, private messaging. you should be the one deciding what's good for your business and what's not. i think the most poignant part of this interview, i took away from it, was when stephanopoulos, george stephanopoulos asked mark zuckerberg are you surprised by the hits you have taken over the year. he says i have been more surprised than i should have been. it is a platform, two billion,
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very influential around the world, and he should have seen all this coming. is it hard to see down the pipeline, yes. is it hard to govern, yes. but should he have done better, i think that was probably the piece you would take away more. connell: how the political world works, right. susan, thank you. we take away from that mckenzie bezos is going to be okay. you heard it here from susan li. susan: given what happened? come on. connell: that was a close one. self-driving. we will talk about that. nothing to do with tesla. we just had elon musk going into the courthouse. this is waymo. waymo is making big-time plans for self-driving cars. in fact, liz claman, host of "countdown" with a great look at all this today. she's out in arizona and joins us from there now. hey, liz. liz: listen, it's more than a plan. it's actually happening here in chandler, arizona. in varney's show, we showed the exterior of the chrysler pacifica, there are hundreds of these, more than 400 traversing
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the streets picking up paying customers now in the ride hailing autonomous vehicle plan that started off as a google project. you have all the sensors, 19 cameras, this way they can anticipate and see everything that's going on. varney got the exterior. come on inside. i'm giving the cavuto show the interior side. come on in, let's look in here. you have your app, waymo app, and there are hundreds of people who have signed up for this plan. you hail the car, it arrives, comes in. you open the door. i want you to look here, right here, there's the steering wheel. do not touch the steering wheel or the pedal. that is for the test driver. yes, right now they have test drivers but they are not touching it unless there's some force majuer situation. there's a blue button that says start, ride, if you need to, pull over. i forgot my cell phone, whatever
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reason. then if you god forbid need to, you press that for help. these are the screens. you as the rider see everything that will be happening. by the way, 3:00 p.m. eastern, first ever televised live ride-along. we've got it right here on the claman closing "countdown." you've got to see it. no one has ever done it. we have the ceo john krafcik with us. he has granted this to just fox business and our viewers. this is the way of the future. i do have to say there are hundreds of people doing it, including the mayor of chandler. listen. >> i'm on the waymo list. i have driven in a vehicle. i had someone at one point try to -- on one of those try to go quickly around and the vehicle adjusted far superiorly than i could have had i northbound that seat. . liz: that's the mayor. he loves it. but guess what? as google waymo now, a division
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of alpha sebet develops the bes ever driver, what doesn't it do? it doesn't get impatient or bang the steering wheel. i never do that. it doesn't get impatient and we have this reporter at the arizona republic who followed one all day long and he pointed that out. listen. reporter: sometimes i get stuck in weird situations like a big landscaping truck that's blocking part of a residential street. you and i would probably pull around that no problem but the car, if it can't see what's on the other side of that car, even if it's in a residential area where the speed limit's like 15 miles an hour, it's not going to do that. liz: coming up, a million questions to ask john krafcik, the ceo, before we take that live ride-along right here. we have cameras set up all throughout in a chaser car. stay tuned. it is a big money story because lyft, uber, toyota, general motors, they are all trying to catch up to waymo and develop
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self-driving cars. connell: i'm looking forward to watching that on "countdown" later today. liz claman out in arizona. thank you, liz. great technology. as we look at elon musk on the way into the courtroom. i assume a human drove him into manhattan today. we got charlie gasparino and others chasing after him. charlie will be back with us in just a moment.
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do you have any comment today? >> no comment. >> how are you feeling right now? >> i want to talk. >> you do? how about afterwards? >> come on, guys. you got to let me through.
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i have great respect for the justice system. i think the judges, the american system are outstanding. connell: that's elon musk moments ago. charlie gasparino back with us from the courthouse where mr. musk will be fighting the s.e.c. in person with great respect for the justice system, is that what we heard? >> what did you hear earlier today, that he was probably going to show up and who told you that? who? who? connell: the news is that you predicted -- >> the guy freezing his rear end off down here. connell: what? hold on a second. i'm looking at my watch. it's 57 degrees in new york city right now. >> i'm trying to show you it's a
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real hardship. we have been asking tesla all week, is he going to show up. my last conversation with tesla was the tell. why would you say no comment? you know, he's not showing up, just say no. didn't make any sense. he obviously did and i guess the tell that he is showing up is that he knows he's in deep trouble. they're afraid that this judge just might, i think it's a theoretical possibility, i don't think -- i think it's more than theoretical possibility but i don't think it's a big possibility, this judge might throw the book at him and say listen, we are going to make an example out of elon musk. he signed a consent decree and settlement order. in that settlement order it was really specific. you cannot tweet about company news, stuff that might move the stock, stuff that is material to the company, without it going through a process and it's got to be truthful. he did not do that a couple weeks ago.
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the tweet he put out, i think he erased it but the initial tweet he put out about production numbers wasn't truthful, wasn't accurate, and it did not go through the general counsel or whoever it was supposed to monitor this. that is a clear violation of the settlement order which was pretty good terms from the s.e.c. he had to give up his chairman role but he still says as ceo. he had to pay a marginal fine. it wasn't that big a deal. then he went out and thumbed his nose at the government. i think with him showing up, this just shows, guys, that they are really afraid that this judge is going to say okay, you want to be the creative director of tesla, that's fine. there's more than a theoretical possibility at least in their mind, tesla's mind, they could bounce him as ceo. not saying that's going to happen. if that happens, i know the stock is down how much today? it was down like 30 bucks last night. 8%. it was down significantly on not meeting production goals. if they bounce him as ceo, this
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stock could take another leg down. that's a big if. i'm not saying they're going to do it but it's obviously on the minds of tesla if they brought this guy here because they want to show some degree of contrition. i think one statement he did make, i know he didn't really say that much, one thing he did say was do you respect the judicial system. i think he's trying to tell the judge i respect you. what's fascinating, he cannot bring himself to say anything positive about the s.e.c. this is odd. you know, okay, he doesn't like short sellers, he thinks the s.e.c. allows short sellers to spread rumors about his company. i get that. but what he fails to realize is that the s.e.c. cut him kind of a sweetheart deal on that last tweet which was clearly wrong, that he had a deal in place to take the company public at 420. think about this. this is a ceo who is tweeting stuff that's absurd. i'm telling you, man, if the judge doesn't throw the book at him, you know, maybe there
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should be an intervention by the board of directors. connell: we'll see. reporter: this doesn't add up. i guess we will see. we'll know. i have my producers in there taking notes. as soon as we hear something, we will be back on the air. connell: charlie, thank you. >> just say i told you so. connell: i always do. that's my line for everything. gasparino told me that would happen. thank you, charlie. charlie gasparino downtown. elon musk was there. we will see hoim on the way out and see what happens. we have to transition to some politics today. the ohio democratic congressman tim ryan is running for president as it turns out. nine-term congressman, 17th democrat. boy, is it already? to enter the 2020 race. with the race on our mind, we should tell you our friends at fox news are hosting howard schultz at a town hall in kansas city and hillary vaughn is there with the latest on that. hey, hillary. reporter: hey, connell.
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democrats have called howard schultz a spoiler and are worried he's going to launch a third party run for president. schultz has publicly criticized both 2020 democrats in the race but also president trump, but tonight here in kansas city, missouri, voters will get their chance to put schultz in the hot seat. the town hall airing on fox news channel at 6:30 p.m. tonight is hosted by bret baier and will feature questions from the audience. one topic on schultz's mind, immigration. last night, schultz took aim at the president, writing in a blog post posted on medium.com, president trump impulsive and ill-considered threat to close the border with mexico is a big mistake. schultz said that move wouldn't solve any immigration problems but just create a big economic problem. he says stalling exports at the border would not only hurt businesses and workers but also put about $600 billion worth of cross-border trade at a standstill. schultz says trump's threat is really just a way to score political points but tonight, schultz will try to score his
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own points with voters here in missouri. connell: hillary, thank you. the former starbucks ceo tonight on fox news channel. appreciate that. now, the president giving mexico this one-year warning. that's the breaking story we have been covering on the show today. is that enough? will it get a reaction? will mexico actually step up to the plate on the southern border? alan west on that, after this. we'll be right back. here you go little guy. a cockroach can survive submerged underwater for 30 minutes. wow. yeah.
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i don't play games. i'll do it. so we're doing it to stop people. we're going to give them a one-year warning and if the drugs don't stop or largely stop, we're going to put tariffs on mexico and products, in particular cars. the whole ball game is cars. it's the big ball game. with many countries, it's cars. and if that doesn't stop the drugs, we close the border. connell: so president trump trying to put pressure on mexico. the question now, will what you just heard be enough to fix the crisis at the border? retired army lieutenant colonel, alan west, joins us. what do you think? put tariffs on the cars, if it doesn't work i'm closing the whole thing down. that's what the president said last hour. what's your reaction? >> it's good to be with you, connell.
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just yesterday, i was down in the rio grande valley and i will be back down there in two weeks in the mcallen sector. when you talk about devastation, you talk about disaster, the people down there, law-abiding everyday citizens are the ones suffering the brunt of this uncontrolled situation along our border. you see local crime and things of this nature rise. you see a president who understands you have to come out with the toughest possible position, then you can negotiate down from there. but he needs to get the attention of mexico and el salvador, honduras and also guatemala. i think that is what he's seeking to do. connell: you think it's working? to your point, if you start at a position like hey, if you guys don't get your act together, i'm going to close down the entire border, it does certainly get people's attention. in some cases, that was the leadership, say, in the state of texas, senator ted cruz and cornyn and others have come out and said hey, this is not a great idea economically, we should try something else. do you think just saying that has led to progress?
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>> well, the thing is politically, it may not seem a great idea to politicians but the thing about president donald trump is that he has -- he's given himself credibility and validity in the fact he will back up some of these tough positions if people don't believe he will do it. so now he's into the mindset and if you want to call it, in the military we call it the decision cycle of the leaders of countries such as mexico and other countries who could stop this. there's no reason why they are allowing people to transit completely through their country to come into our border and cross illegally, and as well, they are allowing these drug cartels to continue to funnel opioids and things of that nature into our country. connell: he did say that they are starting to make some progress in that regard. i think something along the lines of hey, mexico's starting to stop people and send them back as he put it to the countries where they came from. i know you said you were just down in the area. you see evidence of that or talk to people who have seen some improvement maybe over the last few days?
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>> well, the most important thing that they are concerned about down there is the fact that due to our insane asylum laws and the fact that we have stretched our border patrol and the facilities so thin, that these people are just being released into these local communities. that puts an economic pressure on them, if you want to talk about economic devastation and pressure, whathave you. so the folks down there along the border, they want someone to hear them. they want someone to stand up for them and i think it's a great time for the president to go down to the texas border tomorrow. connell: that's what he's doing tomorrow. secretary nielsen is already there. so in order of kind of priority then, what do you do from here if you are the president and you know you are fighting against the majority at least in the house of representatives set against you on this, it's already been proven it's hard to make progress on all of this, he went back and forth with the resolution to declare an emergency, was shot down, then he vetoed. he kind of knows what he's dealing with. what options does he really have? i know he's made the threats towards mexico but in our own
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country in terms of making progress and changing laws? >> i think the president, his legislative staff should come up with a presidential resolution that could be introduced over there in the house and the senate that talks about changing these asylum laws. that's the most important thing we need to do. furthermore, we need to find out who are the people that are resourcing and supporting these caravans to come up through their native countries, through mexico, and end up at our border. they are being coached. they are being resourced. we need to dry up that funding and resourcing. again, we need to support our border patrol agents and making sure we can give them the resources to be able to prioritize these crossing points and we need to have that barrier, that wall, whatever you want to call it, that funnels people into a better controllable area. connell: we have been following this so we obviously will continue to do so. nice to have you on. thanks for coming on today. >> my pleasure. thank you. connell: okay. let's get back to the markets, because we are waiting on that big meeting in the oval office later today between the vice premier of china, liu he, and the president of the united states, donald trump.
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there has been speculation that we are getting very, very close to some sort of deal between the united states and china. market looks okay. nasdaq is down but the dow is now up by 123. many of the trade-related stocks are driving us higher. we'll be back.
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- and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you. connell: all over number of news alerts. one many them involving herman cain. president trump is indeed expected to name mr. cain to the federal reserve board. something that had been out there last few weeks a few months, maybe a possibility. reporting from "axios" what happened. now we have got confirmmation. yeah, that is the plan, that herman cain, not instead of by the way of steve moore, but in addition to steve moore would be nominated at some point to the federal reserve board. interesting developments. one of many. see you back at 4:00 p.m. eastern with melissa for "after the bell." we'll see how the market closes. in that hour we'll have a big
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meeting in the oval office between the president and the vice premier of china, lead trade he negotiator liu he. that is aarp 4:00 p.m. eastern time. that is "cavuto: coast to coast." i'm connell filling in for neil. here is charles. charles: this is "making money." lot of breaking news. market plea -- meandering ahead of tomorrow's jobs report. profit-taking in the technology area pressuring nasdaq. wall street trying to contain its excitement. many see a trade deal with china betting a boost from president trump with the vice premier at the white house. we will have a preview. shares of tesla sinking, production far below of what

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