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tv   After the Bell  FOX Business  April 8, 2019 4:00pm-5:00pm EDT

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more around future growth and value of that brand. [closing bell rings. liz: i know you like goldman sachs as we head into the financials reporting. bill stone, great to have you on the show. longest win for the s&p 500 eight days in a row. that will do it for the "claman countdown". cheryl: not so much for the dow as the dow is under pressure. investors weigh upcoming earnings uncertainty and u.s. china trade optimism. the dow closing down 84 points settling as we speak. that is off session lows. we were down 178 points earlier today. the nasdaq, new 2018 high. s&p 500 fighting for gains in the final minutes of trading. if the s&p end up looks like it is going to, that is the longest winning streak in a year-and-a-half. hello, everybody, i'm cheryl casone i'm in for melissa francis day, i'm connell mcshane.
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welcome to "after the bell." we'll have more on big market movers we're looking at. here is what is new this hour. ♪ there are breaking developments in the college admissions scandal. get listty huffman, one of the dozens of parents caught up in the scheme giving her plea. maybe the it helps her avoid jail time. a tougher direction at the border. massive overhaul at the department of homeland security. the outgoing dhs chief, kirstjen nielsen first public comments since the announcement of her resignation. we'll have that. new details on president trump's new pick to lead that agency. then there is iran striking back. how tehran is retaliating after the trump administration names a powerful arm of the country's military as a terrorist organization. cheryl: we have fox business team coverage. blake burman standing by at the white house, kristina partsinevelos on the floor of the new york stock exchange. we start with blake.
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sir? reporter: hi, there, cheryl a pretty big shake up at the department of homeland security. the headliner dhs secretary kirstjen nielsen officially leaving that capacity on wednesday, resigning over the weekend a couple days after appearing with president trump at the border. the white house would not say whether or not nielsen potentially took issue with the president's thoughts as it relates to family separations at the border but on her way out nielsen was complimentary of her old boss. >> i share the president's goal of securing the border. i will continue to support all efforts to address the humanitarian and security crisis on the border. other than that, i'm on my way to keep doing what i can for the next few days. reporter: she will be replaced at least temporarily by kevin mcaleenan who is head of customs and border protection. we're learning the head of the united states secret service, tex alles, james murray, career
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officer in charge of details will be taking over. remember, cheryl and connell, thursday the president withdrew nomination of who he wanted to put in place at least at the time to run i.c.e. the department of homeland security which oversees the president's signature issue, that being the wall and border security. the president making a host of changes at the top level at dhs. back to you. cheryl: big changes announced. blake burman, thank you. to the markets, boeing dragging on the dow again. kristina, take it away. >> down almost four 1/2 points. we're seeing several reasons why boeing is weighing heavily on the dow. the company announced monthly production cuts going from 52 planes originally, these are the 737s. now they are making 42 planes. a lot has to do with the software fixes they're still putting in place. another reason you're seeing a downward trend with boeing today is there was a note from
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bank of america coming out,down grading the stock. originally had a buy rating. now a neutral rating. a price target of $420. last but not least, american airlines over the weekend announced they will ground their 737 max planes longer than anticipated, up until june 5th. they have 90 planes. if you have a flight on american airlines it could affect you. this could have trickle effect on a lot of airlines. southwest down 2 1/2%. raymond james put out a note that highlighting the fact that southwest has a lot of boeing 737 jets citing concern that a lot of airlines will be hit in the peak summer season because they can't use the 737 planes. i will remind the audience latest we know from boeing there was a connection between those two crashes, the ethiopian airlines and the lion air. they had to do with the software failing. there is a connection.
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they're still working on the fixes. back to you guys. connell: kristina we take right to the market panel. jack hough at baron's senior editor and scott martin, kingsview, fox news contributor. boeing tackle that first that is really the reason kristina said the dow was down. the market looked pretty good. how concerned should we be in your view about boeing's long-term prospects at this point? >> long term i don't think it is too concerning. i think they will fix the problem as many airplane makers have done in the past with other issues. the short-term is concerning. this is especially a stock that rebounded nicely from the lows in the 360s last couple weeks based on the fix supposedly colling kristina's comment is not here yet. to me there is an entry point with boeing at some point. we've seen issues like this create opportunities for investors maybe not today, tomorrow, but in a week or so. connell: broader market jack
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around highs of the year as we've been talking about. next we go into the earnings season with the big test. journal wrote about it. number of companies come out with earnings. we'll test the rally. will we pass? >> we will pass. there is no uncertainty. there is certainty earnings will stink. last estimate first quarter will decline 4% from a year ago. people are not seeing earnings decline even with upside surprises we might get, we might be negative 1%. however the most powerful force in the financial universe is interest rates. there is better than even odds of a fed cut to the end of the year according to futures market. there is still nothing better for your money than stock. earnings stink but but stock prices move higher. cheryl: apple, stock closing above $200 a share. there were doubts about apple especially for the rest of the year we didn't have any new news
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and ipad would not be in the pipeline but looks now investors are getting back in apple. what do you think? >> there is plenty of room for the company to eke out growth long term. it has a huge install base. now it is customers are not going nowhere. they might not have upgraded to the last phone. every phone they don't upgrade is pent-up demand for the next one. eventually get more in service revenue from the customers. a big note about morgan stanley, apple becoming a new health care player. tons of new money to be made there. i'm not worried about apple long term. cheryl: scott, some are worried about apple they're putting so of money behind the services business. there is competition from television, samsung, even wireless carriers are giving apple a run for this money with other devices. with about the services business, is that where you put your money? >> as far as apple goes for sure, cheryl. that hit it. that is the area apple will
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improve upon. they passed spotify in paid subscribers now which they were way behind a few weeks and months ago. that is a big-time upset. the likes we saw last week in the ncaa tournament like texas tech beat gonzaga. i got texas tech tonight by the way. cheryl: oh, yeah,. >> apple tv plus they announced a few days ago, that was very impressive, apple credit cards all the services coming out make apple not just a hardware company. cheryl: baylor ladies won it yesterday. now we're looking for texas. connell: if the game is half as good as women's game. that was a great game. may not live up to night. new fallout from the shake up in homeland security. democratic leaders taking a victory lap of sorts after kirstjen nielsen announced she is leaving. what could this mean for president trump's efforts to secure the border? we'll be talking to dan henninger from "the wall street journal" next.
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cheryl: new fallout from the cheating elite. actress felicity huffman is set to plead guilty in the college admissions scam. that is up next. connell: iran revolutionary guard was designated as a foreign terrorist organization. now iran has a response with a branding of its own. ♪ numbers to examine investment opportunities firsthand. like a biotech firm that engineers a patient's own cells to fight cancer. this is strategic investing. because your investments deserve the full story. t. rowe price. invest with confidence.
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connell: we do have breaking news out of the justice department, 13 parents including big name felicity huffman and a college coach pleaded guilty to biggest college scandal in this country. susan. >> operation varsity blues, felicity huffman of "desperate housewives" pleading guilty along with 12 others in the college admissions scandal. in a statement, bring it up for felicity huffman she is pleading guilty. said she is pleading guilty by the charge brought by the u.s. attorney's office. i'm full acceptance of my guilt, with deep regret and shame over what i have done. i accept responsibility for my consequences. she is ashamed of the pain she caused her daughter, my family, my friends, my colleagues and
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educational community. felicity huffman was released on bail of 250,000 as she awaited trial. this is her arriving in boston last week for the pretrial in this case. she along with 50 others have been charged, basically this is a wide-stemming case that includes 700 in total. now felicity huffman apparently allegedly she paid $15,000 to, in a charitable deductible donation to rick singer who is alleged to be at the center of this entire college admissions ring. for someone else to take the test for her daughter in the s.a.t.s. now we have felicity huffman, also lori loughlin is, two of the actresses that are indicated and indicted in this case. lori loughlin has not pleaded guilty just yet however there are reports about her daughter, olivia jade who used to have contracts with tresemme, those have now ended. these accusations say that olivia jade may or may not have known about whether or not her parents actually bribed those at
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usc to get her into the school. as for felicity huffman said her daughter did not, was not aware of any of these engagements shall we say with rick singer and charitable donations. connell: that is interesting. we wondered about that with some of the children. her child she says had no clue. is it. reporter: right. connell: thank you, susan li. we'll have more on the story i'm sure. cheryl. cheryl: a renewed immigration push we have to tell you about, kirstjen nielsen's exit from the department of homeland security with president trump's growing frustration at southern border. what will the shakeup mean for his agenda? dan henninger from the "wall street journal." also a fox news contributor. what is your reaction to the departure of nielsen? some say this was sudden. others say this was brewing, the battle between trump and nielsen for months? >> it has been brewing for a long time and i think really kirstjen nielsen should be looked upon the fall guy for a problem that neither the
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administration nor the congress really adequately addressed. they will now try -- apparently her acting successor kevin mcaleenan head of border security knows as much about it as she does, very smart guy, but these people are being overwhelmed by numbers hitting the borders. those people are coming to the borders, children unaccompanied by adults mainly because of the asylum laws inside of the united states. the asylum laws that have been set by a series of decisions by american judges that created incentives for overwhelming number, up to 100,000 people a month have come to the united states. that is the approximate issue, cheryl. that is the issue that neither the president nor the congress is addressing. only they can solve this problem jointly. cheryl: that means, do you think mcaleenan will be effective in this new role? this is as you mentioned we are really at crisis capacity in amount of families that have
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been flooding the southern border has increased exponentially because of the asylum rules that were put in place. that is something that the president has been frustrated with? >> no, honestly i do not think kevin mcaleenan will do a much better job than kirstjen nielsen to deal with the volume of people. they're coming because of incentive to get across the border, flood the border, get access to the u.s. asylum system. at which point the system simply breaks down. and people like kevin mcaleenan or kirstjen nielsen said, look, if the congress and president could address the asylum law issue we could reduce incentives, reduce the number of people coming towards that border to a manageable number. i think our border patrol people and professionals we have down there can handle substantially reduced number people, then the political system could deal with the larger immigration issues that democrats and republicans
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keep fighting over. cheryl: what you're saying about mcaleenan, some said they felt he would be stronger choice and take a tougher stand, excuse me, against particularly asylum-seekers you're talking about. at the same time what do you think it does to president trump's agenda because you're not sure mcaleenan will be anymore effective than nielsen was handling this. >> he will keep talking about it. he can't build a wall fast enough to deal with the volumes of people. i have spoken to kevin mcaleenan. i don't think there is anybody better to address issues occurring down on the border right now. i'm saying, cheryl, even kevin mcaleenan cannot handle volume of people coming in right now. cheryl: it's a tough, tough job. he is taking it on. dan, thank you for being here. great to see you. connell: all right, he has been indisputable front-runner now, senator bernie sanders already
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leading in the 2020 race among democrats as far as fund-raising goes. critics fear his socialist agenda especially on economics could divide the democratic pace. we'll talk about whether they are right on that. boy what a story. security concerns at mar-a-lago that chinese woman accused of bluffing her way past a number of checkpoints made an appearancance in federal court. we have the story and why prosecutors believe she is a big-time flight rick. want to ma? 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. ♪
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connell: searching for answers. the chinese woman arrested at president trump's mar-a-lago resort had thumb drive containing malware and number of other items appeared in court. edward lawrence live in d.c. to sum that up for us. reporter: connell, the chinese citizen who tried to get into mar-a-lago had a significant amount of spy tech according to the secret service. in southern florida, jeong faces
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charges that she unlawfully entered mar-a-lago last month and made false statements to secret service. agents said she had $8,000 in cash in a hotel room, nine cell phones, five usb drives, five sim cards, signal detector to find hidden cameras. on one of the usb drives they found malware. there is open investigation by the fbi if china is trying to get at president trump through his private golf club mar-a-lago. fbi is trying to figure out if this woman is chinese spy or someone connected to china and tricked to spy for the chinese. she is being held without bond right now. continue detention hearing set for next month april 15th. prosecutors say she has significant amount of wealth in china, no ties to the united states. they do believe she is a flight risk. connell. connell: you think. wow. a lot going on there. cheryl? cheryl: turnaround for saudi
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aramco. the world's largest oil company received $60 billion in investor orders for its closely-watched debut bond sale that far outstrips the 10 billion-dollar target by the saudi oil giant. strong demand for the new bonds comments after killing of columnist jamal khashoggi by saudi agents which led to international condemnation for the kingdom. connell: yes, it did. president trump announced the part of the iranian military as a foreign terrorist organization. that is how the day started. now they retolerated. we have new details on that. cheryl: democrats push for the president's tax returns. he is responding. is this move purely political? connell: socialism becoming a key theme for the race of the white house. this trend on the left, already shaping the 2020 election. we'll talk about it next. >> we do have a small crisis of capitalism. what i mean by that is, that the rules of engagement for a
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front-runner in the 2020 democratic race for nomination for president. if you look at numbers he is not bested former president joe biden who is not officially in the race. if you look at six months of polling, biden has the lead. "real clear politics" polling average has biden, 28-8, and sanders at 21-8. comfortable lead over warren, booker, the rest of them. putting label on a candidate even with the numbers. fox political analyst gianna caldwell joins us, former advisor to the hillary clinton campaign antjuan seawright. this label, the indisputable front-runner among the democrats, is that something you would use to describe bernie sanders? >> i don't know who is over at the ap nowadays, we have 99 problems in the democratic party, but bernie sanders being front-runner ain't one. the reality, bernie sanders while he invoice some support you can't deny that.
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he is not the clear front-runner. anyone will tell you that we have a clear front-runner, probably lying to you. polls indicate vice president biden enjoys a large portion of the support if election were today, however this is my fourth democratic primary i participate in as consultant, i can tell you, things change, mood of the party changes, so the front-runner today can't be a from the runner a year from now. connell: i would love to go into the 99 problems get them one-on-one with you. but with time constraints, we're looking at tale of tape two old guys in the race are outpolling everybody else, bernie and biden. bernie sanders generates a lot of money. we talked about it last week, 18 million in the first quarter. is the indisputable front-runner for democrats? how do you see it? >> if we look what is being communicated through the politics of today, look at policies in which the democrats are offering up i would say he
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is the undisputed front-runner. reminded from a republican slogan from 1950, liberty versus socialism. we're back here this day. i'm honored to have the conversation with antwan, we had same top i can, he said the social i was not the big topic in the democratic party. what we're finding out is, that is absolutely not true. connell: that is how the president -- >> it is not. connell: he wants it to be that, socialism versus capitalism. what do you mean it is not. >> that is what it is. where it has become. this is the only thing we're talking about. think about the fact that democrats are using these talking points on reparations and voting from jail which is something bernie sanders is offered up as well for felons, got to know this is were the conversation is leading. he is the front-runner of the democratic party at this time. connell: quickly, antwan. >> just with all due respect you say it, some on the right side of the political aisle don't
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make it true. we have robust conversations, no no. we're having robust conversations in our party. that is what a primary is. very similar to what your party. >> we're not having conversations. >> that is not me, translate to the party being the party of socialism. in fact, pelosi, at the state of the union stood up when donald trump -- donald trump said america will never be the party of socialism. pelosi stood up and clapped. you have candidates denounce socialism. connell: i'm going to interrupt for one second. you guys stay with us for this, we'll come back to you in a moment. it brings up exactly what these guys are talking about, 2020 democratsic candidates going around the country campaigning one by one, there is this theme they are emerging whether they support socialism i'm not sure, taking aim at capitalism, going after capitalism as it stands now in the country. with that in mind, hillary vaughn is live on capitol hill with latest on all this.
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reporter: hey, connell. capitalism is the new dirty word for democrats running for president. over the weekend 2020 contenders blamed capitalism for leading the country down a slippery slope toward a oligarchky. two-time presidential candidate bernie sanders is self-declared socialist democrat. it is no surprise he is taking aim at capitalism as he did during his campaign in 2016. other candidates in the race, thinking about getting into the race are chiming in too. presidential candidate, possible presidential candidate mayor pete buttigieg said corporate america he thinks wields too much power, if left unchecked could be a big problem. >> if you want to see what happens when you have capitalism without democracy, you can see it very quickly in russia. it turns into the crony capitalism. that turns into oligarchky. >> we're in the direction of oligarchky and together we are going to turn that around. reporter: former starbucks ceo
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and billionaire howard schultz is thinking about getting in the race. he told fox business's liz claman an hour ago he see as small crisis happening with capitalism. his criticism the candidates in the race right now don't have the experience they need to actually solve the problem. >> all these politicians who are crying about capitalism, have they ever made a payroll? have they ever worked in a business? what have they done other than criticize the system? reporter: schultz isn't the only billionaire also criticizing capitalism. billionaire investor ray dalio told "60 minutes" he says there is big problem with capitalism. he says it needs be to remodeled for everyone. connell. connell: hillary vaughn on capitol hill. bring gianno and antwan to react to that. it is slightly different conversation we were having. not to say we're for socialism, if you're ray dalio, the hedge fund manager, with howard
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schultz, the current state of american capitalism it is not working right. i wonder if the president might be careful what he wishes for if he wants this battle, socialism that type of capitalism. what do you think of the way hillary put that together. >> well i'm not familiar with any data that supports the conclusion that there is something wrong with capitalism. the truth of the matter is capitalism has been a system been in place quite a long time. done well. created companies and created a large middle class. when we think about -- connell: the data usually used is rich getting too rich. inequality, the gaps in inequality. >> so rich getting rich, meaning if i put, antwan and i are both business owners f we put our lives on the line, possibly lose out and risk everything to win why should we be penalized for that? i don't see anything wrong with that? connell: antwan? >> the way i see it we have to make constant improvements. no one can argue there is system of the have, versus have-nots in this country. what you hear from a lot of democratic candidates from a
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policy standpoint, even from talking point standpoint we have to do something to up lift and improve and expand what the middle class look like, make sure people in country not working two jobs to live in poverty. connell: it is that balance, politically, saying that, yeah i'm a capitalist, but, as opposed to but i'm for socialism, which probably doesn't sell. we'll continue this at later date. >> there is big divide at this point. connell: you're right, maybe tomorrow. we have a discussion every day. cheryl: bring them both back. that was great. all right. putting maximum pressure on iran. the white house taking an unprecedented step against the country's islamic revolutionary ily guard now iran is responding. rich edson at the white house. reporter: united states is recognizing a foreign government
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as a terrorist organization. the united states is allowed to charge any country or enemy that provides support to the irg. effectiveness will take place in one week. that is when it goes into effect. secretary of state mike pompeo announcing the policy change says it is long overdue. >> the nation is a direct response to an outlaw regime and should surprise no one. for 40 years the islamic republic's revolutionary guard corps axetively engaged in terrorism, created, supported, directed other terrorist groups. the irgc masquerades as a legitimate military organization but none of us should be fooled. reporter: the irgc has a force of 100,000, an army, navy, air force. it administers iran ballistic missile program, manages business, its black market enterprises and organizes militant groups across the middle east. multiple u.s. defense officials told fox news that some senior
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pentagon leaders are uneasy with the designation over concerns about putting american forces in the region at risk in retaliation. iran announced some set of retaliation saying it now considers the u.s. central command as a supporter of terrorism. though administration officials here say one of the best ways to try to safeguard american forces in the middle east is to try to cut off the funding and isolate the irgc. back to you. cheryl: rich edson. rich, thank you. connell: in a moment israel is getting ready to head to the polls. so we'll talk about this and whether prime minister benjamin netanyahu can hold on to his title. ambassador dan gillerman, former israeli ambassador to the united nations is here to respond next. >> i stood with prime minister netanyahu. benjamin netanyahu. [applause] how is the race going by the way? who is it? who is going to win the? tell me. i don't know.
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is israelis heading to the polls to decide their next leader as four-term, prime minister, benjamin netanyahu will be facing off against left-leaning benny gantz. reporter: less than 24 hours away the country is expecting a tight race between israeli prime minister benjamin netanyahu and his main opponent benny gantz. since the campaign was launched the two rivals exchanged insults, gone through numerous scandals and loyalties to gain leverage. they are meeting supporters and netanyahu went through israel's biggest market in jerusalem talking to voters. the attorney general announced that prime minister benjamin netanyahu would be indicted on corruption charges. in weeks that follow, that papers followed the gantz's
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phone hacked by iranians. one key factor to look at though heading into tuesday, is the influence of u.s. support in these elections. as many view the vote as reverend dull on the prime minister. netanyahu has campaigned heavily on the coattails of president trump and him visiting region. with the u.s. embassy moving to jerusalem and putting out an ad war where he was praised directly by president trump. despite his support for netanyahu president trump did not endorse either candidate speaking this weekend at the republican jewish coalition in las vegas. >> i think it is going to be close. i think it is going to be close. two good people. two good people. i stood with your prime minister, at the white house israeli sovereignty over the golan heights. [cheering] reporter: with the golan heights being recognized as part of israel by the u.s. just days ago this was clear foreign policy nod by president trump towards israeli prime minister netanyahu
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he would like to see him remain in this position. connell? connell: we'll be watching. trey yingst live in jerusalem. cheryl: we have former ambassador to united states from israel, dan gillerman. is that enough support to get him another victory as prime minister? >> well certainly the very good relationship, even personal relationship, between the prime minister and president trump is great asset for netanyahu and indeed a great asset for israel however israeli-american history shows that whoever the leader of israel is, that very special relationship built on values and history and common interests prevails. much i think the prime minister enjoyed the support of the president. the president's recognition as israel, jerusalem as israel's
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capital, moving the american embassy to jerusalem, recognizing our sovereignty, over the golan heights, revoking the nuclear treaty with iran. these are all big achievements by the prime minister. i'm sure they will give him, if not an advantage, at least very, very strong points. cheryl: despite the corruption, despite the corruption allegations our reporter mentioned out of just i want you to listen to something that happened here in this country over the weekend, has a lot of jewish americans, frankly a lot of americans offended. listen to beto o'rourke. he is running for the democratic nod for the presidential nomination here in this country. listen to what he said about bibi netanyahu. >> the u.s.-israel relationship is one of the most important relationships that we have on the planet and that relationship, if it is to be successful must transcend partisanship in the united states and must be able to
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transcend a prime minister who is racist as he warns about arabs coming to the polls. cheryl: what is your reaction to him calling justin bieber netanyahu -- bibi netanyahu racist. >> i don't think prime minister netanyahu is a racist. i think he has been very vocal on human rights and both on gender and on many other issues. he met only yesterday with a big delegation of the lgbtq community in israel. israel is very liberal and democratic society. tel aviv is probably one of the friendliest lgbt cities in the world. israel is indeed a free society. prime minister is accused of many things, being racist is certainly not one of them. cheryl: what do you think it means if bibi netanyahu wins another term again? what would it mean for his legacy? he would surpass in his
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leadership role, ben-gurion, founding father of israel, a founding father of israel? that would be an incredible moment for bibi netanyahu that would mean going forward? because we know the election is tomorrow? >> well, if bibi netanyahu wins the election and you know, just winning the election is not enough because unfortunately, unlike you, we don't have a two party system. we have, i don't know whether you believe this, 47 different parties trying to get into the israeli parliament. out of which probably 15 or 16 may very well get in. bibi netanyahu if he is successful may get quarter of the vote. he would have to small a coalition with splinter, small parties which will blackmail him, make demands i'm not sure he will be able to meet. if he does form a coalition, i
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think and i hope, because of the point you made, because he has been prime minister for 13 years, it is his bar mitzvah prime ministership, he should, i hope he will, think of the future, think of making a legacy, think of making history, rather than just surviving in office. but you know there is also a chance that general gantz will win the elections. we'll have to wait and see how this, how this drama unfolds. i don't think we'll even know tomorrow. it will be many weeks before netanyahu manages to form a coalition. cheryl: actually i have read some of the coverage, ambassador, he seems to have a good chance to form a government. so we shall see. so much it watch. thank you, ambassador gillerman for being here. connell: man, i'm still caught up on the 47 different parties. enough trouble here with basically two. bracing for the hot seat. ceos in so biggest u.s. banks
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set to face tough questions from the house financial services committee and that committee includes chairwoman maxine waters. that is coming up later in the week. we'll look what the democratic push can mean for the industry as a whole. we do have a special date planned for you thistures. so special i took a picture of myself and put it on the screen. my half of "after the bell" will be live from washington. we'll do the show live from the white house. have interview with christine lagarde, of the imf and kevin hassett, white house council of economic advisors chairman, 4:00 p.m. eastern thursday on "after the bell." don't miss it. ♪ today's goals... ...all while helping you to and through retirement. um, you guys are just going for a week, right? yeah! that's right. can you help with these? oh... um, we're more of the plan,
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connell: the battle to see president trump's tax returns has been escalating in washington. democrats now are trying a new strategy. the white house, though, pushing back. >> you believe democrats will never see the president's tax returns? >> oh, no, never.
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nor should they. keep in mind that that's an issue that was already litigated during the election. voters knew the president could have given his tax returns, they knew that he didn't and they elected him anyway which of course is what drives the democrats crazy. connell: we are joined by the ranking republican on the house financial services committee, they have a big hearing involving bank ceos later in the week we will talk about. congressman patrick mchenry. first to this issue of the tax returns. i said it's really been kind of a big story here the last week or so in washington. are we going to see them, should we see them? >> well, they have been talking about it for three years. i don't think we're going to see them. i agree with mick mulvaney. i think the side show of democrat politics on capitol hill is much about the past and not about looking for the future. we should be talking about the implementation of tax reform. we should be talking about regulatory reform. we should be talking about educational choices and opportunities to keep our economy growing. instead they are talking about one person's tax filings which
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was discussed repeatedly in the republican primaries, it was endless with the hillary clinton campaign and it's much ado about nothing. connell: do you feel differently now than you did then? in other words, did you think that then candidate trump should have come out with his tax returns and now, because he hasn't, the issue is what it is, that it's settled and just political? have you changed your mind? >> no. it's all political. connell: even then, though, during the campaign, he shouldn't have released them? >> no, it was political then. the president complied with the law. if we want to have a requirement that anyone running for president needs to release their tax reform -- their tax forms, then we need to have a law to require it. there is no law. the president fully complied with the financial holdings and disclosures that we require and have required for the last 40 years to run for president. connell: you're right. it's an unwritten rule, so to speak. it's up to the voters if they care or not.
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>> the voters said they didn't care and elected donald trump president of the united states. connell: whether he releases them next time, we'll see. we'll see how it settles in. i want to talk about this hearing. we have had you on a couple times ahead of some of these hearings. this particular case, you got a lot of big-time ceos coming up. we wonder you guys, is the committee going to go after them. what's this going to be like later in the week? what's the purpose? >> i think it's going to be interesting. i think we will see some buyer's remorse among committee democrats. they constructed this system because of their creation under dodd-frank, of partisan democrat change to banking regulation. that has now been in place for nearly ten years, so the big have gotten bigger and the small have either consolidated or fallen apart. today we have fewer banks, fewer bank choices, as a result of regulatory -- the regulatory environment. we have tried to lift that burden a little bit so we have more competition, more consumer choices, but i think what we see
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here is a great deal of misunderstanding about who put in place dodd-frank and a run by liberals and progressives now to try to undo what they have supported and now they are trying to pass on radical plans. connell: real quick, unfortunately we are just about out of time at the top of the hour, is there one thing you want to see changed, that you are personally advocating for in banking? >> i think we need more competition, more consumer choices. and more access so that smartphones can be a more ready part of our banking ecosystem. connell: fair enough. thank you for keeping that answer short. apologize for having to wrap it up. good to see you again. appreciate it. interesting stuff. especially when maxine waters gets involved, we'll see. one thing, cheryl demands this, when she stays late, you got to promote my show if you want me to stay until 4:00 in the afternoon. i'm kidding. but 5:00 a.m. tomorrow and every weekday, check out cheryl casone
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and lauren simonetti. great way to start the day. cheryl: any time you want to join us at 5:00 a.m. in the morning, come on set. connell: thank you for doing this today. appreciate it. always good to see you. over to "bulls & bears" with david asman and the crew. capitalism needs to be reformed. it doesn't need to be abandoned. >> we can call it a wealth gap, we can call it an income gap. if i was the president of the united states, it has to come from the top, what i would do is recognize that this is a national emergency. david: the fight about capitalism continues. now with the founder of the most successful hedge fund in the world, ray dalio, declaring the country's wealth gap a national emergency. and more 2020 democrat hopefuls are now jumping on this wagon. former starbucks ceo and potential independent candidate howard schultz weighing in on this issue this afternoon with liz claman. we

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