larry kudlow will be with us as well. we heard from president trump about the failure of the bill. >> a very different tone here from president trump in his first public comments about the failure of the health care bill on capitol hill. the president going out of his way tonight place any blame on republicans. he said i won't speak badly about anyone inside the party. did he speak badly about democrats saying that he thinks nancy pelosi and chuck schumer are the real losers here today. even at the same time he said that, he said he homes the democrats will come around and work republicans to pass some kinds of reform to obamacare no, time soon though. he thinks obamacare needs run its course and fail before democrats will come around. and then he said he's willing to work bipart sandal legislation. he said he was surprised by some of what he saw in this process. >> we were very close. a very tight margin. we had no democrat support. no votes from the democrats. they weren't going to give as you single vote so that's a ve

joining us is larry kudlow.aid about nafta, also which we were already getting into, but he kind of brought up the deficit a lot. >> the trade deficit. >> yeah. >> maybe it was the trade deficit. my understanding it was the deficit and how we would pay for corporate tax reform too. >> you're right on both counts. what he said on nafta and the mexican peso i think is quite sensible and agree 100%. before i voice my disagreement with him on trade, i just want to say that wilbur ross and hillary are dear personal friends and i love them both. >> talking about hillary ross? >> hillary, but she's a great woman, threw a great book party, can't say enough good about them. we disagree on trade. and what i will say at the top is this, you can fix nafta, that's a good one-on-one thing but i am strongly opposed to the border equalization tax and we've talked about that and there's no news there. i was glad to see that secretary ross said that president trump has not made a decision on that. glad to see that. i can also --

. >> we're going to talk to larry kudlow about this in a moment, but steve liesman's at hq. that speech working in concert with a bunch of other data points around the world. >> yeah. well, you know, carl, here's what i think we learned about the market in the past 24 hours. it's okay eating a few more brussel sprouts when it knows there are some big, large slices of chocolate cake about to be served. the brussel sprouts are fed rate hikes. before president trump took to the lectern and congress, federal officials seriously looked at a rate hike. but that was offset and then some by a president promising historic tax reform, a $1 trillion infrastructure bill, and sounded far more moderate on trade and immigration than he has in the past. >> i believe strongly in free trade, but it also has to be fair trade. it's been a long time since we had fair trade. >> and let's note that the president did not mention punitive import tariffs or the controversial border adjustment tax. he also didn't say he would lower the corporate tax rate to 15%, only that he'd lower it, and that may b

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larry kudlow joining us.iate it. >> thanks for having us there. >>> we'll find the cbo number next week. there is increased deployment in the defense sector as the president promises to beef up the military in general and the navy in particular. kate rogers has more on pass ka gul la mississippi. huntington ingalls ship builder. >> reporter: president trump is vowing to rebuild the military in a really big way. here at huntington ingalls which is the navy's largest ship builder they're recruiting them by the millions. they pick up after years of slow growth due to the government sequester. if donald trump keeps his pledge they expect more business and more jobs to follow. >> it will be one of the greatest military buildups in american history. >> reporter: from land to the sea to the sky president trump is promising to beef up american military to the tune of $603 billion. that marks a $54 billion budgetary boost in defense spending. talk of a potential boost has the industry feeling optimistic. >> if you loo

. >> larry kudlow. >> come on, clap. >> we've got breaking news. got to get to john harwood in d.c. >> i want to pass on two new pieces of information. just got a text from a house freedom caucus source who i had asked whether or not there was a chance this bill will pass tomorrow. you know, there's been talk about a vote in the morning. and the source responded nope, no way. so, again, no way in the view of the freedom caucus source will this pass tomorrow. they have been the chief obstacle to the passage of the bill in the house. secondly, we've just gotten a new letter from the congressional budget office estimating the effects of the revised bill. not the version that members are talking about now, but according to the revisions that were released a couple of days ago. they said first of all, no change in their estimates of coverage, 24 million fewer americans would have coverage by 2026 than under current law. that reduction is the same. but there is less deficit reduction in this new version of the bill according to these only about 150 billi

for example, larry kudlow last night tweets this, sources close to administration telling me commerceecretary wilbur ross now opposes border adjustment tax. very good news. later on, the secretary himself responds to larry, not true. i've taken no position on border adjustment tax. so that remains opaque. >> geez, this is impossible. that's why tepper was so refreshing. he said stop trying to figure it out. go make money. that was tepper's view. it was like stop it. you can't fathom this stuff. so let's go buy some allergan. >> you like the balls in the air, right? >> yes. >> all this health care drama about gop opposition you don't mind? >> push it out. i'm fine. push it out. i don't want people to panic. i was studying 2011 last night, i don't know why. wife was asleep. studying 2011. 2011 was the year everyone fearful, fearful, fearful, government's dpoing going to bl up, s&p downgrades, bingo, had a buy. >> also had -- >> well, that was mr. idiot -- it's okay to call people out twice in a recession it's okay. we thought hoover was an idiot. it's okay. i look at the situation and i

larry kudlow had this to say on squawk alley. >> i am told late yesterday afternoon, might have been early this morning. a meeting of conservative activists with white house representatives, we're told that the white house does in fact favor the border adjustment. the president went to the water's end. didn't quite measure it. through legislative games, they're going to allow votes for and against. but it will be part of deal. >> we saw a slight reaction on those comments. how soon can investors expect to see anything about this? is it too soon to step in for clarity? >> you think you can buy retail. i think it has been thrown out. the only caveat is yesterday with target, it really gave a whole new leg of the cell side steam. so i think you can dip your toe into a lot of these things. we don't have specifics. president trump came out and said he wasn't for it. then we know who is for it. we know about speaker of the house is for it. and we know they might do it. >> and the way, what you think will be or efk. i think a lot of these retail names can get over. playing it the same way f

larry kudlow, cnbc senior contributor.tor in something like consumer confidence which can be a very flighty measure. it's one of the soft numbers. >> you've seen it. home builders. maybe part of it is the election of trump. who knows. people are out there. there's some spending going on. what's missing, and i thought stanley fischer had it right on, what's missing is investment, business investment, the single most important part of the economy in my judgment and, behind that what's missing is productivity. and i don't think that's a monetary issue at all. >> it's a tax issue. >> that is right. what you need to do is what's on the board. repatriati repatriation, get the cash over here. slash the business tax rates for large and small companies and immediate expensing so you'll get your investment triggered right away. it can be done. charts show productivity can respond nice ly inside five years. >> speaker ryan and the administration lost on health care, a reduction in the capital-gains tax went with that loss that would

vehemently with that. >> larry kudlow and paul krugman. when do you see them together on the same issue? >> i think your second point is super important when we still see manufacturers with all of this optimism. part of the executive order is looking at trade abuses, put aside the trade deficit. we hear from ceos behind closed doors, happy about the shift in attitude. >> okay. >> that they're going to be tough about those. >> the things that matter that take away manufacturing jobs. in the first order 80% to 87% is automation. in the second order, things like lower labor costs overseas. in the third place, you might put something like the idea that they have that we have environmental rules and labor rules and they don't, something, by the way, tpp was going to address, which we're not now going to address. and then you want to put the actual administrative things, it might be not even on the list. >> the thing i hear the most, the greatest frustration, is, for the most part, chinese companies can invest here in almost anything they want.

larry kudlow. >>> let's get to brian in houston with what's coming up. brian?> melissa, thank you. coming up, what does the largest company in mexico think of a proposed border adjustment tax? good question. we'll get an answer with the ceo of pemex joins us next. >>> the biggest company in mexico is pemex, the national oil company. perhaps no company in mexico would be as impacted by border tax as pemex. let's welcome in ceo of pemex, jose gonzalez anaya. thank you for joining us. >> thank you very much. >> do you think a border adjustment tax will happen? if it does, what does it mean for pemex? >> i can't say whether it will happen or not. what i can say is that pemex imports about half a million barrels of gasoline every day. from the united states. mostly from texas. we export about a million barrels of oil, mostly to texas. and we also -- >> for now. >> yeah. we also import about 4 bcfs of natural gas. this is a win/win situation both for pemex and for the united states. in particular, southern texas. >> michelle is a border adjustment tax expert. she kno

let's bring in cnbc senior contributor larry kudlow.s in the last 24 hour, the congressional budget office, cbo cops out and says the new health care bill will cost the government a lot less money but it's going to ensure far fewer people. a lot hate the cbo. how do you feel. >> i don't hate the cbo. it would be unwise for the white house or anybody else to launch some kind of jihad against the cbo. they do the best they k i don't happen to agree with their models. one thing by the way they're scoring capital gains tax cut as $158 billion loss. >> in revenue. >> down through the years if you lower the cap gains tax rate you get more investment and higher revenues and this one we're lowering it back to 20% from 23.8%. maybe back to 15%. okay, that drives me crazy. they don't have an incentive model. let's go back to the basics here. the cbo and a lot of other people, we've never done this before. they had no clue about aca. >> the american health care act under obama. >> they never understood why the premiums had to shoot up or understan

larry kudlow will be with us as well.ard from president trump about the failure of the bill. >> a very different tone here from president trump in his first public comments about the failure of the health care bill onol

at the network we love larry kudlow here.is supply side garbage that never worked 30 years ago and it's not going to -- hold on, hold on. >> in the reagan administration to the biggest boom we've ever seen in the stock market. i'm tired of you rewriting history. they are the facts. >> people like him coming on talking about it, we didn't have a lot of time to talk about this, but they're supporting a guy that they can't get behind. he said everything he had in getting the bill passed. it was an outright lie. the guy didn't. i think his top adviser wanted to see ryan fail. they knew exactly what the freedom caucus were going to do. here's the thing, it is a market shell. this is what the market has been trading on now. we had the politico guy and axio guy talk about the market volatility. >> the people are too complacent. there is a wall of worry, steve. >> where were you in the opening of the show, you said the gdp looks great. there's no wall. do you think the markets are going up or down? you roll your eyes. i'm trying to u

larry kudlow, austin, i don't know what was going on on twitter, but i thought this was spirited andt this was friendly, and i thank you both for taking a few minutes on this friday. >> thank you. >> thank you. >>> okay, quick break here on the other side. the affordable care act could be on the verge of repeal. it's popularity though, higher maybe than it's ever been. we're going to take a look back at seven years since the affordable care act was enacted to today. most important number of the day, next. just imagine if all the machines at work were constantly thinking. always on the lookout for patterns and connections to make everything work better. i call it the internet of everything, but it's really the internet of everyday life. ♪ the partnership between dell technologies and sap helps make the promise of the internet of things a reality for our customers. we know how powerful live data can be. we use sap at dell to run everything from finance to procurement to travel expenses. and that's the same kind of live insight we can now start offering to all of our customers. and as w

larry kudlow says that appears to be ahead. you have what the reports were yesterday. is that ryan and ban nan are now on the same page together which seemed to be a significant move. i'm speaking of speaker ryan. >> here's what i would say. a year from now someone is going to write something about this being the common sense presidency. presidency's problems in our trade deals. he knows the trade deals have been uneven for 71 years. to the benefit of the rest of the world that the detriment of the american worker. now he's trying to figure out how to rationalize that and adjustment and brainstorming going on and there's some debate inside the administration and up at the hill of what's going to happen but this is what i love about the president. when he gets in the room and he understands every facet of that issue, he's going to hit the perfect intersection point of getting it right for the american worker and the american people. so i have enormous amount of n confidence in that. we can worry about that today. >> i want to call your attention to the stock market. you

trump signing executive orders on trade ahead of a visit from china's president next week, but larry kudlow are not a bad thing. explaining why after this. and sports fans are d for march madness. ratings booth means for media companies coming up. [pony neighing] what? hey gary. oh. what's with the dog-sized horse?

you if they shelved health care and did what a lot of -- well, some conservatives argued, namely larry kudlow on our show, and focused on tax reform first? do you believe that they put tax reform too far deep in the pile? >> well, i definitely think that focusing on the affordable care act first was a mistake. obama made the same mistake. he focused on health care, and he should have been focusing on job creation after the recession of 2008-'09. trump should have focused on his economic program and put the affordable care act on the back burner, but maybe circumstances dictated that he couldn't set the priorities that way. i definitely think it was a mistake, but it's been made, and now he those deal with it. >> byron, how do you factor in the white house's budget blueprint and the reaction to that on both sides of the aisle, as you look at whether this scenario of president trump becoming more efficient, as you look for that to play out? is this just more of a negotiating stance in an opening round, or do you see something different? >> no, i don't think it -- i mean, i think he really wante

. >> jason, larry kudlow joins us on the set. buckle up for that. t know if you want to start. >> jason is an old friend of mine. it's a pleasure. it's a little hard getting here. >> little late than never. health care, process, what? >> it sounds like i agree with jason the fed. i think they are making the right move here. we've seen a bump up in commodity prices and a bump up in inflation and it may prove to be temporary. i want the fed to normalize, albeit slowly. i guess they are going to start drawing down their balance sheet soon enough. i'm fine with all of that stuff. what i'm not fine with is the logic. you've heard me say this before. i don't think more people working and a little bit higher wages are inflationary. i don't buy that. i never have. i'm not a phillips curve guy but i think this moment is right for them and they'll probably do it a couple more times and what the fed really needs is broadbased corporate income tax cut. it's shocking to hear that from me. that will grow the economy a little faster and led the fed normalize faster

larry kudlow has made that point a lot. stay with us. to have you here. >> thank you. >> if the playing field were level, peter navarro says, we would reclaim lost manufacturing. is he right? >> it's a simple argument. the goal is to bring back domestic manufacturing jobs, they should think bed kags, growth, not restrictions on trade and immigration. >> how about the food supply chain being owned by foreigners? smithfield, jokes about bacon being owned by the chinese and all this. but ultimately is it worrisome if our food supply here is owned by a foreign company. >> the way you just said it, yes, it's very worrisome. the government does have a process for this. you have ways of going about thinking about foreign asset control. there are other ways to reform that. i think the idea of focusing on trade deficits for national security like that, and as presented that way, is a little too simplistic. >> stopped by the u.s. government because they're worried about technology going to china, hurting our national defense but the pigs didn't go

larry kudlow appeared on squawk alley earlier today and said the border adjustment tax is alive and wellerday afternoon or this morning a meeting with white house representatives were told that the white house does, in fact, favor the border adjustment the the president went to the water's edge. didn't quite mention it. but, in fact, inside the white house, the b.a.t. is winning. >> courtney reagan covers retailer and joins us now. this will come as a surprise. >> one of the ceos that met with president trump a couple of weeks ago, and the other members of congress and best buy ceo told me as well as a handful of others on a media call today when he's thinking about the border adjustment tax he said, quote, i think there are a growing number of people in washington that understand that the border adjustment tax is a ricky gamble with potentially devastating consequences for america. if i had to place a personal estimation it would be that the border adjustment tax is not going to happen. >> very interesting because, as larry said just now -- >> yes. >> a lot of people listen to that spee

larry kudlow is here.ighway here at post nine. >> great walk. >> whole other story from the fdr. let me begin with you. what was the most significant thing you think came out of this? >> i thought it was incredible that the first two questions that came from the german reporters were about the potential imposition of a 20% border adjustment tax on imports in particular from germany who has a trade surplus with the united states on their imports and obviously angela merkel, chancellor, is being tasked as being pretty aggressive to president trump as they get into negotiations over economic policy. the president has the advantage of not having actually set a tax policy or a detailed trade policy in any kind of legislative text or policy text yet so she has to combat something that doesn't yet exist which puts him in a powerful position when it comes to negotiating. this is top of mind for german constituents and for angela merkel. she brought it up in a really telling way saying we want to have these negotia

larry kudlow is here. what would reagan do?> it's a great, important question. >> you gave it to me. that's why i'm asking it. >> reagan is a deal maker. trump is a deal maker. the house has to learn to be a deal maker, okay? it's like the gop needs to practice bipartisanship with itself. and reagan had two expressions, if we agree 50% we're not friends or enemies. or give me half love now and the other half later. >> the culture of washington and the culture of the house is not that way anymore, is it? i don't know that we have a lot of people who say if i agree with you half the time, i'm your friend. >> there is an attitude of that. by the way, reagan got 75 democratic votes in the house, run by tip o'neal. that's how good a deal milwaukeer he was. you're right. on the other hand, i think president trump is right. if they don't get this done, they're going to be hurt next year. key issue. i really if impressed with trump rolling up his sleeves, meeting with all these people in the roosevelt room, white house and gone up to t

>> i think a penny for what they should do, but i think your friend larry kudlow has put it, shareholdersy people, shareholders are institutions trying to protect pension funds. public pension funds that are underfunded. if they get money back, they're going to be stronger. and they'll figure out what to do with it. but i think a lot of the companies will use it strategically. i think apple should. >> you do? >> one last thing. are you prepped for policy disappointment? >> that's why you want to own great names. as long as the prices are attractive. you do know we have dereg, you do know the economy's getting better and you do know that inflation is starting to inch up. so you want to own businesses that can do well now as long as the prices are right and that are really going to do much better when the world gets better. >> always good advice, morris, thank you. >> you're welcome. >> morris mark. >> let's get to sue herera get a news update here. hey, sue. >> good morning, carl. good morning everyone. here's what's happening at this hour. secretary of state rex tillerson visiting the dem

our friend, larry kudlow has a book out about reagan and kennedy cutting taxes and lowering marginal rates. that's how you get for growth, more jobs. i think it will happen. the key is cuts. not just reform. maria: beautiful but party last night. >> has come at last. true to the book looks fantastic. congratulations. it is relevant today because this is a great opportunity for trump. a lot of people talk about how lousy his approval ratings are. go beneath the headlines and people trust him on the economy. tree into a business guy. >> what about tackling the special interests who want to keep their tax breaks to benefit them. the mortgage interest production which they said we are not touchi it. what are you going to catch? everybody -- every industry, every group of professionals want to keep their little break. they pay no federal income taxes right now. how much more can you cut their taxes? they are not contributing one nickel to our national defense and to pay the men and women in uniform. when people talk about reforming the tax code,rybody at least most people in this country

. >> he will be the main conduit between the treasury and imf, fund wonder his stance, think larry kudlowcommonsense. >>> president trump is tapping christopher giancarlo to head the commodity futures trading commission. they have been facing industry criticism over extensive rules they have. his appointment requires senate approval. >>> president trump will visit michigan and revisit fuel economy rules put in place by the obama administration. this is one of several items on the white house agenda including a new healthcare deal and a new budget that we will be getting later this week. joining us is judd gregg, former senator of new hampshire, and former pennsylvania governor, ed rendell. gentlemen, welcome to both of you. >> thank you. >> good morning, guys. >> good morning. >> let's start out talking about the budget. that will be a huge issue. governor gregg, what are you expecting to see in the budget? what would you like to see? >> i think the first thinged about the budget is what will happen today with the fed. if they raise interest rates by 25 basis points, that adds 4$40 billio

. >> but larry kudlow had some -- that's what i thought, too, that he had reservations but was slowly getting on board. >> tepper said it would be done overtime. it was complex. >> yeah. >> his analysis. he thought in the end it might work. >> he didn't say he was thrilled with it. he was saying he wasn't worried about it. >> he thought it would help. he wasn't saying it would work in spite of it. he thought there were positive things about how it would work. state of hawaii requesting emergency court intervention to halt president trump's revised order on immigration. a hear hag being has been set fh 15th. a day before the order is set to go into effect. >> the ides of march. the new order puts u.s. entry restrictions on refugees from six muslim countries, and hawaii's governor says it violates the country's constitution. he spoke to phil lebeau last night. >> the impact might be minimal, but for us it's about taking a stand. we don't believe the federal government can discriminate on the basis of natural origin or religion. >> governor says he is concerned about the order being exte

. >> larry k. dl kudlow say repeal would be good for the economy. >> i'm not so sure. >> there were tons of taxes. medical devices, all kinds of places. >> but the worst thing the market dislikes is uncertainty. and i think that would put in too much of a dose of uncertainty into the market. but i think there is an end game and as a stock picker, there will be opportunity to purchase stocks in the health care sector, in the financial sector, energy sector if, in fact, we get worried that the timeline here is two years and not two months. >> if we don't get corporate tax reform -- gl that wou >> that would be the biggest problem. >> that's a problem, right? >> why? >> not so much because of the health care bill but the other measures that -- >> corporate tax reform. >> profits would go up. >> they would have more bankable profits. >> that's right. the economy is growing. profits are growing. could they grow faster if we get a bit more stimulus? yes. that's what the market is discounting, the likelihood that w

solarry kudlow and i have very similar views on that issue. >> larry is saying, that should have come first the whole time. >> they got the order. >> how do you say it's stalled? house speaker ryan saying he got the votes, he didn't lay it out, he says he built momentum t. president was on capitol hill. >> when will this vote happen? >> thursday, they're looking for a house bill for health care. >> when will the tax be ill? the tax bill has been pushed back to late in the year, infrastructure spending is at zero. it's going nowhere. that's the next year issue. so the tax bill being in third place put nit jeopardy the hearings, the russia story put it in jeopardy f. there is anyone out there worrying about impeachment and people in the white house having legal problems, that reduces the probability to get these bills through, so i think that's an important issue. and trade in the same way. >> so what's an investor to do, john? you point out the dow has been on this run up 16.2% since the election. it's too expensive or risky. but there are other markets around the world. is there some