CH'S REAL EXPERTISE AND
CORE IS CREDIT NOT EQUITIES.
>> THAT DOESN'T MEAN HE DOESN'T
HAVE SMART PEOPLE THERE.
>> I WANT TO ECHO THE BREAKDOWN
IN THE CORRELATION.
YOU SHOULD SEE THE SAME
BREAKDOWN BETWEEN OIL AND OUR
STOCK MARKET BECAUSE THAT'S
POSITIVE FOR CONSUMERS.
>> HE'S KIND OF SMART TOO, HE
MADE THE GOOD CALL ON APPLE TOO,
RIGHT?
>> BRILLIANT INVESTOR.
>> HAVE A GREAT WEEKEND. "POWER LUNCH" STARTS NOW.
>>> SCOTT, GENTLEMEN, THANK YOU
VERY MUCH.
WELCOME, EVERYBODY, TO "POWER
LUNCH." WITH MELISSA LEE MICHELLE
CARUSO-CABRERA, BACK TODAY,
BRIAN SULLIVAN I'M TYLER
MATHISEN. TWO BIG THINGS HAPPENING, CHRIS
CHRISTIE, NEW JERSEY'S GOVERNOR
ENDORSING DONALD TRUMP AS A NEW
WAR OF WORDS IS BREAKING OUT IN
THE REPUBLICAN PARTY.
IT WAS A SLAP FEST LAST NIGHT ON
STAGE IN HOUSTON.
MEANTIME, RIGHT NOW, APPLE
HOLDING ITS ANNUAL SHAREHOLDER
MEETING IN CUPERTINO.
LOOK AT THE STOCK.
IT IS UP A LITTLE BIT, A THIRD
OF 1%.
IT HAS BEEN SLIDING AS THE
COMPANY HAS BEEN DEALING AMONG
OTHER THINGS WITH THE FBI PHONE
BACK DOOR ISSUE.
THE DEENCRYPTION FIGHT THEY'RE
HAVING.
WE'LL TALK TO A SENATOR, WELL
VERSED IN TELECOMMUNICATIONS
WHO IS TRYING TO FIND A
COMPROMISE ON THAT.
WE'LL GET ALL THE LATEST FROM
THAT SHAREHOLDER MEETING OUT IN
CALIFORNIA.
WE BEGIN MELISSA, WITH OIL.
>> YES.
OF COURSE CRUDE OIL CONTINUING
ITS VOLATILE MOVES IN THE MARKET
TODAY, TRADING HIGHER NOW AS
TALKS OF A PRODUCTION CUT ARE
STILL IN THE WORKS BETWEEN BOTH
OPEC AND NONOPEC COUNTRIES.
I SPOKE EXCLUSIVELY WITH THE
NIGERIAN OIL MINISTER EMANUEL
KUCHUKU WHO SAID NOT ONLY IS A
PRODUCTION FREEZE IN THE WORKS,
BUT THE SAUDIS ARE LEAFING THE INGLEADING
THE
EFFORT TO PUSH THROUGH THE
FREEZE. >> WE'RE WORKING THE ISSUE.
THE MINISTER FOR ENERGY IN
QATAR, WHO IS OPEC PRESIDENT,
WHO TOOK OVER FOR ME IS LEADING
THAT. THAT IS A LOT OF CONVERSATION
GOING ON AND A LOT OF CONSENSUS
BUILT IN ON THE ISSUE OF FREEZE
IN SAUDI ARABIA AND RUSSIA ALL
ALIGNED ON THIS.
AND I THINK RIGHT NOW OUR EFFORT
IS TO GET EVERYBODY ALIGNED ON
THE FREEZE. >> HE WENT ON TO SAY THE FREEZE
WOULD BE THE PRECURSOR TO
POTENTIAL PRODUCTION CUT.
LET'S BRING IN NOW JOHN KILDOF
OF AGAIN CAPITAL AND CNBC
CONTRIBUTOR. JOHN, WHAT DO YOU MAKE OF THE
COMMENTS?
>> I THINK IT COULD BE TRUE.
I THINK IT WAS DONE BECAUSE OF
THE PLEADINGS OF THE VENEZUELANS
FOR SURE AND IT IS NOTHING IF
NOT CLEVER MELISSA, BY THE
SAUDIS TO DO THIS.
NOT ONLY DO THEY KNOW EVERYONE'S
TRYING TO PUMP AS MUCH AS THEY
CAN AND THEY ARE, BUT ALSO IT
SORT OF FORCED IRAN'S FULL
RE-ENTRY INTO THE MARKET IF
THEY'RE STUCK HAVING TO STAY AT
JANUARY'S LEVELS.
IT KIND OF -- IT IS A CLEVER
MOVE BY THEM.
>> I THOUGHT HIS COMMENTS WERE
FASCINATING, GIVEN WHAT WE HEARD
FROM IRAN CALLING A PRODUCTION
FREEZE A JOKE ESSENTIALLY, AND
WHAT WE HEARD FROM ALI AL NIEMI,
HE'S WILLING TO SEE $20 A
BARREL. I ASKED ABOUT THOSE COMMENTS
BECAUSE THAT SEEMED TO TAKE A
FREEZE OFF THE TABLE.
HE SAID I CAN'T SPEAK FOR THEM
BUT I JUST TALKED TO THE SAUDIS.
WHAT IS HAPPENING HERE?
BECAUSE THE MARKET IS TRYING TO
DECIPHER EVERY SINGLE COMMENT
BEING MADE IN THE MARKETPLACE.
>> AND THEY'RE GETTING REWARDED
FOR WHAT IS BEING SEEN AS AN AIR
OF COOPERATION. A FIRST STEP.
BUT THIS IS CLASSIC DOUBLE SPEAK
FROM OPEC IN TERMS OF WANTING TO
COOPERATE, LETTING THE MARKET
DECIDE THE PRICE.
AND LET THE -- AS YOU HEARD
NIEMI SAY EARLIER THIS WEEK AS
WELL, THAT IT IS THE PROBLEM FOR
THE HIGHER COST PRODUCERS, NOT
SAUDI ARABIA RIGHT NOW.
THEY HAVE TO CUT, NOT US.
HE DOESN'T TRUST ANYONE ELSE TO
CUT EITHER.
SO, AGAIN, THIS IS A LOT OF
HOPEFUL TALK.
NIGERIA, PROBABLY THE SECOND
MOST BATTERED OPEC MEMBER NATION
IN THIS WHOLE RUNDOWN IN CRUDE
OIL PRICES.
THEY CAN'T EVEN SELL THEIR OIL.
>> WE HAVE TO BE CLEAR, THOUGH,
JOHN, WE SAID OPEC PRODUCTION
CUT LIKE IT IS A THING.
IT IS RARE.
RIGHT?
THEY DID IT --
>> HOLD ON ONE SECOND.
TO TO DONALD TRUMP WHO IS SPEAKING
NOW IN THE WAKE OF CHRIS
CHRISTIE ENDORSING HIM.
HOLD ON.
>> WHAT CHANGED THE --
>> HOW DID YOU KNOW I WAS
TALKING TO MR. TRUMP?
BY THE WAY -- LISTEN, I THINK
YOU WATCH THE ACT SENATOR RUBIO
HAS BEEN PUTTING ON OVER THE
LAST FEW WEEKS.
HE'S GONE NOW AND PART OF HIS
TALKING POINTS ARE TO TRY TO BE
ENTERTAIN AND SMILE A LOT.
LISTEN, IT IS ONE ACT AFTER
ANOTHER. WE DON'T NEED ANY MORE
WASHINGTON, D.C. ACTS. THE ACTS I WANTED TO GET RID OF
ARE WASHINGTON, D.C. ACTS.
AS A GOVERNOR FROM A STATE
CAPITAL, I SAID WE DON'T NEED
SOMEBODY FROM WASHINGTON, D.C.
WHAT I MOST CONSISTENTLY SAID
DURING THAT CAMPAIGN WAS THE
PROBLEM IS WASHINGTON, D.C. AND
WE DON'T NEED WASHINGTON, D.C.
POLITICIANS TO COME IN AND FIX
IT.
AND SO WHEN YOU LOOK AT WHO IS
REMAINING ON THAT STAGE, THERE
IS NO QUESTION THAT THIS IS THE
PERSON WHO WILL GO TO
WASHINGTON, D.C., AND BE ABLE TO
ABSOLUTELY TURN THE PLACE
AROUND.
WE DON'T NEED ANYMORE WASHINGTON
POLITICIANS, ESPECIALLY SOME WHO
ONLY HAVE BEEN THERE FOR ONE
TERM AND NEVER REALLY SHOWN UP
FOR WORK TO TELL US HOW TO RUN
THE UNITED STATES GOVERNMENT.
AND SO I ABSOLUTELY BELIEVE THAT
DONALD TRUMP IS THE BEST PERSON
ON THAT STAGE TO BE PRESIDENT OF
THE UNITED STATES.
ONONE LAST THING, BY THE WAY,
THERE WAS A PERIOD OF WAY I WAS
RUNNING AGAINST HIM.
HE KNEW WHEN I WAS RUNNING
AGAINST HIM I WANTED TO BEAT HIM
AND HE WANTED TO BEAT ME.
WE HAD OPEN CONVERSATIONS ABOUT
THAT. THAT PART OF THIS IS OVER AND
THEN YOU HAVE TO SAY TO YOURSELF
AS A GOOD LOYAL, AMERICAN WHO
IS BEST PERSON TO STOP HILLARY
CLINTON FROM EVER GETTING INSIDE
THE WHITE HOUSE AGAIN?
THIS IS THE BEST PERSON TO DO
THAT. TURN AWAY FROM THE AMATEUR ACTS
FROM WASHINGTON, D.C. AND TURN
TO A PROFESSIONAL STRONG LEADER
THAT'S WHO THIS MAN IS.
>> YOU DID SAY HOW -- YOU ASKED
HOW IS HE GOING TO DO THIS.
>> YES.
>>. [ INAUDIBLE ]
>> -- FURTHERMOREIRMLY VETTED IN THE
ESTABLISHMENT --
[ INAUDIBLE ] >> NO WHAT MY INTENT FOR BEING
HERE TODAY IS TO SAY TO ANYONE
WILLING TO LISTEN NOT JUST
MEMBERS OF THE RGA OR DONORS
BUT TO THE AMERICAN PEOPLE YOU
NEED A STRONG TOUGH LEADER TO
RESTORE AMERICA'S GREATNESS.
AND THIS IS THE BEST PERSON TO
DO THAT.
AND SO WHATEVER MESSAGE ANYBODY
ELSE WANTS TO TAKE FROM THAT
THEY CAN TAKE WHATEVER MESSAGE
THEY LIKE. MOST OF THE TIME YOU KNOW THAT
PEOPLE DO BEST WITH ME.
IF THEY DON'T TRY TO FIGURE OUT
WHAT THE MESSAGE IS THEY JUST
LISTEN.
THEY LISTEN TO WHAT I SAY.
I DON'T SEND SMOKE SIGNALS.
WHAT I'M DOING TODAY IS
ENDORSING THE PERSON I BELIEVE
IS THE BEST PERSON TO DEFEAT
HILLARY CLINTON AND RESTORE
AMERICAN JOBS RESTORE AMERICAN
PRESTIGE AROUND THE WORLD, AND
RESTORE THE FAITH AND CONFIDENCE
OF THE AMERICAN PEOPLE AGAIN IN
THE FACT THAT WE ARE AN
EXCEPTIONAL AND GREAT NATION.
MITT ROMNEY TO DONALD TRUMP,
THEY'RE VERY DIFFERENT FELLOWS.
[ INAUDIBLE ]
>> POLLS ARE ALL OVER THE PLACE.
>> I THINK WE HAVE A GREAT SHOT.
I THINK THAT PEOPLE ARE LIKING
ME A LOT.
I KNOW A LOT ABOUT TEXAS.
I HAVE MANY FRIENDS IN TEXAS.
MANY, MANY FRIENDS.
I'M HERE A LOT. I THINK WE HAVE A REALLY GOOD
CHANCE. IF YOU LOOK AT SOUTH CAROLINA,
THAT WAS SUPPOSED TO BE CRUZ'S
STRONGHOLD, HIS STRONGHOLD.
HE WAS GOING TO WIN THAT EASILY
AND I WON BY 22 POINTS WON IN A
LANDSLIDE, WON EVANGELICALS, WON
MILITARY WON THE VETS I WON
EVERYTHING.
I WON MEN, I WON WOMEN, I WON
HISPANICS, I WON EVERY SINGLE
CATEGORY.
SAME THING IN NEVADA. WE CAME IN, WE WON EVERY
CATEGORY INCLUDING, BY THE WAY,
HISPANICS. SO, YOU KNOW IT WAS SUPPOSED TO
BE A STRONGHOLD.
HE WAS SUPPOSED TO DO GREAT
THERE. HE LOST BY A LOT.
I THINK I SHOULD HAVE A REALLY
GOOD CHANCE OF TEXAS.
I SEE THE BLOOMBERG POLL CAME
OUT AND IT IS MASSIVE LEADS IN
EVERY STATE.
WE'RE DOING VERY WELL IN TEXAS.
THE EMERSON POLL CAME OUT, WE'RE
TIED OR EFFECTIVELY TIED.
I THINK WE'LL DO VERY WELL HERE.
WE'LL BE HERE. I'M HERE NOW.
I WOULD LOVE TO GET TEXAS
BECAUSE OF MY RELATIONSHIP TO
TEXAS, SO MANY FRIENDS, OKAY.
MARK.
[ INAUDIBLE ]
>> WELL, HE'S DESPERATE.
LOOK, LOOK, I WATCHED A PART OF
HIS LITTLE ACT AND HE'S A
DESPERATE GUY.
I'VE BEEN WATCHING HIM OVER THE
LAST NUMBER OF -- HE IS NOT
PRESIDENTIAL MATERIAL THAT I CAN
TELL YOU. DOESN'T HAVE THE DEMEANOR.
HE IS A NERVOUS NELLY.
WATCH HIM BACKSTAGE.
HE'S A MESS.
THE GUY IS A TOTAL MESS.
AND, YOU KNOW, I JOKED RECENTLY
ABOUT CAN YOU IMAGINE PUTIN
SITTING THERE WAITING FOR A
MEETING AND RUBIO WALKS IN AND
HE'S TOTALLY DRENCHED.
I DON'T KNOW WHAT IT IS. BUT I'VE NEVER SEEN A HUMAN
BEING SWEAT LIKE THIS MAN
SWEATS.
DON'T THINK HE'S PRESIDENTIAL.
I DON'T THINK HE'S PRESIDENTIAL
CALIBER. I DON'T THINK HE HAS THE
DEMEANOR.
I DON'T THINK HE'S GOING TO DO
VERY WELL AND HE'S A MESS
BECAUSE IN FLORIDA, WHICH HE
ABANDONED, BY THE WAY.
I LOVE FLORIDA.
I'VE INVESTED HUNDREDS OF
MILLIONS OF DOLLARS. I OWN DORAL.
I OWN MANY CLUBS, INCLUDING
MAR A LAGO.
I OWN MANY.
A LOT OF REAL ESTATE ALONG THE
SHORE IN MIAMI THAT WORKED OUT
WELL WITH THE DESERS.
I'M A MAJOR INVESTOR IN MIAMI,
ONE OF THE BIGGEST. FRANKLY THE PEOPLE IN FLORIDA
LIKE ME.
BUT FOR ME TO GO INTO FLORIDA
AND HAVE LIKE A 20-POINT LEAD
OVER THE SITTING SENATOR, BUT,
REMEMBER, THE SENATOR ABANDONED
FLORIDA. HE LEFT FLORIDA.
HE WAS SUPPOSED TO BE THERE --
HE DEFRAUDED.
IF YOU THINK ABOUT IT HE
DEFRAUDED FLORIDA, THE PEOPLE OF
FLORIDA, THEY ELECTED HIM AS A
YOUNG SENATOR. HE GOES THERE AND BEFORE HE SITS
DOWN, HE STARTS RUNNING FOR
PRESIDENT.
I DON'T THINK HE HAS THE RIGHT
TEMPERAMENT. I WATCHED CHRIS DO A NUMBER ON
HIM. I ALMOST NEVER SEEN A MELTDOWN
LIKE THAT IN MY LIFE.
AND IT IS INTERESTING ABOUT
PEOPLE WHO CHOKE.
I WATCHED PEOPLE CHOKE OVER THE
YEARS. AND ONCE A CHOKER ALWAYS A
CHOKER.
IT NEVER, EVER CHANGES.
THE GUY THAT MISSES THE KICK
MISSES THE KICK.
WHEN HE MISSES THE FIRST ONE,
YOU GOT TO GET RID OF HIM
BECAUSE IT DOESN'T WORK.
ONCE A CHOKER ALWAYS A CHOKER.
AND THAT WAS ONE OF THE EPIC
MELTDOWNS.
HE DIDN'T KNOW WHERE HE WAS.
I THOUGHT HE WAS GOING TO -- I
THOUGHT HE WAS GOING TO DIE.
GOOD GOING, CHRIS.
>> MR. TRUMP, MR. TRUMP --
>> I DON'T WANT TO DISCUSS THAT
BUT HE GOT THE TALENT.
WE DIDN'T TALK ABOUT IT.
WE ACTUALLY DID NOT EVEN TALK
ABOUT IT. BUT HE CERTAINLY HAS A LOT OF
TALENT. YES, KATIE.
>> MR. TRUMP, THE IRS SAID THERE
IS NOTHING PRECLUDING YOU IN ITS
RULES FROM RELEASING YOUR
TAXES -- >> LET ME TELL YOU SOMETHING.
LET ME TELL YOU SOMETHING.
WE TALK ABOUT ESTABLISHMENT AND
ALL.
I THINK IT IS VERY UNFAIR THAT
FOR MANY MANY YEARS I'VE BEEN
AUDITED. I HAVE MANY, MANY FRIENDS THAT
ARE VERY RICH PEOPLE AND THEY
NEVER -- THEY HAVE NEVER BEEN
AUDITED.
I WAS WITH SOMEBODY THE OTHER
DAY, VERY RICH GUY, I SAID HOW
OFTEN ARE YOU AUDITED?
HE SAID, AUDITED? HE DIDN'T KNOW WHAT I WAS
TALKING ABOUT.
I HAVE MANY MANY RICH FRIENDS,
ALMOST ALL OF THEM AND THEY'RE
NEVER AUDITED.
WHY AM I AUDITED EVERY SINGLE
YEAR? SO I'M GOING TO PUT YOU PEOPLE
TO REST.
UNTIL MY AUDIT IS FINISHED VERY
SIMPLE, YOU'RE NOT GOING TO SEE
ANYTHING. WHEN IT IS FINISHED YOU'RE
GOING TO SEE IT. I'M NOTING GOING TO COMPLICATE
THINGS BY DOING THIS. WHY IS IT THAT EVERY SINGLE
YEAR -- I'M TALKING ABOUT BEYOND
BARACK OBAMA BUT EVERY YEAR
DURING HIS TERM ALSO EVERY
SINGLE YEAR I'M AUDITED.
NOT FAIR.
>> WHY WOULD YOU NOT APPEASE
THEM AND RELEASE A --
>> I CAN'T TELL YOU WHY.
>> WHY WOULD YOU NOT --
>> I CAN'T TELL YOU WHY.
ALL I CAN SAY IS MANY MANY
PEOPLE I KNOW THAT ARE VERY
VERY WEALTHY ARE NOT AUDITED.
>> WHAT ABOUT RELEASING A PAST
RETURN? [ INAUDIBLE ]
>> YEAH. >> -- SERIES OF BUSINESS
DISASTERS -- >> WHICH IS -- WHICH IS TOTALLY
WRONG. TOTALLY WRONG.
HE ALSO SAID I GOT $200 MILLION
FROM MY FATHER. I WISH.
I GOT A VERY VERY SMALL LOAN
FROM MY FATHER MANY YEARS AGO.
I BUILT THAT INTO A MASSIVE
EMPIRE. AND I PAID MY FATHER BACK THAT
LOAN. AND, BIT WAY, IY THE WAY, MY FATHER
LEFT ME SOME MONEY, NOTHING LIKE THE
NUMBERS YOU HEARD BUT BY THAT
TIME, IT WAS MANY MANY YEARS
LATER WHEN MY FATHER PASSED
AWAY. MY FATHER, MORE THAN ANYTHING
ELSE, I LEARNED A LOT FROM MY
FATHER.
BUT FOR THIS GUY, THIS
LIGHTWEIGHT, I CALL HIM A
LIGHTWEIGHT, TO SAY $200
MILLION, IN FACT THE FIRST CALL
I GOT LAST NIGHT WAS FROM MY
SISTER, AND THEN A CALL FROM MY
BROTHER, AND THEY SAID WOW, HOW
DOES HE SAY THAT?
THAT'S NOT TRUE.
THEY UNDERSTAND.
WE HAVE FIVE IN THE FAMILY.
AND THEY SAY, SO IN OTHER WORDS,
ANYTHING ALSO WOULD BE SPLIT UP.
BUT SHE CALLED SHE SAID IS
THAT UNTRUE.
AND IT IS A SHAME.
I'LL TELL YOU WHERE THEY GOT IT
THE NEW YORK TIMES WROTE -- I
CALL IT THE FAILING NEW YORK
TIMES BECAUSE IT IS A TOTALLY
FAILING PAPER WITH SOME REALLY
INACCURATE REPORTING.
AND PURPOSEFULLY INACCURATE.
THEY GO OUT OF THEIR WAY.
IF YOU TRY TO MAKE A CORRECTION
PRIOR TO THE STORY, THEY DON'T
WANT TO DO IT.
THEY MADE A STATEMENT ABOUT IT.
I DON'T KNOW WHERE THEY GOT IT.
I WOULD TELL YOU THE NUMBER IS
WRONG BY A FACTOR HUNDREDS OF --
BY A FORTUNE.
I GOT A SMALL LOAN STARTED A
BUSINESS AND IT IS NOW WORTH
BILLIONS AND BILLIONS AND
BILLIONS OF DOLLARS. AND IF I EVER WANTED TO SELL THE
ASSETS I HAVE TRUMP TOWER, THE
BANK OF AMERICA BUILDING IN SAN
FRANCISCO, BIG CHUNK, 1290
AVENUE OF THE AMERICAS SOME OF
THE BEST LAND IN THE COUNTRY,
DORAL COUNTRY CLUB TURNBERRY IN
SCOTLAND, HOME OF THE OPEN
CHAMPIONSHIP, REFERRED TO AS THE
BRITISH OPEN, MY -- MY PROPERTY
WOULD SELL FOR NUMBERS LIKE
NOBODY WOULD BELIEVE. I HAVE I THINK, AMONG THE BEST
PROPERTIES ANYWHERE IN THE
WORLD.
I JUST THINK IT IS REALLY UNFAIR
WHEN A GUY SAYS MY FATHER GAVE
ME $200 MILLION, IF YOU KNEW
BROOKLYN, OKAY IN THE 19 --
EARLY 1980s, YOU UNDERSTAND
THIS, CHRIS.
IF YOU KNEW BARAK LYNNROOKLYN IN THE
1980s AND 1970s, IT WASN'T $200
MILLION, I CAN TELL YOU.
I DO HAVE BROTHERS AND SISTERS.
BUT FIRST CALL I GOT WAS FROM MY
SISTER AND THEN A CALL FROM MY
BROTHER. LATE AT NIGHT.
AND ALL HE WANTED TO DO IS SAY,
WHY ARE THEY ALLOWED TO SAY
THAT? BECAUSE HE'S A LIAR.
THIS GUY IS A LIAR.
USED TO CALL TED CRUZ A LIE, BUT
NOW I'LL ALSO CALL MARCO
RUBIO -- HE MENTIONED SOME
COMPANIES AND SOME OF THOSE
COMPANIES ARE VERY SUCCESSFUL
COMPANIES. HE SAID THEY CLOSED.
I SOLD SOME.
FOR INSTANCE, I SOLD MISS
UNIVERSE FOR A LOT OF MONEY. GOT A LOT OF MONEY FOR IT.
I SOLD OTHERS AND THE WATER
COMPANY HE MENTIONS HE MENTIONS
THE WINE COMPANY, I HAVE THE
BIGGEST VINEYARD ON THE EAST
COAST. THAT'S HAVING TO DO WITH -- I
MAKE VODKA ALL FROM MY CLUBS.
I HAVE MANY CLUBS.
WE MAKE VODKA FOR THE CLUBS.
HE SAID IT WAS CLOSED.
IT IS NOT CLOSED.
>> GO AHEAD.
GO AHEAD.
>> IF YOU WANT TO BECOME THE
NOMINEE -- >> I WOULD THINK ABOUT IT.
BUT, LOOK IF FOR SOME REASON IT
DIDN'T WORK OUT FOR ME CHRIS
WOULD UNDERSTAND THIS I'M GOING
BACK TO WHAT I DO.
I DON'T NEED TO DO THIS.
THIS IS SOMETHING I'M DOING
BECAUSE WE ARE GOING TO MAKE
AMERICA GREAT AGAIN. AND POLITICIANS ARE NOT GOING TO
DO THAT.
THESE POLITICIANS AND I KNOW THE
PEOPLE ON THE STAGE, THEY'RE NOT
GOING TO DO IT.
MARCO RUBIO IS A LIGHTWEIGHT.
HE DOESN'T HAVE THE TALENT.
HE DOESN'T HAVE THE TEMPERAMENT,
HE CAN NEVER MAKE US GREAT.
>> I HAVE A QUESTION FOR
GOVERNOR CHRISTIE.
>> DO YOU KNOW IF YOU CAN WRITE
OFF THE MONEY YOU WERE USING FOR
YOUR CAMPAIGN?
CAN YOU WRITE THAT OFF IN.
>> GOVERNOR CHRISTIE CAN I ASK
YOU A QUESTION.
YOU, AS YOU SAID, ARE A FARMEREDERAL
FORMER PROSECUTOR.
IS THERE A POSITION YOU WOULD BE
INTERESTED IN, ATTORNEY GENERAL, SOMETHING LIKE THAT?
WOULD YOU LIKE TO BE HIS RUNNING
MATE?
>> I AM THE GOVERNOR OF STATE OF
NEW JERSEY UNTIL JANUARY 19th OF
2018 AND I HAVE EVERY
EXPECTATION THAT I WILL FULFILL
THE END OF MY TERM.
AND THEN GO INTO PRIVATE LIFE
AND MAKE MONEY LIKE TRUMP.
THAT'S WHAT I INTEND TO DO.
>> IF YOU WERE OFFERED A
POSITION WOULD YOU TAKE IT?
>> I HAVEN'T BEEN OFFERED ANY
POSITION. AND I DON'T SPECULATE ON THOSE
KIND OF THINGS.
I HAVE A TERM IN OFFICE UNTIL
JANUARY 19th, 2018 AND I INTEND
TO FULFILL MY TERM AND THEN LIKE
I SAID GO OFF THE PRIVATE
SECTOR AND FINALLY BEAT MY WIFE
ONE YEAR IN OUR MARRIAGE WE
HAVE BEEN MARRIED 30 YEARS IN
MARCH, I WOULD LIKE ONE TIME
BEFORE I DIE TO MAKE MORE MONEY
IN A YEAR THAN SHE DID.
SO THAT'S GOING TO BE MY GOAL
AFTER JANUARY 19th OF 2018.
>> THANK YOU, EVERYBODY.
WE HAVE THOUSANDS -- I HAVE TO
GO.
WE HAVE THOUSANDS AND THOUSANDS
OF PEOPLE OUTSIDE.
YOU WILL BE VERY IMPRESSED.
THANK YOU, ALL.
THANK YOU VERY MUCH.
THANK YOU.
>> JOHN HARWOOD, WE LEARNED JUST
NOW THAT CHRIS CHRISTIE HAS
ENDORSED MR. TRUMP, WE ALSO
LEARNED THAT MARCO RUBIO IS A
LIGHTWEIGHT AND THAT MR. TRUMP
IS AN EXCELLENT ATHLETE.
WHAT MORE CAN YOU ADD?
>> AMONG OTHER THINGS.
>> RUBIO SWEATS. >> HE SWEATS PROFUSELY.
>> GOT TO SAY, TYLER, THIS
ENDORSEMENT ANNOUNCEMENT OF
CHRIS CHRISTIE ENDORSING DONALD
TRUMP IS A DAGGER TO THE REST OF
THE REPUBLICAN FIELD.
JUST AT THE MOMENT WHEN
REPUBLICAN ESTABLISHMENT
FIGURES, ELECTED OFFICIALS WERE
TRYING TO RALLY THE PARTY AROUND
MARCO RUBIO, TO GET HIM TO STOP
DONALD TRUMP HERE YOU HAVE
CHRIS CHRISTIE ONE OF THE
MEMBERS OF THE SO-CALLED
ESTABLISHMENT LANE IN THE RACE
FORMER HEAD OF REPUBLICAN
GOVERNOR'S ASSOCIATION, KEYNOTE
SPEAKER AT THE LAST REPUBLICAN
CONVENTION MAINSTREAM
REPUBLICAN FIGURE, NOW COMING
OUT AND GIVING HIS BLESSING TO
DONALD TRUMP. NOT REALLY ABOUT VOTERS BECAUSE
CHRIS CHRISTIE DIDN'T HAVE A
HUGE FOLLOWING AMONG VOTERS IN
THE CAMPAIGN.
OTHERWISE HE WOULD BE IN THE
RACE. IT IS ABOUT THE PSYCHOLOGY OF
THE RACE THE SUPER TUESDAY
CONTEST, JUST A FEW DAYS AWAY.
DONALD TRUMP HAS A LEAD.
HAD A VERY BRUTAL DEBATE LAST
NIGHT IN WHICH BOTH TED CRUZ AND
MARCO RUBIO ROUGHED UP DONALD
TRUMP, WENT AT HIM HARD.
THIS IS A WAY FOR DONALD TRUMP
TO SEIZE CONTROL OF THE STORY
LINE, TO BE ABLE TO SAY, LOOK
THIS VERY MAINSTREAM REPUBLICAN
FIGURE IN THE STATE OF NEW
JERSEY A STATE THAT DEMOCRATS
ARE LIKELY TO WIN, IS EMBRACING
ME AND LET'S TAKE A LISTEN TO A
LITTLE SOUND FROM THAT
ENDORSEMENT.
>> WHAT DOES DONALD TRUMP DO WHEN THINGS GO WRONG?
HE TAKES TO TWITTER.
>> THAT ISN'T EXACTLY WHAT WE
WERE EXPECTING.
THAT WAS MARCO RUBIO TALKING
ABOUT DONALD TRUMP'S TWEETS
INSTEAD, A DIFFERENT PIECE OF
SOUND. LET'S LISTEN TO THAT.
>> WHAT DOES DONALD TRUMP DO
WHEN THINGS GO WRONG?
HE TAKES TO TWITTER. I HAVE HIM RIGHT HERE.
LET'S READ SOME.
YOU'LL HAVE FUN.
LIGHTWEIGHT MARCO RUBIO WAS
WORKING HARD LAST NIGHT.
THIS IS TRUE.
THE PROBLEM IS HE IS A CHALKER
AND ONCE A CHALKER HE IS ALWAYS
A CHALKER.
CHOKER I GUESS IS WHAT HE MEANT
TO SAY.
HE SPELLED CHOKER C-H-A-L-K-E-R.
>> HE WAS ON FIRE THIS MORNING
GOING AFTER DONALD TRUMP, HAD
THE CROWD LAUGHING, HE WAS IN
GOOD HUMOR.
HE KEPT A SMILE ON HIS FACE LAST
NIGHT TOO.
AND ENDORSEMENT FROM CHRIS
CHRISTIE IS THE LAST THING THE
RUBIO CAMPAIGN WANTED TO SEE AS
WE HEAD TO SUPER TUESDAY.
>> I WONDER IF THEY SHOULDN'T BE
SURPRISED AT ALL.
THE BIG WALL STREET MONEY WENT
TO RUBIO.
HE PROBABLY WOULD LOVE TO SHOVE
THE DAGGER IN FOR THAT SIMPLE
REASON.
TWO, BACK WHEN THE ESTABLISHMENT
THOUGHT THEY WERE IN CONTROL OF
THIS PROCESS, THE TALK WAS THERE
WAS GOING TO BE A WOMAN AS THE
VP -- AS THE VP ON THE TICKET.
NOW THAT THE ESTABLISHMENT ISN'T
IN CONTROL, THAT VP SPOT IS WIDE
OPEN AT THIS POINT.
>> WELL AND WE JUST HEARD A Q&A
FROM DONALD TRUMP AND CHRIS
CHRISTIE, WHICH MADE IT VERY
CLEAR THAT CHRIS CHRISTIE IS
QUITE OPEN TO THE IDEA OF
SERVING AS DONALD TRUMP'S VICE
PRESIDENTIAL CANDIDATE. IF HE WERE TO RUN ON THAT
TICKET, THAT WOULD BE A BIG
ASSET TO DONALD TRUMP.
THAT WOULD BE A SIGN THAT DONALD
TRUMP WOULD BE PLAYING TO WIN IN
A GENERAL ELECTION STILL AN
UPHILL FIGHT FOR HIM, IF HILLARY
CLINTON IS THE NOMINEE, SHE
WOULD BE FAVORED OVER DONALD
TRUMP, BUT NO QUESTION THAT
CHRIS CHRISTIE HIS RETAIL
SKILLS, HIS CONNECTIONS, HIS
BRIDGE TO THE REPUBLICAN
MAINSTREAM WOULD BE A BIG ASSET
FOR DONALD TRUMP IN THE NATIONAL
CAMPAIGN. >> JOHN, THERE IS SO MUCH GOING
ON WITH THE SOUND BITES AND
DEBATES THAT WE FORGET THAT
POLITICS IS JUSTZSIDENCY IS GOING
TO COME DOWN TO MATH.
THERE ARE A COUPLE OF STATES
THAT MATTER VIRGINIA OHIO,
FLORIDA, MAYBE PENNSYLVANIA.
DO YOU THINK THIS CHRIS CHRISTIE
ENDORSEMENT IS GOING TO HELP
TRUMP IN FLORIDA, VIRGINIA,
OHIO. THOSE THREE STATES WILL PROBABLY
DETERMINE WHO IS GOING TO BE
PRESIDENT. >> YES, I THINK IN SWING STATES
CHRIS CHRISTIE WOULD BE A BOOST
TO DONALD TRUMP.
I THINK THERE IS NO QUESTION
ABOUT THAT.
DONALD TRUMP HAS GOT SOME BIG
LIABILITIES THAT HE WOULD CARRY
INTO THE GENERAL ELECTION IN
TERMS OF THE WAY THAT HE WITH
GALVANIZE THE DEMOCRATIC BASE
THE STRONGLY NEGATIVE FEELINGS
THAT NONWHITE VOTERS HAVE ABOUT
HIM.
HE IS WEAKER AMONG BETTER
EDUCATED VOTERS.
AND YOU CAN BET THAT COLLEGE
EDUCATED SUBURBANITES WOULD BE A
MAJOR TARGET FOR DEMOCRATIC
CAMPAIGN AGAINST A
TRUMP/CHRISTIE TICKET.
BUT, NO CHRIS CHRISTIE COULD
HELP DONALD TRUMP AND TAKE A
CAMPAIGN THAT WOULD BE UPHILL
FOR DONALD TRUMP AND MAKE IT A
LITTLE BIT LESS UPHILL.
>> LET ME BRING IN JIM HARWOOD
AND GET YOUR THOUGHTS ON THIS
TOO.
I WANT TO BRING IN ROBERT FRANK
ON THE QUESTION OF TRUMP'S TAX
RETURNS. HE MAINTAINED LAST NIGHT AND
JUST NOW THAT HE WILL NOT
RELEASE HIS TAX RETURN
PRESUMABLY 2014 TAX RETURN UNTIL
AN AUDIT IS FINISHED.
THEN GOING BACK, MANY MANY
YEARS, WHO KNOWS.
WHY DOESN'T HE RELEASE EARLIER
TAX RETURNS THAT ARE FINISHED
WITH THE AUDIT?
>> THAT'S ONE QUESTION.
THERE IS NO REASON HE CAN'T.
THE OTHER QUESTION IS HE CAN
RELEASE THE 2014 RETURNS.
IF YOU GO TO A BANK NOW AND
APPLY FOR A MORTGAGE THEY ASK
FOR YOUR TAX RETURNS, IF YOU'RE
BEING AUDITED, WHICH HAPPENS
FREQUENTLY, YOU JUST TELL THE
BANK, IT IS PENDING AN AUDIT.
BUT YOU RELEASE THEM TO THE
BANK. NO REASON WHY HE CAN'T DO THAT
HERE.
I'M TRUMP, I'M BEING SINGLED
OUT, IF HE WATCHED CNBC THIS
WEEK, HE WOULD HAVE LEARNED THAT
ONE IN TEN MILLIONAIRES ARE
BEING AUDITED.
THAT'S TWICE THE RATE OF 2007.
FOR THOSE MAKING MORE THAN 10
MILLION, IT IS ONE IN SEVEN.
SO HE HAS MORE AND MORE PEOPLE
LIKE HIM AMONG THE WEALTHY THAT
ARE BEING TARGETED, INCREASINGLY
BY THE IRS FOR AUDIT.
>> IT WOULD NOT BE USUAL FOR THE
ONE IN SEVEN TO BE AUDITED EVERY
SINGLE YEAR.
>> I DON'T THINK SO.
I THINK WHAT HE'S TALK ING ABOUT
IS YOU GET AUDITED AND ASK FOR
THREE OR FOUR YEARS BEHIND THAT.
>> MAY BE THE DEDUCTIONS HE
CLAIMS ARE ON HIS TAX RETURN
THAT KICK OUT HIS TAX RETURN.
HE SEEMED TO SUGGEST JOHN
HARWOOD THAT IT HAD SOMETHING
MORE TO DO WITH BEING SINGLED
OUT FOR PERSONAL REASONS.
>> HE SUGGESTED THAT.
HE SAID LOTS OF STUFF, BUT YOU
KNOW, DONALD TRUMP SAYS STUFF
AND IT DOESN'T MATTER FIVE
MINUTES LATER.
HE SAID AT ONE POINT MAYBE BECAUSE I WAS A STRONG CHRISTIAN
AND THEN LATER IN INTERVIEW HE
SAID PROBABLY NOT THAT.
MAYBE SOMETHING ELSE.
BUT HERE IS WHY DONALD TRUMP
DOESN'T WANT TO -- OR WON'T
RELEASE THOSE RECORDS
IMMEDIATELY.
A, HE DOESN'T WANT TO.
AND, B HE DOESN'T HAVE TO.
THIS IS A HAIL MARY PASS COOK UP
IN THE LAST COUPLE OF DAYS BY
MITT ROMNEY WHO ON BEHALF OF THE
REPUBLICAN ESTABLISHMENT DECIDED
TO THROW OUT SOMETHING TO TRY
TO, YOU KNOW, TRIP UP DONALD
TRUMP.
AND IT IS NOT LIKE HIS RIVALS
HAVE BEEN DEMANDING THESE FOR
MONTHS. THIS ISSUE JUST AROSE OUT OF
NOWHERE AND IT IS NOT A SCENARIO
DESIGNED TO IMMEDIATELY PUT TONS
OF PRESSURE ON HIM.
>> AND LESS CONSEQUENTIAL NOW
THAT THE DAGGER WAS DELIVERED BY
CHRISTIE TO THE OTHER
PRESIDENTIAL CANDIDATES AS YOU
SAY, JOHN HARWOOD.
I'M CURIOUS, THE BARN DOOR IS
OPEN NOW FOR MORE ESTABLISHMENT
GOP MEMBERS TO NOW ENDORSE TRUMP
WITHOUT TOO MANY REPERCUSSIONS.
>> ABSOLUTELY.
AND, YOU KNOW CHRIS CHRISTIE --
EXCUSE ME, MARK YESCO RUBIO IS THE
DOMINANT CHOICE AMONG MAINSTREAM
ELECTED REPUBLICAN OFFICIALS IN
WASHINGTON AND THEY HAVE BEEN HOLDING BACK AND NOW RALLYING
BEHIND HIM TO TRY TO STOP TRUMP.
TRUMP DIDN'T HAVE ANY BIG
MAINSTREAM FIGURES LIKE THAT AND
THE FACT YOU BREAK -- YOU BREACH
THAT DIKE AND YOU GET ONE COMING
IN, THE HOPE IS THAT YOU'LL GET
OTHERS WHO SAY, HEY, I FIGURED
IT OUT HE'S GOING TO BE THE
NOMINEE, I'LL GO JUMP ON THAT
TRAIN TOO.
AND BY DOING THAT AGAIN, I'M
TALKING ABOUT THE PSYCHOLOGY OF
THIS, IF YOU CHANGE THE
PSYCHOLOGY AND ALL OF A SUDDEN
MACK A BUNCH OF PEOPLE WHO ARE
RESISTANT TO YOU BELIEVE YOU'RE
GOING TO BE IN POWER ANYWAY
THEY'RE GOING TO JUST HOW THEY
LOOK AT YOU, INTERACT WITH YOU
AND TALK ABOUT YOU.
>> JOHN THANK YOU VERY MUCH.
JOHN HARWOOD IN WASHINGTON, I'M
SURE WE'RE GOING TO REVISIT THIS
FOR THE REST OF THE DAY.
ROBERT FRANK, THANK YOU AS WELL.
>>> IT IS -- LET'S NOT FORGET IT
IS FRIDAY.
IT MEANS IT IS RIG COUNT DAY.
RIG COUNTS FALLING FOR A TENTH
STRAIGHT WEEK.
ACCORDING TO BAKER HUGHES, HEI,
AMERICA, RIG COUNTS FELL 13 LAST
WEEK. BUT ANOTHER DECLINE, TENTH
STRAIGHT WEEK OIL NOT MOVING
THAT MUCH.
I THINK YOUR COMMENTS FROM THE
NIGERIAN OIL MINISTER MOVED OIL
A LITTLE BIT.
IT TICKED HIGHER. >> AFTER WE RAN THE SOUND BITE.
>> MELISSA INTERVIEWED THE
NIGERIAN OIL MINISTER HE MADE
COMMENTS ABOUT THE LIKELIHOOD OF
A FREEZE.
RIG COUNSEL
RIG COUNTS DOWN 13.
>> THE OVER/UNDER.
>> JUST MISSED IT. >> WE'LL BE RIGHT BACK.
DON'T MOVE.
THERE'S A LOT OF PLACES YOU NEVER
WANT TO SEE "$7.95."
[ BEEP ]
BUT YOU'LL BE GLAD TO SEE IT HERE.
FIDELITY -- WHERE SMARTER INVESTORS
WILL ALWAYS BE.
WHERE TO GET IN... WHERE TO GET OUT. IF ONLY THE SIGNS WERE
AS OBVIOUS WHEN YOU TRADE.
FIDELITY'S ACTIVE TRADER PRO CAN HELP YOU FIND
SMARTER ENTRY AND EXIT POINTS
AND CAN HELP PROTECT YOUR POTENTIAL PROFITS.
FIDELITY -- WHERE SMARTER INVESTORS
WILL ALWAYS BE.
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>>> WELCOME BACK TO "POWER
LUNCH." MICHELLE CARUSO-CABRERA HERE.
GOLD PRICE CLOSING NOW.
LOWER BY $18.50.
THAT'S A DECLINE OF 1.5%.
12.20 PER OUNCE.
SILVER IS LOWER TODAY BY 46.
COPPER IS HIGHER.
PALLADIUM AND PLATINUM IN
NEGATIVE TERRITORY. WE HAVE SEEN GOLD MOVE HIGHER ON
DAYS WHEN THE STOCKS ARE LOWER
AND JUST THE OPPOSITE AND SEEM
TO HAVE THAT OCCURRING TODAY.
>> BOND MARKET WITH RICK
SANTELLI AT THE CME.
>> EVEN THOUGH THE AUCTION WAS A
WHILE AGO AND DELAYED FROM
YESTERDAY, YOU SEE THE DRIFT
HIGHER.
REALLY NOT IMPEDED IN ANY WAY BY
THE REALLY REALLY POOR AUCTION.
IF YOU LOOK AT A DECEMBER 31st,
2014 START TO TENS YOU CAN SEE
THE TECHNICIANS IN HINDSIGHT
WERE RIGHT.
WE HELD THE 160s, MAKES SENSE.
SEE THE TWO DOUBLE BOTTOMS ON
THE CHART.
REMEMBER TENS ARE UP TWO ON THE
WEEK, UP FIVE ON THE DAY.
KNOW WHO THE WINNER IS UP ON THE
WEEK? TWO YEARS UP SIX BEEPS ON THE
WEEK.
LAST CHART, THIS IS A FEBRUARY
8th THIS YEAR START TO THE
DOLLAR INDEX.
THE POUND IS GETTING POUNDED.
THE EURO HAS SLIPPED MANY
HANDLES. THE BENEFICIARY, OF COURSE THE
DOLLAR INDEX, WHICH HAD QUITE A
NICE TURN AROUND IN THE
REMAINING DAYS OF FEBRUARY.
MELLAS WHY LEE,ISSA LEE, BACK TO YOU.
>> WE'LL TELL YOU WHAT CHIPOTLE
IS DOING NOW TO GET CUSTOMERS TO
COME BACK AND ASKING ANALYSTS IF
THAT WILL WORK.
THAT'S NEXT ON "POWER LUNCH."
Thanks man.
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Imagine where it will take you.
SO WHAT ELSE IS NEW? HOW'S YOUR
MOTHER? UMM..SHE'S DOING GOOD.
SHE NEEDS MORE CARE THOUGH. SHE WANTS
TO STAY IN HER HOUSE.
I DON'T KNOW EVEN WHERE TO START WITH THAT.
FIRST, LET'S TAKE A LOOK AT YOUR
FINANCIAL PLAN
AND SEE WHAT WE CAN DO. OK, SO WE'VE
GOT...
WE'LL LISTEN. WE'LL TALK. WE'LL
PLAN. BAIRD.
>>> WELCOME BACK TO "POWER
LUNCH." I'M TYLER MATHISEN.
A CHECK ON THE MARKET.
THE DOW, THE S&P AND THE NASDAQ
POSTING SLIGHT GAINS THERE.
REALLY THE MOST MINOR OF GAINS
FOR THE INDUSTRIALS.
LITTLE BIT GREATER IN PERCENTAGE
TERMS FOR THE S&P AND THE NASDAQ
COMPOSITE. THE AVERAGE IS UP ABOUT 2% THIS
WEEK OVERALL.
OIL MEANTIME UP 5% THIS WEEK.
THERE YOU SEE IT AT 33.27, UP 20
CENTS ON THE DAY.
BRENT CRUDE UP 30 CENTS.
LOOK AT THE WIDELY HELD STOCKS.
ALPHABET, BASICALLY THE COMPANY
FORMERLY KNOWN AS GOOGLE STILL
OWNS GOOGLE $724.
DOWN $4 ABOUT TWO-THIRDS OF 1%.
APPLE UP ABOUT A FIFTH A PERCENT
AS ITS BATTLE WITH THE FBI GOES
ON AS DOES ITS ANNUAL
SHAREHOLDERS MEETING OUT IN
CUPERTINO. MICROSOFT OFF ABOUT 2% AND J
JPMORGAN CHASE UP ONE AND A
THIRD.
TO SUE HERERA FOR A NEWS UPDATE.
>> AS YOU SAW, JUST A SHORT
WHILE AGO, HERE ON CNBC NEW
JERSEY GOVERNOR CHRIS CHRISTIE
ENDORSING DONALD TRUMP FOR
PRESIDENT SAYING HE WILL DO WHAT
NEEDS TO BE DONE TO PROTECT
AMERICAN PEOPLE AND CREATE JOBS.
AND GIVES REPUBLICANS THE BEST
CHANCE TO BEAT HILLARY CLINTON.
CEDRIC FORD, THE MAN WHO STORMED
THE KANSAS FACTORY WHERE HE
WORKED AND SHOT 15 PEOPLE
KILLING THREE BEFORE HE HIMSELF
WAS KILLED HAD JUST BEEN SERVED
WITH A PROTECTIVE ORDER THAT
PROBABLY TRIGGERED THAT ATTACK.
THE CEO OF EXCEL WHERE THAT
ATTACK TOOK PLACE HAD THIS TO
SAY. >> OUR HEARTS GO OUT TO OUR
EMPLOYEES AND THEIR FAMILIES WHO
ARE ENDURING THIS TRAGEDY.
WE ARE FULLY COOPERATING WITH
THE LAW ENFORCEMENT AGENCIES AND
THE RED CROSS.
OUR INTERNAL TEAMS ARE FULLY
ENGAGED IN CRISIS MANAGEMENT.
>> FIFA ELECTING JIANI FROM
SWITZERLAND TO SUCCEED SEPP
BLATTER AS PRESIDENT. HE DEFEATED HIS NEAREST RIVAL
THE SHEIKH OF BAHRAIN IN A
SECOND ROUND OF BALLOTING
COLLECTING 115 OF 2 07 VOTES
CAST. >>> EVEN FLOW RECALLING ABOUT
56,000 COMBINATION BOOSTER SEATS
OVER A CONCERN THAT CHILDREN MAY
ACCESS THE HARNESS ADJUSTER
BUTTON AND LOOSEN IT.
IT RECALLS SEATS MADE BEFORE
JULY 29th.
THAT'S THE CNBC NEWS UPDATE THIS
HOUR. BACK TO YOU, BRIAN.
>> SUE, THANK YOU VERY MUCH.
>>> YOU'RE GOING TO LOOK RIGHT
NOW AT A LONG LINE OF CUSTOMERS.
THOSE LONG LINE OF CUSTOMERS ARE
WAITING TO ORDER BURRITOS AT
CHIPOTLE. WE SHOT SOME OF THIS FOOTAGE
YESTERDAY.
LOOK AT THAT. DOES THIS LOOK LIKE A RESTAURANT
JUST SUFFERED A NATIONWIDE
SAFETY SCARE TO YOU?
>> ON A NORMAL DAY BEFORE THE
SCARE, THERE WILL BE A LINE
GOING ALL THE WAY TO THE DOOR
YOU KNOW. THE SCARE HAPPENED IT WAS A
GHOST TOWN IN HERE.
NOW THAT EVERYTHING IS SLOWLY STARTING TO COME BACK TO PLAY
GOT A GOOD CROWD.
>> IF THE HEALTH SCARE WAS A LOT
BIGGER, I WOULD STAY AWAY FROM
IT. AS OF NOW, I'M GOOD.
>> YOU SEE HOW THEY MAKE THE
FOOD THERE IN FRONT OF YOU.
THAT GIVES ME SOME KIND OF
FAITH, BECAUSE THERE IS
TRANSPARENCY IN THAT. >> I DIDN'T FIND IT TOO SCARY TO
COME HERE. >> A BIG PART OF THE COMEBACK
PLAN IS FREE FOOD.
ONE OF OUR PRODUCERS WHO LIVES
NEARBY GOT THIS COUPON IN A
MAIL. FREE CHIPS AND SALSA WITH A
BURRITO BOWL --
>> CHIPS AND SALSA FREE NOT THE
BURRITO, WHICH IS PICTURED UNDER
FREE AS IN FREE.
>> FREE MEANS FREE.
THIS IS FREE.
>> THE CHIPS AND SALSA ARE FREE.
>> I HAVE A FEELING THAT MELISSA
LE COULD LEE COULD GET A FREE BURRITO.
CMG UP 10% IN THE PAST MONTH.
BOB DARINGTON, BOB, OKAY, IT IS
GREAT NEWS.
WE SAW LONG LINES.
ARGUABLY IT IS ONE LOCATION. ARE YOU SENSING THAT PEOPLE ARE
BACK EN MASSE AT CHIPOTLE?
>> WHEN YOU LOOK AROUND THE
COUNTRY, CLEARLY THE EAST COAST
AND WEST COAST HAVE BEEN THE
MOST NEGATIVELY IMPACTED BY ALL
THE FOODBORNE ILLNESS SCARES.
HERE IN THE SOUTH, THE MIDWEST,
YOU KNOW I DON'T THINK TRENDS
HAVE BEEN MATERIALLY NEGATIVELY
AFFECTED. BUT THE CLOSER YOU GET TO THE
POINTS AND WHERE THOSE INCIDENTS
OCCURRED, THAT'S WHERE THE
COMPANY IS WORKING HARDEST TO
TRY TO WIN BACK THE CUSTOMERS.
>> GIVING STUFF AWAY IS NICE
WHEN YOU'RE THE RECIPIENT.
YOUR PROFIT MARGIN MAY BE ZERO.
IS THIS A GOOD STRATEGY OR CAN
WE EXPECT A MARGIN HIT FOR
CHIPOTLE AS THEY HAVE TO
DISCOUNT PROMOTE, ET CETERA.
>> THAT'S FAIR. IF YOU REMEMBER, THE COMPANY
PROVIDED GUIDANCE FOR THIS YEAR.
WHICH IS LOWER STORE LEVEL
MARGINS AND LOWER EARNINGS
GUIDANCE. WHILE THEY DON'T PROVIDE A
SPECIFIC NUMBER, THEY HAVE MADE
US ALL ESSENTIALLY THINK THROUGH
THE NUMBERS AND SLASH OUR
NUMBERS PRETTY SIGNIFICANTLY. THE MOST IMPORTANT THING, BRIAN,
IS THEY NEED TO WIN BACK TRAFFIC
TRENDS. THEY NEED TO CHANGE CONSUMER
BEHAVIOR. AND LITERALLY I THINK IT IS FAIR
AND REASONABLE TO YOU KNOW USE
THAT CARROT TO ULTIMATELY TO TRY
AND DRIVE TRAFFIC BACK IN THE DOOR.
WE WANT TO BE CLEAR IT IS FREE
CHIPS AND SALSA AFTER YOU BUY A
BURRITO. SO THE CHIPS AND SALSA TO THEM
COSTS LESS MONEY AND ARE
EXTREMELY HIGH MARGIN PRODUCTS
BECAUSE THEY'RE ALREADY MADE.
THAT'S NOT MY QUESTION.
MY QUESTION IS ISN'T IT WAY TOO
EARLY TO EVEN SEE ANY PROGRESS
IN TERMS OF THE CUSTOMER TRAFFIC
THAT IS GOING BACK TO CHIPOTLE.
YOU, AS I RECALL BOB, GOT ON
THE BANDWAGON QUITE EARLY ON
INTO THE E. COLI SCARE SAYING
THINGS WILL TURN AROUND VERY
QUICKLY AND HERE WE ARE TODAY
SAYING ARE THINGS EVEN TURNING
AROUND RIGHT NOW.
>> YOU BET.
THE PROBLEM, MELISSA, IS THAT IF
YOU REMEMBER WHEN THEY HAD ON
TOP OF THE E. COLI I THINK THEY
HAD THREE DIFFERENT
ANNOUNCEMENTS OF INCIDENTS
SCATTERED THROUGHOUT THE
COUNTRY.
AND THEN ON TOP OF THAT THEY
ADDED ON THE NOROVIRUS INCIDENT
IN BOSTON.
AND LITERALLY THAT KIND OF BROKE
THE BACK AND WHEN YOU THROW ON
TOP, JUST FOR THE ICING ON THE
CAKE, THE U.S. JUSTICE
DEPARTMENT DOING A CRIMINAL
INVESTIGATION INTO THE COMPANY'S
REPORTING OF THESE INCIDENTS,
ALL OF A SUDDEN YOU WIND UP WITH
A REOWNED NEGATIVE TONE TO THE
SALES AND EARNING.
THE MOST IMPORTANT THING THEY
NEED TO DO NOW.
I THINK THEY -- MANAGEMENT
UNDERSTANDS. MAKE IT SAFE MAKE IT DESIRABLE
TO RETURN.
AND THEN ULTIMATELY PUT THE
CARROT OUT THERE AND TRY TO
CHANGE BEHAVIOR.
OVER TIME YOU KNOW ULTIMATELY
THAT COULD WIN BACK.
>> HOW LONG -- YOU SAY OVER
TIME. HOW LONG JUST GUESSING HOW
LONG BEFORE THE FOOT TRAFFIC,
THE SAME STORE SALES GET BACK TO
WHERE THEY WERE PRETHE SCARES.
>> THAT'S A REAL TOUGH CALL.
PART OF THE REASON I SAY THAT IS
BECAUSE, REMEMBER IF IN THE
FOURTH QUARTER THEIR COMP
TRENDS WERE DOWN 14.6%.
WE'RE MODELING THE TRAFFIC WILL
BE POSITIVE AGAINST THAT NUMBER
IN THIS CALENDAR YEAR.
HOWEVER, WE'RE MODELING COMPS UP
8 TO 10%.
WHICH SAYS THEY'RE STILL NOT BACK TO 100%.
IT MAY BE THE MIDDLE OF NEXT
YEAR IF THEY'RE FORTUNATE IF
THEY'RE LUCKY TO GET BACK TO
100%. >> BOB, WE'LL TENDEND IT HERE.
THANK YOU FOR JOINING US.
INTEREST
THERE IS TWO COUPONS.
I WANT TO GET OUT THERE, GO FOR
THE FREE BURRITO -- WE DO HAVE
SOME NEWS HERE UNITED
TECHNOLOGIES IS HALTED.
DON'T HAVE ANY MORE DETAILS THAN
THAT, BUT HALTED.
LAST TRADE 98.44.
>> FOR NEWS PENDING?
>> WE DON'T KNOW.
DOESN'T LOOK LIKE IT IS
VOLATILITY BECAUSE THE STOCK IS
NOT AT LAST TRADE ONLY UP .4%.
THIS IS NOT A LIVE QUOTE.
THIS STOCK HAS BEEN HALTED.
THIS AFTER BASICALLY IT SAID
THERE IS NO DEAL.
THERE WON'T BE A DEAL WITH
HONEYWELL AT THIS POINT.
>> THEY HAVE BEEN LOOKING AT
SOME DIVESTITURES, CORRECT?
OR GETTING RID OF SOME UNITS --
>> THE STOCK IS UP BUT I THINK
WHAT WE'RE WAITING TO SEE IS IF
THERE WAS -- IT IS A HALTED FOR
NEWS PENDING. SO LET'S SEE WHAT THE NEWS IS.
WE'RE WONDERING IF THE NEWS THAT
DAVID FABER BROKE LAST WEEK --
WAS IT ONLY LAST WEEK OR THIS
WEEK? IT IS FRIDAY.
IT COULD HAVE BEEN THIS WEEK.
>> BIG WEEK.
>> THEY HONEYWELL AND UNITED
TECHNOLOGIES HAD HAD MERGER
TALKS AND COME OUT AND UNITED
TECHNOLOGIES SAYS NO WAY TOO
DIFFICULT WITH THE DOJ.
WE'LL WAIT TO SEE WHAT IS GOING
ON. TO JOSH LIPTON WITH MORE ON
APPLE'S INVESTOR DAY.
>> APPLE SHAREHOLDER JUST
WRAPPING UP HERE IN CUPERTINO,
CALIFORNIA.
APPLE CEO TIM COOK WAS HERE.
A LOT OF SUPPORT FOR COOK IN
THIS ROOM.
HE CAME INTO THE ROOM TO A
STANDING OVATION.
SOME OF THE DIRECTORS WERE IN
THE ROOM AS WELL.
AL GORE BOB IGER WERE IN
ATTENDANCE.
HE ADDRESSED THE BIG ISSUE
CLEARLY ON TOP OF EVERYONE'S
MIND WHICH IS THIS FIGHT
BETWEEN APPLE AND THE U.S.
GOVERNMENT, COOK MENTIONED,
LISTEN, THIS IS A HARD FIGHT, A
TOUGH FIGHT, BUT JUST BECAUSE IT
IS CHALLENGING DOESN'T MEAN
THEY'RE PREPARED TO SHY AWAY
FROM IT.
AND HE FOUND SOME NEW ALLIES IN
THE ROOM AS WELL.
REPRESENTATIVES HERE FROM THE
ELECTRONIC FRONTIER FOUNDATION,
THEY STOOD UP AND NOTED THEY'LL
BE FILING A BRIEF IN SUPPORT OF
APPLE. THE REVEREND JESSE JACKSON WAS
HERE, IN THE ROOM TALKED TO THE
MEDIA AFTERWARDS CALLED COOK A
MAN OF INTEGRITY AND CHARACTER,
SAID HE SUPPORTED COOK IN THIS
FIGHT WITH THE U.S. GOVERNMENT
THIS AND HAD BROADENED OUT
BEYOND APPLE.
A NUMBER OF TECH GIANTS,
MICROSOFT, FACEBOOK, GOOGLE'S
PARENT COMPANY, ALPHABET, THOSE
THREE COMPANIES FILING A JOINT
BRIEF IN SUPPORT OF APPLE.
BESIDES THAT NEWS IT WAS A
STANDARD SHAREHOLDER VOTE
DIRECTORS WERE ELECTED, THE
AUDITOR RATIFIED COMPENSATION,
BUT THE STORY OF THE DAY WAS
THAT FIGHT.
INSIDE AND OUTSIDE THE ROOM
SUPPORT, THE SHAREHOLDER I
TALKED TO CAME FROM ALL OVER.
I TALKED TO ONE GUY WHO DROVE
EIGHT HOURS FROM L.A. ANOTHER
GUY WHO CAME IN FLEW FROM
NASHVILLE, A LOT OF SUPPORT FOR
COOK.
BACK TO YOU. >> OUTSIDE, THOUGH OF THIS FBI
ISSUE WERE THERE QUESTIONS ABOUT
APPLE'S PIPELINE OF PRODUCTS
BECAUSE EVEN WITHOUT THIS ISSUE
A LOST PEOPLET OF PEOPLE SAYING APPLE
WAS A STOCK DIFFICULT TO INVEST AND
THE STOCK HAS NOT GONE FAR AND
THERE AREN'T ANY PROMISES RIGHT
NOW OF A FIRM PRODUCT LINE IN
THE FUTURE BEYOND THE iPHONE.
>> BEYOND THE iPHONE HE DID GET
SOME QUESTIONS ABOUT THAT
PRODUCT PIPELINE.
APPLE IS DIFFERENT THAN ITS
RIVALS AS YOU WELL KNOW.
DOESN'T TELEGRAPH THE MOVES LIKE
MAYBE SOME OF ITS COMPETITORS
DO.
WHEN HE WAS ASKED, FOR EXAMPLE,
ABOUT THAT MUCH REPORTED
ELECTRIC CAR, HE SIMPLY SAID
LISTEN, REMEMBER THAT FEELING
YOU GOT WHEN YOU WERE A KID ON
CHRISTMAS EVE, HOW EXCITED YOU
WERE, BEFORE OPENING A PRESENT.
YOU HAVE THAT FEELING FOR A
WHILE. NOT FEELING TOO MUCH IN TERMS OF
WHAT COULD BE COMING BUT DID
MAKE THE CASE AS HE HAS, LISTEN
THEIR PRODUCT PORTFOLIO IS
STRONG.
YOU TALKED ABOUT THE iPHONE THE
GROWTH THEY HAVE SEEN HERE BUT
ALSO LISTEN A LOT OF USERS
SELLING OLDER MODELS AND
POTENTIAL HEAD ROOM HE TALKED
ABOUT THAT RECORD NUMBER OF
ANDROID SWITCHERS, TALKED ABOUT
THE GROWTH IN CHINA.
SAID LISTEN THERE MAY BE
HICCUPS FROM QUARTER TO QUARTER,
LONG TIME BULLISH IN CHINA.
CHINESE CONSUMERS LOVE OUR
PRODUCTS, 61 BILLION IN REVENUE
IN GREATER CHINA LAST FOUR
QUARTERS.
NAME ANOTHER COMPANY HE SAID
THAT CAN BOAST THAT AND FUTURE
MARKETS LIKE INDIA, THEY GET 1.5
BILLION OF REVENUE LAST YEAR BUT
HE SEES INDIA TODAY AS WHAT
CHINA WAS TEN YEARS AGO MEANING
A YOUNG POPULATION AND A
POPULATION THAT IS RAPIDLY MOVING INTO THE MID LE CLASS.
HE REAFFIRMED WHAT HE SAID ABOUT
INDIA, THEY'RE PUTTING A LOT OF
RESOURCES INTO THAT AREA.
>> VERY QUICKLY IT WOULD BE
INTERESTING TO KNOW I DO NOT,
WHAT AL GORE WHO SPENT MANY
MANY YEARS IN GOVERNMENT THINKS
OF THE TUSSLE BETWEEN THE FBI
AND APPLE.
HAS HE BEEN HEARD FROM ON IT?
>> I DON'T BELIEVE SO TYLER.
AL GORE WAS IN ATTENDANCE.
I DON'T BELIEVE HE'S MADE A
COMMENT ON THAT.
>> I HAVEN'T SEEN ANYTHING.
>> I'M SURE -- NO I HAVE NOT
SEEN THAT.
LISTEN IT IS A DIFFICULT
POSITION.
WE HAVE ISSUES OF PRIVACY AND
SECURITY ON ONE HAND NATIONAL
SECURITY ON THE OTHER.
BUT TIM COOK TODAY, IN FRONT OF
HIS BOARD, WHICH INCLUDED BOB
IGER AND AL GORE MADE THE CASE
THIS IS A TOUGH POSITION BUT
ONE THEY'RE PREPARED TO STAND
BY. THIS IS GOING TO BE HEARD IN
RIVERSIDE, CALIFORNIA, MARCH
22nd, THE COURT DATE.
>> ALL RIGHT JOSH THANK YOU
VERY MUCH. LET'S LOOK AT THE DOW IF WE
COULD. IT IS NOW SLIPPED INTO NEGATIVE
TERRITORY AS HAS THE S&P 500 AT
THE LAST FLIP OF THE CHART
THERE.
NOW BASICALLY FLAT.
BUT THE DOW SLIPPING EVER SO
SLIGHTLY --
>> BIGGEST DRAGS ARE WALMART,
COCA-COLA
COCA-COLA. >> BIG NEWS FOR THE BULLS,
FINANCIALS ARE PARTICIPATING IN
THE MARKET.
THEY'RE STILL UP BY ABOUT 1.1%.
WE ARE SEEING A LOT OF THESE
SAFETY TRADES SORT OF PULL BACK
CONSUMER STAPLES, YOU MENTIONED
SOME OF THEM IN THE DOW DRAGGING
THE DOW DOWN DOWN BY 1.6% AND
UTILITIES DOWN 2.6%.
>> BACK TO APPLE FOR A SECOND.
I WOULD LOVE TO HEAR FROM OUR
VIEWERS AND AUDIENCE WHICH IS
BASICALLY THIS --
>> HOLD ON.
>> -- TOM.
AND CHRIS KNUTE, CAN'T MISS HIM.
WE'RE HERE TO TALK ABOUT THE
GREAT THINGS YOU GUYS ARE DOING
AT THIS FACILITY.
BUT BEFORE I BEGIN, I DO WANT TO
SAY A FEW WORDS ABOUT YET
ANOTHER MASS SHOOTING WE HAD TO
ENDURE.
YOU MAY HAVE HEARD A GUNMAN IN
HESTON, KANSAS, THIS MORNING I
SPOKE WITH MAYOR KAUFFMAN AND
EXPRESSED OUR DEEPEST
CONDOLENCES FOR THE VICTIMS,
THEIR FAMILIES AND THE COMMUNITY
AS A WHOLE.
THIS COMES AFTER LAST WEEKEND'S
RAMPAGE IN KALAMAZOO, MICHIGAN.
WHERE SIX MORE INNOCENT
AMERICANS WERE GUNNED DOWN.
AND THESE ACTS MAY NOT DOMINATE
THE NEWS TODAY, BUT THESE ARE
TWO MORE COMMUNITIES IN AMERICA
THAT ARE TORN APART BY GRIEF.
AND I FELT IT WAS IMPORTANT FOR
ME TO SAY SOMETHING TODAY
BECAUSE SOMEHOW AS I SAID BEFORE
THIS BECOMES ROUTINE.
THESE SORT OF MASS SHOOTINGS
TAKING PLACE.
WE CANNOT BECOME NUMB TO THIS.
AND ANYBODY WHO SAYS THEY WANT
TO KEEP THE AMERICAN PEOPLE SAFE
HAS TO CARE ABOUT THIS BECAUSE IT IS HAPPENING IN FAR TOO MANY
TOWNS, AND AFFECTING FAR TOO
MANY INNOCENT AMERICANS AND THERE ARE SOME THINGS WE CAN DO
ABOUT IT.
AND RIGHT NOW THIS CONGRESS MAY
NOT HAVE AN APPETITE TO DO
SOMETHING ABOUT IT BUT WE NEED
ONE THAT DOES.
AS LONG AS I HOLD THIS OFFICE
I'M GOING TO KEEP ON BRINGING
THIS UP.
EVEN IF IT IS NOT GETTING THE
SAME ATTENTION THAT IT SHOULD.
AND I WISH I DIDN'T HAVE TO KEEP
ON TALKING ABOUT IT.
LORD KNOWS I WISH I DON'T
HAVE -- I WISH I DIDN'T HAVE TO
MAKE THESE PHONE CALLS AND
COMFORT FAMILIES.
THE REAL TRAGEDY IS THE DEGREE
TO WHICH THIS HAS BECOME
ROUTINE.
SO I HOPE ALL OF YOU PAY
ATTENTION TO THIS, I HOPE THE
MEDIA PAYS ATTENTION TO THIS.
ONCE A WEEK WE HAD SHOOTINGS AND
IT DOESN'T DOMINATE THE NEWS.
THAT'S FWTGOT TO CHANGE.
SO THANK YOU FOR ALLOWING ME TO
TALK ABOUT THAT FOR A MOMENT.
THE TRUTH IS THOUGH THAT EVEN
WHEN WE GOT SOME REAL CHALLENGES
OUT THERE, THE REASON I'M HERE
TODAY, IS BECAUSE SAVE IS
TELLING A STORY ABOUT THE
AMAZING WORK THAT PEOPLE ALL
ACROSS THIS COUNTRY HAVE DONE TO
BRING AMERICA BACK FROM ONE OF
THE WORST FINANCIAL CRISES IN
OUR HISTORY.
SO THINK ABOUT IT.
SOMETIMES PEOPLE ALSO FORGET
WHERE WE HAVE BEEN AND IF YOU
FORGET WHERE YOU'VE BEEN
SOMETIMES YOU DON'T KNOW WHERE
YOU NEED TO GO.
SEVEN YEARS AGO, THE GROUND WE
WERE STANDING ON WAS AN EMPTY
PLOT OF SWAMP LAND.
I DON'T KNOW IF GATORS MAKE IT
UP THIS FAR, BUT, YOU KNOW IT
WAS NOT SOME PLACE YOU WOULD
WANT TO BE WANDERING AROUND.
IT HAD BEEN IGNORED FOR MORE
THAN A DECADE SINCE THE NAVY
BASE HERE CLOSED.
BACK THEN ALL AROUND US THE
ECONOMY WAS IN A FREE FALL.
800,000 AMERICANS WERE LOSING
THEIR JOBS EVERY SINGLE MONTH.
THAT'S ALMOST THE ENTIRE
POPULATION OF JACKSONVILLE
JOINING THE UNEMPLOYMENT LINE
EVERY FEW WEEKS.
FAMILIES LOST THEIR HOMES.
FAMILIES LOST THEIR SAVINGS.
AND PEOPLE HERE IN FLORIDA WERE
ESPECIALLY HARD HIT, THE
UNEMPLOYMENT RATE HERE IN
FLORIDA HIT 11.2% WHICH WAS EVEN
HIGHER THAN THE NATIONAL
AVERAGE. FAST-FORWARD TODAY.
BUSINESSES LIKE YOURS HAVE
CREATED JOBS FOR 71 STRAIGHT
MONTHS.
14 MILLION NEW JOBS OVERALL.
WE CUT THE UNEMPLOYMENT RATE BY
MORE THAN HALF.
NATIONALLY THE HIGH WAS 10%.
IT IS NOW DOWN TO 4.9%.
AND HERE IN JACKSONVILLE, IT IS
EVEN LOWER.
OUR AUTO INDUSTRY JUST HAD ITS
BEST YEAR EVER.
WE CREATED MORE THAN 900,000 NEW
MANUFACTURING JOBS IN THE PAST
SIX
YEARS. OUR HIGH SCHOOL GRADUATION RATE
IS AT AN ALL TIME HIGH NEARLY
18 MILLION AMERICANS HAVE GAINED
HEALTH CARE COVERAGE THOUGH HERE
IN FLORIDA THERE ARE A WHOLE
BUNCH OF FOLKS WHO HAVEN'T
BECAUSE THE STATE HASN'T
EXPANDED MEDICAID.
THAT'S ANOTHER TOPIC.
BUSINESSES LIKE SAVE ARE LEADING
A CLEAN ENERGY REVOLUTION
CREATING JOBS AND MAKING OUR
PLANET SAFER AND MORE SECURE AT
SAME TIME.
NOW, YOU DON'T HEAR A LOT ABOUT
THIS FROM THE FOLKS WHO ARE ON
THE CAMPAIGN TRAIL.
THEY'RE SPENDING ALL THEIR TIME
TALKING ABOUT AMERICA.
I DON'T KNOW WHEN IT BECAME
FASHIONABLE TO DO THAT.
>> WE'RE GOING TO BREAK AWAY
FROM THE FRIEZEPRESIDENT NOW.
AN UPDATE ON WHAT IS GOING ON AT
UNITED TECHNOLOGIES WHICH IS
STILL HALTED. TO SUE HERERA.
>> THANK YOU VERY MUCH MELISSA.
BASICALLY UTX PUT OUT A
PRESENTATION. THE STOCK IS STILL HALTED.
BUT IN THE EXECUTIVE SUMMARY IT
IS BASICALLY A REITERATION WHAT
HE SAID ON CNBC WHAT THE CEO
SAID ON CNBC.
THAT UTC OPPOSES A BYCOMBINATION
WITH HONEYWELL.
AND CREATE INSURMOUNTABLE, THEIR
WORD CONDITIONS TO COMPLETE A
TRANSACTION. THE CEO SAYS HE SEES SIGNIFICANT
REGULATORY CHALLENGES NOT ONLY
IN THE U.S. BUT ALSO IN THE EU
CHINA, BRAZIL CANADA AND
ELSEWHERE. AND THERE BE WITH A NEGATIVE
IMPACT ON CUSTOMERS AND NEGATIVE
SCENARIO AS TO DO WITH
FINANCIAL, OPERATIONAL, CUSTOMER
AND TALENT IMPACTS REGARDLESS OF
WHETHER OR NOT THAT DEAL WAS
EVENTUALLY COMPLETED.
UNITED TECHNOLOGIES LOOKS LIKE IT JUST STARTED TRADING AGAIN.
AND THAT'S THE YEAR TO DATE --
IT IS STILL HALTED.
THAT'S THE INTRADAY.
SO WE'LL GO BACK TO YOU GUYS AND
WE'LL KEEP YOU POSTED WHEN THE
STOCK DOES OPEN UP.
>> OFFICIAL STATEMENT FROM UTX
ON HONEYWELL'S PROPOSAL.
IT DONALD TRUMP, WHO IS BACK ON
STAGE AGAIN AFTER BEING ENDORSED
BY NEW JERSEY GOVERNOR CHRIS
CHRISTIE.
>> A PRACTICAL MONOPOLY BECAUSE
COMPANIES AREN'T ALLOWED TO COME
IN VERY EASILY.
THEY PRACTICALLY CAN'T COME IN.
SO THEY SAID OH BE MORE
SPECIFIC.
I DON'T ARE TO BE SPECIFIC.
WHAT IS GOING TO HAPPEN IS
YOU'RE GOING TO CREATE OPEN
BIDDING BY GETTING RID OF THE
BORDERS AROUND EACH STATE AND
THE LINES RESTRICTIVE LINES
AROUND EACH -- YOU ARE GOING TO
HAVE SO MUCH COMPETITION.
YOU'RE GOING TO HAVE SO MUCH
BIDDING THAT YOU CAN'T REALLY
SAY IT IS ONE PLAN.
YOU CAN HAVE HUNDREDS OF
DIFFERENT OPTIONS, YOU CAN HAVE
HUNDREDS OF DIFFERENT PLANS, IT
IS GOING TO BE SO BEAUTIFUL.
AND YOU'RE GOING TO PAY FAR LESS
MONEY.
FAR LESS MONEY.
SO I WANT TO JUST MENTION JUST A
COUPLE OF WORDS ABOUT SENATOR
CRUZ, WHO ACTUALLY WAS -- I
THOUGHT -- I THOUGHT -- I
THOUGHT HE WAS BETTER.
YOU KNOW LAST NIGHT I THOUGHT
THE DEAL OF THE NIGHT WAS WHEN I
LOOKED OVER TO RUBIO AND I SAID
YOU REMEMBER YOU'RE A CHOKER.
AND WE DON'T WANT CHOKERS IN OUR
ADMINISTRATION. I CAN TELL -- I SAID YOU'RE A
CHOKER AND YOU'RE A LIAR.
AND I HAVE HAD, YOU KNOW I HAD
A LOT OF DIFFICULTIES WITH TED.
HE DOES LIES.
I DEALT WITH MUCH TOUGHER, A GUY
LIKE RUBIO IS A BABY.
A GUY LIKE TED IS TOUGHER.
HE'S TOUGHER.
HE'S ACTUALLY SMARTER IN ALL
FAIRNESS. TED IS SMARTER.
I HAVE TO GIVE THAT -- HE'S A
SMARTER PERSON THAN RUBIO.
BUT I DEAL WITH PEOPLE.
LAST NIGHT IT WAS MENTIONED, BY
THE WAY, MENTIONED, MY FATHER
GAVE ME $200 MILLION, I WISH.
I WISH.
I WOULD BE RIGHT NOW WORTH $500
TRILLION IF THAT WERE THE CASE.
FIRST THING I DID, I GET BACK I
GET A CALL FROM MY SISTER A
FANTASTIC PERSON AND THEN A CALL
FROM MY BROTHER WHO IS A
FANTASTIC PERSON AND THEY SAID
HEY, DONALD THAT'S NOT TRUE.
WHY DID THEY SAY THAT?
AND HE COPIED IT YOU HAVE THE
FAILING NEW YORK TIMES, IT IS A
FAILING NEWSPAPER, I HATE TO
TELL YOU LIKE SERIOUSLY
FAILING.
AND THEY WROTE AN ARTICLE AND
PUT SOMETHING IN ABOUT $200
MILLION. BELIEVE ME I GET VERY VERY
LITTLE AND I BUILT IT INTO MANY
MANY, MANY BILLIONS OF DOLLARS
THAT I'M VERY PROUD OF IT.
BUT -- I JUST -- I JUST THINK --
I JUST THINK WE HAVE TO
CORRECT -- WE HAVE TO CORRECT
THE RECORD. THANK YOU.
I LOVE YOU.
THANK YOU.
>> TRUMP, TRUMP, TRUMP, TRUMP,
TRUMP, TRUMP, TRUMP, TRUMP!
>> IT'S RUBIO!
UNBELIEVABLE.
BUT WE LIKE TO CORRECT -- WE
LIKE TO CORRECT THE RECORD.
BUT, YOU KNOW I SPENT A LOT OF
TIME IN LAREDO TEXAS, RIGHT ON
THE BORDER.
AND I WAS INVITED BY THE BORDER
GUARDS, AND BY THE WAY, I GOT
ENDORSED, TALK ABOUT CHRIS, BY
SHERIFF JOE ARPAIO.
AND THE ONE THING YOU KNOW ABOUT
SHERIFF JOE, HE'S THE TOUGHEST
GUY ON THE BORDER NO GAMES TO
BE PLAYED WITH SHERIFF JOE, WHO
PUTS PINK YOU KNOW WHAT ON HIS
PEOPLE THAT ARE THERE ILLEGALLY.
SHERIFF JOE DOES NOT PLAY GAMES.
EVERYBODY WANTED HIS
ENDORSEMENT. BUT THE TOUGHEST ONE ON THE
BORDER WAS ENDORSED BY SHERIFF
JOE. AND I THINK IT IS INCREDIBLE.
I WAS CALLED BY OUR BORDER
PATROL UNBELIEVABLE PEOPLE.
I GOT IT KNOW HIM WELL.
AND THEY SAID MR. TRUMP, I WAS
RUNNING, DOING WELL SINCE I
STARTED THIS WHOLE THING, I'VE
BEEN PRACTICALLY NUMBER ONE FOR
THE WHOLE TRIP.
PRACTICALLY NUMBER ONE.
AND NOW WE HAVE BIG LEADS.
PLEASE TEXAS, LET'S WIN TEXAS.
I WANT TO WIN TEXAS.
I WAS CALLED BY THE BORDER
PATROL AND THESE PEOPLE ARE
INCREDIBLE.
AND THEY WANT TO DO THEIR JOB.
THEY WANT TO DO THEIR JOB.
THAT'S WHY THEY CALL ME.
THEY SAY WOULD IT BE POSSIBLE
FOR YOU TO COME TO TEXAS TO
LAREDO? I SAID WELL I THINK SO YEAH
FINE, I'LL DO IT.
I WENT TO LAREDO AND MET WITH A
LOT OF THE BORDER PATROL FOLKS,
SOME OF THE TOP PEOPLE.
AND, MAN, ARE THEY -- THEY'RE
JUST INCREDIBLE SMART, TOUGH,
GREAT PEOPLE.
BY THE WAY, YOU KNOW WHO ELSE
ARE GREAT PEOPLE OUR POLICE ARE
GREAT PEOPLE.
THEY'RE BEING ABUSED.
OUR POLICE ARE BEING ABUSED.
OUR POLICE ARE INCREDIBLE
PEOPLE.
IN FACT I JUST TOOK PICTURES
BACKSTAGE, WHAT A GROUP OF PEOPLE YOU HAVE.
THEY'RE INCREDIBLE PEOPLE.
SO I JUST WANT TO -- WE HAVE TO
PUT OUT THE PLUG EVERY ONCE IN A
WHILE BECAUSE, YOU KNOW ONE BAD
INCIDENT, WHETHER IT IS A
MISTAKE OR SOMEBODY WAS JUST A
BAD APPLE AND PLAYED FOR WEEKS
AND WEEKS ON THE NEWS AND THE
THOUSANDS AND TENS OF THOUSANDS
OF GREAT JOBS THAT THEY DO THEY
DON'T GET APPRECIATED.
LET'S HEAR IT FOR THE POLICE.
SO I'M IN LAREDO, AND THEY'RE
TELLING ME HOW SAD IT IS BECAUSE
THEY CAN STOP IT.
WE NEED THE WALL WE WANT TO
HAVE THE WALL WE WANT TO STOP
THE DRUGS FROM POURING ACROSS.
WE'RE DOING TO STOP THE DRUGS.
AND THERE IS GOING TO BE A REAL
WALL, A REAL WALL.
I'M THE ONLY ONE WHO KNOWS HOW
TO BUILD IT.
ALL THE POLITICIANS, ALL TALK
NO ACTION NOTHING GETS DONE.
WHEN I SAID SELF-FUNDING BEFORE
THE BEAUTY OF THAT IS -- THE
BEAUTY OF SELF-FUNDING IS THAT
THE INSURANCE COMPANIES, THE
DRUG COMPANIES --
>> WANTED TO BRING YOU UP TO
DATE ON THE UTX SITUATION.
IT RESUMED TRADING AFTER BEING
HALTED.
YOU SEE THE STOCK IS TRADING
DOWN 11 CENTS.
14 CENTS, .1%.
BACK TO DONALD TRUMP.
>> JEB BUSH HAD $150 MILLION.
WHAT A WASTE OF MONEY.
I WOULD IMAGINE AT SOME POINT
BETWEEN HIM AND ROMNEY THEY'LL
BE SUPPORTING RUBIO.
DO YOU THINK?
I WOULD IMAGINE. ROMNEY
ROMNEY. HOW ABOUT THIS BEAUTY.
RUNS ONE OF THE WORST CAMPAIGNS
IN THE HISTORY OF POLITICS, HE
SHOULD HAVE BEATEN OBAMA EASILY.
AND FOR TWO MONTHS HE
DISAPPEARED, NOBODY KNOWS WHERE
HE WAS AND SAY WHAT YOU WANT
OBAMA WAS ON JAY LENO DAVID
LETTERMAN, EVERY SHOW AND ROMNEY
WAS LIKE A LOST SOUL.
I DON'T KNOW WHAT HAPPENED TO
THIS GUY. AND THEN HE COMES OUT AND TELLS
ME ABOUT MY TAXES.
AND ACTUALLY IF YOU KNOW THE
REAL STORY, HARRY REID SHAMED
HIM AND MADE HIM LOOK LIKE A
BABY AND HARRY REID PUSHED HIM
AND PUSHED HIM AND REALLY MADE
HIM LOOK SO STUPID AND WEAK.
WHEN DID ROMNEY FILE HIS RETURN?
WHAT IS TODAY'S DATE?
TODAY'S DATE IS WHAT?
COME ON TELL ME.
WHAT?
OKAY. SO, YOU KNOW WHEN ROMNEY FILED
HAD HIS RETURN SEPTEMBER --
SEPTEMBER 21st.
THAT'S A LONG TIME FROM NOW.
THIS GUY -- I ENDORSED HIM.
ABOUT TWO WEEKS LATE I SAID
HE'S NEVER GOING TO WIN.
NUMBER ONE, WHEN YOU WALK INTO A
STAGE, YOU CANNOT WALK LIKE A
PENGUIN. HE WALKED LIKE A PENGUIN.
I SAID THIS IS A PROBLEM.
SOMEBODY TELL HIM, TAKE SOME
STEPS.
ANYWAY ROMNEY TURNED OUT TO BE
A DISASTER.
I KNOW HE'LL SUPPORT RUBIO.
HE PROBABLY HAS NO CHOICE.
HONESTLY, IF HE WANTED TO
SUPPORT ME, I WOULD NOT ACCEPT IT HIS SUPPORT.
I ADMIT IT.
BECAUSE -- BECAUSE WE HAVE TO BE
HONEST, RIGHT? WE HAVE TO BE HONEST.
AND I WILL SAY THIS JUST TO
SHOW YOU GREAT LOYALTY, I
SUPPORTED JOHN McCAIN AND WE
LOST.
I SUPPORTED MITT ROMNEY AND WE
LOST. THIS TIME I SAID I'M GOING TO DO
IT MYSELF OKAY?
BIG DIFFERENCE.
SO THE BORDER PATROL IS
INCREDIBLE. AND THEY'RE TOLD TO STAND BACK
STAND BACK LET THE PEOPLE WALK
IN, LET THEM GO WHEREVER THEY'RE
GOING TO GO WE DON'T HAVE A
BORDER AND IF YOU DON'T HAVE A
BORDER, WE DON'T HAVE A COUNTRY,
FOLKS. WE DON'T HAVE A COUNTRY.
SO WE'RE GOING TO HAVE BORDERS
AND THEY'RE GOING TO BE SERIOUS
BORDER AND VERY VERY POWERFUL
BORDERS. AND IN THE CASE OF OUR SOUTHERN
BORDER, WE'LL HAVE A WALL.
IT IS GOING TO STOP.
BY THE WAY, WE ARE GOING TO HAVE
PEOPLE COME INTO OUR COUNTRY,
BUT THEY'RE COMING INTO OUR
COUNTRY LEGALLY.
LEGALLY.
WE WANT PEOPLE TO COME IN.
BUT THEY HAVE TO BE THE RIGHT
PEOPLE. WE DON'T WANT PEOPLE THAT HAVE
BEEN HERE LOOK AT KATE.
BEAUTIFUL KATE.
IN SAN FRANCISCO.
ILLEGAL IMMIGRANT, FIVE TIMES
CAME ACROSS THE BORDER AND SHOT
KATE.
JAMIL, FATHER BECAME A FRIEND OF
MINE AN INCREDIBLE FATHER AND
INCREDIBLE GUY, HIS SON WAS AN
UNBELIEVABLE YOUNG BOY.
GOOD STUDENT. GOING TO GO TO COLLEGE ON A
FOOTBALL SCHOLARSHIP.
MAYBE STANFORD.
AND HE WAS SHOT IN THE FACE
THREE TIMES BY A GUY THAT DID IT
BECAUSE HE WAS JUST TOLD TO
SHOOT SOMEBODY. THAT'S THE ONLY REASON THEY DID
IT. JUST GOT OUT OF JAIL.
AND YOU HAVE THE FEMALE VETERAN,
65 YEARS OLD, RECENTLY IN LOS
ANGELES, RAPED, SODOMIZED, AND
KILLED BY AN ILLEGAL IMMIGRANT.
WE'RE GOING TO BE DIFFERENT,
FOLKS. WE'RE GOING TO BE STRONG.
WE'RE GOING TO BE SMART.
WE'RE GOING TO BE TOUGH.
WE'RE NOT GOING TO PLAY GAMES
ANYMORE. WE'RE NOT GOING IT PLAY GAMES
ANYMORE.
NOT GOING TO HAPPEN.
SO WE'RE GOING TO BE THE
STRONGEST ON BORDERS AND WE'RE
GOING TO SET THE EXAMPLE FOR
OTHER PARTS OF THE WORLD.
AND WE'RE NOT TAKING IN SYRIANS
THAT WE HAVE NO IDEA WHO THEY
ARE, WHERE THEY COME FROM.
AND WE ALREADY HAVE TAKEN IN
THOUSANDS.
THOUSAND S.
AND WE DON'T EVEN KNOW WHERE
THEY ARE.
BUT YOU HAVE NO IDEA.
I SPOKE TO THE TOP LAW
ENFORCEMENT PEOPLE AND THEY
SAID, MR. TRUMP, THEY DON'T HAVE
PAPERS, THEY HAVE ABSOLUTELY NO
IDENTIFICATION.
AND DO YOU EVER NOTICE THE
MIGRATION -- I WANT TO HELP
PEOPLE. AND I SAY YOU BUILD A SAFE ZONE
AND I'LL GET OTHER PEOPLE TO PAY
FOR IT BECAUSE I DON'T WANT TO
PAY FOR IF IT.
WE OWE $19 TRILLION.
WE'RE NOT PAYING FOR IT.
BUT WE'LL GET THE GULF STATES TO
PAY. THEY HAVE MORE MONEY THAN
ANYBODY AND THEY'RE NOT SPENDING
THEIR MONEY.
WE HAVE GOT TO LOOSEN UP THEIR
WALLETS, FOLKS.
I'M VERY GOOD AT GETTING PEOPLE
TO DO THAT, BELIEVE ME.
I LIKE THE IDEA OF A SAFE ZONE.
BUT DO YOU EVER NOTICE THE
MIGRATION COMES ACROSS AND YOU
LOOK AND THERE ARE SO MANY YOUNG
MEN, RIGHT?
I SAY, WHERE ARE THE WOMEN?
WHERE ARE THE CHILDREN?
NOW, THEY'RE THERE, BUT NOT LIKE
THEY SHOULD BE.
SO LAW ENFORCEMENT IS TELLING
ME -- IS THAT A PROTEST?
OH, GOOD.
TURN THE CAMERAS.
GOOD.
I LOVE PROTESTERS.
LOOK AT THIS. LOOK AT THIS.
WE HAVE 10,000 PEOPLE HERE
TODAY. LOOK AT THIS.
IS THAT A PROTESTER?
PLEASE BE A PROTESTER.
THE ONLY WAYS WE CAN GET THE
CAMERAS TURNED -- THE ONLY
REASON THEY TURN THE CAMERAS IS
IF THERE IS A PROTESTER BECAUSE
THAT'S A BAD THING, RIGHT?
I'M GOING TO DEVELOP MY OWN PROTESTERS.
BUT LOOK -- IT CAN'T BE A
PROTESTER BECAUSE THOSE CAMERAS
WON'T TURN. THEY WON'T TURN.
I'LL TELL YOU WHAT I THINK THE
MEDIA IS AMONG THE MOST
DISHONEST GROUPS OF PEOPLE I'VE EVER MET.
THEY'RE TERRIBLE.
THE NEW YORK TIMES, WHICH IS
LOSING A FORTUNE, WHICH IS A
FAILING NEWSPAPER, WHICH
PROBABLY WON'T BE AROUND THAT
MUCH LONGER BUT PROBABLY
SOMEBODY WILL BUY IT AS A
TROPHY, KEEP IT GOING FOR A
LITTLE LONGER, BUT I THINK THE
"NEW YORK TIMES" IS ONE OF THE
MOST DISHONEST MEDIA OUTLETS
I'VE EVER SEEN IN MY LIFE.
THE WORST.
THE ABSOLUTE WORST.
THEY HAVE AN AGENDA THAT YOU
WOULDN'T BELIEVE.
AND THEY'RE RUN BY INCOMPETENT
PEOPLE.
THEY ARE TOTALLY INCOMPETENTLY
RUN. WASHINGTON POST, I HAVE TO TELL
YOU, I HAVE RESPECT FOR JEFF
BEZOS. BUT HE BOUGHT "THE WASHINGTON
POST" TO HAVE POLITICAL
INFLUENCE AND I GOT TO TELL YOU,
WE HAVE A DIFFERENT COUNTRY THAN
WE USED TO HAVE.
WE HAVE A DIFFERENT -- HE OWNS
AMAZON. HE WANTS POLITICAL INFLUENCE SO
THAT AMAZON WILL BENEFIT FROM
IT. THAT'S NOT RIGHT.
IF I BECOME PRESIDENT, OH DO
THEY HAVE PROBLEMS. THEY'RE GOING TO HAVE SUCH
PROBLEMS.
AND ONE OF THE THINGS I'M GOING
TO DO. THIS IS GOING TO MAKE IT TOUGHER
FOR ME AND I NEVER SAID THIS
BEFORE, BUT ONE OF THE THINGS
I'M GOING TO DO IF I WIN AND I
HOPE I DO AND WE'RE CERTAINLY
LEADING IS I'M GOING TO OPEN
OUR LABOR LAWS SLIBEL LAWS SO WE CAN
SUE
THEM AND WIN LOTS OF MONEY.
WE'RE GOING TO OPEN UP THOSE
LIBEL LAWS.
SO WHEN THE NEW YORK TIMES
WRITES A HIT PIECE, WHICH IS A
TOTAL DISGRACE OR WHEN THE
WASHINGTON POST, WHICH IS THERE
FOR OTHER REASONS WRITES A HIT
PIECE, WE CAN SUE THEM.
WITH ME THEY'RE NOT PROTECTED
BECAUSE I'M NOT LIKE OTHER
PEOPLE.
BUT I'M NOT TAKING MONEY.
I'M NOT TAKING THEIR MONEY.
WE'RE GOING TO OPEN UP THE LIBEL
LAWS FOLKS, AND HAVE PEOPLE SUE
YOU LIKE YOU NEVER GOT SUED
BEFORE.
WE HAVE MANY THINGS TO DO.
WE HAVE MANY, MANY THINGS TO DO.
WHEN I CAME DOWN ON THE
ESCALATOR WITH MY WIFE MELANIA,
IT WAS JUNE 16th.
AND I SAID LOOK LET ME TELL
YOU, IT IS NOT EASY RUNNING FOR PRESIDENT.
YOU GET LOW LIVES LIKE A GUY
LIKE RUBIO SAYING HORRIBLE
THINGS, HORRIBLE THINGS.
AND WHO NEEDS IT.
THIS IS A LOW LIFE.
AND CRUZ LIES BUT AT LEAST IT
IS REASONABLE LIES.
THIS OTHER GUY SAYS TERRIBLE
THINGS.
AND I WILL TELL YOU, WHEN YOU DO
THIS, AND WHEN I AGREED TO DO
IT IT TAKES GUTS TO DO IT.
IT TAKES GUTS.
ESPECIALLY IF YOU'RE NOT A
POLITICIAN. I'M NOT A POLITICIAN THANK
GOODNESS. I GUESS NOW I AM BUT I'M NOT.
I DON'T WANT TO BE A POLITICIAN.
AND WHEN CAME DOWN THE
ESCALATOR, THERE WERE CAMERAS,
LOOK AT ALL THE CAMERAS BACK
THERE. HELLO, FOLKS, HOW ARE YOU DOING,
YOU SON OF A GUNS.
WE HAD CAMERAS LIKE THE ACADEMY
AWARDS.
LOOKED LIKE IT WAS THE ACADEMY
AWARDS. I SAID TO MY WIFE I LOOKED AT
THE IRAN DEAL, WHICH IS ONE OF
THE GREAT INSULTS IN THE HISTORY
OF DEAL-MAKING, WE GIVE THEM
$150 BILLION, WE GET ABSOLUTELY
NOTHING.
WE GET NOTHING AND THEY ATTACK
THEY TAKE AS HOSTAGE TEN SAILERS
AND THE ONLY REASON WE GOT THEM
BACK, WHY DID WE GET THEM BACK
MONEY WASN'T PAID IT WENT IN
TWO DAYS LATER.
THE PERSIANS ARE GREAT
NEGOTIATORS.
THEY GAVE THEM BACK.
THEY WOULD HAVE KEPT THEM
OTHERWISE, UNLESS TRUMP WAS
PRESIDENT.
THEY WOULDN'T BE KEEPING THEM. THEY WOULDN'T BE KEEPING THEM.
IF I WAS PRESIDENT, THE HOSTAGES
WOULD HAVE BEEN RELEASED FOUR
YEARS AGO. BECAUSE I WOULDN'T HAVE
NEGOTIATED UNTIL THEY RELEASED
THE HOCH TAJSTAGES AND I WOULD HAVE
INCREASED THE SANCTIONS AND WE
WOULD HAVE HAD THOSE HOSTAGES
WITHIN 24 HOURS YEARS AGO.
WANT TO TELL YOU ONE OTHER
THING, THE SECOND AMENDMENT IS
UNDER SIEGE. GUNS GUNS GUNS.
IT IS UNDER SIEGE.
AND EVERY TIME YOU HAVE A
MENTALLY DISTURBED PERSON LIKE
YOU HAD LAST NIGHT, AND LIKE YOU
WILL HAVE THEY IMMEDIATELY LOOK
TO THE GUNS LIKE THE GUNS PULL
THE TRIGGER.
THE GUNS DO NOT PULL THE
TRIGGER.
AND WE ARE GOING TO PROTECT YOUR
SECOND AMENDMENT 100%.
100%.
IF YOU LOOK AT WHAT HAPPENED, IF
YOU LOOK AT WHAT HAPPENED IN
CALIFORNIA WITH THE 14 PEOPLE
KILLED BY TWO PEOPLE
RADICALIZED, SHE PROBABLY
RADICALIZED HIM, HOW ABOUT THIS
COUNTRY. WE CAN'T EVEN GET THE CELL
NUMBER.
CAN'T OPEN THE CELL.
I LIKE SAFETY.
I WANT SECURITY. WHEN IT COMES TO TERRORISTS WE
GOT TO KNOCK THEM OUT, FOLKS,
KNOCK THEM OUT AND KNOCK THEM
OUT BIGLEY.
BIG, BIG, BIGLEY.
BUT WHEN YOU LOOK AT WHAT
HAPPENED IN CALIFORNIA WITH THE
14 PEOPLE AND MANY PEOPLE IN A
HOSPITAL THAT ARE IN VERY BAD
SHAPE AND THESE WERE PEOPLE THAT
GAVE THE TWO RADICALIZED, THE
COUPLE, THIS COUPLE SO-CALLED
COUPLE, I DON'T EVEN LIKE TO
CALL THEM A COUPLE YOU KNOW
WHAT I WOULD LIKE TO CALL THEM
IT GAVE THIS COUPLE ANNIVERSARY
PARTIES. AND BABY PARTIES.
AND SHOWERS.
THESE WERE PEOPLE THAT -- THEY
WERE FRIENDS AND THEY WENT IN
AND BLEW THEM AWAY AND THEN YOU
LOOK AT PARIS, WHERE YOU HAVE
130 PEOPLE THAT WERE KILLED
MANY PEOPLE IN HOSPITALS,
GRAVELY INJURED, THESE ANIMALS
JUST WALKED IN TOOK THEIR GUNS
AND SAID BING BING BING YOU
GET OVER HERE BING.
IF WE WOULD HAVE HAD GUNS WHERE
BULLETS FLOWED IN THE OTHER
DIRECTION, YOU WOULDN'T HAVE HAD
THAT BIG PROBLEM.
IT WOULD HAVE BEEN MUCH SMALLER.
SO WE'RE GOING TO PROTECT OUR
SECOND AMENDMENT.
AND IT IS SO TRUE.
TAKE PARIS, TAKE CALIFORNIA IF
LIKE YOU -- YOU'RE A TOUGH
COOKIE, THIS GUY HERE LOOKS LIKE
AN EX-VET IF A COUPLE OF YOU,
YOU RIGHT OVER THERE WITH THAT
BIG, BEAUTIFUL BEARD, IF THESE
GUYS THAT I HAVE TO PICK A
WOMAN, THAT'S RIGHT, YOU,
RAISING YOUR HAND SHE'S GONE
CRAZY, SHE WANTS TO CARRY A GUN.
BUT IF WE HAD A FEW PEOPLE
RIGHT? IF WE HAD A FEW PEOPLE WITH A
GUN ON THEIR SIDE OR A GUN
AROUND THEIR ANKLE, SO WHEN
THESE ANIMALS START SHOOTING
THE BULLETS START GOING THE
OTHER WAY, YOU KNOW PARIS IS
PROBABLY THE TOUGHEST PLACE IN
THE WORLD TO HAVE A GUN, EXCEPT
IF YOU'RE A BAD GUY, THEN THERE
IS NO PROBLEM.
YOU JUST HAVE A GUN F.
IF WE HAD PEOPLE PEOPLE IN LOS
ANGELES, WOULD HAVE BEEN A WHOLE
DIFFERENT STORY, FOLKS, WOULD
HAVE BEEN A WHOLE DIFFERENT
STORY.
SO JUST REMEMBER YOUR SECOND
AMENDMENT WITH ME IS PROTECTED.
YOUR BORDERS ARE PROTECTED.
COMMON CORE -- COMMON CORE --
COMMON CORE IS OUT.
IT IS OUT.
IN THE TOP 30 NATIONS, WITH 30
BEING BY FAR THE WORST, IN THE
WORLD FOR EDUCATION, WE'RE
NUMBER 30 BUT WE'RE NUMBER ONE
IN COURSE PER PUPIL BY THE
FACTOR THERE IS NO SECOND.
WE'RE NUMBER ONE. WE'RE NUMBER ONE IN COURSE,
WE'RE LAST YOU HAVE NORWAY
SWEDEN DENMARK, CHINA, YOU HAVE
LOTS OF PLACES YOU HAVE SOME
COUNTRIES YOU NEVER EVEN HEARD
OF ARE AHEAD OF THE USA.
NOT GOING TO HAPPEN ANYMORE,
FOLKS. WE'RE GOING TO GET UP THAT LIST.
WE'RE GOING TO START CLIMBING UP
THAT LIST.
YOU KNOW THE AMERICAN DREAM IS
DEAD BUT WE'RE GOING TO MAKE IT
BIGGER AND STRONGER AND BETTER
THAN EVER BEFORE.
REMEMBER THAT.
BUT IT IS VERY HARD FOR A PERSON
TO LIVE THE AMERICAN DREAM
WITHOUT GOOD EDUCATION.
SO WE'RE GOING TO WORK VERY,
VERY HARD. SO COMMON CORE IS OUT.
IT IS DEAD.
COMMON CORE IS DEAD. WE'LL BRING IT LOCALLY AND I'VE
SEEN THE LOCAL -- IT IS
UNBELIEVABLE.
THE PARENTS AND THE TEACHERS AND
EVERYBODY THERE IS LOVE IN THE
ROOM AND IT IS A BEAUTIFUL THING
TO WATCH.
IT IS A BEAUTIFUL THING TO
WATCH.
ANOTHER THING WE HAVE TO TALK
ABOUT, I'VE HAD TREMENDOUS
SUPPORT FROM THE EVANGELICALS.
AND FROM CHRISTIANS.
I'VE HAD TREMENDOUS SUPPORT.
AND, IN FACT PASTOR JEFFERS IS
HERE NOW. WHERE ARE YOU?
WHERE -- COME HERE COME HERE
COME HERE.
I SAW HIM -- GET HIM OVER HERE.
HE HAS BEEN SO SUPPORTIVE.
I DIDN'T MEET HIM.
I'VE SEEN HIM ON TELEVISION FOR
YEARS, I ALWAYS LIKED HMM A LOT.
ONE DAY I'M LISTENING TO HIM AND
HE SAID DONALD TRUMP MAY NOT BE
PERFECT, BUT HE'S THE BEST LEAD
ERK THE STRONGEST GUY, HE'S
GOING TO KNOCK OUT ISIS DO
GREAT FOR OUR ECONOMY.
HE MAY NOT BE PERFECT, I DIDN'T
LIKE THAT, BUT THAT'S OKAY.
BUT HE'S GOING TO BE OUR BEST
PRESIDENT.
YOU COME OUT -- GET HIM UP HERE.
I LOVE THIS GUY.
I'M JUST WATCHING HIM.
AND HIGHLY HIGHLY RESPECTED AND
JERRY FALWELL JR. WAS SO
INCREDIBLE. AND SINCE I GOT -- AND MANY
OTHERS. THE REVEREND PAULA WHITE, SO
MANY OTHERS.
WE HAD SUCH SUPPORT.
WE HAVE UNBELIEVABLE SUPPORT
FROM SARAH PALIN.
SHE IS INCREDIBLE.
SHE'S A GREAT PERSON.
COME ON UP HERE REVEREND.
PASTOR JEFFERS, IS IT TRUE -- I
DIDN'T KNOW HIM AND I LOVE HIM.
SAY A FEW WORDS.
>> LET ME JUST SAY BRIEFLY I
KNOW THREE THINGS ABOUT DONALD
TRUMP. NUMBER ONE, HE SINCERELY LOVES
THIS COUNTRY.
YOU KNOW HE HAS 10 BILLION
REASONS HE DOESN'T HAVE TO DO
THIS. BUT HE DOES IT BECAUSE HE WANTS
TO MAKE AMERICA GREAT AGAIN.
THE SECOND THING I KNOW ABOUT
DONALD TRUMP IS THAT HE IS TRULY
PRO-LIFE. I HAVE TALKED TO HIM AT TRUMP
TOWERS HE BELIEVES IN
PROTECTING THE UNBORN.
THAT IS AN ISSUE WE AS
CHRISTIANS CARE ABOUT. AND I'LL TELL YOU WHAT SOME OF
YOU WHO SAY, WELL I DON'T KNOW
IF HIS PRO-LIFE CONVERSION WAS
REAL, LET ME TELL YOU SOMETHING,
HILLARY CLINTON DOESN'T CLAIM
ANY PRO-LIFE CONVERSION, IF YOU
GO FOR HILLARY CLINTON OR BERNIE
SANDERS, THERE IS NO DOUBT
YOU'RE GOING TO HAVE THE MOST
PRO-ABORTION PRESIDENT IN
HISTORY. BUT HERE IS WHAT I FINALLY KNOW
ABOUT DONALD TRUMP.
DONALD TRUMP CARES ABOUT AND
LOVES EVANGELICAL CHRISTIANS.
YOU KNOW ONE TIME WHEN RONALD
REAGAN WAS RUNNING FOR PRESIDENT
OF THE UNITED STATES THE FIRST
TIME, HE MET WITH A GROUP OF
EVANGELICAL LEADERS AND HE SAID
ALTHOUGH YOU CAN'T ENDORSE ME, I
WANT YOU TO KNOW I ENDORSE YOU.
AND I HAVE MET -- I HAVE MET
WITH MR. TRUMP ON SEVERAL
OCCASIONS.
AND I CAN TELL YOU FROM PERSONAL
EXPERIENCE, IF DONALD TRUMP IS
ELECTED PRESIDENT OF THE UNITED
STATES, WE WHO ARE EVANGELICAL
CHRISTIANS ARE GOING TO HAVE A
TRUE FRIEND IN THE WHITE HOUSE.
GOD BLESS DONALD TRUMP!
>> WOW.
HOW ABOUT THAT?
I'M HE TELLING YOU, I SAW THE
PASTOR ON TELEVISION LIKE A YEAR
AGO AND HE WAS SAYING ALL THESE
GOOD THINGS. I NEVER MET HIM BUT I WAS
WATCHING HIM.
I SAID, WE HAVE TO MEET THIS
MAN. AND I JUST HAVE SUCH GREAT
RESPECT FOR HIM.
YOU CAN SEE THAT. THANK YOU VERY MUCH.
THAT'S REALLY AMAZING.
I'M GOING TO GIVE THE PASTOR A
LITTLE BIT OF A PRESENT.
WHAT I SAY, I MEAN.
I THINK IT IS VERY IMPORTANT FOR
THE CHRISTIANS IN THE ROOM.
CHRISTIANITY IS UNDER SIEGE.
EVERY YEAR IT GETS WEAKER AND
WEAKER AND WEAKER.
AND I HAD A MEETING WITH VARIOUS
MINISTERS AND PASTORS ABOUT TWO
MONTHS AGO.
AND I'M PRETTY GOOD AT FIGURING
THINGS OUT.
AND I SAT WITH HIM.
AND SOME OF THEM SAID WE LOVE
YOU. WE WANT TO ENDORSE YOU SO BADLY.
BUT WE'RE AFRAID WE'RE GOING TO
LOSE IF WE DO THAT OUR TAX
EXEMPT STATUS.
AND I SAID WHAT IS THIS ALL
ABOUT? THAT TAKES YOU AND IT MAKES YOU
LESS POWERFUL THAN A MAN OR
WOMAN WALKING UP AND DOWN THE
STREET.
YOU ACTUALLY HAVE LESS POWER.
AND YET IF YOU LOOK AT IT I WAS
TALKING TO SOME WE PROBABLY
HAVE 250 MILLION, MAYBE EVEN
MORE, IN TERMS OF PEOPLE.
SO WE HAVE MORE -- WE HAVE MORE
CHRISTIANS, THINK OF THIS THAN
WE HAVE MEN OR WOMEN IN OUR
COUNTRY.
AND WE DON'T HAVE A LOBBY.
BECAUSE THEY'RE AFRAID TO HAVE A
LOBBY BECAUSE THEY DON'T WANT TO
LOSE THEIR TAX STATUS.
SO I AM GOING TO WORK LIKE HELL
TO GET RID OF THAT PROHIBITION.
AND WE'RE GOING TO HAVE THE
STRONGEST CHRISTIAN LOBBY AND IT
IS GOING TO HAPPEN.
AND IT IS GOING TO HAPPEN.
THIS TOOK PLACE DURING THE
PRESIDENCY OF LYNDON JOHNSON,
AND IT HAS HAD A TERRIBLE
CHILLING EFFECT.
WHEN I SAID THAT THERE HAS TO BE
A TEMPORARY BAN ON CERTAIN
PEOPLE COMING INTO THIS
COUNTRY, WE HAVE NO CHOICE.
THERE IS SOMETHING WRONG.
THERE IS SOMETHING REALLY WRONG.
AND WHEN I SAID MUSLIM I WAS
MET WITH FUROR.
IF I WOULD HAVE SAID CHRISTIAN,
PEOPLE WOULD HAVE SAID WE CAN'T
DO ANYTHING ABOUT IT.
THAT'S GOING TO END, FOLKS.
WE'RE GOING TO SAY MERRY
CHRISTMAS NOW ON CHRISTMAS.
WE'RE GOING TO START GOING TO
DEPARTMENT STORES AND YOU'RE
GOING TO SEE BIG, BEAUTIFUL
SIGNS THAT IS GOING TO SAY MERRY
CHRISTMAS AND HAPPY HOLIDAY.
AND WE'RE GOING TO HAVE A BIG,
BIG, BIG -- A LOT OF FUN AND GET
RID OF THAT AND WORK VERY HARD.
THAT'S ONE OF THE FIRST THING I
WANT TO DO GET RID OF THAT.
IF WE USE THAT POWER WE'RE
GOING TO START GOING UP UP UP
BECAUSE WE ARE BEING DECIMATED.
SO JUST REMEMBER THAT JUST
REMEMBER I SAID IT.
PASTOR, IT STARTS HERE.
YOU LIKE THAT?
WHAT I JUST SAID?
HE'S HAPPY.
THAT'S THE BIGGEST SMILE I'VE
EVER SEEN ON HIS FACE.
THAT WILL DO IT.
YOU CAN HOLD ME TO IT PASTOR.
ALL RIGHT.
YOU'RE RESPONSIBLE.
SO, AGAIN, WE'RE GOING TO HAVE A
GREAT COUNTRY AGAIN.
WE'RE GOING TO HAVE A SMART
COUNTRY AGAIN.
WE'RE GOING TO HAVE TREMENDOUS
BORDER AND TREMENDOUS STRENGTH
AND PEOPLE ARE COMING IN, BUT
WE'RE GOING TO HAVE REAL BORDER.
WE'RE GOING TO HAVE UNBELIEVABLE
TRADE DEALS.
I HAVE CARL ICAHN, SOME OF THE
BEST BUSINESS PEOPLE IN THE
WORLD, WE HAVE POLITICAL HACKS
NEGOTIATING THESE MASSIVE TRADE
DEALS.
THE BIGGEST DEALS IN THE WORLD.
WE HAVE PEOPLE THAT DON'T HAVE
THE SLIGHTEST CLUE.
WE'RE GOING TO GET RID OF OBAMA
CARE, GET RID OF COMMON CORE
WE'RE GOING TO HAVE LOCAL
EDUCATION.
WE'RE GOING TO PROTECT OUR
SECOND AMENDMENT. WE'RE GOING TO PROTECT
CHRISTIANITY. WE'RE GOING TO BE BACK.
AND, FOLKS, I'LL TELL YOU, IT IS
VERY SIMPLE MY WHOLE THEME AND
YOUR WHOLE THEME BECAUSE WE'RE
ALTOGETHER, I'M JUST A
MESSENGER, OUR WHOLE THEME IS
MAKE AMERICA GREAT AGAIN.
THAT'S WHAT'S GOING TO HAPPEN.
WE'RE GOING TO WIN A LOT, FOLKS.
WE'RE GOING TO WIN ALL THE TIME.
THANK YOU VERY MUCH. I LOVE TEXAS.
GET OUT THERE AND VOTE.
THANK YOU.
THANK YOU, EVERYBODY.
>>> THAT IS DONALD TRUMP
WRAPPING UP A RALLY IN TEXAS.
EARLIER TODAY RIGHT BEFORE HE
WAS OUT WITH HIS SUPPORTERS, HE
WAS JOINED BY NEW JERSEY
GOVERNOR CHRIS CHRISTIE WHO
ENDORSED HIM FOR PRESIDENT.
MR. TRUMP, THAT WAS THE FIRST
TIME THAT I HAVE SEEN A FULL
VERSION OF HIS STUMP SPEECH
WHICH GOES A LOT OF DIFFERENT
PLACES. WE'RE GOING TO BE GREAT, SMART,
UNBELIEVABLE.
AND MAYBE MOST TELLINGLY OF ALL,
SENATOR KAY BAILEY HUTCHISON OF
TEXAS, WE'RE GOING TO HAVE A BIG
LOT OF FUN SAID MR. TRUMP.
WELCOME, SENATOR HUTCHISON.
GLAD YOU COULD BE WITH US.
>> THANK YOU VERY MUCH.
I HEARD IT FOR THE FIRST TIME AS
WELL. VERY INTERESTING.
>> THAT'S ONE WAY TO PUT IT.
LET'S CUT TO THE CHASE HERE.
THE PRIMARY IN YOUR STATE IS
TUESDAY. WHO IS YOUR HORSE IN THIS RACE?
>> I DON'T HAVE A HORSE IN THE
RACE. BECAUSE I WORKED WITH YOU ALL, I
HAVEN'T ENDORSED ANYONE.
I'VE BEEN WATCHING CLOSELY.
AND I THINK WE'RE DOWN TO
PROBABLY A THREE-PERSON RACE.
AND, YOU KNOW I THINK IT IS
REALLY UP FOR GRABS IN TEXAS.
THOUGH I THINK CRUZ IS AHEAD FOR
SURE.
HE'S THE HOMETOWN SENATOR.
BUT I THINK THERE IS A LOT GOING
ON. I THINK IT IS NOT DECIDED YET.
>> HOW DO YOU FEEL AS A MEMBER
OF LET'S JUST USE THE PHRASE OUT
THERE, REPUBLICAN ESTABLISHMENT.
YOU'RE A SENATOR FOR FOUR TERMS.
HOW DO YOU FEEL ABOUT THE FACT
THAT THE ESTABLISHMENT IS UNDER
SUCH ATTACK MOST ESPECIALLY BY
MR. TRUMP. >> I THINK THAT'S A GREAT
QUESTION BECAUSE I AM PART OF
THE DREADFUL ESTABLISHMENT.
AND I THINK -- I UNDERSTAND THE
FRUSTRATION, I DO.
PEOPLE ARE VERY FRUSTRATED,
ESPECIALLY THE MIDDLE CLASS AND
PEOPLE WORKING SO HARD AND NOT
GETTING AHEAD.
I DO UNDERSTAND THAT.
I THINK WHAT'S MISSING IS THAT
ONCE THERE IS AN ELECTION YOU
HAVE TO WORK WITH WHAT YOU HAVE.
AS GEORGE WASHINGTON SAID I
HAVE TO GO INTO BATTLE WITH THE
ARMY THAT I HAVE.
AND YOU GET THE MOST YOU CAN.
RONALD REAGAN SAID IT HE DID
EXACTLY THAT.
HE WORKED WITH EVERYONE WHO WAS
ELECTED. AND HE MOVED OUR COUNTRY FORWARD
IN THE RIGHT DIRECTION.
OUR COUNTRY IS GOING IN THE
WRONG DIRECTION NOW.
IF WE CAN -- AFTER THE ELECTION
COME TOGETHER AND HOPEFULLY WE
HAVE WINS IN CONGRESS AND THE
PRESIDENCY, WE GOT TO CHANGE THE
DIRECTION OF OUR COUNTRY.
BUT WE HAVE TO DO IT WITHIN OUR
CONSTITUTIONAL SYSTEM. THAT'S WHAT I THINK IS MISSING.
>> IT IS MICHELLE HERE.
I'M GOING TO ASSUME FOR NOW, I
DON'T KNOW IF IT IS A GOOD
ASSUMPTION OR NOT, HILLARY
CLINTON IS AT THE TOP OF THE
DEMOCRATIC TICKET WHEN WE COME
TO THE FINAL RACE.
IF DONALD TRUMP DOES GET THE GOP
NOMINATION, DO YOU THINK HE CAN
BEAT HER?
>> I THINK THINGS ARE SO
DIFFERENT NOW IN OUR COUNTRY AND
I THINK THIS ELECTION IS GOING
TO BE DIFFERENT FROM ANY THAT WE
HAD CERTAINLY IN MY LIFETIME.
AND, YES, I THINK THE REPUBLICAN
CANDIDATE COULD WIN.
WHETHER IT IS TRUMP, RUBIO,
CRUZ KASICH CARSON I THINK
ANY OF THEM CAN WIN BECAUSE --
IF THEY TALK ABOUT WHAT THEY
WANT TO DO DIFFERENTLY FROM
WHERE OUR COUNTRY IS GOING RIGHT
NOW. NATIONAL SECURITY.
>> WHERE ARE WE IN THIS COUNTRY
RIGHT NOW, IN A BROADER
PERSPECTIVE. ANOTHER MASS SHOOTING YESTERDAY
IN KANSAS.
GETTING TO BE A WEEKLY EVENT.
BERNIE SANDERS PROMOTING FORMER
DEMOCRATIC SOCIALISM AND DONALD
TRUMP THROWING WATER AROUND
MAKING FUN OF MARKCO RUBIO'S
APPARENT PROPENSITY TO SWEAT.
WHERE DO WE GO IN THIS COUNTRY?
WHERE ARE WE?
>> FAIR POINT.
WHAT WE HAVE TO LOOK AT IS WHAT
IS AFFECTING OUR COUNTRY THE
MOST.
IT IS THE ECONOMY. IT IS THE STAGNANT ECONOMY.
IT IS THE OPPRESSIVE REGULATORY
TAX RE JIM THAT IS HOLDING OUR
SMALL BUSINESS PEOPLE FROM BEING
ABLE TOIO. GROW.
THE JUSTICE DEPARTMENT IS FINING
THEM INSTEAD OF SAYING WE WANT
OUR COMPANIES TO SUCCEED, WE
WANT OUR BANKS TO LEND BUSINESS
TOIO AND JOBS SGROW AND JOBS TO BE
CREATED. THAT'S NUMBER ONE.
NUMBER TWO IS NATIONAL SECURITY
OUR PLACE IN THE WORLD.
HAVING OUR ALLIES TRUST US AND
ENEMIES THINK THEY BETTER THINK
TWICE BEFORE THEY FOOL WITH US.
>> I FEEL LIKE WE'RE AT A
BREAKING POINT.
FORGET THE FACT AS A JOURNAL ISTIST.
EVERYBODY IS ANGRY.
WHERE DO WE GO IN THIS COUNTRY?
HOW DO WE BRIDGE THIS?
IT IS SO DEPRESSING.
>> I AGREE WITH YOU.
AND I THINK WE HAVE GOT TO GO
BACK TO WHAT BUILT OUR COUNTRY.
IT WAS A MORAL STANDARD.
AND, YOU KNOW IF SOMEBODY IS ON
A BLOG AND IT LOOKS TO ME LIKE
BLOGGERS ARE NEVER HAPPY, ALWAYS
CRITICAL. THEY'RE DOING IT ANONYMOUSLY.
IF YOU'RE GOING TO CRITICIZE
SOMEONE, SAY IT TO THEIR FACE.
I THINK WE WOULD HAVE A BETTER
TONE CIVILITY AND
ANTI-ESTABLISHMENT MOVEMENT IS
NOT HELPING THE CIVILITY IN THIS
COUNTRY, IT IS A RHETORIC THAT
IS HARSH AND DOESN'T HAVE
SOLUTIONS. IT HAS CRITICISMS.
WE NEED TO GO BACK TO THE MORAL
STANDARD THAT BUILT THE COUNTRY.
>> SENATOR, AS YOU LISTEN TO MR.
TRUMP, I'M INTERESTED TO HEAR
YOU, LIKE ME THAT WAS THE FIRST
TIME YOU HEARD THE FULL TRUMP
THERE, AS YOU LISTEN TO IT AS A
MEMBER OF THE GOP, DO YOU FIND
YOURSELF NODDING YOUR HEAD OR
SHAKING YOUR HEAD?
>> BOTH. BOTH.
SOME OF THE THINGS HE SAID
ARE -- I'M RIGHT WITH AND SOME
OF THE THINGS HE SAID I THINK
WILL HURT US INTERNATIONALLY.
>> IDENTIFY WHICH IS WHICH.
>> WHAT HE'S SAYING ABOUT
FREEDOM, THE SECOND AMENDMENT, I
THINK THE THINGS HE IS SAYING
ABOUT JOB CREATING ABOUT OUR
BORDERS, HAVING -- WHAT HE'S
SAYING IS LEGAL IMMIGRATION,
YES. ILLEGAL IMMIGRATION, NO.
AND THOSE ARE THE THINGS THAT WE
AGREE WITH.
BUT WHEN HE GOES OFF INTO
CRITICIZING PEOPLE PERSONALLY
TALKING ABOUT MARCO SWEATING OR
THOSE KINDS OF THINGS THAT'S --
THOSE ARE RED HERRINGS.
THAT FEEDS INTO THIS SOCIAL
MEDIA THAT IS SO NEGATIVE.
SO YOU ARE FINDING THINGS THAT
YOU THINK HE'S RIGHT ABOUT.
BUT YOU ALSO HAVE TO MAKE THE
TRANSITION INTO THE BIG PICTURE
WHICH YOU HAVE JUST DISCUSSED
AND THAT IS OKAY HOW DO WE FIX
IT?
WHAT ARE THE SOLUTIONS?
GIVE ME THE DETAILS.
I LOOK AT PAUL RYAN TRYING TO
LEAD THE HOUSE OF
REPRESENTATIVES. AND HE WANTS TO GET BACK TO THE
ISSUES.
HOW CAN WE HAVE A BALANCED
BUDGET? SO PEOPLE CAN MAKE INVESTMENTS,
GET LOANS.
HE'S TALKING ABOUT WHAT REALLY
MATTERS. ENTITLEMENT REFORM FOR HEAVEN
STAKE SAKES.
ALL THE THINGS I HEARD TALKED
ABOUT IN THESE DEBATES IS
CUTTING SPENDING.
HOW ARE YOU GOING TO CUT
SPENDING? YOU CUT SOME LITTLE MINOR PART
OF DISCRETIONARY SPENDING.
YOU GOT TO FIX ENTITLEMENTS.
>> THOSE ARE ALL BIG ISSUES.
BUT I THINK THAT WHEN THE
AUDIENCE LISTENS TO DONALD
TRUMP, THEY REALLY LIKE IT WHEN
HE MAKES FUN OF MARCO RUBIO
SWEATING. HE MAKES REFERENCE TO THE WATER
THAT HE --
>> WHAT IS THAT SAYING?
>> HE SEEMS TO HAVE TAPPED INTO
SOME KIND OF THING.
>> IN YOUR HOME STATE, YOU MUST
KNOW TED CRUZ VERY WELL.
WHAT DO YOU THINK OF HIM.
DOES HE HAVE TO WIN TUESDAY?
>> WELL FIRST OF ALL, YES, HE
HAS TO WIN.
JUST LIKE MARCO HAS TO WIN
FLORIDA. I THINK -- I BELIEVE THAT YOU
HAVE TO CARRY YOUR HOME STATE
WHERE PEOPLE SHOULD KNOW YOU
BEST. AND I THINK THAT LIKE EVERYONE,
I THINK THERE ARE GOOD POINTS
AND BAD POINTS.
JUST LIKE THERE ARE WITH TRUMP
AND WITH RUBIO AND OTHERS NO
ONE IS PERFECT HERE.
AND I THINK WE KNOW WHAT --
PRETTY MUCH WHERE THESE PEOPLE
ARE AND WHAT THEY ARE.
SO WE'RE GOING TO HAVE TO MAKE
THE CHOICES OF WHO IS GOING TO
CARRY OUR COUNTRY FORWARD WITH A
BASIS OF SOLUTION GETTING
INSTEAD OF CRITICIZING,
CRITICIZING, CRITICIZING.
AND I HOPE THAT OUR ELECTORATE
IS BEGINNING TO NOW SEE A
SMALLER FIELD AND WHO COULD
REALLY LEAD THIS COUNTRY, WHO
WILL BE CREATIVE WHO WILL KNOW
WHAT IS REALLY WRONG THAT HAS TO
BE FIXED.
AND OUR COUNTRY IS NOT GOING IN
THE RIGHT DIRECTION.
I THINK THAT IS WHY THERE IS SO
MUCH INTEREST IN THIS ELECTION.
AND I THINK WHEN WE GET DOWN TO
THE END, THEY'RE GOING TO BE
VERY DIFFERENT VISIONS FOR HOW
WE ACHIEVE WHAT BUILT THIS
COUNTRY, WHICH IS THAT YOU ARE
REWARDED FOR HARD WORK THAT WE
HAVE AN ECONOMY THAT CREATES
JOBS, THAT WE APPRECIATE THE
WORKING PEOPLE OF THIS COUNTRY,
AND THE CORPORATE PEOPLE OF THIS
COUNTRY WHO ARE MAKING OUR
ECONOMY GO.
WE DON'T WANT JOBS CREATED IN
GOVERNMENT.
WE WANT JOBS CREATED IN THE
PRIVATE SECTOR. >> FORMER TEXAS SENATOR KAY
BAILEY HUTCHISON.
THANK YOU FOR TAKING TIME WITH
US.
>> THANK YOU VERY MUCH. >> WE HAVE BREAKING NEWS DOWN IN
WASHINGTON, D.C.
TO EAMON JAVERS.
>> THE IRS IS PUTTING OUT A NEW
STATEMENT HERE IN THE PAST
COUPLE OF MINUTES BACK TO THAT
HACKING ATTEMPT LAST SPRING.
IF YOU REMEMBER BACK IN MAY, THE
IRS SAID HACKERS HAD BEEN ABLE
TO USE THE SO-CALLED GET
TRANSCRIPT FEATURE OF THE IRS'
WEBSITE TO GET IN AND GET
POTENTIAL ACCESS ANYWAY TO
TAXPAYER INFORMATION USING DATA
THEY ALREADY HAD.
INPUTTING THE DATA AND GETTING
TAX INFORMATION SENT TO THEM AS
IF THEY WERE THE TAXPAYER.
NOW PUTTING OUT NEW NUMBERS HERE
AROUND THAT ATTACK AND SAYING
THEY HAVE GONE BACK AND DONE A
DEEPER DIVE INTO IT.
THEY FOUND POTENTIAL ACCESS OF
390,000 ADDITIONAL TAXPAYER
ACCOUNTS DURING THE PERIOD FROM
JANUARY 2014 THROUGH MAY OF
2015. IN ADDITION, THE IRS SAYS
295,000 TAXPAYER TRANSCRIPTS
WERE TARGETED.
BUT ACCESS WAS NOT SUCCESSFUL.
SO A LOT MORE PEOPLE HERE
POTENTIALLY AFFECTED IN THIS
HACK THAN INITIALLY KNOWN.
>> THANK YOU VERY MUCH.
WE APPRECIATE THAT.
WE'RE AWAITING SENATOR MARCO
RUBIO, WHO IS APPARENTLY GOING
TO MAKE SOME REMARKS SOMEWHERE,
MAYBE HE'LL BRING SOME WATER AS
WELL. WHO KNOWS.
REVISION IN FOURTH QUARTER GDP
MEANTIME SHOWING THE U.S.
ECONOMIC GROWTH WAS BETTER THAN
EXPECTED. GREW AT AN ANNUAL RATE OF 1% ON
THE NOSE INSTEAD OF .7%.
WILL THIS SLIGHT UPTICK LAST?
DISCUSS THAT AND MORE BROOKLYN
DWYER, AND JOSEPH LAVORNA.
YOU JUST DOWNMARKED THE GLOBAL
ECONOMY.
HAD DO YOU SEE THAT CAUSED YOU
TO DO THAT?
>> WELL, CLEARLY THERE ARE A LOT
OF TROUBLE SPOTS.
WE SEE CHINA STRUGGLING WITH ITS
OWN ECONOMY.
PROBABLY HAVING TO DEVALUE
CURRENCY ONE MORE TIME THIS
YEAR.
BRAZIL IS IN A DEPRESSION AND
COULD BE IN EVEN LONGER
DEPRESSION.
THINGS COULD GET RALLY BAD.
RUSSIA LOOKS LIKE IT COULD RUN
OUT OF CASH BY THE END OF THE
YEAR. THAT COULD BE QUITE STRESSFUL.
AND THE EUROPEAN SITUATION WE
HAVE VERY LOW INFLATION, INFLATION NUMBERS OUT THIS
MORNING SUGGESTING IT COULD BE
LOWER THAN EXPECTED WHICH MEANS
CENTRAL BANK WILL HAVE TO
RESPOND. >> DOES A LOW IN GLOBAL ECONOMY
PULL THE U.S. INTO RECESSION OR
THE U.S. PULL THE WORLD ECONOMY
OUT? >> WORKS BOTH WAYS.
RIGHT NOW THE U.S. HAS BEEN THE
OUTPERFORMER. WE DON'T HAVE A TREMENDOUS
AMOUNT OF EXPORTS TO THE REST OF
THE WORLD, BUT NOT UNAFFECTED.
THAT GLOBAL SENTIMENT AND RISK
IDEA I THINK IS VERY PERTINENT
NOW. THAT'S REALLY DRAGGING DOWN
EXPECTATIONS AND BUSINESS
CONFIDENCE. >> JOE, YOUR THOUGHTS ON THE
NUMBERS THAT WERE OUT TODAY.
IS IT A TREND THAT COULD PICK UP
STEAM OR IS IT JUST SORT OF A
STEAMLESS TREND?
>> I WOULD -- MORE OF A
STEAMLESS TREND, TYLER.
I THOUGHT THE NUMBER WOULD BE
REVISED DOWN BECAUSE I THOUGHT
INVENTORIES WOULD BE LOWER.
THAT'S WHAT THE BUREAU OF
ECONOMIC ANALYSIS THE DATA THEY
USED HAD SUGGESTED GOING IN AND
INSTEAD INVENTORIES BARELY FELL
IN THE QUARTER.
AND WHAT THAT MEANS TYLER IS
THAT IS SETS US UP FOR A MUCH
BIGGER INVENTORY DROP THIS
QUARTER. I'VE GOT GROWTH AT .5.
THE GLOBAL ECONOMY IS NOT GREAT.
EXPORTS ARE SOFT.
I'M GUESSING THIS IS JUST A SOFT
PATCH, TO YOUR QUESTION, WE
TALKED ABOUT THIS EARLIER IN THE
WEEK, THE GLOBAL ECONOMY IS NOT
GREAT. IN THE PAST, THE U.S. WAS THE --
THE LOCOMOTIVE.
WHEN YOU'RE GROWING AT LESS THAN
2% IF GLOBAL GROWTH TURNS OUT
TO BE SOFTER THAN WHAT WE'RE
ASSUMING FOR ANY VARIETY OF
REASONS, THAT WILL HURT THE U.S.
AND MAKES THE U.S. MORE
VULNERABLE TO A NEGATIVE SHOT.
>> WE HAD TRILLIONS OF DOLLARS
THROWN AT THE PROBLEM.
CENTRAL BANKS AROUND THE WORLD,
1% AND 2% GROWTH IN GDP, ALMOST
ALL OF THE QUARTERS WITH THE
EXCEPTION OF A FEW OUTLIERS.
I GUESS IT IS TIME -- I'LL BE
THE ONE TO ASK IT IS IT
FIXABLE?
I'M GOING TO FIX THIS FIX THAT
NO GROWTH FOR YEARS DESPITE
TRILLIONS THROWN AT IT IS THE
U.S. ECONOMY FIXABLE OR IS THE
FACT THAT CAPITAL CAN GO
ANYWHERE IT WANTS AT THE PUSH OF
AN ELECTRONIC BUTTON AMERICA
WILL BE VERY DIFFICULT TO REMAIN
COMPETITIVE. >> THE THING, BRIAN, IS THE
FISCAL AUTHORITIES, IF THEY DO
THE RIGHT THING, FOR EXAMPLE,
TAKE SIMPSON BOWLES WITH
SOMETHING SEVERAL YEARS AGO THAT
HAD BEEN FOLLOWED UP ON
CERTAINLY WOULD HELP US
CORPORATE TAX SYSTEM NEEDS TO BE
REVISED AND MADE MORE
COMPETITIVE. THE PROBLEM I WOULD ARGUE WITH
CENTRAL BANKS, WHAT THEY HAVE
DONE IS THEY -- I THINK THEY
HAVE GONE TOO FAR AND BELIEVE
ME BECAUSE THEY'RE THE ONLY
GAME IN TOWN, THE FISCAL
AUTHORITIES ARE EFFECTIVELY
PARALYZED, THEY NEEDED THE
CENTRAL BANKS TO PUSH THINGS
FURTHER.
I WOULD ARGUE WHAT THAT HAS DONE
IS LEFT THE POLITICIANS, IF YOU
WILL OFF THE HOOK.
I'M HOPEFUL IF THERE IS AN
OFFICE NEXT YEAR IT WILL COME
WITH A MEANINGFUL FISCAL
STIMULUS PACKAGE THAT WILL GET
THE ECONOMY MOVING BECAUSE I
DON'T BELIEVE NEGATIVE RATES OR
FURTHER QUANTITATIVE EASING OR
FORWARD GUIDANCE OR OTHER
UNCONVENTIONAL POLICIES WILL
WORK MUCH MORE. >> THANK YOU FOR YOUR PATIENCE
TODAY.
A LOT OF BREAKING NEWS AND SO WE
THANK YOU.
>> I KNOW YOU WANT TO RESPOND.
WE'LL GET YOU BACK ON SOON.
>> NO PROBLEM.
>> I GOT A LITTLE WORKED UP.
>>> LET'S DO TRADING NATION.
SHARES OF WEIGHT WATCHERS LOSING
MORE THAN A QUARTER OF THEIR
RAWL YOU TODAY AFTER A
DISAPPOINTING EARNINGS REPORT.
IS THE STOCK A BARGAIN?
I DON'T KNOW.
JOINING US ALEX FURMAN COVERS
THE STOCK FOR CRAIG HALLUM
DAVID SEEBURG AT CALLUM.
YOU SAY THE STOCK IS WORTH 35
BUCKS. MAKE YOUR CASE.
>> YOU GOT A LOT OF ROOM FOR
NUMBERS TO MOVE HIGHER AS THE
YEAR PROGRESSES, BUSINESS THAT
PEOPLE THINK ABOUT DIETING FOUR
FIVE, SIX WEEKS OF THE YEAR IN
JANUARY, FEBRUARY.
I THINK NOW YOU HAVE A CASE FOR
THIS TO BECOME A MUCH LESS
SEASONAL BUSINESS WITH OPRAH ON
BOARD. SHE'S INFLUENTIAL AS A PARTNER
AND SPOKESPERSON STRATEGIC
MARKETING PARTNER. AS YOU LOOK OUT OVER THE NEXT
COUPLE OF YEARS, YOU'RE GOING TO
SEE A LOT OF GROWTH FROM NEW
SUBSCRIBERS. THE BIG DISCONNECT IS REVENUE
GROWTH IS GOING TO BE NEGATIVE
IN THE FIRST QUARTER THIS YEAR.
THAT SHOULDN'T BE UNEXPECTED TO
ANYONE. MOST OF THE REVENUE YOU HAVE
FIRST QUARTER IS FROM CUSTOMERS
WHO JOINED PRIOR TO OPRAH'S
INVOLVEMENT AND WEREN'T VERY
MANY OF THOSE CUSTOMERS THEN.
THIS WILL BE A SLOW BUILDING
TRANSITION BUT NUMBERS MOVE
HIGHER AND OUR PRICE TARGETS
BASED ON 13 TIMES EBITDA TAKE
INTO ACCOUNT WHERE THE DEBT
TRADES AT MARKET LEVELS AND
THAT'S WHERE THE STOCK TRADED.
>> WHAT IS CALLUM'S VIEW ON
WEIGHT WATCHERS?
>> WE DON'T COVER THE STOCK, BUT
MY PARTICULAR VIEW ON THIS I
THINK ON FAST WE TALKED ABOUT
IT.
THE DAY THE NEWS CAME OUT AND
THE STOCK ROCKETED HIGHER ON THE
OPRAH EFFECT IT WENT OUT IN
2005, THERE IS NO REASON THAT A
CELEBRITY OR ANYONE LIKE OPRAH
WINFREY SHOULD HAVE THAT
POSITIVE AN IMPACT ON THE
STOCK'S VALUATION BECAUSE THEY
SIGN ON OR TAKE A STAKE IN THE
COMPANY. I LOOK AT IT AND SAY TRENDS HAVE
CHANGED. ABSOLUTELY CHANGED.
SO FITNESS IS MUCH MORE IN VOGUE
THAN DIETING.
I CAN'T IMAGINE THAT OPRAH IS
GOING TO TURN THE NEEDLE FOR THE
COMPANY. I LOOK AT THIS AND SAY INVESTORS
PAID OPRAH 15 CENTS A SHARE IN
THE PAST QUARTER.
THAT'S ABSURD FOR A COMPANY TO
ACTUALLY HAVE A SPOKESPERSON TO
COME ON AND ACTUALLY DISCUSS,
YOU KNOW ANYTHING MEANINGFUL.
PAY THEM THAT KIND OF ROYALTY,
IT IS INSANE.
LOOK VALUATION HERE MAYBE
10 1/2 BUCKS, BUY IT FOR A
TRADE, NO WAY I WOULD TOUCH THIS
THING FROM A LONG-TERM
PERSPECTIVE AT THESE CURRENT
LEVELS. >> DAVID SEABURG, THANK YOU VERY
MUCH.
ALEX, THANK YOU VERY MUCH AS
WELL.
APPRECIATE IT.
>>> FOR MORE TRADING NATION
LISTEN UP GO TO TRADING
NATION.CNBC.COM.
DON'T DO IT UNTIL YOU'RE IN A SAFE LOCATION.
>> CHECK OUT THIS HIGH FLYING
STOCK.
HAWAIIAN HOLDINGS.
IT IS UP MORE THAN 120% OVER THE
LAST YEAR.
MOST OF THE AIRLINES HAVEN'T
BEEN DOING WELL AT ALL.
MIKE DENGERLY IS PRESIDENT OF
HAWAIIAN HOLDINGS. GOOD TO HAVE YOU HERE.
YOU HAVE THE SHIRT ON AS WELL.
>> ABSOLUTELY.
IT IS PART OF THE UNIFORM HERE.
>> YES.
YOUR SHARES HAVE DONE VERY WELL.
I'M GOING TO START WITH A BIG
CONCERN NOW, ZIKA.
THEY DECLARED A STAT OF
EMERGENCY IN HAWAII BECAUSE OF
CONCERNS ABOUT THE ZIKA VIRUS.
ARE YOU WORRIED THAT WILL IMPACT
TRAVEL TO HAWAII WHICH I THINK
WOULD HURT YOUR SALES.
>> WE HAVE SEEN NO EFFECT ON
DEMAND OF BOOKINGS FROM THE
ISSUE OF DENGUE WHAT WE HAVE
HERE IN THE STATE OF HAWAII.
IT IS LOCATED IN PRETTY REMOTE
REGION OF THE BIG ISLAND.
ZIKA VIRUS IS PRESENT ONLY IN
ONE OF THE DESTINATIONS THAT WE
SERVE, AMERICAN SAMOA.
AND WE'RE FOLLOWING THE GUIDANCE
OF THE CDC.
WE HAVE SEEN ABSOLUTELY NO BOOK
AWAY OF ANY SORT FROM ANY OF OUR
GEOGRAPHIES.
>> WHERE DO YOU MAKE THE MOST
MONEY? THE FLIGHTS TO AND FROM HAWAII
OR THE FLIGHTS AMONG THE
HAWAIIAN ISLANDS?
>> OVER THE LONG-TERM, I THINK
THEY'RE ALL PRETTY MUCH EVENLY
BALANCED.
I THINK IN AN ENVIRONMENT WHERE
THE PRICE OF FUEL IS LOWER THAN
IT HAS BEEN THAT TENDS TO FAVOR
THE LONGER HAUL FLIGHTS WHERE WE
CONSUME MORE FUEL THAN WE DO ON
THE SHORTER HAUL FLIGHTS.
THESE THINGS HAVE A WAY OF
BALANCING OUT AND IF YOU LOOK
BACK OVER THE LAST TEN YEARS,
THEY WOULD BE PRETTY MUCH EVEN.
>> I IMAGINE HAWAIIAN AIR SAVED
A BIT OF MONEY THANKS TO LOW OIL
PRICES. WHAT HAVE YOU SPENT THAT MONEY
ON? HAVE YOU EXPANDED CAPACITY.
DO YOU HAVE PLANS TO EXPAND
CAPACITY? >> IN THE CASE OF HAWAIIAN WE
EXPANDED VERY VERY RAPIDLY THE
BEGINNING OF THIS DECADE AND WE
TOOK ON QUITE A LOT OF DEBT IN
ORDER TO DO SO.
WE BOUGHT NEW AIRPLANES.
AND SO THE OPPORTUNITY OF SEEING
THE COST SAVINGS FROM LOWER FUEL
TO THE BOTTOM LINE HAS REALLY
GIVEN US THE OPPORTUNITY TO
RETIRE QUITE A BIT OF DEBT AND
THAT'S BEEN OUR HIGHEST
PRIORITY. WE HAVEN'T CHANGED OUR CAPACITY
OUTLOOK, WE HAVEN'T GONE OUT AND
ORDERED A BUNCH OF NEW
AIRPLANES, HAVEN'T CHANGED OUR
PLANS.
INSTEAD, WE'RE USING THIS GOOD
TIME TO STRENGTHEN OUR BALANCE
SHEET. >> ARE YOU BEING HIT BY A
SLOWDOWN IN CHINA AND/OR JAPAN?
>> CURIOUSLY NO.
THE DEMAND FOR THE HAWAII
VACATION AND THESE LOCATIONS HAS
BEEN REALLY VERY STRONG.
WE HAVE OF COURSE HAD THE
TRANSLATION ISSUE ASSOCIATED
WITH THE FACT THAT THE U.S.
DOLLAR HAS STRENGTHENED VERSUS
THE CURRENCIES. IF YOU LOOK AT THE DEMAND IN THE
LOCAL CURRENCIES, THE TICKETS WE
SELL IN JAPAN AND IN CHINA,
THERE HAS BEEN REALLY NO IMPACT
AT ALL FROM THE ECONOMIC
SLOWDOWN AND BOTH THOSE NATIONS
AND INDEED I THINK WE'RE PRETTY
ENCOURAGING.
THIS JULY WE'RE STARTING A NEW
SERVICE TO JAPAN.
SUCH HAS BEEN THE RESULTS WE
HAVE SEEN FROM THAT PART OF THE
WORLD. >> ONE ANALYST REPORT SUGGESTED
BECAUSE YOU HAVE ALMOST A NEAR
MONOPOLY ON THE INTRAISLAND, YOU
CAN CHARGE A PRETTY SOLID
PREMIUM PENNY FOR THOSE FLIGHTS.
THAT HELPS OUT A LOT WHEN IT
COMES TO MARGINS.
IS THAT A GOOD ASSESSMENT?
>> I THINK IT IS A SOMEWHAT
CURSORY ASSESSMENT.
WE DO OPERATE ABOUT 90% OF THE
FLIGHTS BETWEEN THE ISLANDS AND
THE STATE OF HAWAII.
WE HAVE IN ADDITION TO OUR
RESPONSIBILITY TO OUR
SHAREHOLDERS, WE HAVE
RESPONSIBILITY TO THE COMMUNITY.
AND IF YOU LOOK AT AVERAGE FARE
WE CHARGE BETWEEN THE ISLANDS,
WHICH ARE BETWEEN 70 AND $80,
WHAT OUR ECONOMY RECEIVES FOR
THESE FLIGHTS, YOU COMPARE THAT
TO FARES ON THE MAIN LAND I
DON'T THINK ANYBODY WOULD SAY
WE'RE LEVERAGING OUR POSITION
HERE IN THE ISLANDS.
AGAIN, WHEN THE PRICE OF OIL
GOES DOWN THE BIGGEST
BENEFICIAL IMPACT IS ON THE
LONGER HAUL THAN THE SHORTER
HAUL FLYING.
THE OTHER BIG ISSUE THAT WE DEAL
WITH PARTICULARLY ON OUR SHORT
HAUL FLYING IS THE INCREASE IN
RATES OF FEDERAL TAXATION WHICH
TEND TO MANY OF WHICH -- MANY OF
THE FEES AND CHARGES TEND TO BE
APPLIED ON A PER TRIP BASIS
RATHER THAN ON A VALUE TICKET
BASIS. >> HADN'T THOUGHT OF THAT.
OKAY. >> MARK I'M CURIOUS.
THERE IS INCREASING TALK ABOUT
RECESSION IN THE UNITED STATES.
HOW RECESSION PROOF IS YOUR
AIRLINE? THERE WAS A NOTE GOING AROUND
ASSESSING WHAT THE BREAK EVEN
REVENUE FOR AVAILABLE SEAT MILE
WOULD BE.
WOULD WE SEE DECLINES OF 16 TO
32% THAT WE SAW IN 2009?
ARE AIRLINES -- IS HAWAIIAN IN A
MUCH BETTER STATE WHERE WE
WOULDN'T SEE THOSE SORTS OF
DECLINES? >> WELL CASTING BACK TO THAT
PERIOD AND I WAS IN THE
POSITION I'M IN NOW, BACK IN
2007, 2008 2009 I CAN REMEMBER
BEING ANXIOUS WHEN WE WENT INTO
THE GLOBAL FINANCIAL CRISIS AND
THE RECESSION, THE IMPACT IT HAD
IN CALIFORNIA OF HUGE MARKET FOR
US. THAT WHAT AFFECT THAT WOULD HAVE
ON DEMAND FOR THE HAWAII
VACATION. AT THAT TIME WE DIDN'T SEE
DEMAND SLOW DOWN.
AND FOR -- IT REALLY SORT OF
ORDERS A SENSE THAT TRAVELING
FOR VACATION IS NO LONGER WHAT
YOU DO WITH THAT DISCRETIONARY
SLICE OF YOUR INCOME BUT HAS
BECOME MORE OF A HIGHER PRIORITY
IN PEOPLE'S EXPENDITURE
PATTERNS.
ONE RECESSION DOESN'T MAKE THAT
PROOF, BUT FROM WHERE WE SIT
RIGHT NOW, WE WOULDN'T
ANTICIPATE SEEING THAT KIND OF
DRAMATIC DROP THAT OTHERS
EXPERIENCE IN 2009.
>> LOVE THE SHIRT, MARK.
THANK YOU FOR JOINING US.
MIKE DUNKERLY OF HAWAIIAN
AIRLINES.
>> THANK YOU VERY MUCH.
>> AND "POWER LUNCH" WILL BE
RIGHT BACK.
>> AND NOW, THE LATEST FROM
TRADING NATION.CNBC.COM.
AND A WORD FROM OUR SPONSOR.
>> IF YOU TRY TO DECIDE BETWEEN
A MARKET ORDER AND A LIMIT
ORDER, MARKET ORDERS MAY BE
APPROPRIATE ON A STOCK THAT
TRADES A LOT OF VOLUME AND HAS A
FAIRLY TIGHT BID SPREAD.
FOR STOCKS THAT HAVE WIDER BID
SPREADS OR TRADE LOWER VAL, YOU
MAY WANT A LIMIT ORDER INSTEAD.
>>> SHARES OF UNITED TECHNOLOGY
AFTER THEY RESUMED TRADING.
THEY WERE HALTED FOR NEWS
PENDING AND PUT OUT A STATEMENT.
DAVID FABER WHO BROKE THE
ORIGINAL STORY THIS WILL BE IN
MERGER TALKS WITH HONEYWELL IS
HERE WITH US HERE.
HONEYWELL PUTS OUT A STATEMENT
AT 9:00 AND UNITED TECHNOLOGIES
PUTS OUT A STATEMENT LATER AND
IT READS LIKE THEY ARE REJECTING
A BEAR HUG AND THERE'S NOT A
DEAL HAPPENING.
WHAT'S GOING ON?
>> WHAT'S GOING ON, OF COURSE,
IT HAS BEEN AN EXTRAORDINARY
WORK WE MADE PUBLIC THE TALKS
TAKEN PLACE BETWEEN THE TWO
COMPANIES AND THE FACT THERE HAD
BEEN A RECENT PROPOSAL FROM
HONEYWELL TO BUY UNITED
TECHNOLOGY.
HONEYWELL CHOOSE THAT AS AN
OPPORTUNITY TO COME PUBLIC WITH
THAT PROPOSAL AND START MAKING
THE CASE TO UNITED TECHNOLOGY
SHAREHOLDERS AS TO WHY IT FEELS THEY SHOULD PRESSURE MANAGEMENT
TO COME TO THE NEGOTIATING
TABLE. IN THIS WEEK WHERE WE'VE BEEN
FOLLOWING THE STORY, WE'VE HAD
GREG HAYES JOIN US ON TUESDAY ON
SQUAWK ON STREET TO SAY
ABSOLUTELY NO WAY THAT A DEAL IN
HIS OPINION CAN HAPPEN BECAUSE
OF THE ANTITRUST RISK OF
COMBINING THESE TWO COMPANIES.
THE BACK AND FORTH CONTINUED TO
THE POINT WHERE THIS MORNING,
HONEYWELL CAME BACK AND IN A
PUBLIC PLEA AGAIN, LARGELY TO
UNITED TECHNOLOGY SHAREHOLDERS
MAKES THE CASE FOR WHY IT
BELIEVES BOTH THE ANTITRUST RISK
IS NOT SIGNIFICANT, SOMETHING
THEY DID YESTERDAY WITH ME ON TV
WHEN CHRISTINE, THEIR ANTITRUST
ADVICER JOINED ME IN AN
INTERVIEW AND MADE THE CASE ON
VALUE, AS TO WHY THE SYNERGIES
ARE SO SIGNIFICANT AND WILL ADD
UP TO SIGNIFICANT ACCRETION
OVERALL TO EARNINGS AND STOCK
PRICE FOR THE COMBINATION
BECAUSE OF THE HIGHER MULTIPLE
THAT HONEYWELL CURRENTLY GETS.
THEN WE GET UNITED TECHNOLOGIES
COMING OUT AND SAYING FIRST OF
ALL, ON VALUE, WE DON'T AGREE
WITH YOUR MATH AND SECONDLY,
LET'S REMIND YOU YET AGAIN AS TO
ALL OF THE REASONS WE THINK THIS
TRANS SKS CAN'T HAPPEN NAMELY
ANTITRUST AND BY THE WAY, DID WE
MENTION ANTITRUST.
>> WHERE'S THE GREATEST
ANTITRUST RISK IF THERE IS
ANTITRUST RISK?
>> IT'S IN THE AEROSPACE
BUSINESS. >> INSTRUMENTATION.
>> WITHOUT A DOUBT.
WHEN YOU LOOK AT UNITED
TECHNOLOGY'S RECENT REBUTTAL IF
YOU WILL THEY GO THROUGH IN
DETAIL ABOUT THE PLANE AND HAVE
THIS GREAT SLIDE THEY'VE BEEN
USING THAT WE HAD WHEN WE HAD
GREG HAZE ON EARLIER, ALL OF THE
THINGS SOLID INTO THE AIRPORT.
AIRBUS'S CEO DID SAY THINGS THAT
WOULD INDICATE THEY WOULD NOT BE
IN FAVOR OF SUCH A DEAL.
BUT THAT'S WHERE THE FOCUS IS.
>> THERE'S ONE LINE IN THE
STATEMENT FROM UNITED TECHNOLOGY
HONEYWELL'S PROPOSAL GROSSLY
UNDERVALUES TECHNOLOGY THAT
STANDS OUT IN BOLD AS GIVE US
MORE MONEY AND MAYBE WE'LL TALK
SOME MORE.
AM I WRONG?
>> I DON'T KNOW THAT YOU'RE
WRONG AND I DO KNOW FROM
FOLLOWING AS LONG AS I HAVE THE
PLAYBOOK HONEYWELL IS FOLLOWING
HERE, IN MY MIND WOULD LIKELY
MEAN TO SOME EXTENT THEY CAN
WARM UP THE SHARE BASE OF UNITED
TECHNOLOGIES AND GET PEOPLE
TALKING, THEY'LL COME BACK WITH
A HIGHER OFFER THAN THE 108
YOU'RE LOOKING AT RIGHT THERE,
WITH SOMETHING THAT'S 10%, 12%
HIGHER AND OFFERS SOME SORT OF
PROTECTIONS ON ANTITRUST,
PERHAPS A GUARANTEE TO DIE VEST
CERTAIN THINGS OR HELL OR HIGH
WATER TOO GO TO ANY END THEY
NEED TO AND TAKE ON THE RISK
THEMSELVES.
THAT'S WHERE IT FEELS THIS IS GOING TOWARDS, IT DOESN'T MEAN
THEY ARE GOING TO SUCCEED.
LANGUAGE LIKE THAT WE'LL SEE.
WE'LL SEE.
IT'S VERY HARD TO IMAGINE THEY
ARE ACTUALLY GOING TO SUCCEED
BUT THEY ARE GIVING IT A SHOT
SINCE THE BID WAS MADE PUBLIC.
>> BECAUSE YOU'RE WEARING A HALF
ZIP AND NO TIE, I'LL ASK YOU TO
SPECULATE. HERE YOU GO.
ANY CHANCE THAT THE SCRIPT COULD
BE FLIPPED?
IS IT POSSIBLE BECAUSE THE
COMPANIES ARE NEARLY THE SAME
SIZE COULD UTX FLIP IT AND TRY
TO GO AFTER HONEY WELL OR DARE I
SAY GE COULD GE COME IN AND TRY
TO TAKE OVER UTX?
>> GE AS YOU WELL KNOW HAS BEEN
THERE BEFORE THE LAST TIME WE
REPORTED UTXs GETTING CLOSE TO A
DEAL SIX YEARS AGO, GE DID SWOOP
IN. I DON'T THINK THIS IS LIKELY AT
THIS POINT AND I DON'T THINK
THEY ARE IN A POSITION TO FLIP
THE TABLES AND IN PARLT BECAUSE
THEY ARE SMALLING STILL.
REMEMBER THE RESPECTED MARKET
CAPS CHANGED DRAMATICALLY.
LAST SPRING WHEN THEY
ENTERTAINED AND INITIATED TALKS,
BUT GIVEN HAYES HAS SAID AND
EVERYTHING THEY'VE GOT ON PAPER,
HOW CAN THEY COME BACK AND SAY
WE WANT TO DO THE DEAL?
IT DOESN'T SEEM LIKELY.
>> WE HAVE A MINUTE.
THE BALL IS IN THE COURT OF UTC
SHAREHOLDERS AND UP TO THEM TO
DO SOMETHING TO MAKE THE BOARD
CONSIDER THIS PROPOSAL?
>> THIS IS NOT A CASE WHERE I
THINK YOU'RE GOING TO SEE
HONEYWELL GO TRULY HOSTILE.
THIS IS A BEAR HUG, TRYING TO
PUT PRESSURE TO TALK TO CEO GREG
HAYES AND TALK TO THE BOARD OF
DIRECTORS, WHY DON'T YOU ENGAGE.
THAT'S ABOUT AS FAR AS HONEYWELL
CAN PUSH IT.
THE PATH GOING BEYOND THAT SEEMS
HIGHLY UNLIKELY IN TERMS OF A
HOSTILE OFFER WHERE THEY WOULD
CHALLENGE FOR THE BOARD AND
MISSED DEADLINES ON THAT.
THAT'S WHERE THEY ARE. THEY ARE HOPING THEY CAN
CONTINUE TO FOLLOW THIS JAW BONE
ENOUGH TO GET THE SHAREHOLDERS
TO PUT THE PRESSURE ON SO THE
NEXT OFFER THAT COMES MAY BE
BETTER --
>> WE'VE GOT TO INTERRUPT YOU,
MARCO RUBIO IS JUST TAKEN THE
STAGE. WE APPRECIATE YOU JUMPING FOR
THIS, THOUGH.
>> STUDY HIS INSULTS, I'M NOT
SURE ABOUT STUDY HIS INSULTS.
AGAIN, HE PORTRAYS HIMSELF AS
SOMETHING HE'S NOT AND WE LOOK
FORWARD TO UNMASKING HIM.
WHAT'S AT STAKE NOW IS
IMPORTANT. HE'S THE FRONT-RUNNER ACCORDING
TO POLLS AND ELECTIONS AND COULD
BECOME THE NOMINEE, WE'RE NOT
GOING TO LET THAT HAPPEN AND
ALLOW THE PARTY OF REAGAN OR
CONSERVATIVE MOVEMENT TO BE
TAKEN OVER BY A CON MAN.
>> WILL YOU STILL SUPPORT HIM?
>> HE'S NOT GOING TO BE THE
REPUBLICAN NOMINEE. THE REPUBLICAN PARTY WOULD BE
SPLIT APART. WE CANNOT ALLOW THE PARTY OF
REAGAN TO BE TAKEN OVER BY A CON
MAN. >> YOU RELISH GOING AFTER HIM.
>> IS THAT YOUR KEY MOVE YOU'RE
TRYING TO REACH OUT, DO YOU
THINK THAT'S ENOUGH TO GET YOU
WHERE YOU NEED TO BE?
>> IT'S AN IMPORTANT GROUP
BECAUSE ELECTION IS SO MUCH
ABOUT THEM.
WE'RE DEBATING WHAT IS AMERICA
GOING TO BE LIKE WHEN THEY START
BUSINESSES OR FAMILIES OR
PERHAPS IN THE MIDDLE OF TRYING
TO DO THAT NOW.
THEY HAVE AS MUCH AT STAKE IN
THIS ELECTION IF NOT MORE SO
THAN ANY GROUP IN THIS COUNTRY.
THAT'S ONE OF THE THINGS WE'RE
EXCITED ABOUT. I WON'T JUST UNIFY THE
REPUBLICAN PARTY, I'LL GROW IT.
PART OF IT WILL BE TO TAKE OUR
MESSAGE TO PEOPLE THAT PERHAPS
IN THE PAST NOT VOTED FOR
REPUBLICANS. >> IS THERE ENOUGH TIME AND
MONEY -- WITH THIS CHANGE -- AS
COMPARED TO DONALD TRUMP, I'M
NOT CONCERNED ABOUT LOOKING
UNPRESIDENTIAL.
BEING PRESIDENTIAL MEANS THE
ABILITY TO ANSWER SERIOUS
QUESTIONS ABOUT IMPORTANT TOPICS
AND DONALD PROVED HE HAS NO PLAN
FOR HEALTH CARE NO IDEA HOW TO
BALANCE THE BUDGET. I WISH WOLF BLITZER AND
MODERATORS WOULD HAVE PRESSED
HIM MORE ON THAT AND EVERYONE.
GUY DOESN'T KNOW WHAT THE
NUCLEAR TRY ADD HAS AND HAS NO
IDEA THAT SOUTH KOREA
CONTRIBUTES SIGNIFICANTLY TOO
THE DEFENSE DEFENSE WE HAVE AND
HE WANTS TO BE IN CHARGE OF THE
NUCLEAR ARSENAL OF THE UNITED
STATES AND POWER TO SEND YOUNG
MEN AND WOMEN OFF TO WAR.
WE'RE GOING TO UB MASK HIM FOR
THE CON MAN HE IS.
>> SLOW OR STOP DONALD TRUMP?
HE'S THE FRONT RUNTER NO DOUBT
ABOUT IT.
THERE'S A SENSE OF URGENCY.
THE CON SERVE TIF MOVEMENT COULD
FALL INTO THE HANDS OF SOMETHING
WHO HAS CONNED A SIGNIFICANT
NUMBER OF AMERICANS INTO
SOMETHING HE'S NOT. THIS IS THE PARTY OF REAGAN AND
PARTY BUILT ON OPTIMISM AND LAST
NIGHT YOU HAD THE FRONT-RUNNER
IN THE REPUBLICAN DEBATE
DEFENDING PLANNED PARENTHOOD AND
SAYING HE'S NOT GOING TO TAKE
SIDES BETWEEN ISRAEL AND
PALESTINIANS.
THAT WOULD BE A STUNNING SHIFT
FOR THIS PARTY AND QUITE FRANKLY
WOULD MAKE US INDISTINGUISHABLE
FROM THE DEMOCRATS.
>> YOUR CAMPAIGN IS GUARANTEED
TO WIN FLORIDA.
>> ARE YOU GOING TO DO THIS
EVERY DAY AGAINST DONALD TRUMP?
>> WE'LL DO IT OFTEN.
>> YOUR CAMPAIGN IS GUARANTEED
THAT YOU WILL WIN FLORIDA.
YOU'RE GUARANTEEING --
>> WHAT HAPPENS IF YOU DON'T.
>> WE'LL WIN FLORIDA.
>> ARE YOU COMFORTABLE WITH THE
PHRASE ANTI-TRUMP CANDIDATE,
RUBIO? >>IZE FRONT-RUNNER AND ONLY WAY
TO STOP HIM VOTERS COALESCE
AROUND SOMEONE TO STOP HIM.
I THINK IT'S TIME TO COALESCE
AROUND SOMEONE THAT CAN BEAT HIM
AND STOP HIM AND AROUND SOMEONE
THAT CAN UNITE THE PARTY AND
GROW IT.
THIS THE ARGUMENT I'M MAKING.
>> IS THAT THE DIRECTION WE'LL
SEE IN THE COMING --
>> DONALD TRUMP IS THE
FRONT-RUNNER WON THE LAST THREE
STATES, LEADS IN EVERY POLL THE
TIME FOR ACTION IS NOW.
AGAIN, IT GOES BACK TO WHAT I
SAID. IF YOU SEN