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tv   The Intelligence Report With Trish Regan  FOX Business  March 14, 2018 2:00pm-3:00pm EDT

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bear stearns t was 10 years ago, to see if there could be other financials crises. the market up 200 from the low point. president trump says this is the bet time ever for fundamentals. that is helping the market. now here is trish regan. >> thanks, charles. i guess you can call it the kudlow effect. we're down only 130 amid news that larry kudlow has been offered gary cohn's job at the white house. the dow was down 300 points as president trump blasted unfair trade pack tests. the news came out that larry kudlow is in. now the market is off 113. we'll see how it shakes out the next hour. i'm trish regan. welcome to "the intelligence report." the president tweeted, we can not keep a blind eye to the rampant unfair trade practices to our country. investors continue to react to the tariffs.
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i would say they overreact. now larry kudlow is coming in. he is not so much of a tariff guy. more on that. i know larry very well. i used to host a show with him at another network. we'll get a live report from the stock exchange in a few moments. meanwhile, every vote counts, every single one of them. 640 of them suggest democrat conor lamb is pennsylvania voters choice. lamb has a big lead but many calling a bellwether for the election in november. rick saccone is calling for a recount. >> conor, the house you're running for the house of representatives, if you get down there, do the job. okay, i will. mission accepted. >> we're still fighting the fight. it is not over yet. we'll fight all the way, all the way to the end! you know i never give up. trish: house majority is clearly
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at risk. we'll have the intel on that for you. president trump is set to arif in st. louis in the next hour to talk about his popular tax reform law. a big name in world of finance comes to the white house. moments ago, it was announced larry kudlow has been tapped to be the president's new national economic council director. blake burman joining me with the breaking details on this one. you know, larry's name has been out there for a while. many of us thought it might get it first time around. i exchanged an email or two with him the other night. i thought this might be coming. i think he is going to be a tremendous addition to that team. tell us everything you know, blake. reporter: the very first name given to me, trish, within the first hour after gary cohn's resignation was indeed larry kudlow. it makes a lot of sense as you mentioned considering quod lows lows -- kudlow was a top advisor
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for the president during the campaign with steve moore. it was during the transition he was talking about potentially getting the role. it eventually went to gary cohn, top economic advisor, head of the national economic council. the timing on this, here is what i'm told, trish, that the two, president trump and larry kudlow spoke yesterday. that kudlow was offered the job and he is expected to be named the nec chair. "the wall street journal" is reporting this hour that they have personally spoken with kudlow and kudlow has told them that he accepted the position. when the president left for california yesterday, and he is en route to missouri right now, the president spoke for about a minute or so about larry kudlow. talked about how he has known him for a while now and was highly complimentary of kudlow. here was the president yesterday. >> i've known him a long time. we don't agree on everything but in this case i think that is good. i want to have divergent opinion.
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we agree on most. he now has come around to believing in tariffs as also a negotiating point. i think he was one of my original backers he is a very, very talented man, a good man. reporter: the point there on tariffs, trish, important one, that kudlow penned an op-ed last week that was harshly critical of the president's tariffs. you heard the president say there, that kudlow believes that it could be used as negotiating point. the president says he likes conflict, like he wants to listen to one side but conflict is too much for gary cohn at one point, departed from the white house, set in motion for the wheels to him to depart. gary cohn we don't know when is he expected to leave the white house. the president is in missouri next hour. we expect to hear from the president. we'll see if he officially makes
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it official. trish: we'll watch it very carefully. blake burman, thank you so much. we have a market recovering here, they recovered, stocks began recovering on the news that gary kudlow was getting gary cohn's spot. as a background, larry kudlow is very much a free trade kind of guy. this is part of his dna. he is very much for low taxes this. is the kind of person that the market is going to like. maybe there is a thought there that he might temper some of the president's goals for tariffs, et cetera. let's go to the floor of the new york stock exchange where traders know him well. nicole is standing by with reaction. >> everyone is not surprised that he gets this top spot but there is sort of speculation. we had a lot of volatility in the market today, trish, in fact we were down 330 points at the lowest point.
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right now down just 145. off the lows of the day certainly. you have so many things coming together. there is us uncertainty in the white house which traders don't really believe. that that always leads to something. that is out of the way. the tariffs remain front and center. worries across the board for china and $60 billion of imports. that is worrying traders. the big picture, retail sales numbers, right? there is some concern for the consumer but optimism is there for the future. we were down 300 points. i said, guys, are you worried? they were not worried. they know they would buy them back. industrials those have been under pressure. there is concern whether they pay more for raw materials. you can see down arrows as well. we moved to the transports. that group in particular is down the worst in the percentage terms. we see airlines involved in transports. united continental down about 2%, we had two tough headlines
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about a dog in a overhead bin dying and sending another dog to japan by accident. they're dealing with that. market is coming off the lows no doubt, so down 127. trish? trish: nicole, thanks so much. joining us to weigh in on all the news, "bullseye brief" publisher, adam johnson, also someone i used to host a show with and fox news contributor gary kaltbaum. let me go to you first. i would preface this i know larry well. he is a wonderful person. >> yep. trish: and a brilliant economist. >> agreed. trish: former member of the reagan administration. obviously worked very closely with art laffer. >> yes. trish: art, who we spoke to was on a plane otherwise he would be on the show talking about gary -- larry. in for gary what he could do for our economy and for policy poll but the one thing i find interesting about this, he is not a guy, larry, that is, that
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likes tariffs. >> he does not. >> recently penned an op ed with art and with steve, tariffs are not the way to go. >> yeah. trish: how is that going to reconcile itself within the white house? >> i actually worked with larry at one point when i was a young options trader at im-f. larry was our economist. he would come out on trading floor of 600 people, i would say here comes captain america. larry is gung-ho, believes so much in the capitalist system. i believe his tag line capitalism is the best path forward for prosperity in america, period. larry kudlow. he is highly educate, a very smart guy. i think he will be an outassistanting advisor to the president. as the president said himself they don't entirely agree on everything. people don't agree on everything, right? husband and wiveses married for 30 years don't agree on everything. the point larry is captain
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america. he believes strongly in the capitalist system. i always thought fox would make him an anchor here. he is kind of one of the us, trish. he is a supporter, just you know -- trish: larry used to tell me never met a tax cut that he didn't like. and you know, there is a real truth to what is happening in this economy right now. >> yeah. trish: mr. kaltbaum, we've got tax reform, lower taxes, helping to unleech some of that -- unleash what they call those animal spirits. they're talking about round two coming on tax reform. in fact kevin brady telling our own stuart varney this morning that he is gearing up for round two. i would imagine that larry kudlow would be very significant and helpful as we look forward to phase two of tax cuts? >> give me round two. give me round three. give me round four.
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the taxpayer has been screwed for many years, paying too much money into the system, and the other part of kudlow, he loves smaller government. if he can get into the republicans ears on the size of government, the size of government spending he have year, then you get the big trifecta with the free trade also. now something that was said today that i'm hopeful on with the tariffs is using tariffs as a negotiating point instead of as a hammer. if you want to use it that way, and you negotiate well, then we can get something done of the fact is that there are bad players around the globe. there is something that does need to be done. we can do better on trade. hopefully that is the route they're going. trish: you have to be careful though, right? if you're going to be used as a negotiating tool, but you can't tell everyone you're using it as negotiating tool. >> or get too easy. >> you've seen boeing, billions of dollars of market cap come off just because of this reason. there is a fine line that we have to watch very closely as we
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move forward. trish: indeed. talking about tariffs here, i'm repeating myself but i just love this example that congressman sean duffy gave meet other night when i was in for my friend lou dobbs. >> let's hear it. trish: look, he has harley-davidson in wisconsin, yes, they have to pay more for raw materials and slightly higher motorcycle prices but think about what could happen for that company if they're able to sell more of those in places likes india? they have a 100% tariffs right now on harley-davidson motorcycles in india. if if you get rid of those tariffs, gosh, you have the opportunity to sell more and offset higher prices for steel and aluminum. what do you think about that? >> i hope that does. when ceo tim cook went over to apple and reason he did there was rule, you can't open retail stores of india, unless 80% of
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the components of stuff you're selling is made in india. you understand why a new economy would do that. trish: by the way china does that. >> of course. india, china, building their economies, they're still emerging, they're a force to be reckoned with. some of the largest economies in the world. it makes sense for them to open up to get rid of tariffs. the president is whole thing is about leverage. >> exactly. >> as we said trish, only 1 1/2% of chinese steel find its way to u.s. shores. this is about creating leverage. i fully support what he is doing. i'm infused. i love it. trish: is the market overreacting? the market recovering a little bit but still down. >> we're adjusting. >> we have a market off 150. take a look, some industrials are down. they have to come to terms what tariffs mean go ahead, gary. >> on the market, don't plink right now. remember the other part of the equation. we had a monstrous run that for
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15 months ended in january. we had seven years of gains in 15 months. there is normal to consolidate those gains month in, month out. we have a few more months to go we back and fill f things are good going forward and interest rates remain low and we'll bust out again. you can't go straight up forever. you don't have to worry about the markets going back and forth a few%. it is the normal course of business right now. >> i want to add our own charlie gasparino is reporting that the president is telling people that larry kudlow softened a little bit on idea of tariffs, much like you, adam, thinking it can be used as negotiation. >> it's a lever. trish: it is leverage. it makes sense to have someone like larry there only in that gary cohn, that one, that never made a ton of sense to me, guys. gary -- >> goldman sachs guy. trish: by the way he used to run when i was in fixed income.
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>> you used to work for him. trish: i never really thought that relationship there made much sense between the president and gary. go ahead. >> just remember, tariffs are a tax and in the end consumers always pay the tax. so this is something that has to be negotiated very carefully. every country is going to act in their own best interests. trish: we haven't acted in our own best interests. >> we are head honcho, top dog, big cheese. they all need us. i think trump gets that and hopefully they negotiate it right. trish: well-put, well-put gary kaltbaum. good to see you, guys. you're sticking around a little bit. we're watching the market down 161. also watching the news out of pennsylvania. democrat conor lamb declaring victory but this pennsylvania race is still too close to call. we're talking about 640 votes? is this a wake-up on both sides of the aisle? they are vote egg for the candidate. not voting for the party. as soon as both parties recognize that, realize that,
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the better. we have a debate coming up.
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trish: we're still watching this market which is still down 170 points. we'll have more on that in just a moment but let's talk first about house speaker paul ryan privately warning republicans they could be in for quote, a
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bit of a wake-up call as democrat conor lamb beat republican rick saccone in a special congressional election. it is a close one. i think representative ryan is wrong. i think he is very wrong. i've said over and over again, saccone is no donald trump. none of these candidates is donald trump. they prove what i've been saying all along, that parties don't really matter anymore. you know what matters? the candidate matters. people vote for candidates. they're just not voting just republican or just democrat. saw pennsylvania voters vote for donald trump. these are democratic, historically democratic voters. so how do the parties need to be thinking about this right now? joining me is american majority ceo ned ryun and fox news contributor richard fowler. good to see both you guys. it is fascinating. i think this presidential election, 2016, really showed the power of the individual, ned
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ryuns as opposed to the power of the party. am i on to something? >> well, i think what pennsylvania 18 highlighted trish, all politics are local. the actual candidates do matter. i mean if you're going to equivalent of a piece of three-day old bread versus sizzling steak, that steak is going to win. that is what you're talking about. saccone is, is is not a dynamic candidate and mediocre, conor lamb is young, 30 something, dynamic candidate. the other thing i would say highlighting to me, trish, listen, conor lamb ran as basically progun, pro-life, anti-pelosi candidate to win this race. i think democrats have to have a little bit after conversation about this going forward. are they going to run as quasirepublicans in the more centrist districts to take the house back, or going more toward the progressive resistance base?
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if con no nor lamb where most of the democrat party running nationally, raising taxes, impeaching trump, he would have been blown out. trish: you point out he distanced himself from nancy pelosi. that was critical as well. richard, as a democrat, how are you thinking about this. >> one, congratulations for mr. lamb winning the race. we're still counting votes. trish: 640 votes. >> conor ran as somebody prolabor union, pro-social security, pro-medicare, he said he ran as a candidate that tax cut was only give away for the wealthy. should have more in it for the middle class. that is why he run the race that is exactly what he ran on. that is what he ran on. those are the facts. trish: here is the thing, the gop tax cuts are putting more money everyone's pocket.
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so i realize democrats will make this, we don't need tax cuts. what american will tell you, ned ryun will not want more money out of their paycheck? >> exactly, trish. high light a point republicans need to be better at messaging w call it consumer politics at american majority. they need to be selling economy, jobs, taxes to actual consumers, american voters. i don't think republicans have done a very good job of it. good news, they have eight more months until the midterms. they have to get better at messaging. polls have shown us, trish, look at economy, jobs, national security, republicans are beating democrats basically double digits on everyone of those issues for 2018 midterms. i would argue if republicans are much better on messaging and doing fundamentals. trish: more with the president's economic agenda, than it will be easier for them. i don't think they're fully on board. i think they're challenged by
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much of what he has talked about, in a way that is significant right? here lamb, richard fowler talking about tariffs being a good thing and he wins in pennsylvania. >> i think that is part of it. i think you have to remember donald trump won this district by 20 points. democrats last night, even if we lose this seat, made up 20 points. that is unheard of in american politics. it is because lamb depended on labor unions, depended on working families. he went out there had a conversation with them about issues that concerned them. he talked about a fact that labor pension fund are going belly-up. washington need to fix that. that resonated with voters. trish: went back to his roots, that donald trump has stolen from you device. >> absolutely i would give you that particular point. i would add to that the biggest problem the republicans have, two parts of the party. one part of the party which is donald trump, quasi-proworking parties. and the other side guy who ran
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against conor lamb. he wants to get rid of labor unions and believes right to work. there is a civil war happening that will cost them this midterm election. trish: they need to get wise on this stuff, get wise fast. because i do think that it is going to come down to the specific issues and specific candidates but republicans might be better served to follow the president's lead on some of this. ned, good to see you. richard, good to see you. check on the markets. we're seeing losses accelerate, down 184. we had been roughly as much as 300 during the session. then news came out that larry kudlow is taking gary cohn's job and the market somewhat likes that but we are challenged. we are challenged. we'll see how it shakes out. tensions between russia and the uk are reaching levels we haven't seen since the cold war after a former russian spy is poisoned on british soil. what does the standoff mean to
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trish: this is just unbelievable story. the british government expelling 23 russian diplomats from the uk in response to an attack by the spy and his daughter. it is a done by military nerve gas in an attempt believed be by the russian government. we have more on the bizarre story. more levels of bizarreness are coming out. >> there are. most disturbing the use of a nerve agent as they like to call it on uk soil. this agent is under the group of agents called novachuk which means newcomer this is five times more deadly than the agent use to kill kim jong-un's brother. it was russian made, two things, russia went after former double
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agent for the mi5 who was in the uk or they have no control over supply of some the nerve agents and someone taking them and using them. the finger being pointing at russia. now the russians are calling the uk fully-fledged liars. as you said 23 diplomats from russia have a week to get out of the u.k. they are freezing assets of other russian individuals in the uk. the uk wants the u.n. to get into this. they are calling on the other allieses to help in what is clearly, look, there is many layers to this, trish. trish: indeed. >> another russian oligarch late yesterday was found strangled to death in his home near the center of london, a friend, a dissident and a huge critic of the kremlin. this is playing out with russia going to the election ballot box, you can't really call it an election but we will, on sunday where vladmir putin we know will
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be voted in as president again. trish: wow. what are the russians saying? are they telling the uk -- >> they say, where is the proof? send us some of the samples. we'll see. what are they going to say? they accused the uk leadership behaving like a circus, quote, unquote. as i say fully-fledged liars. there is no backing down from the russians. the uk very clear pointing their finger at moscow. trish: pretty crazy. it sounds like russia is the one that did this. you don't do that on foreign soil. >> you don't. russians have a history of this. a lot of people say this is very clear message to any would-be spies or defectors you know what? the kremlin, moscow, russia, never forgets. >> we'll find you? >> yeah. trish: ashley, thank you so much. we're watching these markets, everyone. 150. we have recovered a little bit. we'll see how it shakes out in the next 30 minutes.
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larry kudlow has been offered gary cohn's job at the white house. we learned from "the wall street journal" that he accepted. maybe we'll hear more from the president today in his speech in st. louis. he is talking about another round of tax cuts. that will be music to larry's ears, i know that. we'll have more on these markets next. fidelity, where smarter investors will always be.
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trish: all right. stocks selling off amid some concerns about the president's steel and aluminum tariffs but i'll tell you, we've been bouncing back a little bit, marching back to the flat line. you can see the intraday chart. perhaps because larry kudlow has been offered the job to replace gary cohn. we all know larry very well. charlie and i both worked with larry. turns out adam did too. >> amazing. trish: we know him. we know his thoughts on the economy. but he is a free trade guy big time. doesn't believe in tariffs. charlie, how will that go? >> i talked to him a couple days
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ago. i told him not to do it. >> not to take the job? >> he started laughing. i knew he wanted the job because i think he wants to be back in the game. one thing about larry, larry full disclosure, really close friend of mine. trish: likewise. >> a guy, he has been a mentor to me through my career, you know, i have given him some advice along the way. my worry about him is that he believes, because he could, he beat his demons, which were very difficult to beat, his drug addiction -- >> which he spokes openly about. >> he talked about it all the time. he beat that, but very few people beat that. he beat that through incredible determination and faith. he is a christian. >> yes. >> he thinks that because he beat that that my belief he can almost do anything. by the way -- >> i admire that. >> i do too. he is very confident that he can talk donald trump out of all his
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protectionist leans. my point to me you don't really know donald trump that way. he is very circular thinker, not linear thinker. my view donald trump will sell you down the road and make you look really bad. that is what i told him. >> the other thing here is to reduce the entire conversation about what is happening in washington, what is happening in the economy to tariffs i think is actually missing the point. trish: good point. >> it is just one component of one chapter. as i have said, i really think ultimately about leverage and nafta. while they disagree on this one issue i don't think it -- trish: isn't that why gary cohn left? >> was unhappy with a number of different things which you discussed. >> he would have stayed i think. here is what i think -- listen, i will say this, larry is telling people, i know this for a fact, larry is telling people trump isn't this protectionist. that he is using tariff thing for leverage.
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>> for nafta. >> just to give -- he is not really protectionist. >> yes. >> trump is telling people, larry kind of likes tariffs. he is not totally against tariffs. my view is this, this is recipe for disaster. here is what is going to happen. trump has such, almost infantile economic views. he doesn't really have a formative economic philosophy. trish: that is harsh thing to say. look how the economy is doing right now. >> he did not invent the tax cut, no offense. during the campaign he actually said he could renegotiate debt to get a better deal out of our credittores which so you know is called default. >> yes, yes, yes. by the way he has. >> but you could do that with your junk bond hotels. >> which he did twice. >> you can't do that with the u.s. economy and national debt. so i think he is -- larry is walking into a potentially very difficult thing for his, for his
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reputation. and larry -- listen gary cohn, just so you know, the tax plan is his almost. trish: yes. >> although he would like it to be better. trish: like better on individual side. >> he and art laffer, i was privy and trish, i think charlie you were at a couple those dinners right, art laffer, larry kudlow during the campaign would corral some of the then candidates. i remember being at dinner for rick perry, okay, this is how the economy works. they laid out the plan very carefully. the fact that trump is bringing kudlow in is endorsement of that education. trish: or he wants to get another round of tax cuts. >> maybe it is cover, maybe trump is using, this would not be above donald trump to do this? >> what? >> using larry as cover for his protectionist policies so the market smooths out. i have a dissents voice. trish: apparently market is not listening to you, charlie. what the heck happened? another 100 points as you talked.
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>> is that me? trish: might be you, charlie. >> thank you. trish: down 240. >> think about where we are in the market. never seen the combination of what is happening. talk about trade war as rates are starting to move higher. as economy is at full employment. can it get any better? inflation is starting slowly but starting to come in. as we have longest-ever bull market. there is a lot of stuff the market ultimately is trying to digest and make sense of. i think right now we're trying to process that but ultimately the story as i have been say forge a long time, two es of earnings and employment. we have the most number of americans are earning and they're spending money and companies are growing. >> only problem is this, we need to get gdp, and larry will say this, at 3% plus bogey because if we don't get that, this is where the interest rate scenario becomes even deattached from inflation you will have a sell a lot more debt to cover the deficit and you could get a massive spike in interest rates.
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trish: everybody has been talking about that forever. >> no, they haven't been talking about that. they have been talking about, this is relatively new phenomenon because we cut taxes by 1.5 trillion. you will have to pay more for debt. just no doubt. trish: i will tell you this, larry may not care so much about that -- >> about what, the debt, trish? trish: yeah he is very much of the mind set you can spend via tax cuts. >> he believes it will pay for it. me too. i agree with that but i'm just -- trish: asking for caution? >> my only caveat -- >> suppose we don't get the growth, you mean? >> suppose there are some secular forces that smart economists have talked about that prevent the 3%, 3 1/2% growth? i'm just saying -- >> as long as we have job growth at 20-year highs and jobless claims at 50-year lows -- >> if you don't have gdp growth you can't pay down the debt. >> fair point.
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trish: charlie, adam. good to see you guys. >> by the other thing i think larry wants to be there for a year. just so you know. >> he is 70 years old. yes, i came back. trish: i'm looking forward to having him back on tv. >> i think he will be on your show every week, trish. >> i love larry. i only say this out of love. that is my caution to him. >> that he shouldn't take isn't. trish: he is a big boy. >> he was in the reagan white house. he will be okay in the trump. >> this is whole other dimension. trish: a good guy to have there. >> i don't think larry was a big fan of "the apprentice" by the way. trish: preparing to liquidate its business due to weak sales from competition from other retailers like walmart and amazon. the plan most likely closing of all 800 stores in the u.s. broadcom is ending aggressive pursuit of qualcomm. after president trump ordered the chipmaker to abandon the proposed deal on national security concerns.
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despite dropping the bid they are planning to locate the headquarters to the u.s. reknowned physicist stephen hawking died at age of 76. he suffered for decades from als, known as lou gehrig's disease. we'll be right back after this break. mom you called?
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trish: market off big time, down 245. president trump is less than an hour landing in st. louis missouri, where he will promote his latest tax cuts, maybe talk about another round of them. we will also stump for republican candidate josh holly. perhaps no time in business that the u.s. fundamentals for business better than they are today. he is also scheduled to visit boeing plant where he will hold a roundtable for business leaders. we find our very own jeff flock. he has a preview. hey, jeff. reporter: sweating a little bit at boeing. the stock is down. a little concern about tariffs and potential trade wars. by the way the president left california en route to st. louis on the old air force one. this is the old plane.
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boeing famously has a contract for the new air force one construction remember the president did to boeing when he took office, he slammed them pretty hard, remember that tweet? boeing is building a brand new 74air force one for new president, costs out of control, $4 billion. cancel the order. i thought i would be tough on boeing. i can't think of any company that has done better than boeing since president trump took office. now even with today's losses, about 320. not bad. as you point out in addition to the ceo roundtable they will do here behind me somewhere, he will be stumping at a fund-raiser for josh hawley, running for claire mccaskill seat. the president has been out in front supporting hill. josh hawley i would point out to you, trish, got more votes, in the wake of this whole presidential, or this whole seat
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battle in pennsylvania, josh hawley got more votes in presidential election for attorney general than trump got here in missouri for president. trish: wow. >> he did that based largely on a pledge that if he got the, became attorney general he wouldn't use it as stepping stone to run for higher office. well he is running for the u.s. senate. but you know, in fairness to him, republicans, they recruited him. he is a good candidate. there you go. trish: will be interesting to hear what the president has to say at boeing. we know you're on it. keep checking in. thanks very much. joining me now, democratic congressman john garamendi from california. good to have you here, sir. >> always. trish: what do you think about the tariffs now? >> i think the president laid an egg, went on 25%, 15% without any clarification. clearly there are problems in the steel and aluminum industry but even more important that they be very, very targeted
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solutions to those problems. apparently, and hopefully the president will dial back targeted and if problem is china and it is you have to go directly at china. obviously that is a problem for boeing and other countries. we don't need a trade war but we need a clear understanding dumping steel, dumping aluminum simply will not take place. trish: okay. then if you want to make sure you accomplish that, right, don't you want to have a little bit of leverage in all of this? doesn't the threat of a tariff actually give you that leverage that you need? >> you may very well need a tariff. i'm not saying that you don't ever use a tariff. it has been used in the past but there are other mechanisms that can be used to restrict the importation of material that is being dumped on the u.s. market from subsidized companies and certainly that is the china situation. trish: so, i'm just trying to understand your position here because it sounds like, you don't like tariffs in principle
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but you think they could actually work in this particular case and that we've got a lot of work to do when it comes to some of these countries that are taxing our goods or dumping good here in the u.s.? >> i wouldn't say a tariff is a bad word. i would say a tariff is a tool to deal with unfair competition in which a country is subsidizing, in this case, steel, and then dumping that into the american market. and so, as a tool to address that particular problem, yes. is it only tool? no. are there other tools? yes. trish: what else would you do, congressman? >> that is what trade negotiations are about. a tariff is a way of using leverage, that is appropriate but the president came out with 25% across the board any steel anywhere. same with aluminum. of course that particular useful? i don't think so. i think they should have gone at it in very targeted way.
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trish: here is the thing. maybe it was useful. maybe we don't know exactly what went into the negotiations behind the scenes for him to be meeting with kim jong-un. maybe kim jong-un came out and said, i'm going to pursue this meeting, et cetera, because the chinese were trying to get him to do that? part of what we need to be able to do i would think via these tariffs and via trade and our economy is use that economic power. we are the biggest economy in the world. if there is going to be a trade war, we're going to win it. >> well i think answer -- trish: i like the ideas of using economic pressure, congressman, as opposed to military. >> i'm not disagree with you. absolutely, prefer to use economic pressure and certainly sanctions, north korea is a piece of that puzzle. at the same time the north korean situation is not a steel situation. it happens to be a nuclear, a very dangerous situation on the korean peninsula.
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going pack to steel and aluminum and and and tariffs are useful leverage. that is available to the president. is he using that wisely? i hope so. that is what trade negotiations are all about. at the same time be aware that the country you're trying to reduce importations into the united states you want to be careful that you don't get yourself into a tit-for-tat trade war which there are losers on both sides. nevertheless, we do know that china is affecting the international steel market by dumping steel all across the globe and that is affecting the united states as well as europe and other countries. so china needs to be aware, they need to be brought back into a viable world trade organization which they are not cheating. trish: exactly. here, here. we're in agreement. >> you got it. trish: congressman, good to see you. >> thank you. trish: good to have you here. we'll take a quick break and we'll be right back.
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. trish: okay, in less than 20 years the u.s. census predicts senior will outnumber kids in the u.s. for the first time ever. what's that's going to mean for social security and entitlements? gerri willis is here with more. reporter: not good news for the nation's entitlement programs, especially social security, because social security in big financial trouble. consider these numbers. social security's total income minus interest is greater than
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total cost, it's actually the opposite. total cost is greater than income and by 2021, the government will have to rely on interest income and trust as it reserves from the treasury to offset social security annual deficit. that strategy is okay until 2034 when the fund goes bust. benefitting will be paid 100% tax income refees and only to cover three quarters of the estimated need. now the situation gets worse overtime as the population ages and more and more people enter retirement years. keep in mind, by 2030, the entire baby boom generation, 76 million folks will be older than 65 and will get the social security payments. retirement experts don't expect anything any time soon from congress, which will be focused like a laser on midterms and then a general election. doug of the american action forum has this to say about the
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numbers -- trish? trish: thanks, gerri. down 211 right now. liz, over to you. liz: we've got a little irony here in this hour, trish, we're awaiting president trump, he will land in st. louis where he'll tour a boeing facility that produces some of the u.s. military's top aircraft including the f/a-18 super hornet. the f-15 eagle as well. the irony to the right-hand part of the screen with the dow down 204 points, it's boeing, that same company that is percentage loss leader right now, down 2%. so the markets began to nosedive around 10:14 a.m. eastern time when headlines hit the wires that the white house confirmed it is seeking a $100 billion reduction, trimming in the trade deficit with

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