tv Cavuto Coast to Coast FOX Business July 26, 2018 12:00pm-2:00pm EDT
>> what will markets be doing. >> will we have a five handle? stuart: that is jargon. will growth rate be 5% or more. wonder what will be the market's reaction if we get strong growth. >> happy friday. stuart: neil, its yours. neil: stuart, thank you very much. see what is happening at corner of wall and broad. this dow reading could give you a different impression, because it is ignoring facebook. despite run-up in the dow, mark zuckerberg net worth has been tumbling. i don't want you to worry too much about him but on paper, more than seven teen billion dollars he is off. slid to the sixth richest man in planet. for a while the second richest man on the planet. that math is changing very quickly here. with facebook it was all about delayed expectations that were realized when very few thought they would see it. we should add as well, there is a camp, that says this is way
overdone, whether at 20% fall-off, 23% fall-off, worst levels of the day. we're now about 17%. what is justifiable read on facebook? are all the problems, privacy issues. let's get the read with deirdre bolton. "dow jones newswires" chief editor glen hall. "making money" host charles payne and. is this beating today in facebook's stock in your eyes justified? >> yeah. i'm kind of surprised how long it took. i sold all my facebook many months ago changing news feed formula, engagement level. i was so surprised it seemed to go through the congressional testimony kept going up. i think it is proper time. i'm not sure if this is the end of it. neil: so when you were selling, you were concerned what happens with subscribers and growth many
took for granted? seems like the market always ignored that. now the chickens have come home to roost? >> yes. their saving grace is instagram. they lost a lot of people, grandmas came on facebook and younger kids went and left it. with instagram they have been able to gain, grow an audience there, but overall the engagement, negative news, senate talking about privacy controls that will be the real issue. what happened was, they stuck their head out the minute had knit our democracy, saw you will privacy we got concerned. people going what information do you have on me? start making people toggle their information too much, with hold information from facebook it will change the ability to monetize. neil: if this would have pervasive effect on industry, charles, it hasn't. they all have various privacy issues, think about it, twitter, google, alphabet, we've not seen widespread fallout. >> google, apple at all-time
highs. spotify was interesting, because initially the stock was hammered when they announced their numbers and pointed to increased european regulations now now it is at an all-time high. it seems to be company specific. i do agree with writings on the wall with plat stowing of monthly average users. again 2.3 billion, you will not grow 50% every quarter. so they need lightning to strike again. i'm not sure where the political stuff will take them. to a degree when i listened to conference call, sounds almost like an excuse, sort of like the weather or more recently tariffs, in fact it might be more business-related issue. good old-fashioned business-related issue. they have been extraordinarily successful. the stock is juggernaut. hard to keep that going forever. neil: glen, what i wonder about, correct me if i'm wrong on numbers here, they have 2.25 billion users, right? we're running out of people. >> only 1/5 of the global
population. >> the other 5th doesn't have internet access. neil: that could be it. there are high expectations for this company based on the juggernaut growth it experienced. what if that is basically being called into question here? >> well there is two things being called into question which is, their ability to monetize. so their growth is heading in the direction of instagram. ad servers in instagram are not as lucrative as traditional. that is risk. privacy issues will hit operating profits for a little while but on the other hand if think get that right that could only be a temporary slowdown. one thing we have to keep in mind, neil, they're talking about a slowdown in the growth rate. they are not talking about decline in earnings and revenue. neil: that is a very good point. other companies are not as punished as facebook is. apple getting one day hit 75 million. >> this is -- i heard these analysts, you could hear them
sweating right, on this conference call last night, so anxious. i think that he is crazy like a fox because if you feel the hot breath of regulators on your neck, what better way to calm everybody down than say, oh, we're taking one for the team. we're actually going to spend to make sure our platform is a little bit more solid. we're actually going to spend -- neil: that isn't what innerved investors. >> that is not what unnerved investors. i think what unnerved investors is revenue miss and slow growth story. i'm very much with glenn. this is still growth, as far as revenue goes, 30% range. there are a million companies out there would kill for numbers like that. i do know what you're saying about saturation, particularly in north america and europe which is where most of their users are but i mean i think the world is more mobile. facebook very much has a handle on that. if not through instagram, it is through messenger or whatsapp. they have other tricks.
remember too when facebook pivoted to quickly to the mobile strategy. this is a mess, they took much smaller hit at the time but i feel like mark zuckerberg and people around him, they're pretty clever. i think they are in this for the long haul. i own facebook. >> resetting expectations and use later. >> at the same time getting regulators off their back. look, we're investing. we're doing the right thing. beat us up. we'll take it. then they get -- >> privacy and -- neil: do you think they anticipated reaction they got? >> yeah. they were pouring it on on that call. go ahead, freak out. >> otherwise known as kitchen sink comment. >> that is exactly it. neil: cfo got on the line, he was like debbie downer. >> how great instagram was. zuckerberg was talking about good things. cfo came on mentioning by the way revenue is not where it should be with the new products. >> we saw old days kitchen sink,
get it all out. they can quietly tweak behind the scenes and -- neil: is there something bigger, my teenage sons don't know facebook from hole in the wall. it is just not cool. i'm wondering if that is an inherent problem here? >> that is why they have done a good job with messenger, whatsapp, instagram. they will have to acquire their way there. hard to imagine getting young generation on facebook unless the platform totally changes. neil: so, there is a style problem too for them, right? >> when things become not cool the next crop of generation happens. >> if you break it out, so i think they could --ish instagram is just pictures, right, the deal there? >> it is becoming stories and other feed. they still have a big bank account to continue to buy their way to growth. >> even the saturation. they're floating balance.
they will -- balloons. they will connect more of the world. if you're in the middle of nowhere, they will get you internet access to you can become a facebook user. neil: charles, it is only facebook for the time-being. >> right. neil: what do you make of that? >> i think it's a great sign. one of the big arguments against the rally it is fang names. the market rally has to test or the rest of the market has to see what happens when one or two of these names fall out of favor. will the market rotate to other parts of technology? i love what i'm seeing for instance, with cloud stocks. citrix is up big. ibm is up big. today amazon will tell us about cloud. advanced micro devices underperforming chip name at new 52-week high. i love the idea that the money isn't going to the sidelines but maybe seeking new opportunities. there is a lot of hidden value in my opinion in technology and certainly beyond technology. yesterday the transportation names were huge.
ups and others i think there is a whole lot of value out there masked by all the money, passive investing mostly driving this, a handful of names. neil: you know, when you got rid of your facebook stock some time ago the rap on this industry those who sell regret later. that, it was found to a great buying opportunity. you obviously didn't feel that way. you still don't feel that way? >> i don't want to be a pig. i was fortunate facebook came out freshman year in college i was able to get in really early and rode the wave. i didn't want to be too greedy. neil: wait a minute. you were in freshman in college when it came out? >> it changed everything. neil: please leave. when do you think of that? every time to charles' point, "fang" stocks were dipping, you left them, no, i want deal with it, you missed opportunity to -- >> people may see this as opportunity. this big dip, come in at lower price see where it goes.
we're not at lows we saw earlier. maybe it has further to fall before it comes back up, do you think there is a bottom here? >> i think what i'm waiting for, i think when morgan spurlock did "super-size me," went after mcdonald's, broke things up and changed our look at food. neil: not everyone but i see what you're saying. >> facebook is becoming the stock congress will get their hands around and privacy thing freaks everyone out. if they have to make terms and conditions and really show you what is going on it will freak people out. they're working on fake news but they don't want -- neil: if they start going after them, fake news, whatever that, then, they're piling on others, right? isn't that the concern? >> google has 10 times the amount offer pepnal data on us that facebook does. facebook has been the poster-child, if anybody in congress is looking at gigabytes of data it's google. >> amazon owns our wallet.
they have the financial data, some of the most valuable data. >> trump tweeted about twitter banning. there is is i think is regulatory pain for them but the operative word is free. as long as end user, i'm sacrificing some of this, you can't get in a lyft car these days without being filmed. people are saying i will give it up. i don't want to, i will kick and scream and demand justice but if it is free i will stay. neil: you don't agree this was indictment against a company that gave short-shrift to that? there is other view that people really don't care -- >> the narrative on the call, was hey, we'll do all the right things. here's the problem with that, deirdre, too. i still think they will be used as a platform for manipulation in the midterm elections. >> yeah. neil: they all are. >> exactly. they will not escape any sort of scrutiny or criticism, maybe they're trying to get ahead of it. listen, it es an amazing name,
an amazing platform, for them to keep up this incredible story they will have find the next instagram and that could be difficult. >> if they want to buy, i'm playing devil's advocate, i agree with a lot of your points they could -- >> for 10 years all they did was buy back their own stock instead of buying themselves into the cloud and whatever was hot. >> buying a company, you mentioned spotify, right? they have a very interesting operating system. it unique. that is an option. we saw microsoft buy get hub, and got 23 million users or -- neil: think about it, when a signature-defining stock has trouble, say in the days when apple would miss an estimate or figure, the whole market would feel it. >> right. neil: we're up about 150 points. >> to charles' point earlier we don't have the signature. we talk about fang, that is a bucket of stocks. neil: what does that say the up the degree we are, fast book
notwithstanding technology take that out of the equation, fine? >> i think we can stand to get through one of these "fang" stocks having a little bit of a slip and people are always with facebook expecting that is all it is it is just a slip and it will come back stronger. i don't know if that expectation is real. but i think we see amazon showing there is another side to the tech story when it reports. >> because of nature of passive investing, billions poured into it, almost a guaranty these stocks come back. they have to buy them. if you, if you, any of our viewers right now sent us a portfolio of five mutual fund, took top 10 holdings in each, out of potential 50 stocks you will get 13, 14 names max. they must buy them. they keep buying them over and over again. that is the danger inherent with this at some point. neil: thank you, guys. they were speaking, hard-line conservative, i guess that is good way to describe him, congressman jim jordan has announced he is going to run for
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>> there is no precise timetable set because that's not a meaningful thing but the president made it very clear, he is not going to sit around for the normal two, three years, to get a trade deal done. since we've got the broad presence pills agreed -- principles agreed, it should be more filling in the blanks than starting from ground zero. neil: all right. i think in that chat with maria the commerce secretary is talking about that deal with the europeans but in case he was also arguing that this could set the stage for getting the chinese to bow to our wishes i think this gentleman might have you thinking again about that before i get to my next guest, this is coming from the chinese trade representative who saying that the united states is demonizing china and attacking its economic model to divert attention from itself and china will never bow to u.s. efforts to tie its hands in a new set of
trade rules. quoting him directly. the u.s. is seeking to divert attention from the international community and ease the heat on itself. this is coming from ambassador cehn thatwith written statement providing to reuters, chinese essentially saying, no, not happening. cme group chairman and ceo terry duffy. always good to have you, terry. that seems to be china's way of whatever you were able to cobble together with europe, do not assume you can cobble anything approaching that to us, with china this goes on and on. what do you make of that? >> you know, neil, i don't know what to make of it but we have multiple trade agreements around the world today. so i'm assuming what the chinese are saying, whatever you work out with europe, just don't think it is applicable here to us in asia as well. we want our own trade agreements with you and the u.s. that is only thing i can make with that. i'm not on any inside baseball. i'm here to manage the risk of
different issues they have with tariffs and price dislocations, not to determine trade policy. so i think it's, you know, i'm not surprised to hear what the chinese are saying because i'm sure they're very concerned they are going to get painted in a situation where they don't get a chance to negotiate a trade de. they are being told a trade deal. neil: yeah, i don't know how that will all work out to your point, terry. i wondering what is the fallout in futures trading, some of the related products which are exchanged deals, i'm talking soybeans all these other agricultural commodities, liquified natural gas which we're told europeans will buy more down the road, how is that going? >> it is going really well, neil. as you know we're the etch about mark price setter especially on the grain products around the world. the chinese are buying more beans out of brazil right now. so the price of soybeans out of brazil is inflated but people
are trying to manage that risk in brazil in the u.s. market but then there is a glut of u.s. beans here. so prices are a little bit more depressed. farmers, they have planting intentions. they go forward with them, thinking there is going to be a export number they have to achieve. all of sudden one of your biggest clients decide to go to another country to buy their products. we're looking at $8 beans here roughly in the u.s., and a different price in brazil. it is a little difficult to manage the risk but people need to do it because no one knows where this is going to end up. neil: the president as you know is in iowa today. obviously that is a state with key agricultural concerns and worries. the president offered 12 billion-dollars in relief to ward off effects of coming tariffs. many who are feeling it right now. others criticized that, saying it has made artificial the very things the president wants to address in his tariffs period but what has been the fallout on your exchange as a result?
>> we haven't really seen much of a fallout. our business in agriculture in july is roughly down 20%, neil. at the same time we're coming off a record quarter in our agricultural products quarter, open record interest in trade and grain products. july is traditionally a slower month regardless. so it is not a really good barometer what is going on in the tariffs. what i think is pretty interesting though, as you just referenced with secretary perdue announcing $12 billion to the farmers, i am only quoting a farmer, one farmer says that won't buy me a tank of diesel by the time it gets to me. it goes to show you how large the u.s.ing a cultural market is. these issues need to get resolved, not with just a subsidy coming out of the government. neil: i don't want to get too in the weeds, terry, soybeans is a good example. you would have thought they would shot back, or shot back
appreciably on the notion europeans will buy more soybeans. i come to discover, individual farmers and entities in europe can do so. there are no restrictions placed on them in europe anyway. it wouldn't come close to make up what the chinese are shutting down. so just supply and demand sense what does that mean this. >> well i think, neil, it's a little premature to judge that just yet. i will say that we did see a bit of an uptick early this morning after the conversations of yesterday. so small, but we did a up tick in the pricing and the activity. maybe that is an indication people feel comfortable we will get to see more normally as it rights to the soybean market. i'm not here to predict what happens between the governments. we're here to manage risk for the participants. neil: i thought i would catch you at a weak moment. >> which you're good at doing with me. neil: you never know. end of a long day, what did i
say? is it your sense that maybe, and this i'm just trying to get the lay of the land from you, the president is maybe more pragmatic, flexible on this trade issue than his rhetoric would indicate and that might herald some good news and one of the reasons why the market was ahead of that announcement with the ec head was that, that was in living color so to speak? showed a pragmatism approach that was very, very flexible and allowed both men to kind of save face, what do you think? >> well, i actually think what you just said is absolutely correct and you know, the way our president moves is obviously very swiftly and decisively. so whatever he was talking about with europe he obviously was able to come to a conclusion yesterday with the europeans in town on the trade issue. i don't think a lot of people saw that coming including myself. i thought there would be more of
a drawn-out process. he has come to that conclusion already. i think that is a good thing. i don't want to say it was just rhetoric. he was very serious in his approach towards tariffs and i think there is a lot of participants feeling the hurt as it relates to the tariffs. it doesn't really reflect in the numbers just yet, it might take a couple quarters before it reflects. i think the president is very decisive. none of husband should be surprised that the announcement came out he would go forward with the europeans the way he is going to, then that for the most part is in the rear view mirror now. that is the way we should look at it. neil: there is old adage, improving economy, giving us improving markets. improving markets give you a improving economy. you run a different beast that could be reflection more of inflationary environment too, or commodities and appetite for them of all sorts. how do you look at that? would the economy likely to register strong growth in the second quarter when it is released tomorrow, that that's the wind at everyone's back?
>> well, i think that is very true, neil. but i think when you look at especially growth of my business, you said it, i run a bit of a different business than capital formation, i run a risk management business, when you look what we have been able to accomplish, you see more and more people are managing the risk on our asset classes because even though unemployment is at historic, 20-year lows or whatever the number is at there are other economic factors that look very positive for the u.s. and the economy. there is a lot of people because margins are still very, very thin need to manage the rick of those products that is what we're seeing here. whether that is a barometer where the economy will go, other than that people don't trust up or down and they need to mitigate the risk at cme. neil: you have had double-digit growth. most of the asset classes that you represent, i think five out of six of them. something must be going on? >> no. there is no question.
that was i was going to say to your viewers, people as much as the economy is good, businesses still need to manage that risks. we're the natural place for them to manage their risks. you may not manage 100% of your exposures, people are hedging up 10, 20, 40, 50% of their exposures, because you do not know. the great example, neil, when february came along, the volatility clock ticked 12, nobody saw that coming. and so nobody could afford to let that sit on their books, take exposures when volatility rearses its ugly head so quickly. that is the way the works in all different fields. speed is critically important. people need to make sure their risks are managed. neil: all right. maybe next time i get you to say something embarrassing. you comported yourself. >> i'm happy to. we can keep this up. i will say something. neil: very nice having you, cme
group chairman ceo, terry duffy. to terry's point, the market cost be a very good way of handicapping the way they think this trade thing is going. his markets in particular, what is happening on the front, natural gas, prices moving up a little bit. we don't have to dwell on this guys. i'm not talking about that. they are running up a little bit. but not to the degree i think because they don't know numbers that are involved. they don't know, for example, how many more soybeans europeans will purchase. they have no idea down the road how much more liquified natural gas the europeans will purchase. we know it will take many years. we don't have the wherewithal or facilities in place to get that to europe. there is a lot we don't know. that is why the reaction isn't what you think would be. prices are up a little bit. they're not up a lot. more after this. its show of strength... or its sign of intelligence?
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>> welcome back to "cavuto: coast to coast." i'm nicole petallides live on floor of new york stock exchange. the news of e uconn sessions when european commission president jean-claude juncker met with president trump and decided to move towards zero tariffs the market jumped. in fact the s&p 500 came out of correction territory. it was up more than 10%. you can see that we're up more than 10% than our february 8th lows of 2581. that is a notable move and brings us out of correction territory and out of safety of government assets into risk of stocks. technology clearly outpaced twitter up almost 80%. advanced micro, adobe, sales force intuit as the best
performers this year. look at the length of the correction overall, 115 sessions it is the longest one since '84. the average going back to when the s&p began is 51 days. when i talk to traders, neil, they tell me other things. they're investing in defense. they want to pick up amazon on the dip. tomorrow, neil, that gdp number will be so key. so the whisper number is even up to 5%. so that is the total. whether or not these concessions will mean nafta, china, back to you. neil: nicole, thank you very much. we're waiting for president of the united states. he will have a roundtable discussion. right now he is at northeast iowa community college campus looking at a manufacturing lab at the college that has benefited from a lot of advanced technology and interests. let's listen in. he might say something here. >> very good. >> thank you. >> do you know where you are going to work? >> i have a couple of different places. i worked at a shop as intern.
but i have a job interview next week with job deere very excited. >> good company. you will have plenty of options. thank you. they didn't used to have so many options. now they have options. have a good time. >> thank you. >> mr. president, our students are really -- [inaudible] that is the beauty of the colleges. with government leadership we will have -- [inaudible] we used to call ourselves -- right now community colleges are also four years and have continuing education. >> do you like that better? do you like that better? >> absolutely. that allows us to -- [inaudible] >> you just have the flexibility to meet the needs of -- [inaudible]
>> with the help from the government we have -- [inaudible] you're making regulations less onerous. >> we're not finished yet. >> i know. on behalf of our businesses -- [inaudible] before they do that you need to know, before running the program here they have to know what the program does. you will see the -- [inaudible] [inaudible conversations]. >> how are you? [inaudible conversations]
>> all made in america. that is important to you. >> to me it is important. some people don't feel that. to me it is important. >> thank you very much. >> we can use the technology to do everything from drill precise holes in certain locations, like from a oil pump to motor mounts. neil: we'll stay on this, folks. what the president is doing going to northeast iowa community including campus. they have been able to beef up the manufacturing lab, getting a lot of corporate help from this. the added benefit as president mentioned very hard to hear here, automatic expensing that do a lot of this technology and work can do, on top of lower tax rates right now allowed them to be more generous with their wares including sharing the loot if you will with community colleges. again ivanka trump with the president right now but this is part of a two-state tour that will include illinois later on.
not only both states that have burgeoning technology centers but agriculture send h centers that can -- let's go to hoover research fellow, former romney advisor, lanhee chen. as we look at these developments here, i wonder what you make on the inroads he is making? selling the tax cuts, selling immediate expensing of goods, purchases, equipment, that allows companies, even schools to write that off immediately. and, buy more stuff to help kids in this case, what do you think? >> yeah, neil. economic policy analysts were always quite certain immediate expensing provision is the tax reform bill would be tremendously important to jump-starting economic growth. this would be a big factor. yes the lower rates are important. permanency of lower corporate rate is particularly important. but immediate expensing provision is huge. you couple that with efforts to
really get worker retraining and worker up skilling right, which is the focus of administration, ivanka in particular. the president announced a a executive order last week would partner with private sector industries to get job training right. we haven't got job training right in many decade and this is great improvement and possibilities here. neil: i wonder can you have too much of a good thing? immediate expensing allowed companies to have very big writeoffs right from the get-go, that robbed washington of revenue, hear some tell it, tax cuts are one thing, this feature that allows companies and colleges as well to do what they're doing, has robbed uncle sam of money. what do you make of that? >> yeah. i mean the deficit implications are clearly a problem. and that goes, immediate expensing provision obviously is pretty significant here for first four or five years.
it does phase down. neil: right. >> bigger question is in the long run. have we done enough to create the kind of growth that is going to generate more revenue? i think the hope always was tax reform would, not pay for itself, that problem would not be right way to think about it but tax reform would spur growth. neil: do you think the cost of this, i would imagine 10 trillion in additional spending next 10 years, that would be a bigger worry but you know obviously these things take time, don't they? >> they do take time. the tradeoff here is going to be how much of this short term growth, versus longer term growth. immediate expensing provision has sugar high to it. the idea they will juice growth in the short run. create benefits in the longer, run, immediate expensing, once some of that capital expenditure wears off. the question will be has the tax reform done enough to create long-term sustained growth we need to address deficit implications. jury is still out on that one,
neil. neil: lanhee, always great to have you on. apologize for breaking news. great guest as always. we'll squeeze in a break here. waiting for president of the united states come out here. looks like factory. that is a community college beefed up manufacturing arm. got help with that and largely buoyed by president's moves on tax cuts and immediate expensing. sounds like accounting nerd attack i apologize for that. that provided wherewithal for the school to do what it is doing. entertaining the man that provided it. the president of the united states. more after this.
neil: moments away from hearing the president united states. we have north dakota senator john hoeven what he makes of all of this. what do you think, senator? >> that is good step, we have agreement with the eu to reduce tariffs, expand trade, soybeans, energy other things. a very positive step yesterday. neil: do we have something in place? i know that is the goal they will buy more soybeans and liquified natural gas. anything is better than what we have now, i understand that, but is it a big, big deal or do you know much about it? >> i was up there yesterday at the white house when it was announced. we were there for the announcement. we went to the roosevelt room to talk about it.
sonny pert due, talked about that part of the equation. we'll not have a trade war. we'll put teams together from the eu and the u.s. and they will work on an agreement to reduce tariffs, expand trade. they highlighted some of these areas as i mentioned, soybeans, energy, other areas as well. neil: now the president has committed $12 billion to help farmers adversely affected by even the talk threat of tariffs. do you think that was a good idea? >> i'm supportive of it. remember the goal is to get better agreement, better trade agreements and get them in place as quick as we can. to that objective i talked to president specifically how soon can we get nafta going? we're still talking about early fall. so the assistance is a short-term measure because our farmers are hit disproportionately by these retaliatory tariffs. the goal is to get ther trade agreements in place whether eu, china, nafta.
we need to keep pushing to get that done. neil: what is weird show, it was like a commitment to help farmers who were adversely affected by tariffs they never wanted to see. i'm thinking to myself, senator, this sometimes happens where a thought comes up that might make sense, that other industries are going to want and expect the same treatment. does that worry you? >> well that is why we have to continue to emphasize the goal is better trade agreements and getting them in place as soon as we can. we also have to recognize the first place we get the retaliatory tariffs are against our farmers, our ag exports. we have a positive balance of trade in ag commodities. that is why they get hit first and hardest. it is a temporary measure. it send as signal to our trading partners that our administration is serious about getting better deals and getting them in place. we're trying to work to keep that process moving. as you say, it affects not just
farmers, ranchers, but other industry sectors too. we want markets we want trade. that is the objective. neil: sir, you mentioned the president is serious about this. i have no doubt that he is but i wonder if he is showing a little bit more pragmatism when it comes to the trade issue his bark might be worse than his bite? he looks forward to continue to work with the europeans, even holding off on certain tariffs until they deal with this stuff now. there were disappointments before. we cobbled together something similar with china couple months ago but it all fell apart but what do you think of his approach to these issues? >> he was very upbeat yesterday. he is a good negotiator. this is a step, clear step forward with the eu with a huge market. we're not going to have a trade war. we're going to expand trade. we're putting together our best people to figure out how we get that done. i came back, said, great, good step. but how about nafta? we have to keep this moving. can we still get that done early
fall? he indicated that is realistic. so i go back to -- neil: i'm sorry, senator, he said that is realistic, nafta, most people have been focused on bilateral move he might make with just the new mexican leader, not necessarily with canada. is that your understanding that would be mexico and u.n.? >> it could go in the sequence. he said negotiations with mexico are going very well. i get the sense it could be something with mexico first. neil: it's a little weird we might have better relation with new liberal, some call him a socialist than we do with the guy north of us? >> neil. that may put real pressure on canada then to come around, to get the deal done, right? neil: yeah. how do you think it stand on the other things you want to see? economy, could get a strong gdp report in the second quarter. how do you feel about republicans prospects in november with all of that? >> that is why i keep working on the trade piece, because if you take the tax relief, regulatory relief, we start to get trade agreements in place, our economy
will be very strong. that helps people where it counts, right in their pocketbook. higher wages, keeping more of their pay, economic growth. so that is why we're working so hard on these things. neil: you know, senator, i would be remiss if i didn't mention the chinese reaction to the european deal and what the chinese have been calling strong-arming approach on part of the administration, that they won't be bowed by that i could go on and on, that is the gist of the chinese trade minister's reaction. what did you make of it? >> that is why we have to stand up to china. they're violating copyright laws, patent laws, not fair in trade barriers. we need them to come around treat us fair, protrade, fair trade, reciprocal trade. they need to work with us. hopefully they're starting to recognize that. neil: i know you can't give away secrets but when you were meeting with the president did he say this is sort of like
triangulating the chinese? that what is he putting together with the europeans is a way to sort of push the chinese into a corner? would you welcome that? >> his whole life he has done negotiations on deals. he is negotiating again we're concerned in short term about impact on tariffs in the short term and industry sectors. we're taking with agriculture. he is trying to negotiate better deals. that is ultimately what we want. neil: senator, thank you very much. we're waiting to hear from the president in iowa. he will go on to illinois later today. making pitch, everything that benefited communities come out of white house, lower regulations immediate expensing of products and purchases that companies even, community colleges like in this case do. and that's all happening because he is the president of the united states. he will no doubt telegraph, maybe for all i know, announce what the gdp report will be for
the second quarter that is due out bright and early tomorrow morning, indications are if larry kudlow was right talking to our stuart varney, for a good number. we'll be back in a good 90 seconds orpl so. with liberty mutual new car replacement we'll replace the full value of your car. ♪ liberty. liberty. liberty. liberty ♪ at crowne plaza, we know business travel isn't just business. there's this. a bit of this. why not? your hotel should make it easy to do all the things you do. which is what we do. crowne plaza. we're all business, mostly.
neil: the president of the united states has arrived at iowa event where seeing first-hand lowering regulations, and allowing schools, the community college there, to take the savings and plow them back into this case, manufacturing arm at a community college, that helps give kids a one-up on foreign competition, much more than that oversimplifying it here. the president now to respond to that and to let those know at this roundtable he has their back. has farmers and their back. has those who are interested in expanding in this case, iowa's manufacturing and technology industries. the president of the united states. ♪ >> great job.
has been tremendous support. finish it up, right? thank you very much. thank you very much, for being here. wonderful people. wonderful state. we've had great luck in the state. i think we're really putting it back. i'm very close, i have to tell you, to pulling off something you've been looking forward many years the 12-month e15 waiver. we're very getting close to doing that. very complex process. [applause] i stuck with ethanol, most other candidates were not there, put it mildly. kim, terry branstad, who is right now you're a great ambassador to china. [applause] we could not have put him in a more auspicous location or more important location from the standpoint that terry is out
there doing, really not an easy job but i think in the end it will work out very well. it will be, it will be something special. ii want to thank secretary wilbr ross for being here. secretary alex acosta. [applause] alex. governor kim reynolds, one of the reasons i liked terry, he was the longest-serving governor in the history of united states, i think 24 years. he was sort of seminewly-elected again. i said, how about this. let's see. first i had to figure out who is, who is the lieutenant governor. i knew it was kim. i think she would be a great governor. she turned out better than a great governor. you have -- [applause] rod told me that. i said, rod, how is she doing. he said she is phenomenal. she is fanominal. she has been. you're number one in almost every category. you're in the top three in jobs. you're in the top three of
employment. you're number one state. number one state. [applause] that's right. those are very bad sound bites for whoever you're running against. i don't know who you're running against but i can tell you that is not easy. when they rate you as number one state for a lot of things, especially on economic basis, the job you're doing, kim, has been fantastic. i can tell you. i spoke to terry recently. we speak a lot. he thinks you're doing a great job. >> thank you very much. we appreciate the tax cut. [applause] >> also sits up here with rod blum. without him, without rod we wouldn't have our tax cuts. we have massive tax cuts and reform. i don't mention reform, it is too complicated to talk about. people talk about tax cuts. we didn't want to use the word reform but the reforms are very
important thing, what we did. even included in that bill is the individual mandate. we got rid of the individual mandate, the most unpopular thing of obamacare. obamacare is on its way out. you look at the costs of obamacare, is is horrible. [applause] it was done but one man decided, late in the evening, that he would change his vote. isn't that wonderful. so he changed his vote. he surpised all of us that it was dead but virtually on its last legs right now. alex acosta has come up with incredible health care plans through the department of labor, association plans, where you associate, where you have groups, you go out and get tremendous health care at a very small cost. it is across state lines. you can compete all over the country. they compete. alex i hear it is record business they're doing. we opened two months ago. i'm hearing that the numbers are incredible. numbers of people, really good health care instead of obamacare
which is a disaster. you get great health care for really fraction of the cost, highly competitive. costs the united states government nothing. yet you're getting much better health care at very small prices. i want to thank you. the job you did on that is incredible. now he is is doing phase two. that will be announced very shortly. that will be a very big group of people nobody even knows about. >> that's right. >> secretary azar is doing a different form of health care turning out to be incredible. we're working very hard on medicine prices. you probably saw where pfizer actually announced a price increase and then they, we weren't happy. they took it away. they took it away. that has never happened before. i thank pfizer for that. [applause] and merck, likewise, and novartis, a number of, they announced increases. boy, i must have very valuable
position, wilbur, i was extremely angry about it. all of sudden they call called, they will retract our price increases. number one has to be good business or else you don't do that number two i appreciate they did it. we're working very hard getting prescription drugs down, prices down. we'll have big, what upset me. here we are talking about bringing down the prices of prescription drugs. you had a couple of companies announce an increase. and now those prices will become really tumbling down. we have something else that we did, right to try. would you really, you would, you were so instrumental in that, rod. and i appreciate it. you and greg and everybody but, i have been after it for a long time. i never understood it. they have been trying to get it passed for 42 years. you know what right to try is? actually a great title. a lot of these names i don't like. i love this name, right to try. this is where people are
terminally ill, they can't get a drug that shows great promise because the company or because the country says, well we don't want to let anybody have a drug that will maybe hurt them. they're terminally ill, they want the right to try it. they travel, most people don't have the money so they literally have no hope. this way you have incredible drugs coming out. it is too early in the stage to let them go out to the mass public. many of them will work. but even some of them will work. you have the right to try. right to get these drugs. i think it is going to be a fantastic thing. rod blum, some of the other folks, really been instrumental. that was important one for rod. important one for lot of people. incredible difficulty. you would think that would be easy one. what is easier than that? drug companies didn't like it. because it showed badly, people were very, very sick. they didn't want it in the
statistics. insurance companies didn't want it because they didn't want it because they didn't want it to get sued. the states didn't want it because there was liability question. we got them all in the room. look, everybody will sign a document, we'll take this, take away all liability. no liability, no suits, no nothing. but we'll have the right to try. and they said, i was there. you could say i led it. and they said, they said very nicely, oh, well that works. everybody said that works. in terms of the statistics for the drug companies, and they don't want to have that as a bad stat. these people were really far down the line in many cases. we don't count that stat or have a different set of statistics where it's terminally ill people. one of the things you get out of it, you find out whether or not it works. the thing we wanted to get is give people hope, and that's what they got. that was something that was really good and i'm mentioning because rod was so helpful with that and other things. so i want to thank you.
[applause] so i also want to thank the northeast iowa community college president dr. lange chi wi for hosting us. >> they did a great job. >> very good, and really fantastic what we saw, we saw some of the students and they're enthusiastic and they're going to have a great live. we have so many companies moving back to the united states now, and what we need is talented people. people that have knowledge and people that know how to use those incredible machines that you don't learn overnight, right? and what you're doing here is a great example. lot of people are studying it. what you're doing in iowa with kim and everybody else and you are complimentary of your governor, i understand that. what you're doing is really incredible. people all over the country and beyond the country are studying what you're doing right here in iowa. thank you, doctor, very much.
congratulations. >> thank you, mr. president. [applause] >> a person who is actually a very, very good student. went to the wharton school of finance and always a great student. i said ivanka, are you going to do your homework, i already did it, dad. then she got a's, i said she doesn't work, doesn't work. i remember when she graduated from wharton, she did well and her friends said we had to work harder than she did. i don't know if they liked her or not, everybody likes ivanka, she led the initiative and continues to. feels it's so important to job training. again, we have so many companies coming in to this area but all over the country, and the biggest problem we have is we have to have people with talent and skill, otherwise we're not going to have these companies come in. but we are learning and we're teaching a lot of people and they're great people and ivanka
really has been leading that initiative and i want to thank you very much. [applause] >> in fact, ivanka before we begin, maybe you want to tell them about the bill that was passed last night. >> absolutely. so after many, many years since 2006, congress, on both sides of the aisle could not get together to reauthorize and modernize a piece of legislation that is so critically important to what we're all here talking about. career and technical education. perkins career and technical education act passed the senate last week, passed the house this week and will be signed into law by the president after over a decade of languishing. >> maybe i'll veto it. [applause] >> maybe i'll veto it. let's see, i think i'll veto
that bill, what do you think? >> no, no, no. it's going to affect 11 million students and workers across the nation who are speaking to acquire the technical skills to be able to thrive in our modern and increasingly additional economy. it is very, very exciting, an enormous piece of legislation, and it's going to be transformative to education across the country. and i was actually here in iowa just this past march with the great governor reynolds, and we toured one of the facilities that benefits from perkins, this facility benefits from perkins and it's great legislation that was in dire need of being modernized. thanks for the president's leadership and thanks to the push of the white house. it got done. we're very excited and will be signed into law. [applause] . >> good, rod, get that to my desk, all right? >> to sign it, right?
>> i'm changing my mind. be careful. >> ivanka? >> thank you very much. i want to also send our prayers to the communities who have been affected by the recent devastating tornadoes in central iowa. that was all over the news, and i watched it. i love this place, it's been a very special place to me and whatever we can do, we're doing. we have a lot of federal people out here, some incredible people, and they're all working with your representatives and i know they're doing the best they can. i will tell you that's a terrible event. it's tragic. the power of nature. people have no idea. moments ago, i toured the school's amazing state of the art training lab with the doctor, and preparing really american students for the work of the future. for their life's future, they're going to be making a great living. they're sought after, they're really sought after, and i congratulated them.
we're making tremendous progress on workforce development next week i'll sign the legislation that ivanka just talked about that is going to be really something, and really an amazing achievement. between that and for years how many years, ivanka, working on that. >> since 2006. >> 2006, but we're signing one for the vets, choice. that's been up for 44 year, trying to get choice where you wait in line for weeks and weeks and weeks, you're not very sick and by the time you get to see the doctor, you have a terminal illness. they could have taken care of it very easily if you got early. but weeks and weeks and we got choice, and people said you couldn't do that, and we got it. that's where you go out and see a doctor and the country pays, these are vets, the country pays the doctor's bill which is a tiny fraction of the cost what would happen and what has been happening and the lines are being reduced so drastically and the vets are
able, if they can't see, get immediate service, they go outside and get a local doctor. we have deals worked and pricing worked and everything worked and get taken care of. it's great. we passed accountability, and you know in the va you couldn't fire anybody. you knew that. this man knew it better than anybody. he's a tough cookie. if they don't take care of our vets, you want them out. and what happened is you couldn't get it. it was 45 years trying to get accountability. now, of course, the unions weren't thrilled and civil service, you know, was difficult, and that would be the stumbling block, that's why they couldn't get it passed, va accountability. they don't treat our vets right, we look at them and say sorry, you're fired. get out. out. [ laughter ] [ applause ] >> and that's really, to me that's a big one, and what you did last night, that's only been from early 2000, so that's
easy by comparison, but those two bills for the va, for the vets was just incredible. we're really doing a job with the vets i think, never been like this before. but i believe that both of them, but in particular choice it's going to make such a difference where they were waiting for weeks just to see a doctor, and then have to come out for a second visit and would be four weeks later and horrible. so we took care of that. whether the citizen is a high school student or mid to late career worker, we want americans of all ages and backgrounds to be equipped with the skills they need to thrive, preparing american workers for american jobs. we've added 3.7 million jobs since, as you know, since the election. that was a great election. wasn't that great election? [applause] and i have to say because we have a lot of farmers in this place. we had this had made up.
the john deere colors, actually. make our farmers great again. isn't that good? [applause] and yesterday, we've been working on the trade deals which are the worst-ever made by any country in history. we don't have one trade deal that's good, between nafta which is a horrible deal and getting close on that but we're making it good. dealing with closed markets. the canadians you have a totally closed market. canada, they have a 375% tax on dairy products. other than that, it's wonderful to deal, and we have a very big deficit with canada, trade deficit. they don't like to say that, but on one of their pieces of paper they give out with the canadian flag, i love canada by the way, i love canada, they have the canadian flag, $97.8 billion deficit that the united states has or put it down as a surplus to canada, and i said, well, if we're doing so well
with canada, how come it's $98.7 billion, okay? that's a lot of money, so we're opening things up. but the biggest one of all happened yesterday, other than china. [applause] >> the eu. the europeans. a thing called europe. europe. and the relationship with jean claude, who's the head, actually a very, very strong guy, very tough guy, but a good man and done an incredible job, pulling all the countries together, but we just opened up europe for you farmers, you're not going to be too angry with trump, i can tell you because you were essentially, wouldn't you say, kim, they were restricted from dealing, you had barriers that made it impossible for farm products to go in, and i said to him, do me a favor, will you just because china is doing a little number, they want to attack the farm belt because they know the farmers love me, they voted for me, we won every
one of the states, you look outside of the country, a little blue on the outer edges of the country, we won everything so, they figured what we'll do is attack them, and i see that, and i said they're not going to win, just so you understand. we have all the cards, we're going to win. but it's not nice what they're doing, but i said to the europeans, i said do me a favor, would you go out to the farms in iowa and the different places in the midwest where you buy a lot of soybeans right now. the soybean thing is going to be opened up. no tariffs, no nothing, free trade. that's called free trade. when you have a country charging you 50% tariffs and we charge them nothing, and then i raise it to 50% and we have politicians in washington say, we are stopping free trade. no, no. they stopped it when they put on the 50%. we have countries that are charging us 200%.
250%. 100%. i don't want to mention them because i get along well with the head people, but they know who they are and changing their ways, but basically we opened up europe, and that's going to be a great thing for europe and really going to be a great thing for us and a really great thing for our farmers, because you have just gotten yourself one big market that really essentially, wouldn't you say, kim, never existed, you just had a problem. so we did that yesterday afternoon. we signed a letter of intent or agreed to a letter of intent and we're starting the documents, but the relationship is very, very good. so we're very happy, and then the employers are hiring and recruiting and they're raising wages in our country, and you know what's happened. we have so many jobs now coming in, but they're raising wages, the first time that's happened in 19 years, where wages are going up. a couple of people, the big farms you don't hear that, but you're doing okay.
but it's the first time that's happened in a long time, and we're just doing really, really well as a country, and there's no place doing better than iowa. i mean no place with better leadership. there's no place with more advanced thought. [applause] and i want to thank. i want to thank your governor, as i sort of alluded when i put terry as the ambassador, such an important position, and he really likes china. he really likes china. really interesting story. he said many years ago, like 38 years ago, he met a man named xi, and he came back because he was selling corn to china, and he came back and told his incredible wife who is incredible, with, by the way, a son who led my campaign, i don't know if he's here. where is he? is he here? i hope he's working in your campaign and your campaign, he
came back and told his wife, this is 38 years before, he said i just met the future head of china. and she said what do you mean? i just met a man who is so impressive, he will one day be the head of china. and that's president xi. he just got in fact, i guess he's president for life, based on everything i've heard. [laughter] can you imagine terry brennan telling me that story, great story. i want to ask kim to say a few words and travel around the table real fast, we'll all say something. great to be in iowa, we had a tremendous victory here, we won by a lot, and just very, very special people. very, very special, and we're taking care of your ethanol. okay? nobody else was going to, believe me, they were out. they were out. we're taking care of your ethanol. right? [applause] and before i have to thank senator grassley, has been an incredible friend of mine.
joni ernst has been, joni has been an incredible friend of mine, although i think she likes ivanka better than me. >> girl power. >> joni ernst is a tremendous talent. chuck grassley is -- he's chuck grassley, he's just incredible. he speaks and you listen, right? no games with chuck. but they've been pushing me very, very strong on the ethanol and we've been with them all the way. so i just want to thank them. they're in washington doing very important business right now. i want to thank them. kim, go ahead. >> mr. president, welcome back to iowa, a pleasure to have you back in our state. i want to welcome back ivanka and secretary acosta as well, we appreciate the time you've been in iowa seeing what we've been working on and it's a pleasure to be part of this roundtable to discuss the importance of workforce and i think we're the first state that you've stopped at to do the pledge since the executive order was signed. we're proud of our leadership
role on this front and the public-private partnerships continue to build the foundation, so many of the businesses i see in the audience today have been such a phenomenal partner with our schools and our communities and community colleges. to really help build those partnerships to help not only young people see that there are so many pathways to a great career but adults reskilling, retraining and having a great opportunity to have a great career and a great quality of life, and most importantly right here in the state of iowa. i love the relationships that are being built through initiatives like the ones that you're driving. we have an initiative called future ready iowa. the goal is to have 70% perfect iowans have education or training beyond high school by the year 2025. we're at about 58% right now. we're positioned very well to hit that goal. but just aligns so well with everything you're doing.
we're doing dollar scholars which is financing up to two year degrees, employer innovation fund that strengthens the regionals talent pipeline. different areas need different things, this helps the areas identify and work on where their need is at. we're expanding registered apprenticeship programs for smaller and midsized businesses. that's exciting too and doing a lot of work-based learning, the s.t.e.m. best initiative, business, engaging student and teachers, phenomenal again with bringing workforce and academia together in a partnership they were operating in silo. the other thing is a clearing house to provide work-based opportunities to rural communities that might not have the access to the great opportunities. we want to make sure no matter where you live in the state of
iowa, have you opportunities. i'll tell one quick story because we want to hear from the other people in the panel. it's about kids like charles vander velleden. he is from pella, and he is the first ever high school student to be a registered apprentice in welding with the mirror, a great company that happened to be hit with the tornado, and i tell you we're coming back bigger and stronger than ever. so again great community effort there. they unveiled a high school registered apprenticeship playbook that high schools all across the state can take it and use it for welding or computer science or i.t. or nursing, whatever that may be and made it very, very simple to really encourage our schools across the state to engage with our community colleges, our businesses and our students. i'm excited about. that thank you for being here. thanks for signing the executive order. we appreciate the partnership, and we're taking advantage of your tax reform too because we
were able to pass tax reform in the state of iowa as well as regulatory reform. we're partnering with you on a lot of great initiatives. thank you very much. >> thank you, kim. thank you very much. [applause] is that the home of pella windows? >> yes. >> i bought a lot of pella windows. [laughter] >> and i bought a lot of john deere equipment. millions and millions and millions of dollars worth of john deere equipment. one of their bigger customers, they tell me. so that's good. and pella makes a great window. i will say, that a great window. we'll go around. yes? >> mr. president, beth townsend, director of iowa workforce development. first and foremost i want to say as a veteran, thank you to your administration for everything you have done for veterans. you just don't know what that has meant to all of us. >> thank you. [applause] >> i also wanted to say i've heard you talk about the dignity of work which is something we in iowa believe
in, when you combine that with employers who believe in investing in their employees and you bring the collaboration and the great leadership that we've had from governor reynolds and governor bran sted and create future ready iowa. you look the us and we'll tell you how to do it. >> good, i know that. [applause] it's true. rod, would you like to say a few words please? >> on behalf of northeast iowa community college. welcome to everybody. not every day we have the president of the united states. mr. president, thank you for coming. >> thank you. >> i just want to say thank you for really looking at the perkins legislation. in fact, i just read it this morning under the leadership of representative virginia fox it says one of the priorities is to have more inclusive collaboration, but between educational institution, industry, employers and community partners.
mr. president, we're already doing it in iowa and the 15 community colleges backing by our governor, we're doing it. from the k-12 getting that into guided pathways so they understand that education has to be a focus. our focus is career readiness and college readiness. and when they come to us, we make sure that we get them through the skill. and partnering with businesses to make sure they apply 58% of our students live, work and play in northeast iowa. we cover 5,000 square miles. we're keeping iowans in iowa and keeping jobs here. last year alone, we worked with 470 businesses and train over 1,000 employees. in fact, last year we touch over 20,000 for upscaling. you find as a community college, we really are the college of the people, and we welcome you back again because today you only saw a sliver of what we have.
>> that's true. >> and our business partners are out here, without their support, without our k-12 support, without the city, city council and all the other government. northeast iowa community college would not be able to do what you have set up and that is putting americans to work. we're fully behind that and under the governor's leadership, we'll make sure that that happens. and that 70%, madam governor, we're going to exceed. >> that's right. >> thank you very much, appreciate it. thank you. i'd like to maybe have matt blum speak next because he's been so incredible in so many ways. he played so hards, he loves his state and the people. i guess he's got a race against somebody they call absent abby. she never showed up at the statehouse, who is absent abby. have you ever heard that term?
[laughter] >> but he came to me recently with -- that's a bad name to have if you're running for office. he came to me recently about a flood wall and that's a big deal, isn't it? >> big deal. >> how much money did you get? >> 117 million. >> $117 million. if somebody else would have come, they would have gotten $2. but he got $117 million, and it's going well, right? is it going well? >> absolutely. >> good. congratulations. >> thank you very much. good luck with everything, i appreciate everything. i appreciate your help. you've been fantastic. say a few words, please. >> mr. president, ivanka, labor secretary acosta and commerce secretary ross. welcome to the first district of iowa. and i don't mean to put the pressure, mr. president, on secretary ross, i know he's got a lot on his plate, but we made a bet on air force one, a steak dinner, correct, mr. secretary?
on getting a deal done with mexico in the next 90 days, correct? >> yes. >> and i fully plan on buying you a steak dinner. [applause] >> like to thank you, mr. president for your leadership on our economy. we are now growing at over twice the rate. twice the rate we were under former president obama and due in large part to your leadership. thank you very much for that, mr. president. [applause] and also thank you for having political courage to renegotiate these trade deals which quite frankly are not good to the united states, and you've taken some heat for it in the short term. long run, the farmers, manufacturers, employers are, all going to be better off. thank you for having political courage. >> that's right. thank you. [applause] thank you. >> lastly, thank you for your commitment to workers.
this great economy we have has created another problem in my district. people cannot find workers and that's a problem. we need welfare reform between 18 and 65 years old. mentally, physically able to work. no children in the house. you ought to be working. ought to be working. we need welfare reform. [applause] and we need immigration reform. we need more legal immigration reform. we need worker visas, temporary worker visas in the ag area, we need more workers here, and lastly we need workforce development. you know, mr. president, there exists a myth in this country that you cannot live the american dream unless you have a white dress shirt on and work in an office. and that, my friends, you would agree, i think you would agree, mr. president, is not true. so the first time, my friends, in our country's history, we have more job openings. more job openings than we have
workers to fill them. first time in our country's history. hats off to you, mr. president. [applause] so i'm confident that mr. president and his team and ivanka will solve our workforce problems and get more people so we can achieve what secretary mnuchin and i discussed over a year ago, that is 4% economic growth, but we need the workers and they need to be trained to do it. i think this quarter, mr. president, we're going to have a pretty good gdp reform. >> on friday, numbers come out. i don't know what they are but there are predictions from 3.8 to 5.3, and somebody would have said that when i was running, if i would have ever thought that, and, you know, i've been saying frankly i've been saying we're going to do awfully well, but nobody thought we were going to be this great. we've already hit 3.2%. when i took over, those numbers were bad and they were heading
in the wrong direction because of regulation, the taxes were too high. people are leaving the country, companies leaving the country, jobs were -- forget it. they were being abandoned. and other countries frankly were taking advantage of the united states. you know that, rod, so we stopped that. but please, go ahead. >> that's the big points i wanted to make and i want to say mr. president, my parents had 10th grade educations, i valued education, worked my butt off and became a self-made entrepreneur who lived the american dream. i think this is all about the american dream. >> and became one of the great congressmen, too. one of the most effective people in congress. [applause] thank you. please. >> thank you, sir. my name is joe o'dell, and i want to thank my beautiful wife for the support out there. i want to thank the share family for supporting me on my
journey. i was third generation logger. and in june of 2014 i was diagnosed with aml leukemia. at that time i was only given a few months through great medical miracles, i'm here today, and in that, i come back to school through incc and connected me with the right people to be successful. i went through the pathway program to start out. i went through the one-year program, and now i am into the apprenticeship program with a great company backing me, and i can tell you i am living a very good life from this schooling. [applause] >> this is a great program. what you guys are doing to give us the opportunities is remarkable, and it's not a traditional schooling, so it's open to a lot of people that ain't real school oriented, you know? and there's opportunity out there.
you just have to be, want to go get it with the drive, you know? and i think with employer support we got around our community, the community support, these people can put you in connection with the right people to make you very successful. >> thank you very much. >> thank you. georgia? >> thank you, mr. president. i'm georgia van gundy with business council and we represent 22 of the ceos from some of the largest employers of our state. we have operations in all 99 counties and beth and the governor talked about our future ready iowa initiative which is a statewide strategy, the first we've had to address our workforce needs, and as you mentioned, we have workforce needs this this state. it does take business coming to the table and leading and being collaborative and innovative. our employers oftentimes provide training promise but as employers we know we know we
have to come together be and innovative in our ways in order to attract our workforce. we pledge of our members 30,000 internships, externships and apprenticeships so we're reaching the students early to understand the types of jobs we have in the state of iowa and why you want to stay here and why necessarily a four-year degree isn't needed to have a great career. so educating them on that. we put together business education alliance putting together higher education, community colleges, k-12 and the business community to talk about innovative solutions to address our workforce. we're having collaborative industry partnerships, so bringing like industries together to say we all have the workforce needs, how can we look at apprenticeships, tools that are out there to address training and workforce so we have people here? we're having community conversations to going around the state of iowa where business is driving the conversations talk about what are our jobs and demand in the region? how do we start building the
career pathways? use the innovative funds to provide scholarships and break down the barriers for people to get to employment? and we're dedicated to work base learning. hearing over and over again if students have the opportunity to work with businesses to get the hands-on experience so they know gee, what does the algebra class get me at the end of the day, that our businesses are committed to support and a lot of businesses are. small, medium, large, that are participating in work based learning. so that's where i think the state of iowa and all employers are stepping up to engage with education so our population hasn't grown in quite some time in the state. it is important we retrain the people we have to fill the jobs that we have. >> thank you very much. >> thank you. [applause] >> thank you. mr. president, i want to thank you for the opportunity to be here, i'm the chairman and ceo
and president of hy-vee. [applause] we are an 86-year-old employee owned company. 248 food stores, 145 seed stores, 70 clinics and 258 pharmacies. that's who we are. i was asked to talk about some of the workforce development initiatives that we've taken. in 2017, we put $22 million up to fill up a training and education center in irwindale, iowa designed to enhance education of current employees, develop leadership skills. put 2500 of our 81,000 through that just to enhance leadership ability and enhance skills, and then also we developed in the same year, innovation and technology center that employs 400 individuals. 90,000-square-foot facility that is free-flowing, collaborative-type center.
we're using that to engage with colleges and universities from around the midwest. we have right now we have a wonderful internship program with drake university around business analytics, we're using that as a way to develop new talent and new ideas. another area we're proud of is hy-vee home front. we launched hy-vee home front as a way to support vets getting out of the service with needs and then quickly turned to the opportunity to recruit. recrowded 74 vets in the last six months to hy-vee. we offer $5,000 relocation bonus and career tracking for veterans if they get out of service. very important. [applause] another area we're exceptionally proud of is the numbers of opportunities we've been able to provide for individuals with disabilities. recognized many times for what we've done. we're working with the harkin
institute on the international disability employment summit. we're very active in employing folks with disabilities, a great part of our workforce. we have for the first time ever, this is a very nice, proud moment. we have the first hearing-impaired license pharmacist in the united states who's practicing in des moines right now. that's a nice thing. [applause] and then finally, the commitment. we've committed to over the next five years take 800 individuals through our hy-vee university program, which is a four-year advanced program to train workers and leaders in our company. 1,000 interns, 1,000 advanced skilled workers will be trained and then 12,500 on-the-job training and working with individuals to learn new skills to assimilate into our companies and others. so we've committed to 15,000 training opportunities over the next five years as a part of
your pledge today. so once again, thank you for having us here. >> thank you, randy. thank you very much. [applause] thank you very much. how about you. >> good afternoon, mr. president. my name is matt and i reside in the town of peosta. here with me today is my lovely wife monica. my two brothers and both my bosses. [laughter] i'm honored to talk briefly about the opportunity of employer service one has given me to participate in the apprenticeship program through the ceu authority. after high school i attended southwest tech for dairy herd management and then eventually nicc for hvac. i was offered a position at a company graduate wearing i was low man on the totem pole doing grunt work. i moved onto service one, they offered me the chance to grow through the apprenticeship program and because of the opportunity service one provided me, i am running
service calls on my own and now a third year apprentice and will be soon a licensed journeyman. this program has allowed me -- [applause] this program has allowed me to build on my skills and knowledge and the trade that seems to be declining in the workforce for skilled laborers. it has allowed me to better myself and become a greater asset to my employer and the industry. my brother who is here today has fallen into my footsteps and starting apprenticeship next year. mr. president, i want to thank you and congratulate you for the effort in helping the working class and believing in american workers with the workforce development. i believe this will give the opportunity or give the other options to kids like myself and my brother who may not fit the college mode. thank you, again for allowing me to share today. it's been an honor. >> thank you very much. beautiful job. beautiful. [applause]
beautiful. please. >> mr. president, thanks for being here and welcome. i'm project manager at geezy sheet metal. our family has three businesses here in town. been in business 95 years and family and owned operated since the star. not a lot of people do that, so we're proud of that, very much so, you know, great grandpa started in the alley selling furnaces and sheet metal. now we got three locations and 150 employees. each generation made it better and better, hopefully ours is good. >> no doubt, no doubt. >> and actually our vice president was at our giese manufacturing and the best rally of the entire summer. but kim and rod, we had a huge stainless steel metal sign trump, yeah, nice.
[laughter] they join us often. but i work on the construction side of things, i estimate and do commercial hvac and duct work and i can tell you the jobs are out there. you know, seeing great numbers and not just us, everybody is seeing. they're busier. don't know what to do. we are so busy we got guys on mandatory overtime. they're great guys i just want more of them. and it's not just us, it's all the trades that need more guys, you know? and i actually saw a guy waiting he had a sign that says always hiring. that's a good sign because you can always better yourself regardless, but and then i echo like rod and a few of the others said, for the longest time you heard the only way you're going to make money is go to college, go to college, and for so long the trades went by the wayside, and you realize
but a lot of folks don't realize how much good money it is. some of these are $60,000 a year plus jobs, and plus no college debt and i think that's something that gets lost as well. and nicc does a great job. we've got good guys out here with what the governor is doing, i think we're definitely in the right step. so i think we just keep going. i think bottom line is the work's there, we just need the bodies to do it. but thanks again for letting me be a part of this. >> thank you very much. great story. thank you. [applause] wendy? >> welcome mr. president and ivanka, i'm wendy knight, and it is my pleasure on behalf of all of our vice presidents, faculty and staff to welcome you to the greatest community college in the nation. [ laughter ] [ applause ]
and i hope this is acceptable with my secret service security friends but for those of you in the audience, if you partner with us, if you had a student who you have hired, if you have a friend, a relative, anyone you know that has been touched by nicc, please raise your hand. >> wow. [applause] it is because of you that we are the greatest community college. so thank you very much. i get to share with you hopes and dreams. you're going to hear some themes here with the stories we're going to share. students who attend our community college for in demand training receive a very high return on investment. ashley lost her customer service job. she was a single mom, she needed a career with a self-sustaining income to care
for her daughter. she enrolled here at northeast iowa community college, and our gas utility diploma program, and in only nine months' time and right before she was going to graduate, she was offered a job by one of our utility companies full-time and now making over $26 an hour. [applause] melissa oliveras, you met today, attended luther college on a music scholarship with a dream to play soccer. melissa sustained an injury that side lined that athletic career. she decided to return to dubuque. she was looking for a mix of creativity, problem solving and hands on work that would truly make a difference and impact the world she lives. she found at northeast iowa community college in our engineering technology program, she loved that the college
offered one on one instruction and everyone wanted her to be successful, and a shoutout to our john deere friends, i believe she's interviewing with you next week. [laughter] my last story, you also met today, nancy. after several part-time jobs with a temp agency, she returned to her home state of iowa. enrolled in engineering technology two-year program. nancy attributes her success to the amazing faculty and many resources at northeast iowa community college. nancy is a little bit of an overachiever, she has also a welding degree and worked as journeyman pipefitter for ten years. today she works at our great business in dubuque, iowa, ddi. thank you, president trump. >> beautiful. thank you. [applause]
our great secretary of commerce wilbur ross, who is a big, big success on wall street, i said you have to bring successful people in, especially for that job. we'll be doing great. go ahead, please. >> thank you, mr. president. i'd like to talk about the biggest unused resource we have in this country. we think about resources as farmland or nut or mineral land or oil and natural gas land. biggest unused resource are people who are side lined because they don't have the skills. labor force participation for the prime age workers, namely, those 25-54, is 82%. but even that is 2 points below the peak that was back in 1999. that's 2 1/2 million more americans who would be at work just to get back to the old
percentage. that would mean $125 billion more salary. it's a huge, huge increment. worse yet is the 16-24 age group. their participation rate is only 55.4%, down 14 percentage points from the peak in 1989. that means there are more than 5 million young americans who could be in the workforce but don't have the skills. but the jobs are there. that could be another 125 billion of salaries. so those two alone would be a quarter of a trillion dollars more pay for americans. think what that would mean for the economy. think what it would mean for the families. think what it would mean for everybody. that's what we're after with ivanka and president trump's program. >> that's right. thank you, wilbur.
that's great. thank you. [applause] thank you. i just want to call out a friend of mine in the audience, jeff kelfman. he led the republican party to a great victory in the state of iowa. we're doing well? thank you, you are fantastic. i look up and see jeff sitting there. he's totally political, so -- [laughter] >> great job you do. thank you very much. secretary acosta, so he has turned out to be one of our greats. i told you about health care, he came out of nowhere with this incredible plan and he's done a fantastic plan as the secretary of labor. please, alex? >> mr. president, thank you. [applause] . >> as i've been listening to the comments around the table, i'm struck by how many firsts
we have seen over the past several months. the tax cut that the president referenced is the biggest tax cut that we have seen in decades, make ever, and what does that mean? that means initially we saw 2 million and 3 million and last i saw 6 million americans had received a bonus or a salary increase or some other dividend directly because of the tax cuts. [applause] i was at a facility, a manufacturing facility last week signing one of the pledge american workers with the ceo of that facility, and after the tax cuts they put aside $100 million to help train and educate their workforce. think about that. and they said that was because of the tax cuts. a first.
deregulation. you've heard the president reference 22-1. when have we ever seen an administration that rolls back so many regulations so quickly? veterans administration. reform. what does this mean? if you look at our economy, it is strong. the unemployment rates are the lowest we've seen in my lifetime, quite literally. initial jobless claims that recently came out were the lowest since 1969. the unemployment rate in iowa is 2.7%. think about that. and gdp, when the president was running, they said 3% was impossible. but we've seen 3%, and then when he saw 3%, they said 4% is impossible. yet today we're talk about 4% gdp perhaps tomorrow. [applause]
and here's another first. you heard the numbers from your congressman. there are more job openings in the economy today than there are people looking for jobs. so the department of labor puts out these job numbers and since the bureau of labor statistics started keeping this data, we have never had an economy where we have more job openings than we have people looking for jobs. talk about a great first, our problem isn't where are the jobs? our problem is where are the skilled people to fill those jobs? that's a great problem to have. and that leads me to another first. perkins cte. you heard the president say that folk have been trying to do this since 2006. so ivanka trump got together with chairman alexander and with chairwoman fox in the house, and yesterday it was passed by voice vote.
imagine that. by voice vote. they just wanted to move it and get it done. and that's going to be transformative because what that means and you heard from your community college president, that means support for all the community colleges that are working to provide, and i loved your phrase wendy, in-demand skills. we call it demand-driven education. education where community colleges respond to what is being demanded by businesses. they teach not just any old skill but in-demand skills. and that's what this initiative, this pledge to american workers is about. so last night in the white house, we saw companies make commitments to provide educational opportunities and apprenticeships to almost four million american workers, and today i was handed this when i walked in. here in iowa, because of the
governor's work, businesses have come together, you heard from hy-vee and you heard from randy and others, businesses have come together, they've already pledged 50,000 training opportunities because of governor reynolds's work. to iowans, and that's transformative to each and every one of those jobs. >> and we're starting friday. >> so the point i want to make is a very simple one, whether it's through tax cuts, through deregulation, through job opportunities, for individuals that are looking to transition careers, through educational opportunities for community colleges, through the perkins cte, for veterans looking for quality health care, for association health plans, the rules we just proposed that are going to drop health care costs for associations around the nation and i know here iheard this morning, groups in iowa
are putting those association said together. >> yep. >> that is impacting lives. those aren't just theories. that is impacting american lives across this nation, and it's pretty incredible that that has happened in essence about a year and a half. i wanted to reflect on that. thank you. >> thank you, alex. very much. thank you. [applause] and just to go on a little bit from what alex said, we have to keep it going, and we can't have people ending the tax cuts and giving you massive tax increases which is what the democrats want to do. we can't have people with open borders where people flow into our country, many of these people are not people that we can have in our country. we can't get rid of i.c.e., the toughest, bravest people you will ever meet and they handled the situation. people that are so brave that,
you know, it's brilliant to see what they do, and yet, they're disrespected by large portions of the democrats. we can't lose i.c.e. that's our protection. they're fair but they're tough, and that's all that the other side really understands, especially when you are dealing with people like ms-13 gangs. these are the toughest people, but not as tough as what we have. not even close, and they understand and respect, that in their own way they respect it. we have to keep it going, we don't want to have our tax cuts and they're very, very substantial. we don't want to have that ended. we don't want to have tax increases that will kill the whole thing. we want to keep all of our programs goes. we don't want them ended. that's why i mentioned rod and kim and the people that have represented your state on our side of the ledger. the fact is they've done an incredible job and only going
to get better, if we keep this incredible phenomena going, it will only get better. our numbers are fantastic right now. you're going to see friday what happens with gdp, lot of predictions. lot of predictions. i told you before, some with a 5 in front of it. to mention that, you would have driven these people back there crazy, and it could be very close. [laughter] >> could happen. 5.3 somebody said yesterday. one of the geniuses on wall street, 5.3. okay, we'll take anything with a 4 in front. nice and slowly, right? but i just want to say it's important to keep it going. rod, i appreciate you being here and appreciate the job you've done. you really love these people. [applause] it is true. i said a flood wall? how much is a flood wall going to cost? 117 million. rod, what are you talking
about? 117 million? he got it. very few people would have gotten that. believe me. use it well. right? use it well. >> thank you. >> in iowa. and kim, maybe i'm going to let you finish off, but i really appreciate the job you're doing, i'm proud of you. in a sense i feel a little responsible because i took your other great governor and i sent him to china. >> yeah, yeah, we're all about holding people accountable and i can guarantee you that ambassador branstad is holding me accountable as well. he has a great legacy and i want to continue to build on that. i want to reiterate again how proud we are to have you in the state. thank you for what you're doing, i appreciate the partnership and especially the flexibility you are giving to the states to give us the opportunity to take these programs and take the resources to be held accountable for but to accent the great programs that we have going on. when i talk to businesses all across the state, i asked how business is going, and say it's never been better, they're projecting growth, significant
growth and so that's a resolve of the policies that you put in place and we're extremely appreciative of that and continue to build on that in the state of iowa. thank you for being here and being a part of this. >> thank you. [applause] >> thank you, all. neil: all right, you've been watching the president and his unusual service in iowa where he is talking about the fallout from some of the things he's been doing, taxes lower, regulations and the like. i like to juxtapose that against other venues. of course, we talk about some of the issues surrounding this presidency and approach to things and trade, what have you. but these meetings, one-on-one with average folks in this case, those who go community college and espouse the benefits of that, versus going to fancy colleges and something the president is convinced and people are convinced is going to be a winnable and popular approach for republicans in general to say nothing of this president that, that approach
is resonating with folks who spiro agnew used to call the silent majority. way too close to call on that. just a couple hours from now. the read on all this from lenore hawkins and jonas max ferris. what's interesting is the president did teasing on the second quarter gdp number coming out friday to say look, things are on fire. this is proof what's happening in your state. what's happening in the other states. what do you make of the approach he's taking? >> well, he's really, really good at getting people fired up, and i would love to see the second quarter be fantastic, but my job as a professional investor is to worry and look for all the pit falls and what we're looking at the second quarter kind of like if i go on a water and celery diet for a week, i'm going to make big weight loss gains, that's not exactly a sustainable trend.
in the second quarter we have a lot of celery, the tax cuts, not getting us a boost quarter after quarter, after a few they're baked in. a pull forward in demand on exports, countries like china bought a lot more soybeans than they would normally buy ahead of the tariffs going up. that means less in the latter part of the year because they bought more than they needed in the second quarter and similar thing with u.s. companies building up u.s. territories for the same reason, tariffs, raising prices, they bought more of the materials in the second quarter. neil: one-time event here, others have said, joan ashe said it eloquently, i like the celery approach, i would have use the napoleon as an approach. i have no doubt this would be a hard number to top. higher it is, the better the average.
play that out for me. >> it's a good time for it to be high, we're not going to see the sugar crash to use the same narrative when it stops. like home depot selling batteries and plywood before a hurricane, good for sales but less of the things before a hurricane. the potential trade people trying to lock in the deals, we don't know is that like a half a percent of gdp. if we get a 5% number which sounds outlandish, not adding 4%, the additional sales, so the question is how much of this will be the debate after the news comes out later this week was because of advanced purchasing head of a trade war of higher prices and client e-mail me buying this now from the manufacturers mixed up in china, a guy in the steel business, they had increased sales and distorted the market like panic buying before any kind of storm but don't know how much and the trade pictures improved with europe. so maybe that's an overplayed scenario. i would say some of the tax
cuts are long-term than that. trump has a plan for the sugar crash which is money to areas like iowa when ultimately have sales problems because of the trade wars. neil: lenore, interesting the markets, just like facebook, a interest rate story today like the fact things have. put we do know that it has been taken out of the intensive care area. so i'm wondering what the markets might be telling us and counting on? what do you think? >> i think it is definitely very good news to see that there is some progress there. i would also say that trump's clearly will be under a lot of pressure to get this stuff addressed before those midterm elections because china is in a very different spot, right? you have got the chinese leader, he is leader for life. he does not need to worry about elections. trump needs to worry about it, republicans need to worry about it, he needs to make progress next couple months.
we run the risk with the markets nervous. there could be positive risk to the upside hopefully we make progress with the european union. neil: it showed pragmatic side of the president, jonah. is that encouraging sense that maybe the markets like, that he is not as rigid? that his bark might be worse than his bite, what do you think? >> i think the, what happened with the european area seems like trump is not as crazy as some people fear in trade and keep escalating in a game of chicken with no end. i think also if he gets eu on our side gets us more strength with china. that is enough after fight to get in. you don't have a battle in every zone like hitler did. you will certainly lose at some point. you're the only country, even though we buy more stuff than anybody, it doesn't give us unlimited power. investors shrugged off the facebook decline is scary. losing more money than any stock
in history shutshould frighten others and tech stocks, that concerns me more than the future of soybeans sales. neil: we are down to levels we were a few months ago. i didn't mean to jump on you. i want to hand off to my good pal trish reagan. trish: thank you, neil. president trump wrapping up roundtable in iowa. he will go to granite city, illinois, with a roundtable with steelworkers. after a making a trade deal with european union. wait until you hear the details. i'm trish regan. welcome, everyone, to "the intelligence report. ♪ trish: let's take a quick look at the markets. we're trading up on the dow, up triple digits. as we look at s&p and nasdaq. wall street digesting some concerns about trade. i'll tell you, those concerns are starting to ease. it is all because of