Kerry suggests that syria could hand over its weapons of mass destruction to some kind of International Committee that would then destroy them. Does anybody really believe the syrians would do that in the russians are all over it. Puts them in the drivers seat again. Supposedly this will broker a deal. I dont believe a word of it. It is just a stalling tactic for everyone involved. And the white house is grasping at straws. And i presume todays 141 point stock market rally had something to do with moving away from war. But we will discuss that in a few moments. All these stories and more all coming up on the kudlow report begins right now. Im larry kudlow. First up, major developing news out of syria, moscow and washington this evening. Nbcs steve than did he happen s has all the details. I think youre right, this looks like a loser at this hour in the u. S. House of representatives. Theyre looking for a way to avoid a vote and along comes assads people and the russians to say you know what, we didnt have chemical weapons officially until today. But lets say we did have them, well get rid of them with the help of the russians. Lawmakers here on capitol hill are jumping to jump on that bandwagon and avoid an attack a vote. This is one where you have conservative republicans like Lindsey Graham of South Carolina and liberal democrats like house virginia democrat jim mora nflt talking along the same lines. Lets start with Lindsey Graham about the idea of the seariance getting rid of their chemical weapons. Russians told them to start with. If it is for real this is a good thing to get those weapons out of the hands ever assad or anyone else. If it really did happen, it will only be because the threat of a credible military strike against assad has forced his hand. But if it did happen, it would be a game changer in a positive way. President obama today enter veeing Network Anchors called it a possible positive development. He is still going to go on t. V. To try to sell this. With democrats like jim moran saying there is no way in can win in the house. He says lets give the russian employ a try. It is in putins interests, certainly in the u. S. Interests that chemical weapons not be used again. Its he cs conceivable we could Short Term Mission accomplished here if russia could help us where this. So far its only a rhetorical shift. But if he was to back it up by going to the u. N. Security council, i think this is a very positive development. We should seize upon it. Again, president obama himself said positive development. Down to the white house, though, no surprise. They said they will really look into this russian plan. But they say theyre very skeptical given the fact that until today, assads government in syria flatly denied having any chemical weapons. When he spoke to charlie rose, assad was still in denial. Here is some of that. Secretary kerry has presented what he says is conclusive evidence. He presented his convictions. Its not about confidence. Its about evidence. The russians have completely opposite evidence that the missiles were from area where the rebels controlled. That reminds me about what kerry said about the big lie that c l Collin Powell said in front of the world when he said this is our evidence. Actually he give false evidence. In this case, kerry did not even present any evidence. They didnt present anything. Not yet, nothing so far. Not single shred of evidence. So lets sum it up. There is assad flatly denying hes ever had chemical weapons, there is no proof he used them on august 21. And then today comes the word from the russians again who sold them much of their chemical weapons alledgedly that there could be a plan to dismantle the whole thing. Here on capitol hill, that put things on hold. Harry reid who was looking for a vote immediately after the speech tomorrow night, a senate vote wednesday, to get this thing going has said well put it off. First the report was thursday. And now we dont know when there will be a senate vote because a lot of people who back the president hope there will never have to be a senate vote because of these rapidly changing developments on syria. Back to you. Steve, first of all, thank you for that great report. And i just want to ask you you, isnt this really a stalling tactic where all the parties involve benefit . Runsbenefit, syrians benefit, president obama benefits from the stall. And the house and senate benefit from the stall. And this thing will be pushed out now day after day after day. Is that whats going to happen here . I dont know. You use the word stall and stall implies something negative. It means this is not true. That the russians will not do what they say, that the syrians are not willing to allow outsiders to come in and say, okay, there are the chemical weapons and well destroy them, that the president will allow this to go on because he knows hell lose in congress. But what if its for real . What if putin is looking around saying this whole argument with president obama didnt help me. What if i do something so dramatic that the world stops looking at the russians as the bad guys. What if assad says you know what, i could lose this civil war if i keep getting hammered by air strikes. I dont need the chemical weapons. If you believe the intel, remember the top echelon, definitely his brother and others, very senior were allegedly called when it was alert that had not a few dozen but more than 1,000 people were dying from this attack. What if theyre just looking around saying were not going to use these weapons anymore. Well keep control of the country by giving up the weapons. Im not saying thats what theyre doing, but if its true, its a win, whin, win, not a stall, stall, stall. Youll pardon my skepticism, but well pursue that with our guests. Many thanks. During todays interview, the syrian president also warned of retaliation for any potential u. S. Strike on syria. Take a listen. Will there be attacks against the american bases in the middle east if there is an air strike . You can expect every. Not necessarily through the government. Not only the go. S are not only the not the only player in this region. You have different party, different factions. Are not onl only player in this region. You have different party, different factions. Are not onlyy player in this region. You have different party, different factions. You have to expect that. Tell me what you mean by expect everything in that. Expect every action. Including Chemical Warfare . That depends. Lets get right to our distinguished guests. General wesley clark and ambassador nicholas burpns. General clark, do we really believe after all these years, father and son and hostility and iran and russia backing that assad is just going to willynilly turnover all his chemical weapons to some commit and ity and it will be destroyed . I believe that it could be worked if there is a good strong congressional resolution from both houses. Give him a time mission, put the people in there, clean him out. And then youve always got the hammer to bring down if he doesnt comply. Thats the perfect outcome and it does address the issue of the future use of chemical weapons. Thats what were looking for. Before i get to nick burns, let me follow up. They dont have a resolution that gives the president the hammer. I believe you call it a hammer that would strike down if it doesnt work in 30 days. He doesnt have that. There is a catch 22 here. They wont vote unit they think the vote will pass. Now Everyone Wants to wait to see if this i think crazy idea that assad will give up his chemical weapons with russia right in the middle of everything. I dont believe there is no hammer because nowhere along the line they have to have a vote at some point. That was the whole purpose of this exercise. The president has the authority to use force. It was better if Congress Gave him the resolutions. Th this should indicate to all the doubters that when the president takes leadership positions as hes doing in this and the United States leadership is on the line, people listen. Maybe some people in the United States congress dont get it, but the rest of the world gets it. The United States can make a difference in this. Should make a difference. Has the power to make the difference. And now you have putin and assad trying to get out from under the hammer coming down. So i think the congress ought to line up behind the president and lets do it right. Womell put. Nick burns, do you agree with general clark . I do. I think that wes is right that we have to combine the threat of force and did i proceed massey. If assad is going to give up his chemical weapons to a third party, hell benefit for one reason. He fears american air strikes. So president obama was right to threaten the air strikes, but now the devil will be in the detail. The president has no option but to look at this seriously once its been proposed by the russian federation. But who is going to present these weapons, will all be turned over. Will it satisfy us that everything in that country has been inspected. It will have to be a tight final frame. If the congress can now vote to give the President Authority to strike, should assad not fulfill his end of the bargain, that would put us in the strongest position because we had to keep the threat of force on the table to get him to complete this mission if he is serious about giving up all of his weapons. Nick burns, with all the greatest respect that i have through youfor you, the syrians wont especially let the ub i. N inspectors take a look at the carnage. Were supposed to believe assad might turnover chemical weapons and thats it . We dont have to trust or believe. The whole point of this is if hes serious, we test the proposition, hold his feet to the fire, ask a lot of tough questions. And in a tight time frame. So this is not just naively believing in a dictator who has lied to the whole world for decades, he and his father, about the chemical weapons, its about actually exposing them and making them deliver these weapons. And if they dont, i think the United States should use force against syria. Complete met taamorphosis. Assad said they would retaliate. From your experience, what does that mean and what will happen . Inflammatory rhetoric, but what else has he got. He doesnt dare attack israel. Hell get clobbered. If he does anything to the United States, hell get clobbered. Maybe there will be some effort at terrorism. Thats whats going on in the region all the time anyway. This is talk designed to intimidate a population who havent been following the issue. Of course hell say this. What else would he say . Im totally helpless, go ahead and hit me . No, he wont say that. So, yes, there is a certain amount of risk, but the risk is manageable, its small. The United States and our allies in the region can handle this. And this is a very important moment. Will is a World Structure that the United States has constructed. Treaties, the u. N. , all of this. And this man is violating it. The United States needs to at that time lead in enforcing the treaties that we created after world war ii. So this is a big moment for america. I dont know why, nick burn, but it is reminiscent of the jfk cuban missile crisis. You recall the cuban missile crisis, we were shown, we the American People, the united nations, were shown clearly pictures of russian missiles or russian setups or russian grounds in cuba. We knew that. One of the things the administration has not done, and i owe a shout out to christopher for noting this, we havent done that. The United States neither the administration or anybody else has shown the American People i dont understand a shadow of a doubt that these were chemical weapons and that they were only assads chemical weapons. Do we need a could you buban mi crisis moment to persuade people . The two are not comparable as you well know. Jfk i think made an extremely wise decision to pull back from confrontation with the soviet union and to resolve the question peacefully back in october 1962. This is different. Assad cannot threaten the United States. There is no strategic capacity that he has that can hurt us. But we have to make an example of him. But there were pictures. I only raise this because we saw the miss siile he silos in cuba. But theed a pla ed a plia ad done that. When . They have shown photographs of the 1429 victims. Secretary kerry a week ago friday made a strong case that syria was culpable. I dont think anyone seriously doubts that syria used chemical weapons. The only question is what do you do about it. And i agree with general clark are the United States is the leader, we have to show toughness here. But of itness can toughness can with wisdom. So if they will give them up the chemical weapons peacefully, that is a better solution. I thought john scar kerrys h was splendid and i happen to believe what he said. But you can talk to house members and senator, they havent even been shown the evidence. Because as i understand it, its not just a bunch of bodies lying on the ground. They actually have electronic intercepts and communication intercepts where we can plot this whole they think out. To me, if thats shared with the American Public, maybe thats what the president wants to do tuesday night. He has to let the American Public see this, so that we know that it is absolutely assad and not al qaeda or some jihadist group. Thats all im saying. It was similar in the sense that people could see those silo. General clark, ill give you the last word. What the hell will happen here in your opinion . I think that the president will give very strong evidence in his remarks tomorrow night. I think congress is going to have another day to look at this. I think Public Opinion will turn. And i think the United States congress will go the right tht thing and support the president in con of tone of the critical in dealing with the structure of international relations. Thanks to both of you. Both of you terrific. And i appreciate it. Now, well switch gears and i want to talk about the market because there is a reaction to all of this. Whatever happens in the world affects stocks. Stocks shot up today. Investors seem to be rooting for no attack on syria or some pull back. What else is moving the markets . Well ask that of our experts. And later, tomorrow is a big day for aem and apple and all tech ki consumers. Jon fortt will join us live. And free market capitalism is the best path to prosperity. Free trade is a good way to solve problems internationally. Maybe thats the best i can do. [ male announcer ] you know that family . The one whose eye for design is apparent in every detail . Whose refined taste is best characterized by the company they keep . Well. Say hello to the newest member of the family. The cadillac srx. Awarded best interior design of any luxury brand. [ woman ] if you have the audacity to believe your Financial Advisor should focus on your longterm goals, not their shortterm agenda. [ woman ] if you have the nerve to believe that cookie cutters should be for cookies, not your investment strategy. If you believe in the sheer brilliance of a simple explanation. [ male announcer ] join the nearly 7 million investors who think like you do face time and think time make a difference. Join us. [ male announcer ] at edward jones, its how we make sense of investing. Markets s is in rally mode day. The fed seems to be moving stocks. Forbes executive editor, don luskin. 141 points. Why did that happen today . Simple. Putin bailed obama out. Last thing baobama wants to do have his own party repudiate him. Moveon. Org is taking out tv commercials against barack obama. That is complete humiliation. Now he wont have to do that. I think heres why the market loves that so much. It if it failed in the congress, that would have weakened obama and empowered the Republican Party to go to war over the continuing resolution anded the debt ceiling would be light back into the august 2011 scenario where were looking at a treasury default. Ight back into the august 2011 scenario where were looking at a treasury default. Right back into the august 2011 scenario where were looking at a treasury default. Tea party wouldnt dare do it and republicans can run down the clock. I see where youre going. I appreciate it. They could have a progrowth agenda. They could have things like repatriation of corporate profits and delaying obamacare. Right after fried chicken. It could happen. True. Why do you think the market went up . I think the markets already discounted the war. Weve seen in recent wars where the market has gone up once the fighting took place. I think that would happen here, as well. I just think we have a wash in cash. People dont want to invest in bonds and we see a pick up in takeover activity. Think thats where well see a lot of action. Companies want for add scale but they dont want to hire people. The American Economy is still 2 if you ask me. Jobs numbers are not great numbers. But the World Economy somehow looks a little better. And i want to go there. I think that has Environmental Issues are involved in that as investors look around where to go. The economy doesnt look better in the sense growth isnt any faster. Just theres less risk. So that creates a platform where individuals and firms could for the first time in six years consider actually hiring somebody, making real capital investment, because the platform of the world has finally calmed down. So now from that if we start seeing some decent economic statistics, the first time in six years, we can actually believe them. Because now that the platform of the world has calmed down, the private sector can come back in, we can get a real business so youre go ahead. I think were seeing green shoots o s in germany. Stocks are 20 cheaper. I think the election in australia was big news. Progrowth agenda there is big and i really think thats your little mustard seed. And i want to add the chinese export numbers are rather good. Expectation was 5. I dont want to get too involved in that. But youre seeing this snippets out of europe and even out of emerging markets and now out of china and certainly out of japan. You see the little snippets and it says things are Getting Better, not worse. Is that basically the point youre trying to makes a i throw my pen on the table . Things have been Getting Better slowly for the last four years. Its just not enough. Bankruptcy in europe is now off the table, right . Thats my whole point. Now that that kind of thing is off the table, now we have a chance to have the Business Cycle recovery that weve never had. We have such a huge output gap, so many resources, human resources, physical resources, just there for the taking. As soon as anybody wants to kick start growth, make anything happen, there will be no delay in getting those resources. There is no capacity constraints. We could if this thing ignites, some quarter next year, you have a 10 annualized gdp quarter. Been waiting four years for that. Its possible. Now, folk, carl icahn made another phone call to cnbc today. Jackie deangeles has the highlights next up. [ shapiro ] at legalzoom, you can take care of virtually all your important legal matters in just minutes. Protect your family. And launch your dreams. At legalzoom. Com we put the law on your side. Carl icahn drops his bid to take control of dell. Just gives up. Jackie deangeles has that story and more. Thats exactly right, carl icahn saying hell stop fighting because he doesnt think that he can win. Michael dell of course offering shareholders a private deal for just under 25 billion. Its a deal which has the support of the companys board. But icahn maintains dells deal doesnt allow share loholders t reap the benefits. Wall street journal reports he stands to make a profit of about 70 million on his investment in dell. Mean titime molex shares shot u 31 on the news theyre being bought. They get about 14 of its revenue from apple. And fworngeorge zimmerman is fr on go. His wife claimed he was threatening her with the gun. The couple separated shortly after the verdict acquitting zimmerman of murdering trayvon martin. Shellie zimmerman filed for divorce last week. I just thought it was interesting. I dont want to mess away with zimmerman. But regarding Koch Industries which is one of the great oil, gas, chemical, fertilizer companies. Theyre going into high tech electronics. This is a first for Koch Industries. And theyre very political free market corporation. They usually take a lot of flack from the left. And a lot of the analysts say this is a diversification strategy. So probably a clever move. Anyway, thanks. Back to our top story. As matters stand now, both houses of congress would vote against hero if you had a chance to go anywhere in the world, but you had to leave right now, would you go . Man oh i cant go tonight woman i cant. hero thats what expedia asked me. Host book the flight but you have to go right now. Hero laughs and i just go . This is for real right . This is for real . I always said one day id go to china, just never thought itd be today. Anncr were giving away a trip every day. Download the expedia app and your next trip could be on us. Expedia, find yours. Blowing news tonight. Senator harry reid has canceled wednesday night vote on the syrian war resolution. I presume its because he didnt have the votes. And i dont think the votes were there in either house by the way. Lets get the latest from ace political reporter robert costa. Bob, why did harry reid cancel the vote . Harry reid has been trying to herd democratic hats for the past week and hes quite a bit of a problem doing so. He cant find a democratic vote. You look at a lot of mod r moderate democrats. Theyre abandoning the president. Im being told thatod moderae democrats. Theyre abandoning the president. Im being told thatd moderat democrats. Theyre abandoning the president. Im being told that moderate democrats. Theyre abandoning the president. Im being told thatmoderate democrats. Theyre abandoning the president. Im being told that the leadership both houses, neither will call a vote if they think the president will lose. They do not want to embarrass the president. Now, am i hearing that right . Are you hearing Something Like that, as well . Thats correct. First of all, from what i hear from my house sources, it will never come to a vote in the house unless it first passes the senate. And right now when you have harry reid delaying a test vote until wednesday, that means the president just cant get there. The president will come to capitol hill on tuesday not only to lunch with senate democrats, but hes actually going to attend the Republican Senate lunch. Looking for republican votes, as well. So we may not the see a vote for many, many, many days like it could be over a he can woorks two week. With the new russian business that came out of left field. Left field is right. Assad will give up chemical weapons with russians leading the charge. If the Obama Administration latches on to this and if others do, then we might not see a vote for months. Thats right. I just walked here from the senate, i spoke with a few senators this evening. Theyre really looking at this russia development. Russia wants syria to give up its chemical weapons. They think this could be be the plan b to be a diplomatic solution. If that becomes a real development, youll see a lot of senators on both sides of the aisle abandon a military strike. So youre saying to me that sensible, intelligent, well informed house and Senate Members actually believe that assad will give up all his chemical weapons, that somehow we can verify that and that the russians will be the ones maybe with us or not to destroy them . Informed smart intelligent people really believe in that possibility . I think both democrats and republicans are skeptical, but no one really seems to want to get behind the administration to do a limited military strike. Thats the reality on capitol hill. Thats what the president is dealing with. I will only harken back to ronald reagan. Trust but verify. A good one indeed. Robert costa, thank you. Remember president obamas comments about his credibility last week . Take a listen. My credibility is not on the line. The international communitys credibility is on the line. All right. Here is the reality. Obamas credibility and his entire domestic agenda may be on the line if Congress Votes no on syria. It could cripple everything from a budget deal to fed chairman, i dont know, obamacare to immigration reform. Has his failed Foreign Policy going to kill domestic policy, as well . Maybe not having the vote hurts him. Lets bring in Washington Post columnist matt miller and brg Group Chairman ed reuters. Ed, im going under the assumption because of the chunking business with the russian idea that assad will give over his chemical weapons and that were for the going to vote on the resolution, if that is the case, if there is no vote, what does that do to obamas political standing 1234. He doesnt have a positive agenda, it was all defense. So everything about this make it weaker. And now that putin had offered a head fake ala north korea or iran, come and lets talk and putin is perhaps suggesting that as sad otherwise will give up chemical cat weapon weapons thg says he doesnt have, has caused pause. A little tricky to give up something youve been saying for years you dont have. Matt millmiller, how do you see story right now . I didnt even include obamacare and delays and the continuing resolution and the debt ceiling. I think obama is on the verge of his entire second term being crippled. Even before the weirdness of today, the idea that he will end up in a situation where one way or another inhe wont he saend whipping a vote whenever that happens. And we go right into this debt ceiling show down cycle. I dont think the country, i dont think his partparty, i do think people are buying it. I think in hes apparel husband situation where the entire thing could end up feeling carteresque. Husband situation where the entire thing could end up feeling carteresque. Ill say i still think that hell win the vote in the senate certainly. I think there may be some theatrics on harry reids part the night before the big National Address and the joint session of congress and all the drama associated with that. Many there is some theatrics at work here. Because i think hes got the votes in the senate. Think of this, though. With this ill call it the putin initiative, that will prevent a vote. They wont vote because they dont want to vote. At the top of this show, i called it a stall. Everybody wants to stall this vote. Ill ask you. I think putin wants to stall the vote. I think assad wants to stall the vote. All different reasons. The president wants to stall the vote. Liberal democrats and conservative republicans want to stall the vote. This will never come to fruition. We could be having that conversation in january. But the problem is youve still got what does that mean today . Like the one bite rule where now well say you killed 1400 people with chemical weapon, put aside the 100,000 you killed in the last two years, but if you agree to give them up now, thats okay . Im someone who didnt want us to make a strike now. You but you can be against a strike and also against the weirdness of allowing one big bite on chemical weapons and then saying okay, we really didnt mean it. Are we all being manipulated by putin . Is he cohoreographing american politicses . He took a throwaway line from john kerry. I think it was a throwaway line. Not 100 sure of that. But i think he took a throwaway line and ran it up the flag pole and starts dialing up on his cell phone, assad, and gives assad his script and now here we are. I think thats what happened. The question ed rogers for you is what will republicans do particularly republicans in the house. There is nothing about what has happened so far that has made republicans bolder in the house. He only needs obama needs fewer than 20 votes. He needs 17 votes from republicans if he holds democrats. Hes got his 17 votes already. If they could get to a vote with democrats intact, he would win. But again this sort of putin head fake and the notion that certainly the democrats will now pause while we listen to the notion of assad giving up the weapons that he says he doesnt have, well, thats eroding everybodys support and everybodysenthusiasm. I dont think you can count on democrats in the house. The unintended consequences of us lobbing stuff in there, even wes clark who i admire, everyone is very overconfident about what the retaliation would be. I think youll see affiliated terrorist groups taking a couple of americans hostage, doing stuff on youtube that will be who are richihorrific horrific. Conservative republicans are saying the same thing. There are so many moving parts that could go wrong. They dont want to do it. Conservatives and liberals. Anyway, thank you, gentlemen. Wrong bombing at the wrong time. We appreciate it. You guys will probably be back on the same topic. We could do that once every week or once every fort night because it wont get finished. Its not just the carmakers reaping the rewards of the beg rebound in auto sales. Auto dealers are winning, too. Bob lutz will join us next up. [ tires screech ] [ male announcer ] 1. 21 gigawatts. Today, thats easy. Ge is revolutionizing power. Supercharging turbines with advanced hardware and innovative software. Using data predictively to help power entire cities. So the turbines of today. Will power us all. Into the future. Is that true . Says here that cheerios has whole grain oats that can help remove some cholesterol, and thats heart healthy. [ dad ] jan . Seasonal. Doesnt begin to describe it. Running a bike shop has its ups and downs. My cashflow can literally change with the weather. Anything that gives me some breathing room makes a big difference. The plum card from American Express gives your business flexibility. Get 1. 5 discount for paying early, or up to 60 days to pay without interest, or both each month. Im Nelson Gutierrez and im a member of the smarter money. This is what membership is. This is what membership does. If you want to find a segment of the economy thats really moving, look for further and the automatic though industry. New cars at their fastest pace in five years. Whats the trend mean for the economy . How long will it last . No one better to ask than bob lutz. Author of the book icons and idiots. Straight talk and leadership. Thank you for coming on. Can i ask you a question . You had given me a car lesson. It strikes me reading all that i read about this tremendous movement in car sales that for the first time in i dont know how many decades, the manufacturers are not jamming the inventories down the throats of the dealers. Actually the dealers want more inventories and prices are going up. A is that story true, b, when was the last time you saw that happen . Well, it certainly wasnt the style up to 07 where especially the domestics were just cramming the dealers full figuring if there was enough supply pressure, they would discounts to make the cars move. Of course discounting was bad for resale value which was one of the things people didnt like about american cars. And now the big three are being extremely careful to build to demand. In fact with this will i just talked to a dealer this afternoon, a guy who has six franchises in texas. And he says he has to pinch himself. Hes selling everything he can get. There is tremendous demand. Doesnt have enough inventory. Thats afternoon healthier way of running the businesses. Having production decrease at a time it by demand pull as opposed to supply push. There are shortages left and right now. And the incentives are actually coming down. Instead of going up, which is to kill profits. Sales incentives are coming down which is an incredible indicator. Yeah, and in terms of absolute size, 16. 1 we last saw that in 2007. But in 2007, that was an artificial number. It was driven by huge incentive, discounting, et cetera. And now its genuine nademand. So the 16. 1 is a lot more legitimate. And its only going to get better. Just thinking about this whole story, im no expert, youre the expert, just seems to me after all the car business has gone through, all the restructuring, all the brutal pain, it seem like now the industry is about the size it ought to be. Thats what im saying in terms of manufacturing capacity, in terms of the workforce, in terms of the various benefits and pensions. And also in terms of the dealers. Because a lot of people dont know how much pain ending the dealerships was. But its about where it ought to be, is that fair . Yeah, and that was you know, the chapter 11 of the two companies and ford sort of did the same things without going through chapter 11, but it had a cleansing effect. And it couldnt really actually be done short of chapter 11. But it enabled chrysler and gm and ford by proxy to get rid of unwanted plants, reduce personnel, and in the case of gm and chrysler, they wound up with wonderful balance sheets. Uaw also had to do give work give backs. Agree to a two tier wamg. So now for the first time in the last 50 year, the u. S. Auto industry is fully competitive with anybody else in the world. I hear you. Bob lutz, appreciate it as always. Its a major day for apple and cnbc as the network is set for big time coverage of apples big iphoe iphone event. Thats tomorrow. Jon fortt will join us live for a preview next up. You know throughout history, folks have suffered from frequent heartburn. But getting heartburn and then treating day after day is a thing of the past. Block the acid with prilosec otc, and dont get heartburn in the first place. [ male announcer ] one pill each morning. 24 hours. Zero heartburn. [ male announcer ] you know that family . The one whose eye for design is apparent in every detail . Whose refined taste is best characterized by the company they keep . Well. Say hello to the newest member of the family. The cadillac srx. Awarded best interior design of any luxury brand. Apple has a planned event tomorrow and it is a big one. For a preview, lets bring in Cnbc Jon Fortt who is live in Silicon Valley for us this evening. What you got . Well, the big question for this iphone launch is price. Can apple price the new iphone 5c high enough to carry decent margins but low enough to take share from android. There is a lot of talk about innovation, but lets get real. When it comes to smart phone oigs, bigger screen, better cameras are the only innovations out there. Chaptss are the 5c will replace the 5 or the 4s. Now, of course we also expect tos a high iphone, but here is the bottom line. Shiny objects are good, but the mobile game is now about services. For apple to keep thriving longer term, it needs to make its Services Like icloud and itunes match as popular as amazon prime and netflix. Let me ask you before we get deeper into that, is there anything else, any other announcements . Im reading the possibility of watches, possibility of televisions. And the possibility of iradios. That would be interesting product groups. Do you expect any of that . The iradio service with itunes and itunes match, we do expect that to match with ios 7. But in terms of the other thing, watch, tvs, apple likes to keep the spotlight on the product its trying to sell us right now. So i think they will call us back for another announcement if they want to show us those. Don luskin, you used to live out in Silicon Valley. For apple, is this whole business a game changer . No. Why not . Lets see. Steve jobs prevented computing twice. Reinvented the music industry. Reinvented movies. What are we going to do tomorrow . Were going to cut the price. Oh, my god. The innovation, i can barely stand it in the tease, you showed their new ceo striding up and down on the stage with his blue jeans trying to look like steve jobs. To quota familiar quote, i knew steve jobs and you, sir, are no steve jobs. There you have it. Jon fortt, i dont know whether you you agree or disagree. Might not be a game changer technologically, but in terms of the quarterly performance of the stock and the profits and revenues, some people have some huge sales numbers. Ive seen 13 million for the iphone itself. And 34 million possibly for sales of all phones. That might beat all the estimates. Its funny to heart criticisms of apple. They have done something amazing with the iphone. Completely xank changed commuting and mobile. But noncan do that every year or every two years. They have never been great at services. Will be as high profit, probably not, but i think thats where the game is headed. I think everyone has to adjust expectations for apple. Last word on the apple story. Im still using my iphone 4. I wont upgrade tomorrow. Buyer or sell sneer . Seller. Thanks very much. You can see jon all day tomorrow on cnbc covering this story. And at 2 00 p. M. Eastern, street signs and Brian Sullivan will be covering the event live. Thats it for tonights show. Im larry kudlow. I do like i the phones. Well s iphones. Well see about the story. Be back tomorrow night. Mom, dad told me that cheerios is good for your heart, is that true . Says here that cheerios has whole grain oats that can help remove some cholesterol, and thats heart healthy. [ dad ] jan . Peace of mind is important when so we provide it services you bucan rely on. With centurylink as your trusted it partner, youll experience reliable uptime for the network and services you depend on. Multilayered Security Solutions keep your information safe, and secure. And responsive dedicated support meets your needs, and eases your mind. Centurylink. Your link to whats next. [ sirens wailing ] a war is raging in mexicos border towns as rival drug cartels battle for control. In a scene of horror. The Mexican Government has declared its own war on the drug barons. It seems powerless to stem the tide of bloodshed. [ sirens wailing ] [ shouting in spanish ] the drug gangs here are as heavily armed as the security forces. Not in a million years would i expect to find Something Like this here in mexico. People come here on holiday. Thousands haveie