Governor phil bli auryant signe despite opposition. This comes on the heels of p paypal saying it will plan to bring jobs to North Carolina after lawmakers in that state passed a law in a restricts protections for lesbian, gay, by sexual and france gender people. In the North Carolina situation, a large number ofgender people. In the North Carolina situation, a large number of east called on petition calling on the governor to reject the particular law. The mississippi news comes just when the whole controversy started to heat up in the southern part of the united states. There are other bills that are pending in various states. Thish to that, nissan gave cnbc a statement previous to this law being signed that says nissan is committed to providing an inclusive Workplace Environment and we oppose any dlaw 45 allow discrimination. So it will be interesting to see what the corporate reaction is to mississippis governor signing this particular law just a few moments ago and also paypal canceling its move into North Carolina. Back to you. We are also following a developing story out of washington, d. C. The president make statements just moments ago on socalled tax inversions. Lets get to eamon javers in washington. Thats right, the president just a few moments ago had very tough words for companies that engage in the tax inversion process. Heres what he he had to say. Ive been pushing for years to eliminate some of the injustices in our tax system. So i am very pleased that the Treasury Department has taken new action to prevent more cooperati corporations from taking advantage of one of the most insidious tax loopholes out there and inflame the country just to get out of paying their taxes. The president linked this whole issue of tax inversions to the Panama Papers case which broke over the weekend in which leaked documents reveal that World Leaders around the world had accounts or had law firm in panama that was setting up structures where they could hide money around the world. So that is an interesting point from the president. Linking that case to what were seeing here with tax inversions in the united states. The president saying this is just an indication of a system globally in which people who are rich and powerful have lawyer and account tafrants and they d have to play by the same rules. So youre seeing it play out on the campaign trail and around the world and in washington, d. C. , as well. Treasury departments new tax inversion plan is throwing a bunch of proposed merger there is to question, most notably the pfizer deal to buy allergen. Allergans shares down about 16 on record volume. Meg tirrell has that leg of the story. We know pfizer has been trying to invert for a long time and initially tried to buy astrazeneca and now it found its way to allergan. It seems like they have found a way to do it even as treasury strengthened rules around inversion several times. This is the third set of rules and this may put a pin in this one. Folks are expecting the deal wont go through given the new rules. And people are saying these new rules specifically target this deal and thats because of the rule about the size of allergan essentially. Given the new treasury rules about inversions, the acquired company has to be at least 40 of the total company after the acquisition. If you look at allergans acquisitio acquisitions, this is what treasury is targeting. Theyre saying the last two acquisitions of forest labs and allergan wont be counted under what theyre calling the three year look back. Basically only deals that got done more than three years ago can be counted as allergan size. So under that rule, it would no longer hit that 40 provision and that is why people are saying this probably wont work anymore because it couldnt be structured as an inversion. So there are a lot of questions about what happens next. Does it actually fall apart, do they find a way to go forward, do they sue the government because a lot of people are saying this oversteps. What the companies are saying is that they wont speculate about the outcome just yet. Meg, stick around. Lets bring in former office depot ceo and cnbc contributoco. Steve, what sort of message does this send for treasury to be making i dont want to say make rules as you go along, but doing these rules to target inversion. This is the third attempt by the administration to pass regulations that deal with tease inversions and this one as meg said seems specifically targeted to the allergan pfizer deal. Certainly businesses are frustrated with the politicians here in washington targeting Business Leaders and calling them up pay tnpatriotic when th simply following the laws placed by the people in that building behind me there. So it seems to me that the way to get at this is to change the law. Business people, ceo, follow the laws. In fact, if they did anything different, they would be breaking the law. Now, they have a choice as to with whom they merge, but the issue here is that we have the highest statutory tax rates in the world. Ireland has about 12 ors 25 tax rate depending on which structure. The point is, its cheaper to do elsewhere. So the root of the problem is the Corporate Tax system. Eam eamon, there is a note on allergan and they make the point they use the term temporary regulations implying its unlikely for the rules to go through without congressional cod if i indication. What is your take on where the treasury stands and if its overstepped at this point . A couple thoughts. One is that in the Conference Call last night announcing these new regulatory changes, trerry officials were very he careful not to bite when reporters asked them whether this was targeted to one specific deal or not. They always say, no, no, this is a general thing, general policy. It affects deals in the pipeline right now. Im not sure if it matters to the companies whether or not they could over the long haul that they could have a lawsuit that could result in a favorable outcome. You might see a new Congress Next year, there will certainly be a new president. What they will do legislatively on this issue is anybodys guess right now given how this is all playing out on the campaign trail. Inversions are very, very unpopular among americans. Its not something people like to see. So all of that plays in to the calculus of the people trying to put these deals together. And meg, what is the path forward at this point . There are a lot of analysts who say that its trading as if the deal is basically dead at this point. We have to remember allergan sold a unit, so they will have about 41 billion in cash coming in which they could presumably use to continue to do deals. So youre seeing those coming out from analysts starting to value allergan and pfizer separately again. A lot of people are saying allergan is a good buy here, that it has a lot of good things ahead of it. As for pfizer, same thing, people are saying maybe this accelerates its ability to split itself up. So nobody seems to think this is really doomsday for either company, but maybe doomsday for the deal. There are some people making money off of allergans new drop. A lot of new names may suddenly be in play if the deal goes down the drain. Dom chu more with that. We talk about the idea that people like to buy low, sell high. Take a look at some of the traders and investors out there. With the big different allergan shares out there due to the proposed tax rules, one investor is stepping up to buy some of the beaten down share. Specifically martin sass. He currently holds allergan and is adding more to that position today on this particular dip. Sass says says were unduly pressured by Merger Arbitrage and Hedge Fund Sellers in what he characterizes as an overreaction to this built of news. He thinks allergans standalone value without a pfizer deal suggests what he thinks is a share bryce authority of 300 in the course of the next year. For you, his platinum portfolio is currently down around 6. 5 , so full transparency there. Sass just one of ten Portfolio Managers featured. For more insights, go to cnbc. Com pros. Sub prscribers can get the full story. And melissa talked about other players maybe there. Well, guess what, cowen and company out with a few names saying if the deal falls through, alleger began might go after bio again, alexion or some vertex phrma. Possible targets of allergan if this falls through. All big ones, as well. One states richest man is about to make a big move south. The tax people in his state are starting to scramble. What guy can single handedly screw up a states budget . This amazing story coming up. Jake reese, day to feel alive jake reese, day to feel alive welcome back. A bigger than expected trade deficit this morning prompting economists to reduce their forecasts for First Quarter tracking gdp again, down 0. 2 this time to just a half a point. This number was up above 2 when we started the quarter, but a series of disappointing data points have come in. You can see the range is quite shy. Not everybody agreed that this trade data was bad. And this compares to an actual reported q4 gdp. Moodys analytics leading the downgrade reducing their forecast to just 0. 2 . As we reported last week, variance could be plus or minus, so could be growing or contracting. Atlanta fed followed by a lot of folks down 0. 3. Morgan stanley at half a point. Had a conversation with chris rupky, he saw strength in the trade number. Same with gold than. And re got the stronger than expected ism services report. So not all hope lost, but right now gdp tracking just a half a point. Steve liesman, thank you very much. Robert frank is joining us now because there is a very new and very interesting story out of this state, new jersey. The richest man in new jersey is moving to florida and he pays so much in taxes, that its going to screw up possibly the entire state budget. Robert frank, a name known for our viewers. And that name is david tepper. He filed a declaration saying that he was officially a resident of the state of florida. Now, he also as of january first filed a declaration saying apapolooza management was now officially headquartered in florida. Florida of course has no income tax. This has a huge impact on the state of new jersey. Just take a look. New jersey income tax comprises about 40 of all revenues and top 1 pay with about a third of that income tax. Frank haines, finance office to the Senate Budget and Appropriations Committee of new jersey, he says, quote, we may be facing an unusual degree of income tax forecast risk if news reports are true that the wealthiest man in new jersey has shifted domicile to another state. So unusual degree of income tax forecast could change based on mr. Teppers move. New, im told he moved not tax reasons, but to be closer to his mom and sister who are in florida. Very veebconvenient that it s out that way. You have to think that other states will be starting to woo some of the mega billionaires to trade their book. Florida has had a very concerted and successful effort luring specifically hedge fund guys. A lot of the big guys moving. And i see them down there more and more. I think in the next year, well see some big names move down there. But you see this is a guy who earned 3. 5 billion in 2014. New jersey income tax rate is 8. 9 . So over 9 95 million that he contributed to the coffers in one year. So you see why this matters. So the residents of new jersey of which i am one, new jersey, new york, connecticut, massachusetts, to a point they will continue to have a net outflow of population thus increasing the financial burden on the people that remain. Until they learn. They have to learn. Money goes where its treated best. And right now its treated best in florida. Also 23 degrees in new jersey. That helps. Robert, thank you. At the iconic in seattle, the new big business summit, with mr. Wonderful. Ty. I am indeed. Thanks very much. This is year two of our iconic tour. Really a celebration of and practical advice for entrepreneurs and entrepreneurship in this country. And when we come back, ill be joined by a guy that Everybody Knows and some people even love. Kevin oleary, mr. Wonderful, we will talk about inversions, disney, about bond rates and much more. So why wait . Call now to request your free decision guide and find the aarp Medicare Supplement plan that works for you. Like all Medicare Supplement plans, youll be able to stay with the doctor or specialist you trust, or look for someone new as long as they accept medicare patients. But unlike other plans, these are the only ones of their kind endorsed by aarp. Rates are competitive. So call today. And learn more about choosing the doctors youd like to see. Go long. [so i use quickbooks and run mye entire business from the cloud. I keep an eye on sales and expenses from anywhere. Even down here in the dark i can still see were having a great month. And celebrate accordingly. I run on quickbooks. Thats how i own it. Welcome to seattle. A celebration of and practical advice for entrepreneurs and entrepreneurship. It is a Beautiful Day and probably the most naturally beautiful city in america, seattle. The break has just happened. Just our luck, so the crowds are out here. Its a little noisy. Kevin oleary is with me and lets talk about lots of stuff. Well be on stage a little later. But lets start with your concerns not just about tax inversion, but about what you see as the vital need for tax reform of the Corporate Tax code. You own phaser. Probably longer than any other stock in my portfolio. Its a very well managed company and now what has happened in the last 48 hours is a travesty to us as american taxpayers. And ill tell you why i say that. Instead of fixing the core problem which is an uncompetitive Corporate Tax rate, we are the most uncompetitive tax rate in the world today. And so our Great Companies like phaser, which have billions of dollars they want to bring back home to america cant do it. Thats problem number one. Thumb t number two, they dont have the same income statement that all their competitives have, so were at a disadvantage. We cant spend as much on r d. The last administration was focused on the distribution of wealth and health care. That mandate is over. The next man or woman running america must fix our Corporate Tax rate or we will fall to the wayside of competitorslobally and pfizer is a case study. When i teach again, i will use that case study say sthg how crewed up we are in america. P this is how broken we are. Every u. S. Taxpayer and citizen and user of pfizers products should be outraged that the treasury is attacking one of our companies this way. Its so unfair. So broken. Its time to use this test case and focus the light of transparency on it. It is time i think for congress to get going on this. I mean thats where it has to take place. A president can have the bully pulpit, whoever that next president may be. I absolutely agree with you on that. But congress has to get edge gauged on this and they have to figure it out. Because we are hobbling ourselves competitively as you point out, billions of dollars sitting over a trillion dollars sitting overseas unable to be brought back. Its not right. Its not smart. I think you brought up a great point and i think there is a reason that the american and our voting constituents are so frustrated in washington, d. C. , get off your asses and do something. They dont do anything. This is a huge problem. They havent done anything for years. And now we can measure the cost to us as a society. We are becoming less competitive. I would love to see why there is a Bernie Sanders, why there is a donald trump, how frustrated we are as voters and how the lack of any kind of focus to get things done. Get this done. Go fix this. Lets pivot a little bit to another passion of yours and that i know is bonds. You have a lot of bonds. Today Interest Rates on the ten year down about 1. 71, 1. 72. What do you see happening to Interest Rates and people like you own a lot of bonds . I always look at the bonds it tell me what the future looks like because the smartest money in the room is always on the fixed income side. Particularly this morning, does this signal a further slowdown in the gdp of our country. Thats really the issue going on. Did yo you see that . Well, no. Ive never seen so many negative Interest Rate environments in other consistencies that are forcing capital home. Take the swiss franc, they go difference Interest Rates in europe. My dad lives in switzerland and hes moving it two places. He wants a fixed income mandate, america is where you come because at least youre making 1. 7 on the ten year. Youre not negative yet. If we were to go to negative Interest Rates, that would be really bad and i hope we dont. I have one minute left. I want to bring in former ceo of office depot and get both of your thoughts on this succession matter at disney. Youre familiar with the company. I worked to them. What is going on . So when this happens to a coo which is the heir apparent, it could be for two reasons. Its not necessarily a signal from the existing coo. I think the board is saying you where n are not the success or or there is a large shareholder who does that like this individual. And steve, let me turn the question to you. Quick answer on what you see for disney going toward. The best succession is always there within. They named tom staggs last year to be that successor and now a year later they have changed their mind for whatever reason. But this is a bad governance move. It leaves disney without a successor which means they either have to go deeper in their bench or they have to go outside. Either of which will be very disruptive to disney. Its a bad move, its disappointing that it had to happen. Thank you very much. I think youre right about the hear of somebody some shareholder doesnt like him. You see iger maybe staying . I think he should stay. My goodness, hes been the best deal for the company in decades. Plus hes young enough