And later, exclusive access inside the 50 million mansion that tequila built. Break out your saltshakers and your lime wedges because power lunch starts right now. And welcome to power lunch. Im melissa lee. The record rally rolling on. The dow, s p and nasdaq, transports all hitting record highs in todays session although were take a bit of a pause right now. Sps and nasdaq just off the highs. If the dow holds at this level it would be posting its first threeday winning streak of the year. Im Brian Sullivan along with michelle carusocabrera. Know whats not hitting records . The mexico etf. The eww. That is falling hard on the news out in the past hour or so the mexican president will cancel his planned working Group Meeting with President Trump that eww down 2. 3 . That meeting was supposed to happen on tuesday. We are also awaiting President Trump. Hes about to speak in philadelphia. The big republican retreat. We will bring it to you when he begins. Its going to be the first we hear from him after the news that the president of mexico is not coming. In the meantime lets get to cnbcs eamon javers whos at the white house. Hi, michelle. President trum as you guys have been saying did leave the white house late this morning. It was his first opportunity to take a ride in marine one and also air force one for the quick flight up to philadelphia. But weve been watching this twitter diplomatic standoff playing out very much in public and online today. Heres how it all went down, starting with the president s tweets. From earlier today the president tweeted the u. S. Has a 60 billion trade deficit with mexico. It has been a onesided deal from the beginning of nafta with massive numbers of jobs and companies lost. If mexico is unwilling to pay for the badly needed wall, then it would be better to cancel the upcoming meeting. And then shortly after that we saw a tweet from the president of mexico in spanish. In english it says, this morning we informed the white house theyll not attend next tuesdays scheduled meeting with the president of the United States. So where does that leave us . Well, in philadelphia after air force one landed sean spicer the White House Press spokesman told reporters they do hope to reschedule something with the mexican president at some point in the future but left it fairly openended. And michelle, as you know, mexican officials have been here at the white house meeting with trump aides today and yesterday hoerngs to pull something together but it looks like those efforts were for naught. Looks like this meeting next week is simply not going to happen now, guys. Ive heard from people familiar with the situation that they were actually very surprised. This meeting had been scheduled over these two days and then suddenly the executive orders happened yesterday, took them by surprise. They were not happy about that. They thought it was going to be a much friendlier discussion than the one it turned out to be, eamon. Thanks so much. So much of washington is about giving the diplomatic headsup to people who are affected by what you do before you do it, both on capitol hill and diplomatically around the world. The trump team may be learning that some of what they do in public needs to be telegraphed privately first. Thats one of the fine arts of operating the machinery of the white house. Mmhmm. Certainly. Thank you, amy okay. Joining us now on the phone, former new mexico governor bill richardson. Sir, good to have you here. Not only are you former governor of a state that bordered on mexico, youre also a former ambassador, negotiator on behalf of the United States during some tense situations. Your assessment of the situation right now between mexico and the United States. Well, this is the worst state of the relationship in many years. And it basically is showing that the president s negotiating style of tweets, of provocation is backfiring. Mexico is one of our closest allies. Trade, immigration, a lot of issues, border issues. And now i think he has insulted the mexicans by publicly talking about the wall, mexicos going to pay for the wall, mexico said they wont. Theyre going to renegotiate the north america treaty, the nafta treaty without any kind of advance warning to mexico. You just cant conduct diplomacy publicly by tweet, by beating up other countries like mexico, like canada, now mexico, china. You know, this is a serious setback. And it shows the importance of having the professionals at the state department and the trade office prepare the president for these kind of negotiations. Thats the problem. You know, governor, i think we sometimes overstate the economic importance of china. Our exports to china about 160 billion a year. It sounds like a lot. Its not. Do we understate the economic importance of mexico . Our exports to mexico are about 50 more than they are to china, a country whose economy is ten times bigger. Thats right. I mean, canada and mexico are our main trading partners. And you look at the border. I was a border governor. Because of nafta there are a lot of u. S. Companies on the border, new mexico companies. If you renegotiate nafta, which politically the president said he would do, its going to affect a very important trading relationship. Now, whats going to happen with canada . Are they not going to show up . I mean, the problem here is you cannot negotiate publicly. President pena nieto of mexico, hes got domestic problems. Hes not very popular. Hes got long gasoline lines. Hes got an opposition saying hes been too soft on trump. He invited trump during the president ial election. And now hes upset. Hes mad. Mexicos a very nationalistic country, and it just shows this is not how you negotiate with countries. This is backfire number one, and its going to continue with other countries. Which of the issues on the table, governor, between the u. S. And mexico, nafta or the wall, is the more inflammatory one in mexico . The more inflammatory one is the wall. I mean, its basically saying were going to shut down the flow of mexicans coming into the United States for economic reasons. The main problem with the wall, the immigration problem that we have is refugees, political refugees from guatemala, central america, not necessarily from mexico, that flow has reduced. Yes, we do need border security. Yes, we need a comprehensive immigration bill. But you do this negotiating with mexico. And were going to need mexico on fighting the cartels, on migration issues, on trade issues, on Public Safety issues. And now weve ticked them off over this wall. And what if mexico says okay, fine, u. S. , were not going to cooperate with you on the drug war on drugs . Theyve really got their back up. And the president of mexico right now is under enormous domestic pressure to respond the way he did, and hes done it. Will the wall work . Would it do what the president hopes it would do . No. In my view it wont work. Its 13 billion, first of all. We should be building bridges. And its not going to work because there will be ways that desperate people will come either over the wall or under the wall with tunnels. Its a terrible symbol. And you can ask any official at the border that opinion. The problem is we need comprehensive immigration reform. Yes, we need border security, more agents. I think that was part of the president s announcement i can support. But to say that were going to build a wall and mexicos going to pay for it, i mean, that is cutting deep into their nationalism and governor, we just want to let everybody know were showing a live picture where we expect donald trump, President Trump to speak at the gop retreat. Okay. But dont move. Were still deep in this conversation, governor, a good one in fact. You sound pretty sure that the relationship is shot at this point. Mexico needs the United States just as much as we need them, maybe more so. I mean, you can make some chase for that. So what is the next step in terms of retaliation you can see that would make this situation even worse . Well, i think President Trump needs to extend an olive branch and basically say, look, weve got to discuss these issues. You cannot predetermine negotiations in the press. You cannot insult the mexicans. You cannot insult any country. Thats bad Foreign Policy. Hopefully the new secretary of state, whos involved in sensitive negotiations, can help. But when the president s alone tweeting, watching television, reacting to Foreign Policy that way without his team in place, without advice from his sound policy team, this is whats going to happen. Lets say President Trump wants to just dig in his heels and stand where he stands. What do you think the mexican president will do next . Well, for one, he might say were not going to renegotiate nafta, in fact well get out of nafta. That is going to hurt the u. S. He might also say, well, all right, President Trump, were going to stop cooperating on drug smuggling at the border. Okay, President Trump, were going to stop the migration issue, ways that we can detain people at the border so they dont come into the u. S. We can stop fighting the cartels together the way we have with a number of joint military operations. I mean, theyve got leverage over us governor . Yeah. Were showing people the mexican peso. Its gotten hammered for months now, ever since donald trump started to rise in the polls before the election. Weve seen the central bank have to step in and spend billions to try to defend it. Not working. Theyve raised interest rates, which then slows down their economy. In some ways it seems and by the way, theyve already lost jobs, right . And american ceos are thinking twice about doing anything down in mexico. Doesnt it seem like mexico is already paying . Yes, theyre already paying. And theyve got, as i said, a very deep nationalistic streak. I mean, theres that saying that, you know, mexicos biggest problem is a giant across the border, but its also very involved in mexicos future and its economy. I mean, were bound together very closely. And for years republican and democratic president s have considered the u. S. Mexico relationship one of the most important. But now, you know, its in tatters. I think it can recover. But i think President Trump needs to make the first move, and he also needs to stop conducting Foreign Policy and trade policy by twitter and by executive order i dont think thats going to happen. Is there a chance, and maybe this is a little bit of the Glass Half Full view, governor, is there a chance that i think the kids would call this back in the 80s, fronting, that trump has said they have private conversations, trump says listen, mr. President , im going to say this and then the president says im going to say, this well act angry but were working behind the scenes. Any chance that thats going on . Because neither wants to look bad in front of their base. Well, right now thats not going on because you had the spectacle of the Mexican Foreign secretary and trade secretary coming to washington not knowing that an announcement was going to be made by executive order on the wall and being embarrassed. So maybe they will recover and these negotiations can start again. Look, the relationship is so important. It will start again, but there will still be tension because both sides, both bases, political bases of the president s and president pena nieto are in a real combat situation right now. Especially the president of mexico with gasoline prices, renegotiate nafta, you know, the 70 billion trade deficit. Theyre under a lot of pressure. Governor, thank you so much for joining us. We really appreciate your expertise on this day with this breaking news. Good to have you here. Governor bill richardson, formerly governor of new mexico. House Speaker Paul Ryan is being introduced here at the retreat going on down in philadelphia, the gop retreat. Were going to take a quick break and bring you all the headlines when we come right back after this break. So what else is new . Hows your mother . Umm. Shes doing good. She needs more care though. She wants to stay in her house. I dont know even where to start with that. First, lets take a look at your Financial Plan and see what we can do. Ok, so weve got. Well listen. Well talk. Well plan. Baird. May not always be clear. But at t. Rowe price, we can help guide your retirement savings. So wherever your Retirement Journey takes you, we can help you reach your goals. Call us or your advisor t. Rowe price. Invest with confidence. Philadelphia, the gop retreat, and President Trump. And i want to thank everybody in the room. So many friends. Thank you very much. Sit down, everybody. Lets enjoy ourselves. Its great to be in philadelphia. I went to school in philadelphia. This is a very special place in our nations history. Its the place where we launched our american independence. The state of pennsylvanias very special to me for lots of reasons. Especially from a couple of months ago. Remember . Pennsylvania cannot be won. Remember . Pennsylvania cannot be won. Right, congressman . There is no path to victory for trump. In pennsylvania. Except we won. Now, it has been a long time since you guys did this. But it was just a great victory. It was a great evening. It was a great evening. But it started in pennsylvania. They all said that pennsylvania was the bride that got away, that it was the state that everybody from the Republican Party that ran in pennsylvania for 38 years thought they won. Except they never won. And i thought i won too. But i was afraid to say it, mitch, because it just seemed that it wasnt working out. So i said you know what . I think we did great but lets see what happens. So we love this state, and we will see it many times again. Now is the dawn of a new era of american independence, a rededication to the idea that the people are in charge of their own destiny. I want to thank majority leader mcconnell. Great guy. And Speaker Paul Ryan. Very, very special. And he is writing his heart out. Right . And were actually going to sign this stuff that youre writing. Youre not wasting your time. [ applause ] he would write and hed send it up and nothing would happen. But now its going to happen. For their leadership and for inviting me here today, thank you very much. And thank you, leader mccarthy, senator cornyn, congressman scalise, congresswoman Cathy Mcmorris rogers, and congressman messer for your leadership as well. Its been terrific. This congress is going to be the busiest congress weve had in decades, maybe ever. Think about that. And think of everything we can achieve. And remember who we must achieve it for. Were here now because tens of millions of americans have placed their hopes in us to transfer power from washington, d. C. And give it back to the people. [ applause ] so important. Now we have to deliver. Enough all talk no action. We have to deliver. This is our chance to achieve great and lasting change for our beloved nation. Since taking office, i have taken major contractual steps to restore the rule of law and to return power to everyday americans. [ applause ] and even though its only a few days, weve done it in record numbers. Weve issued executive orders to build the keystone and dakota pipelines. [ applause ] and issued a new requirement for american pipelines to be made with American Steel and fabricated in the United States. [ applause ] and i was sitting at my desk and im getting ready to sign keystone and dakota. I say wheres the pipe coming from . And i wont tell you where but you wouldnt be happy. I said why is it we build pipelines and were not using pipe thats made in our country . And i say lets put that little clause in like its a onesentence clause. But that clause is going to attract a lot of people. And were going to make that pipe right here in america. Okay . [ applause ] if people want to build pipelines on our land, we want the pipe to be manufactured and not only that. Manufactured here, but you will see a level of quality youre not going to see when they bring pipe from far distances, have to bring it in small chunks and then fabricate it on the land. Give me a break. We can do much better than that, and were going to do it much better, and its going to end up costing less money. Believe me. Weve reinstated the mexico city policy, a longstanding policy. [ applause ] isnt that nice. And by the way, on friday a lot of people are going to be showing up to washington. Right, mike . A lot of people. You know, the press never gives them the credit that they deserve. Theyll have 300, 400, 500, 600 thousand people. You wont even read about it. When other people show up you read bigtime about it. Right . So its not fair. But nothing fair about the media. Nothing. A longstanding policy toward your taxpayer dollars do not Fund Abortion services overseas. Weve issued executive orders to remove wasteful regulations that slow down commerce and delay infrastructure which we desperately need. The very beginning of a massive effort to reduce the crushing regulations on our economy. And we are going to reduce regulations bigtime. [ applause ] weve also withdrawn from the transpacific partnership, paving the way for new oneonone trade deals that protect and defend the American Worker. And believe me, wering go to have a lot of trade deals. Mitch, dont worry about it. Just give me a little time. But they will be one on one. They wont be a whole big mash pot. Theyll be oneonone deals. And if that particular country doesnt treat us fairly, we send them a 30day termination, notice of termination. And then theyll come and say please dont do that, and well negotiate a better deal during that 30day period. The other way you cant get out of it. Its like quicksand. Plus were going to have very, very strong controls over monetary manipulation and devaluation, which they didnt have in tpp. So this is going to be so much better. And were already on it. I would like to have my commerce secretary, wilbur, approved because i hear he did