Between President Donald Trump and the president of mexico. We are waiting to hear how that conversation went. Amazingly despite questions about what will happen with the trade agreements and whether or not there will be a border tax the markets are pretty quiet digesting the news and staying close to record highs. We are noticing mexican stocks. Actually doing fairly well. Would you say that it is a positive sign that at least the two sides are speaking behind the scenes . I think that absolutely is a good sign. We are going to have peter navaro. He said the vix isnt looking like anybody is worried. The markets are signaling that perhaps they are less worried about the talk. As you pointed out before and we certainly thought about often over the past year the lesson has been when things happen our Immediate Reaction is bad things are going to happen or whatever. It turns out that the market sometimes has gone against what the, quote, smart money would say and here may be yet another example. Aidest the turmoil the markets seem to be stepping around it with reasonableness. Lets bring in peter. Good to have you here. Let me quote the Great Quarterback aaron rodgers. Relax. Everything is going fine. We are getting off to a great start here in the first week of the administration. Every little bit of ink that comes out of the pen of President Trump creates thousands more jobs and markets are reacting strongly to this. The vix is relaxed. Lets make the economy grow. If you watch all the cable pundentry talking about whether there is a trade war coming with mexico. The president spoke for an hour with president of mexico this morning. Can you give us any sense of how that phone call went . I can give you the sense that the strategic and economic relationship with mexico and canada in this hemisphere is important. Its a critical one. We believe that that relationship on both sides of our border can go forward in a very constructive way. The problem, though, and this is a problem we have a with a lot of countries is that we are running chronic and large trade defici deficits. One of the reasons is because of unequal treatment of income tax by wto. That is why a border adjustable tax is right front and center on the hill for sdrugz. Somehow that has to be dealt with. The second problem is cheating by countries like china of steel and alum income into our markets, putting people out of work in ohio and pennsylvania, west virginia. That has to be dealt with. And then more broadly what we need to focus on is rebuilding and reenergizing not just our Manufacturing Assembly plants here with logos like ford and gm but the supply chain to provide components so that we are not just assembling things with foreign components. You brought up the border adjustment tax at the cornerstone of house gop plan for Corporate Tax reform. You dont have to explain it to us because we have been talking about it for weeks on cnbc. What hasnt been clear to us is whether people in this building including the president himself support the border adjustment provision in the house gop plan. It sounds like you do. There is no question that we need a border adjustable tax of some kind, one that has to be flexible. For example, germany, one of the worst actors in the International Environment when it comes to the vat because what they have done is strategically raised that to 20 whereas japans is much lower. They are sticking it to us. When they send bmw or porsche into our markets they basically reback to those manufacturers. It is like a subsidy. If we try to sell them to ford or chevy they slap on the vat. That is not going to happen under a trump administration. We will deal with that in some fashion. A lot of discussion about how to do it. Is the president on board . The president is on board with the idea that wto and that problem was a huge problem. We campaigned on that for months that you can look at speech after speech. Two weeks ago he said it was too complicated. This problem needs to be dealt with and we are having a lot of discussions about the best way to go forward with it. Orion and kevin brady have a bill that we might very well be able to work with well. There is a lot of discussion. Its early form. The principle to take away here is that we as an economy cannot succeed putting our people back to work in ohio and pennsylvania, michigan and indiana if those countries keep treating us unfairly with respect to that tax system. The only way to do that is by coming up with some system of border adjustable which is flexible. In other words, you cant treat germany the same as you do japan with respect to that specific issue. What about wilber ross, do they all like border adjustability . Come here and explain to them. Let them speak in their own words. They should speak in their own words. You cant give me an answer. I would never presume to speak for them, for anybody. I am here sharing my view about what the problems we face are. If you look at the trade issues you have cheating. You have tax problems. You have diversionary dumping coming in with steel and aluminum. I will tell you what, we are going to get it done. We are going to create jobs for the American Worker and keep our domestic manufacturing strong. My colleagues in the studio want to ask you questions. It is brian sullivan. Is there a point at which you or the president or somebody will step in front of a microphone and look at the American People and say we are going to bring back jobs, we are going to bring back manufacturing but we we are going to bring back jobs and manufacturing. You are going to have to play more, pay more for everything you buy. Wages may go up which is a good thing but you will be paying more. You have answered your own question. Would you rather have cheap subsidized goods dumped into the walmart and not have a job, not have your wages go up in 15 years or would you like to pay a little bit more, not much, a little bit more, have a job and have your wages going up . I think the American People are going to make that choice. I agree. We you got to stop using this inflation fear as a way to hold the people down on trade. Nobody is trying to hold anybody down on trade. I talked about it a lot. Brian agrees with you. No country that makes low cost goods and pays high wages. When does that gap close . If wages go up and prices go up you exist in the same sphere. Is there a point at which there will have to be a moment of pain for wages to catch up in. No. We dont think the price effects are that substantial, to be honest. We think that if we can get the economy growing its not just about getting individual wages up. Its about getting all of people back to work. There are probably over 10 Million People under employed or unemployed in this obama old economy that if we get them back to work, if we get growth there is just going to be a lot of ability to produce goods at lower prices, do them on home soil, create jobs and well be in this new world where we are prosperous again. We have been 15 years where the economy has been growing at two percent. We were at 3 pfl percent. China joined wto and got into the globalization world. We have sweat shops, pollution havens. This is what we are going to change here because President Trump understands unless we deal with trade issue we dont deal with growth issue. Unless we deal with growth issue we wont get prosperity back. Could there be side effects to border adjustability tax . There are some sectors like retailers one of the biggest employers by sectors and citi group is under analysis as to how much they just put out border adjustment tax saying it is a 68 hit to earnings for kohls. A 62 hit to earnings for urban outfitters. Can these retailers operate with that kind of hit to earnings and still maintain employment levels or is side effect perhaps side losses because of border adjustability tax . This is a false narrative. Citi group has no credibility. You have Goldman Sachs, citi group, all of these peterson institute. I went through three months of this on the campaign trail. All they did was try to bury us with garbage studies about the roof caving in and world falling apart. People in fort wayne know better. Those tactors are just scare tactics that they can take on and just go crazy about trying to scare us. The customer is not the is the investor in the stock market who are watching the shares of retailers go down. In todays session we are seeing retailers go down. How do you like them apples. There are winners and losers. We have to cut you off. I will defer to my president. Thanks, peter. Thank you very much. I am honored to have Prime Minister teresa may here for our First Official visit from a foreign leader. This is our first visit. So great honor. The special relationship between our two countries has been one of the great forces in history for justice and for peace. By the way, my mother was born in scotland. Today the United States renews our deep bond with britain, military, financial, cultural and political. We have one of the great bonds. We pledge our lasting support to this most special relationship. Together america and the United Kingdom are a beacon for prosperity and the rule of law. That is why the United States respects the sovereignty of the british people in their right of selfdetermination. A free and independent britain is a blezing to the world and our relationship has never been stronger. Both america and britain understand that governments must be responsive to every day working people that governments must represent their own citizens. Madame Prime Minister, we look forward to working closely with you as we strengthen our mutual ties in commerce, business and foreign affairs. Great days lie ahead for our two peoples and our two countries. On behalf of our nation i thank you for joining us here today as a really great honor. Thank you very much. Thank you very much, mr. President. Can i start by saying that i am so pleased that i have been able to be here today and thank you for inviting me so soon after your inauguration. And i am delighted to be able to congratulate you on what was a stunning election victory. As you say, the invitation is an indication that the strength and importance of the special relationship that exists between our two countries, a relationship based on the bonds of history, of family, kinship and common interests. In a further sign of the importance of that relationship i have today been able to convey her majesty the queens hope that President Trump and first lady would pay a state visit to the United Kingdom later this year and i am delighted that the president has accepted that invitation. Today we are discussing a lot of topics. The president mentioned foreign policy. We are discussing how we can work more closely together in order to take on and defeat the idelology of islamic extremism. We are making progress. We need to redouble our efforts. Today we are discussing how we can do this by deepening intelligence and Security Cooperation and critically by stepping up our efforts. We know we will not eradicate this threat until we defeat the ideology that lies behind it. Our talks will be continuing later. Im sure we will discuss other topics, syria and russia. On defense and Security Cooperation we are united in recognition of nato. Today we have reaffirmed our unshakable commitment to this alliance. I didnt think you said you confirmed you are 100 behind nato. We are discussing the importance of nato continuing to ensure it is as equipped to fight terrorism and cyber war fare as it is to fight more conventional forms of war. And i have agreed to continue my efforts to encourage my fellow european leaders to deliver on commitments to spend 2 of gdp on defense so burden is more fairly shared. Only by investing properly in our defense we can ensure we are properly equipped to face challenges together. The president and i have mentioned future Economic Cooperation and trade. Trade between our two countries is already worth over 150 billion pounds a year. U. S. Is a single biggest source of investment in the uk. And the uk u. S. Defense relationship is the broadest, deepest and most advanced of any two countries sharing military hardware and expertise. I think the president and i are ambitious to build on this relationship in order to grow, provide high skilled, high paid jobs as a future for working people across america and across the uk. And so we are discussing how we can establish trade negotiation agreement, take forward immediate high level talks and for the practical steps we can take now in order to enable to do trade and do business with one another more easily. I am convinced that a trade deal is in the National Interest of both countries and will cement crucial relationship that exists between us as the uk leaves the European Union and reaches out to the world. Todays talks i think are a significant moment for President Trump and i to build our relationship. I look forward to continuing to work with you as we deliver on promises of freedom and prosperity for all people of our respective countries. Thank you. Very nicely stated. Steve holland. Thank you. You are going to be speaking tomorrow with the russian president. What message would you like to convey to him . How close are you to lifting sanctions imposed on russia over the ukraine inkurgz. What do you expect in return . Do you foresee changes in British Attitudes towards sanctions on russia . I hear a call was set up, steve. Well see what happens as far as sanctions early talking about that but we look to have a great relationship with all countries. That wont necessarily happen. Unfortunately probably wont happen with many countries. If we can have as we do with Prime Minister may and the relationship that we have all developed and in the short relationship that we have just developed just by being with each other, have lunch and we have really had some very interesting talks and productive talks. But if we can have a great relationship with russia and with china and with all countries im all for that. That would be a tremendous asset. No guarantees, but if we can that would be a positive, not a negative. We have as far as the uk is concerned on sanctions to russia in relation to activities in ukraine we have been clear that we want to see the agreement fully implemented. We believe sanctions should continue until we see it fully implemented and have been continuing to argue that inside the European Union. Thank you very much. Prime minister, you talked about where you agree, but you have also said you would be frank where you disagree with the president. Can you tell us where in our talks you did disagree . And do you think that the president listened to what you had to say . Mr. President see what she says. Mr. President , you have said before that torture works. You have praised russia. You said you want to ban some muslims from coming to america. You suggested there should be pungzment for abortion. For many people in britain those sound like alarming beliefs. What do you say to our viewers at home who are worried about some of your views and worried about you becoming the leader of the free world . This was your choice of the question . There goes that relationship. On the issue that you raised with me, can i confirm that the president , i have been listening to the president and the president has been listening to me. That is the point of having a conversation and a dialogue. We have been discussing a number of topics. We will carry on after this press Conference Meeting and discussing a number of other topics. And there will be times when we disagree and issues in which we disagree. The point of the special relationship is that we are able to have that open and frank discussion. So we are able to make that clear when it happens. But i am clear, also, that there are many issues on which the United Kingdom and United States stand along side one another. I think as i said yesterday in my speech that we rat a moment now where we can build a stronger special relationship where it will be in the interest of the uk and United States and wider world, as well. We have a great general who has just been appointed secretary of defense, general james mattis. He has stated publically that he does not necessarily believe in torture or waterboarding or however you want to define it, enhanced interrogation i guess would be words that a lot of people like to use. I dont necessarily agree, but i would tell you he will override because i am giving him that power. He is an expert. He is highly respected. He is the generals general. Got through the senate very, very quickly which in this country is not easy, i will tell you. And so im going to rely on him. I happen to feel that it does work. I have been open about that for a long period of time. But i am going with our leaders. And were going to win with or without. I do disagree. As far as, again, putin and russia, i dont say good, bad or indifferent. I dont know the gentleman. I hope we have a fantastic relationship. That is possible and it is also possible that we wont. We will see what happens. I will be representing the American People very, very strongly, very forcefully. If we have a great relationship with russia and other countries and if we go after isis together which has to be stopped, thats an evil that has to be stopped, i will consider that a good thing, not a bad thing. How the relationship works out i wont be able to tell you that later. I have had many times where i thought i would get along with people and i dont like them at all. And i have had some where i didnt think i would have much of a relationship and it turned out to be a great relationship. So we never know about those things. But i will tell you one thing, i will be representing the