Right now. And welcome, everybody, to power lunch. Im tyler mathisen. Stocks are lower to kick off the week with all three major indexes sporting somewhat modest declines, massachusetts dak the biggest of the three. Financials posting the biggest losses and the new kid on the block, snap, is having its first down day since going public thursday. Snap down now. Michelle, nearly 7 . Big intraday move there, tyler. Yep. Im Michelle Carusocabrera. We have a busy twohour show once again we kick it off with news out of the white house. President trump signing a new order on immigration, following a busy week of meetings, travels and controversial tweets. Eamon javers join us. Reporter were told the president signed the executive order at the white house earlier today. The white house didnt allow reporters or cameras into the room for that. They did make a few highranking officials available for some comments on television about this. Secretary of state Rex Tillerson described it this way. It is the president s solemn duty to protect the american people. And with this order, President Trump is exercising his rightful authority to keep our people safe. As threats to our security continue to evolve and change, common sense dictates that we continually reevaluate and reassess the systems we rely upon to protect our country. Reporter now, michelle, here is what we know about whats in this executive order based on what Administration Officials told us today, and some of the texts that have come out this afternoon. This is six of the seven countries affected by the january 27th executive order. Theyve taken iraq out of this. Officials briefing reporters today, saying that the Iraqi Government has been very cooperative in getting the u. S. Government the type of information it needs to secure people coming in from that country. Theyre also saying that this is effective march 16th. That gives them some time to coordinate the rollout across the entire government, make sure there are no snafus like we saw back in january. It doesnt revoke any valid visas in place right now and theres no distinction made for syrian refugees. All refugee admissions will be halted for 120 days. Theyre also saying this does not apply to green card holders. So, a very different executive order than the one we saw january 27th. And in the text of this executive order, michelle, it revokes the president s previous executive order even though the white house insists that one was legal and proper as well. Over the weekend, the president got a lot of attention, eamon, for tweets he sent over the weekend, suggesting, in part, that president obama tapped his phone during the election. Reporter right. Thats a real head scratcher. The white house still hasnt provided any evidence that his tweet was accurate. It blew up washington, people trying to figure out if the president is referring to new information he was briefed on by u. S. Intelligence. It would be possible for a fisa court, intelligence court to issue a warrant for getting Telephone Communication if they had probable cause. James clapper said on meet the press over the weekend, no, that simply didnt happen. Its not clear what the president was talking about. We should hear from sean spicer off camera here in about half an hours time. You can imagine he will be besieged with questions about that. Ill bet. Thanks, eamon. Lets talk more about the president s management style as evidenced over the weekend. And before. Joining us, director for uva center of politics and ceo for the committee of economic development. Guys, welcome. Good to have you with us. Steve, let me begin by asking you whether what were seeing in the Trump White House is, in any way, the expectable bumps you would have under any administration, particularly one led by a businessman who is probably not accustomed to having things leak and probably not accustomed to being criticized at every turn for everything she or he does. Well, i think youve hit some important points here. First of all, this kind of transition has been tough on every new president as they come in, they try to get their bearings. Second, its no surprise that president s bring in trusted people and try to put them in positions around them. You see President Trump, having done that with family and some of the close advisers. But there are 4,000 political positions still to be appointed here. 1,200 that require senate approval. Most of the people throughout the government are from the other party. And not necessarily consistent with the philosophy. So, youve got to get those appointees through. He has got to articulate principles, strategies and then he has to empower these groups in order to implement these things. Thats what any ceo has to do, any governor or any highlevel official in order to run something that is as dispersed and, you know, has as many tentacles as the u. S. Government. Larry, the president last week is pretty widely praised for a speech that sounded president ial and then later in the week down in newport news at the gerald ford, aircraft carrier. But then on saturday, the other donald trump came out in a burst of tweets. Does he need simply to stay focused on being president and not on tweeting or what . How would you advise him . Well, you can offer advice. He probably wont take it, especially from family members. He needs to stop tweeting. He undermines himself and violates the principle that he enunciated to congress to put aside the trivial pursuits. By nature, a tweet is trivial, especially when you attack Arnold Schwarzenegger, meryl streep or make outlandish charges against your predecessor, president obama. That would be number one. Second of all he has to focus on the area where he has credibility. Jobs, the economy. Thats where, even now as his ratings are sinking in the 40s, he is still rated above 50. He is seen as credible on the economy. For god sakes, focus on the economy. But is there some element, some machiavellian element to this, steve i dont know if the president thinks this way or not. But theres all these articles on the front page of the new york times, trump, russia and all this stuff. Instead of talking about that, the entire weekend was spent on twitter with the media, talking about Arnold Schwarzenegger and his tweets. Do you think theres some element to, hey, look over here. Were not talking about the big picture stuff. Were talking about his tweets. Its almost a win for the president. Yeah. You know, some people believe that this is just a distraction. Dont look at the man behind the curtain. Focus on something else. Maybe that is part of it. So many people are focused on trying to change donald trump and tell him he has to stop doing this and start doing this. People like larry. The guy is not going to change. Yeah. The guy is not going to change. He is who he is. He displayed that pretty openly throughout the campaign. He hasnt changed one bit. And, you know, he has been successful in his mind up to this point. Now the question then becomes, how is he going to govern Going Forward, when he you know, he doesnt have every decision coming through his office, as the head of a Real Estate Development firm. He simply cannot be part of every decision and every implementation. And this is where he finds himself. So, this is why i come back to, he has got to get these 4,000 positions in place. He has got to get the 1,200 Senate Approvals through, get them appointed and then get them through in order to then work through all of these appointed officials and to begin the work of governing. Its an important point. Right now the opposition is working for him, right . Everybody in the government at the moment is the opposition, hence why you have so many leaks, et cetera. But larry, let me come back to something you said. Larry, one of the things that explains donald trump is his success at using twitter. And going over the conventional media to reach his core constituency. And they seem to like it. Why would he give it up . I get the idea that it is unconventional president ial behavior at the very least. But this is how he communicates to the broader public. One, okay. Dont give it up. Using it sparingly. It has more effect that way. If theres one thing we learned in the last two years, his base, the trumpbots, are with him regardless. It doesnt matter what he says or does. I dont know that he needs that as much as he needs, as steve was saying, focus on the government. Focus on what you do well. And i think a lot of this will take care of itself if he changes to a certain degree. He doesnt need all these appointees. He has outstanding cabinet officers, like Rex Tillerson, general mattis, others. He can rely on them to a much greater degree than he is, rather than that personal staff, some of whom are not quite on the bean. Steve odland, larry, thank you. Appreciate it. Continued drama for the white house. North korea, by the way, launching Ballistic Missiles over the weekend. Seemingly more nationalism in europe and big fed meeting that might include another rate hike. Through all that have, stocks are having a great year. What are the most important things you need to be laser focused on . Jeannie why at and from pnc asset. These are your words, you are a perma bull for stocks, which one would expect in your industry, which is fine. What makes you nervous . Look at what we just outlined. What makes you nervous right now . The only thing that makes me nervous right now is the gap between knowing that Corporate Income taxes are the lowhanging fruit and will be reduced most likely. I think President Trump has been quite consistent in that, as the tax foundation, Nonpartisan Group pointed out early in the campaign both clinton and trump were actually in favor of Corporate Tax reduction. Even the obama administration. So we know Corporate Taxes are likely to be reduced. Fair enough. We all spent time in d. C. Lately. I know this. There are 535 men and women on capitol hill who all have a different point of view. Who all think they should be president. Thats right. And you should be. Is Corporate Tax reform already baked into the dow . In order if we dont get it, what happens to stocks . To a certain degree, yes, its already baked in. What is not baked in is what levels. Because, again, we feel that Corporate Tax reduction is a lowhanging fruit. And its going to get done. Its going to get done. The devil is in the details. Because in order to get it done, there will likely be a reduction or an elimination of the Interest Deduction on debt, which affects some companies more than others and possibly a border tax. Most likely a border tax. So the devil is in the details. Bill stone, we heard from jeanie. We heard from ron insana last week. Maybe the only risk to this rally is a failure when it comes to getting Corporate Tax reform done. Do you agree or is there anything else out there . It certainly sits out there. I would say maybe part of the risk is just that, you know, making the sausage just takes too long and the market gets tired of waiting. I guess i still say in the end its going to be okay, because i think im a lot in agreement here. I would say i dont know that we necessarily get reform done. I guess i would stake it in at least we get a tax cut and repatriation. Its unclear to me, because reform is really hard, whether they dont just eventually chuck it for the short run and go right to the tax cut and maybe some repatriation mixed together. I dont think thats a bad outcome for the market either. But getting there may, in fact, cause us some indigestion. You both like financials. Jeanie, bank of america is up so much. A lot of you come on and say it doesnt matter, theyre going up even more. Right. The whole sector, the whole financial sector, when you consider how much regulation has been put in place since 2009, over 230 new regulations most of which have been on the financial sector, banks particularly. So, just a shift in that environment. Even if theres no new regulation added. Sentiment favors the stocks. We like the sector. By any means we dont want to be away from that sector. Bank of montreal, upside, downside at this point is a little more interesting because it has good dividend support and a good fundamental story. 33 compared to 85 . Thank you so much, jeanie. Much appreciated. Bill, you too. Thank you. Trying to get the president s attention, why everyone is talking about this ad today. Sure you saw it on saturday night live, right . Its coming up. And are we headed for a showdown . North korea rattling Global Markets by firing off another four Ballistic Missiles yesterday. Were tracking the fallout next. Welcome back to power lunch, everybody. North korea launching four more missiles yesterday, as that country aggressively moves forward with its nuclear program. But it begs the question, how does a poor country afford something as expensive as a Nuclear Weapons program . Where does the money come from . Report out of the u. N. Today is providing new evidence on how the country makes a lot of money flouting u. N. Sanctions and, michelle, what a weekend you had, reading this report. Its super interesting. Highly recommend it. New report details how north korea is making millions by selling arms to countries in africa and the middle east and billions selling coal and iron ore to china. One example, ship seized in the suez canal was carrying rocket propelled grenades from north korea. Destination unclear. Underneath those tarps. Also report that they sell various armaments to a Company Called glocom. Many Front Companies like glocom in the report registered in malaysia or china to hide their north korean roots. North korean diplomats have been caught smuggling luxury goods, including gold bars, watches and even this bentley. Still processing transactions from north korean banks even though some of them are supposed to be prohibited from using the Global Financial system. I reached tout swift and am waiting for an explanation. The biggest influx of cash, more than a billion dollars, comes from carrying coal and iron ore to china. The u. N. Has asked china for an explanation. What should be done by the Trump Administration in the face of the missile launches and this report . Joining us now is anthony ri rigiro. Thanks for being here, anthony. Thanks for having me. The Biggest Issue is what to do with china and they seem complicit. Reading this rorkeport, i wasn surprised by the china angle. What surprised me more was swift. Our audience came to know because of the iran sanctions situation. I was startled to read theyre still processing payments for north korea. Were you as started by that . Yes, definitely. It was stunning to me. I dont know how swift could even rationalize having secure Financial Messaging Services not just for designated north korean banks but any north korean banks whatsoever. It looks like their response to the u. N. Was, well, the belgian government said it was okay for us to get thousands of dollars in fees. I simply dont understand, as you said, given their experience with iran, how they could justify a country that is the u. S. Has designated as a Money Laundering concern. Who runs swift . International consortium. Its mostly owned by the banks. I was on their website today. You can still see some of the north korean banks on that website. This could also possibly be a violation of u. S. Law. It is part of a larger concern, which i think most people expect or believe that north korea is isolated from the financial communi community, and they are not. Whether theyre using china to process dollar transactions through the United States or Front Companies and other countries to access the International Financial system. Thats what we need to be doing more of. With iran, we were on them multiple times, designated more and more Front Companies and were just not doing that on north korea. Every book on north korea, which is about three, anthony, tess a country you wonder every time we dig in, how do they continue to exist . I mean, every major dictatorship in the world tends to get toppled over time. But this family has been able to hold on for over 60 years. Whats it going to take to get real change in north korea . And how have they held on so long . Its an economy from 100 years ago. Agreed on that point. The primary issue here is that the north korean regime doesnt care about its people. All that money that were talking about here is going to their Strategic Programs and to the elites. And they are able the report over the weekend said they were able to get significant revenue from these this mechanism. And how theyve been able to survive is we are not closing these loopholes and these gaps to start to pressure the regime. I think people expect that were doing that, but were not. That leads me directly to a question that seems obvious here. Do sanctions work . Well, theyre not working now, because theyre not well enforced. I cant think of a case where sanctions have really achieved the objective. They didnt particularly work with iran. Well, they worked with iran in terms of getting them to the negotiating table. I think that was the ultimate goal. We can have a debate of whether thats the deal itself is what we were looking for but the goal was to get them to the negotiating table. Would it help if the china enforces the sanctions . I dont know if they willfully look away but they could do more, couldnt they . Exactly. Given Chinese Security services its hard to believe that billions o