Transcripts For CNBC Squawk Alley 20160323 : vimarsana.com

CNBC Squawk Alley March 23, 2016

Condolence book for the victim of the attacks. He promised full u. S. Support for the people. We are prepared to provide any and all capability technology. Anything we have that can add value to their fight. They will prevail. About 270 people were injured in the airport and train station bombings. This is the latest at this hour. Well have updates at the top and the bottom of each hour throughout the day. Back to you. Thank you. Well talk to you soon. Meanwhile, lets take you out to brussels where michelle has made her way. What is the latest there . Were a block away from the train station which is behind me. On the mood you might expect subdued here in brussels. There was a raid underway where they are looking for the third suspect seen on closed Circuit Television at the airport we see more and more calling for open boards. Its very easy to cross borders. Theres normally no checks even though that changed right now. In germany, he is with alternative for germany. No its not like other times. Its enough in the u. K. Which is surrounded by water. They dont have an issue with borders or people crossing borders but they do vote in june on whether or not theyll decide to stay within the European Union and a member of the party thats the Independence Party advocating for an exit for that vote cameron says were in the eu and it doesnt feel very safe. The concept of open boarders was conceived in the peace dividend post the cold war. No one anticipated a borderless war and theyre coming to grips with those two things coming together. Theres going to be an intense amount of debate about the future of europe on the wake of this attack on top of what we saw in paris on november 13th. Dont go anywhere. Good morning to you. Thanks for having me. Im like to talk to you about the degree to which congress may start to consider changes within Border Protection and profiling. The things that ted cruz talked about this week. We have been talking about all of our Counter Terrorism authorities and protection of the homeland. What do you make of where we are in this fight outside of the belgium attack. We had that the paris attack that seemed to be coordinating involving multiple groups of people, i dont know what your take is but it seems to me this may have been coordinated or may have been, who knows, the final move of a group that felt like they were being closed in on and had to do something. Is it possible that the fight is actually been taken to this group more than we can see here as people react. Certainly people were on to this group and this was a reaction or a plan, certainly some plan went into it. There was a measure that went into it but the more troubling thing is whats going on in syria and we have long thought maybe we could just avoid that problem and have it not spill over into the west. Whether thats europe or the United States and its there and its coming. We have to deal with the problem of isis and syria out in iraq. One of the stus in that fight if i can just weigh in there kayla. The issue of back in 2011 it wasnt just obama that stepped back from syria. It was all of western europe, germany, the rational was we shouldnt get involved in syria. If we do it could create a wider regional conflict. It could grow out of that rion and become bigger. Its about the question of what do we do about the defense policy within the United States. Staying out of those areas, did that actually work . Im not saying that i have an opinion on that but thats going to be another question. Look, the reality is our policy has been a failure. We tried air strikes and it doesnt work. They control a large amount of land and theres attacks in the u. S. Whether in europe or the United States and we have to deal with that and recognize that what happens there has a correct impact on the safety of americans and europeans at home. Is this a fight that at this point the United States and europe can fight with diplomacy or does there need to be greater and greater coordination . Diplomacy is not going to solve this problem isis controls a significant amount of territory. Strategically we are not defeating them and we have to do more. Diplomacy will not solve the problems. The question is how far you go to syria sustained armed conflict. It wasnt too long ago europe and the u. S. Were talking about fatigue when it came to oversaes military conflict and the question now is whether theres a renewed appetite to go harder on the offensive at where isis is centered. Wouldnt you agree . Way back when Syrian Civil War started the idea was lets not get involved. It could cause repercussions for us if we get involved but not getting involved also caused repercussions so there has to be a rethink. Whether or not you can get pop dwru lagss to go along with it thats another question. I think carl, the closer it gets to home where you live the more willing you are to put your soldiers lives at risk. The line of thinking not long ago was isis wants to draw us into boots on the ground. That that would be a great image for them. You seem to be advocated for doing more than air strikes. Are you saying that that point of view is proven illegitimate or were you never agreeing with that anyway . Putting boots on the ground in that area would play into isiss plans. Theres no doubt isis wants to draw us into this fight but we dont have much of a choice. If were going to be safe at home we have to take the fight to the enemy where they live and the policy is leading from behind and waiting for the enemy to attack us or thinking that air strikes will defeat them. Its a failed policy. We have to go out there and we have to address this cancer where the root is and we havent done that yet and what it takes to build that political coalition. It takes leadership and we need leadership to assert that and whether thats going to come from this president or the next president we have to recognize its not just a fight abroad. Its going to effect us at home. How do you have that fight here at home . What do we do . These people are being inspired from abroad so i think the notion is were worried about patrolling neighborhoods at home. We should be taking the fight to the terrorists where they live and operate and going after them. We have been successful with al qaeda and safe since 9 11 and we have taken the fight and put them on the run. If we put them on the run and take their safe havens away and take out their security well be a lot safer at home whether thats in europe or the United States. No one would be upset about doing to isis what we have done to al qaeda. Michelle well talk to you soon. John harwood is in washington as we wait for speaker ryan to give his speech on the state of the Republican Party and john whether its cuba or brussels more cross currents in politics than in awhile. Thats right. He has a difficult job. Trying to hold his party together. Hes trying to say we need to lift the tone of the campaign. A more optimistic vision and inclusive vision. How republicans maintain their unity and then take the fight to Hillary Clinton is the big challenge they face. We mentioned jeb bush endorsing cruise. Would you expect that today . Conventional endorsements have not had much value at all and paul ryan needs to stay above that process and thats what he has tried to do although he has said as he told me last week when we sat down for an interview hes going to speak out where he sees the party taken in a dangerous direction. He will work with donald trump and make it work if trump is the republican nominee. Fine line to walk. It does bring to mind a piece in the Washington Post today that looks at trump as an instinctive politician and not an ideological one and then john they try to make the point that the differences between a Trump Nominee and overall theyre not that far apart. His are deeper than anyone elses and therefore being attacked by his rivals in the race for increasing debt and deficits which is something the republicans are also concerned about but donald trump said he doesnt want to touch Social Security and medicare benefits. Its been a staple of republican thinking for quite sometime. He has a different attitude toward trade. Much more hostile than paul ryan. Different on immigration. That makes a lot of republicans uncomfortable. Certainly theres areas, Health Care Taxes where the prescriptions he has outlined once he is forced to give policy prescriptions match that of those of other republicans but the emphasis is different and tone is different and theres some clear differences on pollty like entitlements. Im sorry, paul ryan has just taken the lecture. Thank you for your indulgence and your patience. We have votes on the floor right now. She is inspiring. I also want to thank all of you for coming here today. I want to thank kevin brady my friend. The chairman of the ways and Means Committee for hosting us here today. I had the privilege of joining this committee in my second term. My seat was right behind these flags and its the perfect setting for what i want to talk with you today about because it is here in this committee that we debate some of the biggest most consequential issues. We debate our tax code, health care, trade entitlement reform, welfare reform. This is a big deal to be on this committee. People strive to get on this committee and understanding the privilege and responsibility that came along with it, we took our jobs very seriously here on this committee and we always held ourselves to a higher standard. We disagreed often fiercely so but we disagreed without being disagreeable. I speak of this in the past tense only because i no longer serve here but it almost sounds like im speaking of a different time, doesnt it . It sounds like a scene unfamiliar to many in your generation. Looking around at whats taking place in Politics Today it is so easy to get disheartened. How many of you find yourself shaking your head at what you sees from both sides of the aisle today. I see myself in each and every one of you. I came here as a curious college intern. Trying to get a sense of everything. Trying to figure out where to take my own life. I would always ask older more experienced people, what do you know now that you wish you knew when you were my age . Well, heres my answer to that question. Heres what i know now that i want you to know. That you cannot maybe see yourself today. And its a message for all americans. Our political discourse, both the kind we see on tv and the kind that we experience among each other, it did not used to be this bad and it does not have to be this way. Now a little skepticism is really healthy but when people distrust politics, they come to distrust institutions. They lose faith in government. Speaker ryan in the hearing room of the house ways and means committ committee. Echoing narratives that the trust in institutions is a dangerous thing. He is the polar opposite of what donald trump made in this campaign so what he is trying to do is say okay. Lets lift it. Lets raise our sights. Thats going to be good in the longterm for the Republican Party whether or not it helps an alternative to donald trump or ted cruz or somebody else its going to be good for the party longterm because we have seen the image hit during this campaign so far. But lets not pretend that ted cruz is mr. Establishment just because jeb bush endorsed him, right. Both of the front runners if there are two for the gop said things that are going counter to what paul ryan is saying now . Both are making a big deal over being hated in washington as if thats a good thing. Ted cruz called Mitch Mcconnell a liar on the senate floor this has been a problem for the party. The nature of the discourse. Some of it is ideological but a lot of it is the affect and the tone and and spirit within the Republican Party you have the violence and fights at Donald Trump Campaign events. Thats very disturbing. Paul ryan condemned that last week and called on candidates to condemn the possibility but hes taking it a step further today. Thank you as the headlines come from speaker ryan well get those to you. The president will hold a joint News Conference with the president of argentina. Thats expected to start in 30 minutes. A live shot of the first lady finishing her own speaking engagement. Dow remains in a tight range for an 8th consecutive day. Down 33 points. Back in a moment. Know your Financial Plan wont keep you up at night. Know you have insights from professional investment strategists to help set your mind at ease. Know that planning for retirement can be the least of your worries. With the guidance of a pnc investments financial advisor, know you can get help staying on track for the future youve always wanted. Im spending too muchs for time hiringnter. And not enough time in my kitchen. announcer need to hire fast . Go to ziprecruiter. Com and post your job to over 100 of the webs leading job boards with a single click. Then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. announcer over 400,000 businesses have already used ziprecruiter. And now you can use ziprecruiter for free. Go to ziprecruiter. Com offer2 phil joins us with another first on cnbc interview. Hey, phil. Hi, john. Im here with the ceo of mercedes usa. I have to ask you, you showed the glc coupe last night. The cross over market is red hot. Youre right. Its red hot and we saw a tremendous response from the consumers, the car is doing extremely well and were equally excited about the new glc coupe. Where are you bringing those buyers over from . Are those from other Luxury Brands or are you bringing people that said i always wanted to do luxury and now i see the cross over. This is the time to move into a mercedes . Its a mix of everything. Half of the customers come from another brand. But theres others going to the cross over segment right now because they like the performance and its great news for us. You know the criticism out there right now. Especially for the luxury auto makers. Youre too aggressive at the leasing and its going to come back to bite you in the next couple of years. Are you worried about that . Not really. Were going to stay consistent with the strategy in the past which is about 50 leasing. And we believe the secret is to be consistent. No wide swings or this or that. Just a con sis tent offering in the marketplace. Thats one thing that we watch carefully and provision and a lot of preowned cars coming back we need to keep an eye on that. No question about it. Youre at max capacity in alabama. Youd love more capacity wouldnt you . Isnt that a great problem to have . The biggest issues for our engineers is how to get more out of the factory. Thats a great spot to be but its something that were working hard to get more out of our factories to bring more cars out to our dealers and more suvs out. Guys we get them right before they go on stage. They corner them and they have to talk to you. Thank you. Phil, youre good at that. Thats why we love you. Phil at the auto show. Well talk to you soon. Lets turn our attention to the markets. Stocks are in the red but the nasdaq is quitely eyeing a positive week. That would be its 6th week in positive territory but for now joining us is jeff what do you make of the resilience of the markets this week. The dow is down but much is nike and earnings and not fear in the markets. I think from the macro perspective and the tragic events in brussels have been a challenge but were coming off a period where you had a lot of risk in the markets and central bank activity. Whether it was the ecb with historic expansion in terms of the Bond Purchase Program and greatly overdelivering relative to Market Expectations and followed up by the fed in terms of giving a much more dovish assessment of the outlook and bringing down to a pretty good surprise relative to Market Expectations. Their forecast for how quickly theyre going to normalize. All of that sort of helped to ease a lot of the con serns around the global environment. The impact of oil prices in emerging markets that really weighed on Financial Markets in january and february. So you have a lot of risk in the markets and Central Bank Action helped to push some of the risks into the background so in this environment Financial Markets have been able to do better with respect to some of the challenges that you mentioned. We were dovish last week but the commentary this week is hawkish. We focus on the dots plot. We have a little exercise in the bond markets and pin the name on the dot where we try to know exactly which dot is whom but what we focus on is really the core of the fed and thats yellen and fisher and to another extent bill dudly, president of the new york fed. These commentaries coming out of these members tend to have more weight in Financial Markets as to the direction of where policy is likely to go and while everyones opinion is of course focused on and is important the market tends to put greater weight on policy makers that have a greater influence on where the course of Interest Rate policy is going to go. Unfortunately jeff we have to leave it there. We get you developments out of brussels after a break. Good morning, everyone. Im sue herrera and heres what we know in the brussels terror bombings. Officials are searching for a suspect pictured at the Brussels Airport with two suicide bombers prior to yesterdays deadly attacks. Police made one arrest in raids overnight but that suspects link to the event is not clear. Several people that may be linked to the attacks are still on the loose and the countrys threat level remains at its highest level. Raids overtonight did uncover 30 pounds of explosives. Police were brought to a home by a cab driver that broug

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