Good tuesday morning, welcome to squawk alley. Were here at post nine of the new york stock exchange. Top executives from the big three auto makers meeting with President Trump. Were monitoring a number of hearings. The president at this hour also expected to sign new executive orders at this time. Phil labeau is in chicago. Were expecting to see the president at the top of this hour sign a order related to the Keystone Pipeline. We just had the auto ceos mark fields gave the reporters his reaction to the executive order yesterday on tpp. We have been very vocal as a industry and a company. And we repeatedly said the mother of all trade is manipulation. And tpp failed to meaningfully deal with that. Mitch mckonld said he will be here this afternoon. They are going to meet with the president and talk about a Supreme Court choice to fill that vacancy. Thank you for that, speaking of moving parts, what a day in the auto sector today. Yeah, lets go back to what President Trump spoke about today. He wants u. S. Sold vehicles to be built in the u. S. , youre looking at 43 of vehicles in the u. S. Imported from other countries. They come from mexico, canada, and japan. Keep in mind that the current state of capacity is theyre close to running at capacity. It costs billions of dollars. They build about 70 of the vehicles here in the united states. It is a substantial improvement. Not where we were prerecession, but a substantial improvement. Theyre higher today even though as we talked about, youre looking at the auto makers likely adding costs to build in the u. S. Phil, dont go any where. Robert coop is the International Corporate strategist, it is good to see all of you. How are you supposed to be thinking about capacity right now in light of what the white house is offering. I think they will be able to raise prices on cars, they will not have a lot of capacity. They focus but you focus on these changes . These are real price increases, im not sure i would describe is as inflation. Robert, how about you . Im looking at it from a stand point of china and we dont want any relations. There has been talk and concern in china that will affect the entire community in both countries. The Auto Industry in china is doing well. They have major operations there, theyre 50 owned by the Chinese Government entities. I look for the chinese auto sector to be a important driver of chinas economy. And on these trade questions, you say you cant make for 20 what you can buy for 2 and remain competitive in the long run. Translate that as far as what he says he wants to do for all of the cars manufactured in the u. S. I think unfortunately he is focused on imports. I think we we were buying something from mexico, we would not care if they were buying the same amount to us, but what happens is that the flow has to blast, so if you start restricting imports, the mamt of money that is off shore, it will also be restricted. So when you restrict one, you restrict the other. You want to change the mix of money flowing into the u. S. To savings. Off shore countries are loaning us money to buying exports. And there are many ways to do that, but our imports will not have much of an effect between savings it is a problem that most voters dont see and they dont understand the way that congress the good that is the most responsible for the trade deficit, it is autos. Interestingly what we have is a surplus in services. We export our mind share. And im wondering if you think this shift that our economy has under gone from a manufacturing economy to a services economy, if the balance of that is at risk. It is a understanding of how the whole economy works. If we put tariffs on good, it is like subsidizing for few americans. It may be like medicare and other social services. It is a decision the country may make. But it is inefficient for the entire world. So what youre saying between manufactured goods, service goods, and an increasing Knowledge Based economy where more manufacturing will be robotic anyway, that the broth industries must be intellectual. That is what we should be focusing on, i believe. For the long future, it is a sub op o opttmaizational plg we can collectively do better in a consonant way than to be disruptive. I want to add one point about pricing, which you brought up earlier. Will people pay more . Think about this, the afternoon transaction price, the average in the u. S. , it 34,000. You think someone who is buying a ford fusion is going to pay, or a ford focus, whatever a small vehicle might , they will be willing to pay 22,000 or 23,000. At some point you get real resistance from the market that is buying the smaller cars. And to be on the lower end of the demographic. So the question becomes is it worth it . Is it worth it to pay a tax if you have to do it conversely or here in the u. S. . Ed, your thoughts on that . I think the automakers would love a tax on imports. Theyre making 75 on their cars. How much remains to be scene, i think you will see more increase on the high and low end, but they would love taxes on imports. Finally we talk about cars being made in the u. S. , but they may still be built with parts being outsourced from outside of the u. S. What happens then . Generally speaking, your supplier goes where the manufacturing is. If you were to theoretically shut down those plants, put them in ohio, michigan, or missouri, or the central parts of the united states, you would see those plants come back to the u. S. T all of tm bua lot of them. They go with the united states. Thank you, we are just on day two, it will be a lot more, as we go to break we have presession highs here. When we come back, the president is expected to sign more executive orders this morning advancing the Keystone Pipeline. Today, putting the brakes on brexit for now. Well break down all of the numbers with Ellie Wheeler when we come back. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Wont replace the full value of your totaled new car. The guy says you picked the wrong insurance plan. No, i picked the wrong insurance company. With Liberty Mutual new car replacement™, you wont have to worry about replacing your car because youll get the full value back including depreciation. And if you have more than one Liberty Mutual policy, you qualify for a multipolicy discount, saving you money on your car and home coverage. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. Packed business agenda for Auto Executives today and manufacturing ceos yesterday in follows protests of his inauguration over the weekend. Wall street also mobilizing in the capital on monday. Good to see you. Thank you, you too. You had a busy weekend. Now, seeing so many familiar fashions in wall street and the potentially positive forces for wall street. We should give the new administration a chance and im certainly first up there. I have been watching some meetings as they come out with a fascinating new style of interacting with business and we do want a strong economy. I think right now the focus has been more on earnings than on what will happen going forward. The focus will be on the companies, their cash, if they are repatriating money. Interest rates are higher. Going forward, the key will be are we going to create new jobs. What kind of tariffs will be imposed. I think the ceos that he is meeting with are saying were all for creating more jobs but we dont want a trade war. Often times when they race money, the Big Tech Companies are buying other competitors bonds because they have so few places to get that money to get a what would it take for them to bring the money back. What would the most attractive thing, policy wise, be for these companies . I think it is important to look at tariffs and regulation and deregulation. Deregulation is not necessarily good or bad. There are things to look at on both sides. For example, the regulations in effect, the pharmaceutical market, it means it takes longer for drugs to come into market. In the corporate market, dodd frank creates additional regulations. So i think that will be a real issue. When it comes to the womens march, that number of people that turn out, we have not seen that in quite that way for whatever the broad range of reasons turning out. Is that what we should be expecting economically for 2014. I dont think it necessarily has an economic impact. I think that saturday was really about the social aspect. It was about human rights for all. It was fascinating to see the signs. Not the antitrump signs, but the protecting the rights of women, gays, and muslims. So this march as opposed to previous, it wasnt about womens suffrage, it was against a person. You disagree with that . I think there was equal numbers there. I will say that i wasnt necessarily supportive of the signs that were against trump. I was there for a positive reason. I was there because as a recognizable woman on wall street, i have a platform and a voice, and i want to be able to use that in a positive way going forward. What exactly are you looking for from the white house that employs women at very high levels . Kellyanne conway, i wish there was more women in the cabinet so far, but that is what it is. Im looking for the rights of people based on religion, gender, and race. I think those are the things, starting with the night after the election. Not necessarily with trump, we were seeing people vocal about their opposition to people who are different, and that is why i was there. There was a piece in the New York Times by our former colleague that featured you. They said we dont normally do this. We have never done this before. Do you think this protest was a oneoff event or will the feelings keep bubbling up . I dont think it was a oneoff event. The number of emails i got, and people commenting on what do we do now. I started a Facebook Group after the election that is based on all of us supporting other groups that feel like theyre marginalized. I do think you will see more women running for office nationally and locally. That is certainly a wonderful thing. I was just reading about an article about why another woman marched. When we got to the station, there was a mass of pink hats. It is great to have your perspective, youre right in the middle of it all, keep coming back to us to talk about the markets as well. Still to come, a headache for teresa may after a British Court through another speed bump into the brexit plan. Watching shares of apple. The stock doesnt have significant upside potential. Squawk alley is back after this. U. K. Supreme court ruling that teresa may must have parliaments approval before brexit can begin. Lets speak to paraments lead negotiator. Thank you for joining us today, it is a pleasure to have you in new york. Youre the chief negotiator, so any deal struck between the government and the European Union has to be approved by you, so what do you make of the development and the comments of teresa may in the past couple days on her intention for a hard brexit. We were not surprised by the decision of the Supreme Court because the Supreme Court has simply confirmed the first decision of the high court. And that means that the British Parliament will be involved before article 50 of the treaty can be triggered by the u. K. Authorities. And i think it is a good thing. It is clear now that in the interest of the citizens and the British Parliament will be involveme involved. And we are involved based on the treaty we need to approve, or disapprove the final agreement which the u. K. Authorities, and we have requested that we should be linked to these negotiations, be present in the negotiations, from day one. As we need to approve the final deal. Then, on the issue of mrs. May, she has made clear that britain wants to go out of not only the European Union, but also the single market, the customs union, the European Court o justice. So tha iclearcut from the European Union, and that means that yeah, once triggered, article 50, question start negotiations i think in may or initially june. While were talking, the president signed those executive or orders on keystone and Dakota Access. He says we will renegotiate some of the terms, that was expected, just wanted to keep the viewers honest on that, seima. You talk about a rise of populism. How is trumps presidency impacting the political la landscape across europe. First of all, i think the national and populist movement has more influence. Trump has influenced these movements in europe because of the origins of these national and populist movements are from a decade ago. It is true that the election of trump makes these movements more credible. And for us, for europe, the election of mr. Trump is a wake up call to a faster integration of the European Union. We need to make a real union, a real federation, a Political Union but also the defense community, the defense capacity, because mr. Trump is very clear that he doesnt believe any more in the European Union. He said i expect other countries to break away from the union. Not only great britain. And that is a very, i have to tell you, a very hostile statement towards the European Union. Since the second world war, europe has been the best ally of america. And i think mr. Trump made a mistake to be hostile to the European Union. America can only be great again if there is a ally like the European Union who is strong, defends the same values, and has t opinions the same. So it is a wake up call. And that well be an encouragement for european leaders to go forward on a fast track with the integration of the European Union creating a Political Union and a defense union, i hope. It is not just politicians, though, that are identifying and finding success employing some of this rhetoric, it is corporate leaders, too. Just last week, jamie dimon says the euro zone might not survive if politicians cant get a hold on the discontent that is there. What is your outlook for that . What we desperately need, and the reason why i think the analysis is correct, is a new governance for the single currency. Until now, the European Union is merely a confederation of Member States based on unimity. The americans know you need more than that for the confederation to keep a continent together, and you to establish a real federation. You need a treasury, a government, to as the basis for a single currency. And we have these ideas welcome the project to establish a new governance for the euro zone is ready. The only thing it lacks is the political will. But i think that the election of mr. Trump will be an encouragement now to realize them. These ideas. We will leave the coersation there, the former Prime Minister of bell yum and the chief brexit negotiator, thank you for your time. Guys, all of this coming ahead of teresa mays meeting friday with donald trump. Thank you, watching for the european close, we want to bring you up to speed on some of the headlines regarding the checkticheck ti executive orders, the order hi says is subject to terms and conditions. He says they should use American Steel, ordering, expediting environmental approvals on high priority infrastructure projects, and going on to say he will announce a Supreme Court nominee choice next week. I believe john harwood is watching all of these headlines, john . Carl, this is a completion of a Campaign Promise that donald trump made. He said he would approve twhehe two projects, and the pipeline was a political football for the obama administration. The administration leaned towards supporting it. Trump make a different cost benefit analysis. One of the questions will be how quickly transcanada resumes that pipeline process, if in fact they do. You know there are various price concerns, the pipeline is good f for north dakota, a state that trump carried handlely in the election, and they would lessen their transportation costs of their oil. As for the Supreme Court. This is a vacancy that has existed since the death of antonin scalia. They tried to get Merrick Garland approved. Now donald trump is saying he may have a pick as early as last week. He said it would come in his first couple weeks in office. The question is can he get 60 votes for that nominee because under the current rules, even though cabinet members can be confirmed on a simple majority, the Supreme Court justices need 60 votes so he needs eight democrats to go along. The energy ramifications on important. What are your thoughts . As i said before these are two very important projects for the Energy Industry. Lets talk about the Keystone Pipeline quickly. When president obama vetoed the prokt, they immediately applied for an appeal. Analysts told me they are ready to go and move forward with the project quite quickly. The Energy Partners have always wanted to move through with this, but on the keystone side, youre bringing that heavier oil down to the u. S. In is not necessarily the kind of oil that were producing domestically here, and we still impo