tv Mornings With Maria Bartiromo FOX Business December 17, 2015 6:00am-9:01am EST
a half percent. ashton carter receiving scrutiny this morning after using private e-mail for government business. this could be even more problematic than hillary clinton's private use according to wall street journal. pentagon is one of the top targets for international hackers. more on the story coming up. a mistrial in the freddie gray's death. juries were gridlock. it's easier to travel to cuba. a deal for international flights has been reached. first time in decades. let's get to the top story first. the central bank yesterday lifting key rate to a quarter 1% as widely expected. future rate increases will be gradual. we are looking another day of gains this morning.
gary, what do you think about the increase yesterday? your take. >> gary: so many thoughts. let's talk about what happened yesterday. i'm not so sure that yesterday's action, tomorrow's action really is a reflection of the relief as many have said because she raised rates. i think it's absolutely crazy that we are raising rates into a slowdown. this is act the fact that there was tremendous protection board on the market and ones the morkt did not go down after the announcement yesterday, i think there was a tremendous rush to cover a lot of those -- a lot of those protection that were bought and next week we will see whether or not there's a tremendous amount of new capital committed to the equity markets as a result of this. all of could say that i would like to say sometimes when it comes to economic forecasting, garbage in and garbage out. if you're going to buy stock
markets today because the federal reserve is telling you the economy is growing and strong, look at what the people told us in 2012 was going to be the forecast and then make your own decision. >> maria: my problem with it, dagen, their back was up against the wall because of the credibility. >> gary: market was down in september. they were moving to what they thought the global markets wanted. >> dagen: right, i think actually they waited too long. i agree with you on that. but i think that the economy is good enough that they can no longer justify to all of their buddies within the academic community to keep rates at zero because you have do have decent job growth, wages having stagnant but not declining. you have some areas of the economy healthy enough that they have to get up and move and frankly, carly fiorina told niel after the debate, she said, i
don't think janet yellen is going to raise interest rates after next year. they had a political problem. they need today show that they're independent, hey, we are going to go now. we are not being held hostage by the white house. i definitely thing something like that had to play. >> gary: everyone will say that they have no pressure on them from any politics. that absolutely played into it, there's no doubt. >> maria: question now is what happens in terms of higher rates into a slowdown, does it actually hold the legs of something that's getting traction, like the job market? let's hold that thought because the other top story we are covering this morning is defense secretary ash carter now in an e-mail of e-mail controversy. carter uses personal e-mail to conduct official business. my next guest is best-accessing
-- best-selling author. thank you for being with us. >> i think, first of all, there are two issues, one is the political, the republicans wake up this morning and they know with what fuel they're going to cook today. every republican is going to be saying the same thing except for one republican candidate donald trump who is going to say the most bombastic things. he's the one that's going to get quoted. it's going to be hard for the republicans to use this, from a security standpoint it's over and done, they found out what it is. he didn't break any laws. it's going to be a slap on the wrist. so it's kind of like ob i'm waking up this morning and have you ever been seasick and say i just want to get off the boat and get over the seasickness. i think he's had it with all the surprises and just wants to move on and let's see what happens. >> maria: the issue is the
pentagon is so much more hacked than other asian -- agencies. it's not a pr story, it's a national security story. >> they knew that "the new york times" was going to come out with this. they have done double, triple protection. from a real security issue, it's not a story today, only the fact that another -- another obama administration person used their personal e-mails and that's the problem. >> maria: yeah. >> dagen: it speaks to mismanagement throughout the agencies under the obama administration under president obama's white house. you don't -- after hillary clinton they weren't on top of it, they weren't on top of what was happening in clearly not. ash carter doesn't care unless he wants to run for the presidency. >> i'm sorry, i think the big issue, it goes back to the issues on the debates is can we be safe, who is keeping us safe,
how are we going to continue going forward and know that our children and families are safe and when you see something like this, it doesn't help. it goes to clarity of vision and if you're saying in the white house on a sunday night in the speech everything is okay, we are going to move forward and keep this country safe and then we look at this, we don't feel so safe anymore. >> maria: what is your take on that in terms of national security being for american voters? >> i don't think that there is one. everyone was kind of saying the same thing. i think that chris christie remind me of my friends from new jersey who say will get it done but comes from many people like a thug and it's a tough one for people to wrap their arms around. ted cruz is strong in what he has to say and right turn is going to resinate through this by saying something bombastic that's going to get him --
>> gary: i want to go back to this mismanagement comment that dagen made. would you expect after the hillary clinton disclosure e-mail came out, a ceo would have said, told direct reports, i want to know exactly who has e-mail, are you surprised that this -- apparently this was not done, this was not done at the highest level. were you surprised about that? >> what keeps a ceo up at night is what he doesn't -- what he or she doesn't know. in this case obama is waking up this morning or yesterday morning when he found out about it and he probably cursed, michelle probably gave him another whack, when are you going to get your handle around this, something has to change. i think that there's probably from a political standpoint i don't think hillary is happy about it. from a management leadership standpoint i don't think anybody is happy about it.
>> maria: what are the implications? do you worry that this does open up the united states in terms of threats? >> i think that we are open to it, maria, i think there are really smart people doing smart things every day. i think it's just another example of the fact of what has to be done and somebody needs to come in there and say there's a no tolerance policy. it's not obama. >> maria: thank you so much for joining us. author of best-selling book. happy holidays to you. make sure you tune in on thursday, january 14th, second republican debate, join us live from south carolina on thursday january 14th. lawmakers set to vote on the $1.5 trillion spending bill by the end of the week narrowly avoiding a government shutdown. blake burman is with the story. >> blake: two massive measures
rolling into one. congressional negotiators agreeing yesterday to $1.1 billion funding bill along with $6 billion in tax breaks. republicans will be able to point to delays in obama care along with allowing small businesses to write off $500,000 in capital cost. victory for democrats, the child tax credit and earned income tax credit. the oil export ban will be lifted for the first time in 40 years, newly minted house speaker paul ryan called that a top priority for republicans. the concern for democrats, wind and solar tax credits also received a boost. white house, maria, says it has backed the deal. thank you so much.
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[martha and mildred are good to. go. here's your invoice, ladies. a few stops later, and it looks like big ollie is on the mend. it might not seem that glamorous having an old pickup truck for an office... or filling your days looking down the south end of a heifer, but...i wouldn't have it any other way. look at that, i had my best month ever. and earned a shiny new office upgrade. i run on quickbooks. that's how i own it. >> maria: welcome back. protestors taking to the streets of baltimore. cheryl casone with the details. >> cheryl: that's right, maria. protestors marching in baltimore after a mistrial in the first case relate today freddie gray, a black man who died in police custody last year. officer porter is the first of six police officers to be tried
over the death. meanwhile cuba and the united states reaching an agreement allowing u.s. commercial airlines to allow flights for the first time in decades, it's unclear when the flights will start as negotiations from the cuban government and u.s. airlines could take months. california unveiling for wireless cars, holding motorist responsible regardless of whether they're at the wheel, whatever happens. the regulations are coming after google announcing to plan self-driving cars, rides per hire. so now ford is going to be testing their new fusion hybrid next year in california. >> maria: uber has located so many industries, not just -- uber does not just want to
disrupt taxis, they want to disrupt the automakers, ford and the other guys better -- don't you agree? >> dagen: they're in a position where they need to catch up but they have the upper end in terms of manufacturing capability. uber does not have that. if uber wanted to make automobiles partner with companies in order for it to make financial sense. unless they want to get -- have unionized workers in the u.s. which all the american workers do, they have to do manufacturing in china or something like that. >> maria: in ride-sharing companies. how do you see it? would you invest in uber right now? >> maria: 60 billion. >> gary: it's clearly successful and it's going to continue to be. my only issue with the driverless vehicles the traffic
just seems to me -- maybe it's a thing here in the city, you guys, the traffic is getting worse and worse. >> maria: around the holidays. >> gary: it's just every single day. i don't know, maybe because more people are using the uber-like services. they are opting to do that as oppose to going on the ground. if the driverless cars can improve the traffic i'm all for it. >> cheryl: there has to be somebody behind the car. the big question is the person responsible if driverless car makes a mistake or gets into a crash, yes, you are. tests with ford and google, you have to be specifically qualified and trained to get behind whiles. they're going to be on real roads in palo alto in california. >> dagen: would i take a wireless driver?
you don't have to say can you turn down the the celine deon down. [laughter] >> gary: you want the driverless uber. you could get around things. [laughter] >> maria: i love to ask people if they would put the family in a driverless car. the driverless car did not drink alcohol last night, did not get any sleep, is not tired, did not text somebody while -- so there are a lot of positives around -- around driverless cars. we will see. i don't know if you could have one driverless cars and everybody else driving. maybe you need everybody driveless. it's interesting on what's going on. we will take a short break. struggling oil sector. oil 35.23 this morning.
we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. >> maria: welcome back. the federal reserve decision to raise interest rates by quarter of a point having immediate effect with crude oil. phil, good morning to you. >> phil: hey, good morning, maria. yes, oil was a conondrum. she didn't understand why prices were falling and she was shocked. ricing interest rates mean a stronger dollar which is a negative for oil and at the same time there is some expectations that if the u.s. economies slows a little bit the demand for oil will fall. look at what drove oil yesterday. was that incredible building crude oil supply over 5 million barrels yesterday. that blind sided yesterday.
8billion was in the gulf coast of the united states mostly from saudi arabia. they are dumping oil in the united states like crazy. you think with all the oil and prices would be below $2 today. not yet. california prices are staying high. one reason is they can't book tankers to get gasoline from the gulf coast to california. the reason is is because india is buying all the gasoline they can get all their hands on. they are booking all the tankers. >> maria: all right, phil. thank you so much. let's take about oil. dagen and i have been conversation. >> gary: what would have been expected a year ago if we had predicted this was where the price would be it was going to help the economy, retail sales, we haven't seen any of it. the funny thing about energy, i just want to go back to janet
yellen yesterday, she did make one forecast, she sort of said, we think it is the bottom in energy prices. she basically -- >> maria: why is she making that prediction? >> gary: she wanted to make earlier this year about bio technology stocks. what's happening right now is technical but, again, when i think about the fed raises rates yesterday and forgetting everything else, it's amazing to think what is happening to the price of crude oil and you're raising rates into this. when you think about the fed tightening you think about inflation and energy prices going up. here we are with a massive correction in 2015 and oil prices and the fed is raising rates. >> maria: broad economy is fragile right now. we had the fedex numbers yesterday and the revenue was a beat. but we were interested in the
numbers because it's very much indicative of what's going on right now. >> dagen: what happened was they tried to raise -- they raised prices on larger packages trying to get shippers to send smaller items and it didn't really work that well. people were able to absorb price increases 10% of packages are home deliveries are oversized packages. >> maria: kind of company that would be a beneficiary. >> gary: it's not the retail is expanding, fedex and ups are benefiting. >> dagen: but even wal-mart online and target online. >> gary: overall is not expanding. so the numbers stay stagnant.
more goes to online shipment and the benefits. >> maria: and the revenue expectation. gar gr if >> gary: you would 4-5% growth possibly and you would see top-line growth, but everything else being equal, yes, fedex has been beneficiaries here. >> maria: 5%. >> dagen: this was a hot -- certainly a highlight. we were talking about it yesterday. it says that the holiday season is not going to be horrific based on -- for some. ups has been struggling more than fedex in terms of trying to manage the heavy package volume this year. >> maria: we want to watch financials. the banks up 5%. a lot of people were expecting that investors would get piled back once feds started raising interest rates.
[laughter] >> gary: the thing that everybody was waiting for for the fed to make the move was the interest margin, whether the banks will bring it to the bottom line will be a good question. >> dagen: you saw wells fargoment -- fargo raising rates. >> maria: take a short break. coming up. the end of an area. stay with us. we will be right back. ♪ ♪
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maria: welcome back, is thursday, december 17th. dagen mcdowell, and gary kaminski, top stories first at 6:30 on the east coast, we have lived off, the federal reserve raised interest rates after seven years of being in zero, janet yellen and companies planning the move reflects confidence in the u.s. economy. with one layer of uncertainty moving to the markets global stocks rallied across the board, out near the into stocks this morning, the dow climbing 200 points, expects to open 84, 11/2%, the s&p and nasdaq looking for error. market's rallying as well on the fed decision. a major averages of better than the one.5% across the board, the dax index in germany of 3/1/4% lead in asia the gains close
there as well, shanghai composite of 2 prison, nikkei average in japan 1.5%. defense secretary ash carter, faces through me this morning. the pentagon saying they discontinued the practice that this could be even more problematic and hillary clinton's private use of e-mail, the pentagon is one of the top targets of international hackers. missed opportunity in belgium, the had the opportunity to rest lakota terror attacks. newest class of hall of famers announced, steve miller among the artists in the 2016 class, they will be inducted into the rock-and-roll hall of fame in april, ceremony in brooklyn. take a look at markets futures point to a higher open after the federal reserve finally ended a
decade of zero reads. the chief equity strategy, good to see. i know you predicted they will raise, you were on the air yesterday, was your take on this? >> the quarter point hike, we are fine with that and we thought the market response would be stocks would at rip with the market at 2,000, we felt a move up to 2200 was possible, we got 4% of that in the first three days of the week so we think the market continues to go higher over the next the weeks. maria: why did the market rebounded news? >> investors were fearful of the fed hiking for the first time in nine years and cooler heads prevails, wait a second. if the fed is tightening policy doesn't that mean they are confident enough the u.s. economy is healing to walk without the extraordinary
accommodation and freezing better things. >> on the economy yielding -- -- there's a bus coming. >> we have an economist. why should anybody reflect back on a last five years and they did raise rates based on an economic forecast and think the fed will get it right this time when they haven't predict a recession. >> it is a perfectly legitimate question. growth will be stronger every year than it has been.
there's a perception in the market that the fed knows more than the market knows and i think though less -- the lesson of the last decade is we are walking around in the dark. dagen: of 4 of them, they talked to a group of bodies and all talk to one another and people in the academic world and don't talk to enough people on the outside who have descending opinions. the point being there was not one dissenting decision yesterday. >> i will make two points the thought that. one is this phrase humans and -- dagen: that is -- >> they have a problem, when they talked to guys on wall street, they get attacked for being too close to wall street. dagen: richard fisher was in touch with businesspeople and it made am smarter and more in touch with what was going on and that is why he always was the
president of the dallas federal reserve. >> probably need more people on that page, but one other point, how janet yellen got a unanimous decision. janet yellen is the big winner, a great september and terrible december, great good jobs numbers, went into this thinking she could get some dissent from the people working down the hall, everybody was on board and the market rallied, it was telegraphed pretty well and in this was after they fumbled the way they handle things in september. there was a lot of confusion when they didn't move and she was not talking for two months. i think she walks out of this experience with the stronger hand. maria: what is most important is what the next year looks like in terms of federal reserve increases. it is pretty indicative by her commentary and move this then
they will be gradual. what does 2016 look like in terms of interest-rate increases? >> we agree with the fed that it will be gradual. we expect three more quarter point heights, the first three presser's. 1% by the end of september, we think the fed then pauses, how does the market and economy respond? they want to leave a little room for the election in november. >> stocks were ripped after the announcement the fed is saying they believe in the economy. john disagreed, everyone is taking a guess. i see the way the industrials trade. i look at many energy stocks and what happened lot of companies. a lot of stocks paying dividends and they are saying we're in a recession next year. who has it wrong? >> we are not in a recession cam. the industrial sector. >> you think the industrials are the most attractive area of the stock-market biggest trading would be if i am taking 1 year
view obviously energy and industrial stocks are very cheap. we may not see the bottom until the first half of next year, there may be more weakness but we think there's going to be return and that is part of our thought process. maria: you don't think because the industrial sector is an economy that the rest of the economy is. >> the industrial peace is 15% of the economy. energy, the collapse of energy in crude prices down by two thirds, that cost 75% of the earnings we have seen over is that time, strengthening the dollar by 15%. energy prices are bottoming, dollar strength is probably topping. if that is right the head winds from those received over the course a calendar 16. dagen: i want to ask you a question but go ahead. >> what we have got to be looking out for in 2016 is bubbles. let's not forget the housing bubble that happened last time
took place during a fed rate increase cycle from 2004 to 2006, raising interest rates and we got housing bubble. would be a seeing is a lot of commercial real-estate, we're talking about stocks, interest rates are very low, we are talking about asset price. maria: the best of fiscal crime's, and the banks, but trying to get to this, it is interesting what the fiscal times get, health premiums expect to rise 4.1%, groceries 2% to 3%, the graphic, even dinner out would jump 3% so you have all these costs that are expected to move up in 2016. one of the reasons people and not spending money is the cost of health care. they say that the gas pump but they had more expensive. dagen: that is a reason to hurry, that is inflation. talk another decline in oil
prices but that inflation across these parts of the economy that would be in the camp of why they moved up. dagen: i want to point out quickly that something iron was speaking to people about leslie, their concern about the mechanisms the federal reserve will be using to get the rate up, to drain money to set up these rates and controls the movement. they are worried about the impact is going to have on the bank and the bank act lending. these are uncharted waters. >> they're using a whole new set of tools. it would not be surprising to see some volatility of short-term interest rates in the first few weeks especially as we get into year end. they said their confidence is this will work but they have never used them. >> one other thing. you gave a comment yesterday about the third avenue fund,
that it was a one off. a week ago and earlier this week many people in the industry deeply concerned that there were similar problems. there is a real concern about the high-yield market freeze. she said it was one of. should viewers of the program unleash funds say the fed reserve said we shouldn't be worried about any other funds putting up a gate and locking us out? >> the affected janet yellen was prepared to give such as specific and detailed answer about third avenue tells you to be concerned about the junk-bond market and in particular what is going on in junk-bond funds and junk bond edfs. she plaited down, the sec is looking at it but the fed is concerned about this being an area we could see runs. maria: the third avenue, they shut the gates people were not able to get any money and we
should point out that was nothing exotic, that is a mutual fund, third avenue capitals. the mutual fund. do you worry the credit funds will see more blows? >> we discussed this topic at our policy meeting yesterday. junk-bond says, the same conclusion, studied what is in their portfolio, this is a 1-off, and he said he and the c i notice that we would hope the janet yellen will address this topic specifically. >> i am sure you feel the same, i remember people in 2007 saying but hedge funds were one of funds. windows funds collapse in summer of 2007 was a 1-off. >> the most dangerous words are this time it is different. dagen: it gets down to people betting on oil not falling.
they levered up to bed on that or to invest in oil but they assumed oil would not fall. oil is not the same finger at housing. it doesn't mom-and-pop, is not as widespread. what hurt? yes. libya catastrophe keep you a lot of this will leverage is not in the banking system. a lot of these junk-bond and not in the banking system. we won't have an energy saver. >> a lot of the individual investors don't. >> not that many. >> they own a lot of high-yield credits. for maria: if you are happy about the economic prospects of the story -- >> we like the stocks that economically sensitive and there is an important point we haven't discussed, some of the inflation metrics janet yellen is looking at, waiver costs and employment cost index have been picking up and one thing we got to remember is the utilization of monetary
policy in, turning a battleship in the ocean, it takes six to nine quince for one half of the rate change to hit the economy, takes 12 to 18 months for the full effect eiffel. what the fed is doing today won't have a material effect until we get into mid 17. 8 change in anticipation of what they think will happen 18 months from now. maria: good to have you on a program. always a pleasure, thank you. see you soon. we will see you soon as well. have a great holiday. coming double day is finally here, star wars fans rejoicing worldwide as a force awakens makes its grand opening. back in a minute.
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maria: a shocking moment for the prime minister of spain. cheryl: this video is something else and he was campaigning in the city in northern spain when he was punched in the head by a young man. sucker punch, this kid was 17 years old on the street when talking to the crowd. people who delivered the left hook, was not seriously hurt and market was arrested but the video has gone viral. also have this for you. we are talking about safety concerns as the u.s. postal
service gets involved, grounding shipments of hover boards by going back immediately to safety hazards, lithium ion batteries. cover boards will now travel the ground transportation. finally this, a star wars or to kick things off taking london by storm celebrities walker red carpet to mark the european premiere of the force awakens, marc hamel, harrison ford and kerri fisher for the big night, complementing director j. j. abrams. >> it is a masterpiece, he really made something special on a massive scale with so much anticipation and so much history. maria: in honor of the occasion, it was lit up to resemble late light saber. there's a picture for you.
maria: we have to get this story, these are reports, we are trying to confirm at fox business. >> checking up the the price, 1,000%. he ignited a firestorm, has nothing to do, this case against him, he has been arrested and securities fraud charges related to a firm he found, has nothing to do with the pharmaceuticals. this according to the bloomberg report. prosecutors of charged him with illegally taking stock from a biotechnology firm started in 2011 a using it to pay off debts from unrelated business dealings. he was later ousted from the company where he had been chief executive and was sued by the board and that is a direct quote. maria: the board of the company filed suit against him in august.
he has a lot of enemies obviously so going after him, the securities firm has an extra layer on top of his dealings with his previous company, they kicked him out of the previous company and filed suit. the also -- is that millions of dollars in debt, always according to the report we're looking at now. maria: that video from the interview i did with him in october when he took the hiv aids drug from $13.50 until to $750 a pill. hillary clinton wanted drug prices deregulated but we know if the market works well because another company gets in and gives a similar drug for $1 of the. >> my thought is you always see things like this happen, there will be more. maria: we will be right back. ri, we can help guide your investments through good times and bad. for over 75 years,
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maria: breaking news, the ceo who has reportedly been arrested on charges of securities fraud, made headlines when he drastically raised the price of a life-saving hiv aids drug from $13.60 a colossus of and $50 up till. that created widespread criticism over that and we will keep talking about that coming up as wheat are reporting, securities fraud charges is what he is arrested for according to a report this morning and not for anything having to do with increases in these drugs. jo lin kent is here, facebook rolling out a new feature on its messenger apps that allows users to order uber. >> monetizing in a new way, you could spend money and you could
order a ride on facebook messenger on the uber, it is transportation and messenger, facebook allows you to request track and kate, it will be run from a subsidiary, facebook plans to partner with other right ailing apps as expand globally so it could include lift as well. there were 7 million active users as of june and if this sounds familiar it is, a chinese messaging apps with extended million users allows users to buy food and tickets and even in store so this is an expansion of of something that already exists but facebook messenger trying to leverage all those that messageing each other. maria: is incremental, not a new amazing innovation but making it better. dagen: i do less and less involving facebook. if i want to order something --
i just have this reticence. >> a lot of millennials feel same way, you see a migration of communication to snapchat. we will take a short break. when we come back we will recap an incredible year with the markets with nyse's president, the budget expected to pass, that may not sit well with john mccain. we will get his take on the possible deal, join us, senator john mccain coming up, back in a minute. i said you better sign it...
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oh well. luck is in the air. um... td ameritrade. you got this. maria: welcome back, i am maria bartiroma, is december 17th. with me is dagen mcdowell, wall street week host gary kaminski. we will show you taught stores at 7:00 a.m. on the east coast, breaking news, moments ago, the ceo of turn pharmaceuticals reportedly has been arrested on security fraud. and made headlines when he drastically raise the price of a life-saving hiv aids drug from
$13.50 a tell to $750 a pill, that is a 5,000% increase, he recently acquired another pharma company, those shares are halted on the news. we have liftoff, vedder reserve raising interest rates kabul seven years of being near zero. janet yellen, chairman of the fed said the move reflects confidence in the u.s. economy in her post decision news conference and was one layer of uncertainty remove from america's global stocks rally, the dow climbed 200 points, take a look at where we are today, we have an indication we will see a higher opening for the broader averages, the dow 1/3%, 64 points, overseas markets rallied on the fed decision, european markets of this morning between the one.5, and 3-1/4%. in asia overnight you have the shanghai index, in china of 2%, the nikkei average in japan 1.5%, the rest on the upswing. -carter facing scrutiny is this
morning after it was revealed that he too use private e-mail for government business. the pentagon says he discontinued the practice but this could be poor -- more problematic and hillary clinton's use of private e-mail, the pentagon is looking to become targets for international hackers. more on this story coming up. freddie gray's that treasuring it protests in baltimore. jurors were dreadlocks him all four accounts for retrial that could be set today. is easier to travel to cuba, a deal to restore has been reached, first-time in decades airlines will operate flights to cuba. back to our top stories the federal reserve raising interest rates for the first time in a decade, a key rates to 1/4 of 1%, janet yellen says increases would be gradual. markets rallied on the news and we have another day of gains on wall street. no surprise, expecting an impact
largely because you have the fed being criticized for not making the move before this. >> jon hilsenrath waited out pretty good, september janet yellen, failure, big mistake, is back, tells what markets wanted her to do and now she is the hero. the economic forecasts, rate was with this rate was economic forecasts, see how it plays out. dagen: i won $20, i'd bet on this program, that the fed would raise interest rates before the end of the year. todd morrill woods made that bat. it was made before the market volatility in august but i stuck to it even though everybody turned, i got lucky. janet yellen is firmly in charge, jon hilsenrath talked
about that, she had serious problems with communication in august where remember you had bill dudley, at one right after the other, seemingly contradicting one another about what to do with interest rates and janet yellen had a come to jesus moment in d.c. and said this is how we will telegraph and communicates and she got everybody on board with this. the thinking right now is the fed will raise again in march or april. according to the fed gospel and what they put down in terms of their expectations. it is all about the data and that is what the fed keeps saying so it depends what happens with the economy. >> was this third avenue fund with that went off -- if i told you -- if i told you that a 1940 public fund owned by retail investors, mutual fund was going
to get the money out with in the same seven day period, if i told you that your guy you might have said no way. maria: they got the money out, close the gate, you were not allowed to take money out. >> they made a determination. >> when have you seen that happen to the mutual-fund. that doesn't happen. dagen: especially when you get don't permission from the sec before hand. >> in the prospectus which nobody ever reads under various circumstances they have the ability to do this but nobody who bought that fund expected to the gate gated out if they wanted to sell. maria: will then open up to more losses in credit funds? that is the expectation. the hedge funds, a couple hedge funds have already blown up. they're having a horrible year, we know that. >> publicly traded leveraged loan funds, bank funds out there, not that they own bad credit but we are seeing and
everybody is seeing a reassessment of what is liquid and what is not. dagen: i will add this, after the close of trading tuesday the three month return, there was not one high-yield mutual fund that had a positive return of three month which to janet yellen's credit and if that's credit they're not in the business of rescuing people who made stupid decisions. people were betting, where it on interest-rate risk and not worry about credit. >> how about hedge funds? dagen: i am tired of people pointing their own mistakes pointing to the federal reserve saying they made me do it because we went down that road and they got bailed out by the government. >> handful holes and mutual-fund, how come hedge fund had a horrible week? >> they made a lot of macro bets, big position bets. >> they missed the oil call. >> is this going to be the year, next year, 2016 is going to be
the year people reassess the idea of having money in an alternative platform that is not liquid, for what has been a disappointing performance? of the markets are very volatile and next year is down year the hedge funds will provide the upside. that is what investors hope. maria: that is what they told us in 2015 as well. >> they said this would be the blow away index. >> they said that until a couple weeks ago. dagen: of that oil, is related to the bad call on high-yield. the energy bonds are the ones with something in the bed but those knock on effect of cheap oil -- >> janet yellen told you yesterday energy has seen the bottom so she told you yesterday this has bottomed out. maria: breaking news the ceo of tearing pharmaceuticals has been arrested on charges of securities fraud. team made headlines remember back in october when he
drastically raise the price of that life-saving hiv aids drug from 1350 -- $13.50 a bill to $750 a pill. he was poster boy for being a profiteer and there were no other hiv aids drugs on the market, he raised the price by 5,000%. >> i think it is -- we really should bring the charts up if we can because what happened was he got involved with this company which was shell, they failed, had some cash, he got involved with this candidate traders took the stock up tremendously over four five weeks but this stock has had are a massive move and a lot of retail jumped on this with the expectation that it was going to do something similar in
terms of raising prices and the stock has been one of those talked about stocks that has gotten chat rooms extraordinary. dagen: what he did with the price of the drug and the amount of media that he did, he clearly enjoyed being in the spotlight even though it was negative. >> at stock ran from the one dollar -- he got involved and the stock went from $1 up into the high 30s and you could see what happened. i think it is halted right now. he has a tremendous amount of the public that bought into the stock between november -- dagen: charges of securities fraud has nothing to do with the fact erase the price by 5,000% on that hiv aids drug. was visibly a securities charge. dagen: taking stock from this biotech firm that he started in 2011 and using it to pay off
debts from unrelated business dealings. basically this suit kind of mirrors federal prosecutors mirrored the suit filed by the company's board against him. basically running a shell game after his hedge fund lost millions of dollars but my point was he is out there loving the even negative limelight. over and over just sucking it up. so you better make sure you are operating everything. when you get that attention for raising the price of drugs you better make sure all your ducks are in a row and everything else you do. >> it is a classic even with the irs, you attract too much attention, you win survivor for example you are out in the media, the irs will dig fear your finances. dagen: lawmakers expect to vote on the one.one trillion dollars spending bill by the end of this week, blake merriman is in
washington. >> reporter: two massive measures rolled up into one expected to avert a government shutdown. congressional negotiators agreeing to a $1.1 billion government funding bill, along with $600 billion in tax breaks. republicans will be able to point to delays of the medical device and cadillac taxes with obamacare along with allowing small businesses to write off $500,000 in capital costs. victories for democrats include making permanent the child tax credit and turned income-tax credit from the president's stimulus package. perhaps the biggest change comes from within the energy sector. the oil export ban has been lifted will be for the first time in 40 years. newly minted house speaker paul ryan called that a top priority for republicans. >> the know what that does for our foreign policy, job creators, what that does infrastructure, it is huge. it is permanent policy that is
good for american foreign policy, good for energy, good for jobs. >> concentric democrats, wind and solar tax credits received a boost, the white house has backed the deal. maria: we will keep watching that, we will talk with john mccain coming up. john mccain has thoughts on the spending bill and is joining us in the next hour to talk about it. before we take a break we want to show the biotech company, you mentioned stocks plummeting in free-market. >> trading down 50% pre-market so clean and the, again, there has been to a tremendous amount, trading 50%, not showing on the chart pre-market. maria: 5% decline was yesterday. you are telling us now that this has been cut in half. >> we are seeing active trade in the pre-market of 50%. i believe he is ceo of this company. after he took control of it back in november. maria: take a short break, hillary clinton not the only government official using
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cheryl: the pentagon saying defense secretary ash carter use of personal e-mail account earlier this year to do some government business during his first three month on the job. the pentagon spokesman peter cook saying he believed it was, quote, a mistake. cook declined to say whether was a violation of pentagon e-mail policy. hillary clinton is being investigated for doing this exact same thing when she was secretary of state. this is a minnesota mom who nailed this basketball shot, you go, and lady, she earned thousands of dollars in school tuition for 9-year-old daughter and a social media thing. dagen: i don't know about that. >> i want to pick up breaking news, we return to get more details, we just found out about the ceo of tearing pharmaceuticals, a reston securities fraud, he was arrested yesterday, he made
headlines when he drastically raise the price of a life-saving drug from $13.50 a bill to $750. obviously this is one of the most hated. and in america which he seems to enjoy wide but congress goes after him, he says i will lower the price of the drug, didn't do it and now he is arrested for securities fraud not related to the drug but may be no surprise to everyone. >> is not related to anything but this was a stock as we pointed out is don't buy tremendous amount of retail public. he took control of this company in november. and trading of round $11.80 pre-market. >> this is tied to the head fund he has been with. that is the report this morning.
it doesn't exist anymore, he brought in new pharmaceutical company that was pursuing him, he was trying to cover his bets. >> we have not heard yet from martin shkreli so we don't know. >> he started his career -- he was a hedge fund when he started his career, he worked with jim cramer at his hedge fund before he got into being of pharmaceuticals ceo. >> we will stay on it. maria: i think we will leave it there. thursday night means football but a bidding war could change the gridiron. back in a minute.
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maria: st. louis in football, a new home. cheryl: with details. >> happy thursday, long standing structure of how we consume sports on tv about to fall, house of cards and digital science, could be streaming morrison movie's lead the nfl is ready to point to bid to broadcast thursday night games sending requests for proposals
to the usual tv partners but several digital companies. google, yahoo! amazon, netflix, a with the intent of streaming of the first night schedule, 16 games during the season. the package is don't buy cbs which produces all telecasts, even the eight game shown exclusively on the nfl network like the bucks and the rams. jenna, executive vice president of media brian said we are talking to numerous people from traditional media companies and internet guys and i think there will be heavy digital component for thursday. it is just a question of what the model will be and how we will do it so it looks like times are changing. yahoo! was the exclusive provider of a game played in london, paid $15 million for the rights to show the game. company averaged 2.4 million
viewers at any given time during the of football game. times are changing in the broadcast world. very interesting. ray dittinger earlier this season and the game from london, they said the screen is pick the leading. have we become a spoiled society. maria: we talked about it then, this was a cute thing for netflix because netflix has been friend and foe but one thing it has done is duotone sports and this is one of the big changes and impact to the traditional. dagen: to you think the nfl wants to keep these gains and additional broadcasting? and espn? >> at least a start that this would be a situation where games would still be shown on the networks and also be simulcast on a provider, yahoo! had a game from london exclusively. there might be various online platforms and advertising would be the same but the whole set up is if you are doing two different ads you can charge
more for what is on television and a whole separate -- dagen: netflix is coming. >> google and youtube people will be more surprised if it doesn't show a football game in the next several years than if they do. expectation is will they have the money and they will do it. >> when they will we be buying stock in google sports? makes you wonder. dagen: i love how you said yahoo!. you say yahoo!! just funny. maria: up next long-awaited fed rate hike is here but how will it affect you and your money? we break it down when we come back, stay with us. announcer: a horrific terror attack in paris. then, a brutal act of terror here at home.
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coast, this morning, breaking news, fox news network are kwefrj this morning, martin shkreli ceo of at youring pharmaceuticals cal pious arrested object charges of securities fraud shkreli made headlines drastically raised price of a live saving hiv/aids drug from 13.50 a pill to 507 dollars a pill. kalobios shares halted on news but now they are trading down 50% in the premarket that stock is getting crushed, he is ceo of that company as well. we have liftoff federal reserve raising interest rates after seven years being a hero janet yellen explaining the move reflects confidence in the u.s. economy post decision news concerns one layer uncertainty removed from market globe statics rallied big time the dow jones industrial average claimed more than 200 points yesterday another rally this morning, dow jones industrial average to open up 65 points nasdaq s&p 500 frirm gains in europe as well this morning, across the board, gains for european
indices and gains in asia overnight as well ash carter facing scrutiny after revealed he used private e-mail for government business pentagon,saying carter has discontinued the practice more on this coming up, russian president vladimir putin getting end of year news conference referencing preponderance presidential front runter tumble saying tifrp wants new level relationship with russia we welcome that. >> that an enodorsment of trump. >> take a look at markets a higher opening for the broader averages after federal reserve lifted ferry first time in a decade where i in marion right now head of merrill lynch welcome management portfolio strategy with citi head in a economics bill lee thanks for joining us, fed raised rates expecting it, now what? >> now that the question is the new game his fast will they move telling us very
gradual, so gradual seems to vary on wall street, i think gradual means 1% by end next year 1 1/2, 17, 2345ib by end of 1918 a quarter of the pace of -- 2018. >> does it bother you everybody is saying that now, now we all expect 1% by end of 16 all expect gradual, mean, what is it? >> the consensus trade is really crowded and i think it is covering up a lot of distortions in the markets the markets reacted to bad plea to volatile because we have been zero for so long fed essentially blowing the when i feel saying stop doing misallocations get back to mandates you can no longer biogo to high needle -- i this i the adjustment the market got to do. >> what does might want for markets. >> in very near-term this is the most announced fed rate hike, and the market priced for it, and probably overpriced for it why especially on equity side getting this massive rally, i think that rally can continue,
into next year but we're going to have to pay attention to earnings thebred of the markets, you know hire interest rate environment if you can't get earnings, that becomes problematic and if you can't breathbredth in the market a problem relike markets think they are better valued than bonds, but we are getting a little bit defensive high quality balance sheets over lower quality balance sheets we want liquidity overleverage. >> you made an interesting comment you heard him say the fed is no i he telling you, if you should be in corporate bonds, instead the k of high yield bonds now go back -- so -- if i am watching this program, i bought a junk bond fund because i was chasing yield, because i had to chase yield, what do i do now fed giving you a break tell i moving rates gradually you've got time to either go out of allocations get into something more reasonable, in terms of risk award you can't wait
forever i think the trick now is how fast will people move if people move too fast market making ability of market makers has been cut back so much by dodd-frank regulator chaenthsdz i am concerned not enough liquidity to let all people get out. >> the word year using episodic kind of new extreme volatility when you get crowded positions, and kons traitdz don't have a lot of liquidity you get violent moves quickly what we saw in august biotech had volatility, crowded, fast-moving, and then completely reversed out what we are warning 2016 we expect kind of the same thing volatility is going to continue. >> in fact not volatile you can manage by risk managing a derivative it is gap risk, gapping all over the place you don't know when gaps occur, jumps, so unexpectedly. >>.
dagen: you can like on the overtruded trades -- what are those because we know there are problems, in high yields particularly, with the energy relate high yield we know 57b quite frankly third avenue fund that milligram doggone well knew he should have been better prepared for outflows they didn't manage it will had to shut gates. >> interviewed by zero rates compressed spreads killed mechanism for laekting risks now fed trying to normal looidz rates we hope spread widen as they should, she reflect the underlying rivengs nonfinancial corporate sector now ratios -- levels -- >> if i was a a day trader i would have been terrible i would have found yesterday afternoon wrong traders who have tremendous respect for said yesterday's action maybe
even today's action is more about tomorrow's expiration and how some people were positioned for stock market to possibly go down s sell on news that yesterday today and tomorrow is not really reflectings of a major change of allocation, because of the fed what was your read yesterday? >> well i think the market had already positioned for the fed, and we have a quadruple expire on friday. >> expirings futures opposites contracts at once. >> -- a lot of -- >> and you are going into the end of the year so you have a lot of people a you know, squaring their books, but seasonality wise this is we're going into the strongest week of the year. >> yeah -- in terms of what have? >> when we look at every month december is the best performing month as we get closer to year end, the snldz get more and more positive. maria: right. >> we're moving into a very strong period market had gotten extremely oversold, a lot of short positions wound
up having to be forced that is farther of the cover, so the seasonality is here can carry into january then we have to look at fundamentals getting back to fed there was a lot of volatility around qe, a lot of certainty around qe because he had never seen it before now we're going from you know, zero rates starting to normalize interest rates we haven't done this since the 1940s, markets having hiccups as we do this. >> quick because the global slowdown was missed by a lot of people, in 20150, everybody expected the fed to raise much sooner because of the economy was going to turn around is 2016 more about global slowdown or things getting better and not talking about global slowdown as much. >> exactly one of the greater source the global slowdown we are callings for 40% probability of global recession led by china emerging markets in order for it to affect u.s. has got to come through exchange rates u.s. trade shows too small to be vulnerable to changes but
if each starts to retake their money back to u.s. the dollar can kill off u.s. economy 10% can knock off 3/4 one pfrnl point off growth. >> one thing focused on in that regard. >> watch for where are capital flows go if money coming book to u.s. rapidly i appreciate dollars going to be downward drag on u.s. economy. >> good to see you always a pleasure, by the way, your son congratulations. wow. fantastic. >> thank you. >> due to the director david o russell my son a special-needs child david has have a special-needs child, and ep was kind enough to have my son in the movie and very good at promoting his consume in connecticut, saved our families our children. >> see joy. thank you, facebook team up with uber tell you how social network plans to change the way you call a bab, bacab.
cheryl: that is right thank you, prime minister marianna was campaigning in the city where he grew up in northern spain when punched in the head by young man you can see the punch happening here on this video, he was bruised not seriously hurt we should say, and the young man was arrested after this attack. also this story for you this morning, netflix is out with a how to guide for making stocks that will automatically pause your show when they detect you have fallen asleep, yeah, the device pauses tv when you top moving a period of time, the trick maria, you got to make the -- yourself not kidding here go to netflix check it out make your own. >> put a sensors in the socks. >> basically. >> you got to do that yourself if you don't sew -- >> all we're doing nothing now
don't wake ourselves up, thank you. >> socks? >> facebook rolling out a feature on message app with uber. jo ling: back messenger lets users ask in uber app run by brain free facebook plans to partner with other apps as it expands globally, 700 million active users as of june lucrative move for both, a proton strategy in china 600 million euros allows user to do exactly that in purchases like buying tiebts hailing taxis ordering food the big question what happens next with a back to platform as well will we see more e-commerce there. >> thank you so much campaign trail we go hillary clinton getting warren buffett endorsement yesterday as he clinton ramps up push to reign
in wall street you spoke with jeb bush on set of wall street week what he had to say about what seems a contradicts. >> it is being a for her to get speaking fees and attack the banks, here is a deal, i mean i heard it all the time, in my previous life she is just saying this to get elected, the standard drill that you hear from people who will give her money to give a speech, she -- maybe some point you have to believe what politicians say, what she says -- >> you looking forward to debated her. >> absolutely. >> interview broadcast sunday on wall street week. >> chatting about the irony about warren buffett also backing hillary clinton that is another story int the irony about the fact she received the report 21 million dollars, in speaking fees over a period of time from various wall street financial service firms. maria: wow. >> now gone out and attacked
very weem day in, day out as recently as last night, and look, i have for the k disclosures retained by one fund to intu her at one of these events nice answered a lot of questions i enjoyed doing it talking to her, but the thing is that. maria: the speech that you interviewed her. >> i think 250. >> 250 a speech, why is it that nobody in the mainstream i wouldn't do even gets on her for this like gets the pass, it was nice to hear jeb bush at least address that say as he points out on the show broadcast on sunday, this is a major -- hypocritism going to be on as related to this. >> hypocrisy unbelievable i love buffett rule the buffett rule but buffett doesn't get impacted even though --
>> you know. >> the the second richest map in the world. >> he the buffett rule count of take ordinary income, so he is all his wealth is in stocks, so he doesn't have to pay higher taxes. >> back in the past maria as you know, another business channel i called out buffett he did a transaction looked somewhat favorable on a tax scomrooz you had to apoll jooid. >> no, i did not apologize. >> he wrote in asked for apology i refused to do. >> why did you refuse to apologize to warren buffett. >> because the fakz were what they were the faction were what they were loaf eave it at that we talked about fact buying back stocks in favor of buying walk stocks he doesn't like companies to do he correctly pointed out in one annual report he said under certain circumstances was in favor of buying back stocks leave there it call charlie
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. maria: welcome back, big names you know coming to market on new york stock exchange this year, fitbit go, daddy, square, ferrari, in 59 ipos this year companies raised more than 19 billion dollars in follow the proceeds joining me is nyse group president tom, great to have you on the program. >> thanks for having me back. >> how do you spell was 2015 characterize if the year.
>> four companies fun ipos ipos meet management teams three of four i know are trading 40% or up, in the after market, so -- we didn't just have a good time but -- >> people made money. >> also good companies. >> you move to see that i feel the first half of the year was fantastic in terms of ipos, something happened in the middle of the year toward the end of the year, that turned things a little bit of a freeze what happened. >> we led the world in capital raising like i said a lot of great companies come through, the first half of the year really through august was busy hectic as many ipos as in a typically year even a big year going back to 2013, we were slightly ahead of pace, from that year which was at that point a record year, but then in latter half of the year ipos o spigot turned off, and reasons for that several, but volatility in the market was significant. and attributabling greater volatility you see fewer ipos but also in general there is a lot of uncertainty about the fed, uncertainty about the
federal government would have continue to function so the fourth quarter, included the fewest number of ipos, of any fourth quarter in daibd other than height of the financial crisis. maria: there was because there was so much incoherent about what was going to happen with capital markets wahs we didn't know what was going on with fed you saw layoffs in capital markets, businesses, from the banks, what does the fed rate increase yesterday mean for the next six months. >> i think very good, i will tell you why i say that when i talk to leaders of companies, about hey what would you like to see in the economy that would help all those, they all say certainly give us more clarity, and it is not just fed announcement it is oil exports like i said will government continue to function, i look at announcement yesterday it was a good deal certainty a little bit of surprise a little bit more hawkish than was expected at least the leaders and investors making capitallocatio
decisions. maria: not that i remember i ask you about volume i want to ask in temples of what you are expecting enter continental exchange new york stock exchange as much about volume as now about data let me ask you about that because the apparent company nyce acquiring idy expecting nup trading bits to account for 60% revenue majority attributable to market data a lot of market data what is that going to do for you. >> we are beneficiary of big data trends, everybody is able to process, such large amounts of data now, if you are not processing that data you are loving. you are not able to make informed decisions. and so, our investments in data are really a recognition of that trend date is more valuable, a big part of what we do already, provide data for equities bits for futures business for credit businesses, adding from idc something commerce were --
projecti priming for. >> data part lower margins than volume what you would see in the other part of the business, so it certainly is filling a hole in terms of giving i more information, and help for your clients. but at the same time, the mix shift seems changing a bit at. >> it is, the mix shift is changing, data businesses are very valued by investors you can projection out with high degree of certainty growth profile of is pretty attractive as market pro vile. >> what drives new york stock exchange volume in 2016 what do you look at the end of the year was another issue volume slowed down right. >> volume has been fine. >> it has been? >> volume, and what you get tickle almost axiomatic as volatility increases so to volume but ipos go down we are he hedged a little bit volatility goes do i want ipos will go up inverse i also true, so no.
volume has been terrific we've had a great year i actually when you asked 2016, i am not sure what to expect because historically in a rate tightening environment you have heightened volatility, you have heightened trading but we've seen that even in advance of the environment this dime could be different difficult to foreclose what volumed will look like next year. >> regulation one of the main issues that investors are looking at, what are the big changes that would affect the business next year. >> well, if i rise up to the parent level i think dealing with new regulation around the world dodd-frank in u.s. followed by amir dog frank like regulation throughout the world when i come back to day job running new york stock exchange, our focus is on similarfying equities markets so when i am speak with chair white commissioners sec staff regulation what with an we do to sometime fly equity marketsto complex
fragmentation,ive a number of regulations that are in the works whether it is the -- pick pilot i won't go touch debris nuance pick pilot, more transparency with respect to xainlz ats's report trade all could be beneficial to the -- end user. >> asset managers as well rules on the table for asset managers coming out of the department of labor. >> exactly. >> i know that so you are expecting a good year in 2016. >> i am expecting a good year in part because we had 20 ipos including many larger ipos larnlz ipos planned for the year that pushed because of the volatility so coming in next year i look at pipeline it is healthier than any point last several years, so, it is time to, signs are good i don't want to to make predictions. maria: great stuff good to have you on the program. >> thanks for having me. >> president nyse next hour senator john mccain with me
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maria: welcome back thursday, december 17 i am maria bartiromo. 8:00 a.m. east coast fox biers are confirming martin shkreli ceo of turing pharmaceuticals and kalobios has been arrested on charges of securities fraud shkreli made headlines drastically raided price of a live saving hiv drugs from 13.350 a pill to 750 dollars a pill. kalobios shares halted on news but now, they are plummeting in premarket by 50%. in premarket trading. we have liftoff federal reserve raising interest rates yesterday after 7 years near zero one layer uncertainty removed global stocks rallied dow jones industrial average up more than 200 points yesterday, today, we are looking at a gain about 50 points should point out the market has come in, quite a bit this morning, futures were showing a gain about double
where we are right now, still expecting a gain we are off of the best levels of the morning, defense a check ash carter facing scrutiny it will was revealed he used private e-mail for government business he apologized admitted mistakes. >> what i did, i shouldn't have been doing until a few months ago, was occasional used my iphone, to send administrative messages no classified information backed up as records, but to my immediate staff. and even that i shouldn't have been doing. maria: meanwhile, russian vt vladimir putin end of the year news conference specifically researching are republican presidential front-runner trump saying trump wants a new level of reegs with russia we welcome that according to putin lauchl expected to vote on 1.15 trillion-dollar expending bill by end have had week into next year floirl
avoiding government shutdown blake burman on this in warrant right now good morning. >> maria good morning to you, two massive measures rolled into one expected to aelevator government shutdown, congressional negotiates agreeing yesterday to more than 1.1 billion dollar government funding bill along with a 600-billion-dollar tax break measure as well. republicans will point to delays of the medical device and cadillac taxes in obamacare allowing small business to write off up to 500,000 dollars capital costs, victories for democrats including making permanent the child tax credit, and the earned income tax credit from the president's stimulus package, now i just spoke with the headed of the house small business committee republican congressman steve said tax bill brings certainty. >> a lot of tax, benefits or reductions that we've seen not permanent so people couldn't plan on them in this agreement, is not perfect, but it is an improvement, people
are going to be able to rely upon the tax rely in the past. >> ratepayers able to get the oil export ban lifted as a part of this overall deal, the white house says it will back the measure. >> blake thank you blake burman next guest has expressed frustration with a provision in the spending bill that would remove existing ebb restrictions on purchase of russian maid robot engines joining me is arizona senator john mccain good to have you on program thanks for spending the time. >> thanks for having me back. >> tell me about this russian rocket engine provision, and why it is so bad? ofch. >> well because it gives tense of millions of dollars to vladimir putin, and his cronies, that has been various studies news reports a lot of money is going to vladimir putin's cronies, shell organizations that pick i want money millions along the way, and most importantly, we
should not be dependent on russia, for rocket engines, and it is not necessary to continue up -- unrestrained purchases the senator from alabama senator from illinois headquarters snuck in this provision, in this huge bill, in the middle of the night. they had plenty of opportunities, to -- to attempt that when we were doing the bill, last weeks that it was on the floor defense authorization bill they didn't they chose to put it in in the the middle of the night, in a fashion that i find totally unacceptable. >> i don't understood snuck it in so odd they snubbing something in behind everybody's back. >> here is how you do it -- behind the scenes negotiations, on omnibus bill, remember this is not a defense appropriations bill it i is ominous bill we didn't pass individual appropriations
bills, so when the authorization bill is on the floor that is when you have amendments when you have debates, that is when you have votes. we had over 120 some amendments considered, they didn't try it then because he they knew they won't succeed then put together this massive trillion-dollar bill in secret behind closed doors just a few of them and entered tinserted i without vote without debate without discussion that is not acceptable. >> senator shelby did this without confronting you discussing this right? and senator durbin? >> they had plenty of opportunity can when defense authorization bill which is the proper vehicle not appropriations bill the appropriations bill only supposed to be for money authorization is what makes policy. this is the classic reason why americans are fed up with washington. >> what are you going to do now you going to sign this bill or not are you going to not sign it? >> what -- >> i will not vote for it i will not vote for it.
because there is also, by the way, two billion dollars worth of medical bailouts for different medically reasons put on defense appropriations why it has no place. >> you will not vote for it does that mean that the idea, that we could have a government shutdown is back on the table? >> i don't know what is on the table we can go back and take those provisions out, easily enough. >> right if it means goost shutdown will you still not vote for it even if government has to shut down? >> -- we're not going to reach that point i do not -- no one wants to shut down the deposit maria. but i will not vote for legislation that provides tens of million dollars to vladimir putin and croppies i don't do that i don't understand vladimir putin how so strong pushing u.s. out of way in terms of air strikes over syria, and yet administration seems to want to do business and trump's putin. >> the most remarkable
comments by the secretary of state john kerry, that i have ever heard in my life, now we don't have to get rid of bashar al-assad everything fine with rushance going to work together. it is the pandering to vladimir putin unlike anything i have ever seen any president you have to go back to neville chamberland in munich to see this pandering we are seeing towards vladimir putin. >> extraordinary, actually did you see earlier day or yesterday putin mentioned donald trump said he welcomes donald trump wants better relations with russia we welcome that. >> a matterch made in heaven. >> a match made in heaven putin and trump you mean. >> absolutely i can hardly wait. >> senator, look you put together a bill that would require the department of homeland security, to scour social media web sites i've got to talk to you about this any indication of terrorist, first of all, what about the steekt strategy coming out of
the state department, over the last seven years, basically told their agents when you are vetting people coming into united states do not look at their social media, can you explain this? >> i cannot explain it, it is old political correctness, it is the -- it is a bureaucratic approach it itself -- it is -- it is kind of classic example of the way this administration and state department does business. to not look at social media where we know where the -- the jihadists do a lot of their activities is crazy, by the way, we're going we now find out that there was encryption used in some attacks, we're going to have to look at that issue as well. and i know that silicon valley doesn't want it but if they are able to use, safe sites in order to recruit train and orchestra attacksony states america we better do something about it.
maria: important point let's talk about what to do about it the technology companies say it or is data we are going to hold on to that data, you know, we can't just give off user data, now there is a point to that, you know that senator, i i mean it is a slippery slope what is government looking at government have access to in terms of those of people's private property what would you like to see, in terms of of the government doing with technology companies, to ensure that the fbi and lawmakers investigators can better track terrorism? >> as you know, with encryption individual haskey to get into the site i see nothing wrong with a key being spied to the justice department that would require a court order, before the government would be allowed to use if it they are he if there is suspicion activities that would warrant such a thing it would require a court order that is i know strenuouslyly resisted by silicon valley, but theft got to come up with
a proposal, that changes the status quo where someone contacts isis immediately sent to secure site, we've got to combat that maria there is too much of that going on. maria: really extraordinary so dealing with two issues on one hand not even looking another social media first of all, i mean anybody who applies for a job, that employer is looking on social media, to see what that person said, you don't want to -- you google the person the basics then on the other hand, we have data, but encrypted we don't know what data says technology companies have not been able to encrypt the communication. >> first of all, all the president has to do or state department, or actually should be the president anyone applying for a job day look at social media end of story. then but then when we get into whole encryption issue, there has got to be a debate discussion, but the status quo is not acceptable, and i believe that silicon valley
has yet to accept that fact. >> who was right on this the other night in debate we had that debate where senators cruz and senator rubio, were getting on each other, and going at each other about this, because i guess senator cruz had -- had signed a bill basically gave the nsa less power, and more power to users who didn't want information shared. >> you know, politicians sometimes -- wet vein a bit at that point it was senator cruz rand paul senator lee some others, and democrats that because of snowden wanted to make sure, that none of these things would happen, and that they wanted to make sure, that the bad federal government doesn't get engaged isn't allowed to do certain things, and that is why the act that was passed did remove some of the capabilities that the federal government has that is ingest a fa just a fact senator cruz can
deny all he wants facts are stubborn things. >> ruffled feathers i gis how do colleagues feel about him moving up in polls do you think he is kind of individual can bring us together, if he were to get the nomination because i know that there are he ruffled feathers what is your fake i hope ratepayers fair and honest election would support the nominee of the party what is why we are republicans i can also tell i do i not believe, that senator cruz will be elected miss congeniality any time soon amongst republican colleagues much less democrats okay speaks volumes let me ask you this let's talk about war on terror right now senator what needs to be done in terms of boots on the ground, in terms of those of our strategy? >> well, first of all, first we have to admit it is
failing. what the president is doing. this is -- we are in the worst state we have been since the end of world war ii. and thereable i tell you now there will be more fwookz on united states of america, unless something changes this president does not have a strategy he does not a have a clue what needs to be done we need to have about 5,000 or so more troops in iraq, by the way, iraqis now are so controlled by the iranians they may not accept such a thing but that is a different part of the story, we need a multinational force of arab countries, in particular with some european about 10,000 american troops, 100,000 troops we can go in and take raqqa they are not that strong, we can take them, by the way, the saudis have led a coalition they didn't tell us about to fight against the isis because they have no competence or trust in us whatsoever. >> unbelievable lindsey graham said if game chaininger
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. maria: welcome back, we were following breaking news this morning ceo of turing you are pharmaceutical cheryl casone on that. cheryl: the fbi are he were confirming that martin shkreli was taken into custody in meant on securities fraud charges prosecutors claim shkreli took stocks from biotech firm started to pay off his debts, from another company he is due in federal court later today we are following those developments watching that interview you did with him in october, also this headlined you talked to senator mccain about this russian president vladimir putin saying he welcomes presidential candidate donald trump comments that he wants deeper remediations with
russia saying of trump quote he is a very flamboyant man very talent. >> doubt about that. >> finally "star wars" mania taking london by storm, celebrities walking the red carpet to mark yoourm premier of the force awakens john, dividend ridley joining hamill ford carrie fisher for the night complimenting the director jjabrams. >> -- made -- i think he really made something special on a massive scale, so much anticipation, so much history. cheryl: in honor of the occasion about the column lit up to resemble a light saver the force with all of us starting tomorrow. maria: thank you up next following on fed what are a rate hike means for a stubborn oil sector. we'll be right back.
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every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. . . maria: welcome back, oil prices falling in wake of the fed move to raise interest rates the details good morning. >> hey good morning, maria when we talk about fed interest rate increase what do you think of you think of a stronger dollar, that is for a while trying to slow down economy that is yubl bearish for oil one of the reasons oil prices have been under pressure right now trying to buck that trend despite the fact the dollar hit another two-week high, oil prices are trying to get higher on the day only, 20 lower at this moment they've had quite a comeback this morning, it is
being driven in large part by gasoline futures continue to buck the trend of lower energy prices, they are right now they are higher on the day, and they have been higher even yesterday strong gasoline demand in u.s. especially india driving this market we saw reports, about india gasoline demand up 6.4% over a year ago, last november applying tiger -- wind yoo consuming more gas back to you. maria: fox news senior kroernt geraldo rivera joins the conversation, how are you? >> back from paris. do you think we're going to see same kind of demand 2016. >> i have no idea i will tell you this much here is what i would like to do release the restrictions on the ability of domestic producers to sell aboard of education to export oil would like president of the united states to use low prices, to fill up strategic petroleum reserve why not take advantage of 35 dollar oil
finish up strategic petroleum reserve market to anyone i want secure in tknowledge when l goes back never an emergency where we will cut off like we were, i covered the tanker in 1974, i lived through that, we will never have that excavation again, let him be the prudent buyer now in bear market and you got all the oil laying around tankers in -- renting facilities let forfeit buy it, you know on the down low, at 35 dollars a barrel fill up strategic reserve sell the rest overseas. >> at least you have agreements on both sides of the aisle in terms of ebbs port ban being lifted, in the spending oil into obviously a lot of agreement there. >> welcome, great yes what happens if the people we want to export to see their own academies we see in a lot of countries have or i in issues terms of economic growth we might lift the ban, at a time where we might not see the
demand on the other side. >> well, i mean -- as long as the commodity follows the demand that is the way free markets work, i have no problem with that. >> listen. what is happening, in the cried oil market is phil phillip made a great point stronger dollar today yes, that was the expectation of what we saw out of fed yesterday. so the fact that crude oil is down today, because of dollar up today. if you think about that, jolisticaljo li logistically fed raising rates it should have been priced in if everybody expected fed to raise rates crude oil like the stock market, should be up today, because it was already priced in dollar was going to be stronger would fed ray of rates. >> all i know is i secretly smirk when oil bottoms i think of the saw theedize, the iranians all other people wish is ill, who have for so long used this oil to have a he
dispositive important shun voluntary is. >> they are trying to force oil producers out of business doggone if probably are not having swk that. >> thing about that dagen you can force an individual producer out of business you don't -- evaporate the policy in the ground we have the technology whenever we want it to turn on that spigot be the world's largest oil producer i think we have totally changed the game, opec is now going to be an irrelevancy. >> i agree with you funny that we haven't heard that over and over and over again from president obama, how terrific our energy business is. >> geraldo one thing i think everybody agrees about that when they look at retirement accounts the fact they own a lot of big a integrated oil companies may they stayed going to continue to grow they may not be able to grow dividends we have seen cuts. >> that is the way it goes i -- gm before it went to --
>> not going to cheer 100 dollar oil -- the economy -- consumer. >> i agree. >> it is finally here janet yellen raised interest rates first time nearly a decade how it is affecting your money next it was the height that wasn't 5 million dollars in diamonds missing and reappeared, back in a minute. ♪ ♪
opening for the broader averages. we're high off the opening of the day. and we're much lower than we were earlier in the program. we have upbeat earnings, fedex reporting better than expected earnings and revenue last night and oracle also reported. joining us ubs chief investment strategi strategist. how do you determine earnings? fedex is a pretty good surprise. >> first of all, 2015 earnings we are going to have to be understanding that a lot of this is from the drag we saw on lower oil prices and headwinds from the dollar. in 2016, i think the outlook brightens. the headwinds will become tailwinds and the momentum of the u.s. corporations, we're look up 8 to 9% for 2016. maria: the fed raising rates, we do have confidence that the economy is doing better?
>> it's a validation. they can't do it until there's a self-sustaining progress, as well as labor market conditions. >> i'm looking at the futures, europe was strong and looks like we're fading a little bit. a number of people said yesterday, it was more about technical short covering related to tomorrow's expiration. is the market really relieved or maybe this was just a short-term bounce? >> yeah, it could be a one-day bounce, but i'd be careful to take that and say because we're fading off the highs that somehow that the fed made a mistake or that the markets misunderstood or misinterpreted the message. the next couple of weeks we're going to have to focus more intently on the economic data. if it starts to soften or inflation isn't making progress, perhaps the fed moved prematurely.
that's not our view. i think the fed's view about the economy is validated the next couple of weeks, but that's what we're going to focus on. no longer hammering when the fed goes, it's about the economic data supporting what the fed decision was. >> will we know by the end of january if there's a rate increase in march? >> it's too early to tell. if you listen to what janet yellen said, it's going to be conditional. they'll look at the economic data through the fed meeting before they make the decision. i said this over and over again, i think the fed pace of increases is going to be measured, moderate pragmatic. maria: next year-- >> the fed paces themselves at a more measured tone. dagen: it seems like people are missing something underneath this. we talk about the fed's raising rates for the first time in nearly ten years, but how do they actually get rates up? they have to use unprecedented, untested measures to do that
and nobody knows, nobody, not even the people at the fed, knows what the impact will be on financial markets because we are entering unknown territory. maria: especially with a $4 1/2 trillion balance sheet. >> they're not touching, right? >> this is why the fed is doing this in a pragmatic manner, why they'll raise and pause, see what the implications are for the financial systems and real economy and why this is going to be, as i said before, the fed is going to act very deliberately. the last thing you want to do is undermining the stability of the markets or economy. think about the time, energy, money that's been invested to this point of the recovery profit. the fed doesn't want to undermine that. >> do you agree if not robust, the u.s. economy is very solid. i've spent a lot of time in europe. it seems in comparison to europe, the u.s. seems like a shining light. maybe not ebulient, but why
wouldn't you invest in products and have nice margins and a stock price that makes sense given the return? >> first of all, i think your point is we've not seen this rapid acceleration, but we're seeing a broadening and deepening of the recovery profit. we're seeing more drivers. we're not narrowly getting economic growth from one segment or sector. i think it would be a moderate pace of economic growth, but i think it's going to be one that's more durable. to your point, i think there's lots of students in the u.s. for companies that have dominant market positions, have cutting edge technology and also have a competitive advantage in terms of the way that their brands are positioned in terms of demand globally. maria: really good stuff. mike, thank you for being on the show today. mike ryan. "mornings with maria" start at 6:00 a.m. eastern. take a look at moments you may
have missed from earlier in the show as we go to break. >> driverless uber, i'm down. >> why would i want a driverless uber. >> bring in jon hilsenrath, jon, i want to ask this question, i have the utmost respect to you. maria: sounds like there's a "but" coming. >> one day maybe we're buying stock in google sports, makes you wonder. dagen: i love the way you said yahoo! you said yahoo!. >> yahoo!. dagen: just funny. maria: trump, quote, wants a new level of relations with russia and we welcome that. >> is that an endorsement? is that a putin endorsement of trump. maria: scared on that one. >> we like the markets, we certainly think they're better valued than bonds. we like high quality, good balance sheets over lower quality balance sheets and we want liquidity.
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upper plains and upper midwest, several states including colorado getting more than a foot. an estimated 33 inches at one location in nevada. skiers were happy though. it turns out that nearly $5 million in diamonds that went missing from a neil jewelry store last month weren't stolen after all. some workers helping their boss move to another floor tossed three old boxes in the trash without bothering to look inside first. yeah, anyway, trying to get those back. here is one marriage proposal that didn't go exactly as plan. this guy brought a major interstate in downtown houston to a stand still to pop the question to his girl friend. he was charged with a misdemeanor. he now faces up to six months in jail. yeah, happy drivers. his girlfriend did though, maria, say yes. >> that's too much, thank you. >> you bet. 2015 has been a record year for mergers and acquisition for the deal between drug makers, pfizer and allergan.
and moving overseas, and joining us is the ceo brent saunders, great to have you on the program and when you first sat down i mentioned the forbes magazine cover when you were featured prominently. it turned out to be true. congratulations. when does the deal close? >> perhaps in early 2016 as we start to get through the anti-trust regulators and go through the process through them to get a better sense of timing. maria: is this about taxes? >> taxes are a component. everyone is smiling, but it's about creating a growth innovator in the pharmaceutical space. this will be the biggest biofarm sual cal company in the world with the biggest r & d
budget in the world and go over the medications to patients around the world. when you look at what the industry has gone through and consolidation in the industry, this powers up the new pfizer to be the leader for the forseeable future in drive and growth. maria: does it get better than this, mixing viagra with botox, the two hottest selling drugs. >> the fitness champion. maria: i love it. dagen: me, i'm not saying anything. >> where are you going to be headquartered? >> our headquarters will be in dublin, ireland where the headquarters is. >> it is a tax dodge. we're not a mailbox, we'll have 500 employees. >> you went there to beat the taxes. >> pfizer pays all of the u.s. taxes and even after the deal closes, pfizer will pay all of its u.s., at thats.
>> what we're complaining about, you're taking essentially an american company and moving it to ireland to beat u.s. taxes and doing business just as vibrantly in us. dagen: that's not their fault, that's-- >> we're not all complaining about it. >> geraldo, go to the pfizer shareholders and the stock, pfizer shareholders are crying for this because they want to see a higher return. >> this is what trump is saying, we should have a tax code that discourages exactly-- >> if i were him, i would do the same thing, but the-- >> i think one problem is from the u.s. point of view our treasury is going to be denied x amount of billions of dollars. maria: that's their fault because they won't do tax reform. >> at one point in this debate, i think is important for people to understand, when this deal closes and pfizer becomes pfizer plc headquartered in dublin, 40,000 employees in the
u.s. and spend vast amount of r & d in the united states. we won't avoid u.s. taxes. what we don't have to do is pay double tax on foreign earnings in the united states. maria: why should you. >> no one does, had he hoard the cash off shore and-- >> go ahead, dagen. >> if you get tax reform here and better taxation here, will you move back to the united states. maria: allergan is a u.s.-based company. dagen: if you get tax reform here, would you consider moving hq here? >> we will have to look at the top. >> it's a public company with public shareholders and he's got to do what's right for the public share shareholders. >> let me ask you, nine out of
ten, history says nine out of ten mergers don't add value. as a ceo you've been one out of ten and you create a lot of value. part of doing deals is borrowing money at interest rates. the fed made this move yesterday and we talked about it. the you're a deal maker, does this have an impact on what can be done with the higher cost of capital? >> to be fair, it could. going up .25 basis points is historically incredibly low with regards to capital. i think for investment grade credit, it doesn't matter. if you're a high investment grade credit, it doesn't matter. as you start to move down into the higher yield credit companies, perhaps it starts to matter more and the lower down you go, the harder it is. assets to capital become a problem. not just cost to capital. >> companies like allergan and pfizer with strong credit are fine. maria: what's in the pipeline. tell us what's in the pipeline
and once you're the largest pharmaceutical company in the world. >> we have a lot of exciting pipelines, the ones in oncology, particularly amino oncology, we're looking at products that could be game changing for people specifically with cancer over time. maria: where is the cancer. >> looking at tough to treat cancers. >> melanoma. >> they're looking across the board, close to a dozen different areas and really, some hard to treat ones. we have some game changing r & d in depression where there hasn't been any new modalities or ways of treating depression. we have some new one and a new treatment in 30 years. we have new areas in our aesthetic portfolio as well. you know, it's an exciting time.
our portfolio combined is 100 mid to late stage programs. >> that creepy guy got charged with fraud and-- >> yeah, he got arrested this morning. >> how do you feel about people that do that kind of stuff? >> and shareholders or-- >> there are always bad actors and people pushing the limit in every industry, banking, pharmaceuticals, you name it. because we have a contract to solve for unmet needs and cure people for diseases you've got the guys on the outskirts. >> makes you look bad. >> you get the politicians that try to cast a wide stone for the the injury. look, 99% of this industry comes to work every day. maria: you see a profiteer, that puts a face on the whole
industry, unfortunately. when you get these two companies together and you said probably the middle of next year, is there enough overlap that you'll see cuts in terms of jobs, in terms of where are the synergies. >> if we announce about 2 billion synergies, over two years, we'll look at a finance function or a chart function, and a little in the sales area, but not much there and really, over the period of time a lot of that may come from attrition. this isn't about deep cost cutting, it's about growth. >> organic growth as well. >> we're going to aspire the next two, three years to get to high single digits. maria: high single digits revenue growth. >> and a company that has roughly 60 billion in sales.
>> well, we are watching now, the markets on the move here. we're seeing commodities to the downside, 10 year 2.2%. the futures higher the fourth day in a row after the fed hike rate the first time in nearly a decade. avon degrees to sell 80% of the unit to cerberus capital. and cerberus will invest. avon had an offer from coty and withdrew from that. since then the market value has fallen. avon is trading to the upside 10 or 15% this morning. more "mornings with maria" coming up after the break.
>> welcome back. time for final thoughts, geraldo rivera. >> when i was 14 years old i delivered the long island press and i took whatever money i made and put it into a little savings account and i watched it grow, not only with my meager deposits, but also the interest. i am delighted that janet yellen has finally restored some semblance of normalcy where people who don't want to play the stock market can put their money to work, however modestly it is now, it's a return now to the kind of traditional value that i appreciate. maria: you weren't getting any interest on anything in a cd or a savings account. still not much. >> i'll echo what geraldo said. savers have been punished with quantitative easing. and retirees who played by the rules had a disadvantage the last several years, they're not saved yet, but hopefully it's a start of something where savers get respect and i want to congratulate you. i probably won't see you again until next year, it's been a great launch of the new program. maria: thanks.
doing fantastic and a great year, so-- >> why don't you get your butt in more often, gary. >> dagen, dagen, dagen. >> my promise to you for 2016. >> make it to maria. >> of course, maria knows i'll be here much more. >> good. maria: actually it's true, the fox business network is the fastest growing cable network period for 2015 and we're all very proud of that. dagen: guess where the next republican presidential debate is, on the fox business netwo network, 2016. >> threatening a boycott. >> always does. maria: i have not heard that. >> i want to follow up what i said about real regular stocks that make money because they have good products. i think bad-mouthing the american economy is starting to sound hollow, that's why the voters on the surveys put terrorism and immigration way ahead of the economy. it's time to recognize that the obama administration by either
by skill or by dumb luck has presided over a period of solid growth jobs added month after month after month and recognize it. maria: that's really not true, geraldo, i've got to push back, you're seeing commodities collapse and jobs cuts through the oil sector, machinery, you're right the consumer is doing better and you're seeing some job growth, but not where you should expect a recovery to be nine years after. dagen: i will agree with him we have great pride in the country and that translates to great pride in the companies that were built here and growing here. maria: yeah, i think-- i'm a patriot and love this country, but you've got to look at the realistic times. >> no one will dispute on a relative basis we're doing better than many places in europe, but remember, you can't go to the supermarket and buy groceries with relative performance. so, it's important to remember that the absolute numbers reported out should be a lot
better at this point in the recovery. >> we're paying the same price for tomatoes for five years now, at what point does the tomato farmer deserve a hike. maria: that's true. geraldo rivera, gary, dagen. time for "varney & company," stuart, over to you. stuart: i made a brave forecast at that went right on on a limb and you know what? i was right. good morning, everybody, here it is, $2 gas. the national average for regular is $2 even. ♪ >> thank you for the trumpets. in 26 states, the average is below $2. 26 states, and it's all the way down to buck 76 in missouri and still falling. next prediction, $1.95 by christmas eve, one week away. i say this is flat-out good news for america, got it? okay. on-line shopping, booming. way above last year, fedex, they deliver the stuff and may