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tv   The Intelligence Report With Trish Regan  FOX Business  January 7, 2016 2:00pm-3:01pm EST

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touch correction territory. dow and s&p, falling 10% from the highs. next stop is 20% which gets you into bear market. seven times we have connects that didn't turn into bear markets. other times we do. trish? trish: thank you so much, neil cavuto. breaking this hour everyone, instability in china sparking a selloff here at home. the dow's worst selloff in the new year since 1991. i'm trish regan. welcome to "the intelligence report." markets came to a halt only 29 minutes into the trading day. they instituted is called circuit breakers second time this week. china announced it would do away with the circuit breaker system. the circuit breakers are designed to temper huge fluctuations in chinese markets. doesn't look like it is doing that well. tomorrow there is end of it. what does it mean for the u.s.
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and for our markets? we're starting to hear the "r" word, recession again. we have team coverage for you. cheryl casone at new york stock exchange. i am -- investors kimberly foss and art hogan. cheryl, not a very good start to 2016 cheryl. >> that's right. more than 2% is the loss. 16,357. you talked about circuit breakers. level two would be 13% loss. we're not there. we're down 2% in particular on the dow. some of the biggest names your viewers follow and viewers probably own in their portfolio, may work for these companies, want to bring to your attention, jpmorgan along with lot of financials losing ground. bank of america. general electric, consumer name, engine maker, one of the big companies losing ground. caterpillar, manufacturing, jobs. we'll get into the biggs jobs report tomorrow. a lot on traders minds.
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potential of recession in this country. two quarters of negative growth in the economy. question is, what is the fed going to do? i do want to give you bright spot, trish. walmart. walmart was biggest loser in 2015. this stock got crushed last year. it lost 28% of its value. world's largest retailer. big employer in the united states. that stock has been a bright spot of 2016 so far. just our forth trading day of the year. right now walmart teetering in and out of the watching that stock. s&p down 44. dow down 361, trish and change. we're staying on it. trish: cheryl, we'll checking back in with you. oil getting hit on the chin, taking it to a 12-year low. i want to check with jeff flock down at cme, in the pits, watching all the action. >> hit a 12-year low at 32.10
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but it recovered. we're down only 50 cents or so on the last trade, trish. they have really come back. although some traders just told me they are buying puts now around 15 or $20. much indicating it could go lower later in the day. trish. trish: 15 or $20, there are bears out there for sure. what does it mean for us here at home given all the international turmoil and what does it mean for your stock portfolio? i want to go to kimberly foss and art hogan on all of this. kim, what do you tell your clients as we have approaching 400 points losses on the dow? >> we're bullish short term. i view markets coaching to our women in transition and retirees and viewers out there with guarded caution in the short term.
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clearly china is struggling with a new growth model. devaluation of its currency affecting world markets obviously. with that comes optimism we can buy stocks at cheaper rate. we're fully invested in 12,000 different stocks, over 44 different countries. we have cash on the sidelines. we're buying some market. trish: so you're a little bit nervous right now. art hogan, let me ask you this. i will play devil's advocate. we have big selloff today. everybody is worried. everybody says china is the problem. look at our number, art, we're $18 trillion economy. we export less than $150 billion to china. so it is not a huge export market for us. with that in mind are we overreacting a little bit when we all freak out about china? >> we always do, trish. that is a good point when you look at our percentage of our gdp exporting to them it is very small. problem is rest of the world,
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second largest economy. if they go into some kind of free fall, that will affect europe. europe is big trading partner of ours. we're a connected global economy. that is why we overreact. kim brought up good points. the points you brought up are important, if you have cash on sidelines, stay there for period of time to let this play out. we may have month of turmoil. also to be defensive and raise cash. as you manage your allocation model. i agree with kim in terms. long term. trish: i have to jump in. you're normally pretty bullish and optimistic, the fact you're telling me i ought to sit tight and watch, what does that suggest about the next several weeks in your view? >> trish my biggest concern isn't chinesely because the narrative hasn't changed that much. they are trying to control things they should leave alone which is markets. they're not controlling things which they should which is their economy. we can't control things like
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north korea and iran. this gets interpreted as negative to the global economist. i'm more concerned about that, that is why you stay on sidelines for period of time. we know china slowing. it is slowing for three years. we know they do things to stimulate economy. we think they should leave their market alone. we think move on circuit breakers is probably correct. they should let price discovery happen in the markets and look at construction tiff waives to improve the economy and and all those things can happen at the same time. trish: let's talk about the fed, kimberly. they're doing their darnedest to inject strength in the economy and really failed in this. maybe they saved us from a abysmal awful economic decline but face it they haven't put us in growth. they intend to raise rates at every other meeting. do you think that will happen given what is going on in china, given what is going on in the u.s. today? >> the feds do what they want to
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do. they have declared, many, many times, trish, they are data dependent so who knows? we used to rely on them with six-month barometer. they're data dependent as we are. the reality, people who try to outguess the market, feds or anybody else, markets punish those people badly. my coaching to everyone out there, the viewers out there, stay invested. make sure your portfolio is allocated like art said, commensurate with ability to have risk and stay in the markets. if you guess this wrong that will have bad performance on your performance long term. stay in the markets. trish: don't overreact. see what is going on. art is making the point you might want to sit by the sidelines and watch it for a while before you go in to scoop up any bargains. art, let me ask you about oil which keeps taking it on the
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chin. 12-year low. you remember the days of $150 oil? goldman calling for $200 oil. long gone. would you think, art, this would translate into some economic growth. people would have market and consumers aren't. is this negative for our economy oil going so low? >> no it will be a positive at some point in time. certainly not positive for people in the business. real negative it is seen as barometer to the global economy. trish, think about events this week. saudi arabia, iran in a conflict. five years ago that would put $10 on price of barrel of oil. it took money from the price of a barrel of oil. then you have north korea dropping a bomb or testing a bomb. we lose ail% on price of barrel of oil. what does that mean? we're more concerned about disruption of demand than disruption of supply. we think we're oversupplied. at some point in time we'll get to equalibrium. i think amazing see iran and saudi arabia in a fight and oil
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going down. never see that -- trish: tells you how much supply we have out there. that is lot because of u.s., art? we had tremendous renaissance in energy industry here at home which created all this supply. >> right. we haven't seen a supply response yet. we have taken 450, 500,000 barrels a day off marketplace. that is not enough. we're only supply response in the globe. when we see supply response we match up with what demand there is left at end of the day we'll be okay. that is back half of '16, first part of '17. trish: before i let you go, talk about possibility of recession. increasing number are saying that could be possibility. kimberly, yes or no will we see recession in 2016? >> i don't know but here's the thing. if we do see a recession in 2016, we know that the markets slow down, eventually markets will go back up again. opportunity to buy to add to the portfolio. we've seen every recession go down. we've seen markets rebound and actually exceed higher highs in the long term. so there you go.
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trish: long-term bull. i like it. thanks so much. kimberly and art. good to have you twice here. >> thank you. >> thanks, trish. trish: we have some breaking news out of the middle east. more fighting between saudi arabia and iran. coming up, war hero and senator john mccain, he joins me on the middle east. plus the controversy over ted cruz's birthplace. cruz was born in canada. so can he really be president? later on hundreds of muslims walk off the job at a meat plant in colorado after a company said they couldn't leave in large groups all at once to go and pray. well those workers are demanding their jobs back. how far must a business go to accommodate the religious beliefs of its workers? stay with me. ♪
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>> consider the market this week. china's market seemingly in free fall. not just in markets around the globe, but middle east. execution of a she light cleric lid iranians to attack their embassy in iran. saudi arabia cut diplomatic ties to the country and canceled several flights to the country. sudan, u.a.e., cutting their ties to iran. saudi arabia reportedly bombed iranian embassy in yemen. taliban attacks on our troops in afghanistan killed one soldier, not to mention of course the attacks in paris and
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san bernardino. and millions of migrants fleeing into syria, some heading to europe. some heading here. in the face of all of this, what does our president do? what is his focus this week? it is gun control. two days. tears streaming down his face about gun deaths in america. tonight hosting one-hour live town hall on gun control. he says greatest threat to our country is climate change. starting new year, 2016, it is a little scary out there. we might feel better if our president focused on important threats here and now and as opposed to pet projects. granted probably could use more background checks for guns. that is something you heard me say. but do we need to talk about this right now? does it feel like you have so many problems with the economy
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and international issues. international issues facing everyone, don't miss everyone, fox business debate. we'll talk about a lot of this next thursday. sandra smith and i will be there 6:00 p.m. eastern. we'll ask tough questions you want to know and need answered. join us in charleston, south carolina, next thursday, january 14th, 6:00 p.m. eastern on fox business. i will be back here with senator johnson machine cake. john mccain.
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trish: breaking this hour escalation across the globe. massive protests on streets of south korea. police gun down a knife-wielding man who 10ered a police station with a fake bomb vest and isis flag. iran retaliating against saudi arabia, banning all imports and telling iranians they can not join pilgrimage to
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the holy cities. with diplomatic ties quickly deteriorating throughout the middle east, are we losing any strength we have to fight isis? former homeland security advisor to president george w. bush, fran townsend. and retired arm major general bob scales, fox news military analyst. great to have you both of you here. start with you, general. we're living in world incredibly precarious spot right now and seems to become more precarious each and every day. i'm getting a little nervous. i imagine you are too. what would you be the telling the president right now? >> well, i would tell the president to become engaged. one of the things i find so interesting about this is that i'm a historian. periodically through history we go through these sign curves of evil that pop up around the world. you know the nazis in the 1930. kaiser at turn of the last century. stalin at beginning of the cold war.
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this is stopped globally through coalitions and civilized states taking a stand and stopping this type of evil that begins to permeate the world. we all learned in the 1930s before world war ii, the civilized world took a knee. 101 people died in the second world war. it is not exact historical parallel, trish. i think i'm beginning to see the, this sort of roots of evil coming out of the, coming out of the middle east and russia and east asia and the united states is taking a nee, standing by, watching it happen. the day is going to come when we're going to have to pay the butcher. trish: kind of feels like that isolationist policy we saw in the years world leading up to world war ii. we eventually said we have to do something. fran, with that in mind, there are people we could partner with. there are countries we could
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partner w i don't think anybody wants to or has the will to. what the general is talking about is really important. the world needs to come together to defeat islamic, dreamism but might that mean partnering with the likes of vladmir putin or dare i say, even someone like bashar al-assad? >> i wouldn't, i'm not sure i'm willing to go quite that far partnering with bashar al-assad. he is part of the problem and we could build a coalition more effectively if we were very clear who the good guys are. trish: get him out, fran. he is the dictator doing atrocious things people there. we don't want him there. suppose we get him out and do you run the risk isis takes over more territory in syria. >> there is certainly part of that risk. we bear responsibility for some of that risk. if we had gone in when the president paint ad red line kept true to the commitment, it was much easier division if he went.
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with assad there is alawites and more secular society to fall back on. that is not the case now. much more dangerous, true to say its is a much more dangerous environment. if you build a coalition you have to build a coalition around principles you agree on. our arab partners want a statement from the united states that we think bashar al-assad we want him to go but make a coalition to make that happen. trish: that is very difficult now. general, given what is going on between saudi arabia and iran and our historic ally, saudi arabia, feeling like we're not even really there for them. >> isn't it interesting, this administration seems to coddle our enemies that hate us, isis, syria and certainly iran, and disthose nations -- diss those nations true to us for 70 years, israel and saudi arabia. is a world turned upside down.
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the associate point, anytime you create a vacuum, anytime you turn your back on your friends you create a vacuum. the enemy always fills the vacuum. no, i think the great evil in generations ahead is iran, followed by russia and by china and you know, a minor partner being north korea. this is a global phenomenon. trish: but, general, vladmir putin said he wants to take out isis and he is working, he says to take out isis. you don't think -- we held our nose before and we partnered with all people joesph stalin to try and you know to try to defeat the nazis. is this not one at all where we partner with someone like him? >> just go back and read what putin has written, listen to his speeches. what he says is very clear. syria is minor theater for russians. his goal is to split nato, use refugee crisis, use the war in ukraine, to drive stake into
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nato, so he can expand russian empire like the sears. this not one to partner with, we have allies, other than vladmir putin. putin is intent on the destruction of the western alliance. trish: if he is on the other side who are we against in this battle? iran clearly. potentially russia. who is our friend here? who is our enemies? >> to the general's point, our enemies at the moment don't fear us and our friends don't trust us. you have to solve the trust issue first. saudis fighting houthi in yemen. perfect example why we need to make the saudis better partners with us because as they fight the houthi in yemen, who gains by that? al qaeda in the arabian peninsula. the al qaeda group president obama himself said posed greatest threat to american homeland because they were plotting to attack us here at home. we have to make partners of the saudis. we have to get them to trust us to join a coalition of arab
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nations to fight isis. they are very important partners. saudis given us intelligence to disrupt numerous plots against this homeland. without them, if they don't trust us, we run the risk of them not continuing to share -- trish: wonder if that happens in this administration. there is a lot of damage done. we're in a tough spot. fran, major general, thank you very much. good to have both of your perspectives on this. >> thank you. trish. >> thanks be trish. trish: national security front and center in next week's big debate. join us live in charleston, south carolina, for fox business's next gop debate. candidates late out best ideas to keep us all safe. i am joined by sandra smith there for the 6:00 p.m. debate. later on neil cavuto and maria bartiromo, kicks off six p.m. eastern on fox business, live from charleston, south carolina with all the republican candidates that want to be president. coming up, we got a story we brought you yesterday about 200
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muslim workers fired after they walked off the job because they couldn't all pray together during work hours. there has been a lot of outrage from the muslim community on this but our next guest who is muslim-american, says these muslims are taking themselves right to the unemployment line. that's next. ♪
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. trish: take a look at this. steep losses on the dow. off 380 points. you can see losses accelerating right now. we're going to stay with our
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market coverage through the close of trading. i will be here in for liz claman today. i will take you through it towards the final hour of trading. i want to remind everybody that a sell-off in china sparked this. they had to put the circuit breakers in. they're not going to do it tomorrow, no more circuit breakers. clearly it's not working, the trepidation following through. and the nasdaq composite index at 137 a loss of 137, nearly 3%. we're going to stay on that. a controversy in colorado sparking fierce debate on "the intelligence report." the cargill meat plant we told you about yesterday under fire for laying off 200 muslim workers after they walked off the job for three days unannounced. the walk-off after a group of 11 muslim workers asked to pray at the exact same time. the company said you can pray but got to do it as a smaller
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group so as not to disrupt business, we're talking about a factory line, assembly line here where everybody needs to do their part. sounds fair, right? well, apparently not to those 11 workers. they are upset. they quit. and in turn nearly 200 other muslim workers didn't show up for work for three whole days. so the company fired them. we asked the workers representative about this on yesterday's show, and he told me the company's fudging the facts, listen to this. >> there were some things that did change on the 18th that resulted in not just 11 people walking out but nearly 200 walking out. trish: not just walking out. let's talk about that for a second. these are employees who said we're not coming to work, they didn't show up for three days. >> that's not how it happened. these employees requested to talk to supervisor after that day when many of them did not pray, and in their conversation with the supervisor they were
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told religious accommodations they've been used to being accommodated for will no longer be accommodated for and tried to seek clarification. if there was incidents that happened. trish: instead of seeking clarification, they didn't come to work. in fact, they didn't come back to work for three days. okay, the "the intelligence report" did talk to cargill report and they insist that they were able to pray that day. this representative is not being forthcoming and 11 workers did want to pray together. joining me with analysis and perspective on all this is zuhdi jasser who has been following this story right from the beginning. zuhdi, good to see you. you have interesting commentary on this. you say they're marching themselves straight toward the unemployment line, why? >> not just the workers themselves but the groups like cair that claim to speak for our community. trish: just to explain to our
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viewers that was a cair representative they saw on television. a cair representative who represents the nearly 200 muslim workers who want their jobs back. >> a cair represent they've descended on them from minnesota which has the largest subpopulation of somali, a cair representative obstructing department of justice and homeland security work saying they're spying on community when trying to do their work. he is on record as saying they don't want the monitors. while we've had the largest population of somalis going to serve shebaub. they need to separate from community not to adapt and assimilate. i pray five times a day, i served in the military praying, i took my break just like anybody who needs breaks for medical conditions and the eeoc ruled on this in 2008 in which the eeoc lost and the judge said the meat packing plant did not have to accommodate anything undue that would be
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undue to the employer. so they're just barking up the wrong tree. it's been lost. they're taking the poor somali immigrants vulnerable to exploitation and marched them right into the unemployment line. now, are they going to get them their jobs back? they didn't show up for three days. what's the plant going to do? they had to let them go. trish: cargill is already rehiring other people. >> and cair put out a fund-raising memo at the end of 2015 just a few weeks ago saying we are representing muslims who are fired because they couldn't pray. they're being dishonest in the fund-raising memos using the poor muslims to make money for their own self-righteous anglous chasing when it's not serving our community and radicalizing muslims and not helping them theologically, the prayer time can be flexible, you don't have to pray in groups of 11, you can pray in groups of 2 or by yourself.
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the so-called mandate of theology, every muslim i talked to, you have a window of prayer for noon prayer from 12:30 to 4:00, you can pray any time there, there is a lot of muslims at that plant. a quarter are muslims at that plant, they can't all walk off at the same time. trish: this is community activists in the muslim community, cair, trying create a controversy for their own attention for their own -- i don't know what, because they seem to be hurting themselves in the process. zuhdi, think about it, if you're cargill, you might want to think twice before hiring another muslim from that community for fear they're going to do the same thing and insist they have to pray at this time with 11 people, five times a day. it doesn't give a business a lot of flexibility. >> that's what breaks my heart as american muslim. these organizations are not only radicalizing our community
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by separating them out but telling america we can't assimilate despite our theology that every other faith does. we can be faithful muslims and not demand special rights that no other faith asks for, and cair makes it seem that somehow the muslims had the rights taken away and they marched off. this isn't a tempest that came out of nowhere. there are reports in the denver post from 09, 2011 where the workers have been accommodated by cargill. this isn't a new controversy. what happened is someone said they had to all of a sudden walk out, and not show up for work for three days, which i'm trying to figure out. trish: that was orchestrated by somebody who wanted attention for it. zuhdi jasser, thank you so much as always. the market down 367 with the market touching session lows moments ago, down 411 points. see how this shakes out. we're going to stay with the market coverage.
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i will be here. down 368. a lot of concerns about china spilling over into the u.s. we're all over it, right after this. riefing on the terrorist threat... marco rubio was missing - fundraising in california instead. two weeks later, terrorists struck again in san bernardino... and where was marco? fundraising again in new orleans. over the last 3 years, rubio has missed important national security hearings and missed more total votes than any other senator. politics first: that's the rubio way. right to rise usa is responsible for the content of this message.
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. trish: a lot of red on the screen today. we've got a market off almost 370 points after china's main stock exchange plunged today triggering the second automatic trading halt this week. shanghai composite fell almost
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7.5%, and that downside has spilled over into our markets here. watching the price of oil sinking to lowest level in 12 years due to the troubles in china. doesn't mean there's not a lot of demand given the slowdown in the markets and the economy. the manufacturing data just the other day out of china. investors are worried they slumped in the second largest economy is going to mean lower global demand, that's hitting home. even with the turmoil in china and around the world have you u.s. employers doing sort of okay, jobless claiming falling by 10,000. we have one bull out there. jeremy siegel is next.
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. trish: we've got losses really kicking in here. down 360 points. off the session lows. we were off more than 400. lot of red on the screen. joining me ashley webster and finance professor jeremy siegel. jeremy, it is wonderful to see you. thank you for being here. >> happy to be here, trish. trish: i'm happy to talk to you because we need a little optimism right now, and we can usually count you on for that. >> i'm the last bull standing, it appears. [ laughter ] >> i still think we're going to have an up year this year, and let me give you the two pillars upon what this is based on. first i don't think the fed is
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anywhere going to hike four times. i mean one or two at most. so i think we're pencilling too much of a rate hike in there, and secondly, outside of the energy sector, we're going to have a nice bounceback in earnings. i expect 8, 9% earnings increase and -- trish: why? how? >> with a dovish fed, we can get a bull market. trish: i'm with you on that one. i bet you ashley is, too. i don't think the fed wanted to do what it did in the first place, but it did it. >> i agree. trish: i don't think they're going to raise much as we move forward, but how do you get that kind of earnings growth from these companies right now giving the malaise we're in economically? >> well, first of all, almost all the shortfall that we had last year, and we are having a decline in earnings in 2015, was two factors, the collapse of oil prices in the energy
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sector and somewhat spilling into the material sector, and the rise in the dollar. now the energy sector is bad for a while but it shrunk to what, 5, 6% of the s&p. if you take outside of that, we had earnings growth of 8, 9%. last year, and if we have the dollar being reasonably stable against the euro, the yen, i say that's not a headwind either. the organic growth of the earnings can continue for this 2016 year with a moderate fed dividend growth, 8, 10% a year. i think that's where people move to get the income that they need. trish: ashley, it's incredible when you think of how poorly our economy has performed and yet how wonderful the markets have been over the last several years. >> with all the cheap money.
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trish: so if jeremy's right. >> yes. trish: and the fed holds off, could you see a scenario people keep bidding the market up, making acquisitions. >> to jeremy's point, he's absolutely right. the fed, four trading days into the new year, it's very volatile and i don't see the fed having the data to go ahead and raise rates four times. it's not going to happen. i do believe the dollar is going to stay strong, however, that's going to continue to hurt the bottom line of companies. and i don't think the outlook for earnings is that bright. i hope jeremy is right. we want a brighter earnings outlooks, stronger economy. a big number tomorrow, by the way. jobs report. i want solid number that we can actually say we have sturdiness in this economy based on the turmoil going on around the world and the impact it's having on the markets. trish: not just the number of jobs added, but it would be nice to see wage growth. >> wage growth and
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participation rate going up. fascinated to see what happens with the chinese markets overnight. will have a big impact tomorrow. no circuit breakers, you know? it's a free-for-all. does that mean that the market's going to dive with no end? or does the market work as it should and we have buyers stabilize this. trish: hopefully, hopefully it will work. >> the chinese government will come in and buy if they have to. we know that. trish: professor siegel, help me understand the role china will or will not play in our markets this year? china's not doing so well, economy is not doing so well, it's a mess for its markets and yet you think we can continue powering higher, why? >> there's a couple things to note. first of all, i definitely agree what's going on with the chinese currency, the yuan, they've got to free that up, they ought to free the stock market up. we know the circuit breaker was way too narrow. trish: dear, i'm told we have
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20 seconds. i'm told 20 seconds. >> a recovery in the chinese afternoon. trish: professor. >> but they need to set a market rate at yuan. trish: okay. >> because everyone is anticipating it -- trish: i got to get a number from you. >> it's causing a rush of money out of china. trish: jeremy, i'm coming up against a hard commercial break. s&p where are we going to be? we're at 1948, year end? >> i think we can be at 2150 by the end of the year. trish: there you go. jeremy siegel, thank you. equals pretending to know wine. pinot noir, which means peanut of the night. i'm definitely able to see savings through using the car buying on usaa. i mean, amazing savings. i was like, wow, if i could save this much, then i could actually maybe upgrade a little bit. (announcer) usaa car buying service powered by truecar. save money, zero hassle.
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. trish: breaking this hour, new fighting and chaos in the middle east and around the world. iran is accusing saudi arabia of bombing embassy in yemen, as somalia is the latest country to cut ties with iran. joining me is senator john
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mccain of arizona. good to have you back. >> thanks, trish, nice to be back. trish: saudi arabia is our historic ally, has been for many, many years, where are we, then? given this saudi-iran fight. given we just did a nuclear deal with iran. are we really going to back saudi arabia here? >> that's what the saudis, the question they are asking, and reached the conclusion that's not the case. saudis are going their own way. the saudis decided to act in yemen, to try to combat the houthis who are iranian backed. they have formed an alliance of sunni arab countries without consulting the united states of america, and they are acting in their own interest. so the saudis are deep, and the other sunni countries, whether it be turkey, but gulf countries and others no longer have any confidence in the united states of america, so
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they've decided to go their own way. trish: they feel like we deserted them, and what does that lead to? that's the next logical step to ask, just exactly what kind of insecurity are they left with, and as such, what does it mean for the region? >> i think it means for the region probably, maybe in the long run, breaking iranian hegemony as you know now in control in syria, iraq and in lebanon. that it means that the sunni arab countries are going to take actions to try to break the attempt of the shia muslim nations but particularly iran in their age old ambitions to exert hegemony in the region, and they're going to take what action they feel they have to take for their survival, and they cannot depend on the united states of america. that is the clear signal. trish: it means a more violent middle east, in your view? >> i don't know.
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i think that if the saudis are able to succeed in yemen. if they're able to succeed with this coalition. if under the right president of the united states you could see a sunni military force, about 100,000, 10,000 of which would be americans, frankly, until they have the united states support and backing, they have to act on their own, may mean more violence, but at least somebody will stop this hegemony. look, the iranians have been given a blank check basically by the president of the united states. as you saw, they were -- they launched two missiles in violation of u.n. sanctions, and we were about to issue some sanctions on iran, and the president pulled back. why? because the iranians said it would kill the nuclear deal. they now have us by the throat. trish: let me ask you about your news publication, fourth edition of america's most
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wasted. where you talk a lot about government waste. this is a really important issue. the leakage that goes on is just incredible. you detail it all here. what do you consider, senator, to be some of the most outrageous examples of taxpayer waste? >> well, one of my favorites is the zebra given grape juice spiked with ethanol. and this is national institutes of health, and want to determine whether the alcohol would affect the finch's ability to sing. whether it would sing with an altered acoustic structure. another one of my favorites is 872,000, trish, for a study, how children cross the street. and you know what they found out after spending 872,000 of your tax dollars? that adults, sometimes adults found -- the results found that
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children tend to take greater risk when crossing the street compared to adults. there's your tax dollars at work. trish: i mean, it's funny, and we laugh about it, the $3.5 million going to study obese, you can't help but chuckle when you see these things. this is my money, your money and everyone's money and it's wasted. >> good, can i mention on a more serious aspect of this? they're trying to build a va hospital in denver, colorado. they've already had a $1.7 billion cost overrun on the hospital. trish, you know how many veterans we could treat with that $1.7 billion? trish: how many? >> some like the zebra finch or the children crossing the street are somewhat amusing, though agonizing. when we get into things like $1.7 billion cost overrun on a hospital that's badly needed to treat our veterans, you should
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get angry. trish: no accountability. senator, one final question, you were born in panama, you ran for president. senator cruz was born in canada, he's running for president. but there is a difference? >> well, i think one of the differences is of course panama was a territory of the united states, the panama canal zone which i lived in. i'm saying i was sued, i was taken to court about questions about where i was born and that question was raised and it was addressed by the courts. and so all i'm saying in this case is that the issue ought to be looked at. i have no information either way about mr. cruz's eligibility or noneligibility, but we have to look at all aspects of any candidate's credentials. that's all i was saying, it's every candidate's background should be looked at in every
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aspect. this is just one of them. trish: senator mccain, good to have you here, all the way from arizona. >> thank you, trish. trish: coming up on the final hour of trading. markets have one hour to go. get your final trades in. we're all over this steep sell-off. i'll see you back here with the final hour of trading right after this.
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when i went on to ancestry, i just put in the name of my parents and my grandparents. and as soon as i did that, literally it was like you're getting 7, 9, 10, 15 leaves that are just popping up all over the place. yeah, it was amazing. just with a little bit of information, you can take leaps and bounds. it's an awesome experience.
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. trish: we are less than an hour to the closing bell and the dow jones industrial average is on track for its worst start to a new year since 1991, hittinged session lows last hour, down 411 points. at this moment from the big board, we are down, you can see 372 points with the s&p 500 off 44 and the nasdaq down 128. briefly dipping into correction territory, down at least 10% from its recent highs. the chinese economy and middle east are driving u.s. markets lower and have been right from the start of trading. so we fell more than 300 points at the open. it is all in reaction, everyone, to china. china halted trading after

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