tv The Intelligence Report With Trish Regan FOX Business January 3, 2017 2:00pm-3:01pm EST
in charge of things on the house floor. joe biden does the swearing in, that is the vice president's role, so a lot of the political tension eases up today, but the battle lines are drawn, and each party is ready to do just that. we've got ashley webster now in for trish regan. sir? ashley: i'm going to swear myself in for the 2 p.m. slot here, neil. neil: excellent. ashley: thank you very much. breaking news, as you just heard, speaker of the house paul ryan will be addressing the house any minute now after officially being reelected just moments ago as house speaker. of course, we'll bring that to you live as soon as it begins. all clapping right there. i am ashley webster, good afternoon, everybody, in for trish regan and "the intelligence report" on this tuesday. the 115th congress, republicans now control both the house and senate and, yes, we'll have a republican president, donald trump, just 17 days from now. mr. trump and the new congress vow i to get a lot of work done
right away including repealing and replacing obamacare. all of this as ford motor cancels plans to build a new plant in mexico, calling it a, quote, vote of confidence, unquote, in the pro-business environment the president-elect is creating. we'll have more on that in just a moment. but first, let's head to capitol hill where we find our very own peter barnes and what has been quite a busy day, peter. >> reporter: yeah, that's right, it has been, and paul ryan has not even been sworn in yet, and he's been putting out fires all day so far. the house will vote after everybody's sworn in, members will vote on the rules package, the rules of procedure for how the house will address legislation and conduct itself this in the new congress. and earlier this morning that package included a controversial provision to eliminate a semi-independent office of congressional ethics which congress created in 2008 of after some ethics squabbleddal -- scandals.
it can send anonymous tips to the separate house ethics committee. critics say, however, that these tips can be untrue and specious and circumvent due process. supporters say eliminating the office doesn't help to drain the swamp in washington as president-elect trump has promised, and he got engaged in this issue this morning, tweeting out, quote: with all that congress has to work on, do they really have to make the weakening of the independent ethics watchdog, as unfair as it may be, their number one act and priority? focus on tax and health care. an emergency meeting to pull that provision, top leaders like paul ryan and majority leader kevin mccarthy did not favor this change or aleast the process for making this change, and supporters promise they will address it later in this year. but democrats today having a field day with this, the
democratic leader in the house, nancy pelosi, saying this move showed a clear contempt for ethics on the part of house republicans. so paul ryan already very busy today and, obviously, he has a busy agenda ahead for the new congress and the new house. ashley? ashley: he certainly does, peter barnes, thank you very much. you can see on the right-hand side of the screen paul ryan kind of working has way through the crowd. he will be speaking in just a few moments as he's officially been reelected house speaker and, of course, we'll take you there live as soon as he begins with his comments. republicans will control the house, senate and the white house for the first time since 2006, so what can we expect from the gop, and has donald trump already flexed his muscles with the party by getting them to back off on that plan to gut the congressional ethics office? it's been a busy start to the new year. joining me now, executive editor of the weekly standard, fred barnes. it's the barnes show. we've gone from peter to fred. fred, okay, was this just a bad
mistake to put forward this proposal to basically gut, as has been said, the office of congressional ethics? i mean, then we hear from the gop leadership who suddenly do a reverse turn on all of this. doesn't give an overall good picture. >> well, look, this is a small thing, and getting rid of that office actually made some sense. i think peter explained what's wrong with it but, look, the optics were terrible, you know? you don't want to start out -- [laughter] i mean, this is a particularly big year to be to throwing out some ethics office. and so i think trump's intervention, then the intervention by ryan and mccarthy carried the day. ashley: yeah, it's interesting because a big message of donald trump was drain the swamp -- >> indeed. ashley: -- and that did not seem to fit the bill, did it? >> it didn't, no. not at all. ashley: so what should be the first thing on the agenda? the tweet from donald trump
saying taxes, health care reform, what would you like to see the first issutackle >> i think as mitch mcconnell said, 's got to be obamacare. obamacare is something that the american people have disliked, the majority of them anyway, have disliked ever since it was passed in 2009. and so that has to be first, repealing it. then later you'll replace it. i think it has to come pretty soon. they can't wait a couple years. and they're ready to do something on tax reform which will help spur the economy. so those are the first two things. and then all the confirmation hearingsings. the one to watch is next week, and that's jeff sessions, the senator from alabama, who's been nominated to be attorney general. democrats are going to make a big push against him. i think all the republicans, all 52 in the senate will stand with him, but we'll see if there are any fireworks in that. remember, he was blocked by democrats back in the 1980s when he'd been nominated for a federal judgeship, and i think we're going to hear some of the
things that came up then again next week with. ashley: well, you know, you mentioned that democrats singling out eight of mr. trump's nominees they are going to go after. you mentioned one there, jeff sessions, of course, rex tillerson, secretary of state. >> yeah. ashley: look, ultimately, the republicans stay together, you know, they have the ability to get these confirmations through. so what do the democrats get out of it? >> well, they'll show that they're alive, that they can push back, that they're not patsies. [laughter] so they'll go through the motions. but i think, look, if they flop on jeff sessions -- and i think they won't be able to make any headway against him, there's an organized effort behind his confirmation, it's not just donald trump -- then i think democrats will be demoralized, and the later opposition to nominees won't be as strong. ashley: you know, it's interesting, isn't it, look, when you're at -- you have the
house, the senate and the oval office, it comes with some responsibility, and there are times when they're going to need cooperation across the aisle. is this something that donald trump can do in his administration? >> well, he's going to have to do it, you know? you don't want -- look, democrats can filibuster their replacement for obamacare, so you're going to need some democratic votes. i think republicans can get some, but they'll have to compromise a little. this is what president obama never wanted to do, was compromise, and that's why he operated by executive orders. but that's not the best way to do it. so they're going to ha to compromise with some senate democrats who obviously know the horrible destruction that obamacare has brought to the democratic party. it's been a curse. ashley: but there's also, you could argue, a little bit of some common ground that needs to be found among the republican party itself. you have those on the far right and those who are more moderate, and then you have donald trump
who's, you know, it's hard to make out what he is at times depending on the issue. but you can't please all the people all the time within his own party, can he? >> no, you can't. and there's some big issues that haven't been resod yet. i think -- resolved yet. i think republicans are in agreement on obamacare and tax reform, but then you get to immigration, trade, entitlements, and you get -- and this is an important one -- how much you're going to spend on infrastructure. republicans in congress, you know, just passed an expensive highway bill. they don't want to spend a whole lot on infrastructure, and meanwhile trump's talking about spending a trillion dollars over the next ten years. ashley: but he has walked back some of those campaign promises -- >> he has. ashley: -- tax brackets and so on. does that hurt him? >> well, look, it's inevitable. i don't think it hurts him. i think people expect it, i certainly did. i mean, i don't think the american people are out there
pining away for, to make mexico pay for a w wall along the southwest border. there are things that, y know, voters aren't stupid. they recognize that there's a lot of exaggeration in campaigns. ashley: that's very true. joining me now, fox news contributors leslie marshall, mercedes schlapp joining in on the conversation. leslie, we see nancy pelosi on the other side of the screen speaking at the house today, we're waiting for paul ryan. again, i know i ask you this a lot, leslie, but as for the democrats, yes, they can make the confirmation hearings, you know, perhaps messy, asking questions of the rex tillersons, business ties and what have you, but do you still have the sense that democrats need new leadership? >> yes. i mean, i'm a democrat, and i've said before to you that we need new leadership. i think the republicans need new leadership, and in a moment we're going to hear from some of the old leadership as well. but with regard to the democrats, yes. we need new leadership, we need
new names, we need some younger folks in the mix going forward. and i think we're going to see that. i mean, historically elections are very cyclical, and the democrats have been really blindsided and knocked out of the ring before they came back stronger than ever and hit back six years later. hopefully it won't take six, two, four at most is my prediction. ashley: mercedes, your comments on what's been going on with the office of congressional ethics. kind of a strange deal. there's an effort to basically put lawmakers in charge overseeing other lawmakers. that got9 a lot of pushback. now republican leadership says, no, we're going to ditch it for now. what the heck was going on there? [laughter] as fred barnes said, the optics weren't very good. >> absolutely. i mean, my question is why? why now? why bring it up at this moment that we're about to launch, the republicans are about to launch into a new era with trump as president? obviously, trump has made it very clear that his priority is going to to be on repealing and
replacing obamacare. i think it was a misstep by the republican leadership to push forward these proposed changes to the congressional ethics office. yes, does it need reform? absolutely. was the timing off? absolutely. this was not something you need to have be the first day in office. it is a distraction. focus on the big fish, not on the little fish. and right now the big fish is that of replacing obamacare and honing in on donald trump's clear message and directive that he's going to make america great again with these policy changes. ashley: and, mercedes, to follow up, pretty much what you said donald trump said in about 20-something words in a tweet. [laughter] why are we bothering with in this now when we've got bigger things to deal with? do you think his influence was enough to make the leadership say, yeah, this is silly? >> i'm sure there were some in the leadership that were not pleased by donald trump's tweet, but here's the deal. he's the man in charge, he has a
vision of how he wants to move america forward, and we really have to focus on the changes that need to be made to obamacare. the mere fact that we need to push forward an economic growth package in america, and i think that it's clear, you know, that donald trump is going to make his opinions heard. and he will -- you're going to see, it's going to be an interesting sometimes of a fight between republicans and donald trump. i think for the most part you're going to find that they're going to work together on many of these big picture issues. but at the end of the day, he's coming in with a mandate, and that mandate is to make change, and congress is going to have to get used to it. ashley: fred barnes, are you still with us? i hope so. >> i'm here. ashley: what about this tweeting? the commander-in-tweet, as he's being called. [laughter] he can be effective, he goes after individual companies, but he goes right over the head of the media in between, he goes directly to the people. what's your thought on that? is it appropriate for the office even though he's still only president-elect? >> yeah, i think it's perfectly
fine for the office, but obviously donald trump has to be careful. when you're tweeting about things like nuclear weapons, maybe you ought to have second thoughts about that and talk about that in private or in speeches that you worked on for a long time and not just toss out really some things that you shouldn't say just on the spur of the moment. so i think he needs to be careful, but tweeting is what donald transfer is going to do -- donald trump is going to do. as president, he believes in it, he can reach the american public without the press butting in so easily that he'll never give up. ashley: i think you're right. leslie, let me bring you back in. i talked with fred earlier about the confirmation hearings and the democrats picking out eight particular nominees that they say they want to, quote, go after, if you like. certainly ask some tough questions. at the top of the list, rex tillerson, secretary of state. would you agree with that? >> absolutely. look, there shouldn't be, oh,
tit for tat or people think, oh, they're being sore losers. they though they don't have the votes to stop it. but i think they as elected officials owe it to not only the people that elected or reelected them, but even the people that elected donald trump to have full transparency, to have a full vetting process. and when you look to rex tillerson, you must look into the background not only offinane relationship that he had with foreign nations going forward because that could be a conflict of interest specifically in the position that he is being nominated for. he has had a very cozy more than at best relationship with russia, and in light of some of these situations that are taking place with other nations in the world that may not be as friendly with the united states right now like china or even the philippines, it is, i think, problematic. some of the riches and the coziness he's had with other nations, especially with russia and vladimir putin in light of some things we found out in this country.
i think the democrats are doing their due diligence as they should for the american people. ashley: fair enough. mercedes, what about that relationship? rex tiller soften, i think he got an award from vladimir putin at one time. you could argue that he understands how the game is played. >> tillerson has received bisparnt praise on his nomination. i think what he brings to the table is world classics appearance, obviously, as a businessman who understands the complexity of negotiations across the board. i think that, you know, he will receive the questions on his reu7 with putin. -- relationship with putin. i like the idea that this man understands the come mentionties of -- complexities of putin and of dealing with russia. and so i think that what you're going to find is that if he was able to manage a multibillion company with a very complex bureaucracy, he will surely be able to effectively manage the very politically driven to the left state department as well as
be able to -- ashley: all right, mercedes, you made a good point. we got it all in. let's listen to paul ryan now addressing the house after officially being sworn in as house speaker. ms. . [applause] >> thank you. thank you very much. [applause] >> i'll be relatively brief. [laughter] [applause] i want to thank madam leader. you know, i have stood in this spot very, very many times. today, though, feels a whole lot different. part of it has to do with all the new faces in the house. you look at all the proud spouses, these beaming children at their best -- [laughter] people's parents, it's hard, if
not impossible, to resist this rush of enthusiasm. there is no sense of foreboding in this house today, there's only the sense of potential. it kind of reminds you that no matter how long you have been here, you haven't seen it all. and so i just want to say to our new members and to their families, thank you, congratulations and welcome. [applause] to my own priest, father paul, thank you for being here with us today. appreciate it. [applause] and to my center, my family, jana, liza, charlie, sam, thank you for all that you have done to make this all possible. [applause] thank you. [applause] there's another reasonor optimism, and that is what we've already achieved by meeting here
at this moment. just months ago our country held a great electoral contest, and at times it was a little intense. as you all know, when you're in the heat of it, in the heat of the kind of campaign we had, you start to wonder will the tempers ever cool? will the system still hold? does our old, rich tradition still have that magic? well, it turns out it does. the clash of opinions, the hue and cry of campaigns, the rancor and the dissension in the end, they all dissolve in the silent and peaceful transfer of power. [applause] and so in just a few weeks' time, we will welcome a new president who offers us yet another new beginning, a new chance to work toward a more perfect union.
for all of our arguments and all of our differences, we are all united by a deep, abiding love of our country. it is -- [applause] this slender but sturdy thread that holds us together. we always seem to forget this, but it has never failed us. that is why when the votes are counted and the people have spoken, we all accept the verdict. we come back fm the campaign trail, we pack up the yard signs, and today, today as one body we pledge allegiance to one flag, the red, the white and the blue. [applause] that's not the only thing that we have in common. i don't care what your party is. find one with person in this house -- one person in this house who doesn't want the best for america.
find one person in this house who does not want to see help given to the unemployed or care for the sick or education for the young or honor our troops. here, who here among us does not want to open wide the door to opportunity? who here among us does not want every american, every creed and every color to cross the threshold? you cannot find one person many this building -- in this building, not one. and that, that is a true cause for celebration. now -- [applause] we have a lot to build on, but that being said, this is no time to rest on our laurel ares, but to redouble -- laurels, but to redouble our efforts. it's no secret that millions and millions of americans across this country are deeply dissatisfied with their current situation.
they have looked to washington for leadership, and all they have gotten is condescension. for years they've suffered quietly, quietly amid shuttered factories and shattered lives. but now, now they have let out a great roar. now we, their elected representatives, must listen. so i want to say to the american people, we hear you. we will do right by you. and we will deliver. [applause] we will honor you because you have honored us. [applause] we take this sacred trust seriously. [applause] you know, it's not enough to say that the condition of your birth should not determine the outcome of your life, no matter how much we mean it.
in a few years' time, i hope that the people will say of this 115th congress that we didn't just pay lip service to this beautiful american idea, that we made it a reality for everyone. we are not here to be to, we are here to do. we are here to improve people's lives. grow our economy, keep us safe, improve our health care and our infrastructure, fight poverty, restore self-government. friends, we've got our work cut out for us. as your speaker, i intend to keep this place running at full speed. when i came into this job, i pledged to restore regular order. get that committee system working again. hold regular house and senate conferences because only a fully functioning house can really, truly do the people's business.
[applause] we've made some pretty good progress on that front. take our work on finding cures for deadly diseases or beating back that opioid end deppic or -- epidemic or our work on mental health. these are all things that we should be very proud of. these efforts were directed by the committees and crafted by our members all through regular order. there's still a lot of work to do like having a fully functioning appropriations process, for example. [applause] and so to the minority, i want to say this: we've never shied awayrom our disagreements, and i do not expect anyone to do so now. but however bright of a contrast that we draw between us, it must never blind us to the common ground that we share. we must never shy away from making progress for the american
people wherever we can. and so as your speaker, i promise to uphold the rights of the minority. i promise to hear you out and met you have your say. [applause] if i had to the sum up, it would be this: agreement whenever possible but at all times respect. [applause] and to the majority, especially to our returning members, i want to say this: this is a once in a lifetime opportunity. this is the kind of thing that most of us only dreamed about. i know because i used to dream about this a lot. [laughter] the people have given us unified government. and it wasn't because they were feeling general rouse. generous. it was because they want results.
how could we live with ourselves if we let them down? how could we let ourselves down? i have for many months been asking our members to raise their gaze and aim high. now, today to, this congress let us not be timid, but rather reach for that brighter horizon and deliver. and so this old chamber, this old chamber might look the same, but in the hushed whispers, in the whirl of activity, you can feel the winds of change. and as i stand here next to that portrait of good old george washington, i am reminded of a line from one of his favorite plays. 'tis not immortals to command success, but we'll do more, we will desve it. and so, my dear friends and colleagues, i say to all of you good luck and godspeed. thank you very much.
[applause] ashley: that was house speaker paul ryan calling for a once in a lifetime opportunity, he says, with republicans leading in the house and the senate and, of course, with donald trump coming in as president. he said it was all after a very intense be campaign. he said there's been a rush of enthuse california but he said at the end of the day, we should treat each other with respect, we are all linked by our love of country, he says, getting lots of, you know, applause and good feelings as we kick off the congress. we'll wait and see whether those words can actually be put into action. for more on this now, i'm joined by trump economic adviser steve moore and leslie marshall still with us, thank you for that,ly. steve, paul ryan used to intern for you. laugh he's come a long way. >> you know, and we were talking a little bit while he was speaking that, yeah, what you see is what you get with paul ryan. i thought one of the most interesting quotes in that breach speech was he said, look,
i've waited for this moment. and it is true. i've been in politics for 35, 40 years, you know, there are three or four times in a century where one party is set up with the kind of lineup that the republicans have -- ashley: right. >> the house, the senate and the white house to do really big things and, boy, paul ryan really wants to. he's got his agenda for change which actually nicely matches up with what donald trump wants to do, and i think you're going to see an incredible secretaryuate the first hundred days. ashley: leslie, we heard mr. ryan talking about respect when he was talking about republicans dealing with democrats. can we bring down the tone a little bit in this new congress? do you see more cooperation? >> no. [laughter] ashley: we'll be right back. >> i'm sorry. i'm -- yeah, we'll be right back. film at 11, right? i'm a realist, and i also like to look at history. fortunately or unfortunately.
with our political process no matter who the speaker is, everybody stands there with these warm and fuzzy, "kumbaya" moments, but the reality is there is not respect. the reality is that the minority is often not heard by the majority or the majority leader, and the reality is there is not respect, many americans feel, from our president-elect towards certain groups of people in this country. whether they be mexican-americans, whether they be women, whether they be muslims. and so we're not feeling the unity that we're hearing speaker ryan talk about. so i'm a bit apprehensive. i'm hopeful, but i'm a realist, like i said. and i do see a lot of people say, hey, we're going to work together, and then what happens, you know? you'll have somebody on the right say something disgustingly nasty about nancy pelosi or somebody else in the democratic party, and we've seen it done the other way around -- ashley: exactly. you beat me to it. steve and leslie, sit tight for a moment. by the way, donald trump is nominating robert lighthouser to be the u.s. trade
representative. this is one of the final pieces in the trump administration, and it is sure to be a vital one as trade will be a key part of the trump agenda. this as trump targets another u.s. company on twitter, threatening to slap a tax on gm for importing compact cars to the u.s. from mexico. he also retweeted the news that ford will scrap a planned factory in mexico and instead will add hundreds of new jobs right here in the united states. it's been a busy morning on the car front. jeff flock joins us now with more. jeff? >> reporter: oh, boy, it started with donald trump's tweet earlier in the morning criticizing gm and then ford, he got a big break from ford with the announcement they' scrapping that plant in mexico. and on the face of it, t ford ceo, mark fields, told neil cavuto earlier that it wasn't because of donald trump. but listen to how he clarified that. take a listen. >> we're doing this decision based on what's right for our business. as we think about the investments here in michigan, as you can imagine, neil, we look
at a lot of factors as we make those. one of the factors that we're looking at is a more positive u.s. manufacturing business environment under president-elect trump and some of the pro-growth policies that he is, he said he's going to pursue. >> reporter: he said that that is a big deal. while it wasn't a direct response to trump, the new environment that's been sort of set out there and the more positive environment are, more growth environment, i think, is certainly one of the big factors. i would add note of caution, however, and as trump criticized gm for bringing cars in from mexico, the competitors to that too. you're going to tax u.s. companies but not the foreign companies? take a look at the number of cars. competitors specifically to the chevy cruze that are made in mexico, brought into the u.s. without tariff. everything from the honda civic to the mazda 3, nissan has a car, toyota's corolla and the vw jetta.
a couple of those are also manufactured as well in the u.s. but, you kw, if you're goi to tax one company, you sort of have to tax them all, anif you do tax them all, maybe the price of those cars goes up. kind of a difficult situation, but a win for donald trump i think fair to say today, ashley. ashley: steve, back to you. yeah, that's an interesting point. if you're going to do it for one, you have to do it for all. the consumer loses because prices go up because of those taxes. while it's nice that ford says, yes, the environment, the the pro-growth environment and what mr. trump is saying is mr. positive and, therefore, we are thinking -- >> it's a real issue about, okay, we want to bring jobs back to america, we want more manufacturing jobs especially in the midwest -- [inaudible] and the real question is will donald trump use the club, you know, of tariffs or will he use the carrot of lower taxes, lower regulation, a better business environment.
i was really heightened by what the ford ceo said there which is, hey, we want to be in the united united states. i want to use the carrot to. and you're right, a tariff makes things more expensive. ashley: these automakers are always going to have to think of the bottom line, and it is cheaper -- >> but, see, this is the problem. when you're looking at having a factory, let's say, in detroit, michigan, or wisconsin versus mexico, we have such a dumb tax system. we tax what we produce here, we don't tax what's imported. there's a lot of talk about a border-adjustable tax system in the united states. ashley: yes. >> that would flip the tables a little bit. i'm in favor of that kind of system, ashley, because i think it would reward more production here. but i want to do it on a level playing field. the other countries do it against us, so maybe we should have the same kind of tax system they do. ashley: leslie mar hall, how can you -- marshall, how can you argue against that? we'd much rather have these cars made here rather than somewhere else, what do you say?
>> well, look, as a pro-union democrat wanting manufacturing to be where it used to be in the united states, i say that's great. here's the probl, hycrisy. president-elect trump's products are overwhelmingly the majy made in china, in indonesia, bangladesh and mexico. so he needs as a leader to bring his products to be produced and manufactured in the united states, lead by example. i think what ford is doing is great, and we'll see if we offset the the deficit between imports and exports and the rest of the world. >> we change those tax laws, and, leslie, even donald trump brings those jobs back to the united states. i'm with you, because they're union job ands. ashley: we are in agreement, which is a wonderful thing. steve and leslie, thank you so much. wel be right back. >> tnk y. that make me smile. spending the day with my niece. i don't use super poligrip for hold, because my dentures fit well. before those little pieces would get in between my dentures
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ashley: all right, let's turn to the markets. stocks in the green just, but off the highs we saw earlier today. joining me now, jason -- [inaudible] along withcountdown to the closing bell" host liz claman who's standing by at the new york stock exchange. we were up 176 points out of the gates this morning, it was all confetti and new year, and then all of a sudden oil prices started to turn south and took the markets with them. liz: well, i'm glad you didn't blame me. [laughter] you know, on this first trading day of 2017 we've seen an epic fumble here, the kind that would get football teams in the
national football league in real trouble here. we had been up about 176 points for the dow jones industrials, look at us now. i mean, avert your eyes, we're only up 25, the russell just turned negative, stop is clinging to gains -- s&p is clinging to gains and, yes, you could turn to oil because oil had been jumping to about 18 month highs. and then, of course, we saw all of that fumble, and that's where the tumble began. so from fumble to tumble, arleigh, the dollar followed -- ashley, the dollar followed. the dollar had been at 14-year highs, it is now negative against the yen which earlier today it was higher. so it seems to be that most of the indices are falling into place at the moment, but let's just call it flat for now. ashley: making out grumble. i'm just going with the theme. [laughter] jason rotman, look, maybe wills some sort of psychological resistance at this 20,000 level on the dow. are people taking some profits, perhaps, as they wait for donald to deliver on his promises?
>> you know, i don't think people are really taking profits per se, but i just don't think there's any new buying. so, for example, there's no new buying, it's not like the market's down 2% today, it's just up a little bit versus up a lot. so i think that's a good sign that we're still in a bull market. i think the main driver, if you want to call it that, for this week is that there are no drs. so this is just going to be a classic technical range trade, nothing too exciting. ashley: jason, where do we eventually go? you still feel like we're going to have to relentless march up? >> i do. i think the first, you know, call it three months, the first quarter of the year you're going to see fear of missing out. i think people are looking at a long-term stock market chart, and they're saying this rally is not done, it's going to keep going higher, i want in. and then really fast forward towards the summer, we really need to see where inflation and interest rates are at because that may cause headwinds if inflation --
liz: jason, isn't that precisely when the more experienced investor gets out, when the fear of missing out trade comes in? [laughter] retail investors have not fully gone in. data, whoo hoo. [laughter] it is. it shows that week after week after week last year we saw redemptions, people pulling money out of exchange-traded funds, and, of course, mutual funds except for the final week of the year. and i begin to wonder is that what -- and i don't call it this, other people call it this -- the slower, quote, dumber money coming in too late? i still think that there, with jason, are many things in place including the optimism of a president-elect donald trump that will propel market. but, again, a lot of those ideas don't come into real play until 2018. ashley: donald trump will have his inaugurationing in 17 days now, and there's going to be a lot of volatility in washington, and i would imagine that's going
to translate to the markets as well. >> you know, if you look at the economic data this morning, there was an amazing u.s. manufacturing reporter. liz: yeah. >> housing is still strong. ashley: yep. >> everybody's looking for trump's promise, in a sense, of gdp to go to, you know, 3.5%. so i think it's going to be a while before the dumb or the smart money really starts to get out in droves. [laughter] ashley: fair enough. we'll leave it right there. liz, thank you very much. we'll see you at the top of the hour, jason rotman, thank you very much for joining us. we have news within our own fox news family, megyn kelly will be leaving fox after 12 years at the network. she'll begin a new venture in the next couple of months. we'll with right -- we'll be right back.
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looks like they viewed it. and, ta-da! paid twice as fast. oh, she's an efficient officiant. way to grow, jeanette. get paid twice as fast. visit quickbooks-dot-com. ♪ ♪ >> and a very good afternoon live from the floor of the new york stock exchange, i'm lori rothman. stocks are holding onto gains but well off the best levels of the session. oil's down, the dollar had been higher, but that gave up a little bit of steam, so all that weighing on our much stronger rally at the opening bell. interesting though the volatility index has come in a little bit, so investors are a little more calm here, feeling pretty good about things. stocks making news starting with ford, shares way up after announcing plans to cancel a $1.6 billion plant to be built in mexico in favor of a $70 million investment in michigan. 700 new jobs, the plan is to expand their electric vehicle and hybrids.
nuclear -- to curtail the north korean nuclear program. it's the latest showdown between china and the incoming u.s. president. can we expect a shift in u.s./china policy? joining me now, fox news strategic analyst lieutenant colonel ralph peters. ralph, as always, thank you so much. >> ashley. ashley: donald trump spoke in very tough terms about china on the campaign trail. what are you expecting? you've said, and i was reading your notes, that china has essentially been cheating for decades and standing up to them has been long overdue. >> well, that's certainly true. and i do expect a trump administration to take a firmer and, one hopes, wiser line. because the chinese have been getting away with murder. be almost literally. helped very much by a minority of u.s. businesses who are profiting from the china parade and lobby in washington. but -- china trade and lobby in washington. but whether state craft by tweet is going to really work is another question.
i mean, the tweets certainly scare our allies, i'm not sure they scare our friends. and so the chinese, if you really look at them in an historical context, they're much more apt to respond to implicit threats and firmness than to explicit threats that humiliate them publicly. and the rth koreans, you threaten them, ty ju ratchet up the rhetoric another level. so the chinese at least are rational and transactional. the north koreans are nuts. [laughter] ashley: i was just going to -- you know, you said kim jong un is a screaming nut case -- >> on a good day. ashley: and, therefore, perhaps has been in place too long for china to really do anything, although we know that china essentially keeps north korea going to a certain extent with food and everything else. but what can china do to rein in north korea? >> not nearly as much as they could have a decade or so ago, because china made a classic mistake, believing they could control, you know, make, you
know, make a pet out of the cobra. and now with its nuclear program and its nuclear arsenal, north korea is very hard to control. the chinese previously were delighted to use north korea under kim jong un's father, you know, to play with us, to the keep us busy, keep us off balan. but now they find they can't control them. they're worried about a collapse in the regime that would unleash a flood of refugees. they don't want a unified korea under south korea that would put us on the chinese board. if i could switch gears for just a moment, this could turn into an unwanted military confrontation, a very, very dangerous one. when i hear people talk about what about surgical strikes on the north korean nuclear capability? they would respond with a massive nuclear and conventional attack on south korea. it would be incredibly
destructive, conventional artillery range of the border of the d america z. so -- dmz. so it's just really, really hard. i do fear, i do not desire, but i fear that there will only be a military solution because kim jong un is so out of touch with reality. his generals are afraid to tell him e uth abouhi weakness, you know, because he kills them when they do. so we are dealing with someone who's not only unpredictable, but literally a threat to world peace. ashley: wow. well, we'll leave on that sobering note, why don't we. colonel peters. >> happy new year. ashley: as always, thank you so much. we'll be right back.
social experiment. some 2,000 up employed citizens, chosen at random, will get a guaranteed monthly income of $587 whether they work or not. sounds like a socialist dream, doesn't out? but a lot of economists actually think this could cut down on government red tape and welfare fraud while helping to combat poverty. so is it a great idea or is it just finnish financial folly? not easy to say. joining me now, dan mitchell from the cato institute. dan, okay, it seems very radical, but there are those that say, you know what? this may have merit. what do you say? >> well, the meritorious part of it is that the current welfare system in most countries traps people in poverty. it says, okay, we're going to give you health benefits and housing benefits and food benefits and income benefits, but you can't work. and you start to work, we'll start taking all those goodies away from you. and so people get a clear message,he more i work, the less i get,, and it traps them n
poverty. and that's one of the reasons a lot of people are intrigued by this idea, but here's the downside. what if there are people who are working, and there's this guaranteed income plan for the entire country, and some people working say, hey, i'd rather just sit at home all day and watch game shows and collect this check from the government? ashley: yeah. >> so it's actually going to be very interesting to see what happens in finland. i'm glad they're doing the experiment. [laughter] i'm personally skeptical about whether it'll work, but my mind is open. if they actually find out that more people will decide to work because of this, then that's great to learn. ashley: well, it does come down to the individual, doesn't it? because, you know, the argument they're giving is, well, it offers workers greater security and allows those who are jobless to pick up other odd to jobs without losing the benefits. they'll get this tax-free 587 a month, they also say with high-tech kicking in, a lot of people are out of work.
high-tech jobs or technology itself is making a number of occupations, well, they're just losing jobs because a machine can do a better job than a human. so from that point of view, from a social point of view, it could work, wouldn't you not say? >> well, there are these people who think that there are going to be no jobs in the future because of automation. ashley: right. >> i wonder whether those are the same people who said, oh, my goodness, we're losing all these agricultural jobs, and what will we do? i think the private sector will surprise us by showing plenty of innovation and creating lots of jobs. and i think perhaps that's a reason why switzer, when they had a national switzerland, when they had a national referendum on the guaranteed income, they voted against it in a 78% landslide. every single canton in the country said no. >> well, the scandinavian countries in particular, they pay a really high price in tax, but they also get be an awful lot from their government, and maybe finland looks at this and
says, hey, what a great idea. but in a country like the united states or western europe, this just wouldn't ply. >> well, the nordic countries do have very high what sometimes is called cultural capital, social capital. ashley: yes. >> there's still a good work ethic there, surprisingly, even though they have these high taxes and generous welfare programs. and so when finland does this experiment which, again, i love the idea that they're experimenting and we're going to learn something, we then have to be cautious. okay, whatever they learn, will it apply in a country with a different culture? ashley: exactly. that's a very good point. dan mitchell from the cato institute, thanks, dan. we really appreciate it. and we'll be right back.
market should have room to the upside as we await for donald trump to officially take over as president of the united states. the inauguration on january to to -- 20th. the it will happen. liz claman into the final hour of trading. liz over to you. liz: i'm still waiting, ashley. hello, 2017. on floor of new york stock exchange. the market lost its earlr mojo. 2017 actually came in firing on all cylinders. what is that eight cylinders, that is the big one. charging higher by 176 points, shoving dow to nice peak what you could actually see, dow 20,000. that engine is sputtering. dow chopped off 100 point in gains. we're off 47 points. russell barely higher by two. s&p up 10.