tv Countdown to the Closing Bell With Liz Claman FOX Business January 9, 2019 3:00pm-4:00pm EST
aisle. a source telling fox news he's quote, pretty upbeat. he was pretty upbeat throughout that lunch with the senate republicans. lauren simonetti is in for liz claman. take it away. lauren: we have breaking news at this moment, as charles said. it is day 19 of the partial government shutdown with house speaker nancy pelosi, senate majority leader mitch mcconnell and the rest of the congressional leadership getting face time with the president. could this be the breakthrough that could lead to the end of the shutdown? at friday it becomes the longest ever. it comes less than an hour after the president addressed the shutdown on capitol hill after he met with senate republicans, saying his party is unified and again demanded border security be included in any deal to reopen the government. blake burman is live for us at the white house with the details. take a look at this. the markets higher today after chinese negotiators pledged to buy more u.s. products following
three days of talks in beijing. take a look at the dow, you see it's up 129 points. the s&p 500 up 13 and the nasdaq popping by 67. percentage-wise the nasdaq is the best here, up a solid percent. we have more from ces in las vegas as go pro's founder and ceo, nick woodman, talks to liz claman about how his action sports camera company is dealing with the trade war. and doing business in china, our china trade experts tells us if he thinks a deal will beat the 90-day shot clock. wall street legend bob dahl looks into his 2019 crystal ball and charlie breaks it on the latest foray into the world of sports. what's going on? less than an hour to the closing bell. i'm lauren simonetti in for liz claman who is at ces. let's start the "countdown."
lauren: the major averages pushing higher again after paring gains following president trump's comments on border security, after meeting with republicans on capitol hill. now, the dow had been up 198 points at the high of the session. it is still higher by 155, on pace for, get this, its longest winning streak in two months, 48th in a row. the s&p 500, the broader market is on pace for its longest streak since september 14th. oil also rallying again today, closing at its highest levels in three weeks after u.s. crude inventory sharply declined last week. the eia reporting stockpiles dropped by just about 1.7 million barrels. you can see oil punching through $52 a barrel, up 5%. let's take a look at the s&p 500 because all the way at the bottom today is the maker of corona beer, constellation brands plummeting after reporting disappointing full year profit outlook, even after beating on the top and bottom
line so what happened? well, their guidance, being hit by a $4 billion investment in the canadian, canada's company, canopy growth. it also reported weakness in is wines and spirits business. take a look, shares are plummeting 12% at $151 a share. a multi-year low there. home builders are rallying back today. lenard came out and said during their earnings call while sales growth has been lower than expected in the last quarter, the easing of rates has helped push traffic back up. the ceo went on to say the low inventory of available homes continues to boost the housing market. so lennar is a top performer on the s&p 500, gaining 9% at this moment. you can see the other home builders, dr horton up about 7%, toll brothers and kb home up 4% each. let's get to politics. let's get to the white house. the shutdown showdown coming to a head today. president trump meeting with
congressional leadership from both sides of the aisle at the white house at any moment from now. we will break in as soon as that happens. all of this happening as one of the world's top rating agencies issuing a warning to the u.s. government, end the partial shutdown asap or risk losing the nation's top-notch credit rating. james mccormick, head of sovereign ratings at fitch, putting law makers and the administration on notice saying if the shutdown leads to the u.s. hitting its debt ceiling come march 1st, the firm may need to consider, this is a quote, current policy framework and the inability to pass a budget, are they consistent with a triple-a rating? blake burman is outside the white house tracking all the action. blake, the warning is adding a whole new layer of pressure to get an agreement done, to open up the government. how is d.c. reacting to that threat? we know the president is very concerned about the direction of the stock market and the economy. reporter: he is concerned about the direction of the stock
market and the economy, though the president feels and this white house feels that the economy is on very solid footing. we have had a lot of movement here in washington, d.c. today with the president going up to capitol hill, he's now back here at the white house for the 3:00 meeting inside the situation room, but very little movement legislatively or at least as it relates to the talks to try to break this stalemate. both sides remain incredibly dug in after last night's prime time address. the president in the oval office last night followed by chuck schumer and nancy pelosi. the president last night said that the situation on the southern border is a humanitarian crisis, is a matter of national security, but did not declare a national emergency. that is an outlet that could potentially give the president a different avenue to try to build a wall along the southern border or at least a continued wall along the southern border. today, though, the president explained why he hasn't gone that route yet, but also suggested that he could if the stalemate persists.
>> i think we might work a deal and if we don't, i may go that route. i have the absolute right to do the national emergency if i want. my threshold will be if i can't make a deal with people that are unreasonable. reporter: the president just got done lunch with senate republicans. as he walked into the capitol earlier today, the president said he thought last night was a bad night for democrats and he exited that meeting by saying he thinks that this is a politically bad situation for democrats as well, but democrats today are saying that the president's speech last night was nothing new. >> the president needs to come to his senses and end this shutdown now. i don't think he persuaded a soul with his talk last night. it was same old, same old, mistruths, divisiveness, didn't
have the effect he had hoped. reporter: chuck schumer, we believe one of those members of the congressional leadership team among democrats who will be here in the white house now, if he's not inside already, inside the situation room, to sit down again with the president face-to-face to try to hammer something out, but it is day 19 here. federal workers on friday are expected to receive their paychecks and there is no clear end in sight as to how this thing will untangle itself. lauren: real people, real lives, real money on the line. blake burman, thank you very much. all this will eventually affect the stock market. right now we do have green arrows. dow is up 142, s&p up 15, nasdaq popping 71. the nasdaq is up in nine of the past ten sessions. this is one of the best starts to any year that we've seen. we are showing you the three major averages but if you look at the russell 2000, best start to the year since 1987. just an hour ago, the federal reserve released their minutes from their december meeting,
when they decided to hike for the fourth time in 2018, and they did vote unanimously to raise rates then, but there were a few members who argued there should be a pause, there should be patience, before they decide to raise interest rates further. this affecting the u.s. dollar, hitting a three-month low right ahead of those minutes and still falling as rivals like the euro and japanese yen do gain. how should investors read into these minutes? straight to the floor show. we have traders at the new york stock exchange and the cme group. gentlemen, thanks for joining us. big day. we do have markets up four days in a row. we heard from the fed, matt cheslack, i want to begin with you. we heard from many fed officials today, it seems that patience is the new name of the game. >> yeah, finally they are going to say we are data dependent and might as well wait and see the data. but really, this is all about the u.s./china relation. if that starts to improve, that's what set the tone for
this day. really hasn't seen much action since the fed minutes were released so i will hang my hat on that and probably a little bit guidance out of apple about what we saw out of them friday, and really, what they were trying to tell us and some of the tech names have been strong today. lauren: ira, what do you think? matt said this rally is more about progress, optimism with china, and the trade talks there, over what the fed does. >> i don't agree with him. i think it's fed talk. i think it's a watershed event that the fed did last friday. i think once they went off auto pilot and they told the market they have their back, that's the way to look at it, the dollar started breaking, currencies going up, supportive to the market as a whole. certainly china's a big event. i think what's driving the market right now is the falling dollar and stable, not higher, interest rates. lauren: phil flynn, oil's punching $52 a barrel. above $50 for the first time this year. >> yeah. you know, we just heard him say
the fed has the market's back. i think saudi arabia has the oil market's back as well. i think ira is absolutely right. when we are talking about the federal reserve, basically signaling to the market that hey, we're going to be very flexible on rates, we're acknowledging what's happening with the global economy, and also with the deal with china, it's going to be very bullish for energy. opec production cuts, better demand expectations, i just think it looks very strong for oil right now. lauren: quick followup, phil, how high do you think prices can go or should they go before it starts to curtail growth by pinching companies and customers in their pocketbooks? >> well, the big number that everybody's talking about right now is $53.50, the 50-day moving average. but you know, oil traders, i will tell you, the producers would love to see that number higher than that. lauren: yeah. matt, do you think we, we being investors, traders where you are, push back on their
rose-colored glasses, because there was awhile right around christmas eve where any glimmer of hope or good news, whether it be on trade or the fed or whathave you, we sold stocks on that news. have we put the rose-colored glasses back on? >> i don't think so. that selloff was a little overextended. valuation levels got more attractive for an investor in a new year to put money to work. that's what we're going to see. we are going to talk about earnings starting next week. that's going to be the other catalyst. if a company has not warned about anything yet and they do in fact have a shortfall in earnings, they will be punished. if not, things look good and maybe that's going to be a sign this market has some likes to it. lauren: we have been warned by many companies already. have to go, guys. thank you so much. we appreciate it. let's check back in on the dow 30. coca-cola and verizon among the biggest losers at this moment. a handful of stocks in the red there. 2019 off to a rockin' start. big questions remain about what the new year will bring for the
stock market, for the job market and the economy overall. wall street legend bob doll here to look at his own crystal ball to tell us how he sees the new year playing out. matt was not optimistic. "countdown" coming right back. ♪ ♪ i can do more to lower my a1c. because my body can still make its own insulin. and i take trulicity once a week to activate my body to release it, like it's supposed to. trulicity is not insulin. it comes in a once-weekly, truly easy-to-use pen. and it works 24/7. trulicity is an injection to improve blood sugar in adults with type 2 diabetes when used with diet and exercise. don't use it as the first medicine to treat diabetes, or if you have type 1 diabetes or diabetic ketoacidosis. don't take trulicity if you or your family have medullary thyroid cancer, you're allergic to trulicity,
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lauren: i don't want to jinx it, but it has been a really good start to 2019. the nasdaq off to its best start to any year since 2006, and the small caps doing even better. the russell 2000, best start since 1987. but will these metrics be enough to propel markets to record highs, the ones we saw in 2018? do we see them again in 2019? we bring in nuvene chief equity strategist bob doll, who says no. in your list for predictions for this year, you are also predicting this. pretty pessimistic here. we were talking in the break and bob doll says it sounds bad but is not as bad. this is bad stuff. the treasury yield flattens, corporate earnings weaken and plenty more. here he anies persis in person, legend, bob doll. you're not optimistic but are you pessimistic? >> no. we think markets will continue to go higher but not a new high. we have had ten straight years
where, when you bought the dip, all you had to do was wait a bit and we will hit a new high. i don't think that's going to happen this year. lauren: we found the bottom? >> i think we found the bottom. lauren: christmas eve? >> christmas eve exactly. 2350 on the s&p. who would have thunk it. that was a gift. part of the rally we saw this year that started in the back end of last year was recovery from the overly concerned recession worries of late 2018. exacerbated by the absence of liquidity because everybody hit the road and went somewhere else. lauren: yeah. okay. is there a recession in 2019, and if not, do we just escape one? how close do we get? >> i don't think we get close. real gdp round numbers in 2018 was 3%. we are going to slow to 2%, probably 2 and a fraction. that's a down shift without question but nowhere near recession. lauren: the world bank downgraded u.s. growth to 2.5%. that's not a recession. >> i will take 2.5. where do i sign? lauren: sign right here. no, hold you to it.
3:17 on whatever day this is, january 9th. we get earnings, they start to come out next week, then we will hear from these major companies, how are you doing amid tariffs and higher interest rates and this and that and all this uncertainty. do you expect to see an earnings recession? >> i don't. i think earnings in the fourth quarter to be reported real soon will be good, not as good as the third quarter, and the trajectory of commentary will lead us to believe they are going to be even slower for the rest of this year. analyst estimates as you know have been slowly but surely, since labor day, coming down for 2019. i'm not sure the reduction in estimates is over, but i think we will have a positive earnings year. lauren: what do you make of the fed? jay powell speaks tomorrow at the economic club in washington, d.c. how do you think he's doing, how do you think the fed is managing everything? i can't even keep track of how many fed officials spoke today but they all seem to have the same message. do you agree with it? >> yes, i think the message is
being orchestrated, the chairman read from the script last time. lauren: literally looked down. >> looked down a couple times, you know. we don't know where neutral is, we have to go past it, automatic pilot. i mean, he was not speaking marketese. i think he's learned i've got to, as chair of the fed, be very careful what i say and how i say it. hopefully he's back on track. lauren: the fed president of chicago evans, he suggested the neutral rate is 3%, 3.25%. how does that sound to you? >> we only know after the fact. i think 3.75% is a little on the high side. lauren: 3.25. that's high? >> that's a little on the high side. i hope it's a little on the high side. if we get to those kind of levels, that means inflation's probably a little higher than we think, and we think inflation for now is quiet, but watch those wage numbers. lauren: the ten-year treasury, 2.7%. what's a comfortable level looking at that benchmark for you? >> i think we will continue to
move slowly but surely higher, assuming no recession and a decent earnings environment and we will close the year closer to 3%. lauren: if wage growth keeps going up, how do you think the fed responds to that? should everything else in the economy look okay. >> this is a very good question. trailing 12 months average hourly earnings, 3.2%. six months ago it was 2.6. so i'm not upset with 3.2, it's great for the consumer, but if we add another .6 in the next six months, we will be knocking on the door of 4% and i think that would get the fed's attention. lauren: you going to share picks with some viewers, how they can make some money? >> our predictions, start with sectors since that's the closest, we like financials, technology and health care. they are our favorite three sectors, with energy a close fourth. i think that's the place people can make some money this year. got to own companies that have some predictability, decent balance sheets, something that they are able to stand up in a
crowd and be noticed. some innovation, some ability to raise prices. we are getting later in the cycle. lauren: when you say tech, what parts of tech? this whole sector has completely changed with privacy, with regulation, and now with the slowdown. >> unlike a year ago, when if you asked that question i would have talked about a lot of megacap growth stocks, today, we're not out of those stocks. we want to supplement it with some value stocks. cisco, hewlett, lower expectation names that have decent cash flow and can manage their way through an okay economy. lauren: bob doll, thank you. we appreciate you. let's check the big board before we go to break. checking your money shows everything's in the green right now. dow is up 161, 30 or so points from the high of the session. western digital, one of the leaders on the s&p 500, after watching these data storage devices at ces in las vegas, shares hitting a six-month low
the day after christmas. today, how are they doing? let's take a look. if you can't take a look, liz claman will tell us. speaking of ces, she's still out there. up next, she talks to the go pro ceo about moving out of china and if he is talking to people about a sale at the company. "countdown" will be right back. i switched to liberty mutual because they let me customize my insurance, and as a fitness junkie, i customize everything. like my bike and my calves. liberty mutual customizes your car insurance so you only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪
lauren: our "countdown" cameras at ces caught everything from the unveiling of the future of on demand air travel, uber's air travel partner bell revealing the design of its full scale vertical takeoff air taxi which uber hopes to launch by 2023. to liz claman's interview with sony's president of north america and sony's robot dog.
the third day of trade negotiations between washington and beijing have come to an end. here are some remarks about i.p. theft concerns. >> we are an i.p. company, the i.p. is all we have, and it is in some ways easy to steal and easy to replicate. it doesn't exchange the threat around i.p. theft. we are very careful to look after it, very careful who we do business with. what we have seen is very few cases where somebody tried to replicate what we've done. generally speaking, the people we work with, it's way easier just to license it from us and get on with it than try to replicate it. lauren: that's not all. in a first on fox business interview, liz asked go pro founder and ceo nick woodman about how china trade and tariffs are impacting the action camera maker. liz: a wave of tech companies
here are having to shape-shift their manufacturing to deal with the trade situation between the u.s. and china. go pro, which has sold 30 million plus of their action cameras, is no different but it's ready to bend so it doesn't break from the trade war. let's talk to the founder and ceo, nick woodman about this. i want to begin with what's happening in china. i know you're moving some, not all of your production, out of china but what are you moving and to where are you moving it? >> well, in the first half of this year, 2019, we are going to be moving our u.s.-bound production of cameras outside of china. we will still be producing cameras that are for non-u.s. markets in china, but all u.s.-bound production will be out of china and we have not yet shared where we're moving production to. liz: do you have a timeline for the move? >> within the first half of 2019. liz: so tell me what is pushing you to do this? what are you seeing on the ground or in the entire
atmosphere of business and sales that brought you guys to this point where you said let's move it? >> well, tariff concerns were the catalyst to get us thinking about it. then as we looked into our options, we recognized that it's actually just smart business for us to move a percentage of our business outside of china to diversify production. there's absolutely benefits to doing so so this is our plan of action, regardless of tariffs, we are going to do this because it's smart business and we are looking forward to it. liz: i want to get to what you guys are unrolling here, rolling out, the hero 7. it is no surprise to anybody, you have such an incredible ipo, there were some scuffles, hero 7, how do you make this the comeback camera? >> well, we experimented with different things over the last few years, some of them worked, some of them didn't work out as well. we thought, and last year we returned to the business model
that we really built the brand on which is a good, better, best product strategy, $199, $299, $399 price points, new lineup every year to really excite consumers, and we really nailed it with the hero 7 line. we have three products, hero 7 white, hero 7 silver and the $399 flagship hero 7 black, which has proven to be the best selling go pro since launch in our history. we shared that over the black friday/cyber monday update. we couldn't be happier with how the product is going. liz: here's the hero 7. tell me how it's different from your previous cameras. >> well, what makes hero 7, this is our flagship and our bestseller, so special, is our engineers were able to develop the best video stabilization in camera in the history of cameras. so we call it gimbol-like
stabilization. its name is hyper-smooth and it eliminates the need for a three axis gimbol in most situations to capture professionally smooth video. liz: i have to ask, because one year ago right here at ces, nick woodman got everybody talking when onstage at a gadget event, said i'm not seeking out somebody to purchase the company, i would consider fielding any kind of offer. that's as a good company leader, you have to do that. since then, everybody from snap to all these other companies, people have talked about, chattered about. have you had any formal conversations? >> you know, i can't comment on that. liz: you know i have to ask. >> what i shared is that yes, as a public company ceo, it's part of my job to maximize return for our shareholders, so if there's strategic opportunities, of course that's something i take a
look at but it's not something we spend our day thinking about. we are really focused on restoring go pro to full year profitability which we are targeting for 2019 and we are feeling good about it. liz: have you talked to any investment bankers? >> no comment. liz: okay. i will let our viewers surmise from that. in the end, though, for a guy who started this company by strapping a little camera on to his hand with rubber bands and old what was it? >> original, the original go pro prototype was just refashioned to hold a single use film camera and the original go pro, most people don't know, was a 35 millimeter camera that you wore on your wrist, you could buy it for 20 bucks at a surf shop and i sold those to stores out of my volkswagen van. i'm now in my 16th year as go pro's ceo and i tell you, it still takes my breath away when i come to a trade show like this and see our booth and see the scale of the brand and people's
love for it. it never gets old. lauren: much more from liz at ces tomorrow when she interviews the lg electronics president. he was one of the keynote speakers at ces. that's at 3:00 p.m. tomorrow. you don't have to miss a single minute of liz. her coverage of ces as well. go to her facebook page to see archives of all her facebook live interviews and she's def t tweeting it all out. follow her @lizclaman and all this archived online for your viewing. lizclaman.com. now let's check the big board. you can see the dow up half a percent, 132 points. s&p up 15 points. nasdaq up 73. that's a solid percent, almost 1.1%. markets up now four days in a row. up next, we are going to -- we are watching and you're seeing pictures -- let's go to
nancy pelosi. she's speaking right now. >> what that means in their lives is tragic in terms of their credit rating, paying the mortgage, paying the rent, paying their car payment, paying their children's tuition and the rest. the president seems to be insensitive to that. he thinks maybe they can just ask their father for more money, but they can't. but they can't. and we think the collateral damage that he's causing by, well, i'm going to yield to leader to talk about that, but i would say this. if you don't understand financial insecurity, then you would have a policy that takes pride in saying i'm going to keep government shut down for months, for years, unless you totally agree to my position. i yield to the leader. >> well, unfortunately, the president just got up and walked out. he asked speaker pelosi will you agree to my wall. she said no.
and he just got up and said then we have nothing to discuss and he just walked out. again, we saw a temper tantrum, because he couldn't get his way and he just walked out of the meeting. i asked him to open up the government. that tomorrow, so many people will have trouble paying their mortgages, paying their bills, dealing with situations when they don't get paid, and i said just why won't you do that? we'll continue to discuss, we're willing to discuss anything, and he said if i open up the government, you won't do what i want. that's cruel. that's callous. that's using millions of innocent people as sort of pawns and it was wrong. then a few minutes later, he sort of slammed the table and when leader pelosi said she didn't agree with the wall, he just walked out and said we have nothing to discuss.
he said it was a waste of his time. that is sad and unfortunate. we want to come to an agreement. we believe in border security. we have different views. we have already offered the president our proposals, which have sat on his desk for several weeks, but this was really, really unfortunate and in my judgment, somewhat unbecoming of a presidency. [ inaudible question ] >> he didn't talk about that. what i will say is that one of the obstacles that we have to an agreement is the stipulation of facts. what the president is claiming to be the situation at the border is not solved by a wall. and we have been for border security. we take our oath to defend the american people very seriously and we had suggestions about how we can do it better than a wall in recognition of what the
challenge is there from an immigration and drugs, et cetera, coming into our country. so that's what's sad. so i said to him, mr. president, the evidence of what's happening does not support the crisis that you describe and therefore, the solution you suggest, because we have a better idea of how to keep our country safe, and it isn't a wall. reporter: madam speaker, what is the breaking point for you? >> before you ask more questions, i want to make a point. this is not a partisan difference. this is a policy difference. i suggested in the white house, in the situation room in the last meeting, that every time we have a policy difference, shutting down the government is the wrong thing to do. it is taking hostages to accomplish your objective and hurting people in the process. now, i've got a list here of six
senators and the chairman of the homeland security committee in the house of representatives. i'm only going to read you one. michael mccall, from the state of texas. you have to understand, too, that a 30-foot concrete wall is a very expensive proposition and there are a lot of other things we can be doing technology-wise to make it a smart border that's more effective and cost-efficient. that's michael mccall, republican chairman of the homeland security committee in the house of representatives. this is not a partisan difference. this is a policy difference. and it is unacceptable to put 800,000 people at risk, 38 million people on food stamps, millions of people who are expecting to get a refund on their taxes, people who want to use the national parks, people who want to get farm assistance in the farm bill, that is why we have four bills on the floor that we're going to send to the
united states senate. now i want to read you one more quote. of course not, when asked you think you ought to shut down government, of course not, he said. remember me? i am the guy that gets us out of shutdowns. it's a failed policy. mitch mcconnell, mitch mcconnell, 2014, cnn. it is a failed policy and we ought to stop it. reporter: is there any hope this ends any time soon? lauren: the president just tweeted, he writes this. just left a meeting with chuck and nancy, a total waste of time, confirming what nancy pelosi and chuck schumer just said. he continues with the tweet, i asked what is going to happen in 30 days if i quickly open things up, are you going to approve border security and he goes on from there.
so now we're in day 19 of this partial government shutdown. it doesn't seem that there is any end in sight because as nancy pelosi and chuck schumer just told us, chuck schumer called it a temper tantrum that the president had. he got up, he walked out of that room after that meeting with the eight congressional leaders, and he got up and walked out when nancy pelosi said to him we will not agree to a border wall. so this is not about security. this is about a wall or fence that separates the u.s. border with mexico. he didn't talk about declaring a national emergency in that particular meeting, that is still an option that the president could explore. when he met with gop senators at the luncheon earlier, after that, he said, president trump said we want a big immigration deal, but we want border security first, and the democrats' position here, and to
their defense, rightfully so, because this is how they have more power, they say open up the government, then we'll talk. the president doesn't want to open up the government without the deal. we're now watching republicans making their way to the cameras. vice president mike pence is about to speak. let's listen in. reporter: did the president walk out of the room? >> thank you all for coming out. i will make a few brief remarks. we just ended a very short meeting in the situation room.
the president invited the republican and democratic leadership here to capitol hill because we are facing not only a partial government shutdown, but we are also facing a humanitarian and security crisis at our southern border. this past week, the president and i and these leaders met on two separate occasions. all those in the room directed staff to spend the entire weekend working over proposals. at the president's direction we incorporated democratic ideas and language in our proposal and made an offer to resolve this impasse and address the crisis at our southern border. today, in this brief meeting, we heard once again that democratic leaders are unwilling to even negotiate to resolve this partial government shutdown or address the crisis at our southern border. they demanded once again that before any negotiations could
begin, that we would have to agree to reopen the government, and the president called the question in the meeting. he asked speaker pelosi that if he opened things up quickly, if he reopened the government quickly, would she be willing to agree to funding for a wall or a barrier on the southern border. and when she said no, the president said good-bye. i know there's millions of americans, hundreds of thousands of federal workers, that are as disappointed as we are that the democrats are unwilling to engage in good faith negotiations, but the american people know we face a serious humanitarian and security crisis at our southern border, and this president, our entire administration working with these republican leaders is going to continue to drive forward to bring about the kind of reforms that will see to the
safety and security of the american people. what the president made clear today is he is going to stand firm to achieve his priorities to build a wall, a steel barrier on the southern border, add additional personnel, additional resources, additional reforms, to stem the crisis that we face on our southern border, and we're very grateful for these republican leaders here and others that were gathered with us for their support. >> i want to clarify a few things. as i just listened to senator schumer, i know he complained the time you had cameras in the meeting. i think we need to bring them back. what he described the meeting to be was totally different than what took place. when we entered the room, the president again calling all the leaders together to solve this problem. even brought a little candy for everybody. he started off talking a little bit about wanting to get this
solved, he even spoke last night saying 45 minutes, i think we can do it in 10. i want to turn the floor over, the president said, to speaker pelosi and schumer. tell us what offer you have, because we all had in our hand from the weekend's work with the vice president and every office had staff there, about where we were, the different offers, the increases of the work you've done to secure this border. so we turned to speaker pelosi. she began to argue whether we even have a crisis or whether facts are true. senator schumer again said we just have to open the government up. the president would go back and forth in a negotiation, in a very respectful way. i saw schumer continue to raise his voice. the president then turned to the speaker and quietly asked okay, nancy, if we open the government up in 30 days, could we have
border security? she raised her hand and said no, not at all. the president calmly said i guess you're still not wanting to deal with the problem. the president wants to solve this problem. that's why he continues to bring them down. that's why he put offers on the table. not once have the democrats offered anything back. the entire time i've been in these meetings, they want to just argue. they want to argue and debate whether what comes across the southern border. people are hurting and as i said before, i will work with anyone that wants to move america forward, that wants to secure our border. this is the goal of everybody in that room. every democrat said in that room they're for border security. but you ask me what american believes border security does not have some form of a barrier. it's only the democrats sitting in that room have i ever found,
and the way they have displayed and their behavior is embarrassing to me. the way to come out to this floor and talk about a meeting in a manner that did not take place in there is disturbing to me. i want to solve this problem. people are hurting so i tell the democrats get back into the room. let's not leave. let's solve this problem, just as the president said. it doesn't even take 45 minutes. we're here and we want to work. >> leader mccarthy i think described it very accurately. we all came to this meeting, i heard the president say last night that this could be solved in 45 minutes. and i had hoped coming to this meeting today that that's what was going to happen, that we were going to sit down and the democrats were going to negotiate in good faith and we were going to come up with a resolution. and they obviously had not moved an inch and haven't moved an inch. they have accused the president of not being willing to
negotiate, but the president is more than willing to negotiate. you had the vice president here the last two weekends meeting with members, meeting with members of staff, trying to move the ball down the field and get us on a path where we can get a solution, and the answer today to the president's question, and that is exactly how it was phrased, and that is that speaker pelosi, if i were to open up the government today, 30 days from now, would you support any funding for border security for a wall, and she said no. and i think the president clearly interpreted that as he rightly should have as clear evidence the democrats have no interest right now in trying to solve this problem. they clearly want the political issue. reporter: where do you go from here? >> well, first of all, i thought the president was very calm in trying to continue to put different options on the table to solve this serious crisis at our border. last night, he laid out some of the problems and challenges that we're facing as a country and
how we can get a solution. today, what he did was start to offer some more ideas, and look, our teams worked over the weekend and we can talk about terms all day long but at some point, the other side has to put a counteroffer on the table. no is not a valid answer if you're serious about solving this problem. so as the president started off laying out not why he wants $5.7 billion but why the experts who are tasked with securing our nation have said it's going to take $5.7 billion to secure the border and deal with this crisis, including building a wall, when nancy pelosi last week, her only answer was to jokingly say she would support a dollar. now, the american people who are watching this shutdown, the families who are going to be missing paychecks this week, it's not fair to them to jokingly say you're willing to only offer a dollar to solve this problem? when you haven't given any serious credible counteroffer. the president has laid out many different options. the president's even said he will change the definition of a wall to work with democrats.
he will move off of the number. he even sent the vice president down weeks ago to offer a negotiation that would solve a lower number than what our national security experts have said, and not one single time have the democrats offered a counter, other than to say a dollar. so today, when the president and by the way, nobody slammed their hand on a table. to mischaracterize some of the things that happened in that meeting is not fair to this process. but at the same time, when the president looks at nancy pelosi and says if i give you another 30 days, will you be willing to support some funding for a wall to secure the border and she says no, not well, maybe a little bit more than a dollar, not some serious counteroffer, but just flat out no, that's not an acceptable answer to a serious crisis at our border, where we're seeing people die. we are seeing the drugs that are pouring in and the families all across this nation that are
being touched in a very negative way by the drugs and the opioids. when you're going to see paychecks being missed and there's a quick way to solve this problem and not once have the democrats offered a single counteroffer. and the president's offered multiple times to negotiate in good faith and the democrats haven't given one counteroffer. that's not an acceptable answer. they need to come back to the table with some kind of serious credible alternative. >> just quickly to add, i am just sorely disappointed. this is a crisis. it is a humanitarian crisis. it is a security crisis. and the reality is that walls work. everywhere we have put up a wall, illegal immigration has been reduced 90% to 95%. do you want to stop the smuggling between ports of entry? you need a wall. do you want to stop the human misery? you need a wall. we have addressed the ports of entry. the vice president worked all weekend personally with
congressional staff. we came up with an offer that would secure the ports of entry by checking every single vehicle for drugs but the criminals also come between ports of entry. it's not an or, it's an and. we need security at ports of entry and between ports of entry. i will let you take questions, but this is a crisis, it's up to the united states congress to do their job, to take the leadership that the vice president and president are taking and fix this on behalf of all americans. >> please. i can't hear you. reporter: the president is standing firm on his demand for a border wall. how is that compromise in this context? what are you going to say to 800,000 federal workers who are not getting their first paycheck this friday, tsa workers, people whose job it is to protect people, what do you say to them as we are going into 20 days of this shutdown? >> i would say to every american that this president and this
administration takes very seriously our solemn obligation to do what's necessary to protect the american people and uphold our laws. the offer that we put at the president's direction on the table, the offer that was in front of democrat leaders again today in the situation room represents a combination of approaches. certainly there's the president's wall, a steel barrier on the southern border, and the president put his number on the table. but we've also added additional resources for personnel, additional reforms, humanitarian assistance, changes in our asylum laws, some of which was informed by our earlier discussions with democrat leaders. we have been working in good faith over the last three weeks to resolve not just this partial government shutdown, but to address what is an undeniable crisis at our southern border. even "the washington post" called it a bona fide emergency. we have 60,000 people a month
being apprehended at our borders and two-thirds of them are now families and unaccompanied minors. that's not a situation that our border patrol system was ever designed to deal with. so we need reforms, we need changes, we need a wall, a physical barrier, but i think what would have to be distressing to 800,000 federal workers and the tens of millions of americans, is the answer in all of this from the democrats is we will not negotiate. reporter: how does it help that the president walked out of the room? >> i think the president made his position very clear today that there will be no deal without a wall. there will be no deal without the priorities the president has put on the table. but if you look at the proposal
that the president directed us to offer this weekend after spending two days with senior staff, two meetings with leadership, it reflects democrat priorities as well. frankly, we continue to hear about the idea that congress, and i know there will be votes tomorrow, that the house will take up bills to open portions of the government and the president literally called the question, he said if i opened up the government quickly, would you agree to border security and a wall. the speaker of the house said no. at that point, i think the president thought there was no longer any reason to be talking at this meeting, but as we said afterwards and we had conversations with the leaders before they left, is we hope they will come back to the table. i'd say to every american looking on who shares our frustration, call your congressman. call your senator. if you think the democrats should be negotiating in good
faith to resolve this partial government shutdown and to address the humanitarian and security crisis at our southern border, then you want to call your congressman, call your senator, tell them come back to the table and i will tell you the door here at the white house is wide open. we're ready to sit down with these leaders and with democratic leaders -- reporter: my question to you is democrats said the president was slamming his hand on the table and that he walked out. can you talk a little, can you just categorize what the president did in the meeting and also, are we any closer to having a national emergency declared if meetings are going like this and are so contentious? >> well, the president walked into the room and passed out candy. it's true. i don't recall him ever raising his voice or slamming his hand. but this is a president who
feels very strongly about his commitment to see to the security of the american people. he brought the whole issue of illegal immigration at the center of the national debate when he sought this office and we actually saw a decline in illegal immigration at our southern border in our first year in office, but the reality is because of the lack of reforms, because of the lack of a wall, because of the loopholes in our laws today, we are now seeing a precipitous rise in families and unaccompanied children being driven by human traffickers and cartels, individuals who are exploiting vulnerable families, encouraging them to make the long and dangerous journey up the peninsula, and you could he feels this passionately. and he left the room today because speaker nancy pelosi said that even if he gave her what she wanted, she would never agree to the border security
priorities that we have on the table. that was unacceptable. [shouting questions ♪ >> is the president now closer to declaring a national emergency? will he now do it? >> he is looking at that he believes he has the authority to do it. the president's belief, and i know it is the belief of these republican leaders as well. congress should just do their job. politics is the art of possible. i served in the congress for 12 years. i remember times when there were strong feelings on emotions but eventually, leaders came together, sat down with presidents, often times in opposite political parties. he heard each other's priorities, they negotitated a agreement and they moved forward. that is what american people expect to us do today. when the speaker of the house comes to the table, with the leader of the democrats in the
senate, after we've made days of good-faith negotiations, with an offer on the table, and their only answer is, they will not negotiate until we reopen the government, and when the president says, if i gave you exactly what you're asking for, would you agree to border security and a wall? and they say no. i think the american people deserve better, i think these leaders know the american people deserve better. and i can, i can promise the american people this president, republicans in the house and senate, are going to continue to stand firm until we get the resources and the reforms necessary to end the humanitarian crisis on our southern border, to end the security crisis on our southern border. then and only then will we end this partial government shutdown [shouting questions]
lauren: there we have it. democratic side, republican side, both digging in their heels. the markets reacting. markets up 140 points before all of this. [closing bell rings] volatility continues. connell: close the market. connell: get out of here melissa: i'm melissa francis. connell: it didn't go well. i'm connell mcshane. this is after the bell. still higher. dow up 89. nasdaq higher