tv Countdown to the Closing Bell With Liz Claman FOX Business January 15, 2019 3:00pm-4:00pm EST
building of worries, huh? thank you very much. we were slipping big-time. we were clinging. we're coming back somewhat. liz claman a lot of news as i hand it over to you. the markets up now. liz: the president of the european union has just issued this statement, quote, risk of a disorderly withdrawal. here's the key word, disorderly withdrawal of the united kingdom from the eu has now increased. he just issued this statement. it comes 20 minutes after u.k.'s parliament members gave prime minister may's brexit with a deal a crushing defeat. over 20 minutes ago the house of parliament trounced may's break up plan with the eu. these are still live pictures inside the house of parliament as the debate continues to rage over the next steps. but we should tell you this, moments after the decision, which turned out to be a loss by about 230 votes.
theresa may said she's still in it. she's not conceding here. she will continue to work with her eu partners, maybe to massage the deal, get a better deal? if the house maintains confidence in her government, and that's a big if, now, labour leader jeremy corbin has already within the last 21 minutes put forward a motion for no competence in the may government. and by the way, i'm seeing that he says that vote could start to be debated at least debated by tomorrow. now, right before the results, the market slid initially. we will show you some intraday pictures here. because at one point, you heard charles mention this, the dow jones industrials almost went flat. now remember, high of the session, a gain of 189. went up just about 10 points. and now you can see the recovery is in play, although we haven't regained everything. the dow now up 89 points. we can look at the s&p 500. that for its part is up 20 points. the nasdaq better by 95.
same pattern, bit of a dip there, and then the climb back. now, here's the biggest point of contention, so called irish backstop, now what is the backstop? think of it if you can as an insurance policy that would have insured no hard border between northern ireland, which is of course part of the u.k. and the republic of ireland which is an eu member, no matter what the outcome of future trade talks. so that would have kept that border that you see in the red line, between ireland and northern ireland open for trade and trucks to go through and people to go through, unencumbered. but people in the u.k. parliament did not like that because they felt that they would -- that would mean they would be beholden to the eu and its rules. this we know, may is required by parliament to come back within three working days with a motion setting out her next step or steps. to ashley webster, live in london with breaking details as this pretty dramatic story unfolds, minute by minute.
now the word disorderly. the worry of a disorderly brexit is being floated by the european union. what do you think, ash? >> well, it's interesting yes, indeed jean-claude is correct. what a humiliating night for theresa may. humbling is another word that's being used. unprecedented the worst parliamentary defeat for a government in modern times in the united kingdom. bottom line is she remains defiant. she now has three working days, which will take us through the end of the week, so she will come back here on monday. we heard from downing street earlier today, that if it is defeated, she will continue to try and sell this plan, try and win some more concessions and bring it back here and try again. but it is very unlikely to happen. you mentioned the jeremy corbin, the labour leader has tabled a motion of no confidence. that will be debated tomorrow morning. it is not expected to succeed. it's really more of a symbolic move, if you like, saying we need a change of government. i don't think anyone believes
that jeremy corbin could do a better job than theresa may when it comes to winning things from the european union. we are faced with disorderly as jean-claude put it possibilities, a second referendum, a no brexit deal, perhaps pushing back the article deadline date, push it back from march 29th. whatever the outcome, the uncertainty surrounding brexit continues to confound everybody. and the problem is, if you try and concede a little ground on this side of the issue, you start losing support from those on the other side. there is no majority for any of the issues that brexit brings up and that backstop, the irish backstop, and the fear that eu rules will still be applicable to northern ireland is a huge stumbling block, one that the eu has dug its heels over. the question is, how do we get past this? it's a very good question and one that theresa may at least for now continues to battle with. liz? liz: ashley, the health minister
as it pertains to jeremy corbin of the labour party, a controversial figure depending on which side you are on, this health minister saying that i do not want to see -- actually let me get this right. is it a he or a she, the health minister, do you know, ash? >> i believe it is a he. liz: okay, all right. they don't like jeremy corbin let's put it that way. they see no taste, no taste at all for having jeremy corbin as the next prime minister. so we've got a little bit of agitation here, and i do want to just quickly also point out, ashley, because this just hit the tape, that the city of london corporation says financial stability must not be jeopardized in this game of high-stakes political poker, and also they are saying that lawmakers must act to protect the u.k. economy. i mean, what are you hearing? is there a huge fear that suddenly there will be spasms
and gyrations in the economy? >> no, but i think the fear of a no brexit, the predictions, if you like, of what would happen under a no deal brexit has really been laid out very carefully by many sides, saying it would be a big impact to the united kingdom. there are fears that there will be huge back ups at the ports, that there could be food shortages, consumer prices would go up because the u.k. would have to start paying tariffs on everything, under wta rules and there could be medical shortages as well. now, people on the other side say that's all scare mongering. it will be fine. u.k. will be able to find new trade partners, the u.s., canada, india markets they can't get access to because they are a member of the eu now. it depends on who you believe. from a financial point of view and certainly the markets, two things the markets doesn't want, it doesn't want a no deal because it's the instability created would certainly hit the pound. also they don't want jeremy corbin as prime minister.
he's a socialist. he likes to -- he's a great believer in big government. and he's not a big believer in business. so you know, if you think of the opposite of donald trump when it comes to he wants more taxes, he wants more regulation, but i got to say, liz, i don't think he would become prime minister. the latest poll here, showed that the conservative party still have a 6 point lead, despite the struggles with trying to get the brexit deal approved. liz: we have the u.k. pound at $1.28 right now, ashley, just wanted to let you know that. we have at 1.2835, down very slightly. by the way, the dow jones industrials now up triple digits again. we're better by 102 point. i want to bring into the conversation ambassador anthony gardner, he is live in london and a fox business exclusive. he was the u.s. ambassador to the european union. so we are thrilled that you are joining us. give me your initial gut reaction and sense of what happens next, ambassador.
>> it's great to be back on the program. clearly a humiliating defeat, which is the result, i hate to say it, of over two years of failing to be straight with the british people about the real choices on the table and the costs and the benefits of each of those options. but we are where we are. i think she's going to be under enormous pressure now to make two statements. the first is that the country, the u.k. will not crash out without a deal. there is a pressure from the business community to make that statement. the second is that there will be a request to extend the article 50 process, more time clearly is needed. the result of today's vote, which was dramatic, you know, the government was hoping for maybe a losing by 50, maybe 100 max. she lost by over 200 votes. the consequences of this stem from a game of chicken that went really badly wrong. she was saying you accept my
deal or you know, catastrophe. the problem is a lot of the factions actually want there to be a no deal in the case of the hard levers, in the case of labour, they want defeat for the government to table a no confidence motion. and there's some who believe that saying no to her deal will result in the peoples vote. liz: we were just showing video of the actual moment. i don't know if you saw the video earlier of theresa may where she literally went like -- you could see the frustration. ambassador, that leads me to the question, how much of the fault lies on her shoulders when it comes to a failure of proper and clear concise communication of the pros and the cons to explain this? you know, i'm not on the ground there, but could that job have been done more effectively? >> well, i view absolutely yes. i have been following this for two years. a lot of delusions were
entertained, unfortunately, by all sides, but particularly i think by this government, not being straight about really what the u.k.'s negotiating leverage was and is, what the eu could possibly accept, and what the consequences of the real decisions of the options on the table were. so my view a lot of unnecessary time has been wasted. you know, she can now go back and seek to get further clarifications from the eu, which sounds like what she intends to do, but there's not much more that the eu can do beyond what is already said in a letter that was sent by the president of the european commission, european council, yesterday to may, in which they tried to clarify what this backstop means and that they intend together with the u.k. to make it temporary -- liz: can we -- as you're talking, ambassador, i want to give an update. the european banks are mostly lower except for deutsche bank which is up a quarter of a percent. but none of these are u.k. banks
at the moment, on the screen. we do have our dow jones industrials up 133 points. and as you're talking, i don't know if we can put up what theresa may's brexit deal was, but in essence, it allowed a relationship to continue with the european union involving this cross border trade with northern ireland and ireland. you would have to though be beholden to the eu's regulations. it is like being part of a golf club. if you leave the golf club, you don't get to play there anymore, but you don't have pay the dues. if you leave the golf club and want to pay on occasion and play on occasion, you are still subject to their rules. is that sort of the problem that people who voted no on this had? >> i think you put your finger on it. you know, the problem for many years has been the u.k. when it was, still is a member of the eu, tried to have all the benefits of not being a member, through a lot of opt-outs. now it took a decision to leave, but wanted to have all the benefits of being a member. you can't have it both ways.
if you leave, you actually leave, and her deal tried to straddle this uncomfortable position of being out but actually being in for many purposes. right? you know, the problem has been as you said the backstop. many people had hoped that the u.k. would have a unilaterally right of decision -- unilateral right of decision to terminate the backstop. the eu said no we can't do that. we will issue a clarification to say we will work expeditiously for an alternative arrangement, free trade agreement that will make the backstop no longer necessary. if we can't reach that deal by december 2020, either we extend the transition or we will continue to negotiate to a deal that will no longer make it necessary. but the u.k. cannot have a unilateral right to terminate it. liz: ambassador, great to have you. thank you for staying up late there. we do appreciate it. ambassador anthony gardner, and i do just want to quickly let you know that the brexit spokesperson says prime minister theresa may cannot carry on with
this deal. to our traders now, we're getting reaction all across the board and to the world. we'll take that right after the break. dow jones industrials up 126 points. we do have green on the screen, not so for the transports at the moment. but u.s. listed shares of the united kingdom etf are moving higher right now. so we're seeing an extension of gains after lawmakers soundly rejected the brexit deal of prime minister theresa may. don't go away. jardiance asked:
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liz: and we are keeping a very close eye on both the u.k. parliament and this by the way is the exterior of -- it's certainly belies what's going on inside after an epic failure of theresa may, the prime minister of u.k. and her brexit deal vote. it went down and now we've got the u.k. pound right now at $1.28. it was at $1.27 just before the voting began. now, i also want to mention, look at the nasdaq, at the moment. we do have that climbing back up to session highs. want to let you know that session highs are a gain of 119. we're up 106. let me get to our traders on the
floor show. guys, beginning first with john corpina, interesting reaction, as the vote started to take place, the dow looked like it was going to the flat line, it is recovering, this is a rally relief, yet we do know there's still uncertainty about what happens next. >> yes, in the long-term, there's uncertainty. in the short-term, that traders watch, no news is good news at this point right now. everything is status quo for now until you know for the next few days. she has until monday, probably will come back sooner than that. she's off to brussels. as for now, we did see trading dip a little bit, not sharp, just kind of faded off and came right back up. so staying that course of the headlines that we've seen coming out that nothing is changing as of now is not going to overly affect our markets. that could clearly change by friday or monday. traders look on a short micro spasm of time as opposed to much longer time.
overall our markets are healthy. we have rebounded off our lows. all good psychological numbers that investors can see. goldman sachs coming out tomorrow, should be interesting. probably going to hear that same mentality that we heard from jp morgan, looking forward definitely some uncertainty as far as that's concerned, as far as trading, as far as investment banking. a lot of volatility happening. liz: todd, and then let me just reflect this back on to the nasdaq and stocks like netflix, which had great news today, and not so great for customers, because they are going to be hiking rates, but when you have pricing power and the market doesn't reject that, because we remember a couple of years ago, when netflix tried this, and it was horrible. it did not work well for them. their stock has responded very positively. and the nasdaq could very well close above 7,000 today for the first time in a month. so do you pile on here? do you wait for the next opportunity for pullback opportunity i guess to buy?
>> well, there's going to be opportunities, liz. we're going to see pullbacks in the ek wity markets -- equity markets. the market is not overreacting to what's happening in the u.k. we are not see equities bounce on the intraday swings we have seen. i think right now the biggest thing that's being overlooked is that the fed president from kansas city has flipped from a massive hawk to now possibly a dove and that's also helping stocks maintain the gains. i think ultimately the market is going to absorb what's happened. there will be buying opportunities down the road, especially with earnings season upon us. and i think the netflix news is great. yes, they have pricing power, not so great if you are a customer, though. liz: can i also just say phil flynn we can't ignore the headlines on trade? we have the chinese saying they have accepted the invitation and they will be coming here, leading a delegation in just a couple of weeks to continue trade talks. that's a good sign. but then you kind of have that tempered with robert lighthizer,
the trade representative coming out saying on real substantive issues that the u.s. cares about there has not been real progress. >> i think that's the big question for the chinese trade talks, how much are they willing to give? so far they have thrown a few olive branches, but when it really gets to the hard part of intellectual property and the bigger issues, you know, they have been less forthcoming. but i think it is going to come down to that meeting. just like this brexit here, you know, this is a story that keeps going on and on. that's why the markets aren't that freaked out because we have seen this story before. it's played out. it is the traditional kicking the can down the road. i think when it comes to the china talks, china wants to make a deal. the u.s. wants to make a deal. they are being cagey. they don't want to give up the best of what they got till the last minute. but make no mistake about it, i think they will give up a lot to get this deal done. liz: yeah. >> liz, i want to make a point to what todd said before. our markets did not get very volatile, they didn't overreact
to what's happening on the pond. our markets don't react to what's happened over here. talking about the government shutdown. i didn't think we were going to get big reaction to any of the news that was coming out of europe. liz: it is great to see you guys and get your perspective. the dow is still up just under 100 points we will keep an eye on this and much more. thank you very much. jp morgan chase chairman and ceo -- sorry, breaking news and it is what? boris johnson, we all know boris johnson, the former mayor of london is now making comments at this very moment. and he is in essence saying -- he has not ruled out a no deal brexit. he says, quote, we should be actively preparing for no deal with ever more enthusiasm. he's been a brexitier, meaning
hard get out, shut the doors we're done with the european union relationship. the fact that he is saying this is not a shock, but the fact he's in essence saying that the issue is not the leadership of the conservative party, but rather it is time to just go for what the people had originally voted for, back in june of 2016, that of course is certainly crucial. theresa may's spokesperson is also making comments. and this spokesperson is saying there will be contact with brussels in the coming days. brussels of course is the seat of the european union. she's got three days; right? and of course there is a no-confidence vote that's been pushed forth by the labour party, jeremy corbin. he says that will be gin to be debated tomorrow but already there's major pushback on that. our stock market is fine at the moment. dow jones industrials up 106. we are above 24,000 right now at 24,017. the banks, the shutdown and what
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liz: breaking news and this from the party that wants to theresa may out, the labour party spokesperson is now hitting the tape with quite a few comments here, saying, they want a deal. they just don't want this particular deal. now, here's what they are saying, they are saying that in essence if we're not able to get an election, all options are on the table including a second referendum, but that no amount of talks will change the deal. so listen, the u.k. labour party and of course the leader is jeremy corbin, they are not exactly clear about what they are saying here, but i'm looking at this, and what i find
absolutely fascinating is their message to voters is we will seek to bridge the brexit divide in britain. so they are trying to be sort of that bridge between the yeas and the nays. also the labor party spokesperson is saying we accept the referendum result, but they do want a deal. they don't like this one they just voted on. with all these breaking headlines swirling aross the pond -- across the pond, we have government problems of our own, that is, the shutdown. all of this could it have consequences for banks in the u.k. and what about here? jpmorgan chase chairman and ceo warn today about grim consequences of extended government shutdown. here's the quote, someone estimated if it goes on for the whole quarter, it could reduce growth to zero. dimon also told reporters this morning we just have to deal with that and it is more of a political issue than anything
else. it is what it is. now, he did add that a functional washington, meaning one that actually works, could reinforce, quote, already strong consumer and business sentiment. but jpmorgan's fourth quarter earnings missed profit expectations for the first time in 15 quarters. a quarter we should note that was barely touched by the shutdown. was jamie dimon blaming the shutdown for the miss? let's bring in dick bove, the man who translates bank speak better than anybody. dick, we have a lot to really discuss and attack here. help us see this clearly. i want to make sure we get this right, was jamie dimon forecasting trouble ahead or spinning last quarter's problems at his banks? i ask that because the government shutdown started december 22nd, just a few days before the end of the quarter. >> no, i think he was forecasting trouble ahead. i think some of the statements he made were more negative than i have ever heard any bank ceo state ever. for example, walking away from
the quote you just gave, he said that he had told his lending officers if they had reduced size of their loan book, that would be okay. he said he didn't care what would happen in the first quarter because over the longer term, they would do okay. he also and the cfo seem to reinforce the view that they didn't want to be aggressive underwriters at the present time. they were willing to give up business to nonbanks because they don't like what is going on in the overall -- whether it's the economy or in the loan industry itself. bank ceos don't say those things. when they do say those things, you have to take heed because they are not very positive. liz: dick, let me broaden and ask, in essence do you think the shutdown, how do you expect that it might in this current quarter when we eventually do get the earnings, how might it affect other banks?
and would a size of a bank be incrementally affected sort of if it was a smaller bank or larger one is going to be hit more dramatically? >> i think it is the type of loan that the bank makes is most important. in other words, most commercial banks in the united states are just that. they make commercial loans. to the degree that we're seeing companies pull back and what we have to look at is what is happening to middle market lending in the united states. what are these banks telling us about that? if they are telling us that basically middle market lending is weakening, what they are telling us is that the confidence of the business leaders has weakened somewhat, and they don't want to take aggressive moves to expand their businesses, and of course, if that happens, then there will be significant problems with the economy. liz: yeah. i'm wondering because you talk about what's happening with the economy. to me, the data looked pretty strong. we got that very solid december jobs report, but if you started to count how many voices at the
federal reserve have joined the chorus, they would put the tabernacle to shame, this is a huge number of voices that came out, first on fox business with the vice chair who was saying he felt it was great to be patient, that the data looked fine but we can afford to be patient. and then i want to say was it around what time probably around 11:40 a.m. eastern, i think we have a graphic here for this, the minneapolis fed said no need to tap the brakes, meaning the rate hikes, as long as inflation is low, doesn't see the data to sort of support future hikes. then esther george of kansas city turned dovish. she had been more of an eagle or a hawk, she said might be a good time to pause and be patient. finally robert kaplan warned around 1:40 p.m. eastern that the stimulus bump -- i found this interesting -- stimulus
bump from the tax cuts is starting to wane. >> my perception has been what it was, you know, a few months ago, that if the president of the united states, you know, goes after the fed, the fed will cave. and the reason for that is if you go back in history, no one who created the federal reserve back in the 1906 and 1913 period ever imagined that the fed would be independent. there was no desire whatsoever for it to be independent. in fact, there was a huge fight to make sure that it would not be independent. and other than the last couple of presidents who have kind of turned a blind eye to the fed, every president of the united states has gone after the fed. and when people go after the fed, the fed doesn't fight. the fed steps back. that's exactly what they did. now they're finding all sorts of economic reasons, we want to be data dependent, and that means we don't know what's going on. you know, so i think that's why these people have all swung
their positions. but the fact is, they are right. the fed was too tight. the fed should have eased. the fed will ease. and that will be positive for the economy. liz: we've got to deal with our own economy and get a commercial break in here. thank you very much for joining us, dick bove of raferty. dow is up 118. we're coming right back. i can do more to lower my a1c. because my body can still make its own insulin. i take trulicity once a week to activate my body to release its own insulin, like it's supposed to. trulicity is not insulin. it works 24/7. it comes in an easy-to-use pen. and i may even lose a little weight. 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,
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turn around, go back to the eu in brussels and say this will not work for us, and johnson is adding that the backstop has got to go. we should actively, quote, be preparing for no deal with ever more enthusiasm. that from the always colorful boris johnson, who for once passed on the vitriol against the conservative leadership here who has tried to strike some type of deal, plus brexit which just failed miserably in the parliament in the last hour. breaking news, update you on the questioning on capitol hill of william barr, president trump's nominee for attorney general. the 68-year-old being quizzed right now by democratic senator patrick leahy of vermont. earlier a bit of a jaw dropper when barr said he does not think special investigator robert mueller is conducting a witch hunt when it comes to trump administration collusion with russia and wants mueller to finish his work and complete the investigation. barr said quote i will not be
bullied into doing anything i think is wrong. he also said the only thing he's projected our president is to -- promised our president is to run the department with professionalism and integrity. he also said he's ready to prove those words by recusing himself -- and here comes the business angle here -- from the department of justice's appeal in the at&t time warner merger trial due to previous statements he made as an at&t board member. he had said back then he did not think antitrust regulators had even a case against the 85 billion dollars mega merger. so now he's in an interestingly awkward position of wanting to be the president's guy, when it comes to being the attorney general, but the president is against this at&t time warner merger, so apparently is the federal communications commission. we also have this breaking in the last hour, democratic leadership is calling on the president to reopen the government and then continue negotiations on border security. chuck schumer, senator from new
york, speaking on capitol hill just moments ago, calling on president trump to meet with the federal workers being impacted by the shutdown. he says meet with them, and he says, quote, he is not winning this fight, end quote. mark the dow here up 120 points. this all comes after president trump hosted a working lunch at the white house. the president invited both republicans and democrats to come to the table to work on ending this longest government shutdown in u.s. history, now into its fourth week. but no democrats took him up on the invitation. let's bring in white house reporter blake burman. we also got an update on how much the shutdown is really going to impact the american economy, and it's been revised by the trump administration. doesn't look like an even better picture here at all. >> yeah, they have revised it to .13% growth, downward revision, basically for every week that the shutdown goes on, it would impact growth by .13%. if you were to extrapolate that
out, if, and this is a big if, liz, over the first quarter, say, that would be about 1.7% knocked off of gdp. so you've got the administration today acknowledging that this shutdown has some very very real effects on the economy, especially when you start to add it up, day by day, week by week now and potentially i guess one of the questions is, is this going to be a month by month scenario? you talked about that lunch here at the white house. the white house says they invited about a handful or so of democrats to come over and sit down with president trump today. republicans showed up. not a single democrat showed up. many of those republicans who did come to the table say they are perplexed. >> how do we find a way to negotiate with democrats? it's unfortunate this was supposed to be a bipartisan lunch. but not a single democrat offered to come here and negotiate how we end this partial shutdown. it's disappointing to me. >> come to the table and let's start passing proposals back and forth, every day.
>> however, chuck schumer the top democrat in the senate is now calling on -- or at least saying that he's trying to shift the pressure on to the senate majority leader mitch mcconnell. schumer saying on the senate floor today that mcconnell should allow for votes on spending bills that would keep the government open and in the interim allow the debate on border security. >> the reason we have been unable to make any progress is that president trump is not yet interested in making progress. so there's only one person who can help america break through this gridlock, leader mitch mcconnell. >> real world impacts, liz, members of the coast guard today will miss their mid month paycheck. the coast guard commandant saying in a letter to members of the coast guard today writing the following saying quote to the best of my knowledge this marks the first time in our history that servicemembers in the u.s. armed force have not been paid during a lapse in government appropriations. he ends by writing, stay the
course, stand the watch and serve with pride, you are not and will not be forgotten. liz? liz: blake, thank you very much. blake burman. when we come back, charlie gasparino, him again, actually he's got some breaking news on an important story here. we will tell you what it is, when we come back. the dow is still climbing, now up 139 points. don't go away. val, vern... i'm off to college and i'm not gonna be around... i'm worried about my parents' retirement. oh, don't worry.
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who we are as people and making everybody feel welcome. ordering custom ink t-shirts has been a really smart decision for our business. - [narrator] custom ink has hundreds of products and free shipping. upload your logo or start your design today at customink.com. liz: so we've seen a little bit of gyration with the u.k. pound sterling, the currency there right now. it is up slightly. remember it had been down slightly. right now it takes $1.2881 to buy a single pound. regardless because this is moving around enough, we have our first major bank making a call. this just in, ubs, after the brexit vote is warning
investors, and here it is, quote, investors would be wise to limit any u.k. exposure at benchmark levels. what are bench mark levels? they're saying we don't advocate investors take directional views, that means long or short, on sterling, the currency, the bonds, or u.k. stocks while clarity void remains so large. >> clarity void. liz: i know, clarity void. what they mean is brexit is still in motion. can you all scream like i'm mad and i'm not going to take it anymore. >> ubs is being insolent. [laughter] liz: i need you to be quiet. our government has its own problems as workers are caught in middle of the stand off. charlie gasparino has more. >> how about the average employee, listen, i do a lot of big wall street stories about major banks, stuff about ubs,
but, you know, economics affects the average person. there's one economic issue that's out there that's affecting average people, if you are a government employee, how do you make ends meet? what is the government telling you the average government employee about how to make ends meet? well, it's interesting. they are telling them they should go get unemployment insurance. now that we're about a month into it. they are also telling them if you get unemployment insurance, this is interesting, two agencies, the sec and the doj we understand are alerting people to get unemployment insurance, why do i only care about those? not that i only care, these are where my sources are, doj, sec, i have been covering business and legal affairs for a long time. they are also telling these employees if you get the unemployment insurance, be ready to pay it back because remember, when the government reopens at some point, the retroactive pay is going to come in a check. they are going to get their pay that they didn't get now. they apparently have to pay back the unemployment insurance. liz: they are saying no pro bono work? >> it is weird. we got a doj memorandum.
they say they must repay the unemployment insurance. they don't want them to do pro bono work in any official capacity. i guess you shouldn't be out there doing any telethons or anything like that. they are also saying they may not volunteer -- this was a quote, from the doj, their little term sheet, volunteer their services -- may not volunteer their services and continue working on department business during a government shutdown. the reason why i thought they were just ignoring me because they all hate me when i called the pr people at the sec, they weren't getting back to me. they are just not there. i feel better. they don't actually -- they don't hate me. liz: i wouldn't deduce that. [laughter] >> anyway, so i'm actually loved by these people, i think. they are not in their office. that's what's going on now. they are not answering phones. government shutdown, if you don't have money, you know, i read a report, and i don't know if this is true, but if it is true, it is a bizarre turn, that
someone told -- recommended that some government employees start garage sales if they need the bucks. that's been out there. i'm just telling you. liz: can i just take it to jamie dimon? jamie dimon for president at this point, he said that a functioning government helps business. >> yes. liz: and he very much would like to see this dealt with. he's a master negotiator. >> you mentioned that, his earnings call today. he believes that gdp could be zero. that follows a report i had last friday where i said inside the white house, they're all worried about the impact on gdp. liz: blake just reported remember, a few days ago, it was one tenth of a percent hit every two weeks that the government shutdown goes on. they just more than doubled that. it is going to be .13% every week. >> according to the people i know inside the white house, this is the week that it starts to really show up in output and
jobs numbers. we should point out, jamie dimon's reported today, jpmorgan, goldman sachs tomorrow. watch the trading revenues. do they pull something out of their hat to counteract a very bad december for trading? liz: who would be his vice president? we will get that tomorrow. >> me. liz: no, not you. charlie gasparino, thank you. we will be right back. the dow is up 133 now. nasdaq up 109. . .
♪ liz: the transports are tumbling. remember yesterday at this time, the dow transports were the only names that turned green in a sea of red. right now we're down about a percent here or 78 points for the transports. what is in them? fedex, alaska air, ups, j.b. hunt transport. the index spans trains, planes, automobiles but some portfolio picks for hennessey for income manager mark duval focus on transports plus one extra.
good to see you, mark, what do you like in the transports? forget today, down one day. big deal. >> good to see you. they are down today. what we like in all three names we're talking about, carnival, fedex, southwest airlines are down in the fourth quarter for different reasons but we think all of them possess competitive advantages sustainable, balance sheets trade at valuations, significant discounts to the market overall. that is what we look with the hennessey income fund. they are well-positioned for income growth and stockholders should be well rewarded. liz: let me get to southwest, to me, regional airline over many, many years, best in class, thanks to bless his heart, herb kelleher, where do you see this going in the future? >> southwest is among the low cost airlines. they raised 2019 for costs. cost as little bit higher than
expected. on normal things like airport infrastructure wages, salaries for employees, technology, nothing out of the order marry but higher than people thought. management is usually pretty conservative. that might be upside to the numbers. the positive, passenger demand is strong, revenue has been increasing. the balance sheet is very strong, so no net debt. praying cash flow $4 billion a year, trades at significant discount to the market. we think competitive advantage southwest maintains is still intact. should do well long term. liz: you like fedex. one pick outside of transports is boat. planes, trains automobiles. you like carnival. we have 15 seconds. that is not a lot. what do you love about it? >> carnival is down. we like the long term story demographics are positive. industry with few competitors. cost as fortune to build the ships. 500 million to billion to build a new ship.
not a lot of competition. trades at a discount to the market. [closing bell rings] liz: mark, we'll put your picks on the facebook page. nasdaq set to close above 7,000 for the first time since december 13th. that will dot it for "the claman countdown." green on the screen. now "after the bell." connell: the crucial brexit deal failed, failed big time in the united states. melissa: big time. connell: big time. that said, the dow soaring during the final minutes of trading, ending the session fairly close to session highs. snapping a two-day losing streak. up 150 points as we settle in. s&p 500 in the green. nasdaq up. i'm connell mcshane. melissa: i'm melissa francis. we have more on the big market movers but here is what is new at this hour. crushing defeat for theresa may. the british parliament rejecting the prime minister's