tv The Willis Report FOX Business October 30, 2012 9:00pm-10:00pm EDT
9:00 a.m. to take you through the first half-hour of trading. see how we do. right after don imus. you can laugh and then lose money all at the same time. we will keep you on guard. all the time. your money, our life. gerri: hello, i am gerri willis. it could be days, weeks before people here in northeast start getting their lives back to normal. the devastation from superstorm sandy, is massive. in aftermath of storm 39 people are dead tonight, in manhattan, 18 people. more than 8 million people are without power, here in network america city especially, much of manhattan still without power, we'll cover other parts of the region as well, city's transit system still shut down and could be for days, but the thousand mile wide storm is moving west today across pennsylvania, and
ohio. with winds near 50-miles an hour, it will head back to new york tate later tonight, the storm is getting weaker, forecasters warn sandy could bring heavy rain and flooding, sandy brought blizzard conditions to west virginia, and neighboring states like north carolina, with snowfall nearing 3 feet in some places, some worse damage in new jersey, sandy sent tidal rav tied waivee throughout -- wave surge throughout the night, jeff flock is joining us from point plsant, new jersey, what are you seeing. i'm just glad to see you again. i've been worried watching you cover the storm. >> reporter: it started with you you gerri. look at this street. looking at this street, almost like a snowstorm but not going to melt, it is sand, if i dig
far enough down, if i had a half hour i might not be able to dig all of the way down, some main that you arthoroughfares have bd already, people are going house-to-house, shutting down a gas, because that is till on power, is out. going house-to-house, making sure they have not missed anyone, no fatalities but it of quite a ride last night, as i mentioned t you, i did get washed off the beach before we talked to you, but you know we live to tell about it, there is a lot of clean up to go. governor is right, when he says this is going to be months not weeks. gerri: you sai said that high te is when we worry, what are you expecting? >> we should be okay, only hitch
we have, there is a wash that is out here that brings more floodwater in. in other than that. that i that is a humvee going through it right now. and so the high tide brings water in there but other than that, i think we're okay, we're past the worst of it. but there is more clean up to go. gerri: a lot of clean up, jeff flock thank you, always great to see you, thank you for your brave reporting we appreciate your help thank you. >> thank you. gerri: for more on the damage in new york, i am joined by republican condition man chris smith -- congressman chris smith who represents that very area, point pleasant in new jersey, as we talk we'll show video of the area close to your district, just south, seaside heights, this is the home of the jersey shore, we want to show these pictures of devastation.
look at this, these homes, sand all over the place. you will see some that are burned out and charred, you toured this area today, what did you see, what stood out to you. >> well, i was in point pleasant day, andade my way down to del mar. it was similar, as your reporter pointed out wit heavy sand, well inland, you know main that you ary thoroughfare, it went down several feet, homes were destroyed. people we walks by the hundred, they looked dazed. one man came out the governor chris christie, and said, i lost everything, but i'm alive. he said he was grateful. to be alive. you know, a great pollute in bullet in terms of human life being
destroyed was averteed. it will take months, but with winter approaching we need to moratorium aggressively to make sure that homes get fixed. gerri: congressman, you know, just explain to our viewers, this is gold coast in new jersey, expensive beautiful homes in this area. you know seaside, it is an area that is covetted by so many people, how long do you think i will take to bring it back? are you confident you will get support you need from state, and federal government challenge play a role -- federal government that will play a role. >> there is no doubt governor made it clear he is all in committed. and you know when it comes to the repair, you know congress has passed and i have supported, laws, including our fema
legislation that to the best of our ability to tries to make whole. there is going to be needs for more loans for people to get their businesses back up and running. the most disturbing thing is the inability of people to make a living short-term, because their business has been destroyed. if they were 100 reds of yards of -- hundreds of yards of the boardwalk, this is a beautiful area in and around the area appreciates, and see it destroyed, so completely, you know brings tearing s tears to , even when people talk like i did about important of pla balance budget, there is always that caveat, we write into balance budget amendment, when there is
is a national disaster, that takes precedent, we need to be fully onboard, in providing whatever resources are needed to make it whole. gerri: fema, hamstrung has a lot of debt, congressman, i hope you come back to and talk to us about it. i certainly hope that your family, and everyone close to you is safe tonight, thank you for your help. >> thank you. gerri: all right meanwhile story goes o8 million people that i talked about earlier who are out of power con edison said power will be restored everywhere in manhattan and brooklyn within 4 days. it could be a week for others like westchester county, there are more than 8 million people most cities are not that beg. -- big with no power, 2 million in new york, pennsylvania with more than a million in the dark,
hundreds of thousands without power in connecticut, ohio and massachusets, forore on effort to get lights back on, i am owned by david owens, thank you. appreciate your time, we used the number of 8 million for the region, does that sound right to you. >> 8 million at the peak of the storm is right, but, service has been restored to roughly 20% of the customers, that have been impacted by the storm. effort on part of electric industry. we're bringing in crews from as far west as washington state, and california, far north as canada. we have strong commitment on the part of all aspects of the industry not just privately owns but also publicly owned, tremendous partnership to get the lights back on. gerri: how do you get those people here? it seems there are a lot of areas clamoring for asis tance.
-- do they drive in? they can't fly in. >> yes, many have to drive, we have bucket trucks they drive them, we need to expedite their ability to get from state to state by removing red tape. i might point out we really do appreciate the strong support we have gotten from the federal government and state government, as i was preparing to join you, we had a very impressive call with our president of the united states who committed to the industry, recognize severity of storm made a strong commitment to help us remove the barriers to move workers from west coast to east coast as well as -- >> did he give you money? >> he offered some assistance, for example in new york, and new jersey, there has been flooding, some underground facilities have been flooded. so we need to pump the water out, core of engineers can be a
tremendous asset to us in removing that water to survey the restoration effort. gerri: we showed pictures of fellows already out working and neighborhoods trying to restore power. and we said that power will be restored in the city itself in about 4 days, and regional areas in a week, is that on targe how long it will take, there are llions as we said who a awaiting their lights to come on. >> first we have to clear the roads, have to clear the trees that have fallen on power lines, and remove the water, we can assess the damage, we believe that will take two days, then the ree restoration efforts, wee personal comes from across the u.s. gerri: how many people total? >> right now, we're working on
53,000 people that are working to restore electric device to the areas that have been impacted. gerri: one final question, it is interesting, in some ways the fact that cables underground have not been a help for some communities, why is that? >> unfortunately we had the surges, 10 to2-foot, water got underground and destroyed our substation, we had to pump the water out, and replace those destroyed that takes time. gerri: it is amazing, david thank you, for coming on and talking about what has been going on, everyone i know in our building is trying to get pow or in their neighborhood. we hope you can restore it soon. >> thank you. gerri: all right, the superstorm sandy hurt our already struggling economy? storm the cost about $20 billion in dage. some predict 30 billion. in last business activity for
more joining me now maryland economist, peter morici. welcome back, you had a number i saw nowhere else in estimates total costs, of this storm, you said 35 to 45 billion-dollars, how do you get there? >> we will have about 20 million in property loss. initial estimates are 5 to 10, for irene they were 7, but irene was closer to 20, i think they will be as bad. but now, look at all storethat are closed, flights that have not gone out, hotels and businesses onshore and new york city that are down for 4 days, that is a loss of income. that is 20 billion that gets me to 40. gerri: wow, okay that makes sense. people underestimate the costs. i read new york city alone is an economy with $4 billion that pumps out $ 4 billion eve day, times 5 is $20 billion, not just
damage you repair. it is also the loss of productivity, workdays, loss payroll, it could be far more devastating than we've been talking babout, you also said, in short term painful but longer term we get a bunch of federal dollars that will pump energy into the economy. >> absolutely, if we have $20 billion in property damage we spend more than that rebuilding, we always do, on the shore property so valuable, they will build bigger homes and businesses. obsolete capital will be replaced by modern capital. we'd get multiplier effect, you spend a dollar on infrastructure, you get a dollar in gdp from additional spending. i think by the time this is all done, the affect to go, dp will be to dr depress it immediately,
but down the road a little bit positive. >> what kind of impact to national gdp do you think this storm could have short-term and long-term? >> short-term, we could loss 20 to 30 billion-dollars, and long-term we could pick up net basis, maybe 30 to 40, we net about 10 additional billion dollars. gerri: all right eter mr. ricci if you. >> thank you. >> all right. a lot more to come, in including whether we'll see higher gas prices. in the wake of super storm sandy, and some estimatesave different trut -- destruction fm storm near $50 billion, i break ♪
moving to pennsylvania, the ohio valley and the great lakes with less force. the job of rebuilding will be huge. in new york city borough of queens, a fire destroyed 80 homes, terrible. in manhattan a crane, partially collapsed. dangling over the streets scaring a lot of people, new jersey governor chris christie said there was damage to each and every new jersey transit line, and commuter trains would not resume service for 7 to 10 days, atlantic city is under water, southern tip of manhattan submerged. so far, expert say that sandy could cost region $10 billion in insure damages and $20 in economic cost, once you factor in uninsured liabilities, that may wl understate the problem.
analyst say that iphone 5 would add a quarter to half% to go, dp, if the phone could move a needle, don't you believe that a once in a haven'try storm -- century storm could do the thing, how about the clerks and tellers who stayed home, companies large and small sent workers home. general motors was one. and airlines canceled total more than 18,000 flights, that is according to flight aware. just minutes ago, about half of the level of hurricane irene, the cost of the storm, was 40 million in revenue are in united-continental, 15 million in profits for delta air. and global business traveler, estimate that a big storm like sandy cost airline, amtrak, rental car companies hotel
dollars 700 million, then the shipper, sea ports from virginia to boston in middle of freight transportation peak holiday shipping seen, sandy slammed in largest rail operator, shut lines all along east coast, of course, ts will hit retail sales too. with storm at tail end of halloween shopping season it could shave 3% from same-store sales for november, new york city, is a hub of corpora headquarters, in banking to media, retail, local economy generates $4 billion a day. that is a $20 billion economy over a week. now to be sure name packs are huge, -- the impacts are huge, and short-term will clip economy growth by maybe .10 of a percent by a half%. there is a lot of rebuilding to
two refineries in new jersey remain would power tonight after being flooded. there they are. for more on the storm impact. i am joined by former shell oil president, john hofmeister, thank you for joining us. 6 refineries, operating at reduced want it, not full. two are off line. because they suffered flooding and they lost power, what is your concern here? >> i think it is the safety of the infrastructure. more broadly than just refineries. it is good if the refineries were not that badly damaged. it worries me if they were flooded it may require the replacement of a lot of electricals in new york area,
new england, and midatlantic states a lot supply comes from out of the country, how is the infrastructure at ports, have we checked out what damage has been done port with the sea surge as we saw it. gerri: let me interrupt. you talk about refineries and@ ports two different things, you also say there could be a problem with distribution and retail service stations, tell us about that. >> that is the biggest worry of all, there is an inventory of finished product available, about 4 weeks, if refineries can get up and running is great, but getting it distributed from retail gas pump to the car, takes electricity. and with so many people suffering from electricity outages, if the -- if they can't buy gasoline, they have to go back and forth on store, you
will not have mass transit for a while, there will be a huge pull on gasoline inventory, but if only a few stations have electricity you will have gas lines galore, that will drive price spiking in the region. people better, get ready to wait for gasoline, until the electricity is restored. gerri: you know, tre was a lot of speculation that everyone would stay home in the wake of the storm am am. i think that demand for gas will be there right away people try to make improvement. and fix damages and go to home depot and buy the equipment to make things right. do you think demand will slacken or pick up. >> it will increase, in first instance, merg emergency respons will drink diesel oil like water, they are not shutting off their engines, working 24/7,
then people worried about finding gas, they want to top up their tanks. people get insecure, we know from texas, louisiana, alabama, and florida, people want to go out and get gas just in case. there will not be supply to back it up, you could drain the inventory quickly by having people accelerate their purchasing where they can. gerri: you said, before thate could see a 20-cent or 40-cent per gallon price spike, do you see shortages? do you see other people tapping other people's gas tanks? >> i think with the electricity out, if is a week to two weeks, it could well be in the worst areas, that affects retail stations, so where will people get their gas? maybe some of thees go station owners are wired for generate
ores that would help a lot. but if you have a few stations open, they get drained, and depots where they fill up tank trucks, do they have electricity if people form gas lines, they stop behaving kindly to one another. gerri: i noticed that too. look thank you for coming on tonight, we'll be in touch with you. we have to follow the story, it is just, amazing thank y a bunch. >> you bet. gerri: still to come, sandy's economic impact could be felt for some time, airport struggled to return to normal operation, and next president obama cancels a third straight day of campaigning because of sandy, how will the superstorm impact elect, will election day be postponed? don't go away.
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gerri: it's one week until the election, or is it? talk of delaying the election growing, as state and federal officials get better idea ofhe havoc to sandy brought on the east coast. peter is, moving the election a possibility. >> it is not federal law sets date for president's election, and only congress can change that law, it is not changing it in the next week. but the law does give states some leeway, in maybe moving votvoting days adding election days, make up election days in cases of emergencies like hurricanes. new jersey governor chris christie said his secretary of state, was talking with other
east coast secretaries about developing contingency plans for election day, depending on how power situation we assume g no announcements on any of that, and the governor, he was a little busy with other problems. >> i don't give a dam about election day, it does not matter a lick to me at the moment, i have much bigger fish to fry, so do people of state of new jersey, so, let's politicians on the ballot worry about election day, it is not my problem, i am not going to deal with it at the moment. >> reporter: we were looking for a great reason to run the sound bite, federal law said if a state fails it deliver its elect fors for preside on time, they may be appointed on a subsequent day in such a manner as legislator of such state may direct. we found 7 states, that have passed laws that appear to dress
this. three of them have been hit by hurricane sandy. new york, maryland, and north carolina,. gerri: peter thank you. i guess we'll see. well, not only is the superstorm putting election day in harm's way it has put presidential campaign on pause. is president obama gaining political advantage by being in front of the storm? so, welcome to you both, i to start with something else. sound we got in mayor bloomberg in new york city, sounds likely is disinviting the president to new york. listen to this. >> we would love to have him but we have lots of things to do, not trying to dis him but i know he planned a trip to new jersey i said that finds that represents the whole region, people know the storm he does not -- he has a lot to do, and i was flattered high offered to
come, but i think that thing for him to do is go to new jersey. and represent the country. gerri: brad, i it sounds like he is sayg, you know the last thing we need is a presidential motorcade here. >> he is right in some respects, i never thought i would be sticking up for obama, but i will, a president, has directed a lot of federal aid not only to people of city of new york and long island and new jersey, affected, ohio, and a president has to do two things, to be president of the united states, and a political candidate a week before an elect, it is appropriate for a president to manage this crisis because federal government has an interest in it. gerri: justin? >> well, i think that president obama needs to show that he understands what is going on, on the ground. so i think it is legitimate for him to want to be there but at the same time moving the
president of the united states into aftermath of a natural disaster does take significant resources away, so mayor bloomberg has a very good point, it is reasonable what he said, i am sure president obama understands. gerri: not just any aftermath, it is new york city, and every time president comes here, he shuts everything down for a half day, new yorkers do not have patience with that. let's talk about the issue, i think of candidate -- can the campaign, can the presidency, the election be delayed? >> noing federal elect cannot be. we're a union of 50 states some, states may be affected, election day goes obut good news, in a lot of state provide for early voting, hours can be extended perhaps they can be extended on election day. >> justin?
>> i agree. election day come on tuesday we're a week out, there may be people who do not have power or electricity but there are things that governors and other officials state officials secretaries of state can do to help increase aim of time people have to vote like extends voting hours and early voting days, i feel comfortable we have election day tuesday. gerri: i think we'll have a lot of debate over this between now and next week. talking you to about a new poll, wtake about polls all of the time, romney seems to have momentum. but now npr with a poll out showing romney is winning. >> i believe he picked up a lot of steam since last debate, that people are now making their decisions on the economy. the economy has not improved, although president obama seems have have made good decisions in his response to this storm, just
one week of good presidency does not make up for 4 years of a lousy presidency. gerri: romney got a lot of momentum in last couple weeks, it is possible sandy could quash that, do you think it would have an impact on romney's 3-6rd? >> performance? >> it could. now you have a national disaster, it is hard to be partisan or political, i think it could slow some of the momentum, but it is important to keep in mine that president obama was really on a very negative campaign, he was using this term romnesia that seems so small now, that hurts president obama he was waging a negative personal -- not personal but out on the campaign trail. gerri: the tone is very different now, brad and justin
travelers across u.s. are stranded tonight in wake of superstorm sandy. maybe someone in your family. thousands more, maybe as many as 1875 canceled tomorrow through the end of the week, here is more george hoboka, let's talk about the magnitude. >> other than 911, i've not seen is many cancelation from u.s. airports even volcano in iceland did not have this many. gerri: what is interesting,ith so much warning from this hurricane, a lot canceled plans and flights, didn't have to go to the airport. >> i'm one of them 92 goo. gerri: good for you, does that make a difference. >> it did, but it is still annoying, they canceled my flight 48 hours before, i think
we could have taken off. because i looked out window at 6:00 in the morning. gerri: what day? >> monday. first thing in morning, there was no breeze in the sky. gerri: i would not get on a plane on monday, i would have the not do that. >> it seemed okay, they moved planes out of new york area to keep them safe, and avoid the tarmac delay fines. gerri: that is running the airlines right now iny view, sitting on the tarmac for a long period of time, it seems all their business decisions are made to that, you can get canceled for no good reason. >> it was that in days of ready richenbacher, they would have flown for hell or high water but not any more. gerri: more airlines allowing passengers to rebook through november 7. >> you can also cancel. get all your money back in all those nasty fees bark, and your
frequent flyer miles back. gerri: would they do that? >> they do, all my money was back, but if you are stuck in los angeles, and you live in new york, you have no choice. i was walking down street in manhattan, full of tourists, lost zombie tourists with nothing else to do, they are just walking, aimlessly. that i want to go home. gerri: southwest rebooking 14 days from original travel date, and fantastic picture of laguardia airport flooding, you see this picture you will be so happy, that is awful. >> amazing. gerri: so glad you are not flying tonight, tomorrow or the day after, my question for you, what is this going to get normal. >> probably saturday or sunday, i know one person that tweeted said they are stuck in istanbul, and they are not coming back for a week they live in new york. it will take a long time. gei: i am trying to get to washington you know, not going
it today, and experience a storm tomorrow. but thanks to hurricane irene last year, many in the northeast did buy it, flood coverage rose 14% this year, from 5% before the irene hit. even if you got it. national flood insurance program, may not be able to help right ay, the program is more than $17 billion in the hole for prior disasters. it has about 3 billion in borrowing authority remaining, congress has to approve every other dollar after that. so far, no numbers have come on in claims. we'll contie to follow that. >> in focus tonight, back to business for stocks, starting tomorrow. the new york stock exchange set to reopen after being closed for two days in a row for bad weather, the first time since 1888. what can we expect tomorrow? we ask harvey pitt.
welcome back, tell me, what are you expecting tomorrow? there will be a lot of volume and demand? >> i think there will be a lot of volume, and there will be significant amount of selling pressure at the beginning of the day. that tends to be what happens with the markets have been shut forriric -- extraordinary circumstances, this is what we experience ed oexexperienced on. gerri: interesting. they have been closed for two weeks, you are expecting a lot of demand or volume, does it make a difference have you dark pools out there? >> well, that is been some thing that has men that closing of the exchanges is not had that great
an impact. large institutions can trade in the dark pool venues, and people can trade overseas, there has been trading overseas. so by and large, there has not been as much of a shut down as there 1 woul would -- once woule been but there will be selling pressure first thing in the morning. gerr all right,e'll watch for that, i wanted to get you to pond to comments from arthur levitt, former ftc chairman, criticizing new york sck exchange for not doing more. >> tosee exchange go down for two days without an adequate back up plan sun fortunate to see new york stock exchange crippled add is a body blow that will shake the image of the institution for a long time to come, new york stock exchange is saying that is not true, they have a back up plan. we would love to see it. harvey, what do you make of the
comments? >> i understand the concern. but i think in this particular is, , it is misguided. reasons for shutting down the exchanges and new york was not only one that shut down, were to prevent unfairness to individual investors. some people would be able to get to the marketplace, others would not. goal was to basically have a more orderly process, shutting down the markets, in particular when brokers could not function because of the power outages, is not a terrible thing to have done. gerri: the exchange also considered trading just electronically. would that have been a good solution? >> it would, but there are many people who cannot access that. but i do believe that having all of the markets trade, electronically is where we're headed, and what that have been the result here. gerri: harvey thank you, you are
always as concerned with a level playing field as we are, we appreciate your time. >> my pleasure. gerri: and a programming note for you tomorrow, with u.s. starkestock market to reopen, fx business with a special lineup 9 a.m. fox business special report. hosted by neil cavuto, and vane hosted by neil cavuto, and vane and company [ male announcer ] hodo you trade? with scottrader streaming quotes, any way you want. fully customize it for your trading process -- from thought to trade, on every screen. and all in real time. whh makes it just like having your own trading floor, right at your fingertips. [ rodger ] at scottrade, seven dollar trades are just the start. try our easy-to-use scottrader streaming quotes. it's another reason more investors are saying... [ all ] i'm with scottrade.
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it should not be there. this is one of the commuter rail lines. also, just north of the city, look at this train stuck at the station and a few feet of water. and if you can't take the train, how about a cab? well, forget trying to get one of these. a parking lot full of flooded cabs in hoboken, new jersey just across the hudson river from midtown manhattan. folks in the storm 70's with ticket to keep themselves and their level unsafe. look at this. a resident of little ferry, new jersey, using a jet ski of the street to help with the rescue effort. and how about this one? only in new york, folks. someone driving their convertible through times square in the hurricane with a top-down . and tomorrow is halloween. here's a special message left by the good folks at asbury avenue in ocean city, new jersey. sandy, no candy for you. and finally, on a personal note, this is my street a downed tree in my neighborhood