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tv   Varney Company  FOX Business  December 16, 2013 9:20am-11:01am EST

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♪ imus in the morning >> good morning, everyone. new week and some very different stories for you. look at this. google buys its 8th robot company. they're building a dominant position in running and walking machines like this one known as the big dog. now, that's different. there's more news on that outrageous affluenza story. reportedly the teenager lived alone in a mansion his dad gave him. four people are dead, high schoo school'-- who's not fault? and more on obamacare, and a poll that you expect to pay more next year. you've got to right again. you'll watch live a real stock
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market bounce, here it comes. "varney & company" is about to begin. ya know, with new fedex one rate you can fill that box and pay one flat rate. i didn't know the coal thing was real. it's very real... david rivera. rivera, david. [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex.
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>> we'll get to the market rally in a moment. here is your monday morningdom obamacare judgment. from the latest ap poll nearly half the people who have coverage from their employer or the private sector expect it to change. got that right. and about 60% say they're paying higher co-payments and deductibles. you're right. a new report from the house oversight committee. major flaws in the navigator program. and urging people to lie on the navigator to get more income in subsidies and website still not working and the administration says they failed to record as many as 15,000 insurance purchases that
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information was dumped on us late friday afternoon. it's not just google, robot, affluen affluenza, and the mega millions jackpot. it could pass the record of 656 million reached last year. next, the beatles, 1963 bootleg album coming to itunes tuesday, why not? by doing it by the end of the year, the rare recordings secures the copyrights for the next decade. john kerry in vietnam, talk, climate change. he wants to spend 17 million of your money, our money to help vietnam's rice producers and shrimp adapt to rising sea levels. we're looking at a monday morning bounce back for stocks.
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december of the blockbuster, the latest installment in "the hobbit" made $73 million over the weekend. it was the third biggest december opening ever. all right. market opens in precisely 60 seconds. before it does, here is scott shellady joining us from chicago. all right, scott, why is the market going to open higher when the fed may announce its printing less money this week? >> well, the short and quick answer is this, if you go back the last three or four days, stuart, we've taken 30 points off the s&p. a short cover rally going into the meeting. number two is this, two calms-- camps that says, the economy is doing better and the other says no way the reason that equity prices are this high because of accommodation. and the fed is stuck in the middle and let's see how they ha
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handle wednesday, but they'll say they'll taper and reserve the right to change them. stuart: they might say that that's entirely possible. you don't expect that? >> no, but that's what they should say. watch the numbers on a daily basis, but give it some forward guidance. stuart: look behind you, scott, going to start trading and hear them shouting in the background. the market has opened higher and the opening trend is up this monday morning. i want to stay with the rally theme and bring in david stockman, he's here with us this monday morning. the same question, why is the market rally, when the federal reserve may print more money. >> i think the boys and girls are having one last frolic, before the fed meeting on wednesday. the fact is that the market is a time bomb, ticking ten usely at the top and waiting for the third fed bubble of the century
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to splatter all over and when it does, we'll see how overdone everything is. >> that's your point and you've made it many times on this program and now ask specifically about today. and is it possible that the economy is strong enough to push this market higher. forget the fed and what the fed is doing. >> it doesn't matter how strong the economy is, it's because the market is way ahead of the economy. we have had enormous multiple expansion for the last two years, s&p earnings are up 5% only on a trailing gap basis, 90 to $95. the market is up. s&p 45% in the same period. the russell 2000 is traded to 85-- >> one last frolic to use your expression. >> one last frolic. >> and then it's all over. you'll be back in the early part of january to answer for that. >> sometime next year. >> and up 71 points as we speak. we're off and running this monday morning, we're to the upside. 15-8 is where the dow has
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reached. for a lot of buzz around a possible wireless deal. wall street journal reporting that sprint is considering a $20 billion bid for t-mobile. nicole: $20 billion. this could be huge if this is to go through. right now t-mobile is down, 2 1/4 and sprint. and just hit the highs. see that, i say it and it comes true. and what we're watching, also, as i talked to some of the traders you think there's a great competitive move for sprint and you can see the stock. stuart: the rationalization. and the dow is now up 94 points. i want to get back to the big story, this intriguing story about google buying its 8th robotics company just this year. the new one, the one they just bought makes a walking and running robot called "the big
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dog", there's fascinating video of this thing. google is up 5 bucks on that news. we're joined by the former ceo ed rensy of mcdonald. i'm talking about google of can p, amazon spreading out into all kinds of new areas, dominating those areas and all kinds of good stuff coming in at google. your response? >> i think those companies are fabulous, wish the government ran as well. stuart: dream on. >> my background is science and to see a company get into robotics and the great advantages, i believe very much in investment in the future and what they're doing i think is spectacular and i applaud them and keep going. i think that this idea of reaching beyond your scope to find new areas and new opportunities. stuart: look at that thing. that's a big dog. i mean, look at that thing. >> having been on the board of
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governors red cross when you think of these things in disaster relieve to keep people out of harm's way. stuart: and my first reaction, was it defense or yanted and thinking of the soldiers going out there and no loss of human life and there is a shot of guys trying to push it over and another shot i think we'll get to it of the fastest robot around. goes at 29 miles per hour running. >> you like this. >> i do. i wish the government would spend more money in future investment. we have to invest in future. stuart: i don't want the government doing this research. i want the googles of this world. >> let's give google the money and let them doing it. stuart: still on with you, you've said 15 to 20% of small businesses will go out fairly soon because of obamacare. are you sticking with that number. >> absolutely. i think by the end of next year we're going to see a real crisis in small business because they just can't afford what's happening. they're going to push those costs to their employees and
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the employees can't absorb them. and x is going to cross y and working for the government, working for the unions, i'm getting out of the business, i'm done. stuart: you had this poll early this morning, half the people expecting to be paying a lot more. 69% think they'll pay a whole lot more for deductibles and the rest of it. that pushes small business out of business. you stick with that? >> absolutely. a lot of people aren't trying to access insurance because they can't get through and they've given up said the hell with it. stuart: quickly look at the big board, it's a bigger rally than we thought we would get. up 140, 155 points puts us back at 15, 914. david stockman, still with us, you've said your thing about the fed. you were reagan's top budget guy. tell me about obamacare, is that a federal budget buster? >> absolutely. obamacare is a dumping machine and we've seen the first wave
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in the individual market. that's only 20 million people. millions have lost their coverage, they're going onto the health exchanges and the thing to remember about the health exchanges is tax credits are available, generous ones, all the way up to $95,000 per family of four. next year when the federal mandate comes, there's going to be more waves of dumping and small businesses getting out of elk had-- health care. and retiree programs dumped on the exchanges. tens of millions and as a result what the tax credits are goes to cost are massively understated and right now they're assuming 19 million people will get tax credits on the exchanges and 110 billion a year. it could easily be 40, 50 million people on the exchanges and getting tax credits, and multi-hundred billion a year, and costs pay beyond anything in obamacare and then as we get down the road, they're going to keep repealing the taxes that
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are supposed to pay it because nobody wants to pay the tax like the cadillac tax and so forth. and then we have medicaid surging underneath, heading towards a half trillion a year and federally, a trillion a year federal and state. those are some of the-- >> it's a budget buster? >> flat-out. >> and it shows why the head in the sand activity last week of taking a punt on the physical problem and busting the cash. the republicans got their defense cut increases and democrats got their social spending, and that's-- >> nobody wants to carry the can for shutting down the government. that's the policy. and that's the politics of it. >> that tells we have a doomsday machine. we're so incapable of coming to the tough choices on cutting defense spending or raising revenue or entitlement reform and they kick the can and hope
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for the best. stuart: i've got to get back to the market. it's straight up this monday morning, what a contrast to last week. we're now up 165 points and we've got companies like exxon posting a new high. is that correct, nicole? >> new high for exxon and another name i'm watching is it lumber liquidators and both names got upgraded over at goldman sachs and the price target is 109 and a 112 target. stuart: ed, what do you make of it, the dow is up 160, 170 points. what do you make of it. >> it's exciting and scary, i think false hope. we've got a deficit that's staggering and i don't see how we can get out of it. stuart: you don't think that the economy is strong enough to withstand a small pullback in the money printing operation by the federal reserve? >> i hope as a bond holder,
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that they'll quit printing so the interest rate will go up a little bit. these kinds of extremes worry me. stuart: and now we're up 166 points. remember, please, we're nine minutes into the trading session, up 165. and check out this video, can't run it enough. it's called big dog. google just bought the company that makes that thing weeks after amazon announced its drone delivery research. tech, drones, robots. the future of the tech industry. you can bet the feds want to regulate it. congressman mike turner right behind me, he's going to weigh in on that one in just a second. ♪ walk like a man (announcer) scottrade knows our clients trade
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>> still a solid rally. 162 points higher. the dow back above 15-9. all right. where is the price of gold when stocks are rallying like this? i will tell you. barely changed at all. hovering around 1,235 bucks an ounce. look at the share price of yahoo!. yes, yet another-- no, it's not a new high. it hit a high and then pulled back. right now, it's hovering below $40 a share. first, it was amazon announcing they're working on using a fleet of drones to deliver packages and now google and the robotics firm. it looks like everybody wants to get in on the robot craze. does that mean congress will make a set of laws that regulate it all.
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turner is here. >> thanks for having me. stuart: our audience will not like a whole bunch of new rules, but we've got to have them. are you working on them? >> congress is on the leading edge, and pushing the f.a.a. to work toward the integration-- >> hold on, congress is leading on the cutting edge of leading the way? >> f.a.a. has been an impediment and congress pushed forward and said we want to establish six test sites for integration on the u.s. air space. there are a number of issues, privacy, sensitive avoid dance. we don't know the way they can be applied. >> so you you're going to try to make sure that the government doesn't stamp all over the technology. all kinds of rules and regulations that would restrict it and put it in a box and keep it there.
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you want to open the box of innovation and you think you can do that. >> and taking into consideration the safety and privacy. federal government led the way here, somewhat from the defense spending on some of the initiation of this technology and now we want industry and business to transit into jobs. >> i've got to ask you about a budget, the budget deal passed and sizable majority in the house last week. looks like it's going to pass the senate and that's my speculation here, i think it will. you approve of this? >> absolutely, and this needs to pass the senate for a number of reasons. we need to return certainty and make sure that the government has an ability to operate and we need to go back to responsible budgeting for the defense. stuart: you're happy with this? you're happy with the deal. you didn't get everything you want. >> no one is happy, but the outcome. the see sequestration. >> do you get the idea that the public is so angry that they
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forced your arm and you had to do this deal. >> the people want government to work and when it doesn't, the budget deal is the process of people coming together and working. and they needs to move forward. stuart: thank you for joining us in new york city this morning. >> thanks for having me. stuart: enjoy this great city. a fantastic place. and ed is still with us, lots of talks to raise the minimum wage. the question, ed, should the federal government be looking at the levels on principle? >> the government ought to stay out of it. these are jobs not careers. and we enurge can people economically to stay at the lowest level, that's where they'll stay. stuart: and you used to work at mcdonald's, i don't know if the minimum wage applies to them. >> it does. if the government raises the minimum wage, what happens at mcdonald's. >> short-term they'll raise prices so it's inflationary.
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in the long-term they'll get rid of the people and the average restaurant in the united states is making 4.6% of sales and profit. you can't afford this kind of labor costs, something's got to give. stuart: do you put any credence behind the emotional argument that you must pay a living wage. >> you can't create a living wage at the minimum wage level. it's so inflationary. these jobs are entry level jobs where he should learn basic skills and move up and move on. 65% of all store management came out of hourly workers, and 65% of middle management came out of those jobs. so, it's a career, not a job. in fact. i started out 85 cents an hour at mcdonald's and ended up being president of the company because i worked very hard to improve myself. stuart: but they're going to say you are heartless making all of this money, all of this profit and you won't pay a miserable few cents more to the people at the bottom of the--
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>> at some time you have to adjust the minimum wage and inflation gets way ahead of it. small increases aren't bad things. but small jumps from 8 to $15 is insane. stuart: it doesn't matter who you are, making $15 minimum. >> good for them. i hope they can afford it. stuart: ed, thank you very much indeed. my take on deception, the obama administration and the run-up to the 2012 election. that's next. ♪ who comes around on a special night? santa comes around on a special night♪ ♪ must be santa, must be santa ♪
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>> a breaking story out of harvard where there are unconfirmed reports of four explosive packages on campus. police are on the scene, obviously, but the school's own twitter page still says these reports are unconfirmed. we're of course monitoring the story for you. barons bounce for ebay stock, they like it, the stock goes up more and of course, ebay is an on-line sales kind of company.
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and they'd be benefitting from the bad weather over the weekend. verizon is leading the dow. a big gain there, $49 a share. and maybe the value of phone networks goes up and reportedly the wall street journal, sprint makes a $20 bid for t-mobile. the affluenza story is more outrageous if possible. the teen who drove drunk and killed four people was living in his own mansion, living alone. that mansion was bought by his father. we've got a lot more on this for you. judge napitano joins us for the precedent that this ruling set and the moral implications on that. all of that will be new at 10:00. seven current and former city officials have gone on the record, they now admit that information was deliberately concealed to avoid hurting the president's reelection chances in 2012.
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this is my take on the latest presidential deceit. and maybe the beltway crowd is finally waking up. headline read, quote, white house delayed enacting rules ahead of the 2012 election to avoid controversy. regulations on obamacare, the environment, and worker safety were not published before the election. the white house worried that they would hurt the reelection campaign. the obama administration says the delays were just a coincidence. the official quoted however, say the delays and concealment had a political purpose, winning the election. the implication is clear, we were deceived again. the president knew that if he told voters about upcoming environmental rules, for example, they wouldn't be happy about all the likely job losses, so, stall until after phe vote. according to the post, the officials have to attend white house meetings to get approval of rule change announcements. they were called mother may i
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sessions. that's political people directing the government for partisan political advantage. it was deception. it was not coming clean. it was manipulation. it's like the irs scandal where the president's political opponents were intimidated by the government itself. it's stacking the deck in a presidential election. that reminds me of chicago, the president's adopted city, do anything, say anything to win. unfortunately, chicago is a mess. it's insolvent. and so is the president's credibility. ] [ music transitions to rock ] make it happen with the all-new fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity.
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stuart: with the lousy weather in the east, it must have been a great deal, great weekend for online people. this is their year, right? we have some fascinating developments for you. the affluenza case takes a new turn. the drunk driving teenager lived alone in a mansion given to him by his father. judge andrew napolitano on the legal side of the case. if rich is a defense, by not being poor? grover norquist's ear. he hates taxes, what does he think of the new fees on air travel? a representative taunts republicans health care plan. yes, they've got one. why did it snow in cairo.
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and the ugliest video of the year, does every generation do something like this? ♪ check the big board, please. charlie, that is a rally, a nice one here, explain it, please. charles: more buyers than sellers. ironically the consensus continues to swing to the fact may be tapering starts. stuart: tapering is a buzzword. which we cannot use. maybe we will find it will print a little less money in the future, the market take it all in stride, we can handle it area did charles: of the transition can be made to one that is being carried by the u.s. economy,
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maybe it doesn't make sense to panic and just ride out the bumps. stuart: picking individual stocks you have had a fantastic year. i don't think anybody has done any better than you. charles: thanks. stuart: here is your monday morning obamacare update. the latest ap poll, half of all people who have coverage through an employer say they do expect the policies to change next year. these 9% say they expect to pay higher premiums. 60% said they will pay higher deductibles and co-pays as well. obamacare is not working, you're paying the price and kaylee is here to drive home the point. welcome to new york. >> thank you very much. stuart: this is a disaster. >> is an absolute disaster and will only get worse. it is going to get worse, the
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economies alike other describe it, eigh a death spiral. you have a pool of very sick elderly people who will only further increase premiums so 2015 they are going to go up more and in term, turn they will not sign up. stuart: play the role of the reporter reporting on millennial's. you fall in the right age category. tell me how other people your age are responding to obamacare. >> honestly, stuart, they don't even realize what is happening right now. i believe it is march 1 is when these penalties hit when they get a $95 penalty or 1% of their income, one of the two. when that happens, millennial's will wake up and say why is this money, where's it going? it is going to obamacare. and they will realize what is happening.
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stuart: they don't think they needed, and they actually do not get fined $95. the only way they can take money out is if you do a tax refund and they take the $95 out of the refund. >> the realize the cost comeback to hit them. charles: you weigh the cost, this report, the thing is that it was on the people who were not supposed to be touched at all. 85% of americans were promised this has nothing to do with you. as it turns out it has a lot to do with you. your premiums have gone up, your deductibles are going up and more importantly you will be subsidizing other people. this is a brand-new entitlement plan, involves everybody particularly taxpayers. stuart: the more we know about it, the less we like it. sorry, we have a big rally going on and i have to go to nicole.
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technology still where it is at, a chip maker being bought. nicole: they make chips, actually makes chips for some of the apple products, so this is $6.6 billion deal where they are buying lsi. meanwhile, look out with lsi. what a move. stuart: a great weekend for online sales. up over $7 above 390 as we speak. i'm afraid i have to move on to the affluenza story. where getting a report that the 16-year-old who got drunk and killed four people in a car crash lived alone in his own mansion. it was given to him by his father after his parents divorced. he threw parties with strangers,
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he prayed about being able to get drugs and alcohol. this is a story that has you outraged on this program. we felt the outrage coming at us. time to bring in judge andrew napolitano. first to the judge first. does this decision, it was a legitimate defense, now we have heard this background he lived in a mansion by himself, a teenager, does that add some legitimacy to that defense? >> it is nonsense. a defense is something that mitigates the liability of the defendant. this kid pleaded guilty so there is no defense. stuart: is mitigates the finding of fault. in a mansion by himself.
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>> this affluenza stuff, which i haven't heard of before, wasn't used to mitigate the finding of fault, but for the punishment. so it was improperly use because as i understand this affluenza argument for which there is no research for which there is no scientific studies, and for which there is no precedent in american law. he was so accustomed to a rich lifestyle he didn't know right from wrong. if you don't know right from wrong and think you are shooting a sack of potatoes of a human being, he cannot be found guilty of what you are doing but if you plead guilty because you know drunk driving is wrong and you know it can lead to murder, which is what happened, homicide, which is what happened in this case, does not matter how rich or how poor you are. stuart: i can see people saying i am poor, that is why i stole the food.
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>> that is why this is nonsense because there is simply no scientific evidence for the proposition that wealth or the absence of it affects a person's ability to know right from wrong. stuart: join us on the morality of this, will you please pass judgment on the parent, the father who gave a teenager and mansion where he lived by himself and had access to drugs and alcohol had the moral aspect, please. >> is a classic case of confusing means and ends. you think you're providing things, but you are not forming him to be the man, the end of what human life is like. the weight is a metaphor for the whole economy that our freedom must be ordered to something beyond freedom, ordered to the truth and the dignity of who we are as human beings using these things as tools but not worshiping them as ends. this man was neglected his son and the proper and just and
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necessary guidance for him in a moral sense. kind of what pope francis is talking about in his critiques of a market economy. stuart: i want to get into that in just a moment, but i want to bring in before we leave this point on affluenza. is this whole generation does not accept bowling and responsibility? >> yes, this young man walked up to one of the passengers and said i will get you out of this. just a punk attitude that has taken over a large part of my generation. stuart: how can he feel differently being brought up the way he was brought up. >> it is so contrary to what made this country the best country on earth. something we are not instilling and our children. >> regardless of their economics. >> i was going to say something very similar. we have a reduced vision with accountability going on so if it
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is a poor kid in chicago who kills another kid for wearing the wrong bandanna, it is not his fault, it was the videogame fault, manufacturers fault. the distribution of accountability is killing our kids. stuart: i want to get to the pope. some have said he was agreeing with the marxist. >> this is the activatio accusam some talkshow host say he was a marxist because of his critiques of capitalism. and i think his moral critiques of capitalism were not motivated by politics but by what he sees and the case we're talking about here by a lack of a sense of moral responsibility, and i don't think it should be taken as a critique of the market as such the same case this kid could have existed in a very poor environment, people who
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exist in rich environments without a sense of moral responsibly are culpable. i don't think the solution is to have bureaucrats take over and impose moral judgments because we are getting away the individual's responsibility to be moral. stuart: the judges with me and the judge used the word marxist in response to the pope. so go ahead, judge. >> you're going to make me go to confession. >> let's not do it on air. >> as a faithful roman catholic, i love the pope. but the pope field of confidence is not economics. it is faith and morals. if the pope thinks somehow governments can provide for what we need, the pope needs to learn to have a greater understanding of basic economics.
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stuart: leftward to you, father, this particular subject. >> judge napolitano, pope wasn't describing what the government ought to be doing. he was very clear saying he is not proposing policies, he is critiquing culture, and that is the thing we have to keep in mind. frerepentance you have a read al that document. all 85 pages of it. >> to have you read it in latin nor can i read it in english? >> i will let you read it in italian. stuart: this is an ad in times square put up in response to an atheist billboard arguing that we don't need the christ in christmas. this one says to all of our atheist friends, thank god you are wrong. i love that one. i like that. >> that has mine right now. >>stuart: did you pay for it, father?
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>> i had not. i wish i had. nobody asked me to. stuart: surprise, surprise, turns out there are major flaws in the obamacare navigator program. when even encourage people to lie to get coverage, subsidies, actually. obamacare train wreck but does the g.o.p. have an alternative? yes, they do and they will present that alternative right here next. hi honey, d you get e toaster cozy?
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stuart: moments ago twitter hit $16 per share cap has retreated a little bit, but 58.86. charles says he will make money with a company called k-force. charles: the last quarter was absolutely phenomenal. in a financial area, they were
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up year-over-year, health care 3.6% quarter over quarter, government solutions same thing. all across the board this company is in a sweet spot where we need jobs in this country. for you the top 10 cities with the most demanded, what do you think number one is? stuart: san jose, california, palo alto, california. charles: number one, charlotte, number two, new york. this is american centric phenomenon going on. we should not be arguing with $15 him wage, we should graduate kids for these jobs. stuart: how many times can you be right in one program? this is not so funny, and he reportedly house oversight committee, major flaws and fraud in the navigator program. urging people to lie about the
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income so they can get a bigger subsidy. joining us for more on this one. we will get the republican plan for health reform an in a secon, but what do you make of this? >> this is something that we will uncover. i asked one of the officials somebody just got out of prison for identity theft, could they be hired as a navigator? in fact yes, that person could be hired as an obamacare navigator. stuart: what can you do about this? >> this is one of the things we highlighted when the obama administration decided to turn off the verification process which encourages some of this fraud encouraging people to get your subsidies from the government. this is just scratching the surface. stuart: they say you don't like obamacare but you don't have a plan of your own.
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i know you do have a plan, can you give me a very brief rundown and make it obvious to everybody what you are talking about? >> we put together a commonsense plan. we said let's focus on lowering cost and health care, putting patients back in charge. increasing health savings account. stuart: you can buy health insurance product from any insurer in any state you like, national health care market. >> you can buy that plan. real medical liability reform saving cost and health care, we increase health savings account. stuart: what is the proper name for that? >> the hsa.
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and they want to up their own money in their own account to pay for their health cost, that is something i should be able to do without paying taxes on that money. entries that. allowing people if you look at what is happening of a marketplace for most is because of higher cost. putting patients back together on healt health care decisions, getting irs and these washington politicians out of it. stuart: 175 members of the house, three or four, a going to be saying elect us in 2014, repeal obamacare, we will give you this, is that the health care platform of the republicans in the house? >> majority of cosponsors in the bill, we address the problem of how people with pre-existing
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conditions so they are not discriminate against. no taxes, no mandates, getting back to commonsense free-market reform putting patients in charge of health care. stuart: leave that with me if you would. you won't believe this, a record low temperature in antarctica, increasing. snow in the middle east, first 112 years it snowed in cairo, egypt. you may be excused for thinking this is climate change. we asked janice dean about that in a moment. life's an adventure when you're with her.
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stuart: we are 55 minutes into the trading session and the rally is holding up 150 points for the dow. staying on the market, technology rallying again. ebay, expedia, amazon, apple, yahoo, they are all higher. just look at this. the story of the market. now to the weather.
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it has been making some headlines. snow in cairo. first time in 112 years. it snowed in cairo. extremely cold, tons of ice and snow in the northeast, before winter even begins. so, janice dean, we could be forgiven for saying these extremes of weather are signs of climate change. the global warmers were right. what say you? >> i am a meteorologist, so i study whether bit i'm not a climate scientist. scientists who study the time it, is their job. i study the weather, i forecast the weather. what i can tell you is some statistics that have happened in the last week, i made a full screen for you yesterday. take a look at the statistics that have happened. we have had over 200 cold and stole records just last week, a record temperature of over 135
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below zero in antarctica. and the arctic ice caps 50% bigger than it was last year. so those are statistics i just came up with. if you are somebody who thought global warming, doesn't that mean things are going to warm, so that the ice caps are going to melt and things are going to get worse? especially here in the u.s. we said all of these records, one of the coldest december as we have had on record, so i study what happens in the atmosphere, i'm here to tell you that we can't even get a five day forecast correct sometimes, so how are we supposed to know what will happen in the atmosphere and the climate in 10, 20, 30, a century from now? i'm not saying we are not putting junk in our atmosphere. that is happening. stuart: anything that happens, we get these extremes, that is climate change. we were right all along.
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>> we were talking about the category five typhoon that's just went in and did incredible damage, catastrophic damage. those things do happen, but the problem is people are jumping to the conclusion global warming, climate change the blanket statements now without learning what is happening. charles: those things have always happened from the beginning of time. we just said it snowed in cairo for the first time in 112 years. why did it snow on her 12 years ago? with exhaust from cars which mark airplanes? they take all this stuff to scare us and to push policies. >> just a couple of days ago we had said santa suffering from climate change in a cave with no electricity. right? it is one thing to scare us, adults, but don't scare the children. stuart: that guy played the
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butler in "downtown aby." >> what are you doing are you are scaring the children. stuart: so you don't really think there is a scare here. all of this unusual weather. >> i believe in cycles. but now we in a cycle bringing us colder than average temperatures. just yesterday because of all the storms we have had in northeast and all of the snow, this reminds me of winter in the '70s. we were talking about maybe global cooling. everything has a cycle. jump to conclusions, that is what i don't like. >> you young people are the ones who bought this. but the reality is 31,000 scientist in the united states have signed a petition saying man-made global warming doesn't exist, there is no evidence for that, yet these statistics go ignored because we have people
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like john kerry who make their career on the fact there is global warming that was global cooling, which is now climate change. stuart: you're referring to the money he want to give the rice farmers and fishermen to help them cope with the rising sea level. that is our money. he is in vietnam, that is a pledge he has made. >> i am all for helping people that suffer catastrophic damage like the typhoon we saw, but to predict something in our lifetime we may not even see, to me it is a little bit of a waste when we could be helping other things happening right now. stuart: is global warming a hoax? >> i don't like the word global warming because it is counterintuitive, obviously. climate change, the climate is changing.
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everything evolves, everything adapts, that is nature. we are adapting, we are changing. just how quickly the atmosphere is adapting to the junk we are putting into is still up for discussion. now i cannot watch downtown aby because he has ruined it for me. stuart: is there a series three? >> yes. it has been out in the uk and coming here i think in january. stuart: i will watch it. the budget deal passes the house including fees and taxes for air travelers. what does grover norquist, who hates taxes, think about that? he is next. is it a musical
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a few weeks after amazon announced they are developing a fleet of autonomous delivery drones. it seems all the ink tech companies are branching out in new and unforeseen areas. charles come i think google reminds a lot of amazon going into all kinds of areas. charles: it is amazing. not to be upstaged, google took over like six or seven robotics companies in all areas. it is a huge race. stuart: where are they going with this? charles: it is all about efficiency. as soon as you hit enter, that computer is going right there and picking it up giving it to another computer getting it to your house. >> masonry automating of jobs. so my cost because of obamacare. automate as much as you ccn.
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we will see. stuart: i want my burger delivered by big dog. charles: he will not complain if it is not the way you wanted it though. stuart: dublin the security fear fee for airline passengers. billions will be extracted from the air travel industry. grover norquist with americans for tax reform joins us now from washington. grover, you do not like new taxes, no you don't, so what do you make of this budget deal that includes 25 billion more taken from the traveling public? >> the fee increases, which look a lot like excise taxes, the fee increases for tsa are disappointment. they move in the wrong direction. the good part of what happened is the threat that might break the sequester over the next two years, some of the house
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appropriators, republican house appropriators who didn't like the little trough in the spending caps were threatening to perhaps break the sequester. this agreement, if it holds, takes that off the table, the defense people will not be able to bust out the caps anymore and so the sequester over the next decade will hold. what has given up as additional spending over the next two years. the good news is there are two changes in pensions which will save a lot more money even in terms of present value than the additional savings. in the future this is a model. we need to take the fee increase is off the table in the future, hope we can get rid of those as soon as possible. we need to have offsets in entitlements. stuart: you're never going to get everything you want, and you don't want increases in tax rates especially on income.
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but do you think you could swallow some consumption tax increases? i'm thinking of a gasoline tax for example. surely a consumption tax is better than an increase in the tax rate on income profit or dividends. >> would you rather have one finger or two fingers chopped off? i don't think we need any tax increases. technically in this agreement they are scored as offsetting receipts, technically there is not a tax increase here. i think the tsa fee increase looks too much like a tax increase, walks like a duck, quacks like a duck. we had to go forward say no tax increases, excise taxes are clearly tax increases. raising revenue is an income tax increase. stuart: our guest last week, take a listen to this for one
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second. stuart: how do you feel the pain have of your income in taxes? because you do. >> i believe in a flat tax. i believe and 20, 25% everybody pays and we're over and done with. stuart: what do you say, grover, are you a flat tax guy? >> get all of my political and economic advice from actors and i think this is the place to look. it is a good step in the right direction. the rate is too high. we need to take it down, but to move toward a single rate tax so we have transparency and everybody knows what they are paying and what the kennedy kids are paying i think you will have a much greater sense of fairness of everybody's paying the same rate, and i grew up in massachusetts, constitution massachusetts is a flat-rate income tax so everybody knows exactly what they are paying five times the people of massachusetts liberal blue
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democrats have voted down moving to a progressive or graduating income tax. there's a lot of support for flat-rate income tax, we need to get there. stuart: you should have told us. >> immigrated to the united states when i was young. stuart: monday morning, a little slow. i got there in the end. question, what happens to malls when companies like sears go belly up if ever do? will they turn into amazon like shipping centers? we talk to the head of office oe depot in a moment. the dow up 130. ♪ ♪
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today. topping $60 earlier. pulling back a bit since then. ucap next, online shopping clearly king. what is the future of the american shopping mall? what the former chief at office depot do? who knows. i think this past weekend with the terrible weather in the northeast surely this was a bonanza for the online guys. but amazon stock go up today.
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stuart: exxon shares at a new high. how much set adding to the dow? it is a dow stock. nicole: it is a dow stock. it hit a new high. i tried it back 20 years. 98.03. $109 target talking about production growth and new york turning point in the strong capital as the likes. they love it. stuart: thank you very much. charles is going to make us some money. going to allison transmission. charles: 62% of the share of transmissions. in fact 99% of school buses, 62% of motorhomes, 67% class six or seven trucks. only was a don't have a big chunk of other gigantic trucks on the road that is a big area of growth for them. emerging market, a strong company.
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manufacturing data from around the world this morning. every place looks a lot better other than france. which is a cautionary tale. it will present amazing opportunities. stuart: it is not like you to go toward old industry. charles: vow is one of these large firms like always be late to the game, i would. sort of blessing of these firms. it has blown my mind. they have missed few hundred%. but there is still goldman sachs. stuart: bad weather in the northeast probably cap a lot of people indoors, probably force them to go shopping online. here's the question which we have asked many times in this program, what happens to the brick-and-mortar stores? let's bring in steve, former ceo of bricks and mortar itself, mainly office depot. good to see you. >> good to be here.
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stuart: would you agree online shopping this year really came of age. they made it easier for us to do it, and the weather has made it a lot more convenient for us to do it. >> that is absolutely right. in the good old days all you had to do was build stores, pile high and watch it fly as it were. that was reliant primarily on pricing. but online has increasingly taken over. look this year on thanksgiving day loan online retailers over a billion dollars. on cyber monday after records every single year we set another record up over 20% and this has been facilitated even more by the advent of the mobile devices and mobile shopping. these days being an online retailer is the place to be. bricks and mortar you have to differentiate yourself. stuart: if i go to the mall 10 years from now, how different will it look and in what way will it be different?
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>> the only way they will survive is to get a decent online offering, but to differentiate themselves on the basis of the shopping experience. i think luxury goods, manufacturers and retailers and softline retailers are really going to have the advantage still. if price is the only relative factor, bricks and mortar retailers are dead, more variety, more shopping experience. that is what people will go to the mall and the store. stuart: what about the big anchor stores, they are looking shaky. >> that is right. i have got to differentiate. they have to move and create these environments or stores within stores, shops within
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shops, but it cannot just be on price alone. they have to be sharp on pricing because people are not willing to go to the store and pay a huge premium even with the shopping experience if they can get it online for cheaper. people would go and buy online. they've got to be sharp on pricing. they have to have a great online presence themselves. a lot of times it going to be stores and you can check if the inventory and the pricing faster under handheld phone even when you're standing in their own store. big changes coming. stuart: thank you very much, appreciate you being with us. just out of interest, how much online shopping did you do? i will tell you upfront on most all of my christmas shopping was online. >> the entirety of it. i tried to go to the mall, circled around, no parking spots so why not do it online.
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charles: zero but then again i've only bought three gifts so far. but the wife is taking care of it so far, so another snowstorm, one person the house will be happy. stuart: it is not pretty, 20 somethings dressed up like santa brawling in new york city. is this the new normal for young people or does every generation do something like this at some point in use? we will deal with it next. impact wool exports from new zealand, textile producon in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 70% of our mutual funds beat their0-year lipperverage t. rowe price. invest with confidence. with investment information, risks, fees and expenses to read and consider carefully before investing.
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>> he's gone and done it now, tea party groups say speaker john boehner has declared war on them. on the not so civil war and the republican party. join us, "lou dobbs tonight," 7:00 eastern. stuart: our apologies but we are going to you an ugly video. 20 somethings dressed up like santa fighting in the streets of new york city. happen saturday at the annual santacon. what is a response to that, you are young. >> this is my generation at our worst. i've driven through three times. i have enjoyed experiencing it, but it is mostly young men.
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young women little bit more tame but the young men lineal's, that is what you are seeing. stuart: young men of that particular age, early 20s, full of beer, falling around in a group, violence, and that is every generation. charles: i actually think this generation is kind of kinder to each other than previous generations have been. it was like the united nations, it was so peaceful and so much harmony, my son has never seen a fight in school and he is in 11th grade. in my school there was like 10 fights per day. stuart: your take on affluenza, that is next.
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>> we've been covering the "affluenza" case that recently caused huge outrage. 16-year-old young man, he gets drunk, gets behind the wheel, kills four people. he will get no jail time because of his affluent upbringing, hence, "affluenza." here is your take. roger says that kid should be jailed, period. money talks. that judge should be removed. mark says, so if that works being rich, not being taught right from wrong, why won't being poor not knowing right from wrong work as well? pandora's box opened real wide. you're right, sir. michelle tweets, that killed kid that killed four people with car should be jailed and work five years sweeping floors. anything to add? >> this judge put another young man in jail for 10 years killing one person with a punch. so -- >> get the judge out of here.
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connell, it's yours. connell: stuart, thank you very much. big hour planned. you can forget about the honeymoon if you're janet yellen. at some point the federal reserve whether this week or next year has to start pulling money off the table. already that is bringing out the critics for the new presumptive new fed chair. the winkelvoss brothers are not going away. they continue to talk their book on bitcoin of all things. our friend brian wesbury, apparently reading from a completely different book of the he will be here to counter the twins. t. boone pickens will be here this hour on the infrastructure need to make natural gas work in this country. mr. pickens is apparently getting into the mutual fund business. we'll talk about that. oversaturated, the delayed release of "the wolf of wall street" movie. the movie makers are concerned about a jam-packed box office. we'll get into that. dialing daigh and even a little more on "markets now."


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