tv Risk and Reward With Deidre Bolton FOX Business August 31, 2015 5:00pm-6:01pm EDT
sometimes you find it when you need it. leaving some behind for a guy like me. >> that is nice thinking. i like it. david: that does it for us. "risk & reward" starts right now deidre: former ceo strikes back. week before apple releases its new iphone 6 as former apple ceo john sculley launching two new smartphones from his company. see if it measures up. he is with us shortly. first to a huge move in the energy market. oil settled higher by nearly 9%. price per barrel up above $49. today is the third session of the best three-session winning streak since 1990. phil flynn is with me now. phil, how much did the u.s. department of energy report play in today's move? >> i think very big part, deirdre. because what we are doing, is we're breaking bearish argument. no matter what oil prices did, u.s. production would continue to rise.
not only is it not going to continue to rise, it is falling a loot faster than anticipated. -- a lot faster. opec is willing to talk to secure lower price of oil. they will talk to non-opec oil producers like russia, like mexico. seems like they're getting ready to cut back production or at least talk about cutting back production. that wasn't supposed to happen. that is why you're seeing this incredible move in oil today. deidre: because we're back in a bull market, right? >> we're back in a bull market. remember, seems like we were in a bull market three weeks ago or before the 4th of july. we were back in a bull market. what an incredible comeback. you know what, deirdre, amazing when you look at the history of the oil. saw the dramatic price drop we had in july, the biggest we saw since the 1980s. almost every time in the history of oil we see these type of snapbacks.
harder they fall, the faster the fall, bigger rebound. oil stayed true to historical rebound potential. deidre: phil flynn, thank you as always, joining us there from chicago. well, gains in oil did push energy stocks higher but not enough to get markets into the green on this last trading day of august. stocks finished their worst month in three years. fox business's ashley webster with me now. good riddance to august, right, ashley? >> good riddance, good bi. all the major markets finished down 6%. that is how rough it was. however one week ago we saw the market down almost 1000 points. all things considered we were down 199 points this morning but aren't that, you're absolutely right, oil sector and oil stocks helped to prop up the markets overall. some big winners for you, talking of oil stocks, new field exploration was up 5.4%. we had conocophillips up 5%,
thank you very much. and phillips 66 also up 2 1/3% on back of hearing warren buffett's berkshire hathaway taking a share in phillips 66. that stock did well. the biggest loser for the month of august, disney, supposed to be happiest place on earth. maybe not for shareholders. disney's stock down 15% on the month. that pretty much says it all. it kind of took a dive. one of the things that hurt disney, at beginning of the month it reported it was losing subscribers to espn as more people cut the chord from cable tv to go online. twitter was a good story. we always like positive news. got a nice up frayed to buy from neutral on suntrust -- upgrade. jcpenney, talking about upgrades, it is alive and kicking go upgrade from deutsche bank to a buy from hold. there is meaningful up side to the stock, says deutsche bank. we even believe them.
of the they made gains up to nine bucks, deirdre. deidre: ashley, thank you as always. thanks for joining us from the floor of the new york stock exchange. speaking of selloffs, some analysts tell us parts of the negative sentiment came from china and a report that the government is abandoning large-scale stock purchases. that has yet to be confirmed. what is clear for all all to see is that the chinese government is spinning stock market selloff biers aing journalists and others for alleged online rumormongering. one local financial journalist forced to confess on state media. the reporter apologized for causing panic and disorder in the stock market and inflicting huge losses on country. the statement, i should not published a report that heavily and negatively affected the market at such a sensitive time. i caused such great losses to the country and stock investors. i am deeply sorry. with me now, money managers scott lee, lee munson.
can the chinese government, scott, scare people from selling? what does that do to u.s. investors if anything? >> well, i think they're already trying to do that, deirdre. intimidation, the force, that they're pushing on their own people, on their investors and journalists. it is very anti-free market. very bad for the markets long term. it worked for a while. if you look at shanghai composite or up until say, april or may, it probably looked pretty amazing. reminded me of nasdaq run in the late '90s. then everything is kind of coming back to earth and i think the government is showing their true colors via their intimidation. what is happening, if you're an investor over there i feel for you. it's a dangerous game to be playing. if you're in the united states like we have done as i told you prior, we pulled our money from china directly as far as indexes are gone.
i just don't trust it. deidre: lee, picking up on what scott just said, let's even put aside the concern about freedom of speech or how journalists can or can't function in various countries. scott said something, it can work in the short term, these measures but not in the long term. is that your take as well? >> yeah, i mean we have to remember why is this story so important? why are the three of us talking about this right now? because we have to somehow rectify why the second largest economy on the planet is less than 2 1/2% of the global stock market. they don't match. you have a immature baby market and you have these nannies coming in. we're horrified by it. we have to remember, this is brand new brave new world over there. less than 10% of the chinese population owns stock versus half in the u.s. it is a very small stock market, a big economy and i don't think this will end anytime soon. but the idea everybody pulled their money out is ridiculous. for everybody buying there is somebody selling.
we're in emerging markets long term for our clients because they're a great inflationary hedge. you have to be careful how you rebalance. don't just jump into it because the u.s. stock market went down 10%. i would expect more of this control going forward. that is why we discount emerging markets. you doesn't pay the same amount for russian equities because you know half of it has been stolen. deidre: hold those thoughts. we'll talk about market controls as they relate to our own markets. so stay there, scott martin, lee munson, rejoining news just a few minutes. from chaos in china's market to here at home, former sec chairman harvey pitt says our market is out of control. harvey, great to have you with us. thanks so much, when you say out of control, which part are you most concerned about? >> well, i'm concerned with the wild volatility that our markets are experiencing. we have seen enormous shifts in a matter of minutes and hours
instead of over a longer period of time. that marks very volatile markets and markets susceptible to constant interruptions from an orderly flow of trading. deidre: as a former sec chairman, would you be looking into what some have suggested are issues with high frequency trading for example? >> well, i think one has to look at all of that. the current chair, mary jo white , has announced a review of all sorts of market structure questions. and i think that's an enormously beneficial undertaking on the part of the sec. real issue i see it, we're becoming a nation of effectively day traders. they're going in for incremental trading and using computers in enormous numbers.
high frequency trading is very often accompanied by spoofing and putting in orders that have no real intension of being met. those things can be manipulative and and adversely affect our market stability. deidre: so, harvey, how concerned are you, let's call it for the little guy? we were covering all last week how numerous online brokerage sites, people couldn't access their accounts, whether td ameritrade, charles schwab, any others, people couldn't sell even when they wanted to. on a scale of one to 10, how worrying is that? >> 11. it basically is critical that people be able to access their accounts and be able to engage in orderly trading. if markets are backed up or if there are brakes put in place that we have automatic brakes put in when trading
precipitously drops by a certain amount, that's one thing but people have to be able to access their own accounts and be able to trade in an orderly fashion. if you take that availablility away from individual investors, you are basically condeming our markets to just being marketplace for large institutions. deidre: harvey pitt, thank you. important perspective there, former sec chairman and ceo of calerma partners. one causes volatility. what the fed may or may not do in september. peter barnes at annual conference in jackson hole wyoming in. he is back in d.c. peter, you were there. tons of people discussing it. now seems like a hike is back on the table for september? >> yeah. yeah, yes. one of the reasons is because stan fisher, the vice chairman of the federal reserve board he
was one of the speakers. he was careful to be balanced. his line from prepared remarks got everyone's attention and fast. quote, because monetary policy influences real activity with a substantial lag, we should not wait until inflation is back to 2% to begin tightening. that is important because as you know the fed has a 2% inflation target. headline inflation is basically been zero year over year due to falling prices and imports by higher dollar. fed officials called them temporary factors. all you have to do is look at trading in oil prices last few days to see how they could be right. just today prices were up 9% or so, $49 a barrel for west texas crude. so-called core inflation rate stripping out energy and food prices which can be volatile is running one-to-one 1/2% depending on measure you look
at, closing in on the 2% target. fed officials look at the numbers for trends, deirdre, as they consider whether or not to raise interest rates. deidre: one thing is clear, peter barnes, volatility is back. we're glad you're back in d.c. thank you so much, peter with us there. >> thank you. deidre: compare that message what peter was talking about to what several former fed presidents told us last week. >> i don't think i can ignore the events of the last couple weeks but i think i have to evaluate them as as a risk to the economy. >> which remain i think below what we can be in terms of employment. i think there is room for improvement in terms of employment. >> given what we've seen recently we have to wait and see. i don't want to take a signal from something that can turn out to be noise. deidre: scott martin, as promised, and lee munson, as promised back with me. scott, what is your take? seems like no, no, no, no, then, well, maybe? >> yeah. if the market goes up 100 points
or 200 points on the dow maybe the fed is back in the game. if they go down they're not. i think this is crazy. to think there is this much dissension on board of governors now just tells you they should not be raising rates. things should be certain. i guy with what mr. fisher said. but i things should be more certain. 2% inflation. they used to target 2.5% because inflation numbers were so bad. i think you have to be certain before you put rate hike on the table which i think will be disasterous for stocks next month. >> i disagree with scott but i get what he is getting at f we hit a recession next year we have something to come up, no one wants qe 2016. come on, nobody likes the qe stuff because we can't see it. makes it harder for to us trade bonds. i think best thing the fed could do is raise rates next month in
september. and it is not going to blow up the market. in fact i think market would rally on it, people say, hey, things are not that bad. fed felt unemployment good enough, on trend, inflation lackluster but unemployment is where it is at. if they don't, it signals one thing, that we're weak and need to keep sucking off mother's milk called the fed. think that is bad for the economy. it will make the hangover worse. deidre: lee munson, well-argued. scott martin, well-argued. as we heard stanley fischer say we could conceivably raise in september. that is not to say we will. good couched language from the fed. thank you both. when we come back, former apple ceo john sully on a product announcement that could rival apple's iphone in some parts of the world. then to the white house announcing chinese sanctions in response to the red state's most recent hack attack as a new report reveals just how china is using hacked u.s. information. ♪ [ male announcer ] we know they're out there.
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see car insurance in a whole new light. liberty mutual insurance. deidre: stock markets finished day down and month down. august the worst monthly performance in three-years time. here are some other stories we're following for you. an italian and oil gas gain ant making a -- giant making a game changing discovery in the mediterranean. finding world's largest natural gas field off egypt which could provide stability to the region. president obama announcing that mount mckinley will be renamed denali. he is using executive power to restore a native alaskan name with deep cultural significance to alaskans. he is hoping the trip will con vince the world to sign off on a major climate change agreement,
one that will be proposed later this year. federal judge saying, no settlements are being reached on new england patriots quarterback tom brady and his case against the nfl over "deflategate." the judge says the ruling could come down to some time between tomorrow and september 4th. speaking of sports, u.s. open kicks off in new york. 33-year-old serena williams begins her bid for what her fans dub as the serena slam. if she wins she will become the first player since steffi graf in 1988 to complete the calendar year grand slam. well, in other headlines, there is a new report claiming that china and russia using stolen data to find and out u.s. spies. this is going on at the same time that the obama administration is developing economic sanctions against chinese companies and individuals who benefit from sensitive information. with me now, retired lieutenant colonel bill cowan. so, colonel, you say the
sanctions are too little, too late. why not better late than never view? >> well we certainly have to do something, deirdre and chinese and russians both have gotten well inside a lot of our systems. they know how to come at us with defect -- effective cyber attacks. we've done a terrible job. we were way late getting into the game. they were doing things for a long time before we really acknowledged it was going on. we have a long way to go to protect industry, technology, government, militariry, state department, the white house, all the places being attacked before we can safely safe guard all the entities both the chinese and russians are coming after. deidre: colonel, i have a former nsa source who basically characterized russia as a carnivore, china as an omnivore. do you agree that they have different motivations and different kind of data that they're looking for? >> i agree totally. that is a great way to describe it. look, russians are primarily
trying to sort out who on our side is involved in the intelligence business. they want to stop those guys short. the cyber attacks given them sufficient information to identify some people on our side who are u.s. citizens, operating as intelligence agents. that gives them ability to track these guys, where to find out who on their side is working with them. chinese on other hand are interested in military and intelligence and diplomatic. their real focus, deirdre is economic. they're trying to come here to get any economic data they can from any source, government or industry to gain some competitive advantage in things we're doing in competition with them. deidre: makes all the sense in the world. colonel, thank you so much. retired lieutenant colonel bill cowan joining us there. >> thank you. deidre: that new report that the apple tv may sell for around $200 just breaking today. as apple's next iphone announcement coming in september, at least that is what is expected.
. deirdre: john scully decade as apple ceo grew 1,000%. now 30 years later, numerous projects on, john scully on with me now. great to have you with us. your company sells phones in india, southeast asia, parts of africa, why target customers in those parts of the world? >> well, diedre, great to be back with you. silicon valley is legendary for building companies like beats like apple like tesla like nest. but these are companies that have always that shouldn't the premium of their market.
what we're doing is taking the industry of smartphones, over 2 billion phones per year and targeting the gaps in the market, particularly in the fastest growing in countries and bringing in the highest quality technology, typically found in a $700 phone but we're able to deliver it for $199 with no compromises for fit, finish, components, all of those things. we have an entirely different business model. deirdre: so, john, i want to ask you how you were able to, we're looking at video now of design that is really sharp as apple is known for and how you can offer that at a price that you just mentioned. but i'm wondering about connectivivity. are there cell phone towers everywhere? how is the infrastructure going to work in places that aren't as developed as north america, for example. >> well, that's a great question, and it creates a huge opportunity for us because the countries -- we'll be in 70 countries by 2017 and these countries are going to a
conversion from low bandwidth to 3g, 4glte, these are the high bandwidths that we're accustomed to in the u.s. so it's a perfect time to do this and infrastructure is quite good in the cities as you know in those parts of the world up to 70% of the population actually lives in cities. so it's a very attractive market opportunity. but here's what really made it interesting for us. is that you look at the big international brands smartphones like sony, like htc, like microsoft. they have thousands of people, tens of thousands of people in their organizations, and the reality is you cannot afford those old fashion structures and be able to compete in a commodityized industry and still deliver the best of quality in terms of technology and components, so what these organizations built with tens of thousands of people and we can do it in very novel ways and then we have -- the best
designers in the world, former apple head of design robert bruener and his team who worked with me when i was ceo of apple had this done a spectacular job, our phones look great and don't look anything like an iphone. deirdre: yeah, they certainly don't and you're able to offer this quality product as a lot of other manufacturers have to commodityize the rest of the business. you mention your ten-year at apple. what stands out to you now whether it's the new apple tv that we're talking about, this $200 model, but the idea of streaming a year from now do you think that going into tv is the next, right step? >> i think it's a brilliant step for apple. they've been taking their time to get there but i think they're doing the same thing to the television industry as they did to the music industry. the technology is not the hard part. i think they've pretty much got that solved, and we'll see the first example of that with their new apple tv.
but they really need to have is the access to the local live broadcast and that means lots of negotiations with content companies, with broadcast companies, getting the rights worked out. but i think apple is going to really revolutionize the experience. what is more clunky than the old-fashioned set top boxes where nothing's easy to activate, they never work right and it's actually a minimu monopoly because there's $20 billion a year on the companies and it's another example to revolutionize another industry. deirdre: and when you say that you're putting it with apple music and then apple watch, which still is undetermined whether it's going to be a hit is the apple watch the next ipad? i'm sure you remember this as well as anybody. but people complained for about four years it was a stupid name, didn't understand, and then all of a sudden sales took off.
will the watch be the same? >> well, i don't have a watch. i have every other apple products because i love apple products. i'm waiting for them to untether the watch from the iphone and find out what the really killer purposes of it is. but it's beautifully designed, no question about it, everything apple does, they do with a patience and care and incredible confidence. so i can't predict the apple watch, but i can say i think the apple tv is great. i think apple pay is terrific. i think -- even rumors of apple doing the car business, it sounds spectacular. a car as a computer on wheels. so i think apple's days are really, really positive ahead, and i'm excited to have been a part of the journey. deirdre: and innovation, innovation, innovation; right? it sounds like for apple and for your company, obi world phone. thank you so much for the time. joining us there from california. well, when we come back when you can't beat them, buy them. remember this hackers who
stopped jeep cherokee in its tracks? uber is now hiring them to build their new driverless car. sounds good but my next guest says it could be down right dangerous for passengers. and then they are calling him the billionaire, the minecraft creator who stole this company from from microsoft for more than $2.5 million says money cannot buy happiness if a denture were to be put under a microscope, we can see all the bacteria that still exists. polident's unique micro clean formula works in just 3 minutes,
deirdre: remember that jeep hack story a few weeks ago? hackers remotely took control of the car? well, uber has now hired that team to bullster its own security system. jeremy, a great roundtable. all right, jeremy, i know you have a dog in this hacking race. what's going on? >> we were talking about this story beforehand and we have some very different opinions. personally i think this is a great space for uber to be getting into. i think the future is going to be kecked cars and self-driving cars and any company -- deirdre: in which case you need to reassure people about security. >> and you have to get into that right now because we're already happen way there. we have a lot of this technology already today. so i think it's a great move. deirdre: all right. but what if that becomes old technology six months down the road? they have to keep hiring the new teams, the new hackers? >> you have to keep working on it for sure. deirdre: sooner or later there's going to be kids in diapers, like -- >> for some were. >> look at half the world,
they're uber, it's a smart pr move to hire the guy but your question, though, is who gets to win the wireless car space. the driverless car space is going to get us back all of that time we've lost over the last 30 years. deirdre: with apple, it's a computer on wheels. >> think about the elder being able to, you know -- to my grandmothers car when she was 89, she would get it back. so driverless car is going to be big to prevent hacking and say, hey, we have top -- our top people on it. that's a psychological play. that helps as well. deirdre: okay., so, lauren, speaking of who is going to win. netflix is losing epix and there's a lot of movies that come with that. hulu gets it. so would you buy or sell? i'm putting you on the spot here. but as a certified financial planner, i know people ask you these questions all the time. >> yeah. they're want losing it so much as as making a choice because you can watch these movies elsewhere, we want original content, i think
it's a smart movie, and i think it might be something to watch for the future. but does it make you feel more or less, peter, excited about netflix versus hulu? let's just say they're fighting for our time, they're fighting for our eyeballs. >> i believe netflix is all about original content. they're doing what hbo did five years ago. their new serious narcose is phenomenal. and for the extra $5 a month i'll make sure i get all my shows. and seinfeld -- deirdre: well, hulu got it but it was $780 million. >> it was a phenomenal deal but the ton of new subscribers, if netflix subscribes themself as original content, i'm fine spending the extra $9 a month . deirdre: speaking of spending a little extra money, jeremy the team the billionaire or the founder of minecraft who became a billionaire about this time of last year he sold minecraft to microsoft for $2.5 billion. >> pocket change. deirdre: a slow weekend, a
blue moon, tweeted out some pretty bizarre stuff. >> yeah. it's hard to feel bad for this guy. he tweeted out stuff saying i'm feeling a little mopey. i don't have any friends anymore. it's tough being a billionaire. these are some very unique challenges that only he is facing. deirdre: okay. we have one on the screen there. the problem with getting everything is that you run out of reasons to keep trying. >> this is a small violin. but here's the thing. i get that. i've been a entrepreneur for seven years. i've lost three friends to suicide, and depression. i've struggled with depression. being a entrepreneur sucks, you can't go to friends for help because they don't get i. deirdre: it sounds like used to building. >> but you don't go on twitter to talk about it from your spot. you go get help. you go talk to someone because there are people who are not billionaires who are suffering with that who have a real problem to handle that. deirdre: did you hear that minecraft billionaire?
we are back in just a few moments. and lauren, jeremy, and peter back with me in just a few minutes can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive?
♪ ♪ ♪ . deirdre: apparently money can't buy happiness. but good music can. now, this time last year as we've been talking about marcus, the creator of the video game minecraft, sold it to night of the $2.5 billion, so far a very rough weekend, here are the tweets he sent out this weekend. hanging out with a bunch of friends and partying with famous people, able to do whatever i want, and i have never felt more isolated. peter, lauren, jeremy back with me now. so, peter, you just gave a
very heartfelt response to this. very personal, very sober, we're just looking for the quick and dirty. >> i've got no jokes on this one. deirdre: but as far as what this means to some of these builders who overnight just see billions. what's your take? of how they manage it. >> well, it's an interesting perspective. we look at these guys and say gosh that's a lot of money. so maybe there's a little human side to this as well. he also tweeted a few hours later a little bit of regret. i got caught up in the moment. i didn't really mean all of that. you guys ran talking about us in the press. why did you tell all those stories. not necessarily asking me how i felt. so maybe there is another side to this story. deirdre: all right. and some people said why don't you just do like elon musk does and put some of your money back to work. and, lauren, i'm sure some of your clients have had -- not $2.5 billion of foreseen wealth but some foreseen wealth. how do they manage it. >> money can buy you a bed but not sleep.
so you have to put money to work, you have to understand what your emotional needs are and if you have that much money -- first of all, this seems like a cry to help for me and maybe someone can reach out to him and see what is driving him? what would inspire him -- he doesn't have to be elon musk. it could be something completely different. there are a lot of needs. deirdre: and personal issues. found a great girl but she's afraid of me. this is a twitter that he later regretted and and made me think okay. maybe this is a bad break up story. >> far from a normal man. i feel he gets one hour of sleep a night and constantly thinking about a lot of things. he's a workaholic opinion. >> one of the best pieces advice i got was from now on every time you go out drinking, don't take your phone. . deirdre: okay. that's, like, the google glasses; right? >> yeah. deirdre: the idea at one point past midnight. >> past midnight to 5:00 a.m. you have to enter a math problem to send an e-mail. brilliant.
deirdre: speaking of musk and trying to save the world that tweet just exposes the word jerk in there that make me sell minecraft again. it makes me just wonder about these evaluations, though, and what we're seeing. >> well, i think that vr and augmented reality, virtual reality is a wonderfully amazing technology. so the purchase of minecraft -- deirdre: it makes sense for microsoft. >> it certainly makes a lot of sense. there is potential there. >> there is. deirdre: lauren, how many of your clients are looking into investing into privately held tech companies? >> this is quite a big millennial push right now. a lot of them want to get -- you want to invest where you know and a lot of them believe in uber, they believe in these big companies. a lot of them are noting to do that but you still have to take in the risk reward into consideration with it because these are newer businesses, their business model is less proven. it's not just the average. deirdre: and a lot of people say a third, a third, a third, you have to be prepared for a third you bomb out and never
give one penny out. thank you all three of you. great conversation. >> pleasure. deirdre: jeremy, peter, and lauren. when we come back a new batch of hillary clinton's private e-mail scheduled to be released more than 6,000 to go through. it will be the largest to date. we will bring them to you as soon as they are released. then these russian leaders maybe have a future in personal training. the workout video that's making even a few pros a little jealous you are looking at two airplane fuel gauges. can you spot the difference? no? you can't see that? alright, let's take a look. the one on the right just used 1% less fuel than the one on the left. now, to an airline, a 1% difference could save enough fuel to power hundreds of flights around the world. hey, look at that. pyramids. so you see, two things that are exactly the same have never been more different. ge software. get connected. get insights. get optimized.
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strategist o'connell democratic strategist from the accountability project ford, first to you, what do you expect to see? >> well, i expect we're going to find out that hillary clinton has been lying the entire time about her e-mail server and in march it contained no classified information now we know there's at least 200 e-mails on this. look, the whole scandal is hurting her and it's quite clear. more than 60% much americans say she's untrustworthy. this is a self inflicted wound and she's making it worse every day. >> some of these e-mails are when they were classified and when they weren't and now we're going to have to look at them and see if they were classified at the time and that's going to be the big question here. as the state department said today, it is a little bit more complicated than it seems on the surface. now, whether that's all intentional, that's the big question. democrats are sitting here and saying did hillary clinton intentionally do this and why did she? why did she set up a separate
server because this is all to benghazi, why did she do that. >> let me say one thing. deirdre: go ahead i was just going to say she makes a good point in that there's this timeline of what was classified and when. >> true. but guess what? two of the e-mails were top secret before she received them and 18cus90f has a strick ability and there's an element here which is why the fbi is investigating here. she would like to say she did nothing wrong and it wasn't classified at the time but she has a political problem and criminal problem as well. deirdre: is it possible if i have super high clearance obviously she did as secretary of state, you can just be forwards things out. >> absolutely and that's with you of her other up to this point is that she's forwarded, responded to e-mails that were potentially classified. those were the details we're going to have to get into when we stream through these e-mails for just respond to the point.
yes, if that if that is true, you know, they r she broke the law, then she broke the law. but we'll see that through the investigation. there's no proof to this point. we've never seen the e-mails, only the fbi. deirdre: ford, you brought up the point in the iowa poll bernie sanders is only 7 points away from hillary clinton. so he is closing in he on her. he is a self described socialist political scientist say he's not even a socialist, he's a democrat. but whatever he's clearly an outlier and closing the gap. is this proof to you that the e-mail controversy is taking a toll or are there other issues here? >> well, let's understand the first thing and that is that bernie sanders is basically appealing to progressive. what's happened here is hillary clinton has lost third of his support since may so, yes, the e-mail scandal is hurting her because if it wasn't hurting her, we wouldn't hear about biden talk because remember biden is the only other democratic candidate who has general election electability potential. deirdre: do you see this more
as a vote and as far as the sanders campaign goes, he says not so much but people don't like hillary it's just that they really, really like me. do you think that his message is really just proof that this is an outliers campaign? sanders on one side and trump is the other person. i'm thinking on the other side of the aislan. >> so here's the interesting thing about the poll is that 86% of bernie sanders supporters are voting for bernie sanders because they like bernie sanders policies and only 2% are voting for him because of hillary clinton. nonhillary vote. so it's interesting because there's some strange thing happening in the democratic party right now where a third of hillary supporters have been lost in iowa over the past two months but they're saying that they're not going to bernie sanders because of hillary, they're going to him because of bernie sanders. now, when you look at the biden factor, he splits it in two. takes seven points away from hillary and seven points away from bernie sanders. i don't know if this is the question about who are we and
what do we represent? i don't know if this is as much about hillary was he think it is and what is the identity of the democratic party. deirdre: go ahead. >> i slightly disagree. the key here is that bernie sanders can't get establishment democrats and he can't get the black vote and the reason why joe biden is so dangerous because he can peel off that black vote and get support from elizabeth warren. bernie sanders is going to make hillary clinton quease auto. he may win iowa and new hampshire but he's not going to win the democratic nomination at this point. deirdre: speaking of outliers, i'm going to play a little sound bite here from someone who would clearly be an outlier. -- all right. actually it was suppose to be kanye west from last evening i think a seven minute speech. here it is. >> as you probably could have guessed by this moment, i have decided in 2020 to run for president.
[cheers and applause] . deirdre: ford to you first. is this just proof, for example, that kanye see okay. bernie sanders is having his moment, donald trump is having his moment, why not? >> absolutely. he wants to tap it on the potential for a $4 billion popularity contest and if hillary clinton doesn't win in 2016, it doesn't shock me. don't be surprised for brad pit on the republican side. deirdre: and your take here from mtv to national politics? >> i'm not going to -- and, listen, i didn't think donald trump was going to run and do this well so i'm not putting it past kanye west. i was a little surprised, as you probably guessed right now, i'm up here to declare my presidency. deirdre: yeah, i thought maybe just, like, sing; right? >> exactly. deirdre: thank you both. so glad to have you with me. >> thank you. deirdre: republican strategist ford o'connell, and the accountability project executive director joining me there. when we come back a new putin
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deirdre: you have seen him riding a horse shirtless and now there is more. the russian government posted a video of its president vladimir putin working out with the prime minister. so that's at a gym, and you know that town from the 2014 olympics, the time the most expensive olympics ever, which were nonetheless fraught with concerns about conditions for the athletes. the video's purposes was to showcase putin's healthy lifestyle. well, a quick check on the markets. you did close the day down, you can see on your screens there, the dow, the s&p 500 and the nasdaq lower for the day. clearly lower for the month, in fact, this month of august the worst months.
you can underline that. the worst months in three years for the u.s. stock market. more context and analysis coming your way next making money with charles payne starts in just a few moments. ♪ ♪ >> good evening i'm liz macdonald in for charles payne, more of hillar hillary clinton's e-mails said to be released tonight. more than 7,000 pages and we are going to tell you how many of them are considered classified. plus the latest gop polls show the outsiders, the nonpoliticians are a one, two punch for the gop party and the irs is in hot water again. now a judge demanding the tax agency be released every last demand the white house made for personal tax information. do not go anywhere. making money starts right now. ♪ ♪ >> breaking news. tonight the state department will release a new batch of