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tv   Cavuto Coast to Coast  FOX Business  December 28, 2016 12:00pm-2:01pm EST

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completely different story. >> 20,000 next year. ashley: there you go. down 20 points. connell mcshane, a little bit of the irish luck. he is in for neil cavuto. connell: thank you i'm ashley. not like we don't have other things to go. in this weekend for the other things we have to talk about "-begin-quote the secretary of state john kerry and those remarks he saw here. it was a big speech on the middle east and the peace efforts there, especially after the vote at the united nations. there have been heightened tensions certainly on the overriding message from secretary kerry two state solution is the only answer. watch. >> this is an issue which all of you know i have worked on intensively during my time as secretary of state for one simple reason because the two
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state solution is the only way to achieve a just and lasting peace between israelis and palace indian. >> we are joined now from the federalist by reporter bree payton and this was the answer to the united states abstained from the vote at the united nations stating that a sickly we did it because it's in our interest in secretary kerry also said in their interest to many in israel to burst to a two state solution. the building of settlements which is what it was about dance in the way of that. what was your reaction to the speech today? >> just a few minutes ago we all heard secretary kerry basically called benjamin netanyahu and extremist and said israel has a choice to either be jewish or democratic, right? not in accord and to the way that he lobbied and worked with the new zealand in order to introduce the resolution just a month ago and the fact that the obama administration appears to
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have kind of pressure are u.s. ambassador to the u.n. to abstain from voting on the fact is that such a critical vote i think indicate the obama administration has been actively plotting against israel for quite some time now. his work today kind of confirms suspicions many of us have been the reports we've been hearing from benjamin netanyahu themselves that obama personally lobbied and push for the resolution to go through. connell: reports in the israeli press suggest what you are talking about. not so much that is talking about why they did what they did. emphasizing over and over it's about to say the that if it is one state, kind of interesting comment today. israel can be jewish or democratic b can't be both. it does bring up a larger point, a political point. what was the point of all of this on the way out for the obama administration?
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>> you're completely right. just the way the obama administration in fact been in the way they seem to be plotting against israel on his way out the door and the terrible iran deal he railroaded and ran through last year really does indicate that they don't really understand our relationship with israel, our country and our history is tied to their history and israel success is our success and that seems to be something secretary kerry just really doesn't understand. i was really saddened by the fact he said israel can be democratic or jewish. this is indicative of the way the obama administration overall and liberals seem to misunderstand the role they play together. >> i want to bring and enter feldman the campus coordinator for president obama. good to see you. i'll ask you the same thing.
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but with the overall point of making the speech for secretary kerry is the obama administration is on its way out? >> look, this is about putting forward an urgency about how important it is to find a way to get a two state solution. i don't think i could disagree anymore about the obama administration plotting against israel. that is just nonsense. the reality is here that the obama administration has asked the benjamin netanyahu government to stop settlements over the green line doesn't the times and they've ignored. benjamin netanyahu's government has ignored and ignored. the obama administration isn't doing anything unprecedented. this has been a u.s. foreign policy for decades. this has been a position held by republicans and democrats. to say we are plotting against israel, i think the obama administration's number one priority is the safety of israelis in the entire middle
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east and the world. i'm not sure we can say that about the incoming administration. connell: your point i guess is the one secretary kerry is trying to make us a settlements are live. >> absolutely. absolutely is. benjamin netanyahu is ignoring u.s. president for decades. obama isn't just coming out of the blue insane mess. this has been policy for republican presidents and democratic presidents. trade tuesday secretary once again. he defended some of the criticisms that have come in, many from president-elect donald trump himself following the recent u.n. vote by saying this. >> regrettably, some 200 seem to believe the u.s. friendship means the u.s. must accept any policy regardless of our own interests, our own positions, own words, on principles. even after urging again and
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again that the policy must change. friends need to tell each other the hard truths. and friendships require mutual respect. connell: to this point about friendships we have tweets today hours before the speech donald trump saying we cannot continue to let israel be treated with such total disdain and disrespect to the use of a great friend in the u.s. but not anymore. the beginning of the end was the horrible iran deal and now this. the u.n. come as a strong israel january 20th is fast approaching and there was a response to that from the israeli prime minister again on twitter. ensuring that yahoo! appeared as an electron, thank you for your warm friendship and clear-cut support for israel. you first heard what you make make of all this? is pretty clear the obama administration priorities are not keeping israel safe. it's appeasing liberal elite and the fact that he is doubted that with the u.n. and hates the
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united states just really indicates that it's not his priority. his priority is pushing a liberal agenda most americans don't agree with. most americans, jewish americans are happy at donald trump's words that he is coming forward and is responding favorably and being kind to an allied, a very strong ally with pat for decades and a very important ally as they really are the only stable entity in that region. it's an important critical relationship we have with the united states. the fact donald trump is going to work with and in the friendly towards them and treat them like allies is a favor: could they many americans are looking forward to. connell: just a pleasing liberal elites. >> first of all, let me say i am a jewish american and i am not happy with what we are seeing from donald trump at all.
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i guarantee you most jewish americans aren't either. connell: what you mean by that? >> look, we're learning about foreign policy proposals via twitter. he can even lay out his speech every single day we hear different opinions. he made one -- remember, he has has another press conference since july. he made a speech on foreign policy that was extremely broad over the campaign and they campaign and he campaign and he also, speaking of the jewish american has had people that have been sympathizers to anti-semitism in his government. i am telling you i am more scared of the jewish american now than i've ever been before. >> i'm trying to get at what your upset about. what he think he will do that's not in the interest of jewish americans and/or israel? >> i don't think he stable. i don't think any of the
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policies he spoke forth get us closer to a two state solution which is what that yahoo! wants. that's what he said on 60 minutes a few weeks back. secretary kerry's point about having to be bought with friends is absolutely right and not having to agree with every single thing is exactly what netanyahu sat on 60 minutes aired our foreign policy is more in danger not only in israel, but on the whole world, all these issues on the one china policy, nuclear proliferation. give me a break. we are hearing all of this over twitter. connell: stay with the topic of israel for a moment. talk about those things another day another time. your thoughts in terms of a number of different things here. the chump administration, we will see what happens, but it's definitely a different approach and comes back to the larger point about what was accomplished in secretary kerry
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speech. >> donald trump has been very consistent in his thoughts and in his words towards israel. there is a big difference between being blunt with a friend and pulling their pants down in public, which is what secretary kerry just did a few minutes ago. the fact that he's been consistent about being friends actually with israel i think is a refreshing change from the obama administration, what seems to have disdain for the country. >> hold on, how do you respond that we are -- america's position, obama's administration position on settlements is following u.s. price that going back to republican administration that's what i don't understand here. >> the argument is that they are fsa said a few minutes ago that they make the region must date. >> that the position of george w. bush.
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>> right. it's pretty clear like i said earlier the obama administration isn't interested first in the safety of israelis. they are interested first and apologizing for allegiance and apologizing for values in madison and obama has done consistently all throughout his tenure in office that is trying to up to these global elite and the u.n. and try and do things they want to do. go ahead. connell: to that point, i'm not sure again, said this a couple times that what will be accomplished by this is clear. president clinton tried something similar on his way out the door, too. a change in policy from an outgoing administration is not something. are you trying to restore your legacy i don't know the overall goal of today's remarks. maybe you can speak to that before we wrap it up.
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>> i think we are trying to reassure the world about the maturity of the united states has when it comes to foreign policy. over the last several weeks, more preferred on foreign policy and the incoming trump administration has been nothing short of terrifying and i think we need to reassure the world that america is going to be in place its opinion, you know, all the time in a manner that makes sense. it's not a rant or the secretary of state. the commitment we have, the commitment the united states has two lasting peace in the middle east. connell: we are going to wrap up i'm not. we have about more as well with a lot more on this topic a little later on in the show. we will also keep an eye on the markets. the dow has been slipping a little bit today done 40 plus points.
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overall, optimism quite the election. other president-elect could give a further boost later today. we are expecting an announcement from palm beach later today. here to talk about that next.
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>> to a market alert as the dow is slipping today. down 60 points. the market still on a tear. president-elect donald trump is dead. expected to deliver some news on the economy today. sean spicer will be press secretary said earlier today it will be very positive for american workers. from "the wall street journal" health reporter, veronica daiquiris here. david is here and so was jerry.
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>> and better company. connell: i don't know. it's almost like you this is so wide-open that we can guess and say it's another carrot dirt pit sometime this afternoon there will be announcement to know somewhat formidable come in which they will be there will be good news for the economy. >> will it be a video? we don't know. will he write or mandate company or are we going to find out more detail on this tax policy which is the one thing on the financial at answers i speak to are super excited about because it painted for the economy. on the downside, is he going to say something about immigration that can put cold water on the dow 20,000 in the near term -- and mark i don't know. connell: it's interesting that -- we have no idea what is going to say, but sometimes he
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will say something that on the surface is not really that significant, but because he says it it has to something he previously says and you have the narrative is more pro-business, new sheriff in town and they can help themselves the number of announcement. >> that's absolutely true. you don't know what to expect. that's the genius of his brand. you never know what's coming up. this is something new for the media that they have to pay attention to. they don't get the heads up on what's coming next. i would love to see the plan for more jobs. i would love to see the plan for tax cuts. that's what would really get this economy firing and within the dow further. connell: to veronica's point, sometimes in the best terms of individual companies. good, bad or indifferent. >> so far he's top about companies that have business with the united is government like boeing and lockheed martin. that's perfectly legitimate because us taxpayers or the cusp
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of merit and we want to make sure we get the best deal in his acting on our behalf. so that's fine. when he deals with companies to decide, for example, to put operations in europe because of policies, if he was to focus on those companies in particular, he hasn't done that quite yet on the campaign trail talking about apple manufacturing too many iphones. this morning he put out a tweet doing my best to disregard the statements and roadblocks a big question is how he can go around the president's regulatory policy, some of which are being put at this roadblocks. he's going to try to drain this wants, but is that going to be impossible with the roadblocks the president is putting up? connell: some of that can be undone by undoing the executive orders in place. >> it's not always that easy. one risk that folks aren't really focusing on is a risk within his own party.
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i don't wish to do so because republicans can control congress and the white house. especially when it comes to something like his infrastructure ideas come at their own dataset and his own party are going to be so happy. connell: and his own administration. >> the numbers don't work. you can't cut taxes to the degree he wants to cut taxes. >> we are going to get better growth, but i just don't think it's going to stay. >> i think we can. we did in the 1980s. the reason the deficit went up is because of all the defense spending. in terms of draining t swamps, there is one agency created in the past or in the obama administration during the consumer protection. this is a creation of lismore and. it is virtually untouchable by either the president, congress or within the course. u.s. district court suggested
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its unconstitutional by very nature because it's not answerable and they are ignoring all three branches of government. cordray is the head of it. richard cordray. the president can even fire the guy. this is because it's under the rubric of the federal reserve toward. when you talk about draining the psalms, this is an example of a bureaucracy just created that nobody knows how to get rid of. >> we will see some chances. goldman, jpmorgan, despite the still low interest rates with a lot of excitement. connell: the market into your point the advanced first 20,000 but it does bring up a point about have we come to far we come too far to fast i'm expecting the president-elect to do too much on what veronica is talking about, getting rid of regulations that maybe won't be
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that easy. >> exactly. a lot of proposals we don't know what the policies are going to be. another risk people are underestimating when it comes to taxes if they think it will happen overnight. if you're counting on for the spring you might be disappointed >> it does take a long time to do those things. people do get frustrated. i think there'll be some pullback in the markets in the early spring. we talk about 20,000. we are all obsessed about that. it is like half a percent away for all purposes, we are really there already. it is happening. 14% on the dow this year alone. that's amazing. we should all be happy. connell: thanks, guys. we appreciate it. before your show. >> you're right. that's exactly it. connell: i'm kind of annoyed at
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myself. this next story if you've seen this, a restaurant in hawaii has a message. there it is, for trump voters. there's some outrage from this and that is next. we will be right back. "cavuto: coast-to-coast." call us or your advisor... t. rowe price. invest with confidence. but when we brought our daughter home, that was it. now i have nicoderm cq. the nicoderm cq patch with unique extended release technology helps prevent your urge to smoke all day. it's the best thing that ever happened to me. every great why needs a great how.
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connell: so let's get to this restaurant in hawaii sparking some outrage for trump voters certainly. honolulu's café 8.5 is the name of the restaurant and the sign says, hard to read, but if you voted for trump, you cannot eat here. the owners say what they are not asking people who they voted for, they wanted to express their dislike. >> this is something that calls in the category of extremely infuriating, mind numbingly
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infuriating, but probably not illegal. civil rights laws protect certain classes of individuals of a certain race or religion, sex, et cetera. but there's no protection for people based on political affiliation. what these people have done is in berating and from a business perspective really not wise because god knows how many customers they are turning down. i don't know if they are doing that while they can turn down customers. at any event, it is probably not illegal. connell: that's the key point you said. i have no idea why a business would ever want to make their own political beliefs known. why do you care who is coming in. this guy has modern from the "seinfeld" soup nazis character. he's that kind of guy. why would she want to not have people come in? they are not dating anyone. if you come in, they are not saying who did you vote for.
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they will serve in the matter what. >> they are banning people because were not stopping you from coming in. we are not putting anything different in your food. that is comforting. is a practical matter, people and not come in when they see that sign. the most offensive part of it was by no nazis part of it. to post back and you don't know who is walking by your store. maybe gary trent supporter holocaust survivor considering coming to your considering coming into your store and you are posting your equating this to nazis. it's overcast, so far beyond the pale. it pushes the limit of what is and isn't legal. right off the bat based on what we know so far, nothing jumps out at me. connell:% they might as to be illegal, what would have to be included? >> so if they put a sign on their door that they are not going to serve people of a
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certain race or religion, that would be outright illegal. but as it stands right now, this is probably within the category of that protected political speech. connell: if they said they're not going to serve. they are saying don't come in here, but am trying to make it even more crazy than it is. we are going to have a poll on the way in a mood to go far, is that illegal that kind of thing? >> people who voted for president-elect trump are not a protected class under any civil rights laws. i would certainly encourage people not to go there if they're offended by this and certainly proprietors who did this must know people offended are going to come in and if a business decision. i'm sure they're café is not unique to its area and you can go somewhere where your patronage is appreciated and you should do that. connell: that the larger point is this is probably not good business.
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still you are turning away anybody. we appreciate you coming on. home prices has been rising. it is not an across-the-board gain. we will tell you stand to gain on how the president-elect's policies may shake things up. it's not all equal in the housing market. that is next. sync your platform on any device with thinkorswim. only at td ameritrade. (snap) achoo! (snap) achoo! achoo! (snap) (snap) achoo! achoo! feel a cold coming on? zicam cold remedy nasal swabs shorten colds with a snap, and reduce symptom severity by 45%. shorten your cold with a snap, with zicam.
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connell: back on "cavuto: coast-to-coast." home prices continue to go up especially in big coastal cities. but in other parts of the country they remain relatively flat. fannie mae executives hammered us with us right now. a very good article that sums all of this up in this morning's "wall street journal." they go into basically you are somebody and the example that uses the scranton pennsylvania area. there is such a disparity in what you pay for a house there that you want to come work around here in the suburbs of new york it would cost you so much it's almost impossible to do. it's tough for people to move around bottom line. what a remake of this? >> this is more evidence. another good data point in terms of either is a group of individuals or households so compelled by the donald trump story. the bulk of most families net worth is tied up in their house. they have a class of homeowners in the case of hillary clinton where they saw their property
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values typically coastal properties, urban properties where they've gone up 115% over the last 16 years. another class of borrowers were predominately the trump voters who haven't seen their property values moved at all in the last 16 years. if that's your primary asset in your life, that's a pretty troubling statistic. connell: we talk all the time and premier background you're used to having these conversations about the housing market. there is no one housing market. it's much different in new york for a city like san francisco then it is and the aforementioned scranton, pennsylvania or other communities across the country. is this a trend that you see in any way reversing itself? >> is lumpy. what you find in this housing markets is housing follows jobs. if you look at the urban rural communities, what tends to happen is just as you've heard
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them speaking, they haven't had a voice. they haven't seen any private investment. as a result they are not having a whole lot of industrial production jobs. they are finding their services are down, amenities are down and people are fleeing. >> they can't. they can't get out of the area. go to college, good school, get a job in your local community but a ton of college debt and you are living somewhere where the housing prices are what we would call of horrible, and you have a degree in engineering he went to work in technology in the bay area. good luck living there. you can't do it. >> as we start to see these peripheral cities and towns picking up. you go from savitz is though, find yourself in san jose. you see that a popular urban areas where they price basically most of the millennial and the new employment out of the market so they find themselves drawn into these communities.
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again, for these communities to require the tuesday the public and private investment, but also regulatory changes on the funding firm. vendors have been so gun shy to go into those communities has led to the downtrodden borrowers, folks of nontraditional credit, folks of nontraditional income sources then really on the fringe the most risky. connell: because of what happened the last time around because of the crisis and all that. >> what happened was the crisis led to this kind of nanny state enforcement regime where it was like puppy cretul death syndrome. we talked the consumer so tight to protect them that we've broken their neck because you can't have lenders to lend him and in those communities because the buyer in their community scales and they're on the hook. >> there is a statistic out today. we are basically back to the
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pre-crisis levels. something like $60,000 on average. the point is you are back to the future. you have the nonsense going out six or send a year and they are marvelous. you've got lenders who are more willing to take a risk on what is a business purpose for where you are investing in somebody who will by property then they would for those consumer loves to the risky borrowers because they can have a blended enforcement regime has been so terrifying for lenders that the credit risk on the other side seems a lot more palatable than the reputation from supporting low to moderate income virus. connell: they will go higher, not lower. what does that do to change any of this?
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>> we've been in declining environment or 35 years and it's been interest and that the three real spikes in interest rates received 100 to 200 basis point site on trade spikes, property values went up because higher interest rate is a reflection of healthy economic conditions. if people are earning more than they can afford and off site a higher interest rate. what we don't know yet is whether or not that's what they're seeing today. is that going to be supported by higher economic activity and higher incomes to offset it. we did see if you remember with ben bernanke in june 2013 when raised in a paper sack, two things happen. you have the velocity in terms of units sold actually drops 10% but the rate of appreciation is really the thing that was affected that came down about 50%. those are two things you have to watch. connell: always good to talk to you.
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very good today. a lot of different topics. he once promised to close the department of energy. remember that? now he is preparing to lead it. we have a series this week caught cap does that. next up on our list, this man, rick perry. that is next.
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>> and nicole petallides with their fox business brief trip business brief. the dow is down 70 points. a guest on the floor of the stock exchange. tim cook was here on the floor, chatted with him. he was here with his nephew showing his nephew about investing. he actually asked them a little bit about his outlook for 2017. take a listen. [inaudible conversations] he was very optimistic for 2017 after he met president-elect donald trump stop right now at 11690 down 35 cents. very optimistic. did not comment on whether they will damp they will damp up production of big earbud. no comments on apple iphone that he was scary kind and told his nephew that half of investing -- passive investing is sometimes better than active investing.
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connell: time for a cabinet close up series to resume today. but kerry has been chosen to lead the department of energy. previously you remember he had promised to shut the department, he was running for president. oil analyst is sorry guys for a series of segments together to look a little closer at the secretaries that have been picked. with the rick perry announcement made, a lot of jokes are made about that. not only did he promise, not a lot has been talked about, but
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you actually do in that department the former governor of texas. what kind of energy secretary do you think she'll be? >> well, he's got a lot of spunk ability for starting with the strategic or truly absurd which has about 700 barrels of oil in it and you might see increased sales of oil into the market the next couple years. if he deems we don't need anymore. he's in charge of what is called the loan program office, which is the department that gave the loans to cilantro. since we now have an administration that are in favor of renewable fuels, you can see alternative energy programs disappeared administration. the third thing you've got to contend with his nuclear falies around the country and that will come under his watch to make sure they continue to operate safely. connell: that's interesting. the second topic you've brought up in what types of programs will be supported as you alluded
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to this current administration has been supportive of alternative fuels, the slender episode another supported a lot through the years. the incoming administration will be more supportive. what are the coupon is older style energy use and other things. where can governor perry, secretary. if confirmed go on that front? >> you can work with the other department, epa and army corps of engineers to get a plan projects such as dakota access pipeline approved and finished off. we might even see a revival of keystone accel, which has been a lot of controversy. it's been approved for construction in canada. it's a waving the state department permit. i'm sure the former governor perry will be talking with rex tiller said. now, propose to get that to come
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in. >> a lot of history at exxon and exxonmobil in the energy industry. i don't know if you're stepping on toes if you work that way for work in concert with the administration. any concerns as to where you said about qualifications for the job which is what a lot of people have been asking about governor perry. >> people are always asking about qualifications, but he did preside in texas when we saw the major oil production boom presided over an increase in cracking, significant amount of pipeline infrastructure that has been built. it's also been around as we have emanated the crude oil export ban. he's very in tune with the oil and natural gas industry. maybe less so with the coal industry. as far as e foss fuel package is concerned, he's in the same league with the other administration announcements of rex tiller said and donald trump
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use of fossil fuels. >> if you're in the solar and mr. wind power, you'd be worried about this. >> well, i think you have to be because clearly the trump administration is not so enamored with solar and wind and to a lesser extent the renewable fuels of ethanol and bio diesel. you are seeing some concern in those industries. the next that the renewable fuel standard to be abolished. it is still providing a lot of jobs throughout the farm belt in the midwest, which is a bastion of red state support. connell: wrap it up in a second, but that might be the paris agreement which is more of rex tiller since department something that stays in place. that would matter to those industries. >> you now, i feel like it will stay in place. donald trump has come out against it, but at the end of the day, it still will remain
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there. our increase renewable fuels are additional renewable fuels will be slowed down. connell: andy, good to see you. good analysis of rick perry. in terms of the market today, we have had the dow falling a little bit. 20,000 is not so much of the conversation for today. they are waiting down some of these industries have been talking about whether they exxon, chevron, some of the big lags in today's market. we will be right back.
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connell: you know, we have news breaking this time yesterday at "star wars" fans have been in mourning after the announcement of the death of carrie fisher. from a business perspective, if you look at disney, producers face a dilemma about what he'll do with the princess leia
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character in future movies here from l.a., fox news reporter hillary bond joins us to talk about that. what comes next, hillary? >> a few options. they want to take out of the series before next year, they will need to re-shoots insane without princess leia. the disparity in postproduction. the laws of nature we were at the plot about the expectation in 2019. they want to keep princess leia olav, they could pass another look-alike actress to fill the role or use imagery to help re-create her character. disney or he did that and broke one for a very played by british act to her who died in 1994. under california law, filmmakers must get permission to use their image for up to 70 years after death. other movie franchises who have suffered the loss of a star use cgi and phil and not yours to
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get into theaters. cgi can be pricey. when walker died desperate to 2 million bucks in insurance money to help finish the movie. walker's death delayed shooting by about four months and requires every riding before filming or it could begin all of that production costs. it starred a split in how this jury should move forward. some say they want print this leia to live on in this series. others by disney to buy a disney to write her in a thick inglorious unseen death. connell: is not interesting. that would seem to be young again, i don't know if there's a right answer, but it would seem to be the likely path they would choose to write her out of the series because it's not like any role. this is like an epic role. either impose battery place it in some way. it seems weird. >> i don't see them going the cgi route they're rewriting it going over it.
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>> i don't think it's about cost either. good to see you. thank you very much. hillary vaughn in l.a. this time yesterday we learned about the tragic death of carrie fisher. now in terms of what we are following today, a couple big stories. president-elect donald trp down there at palm beach is expected to make some comments on the economy today. we don't exactly know without forming a wet type type of announcement is coming. is it company specific, big picture, in the form of a video or tweet or some sort of an experience, but it's supposed to happen later today. speaking to the economy in the markets, the dow falling as things get worse by more than 70 points. forget about 20,000 for the time being, which will give us something to talk about. being dragged down the energy and technology. we'll talk about both of those
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things when they come back. trent admin returns in just a moment.
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connell: we are back on "cavuto coast to coast," i am connell mcshane filling in for neil. president-elect trump will address the economy. he had a tweet out, the consumer confidence index, 15 years, there is a question who should get credit for the optimism we are talking about with the economy, stock market whether it is president-elect donald trump or the current president, president obama. from the conservative review, democratic strategist and market watcher david scranton with us. i don't know what he is going to say, what do you say today on the economy? he could talk about a company or a plan on taxes, could be
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basically everything. who gets credit? and a lot of people, the optimism moving forward that drove the stock market. >> it is a bit laughable but he does get credit. let's look at something like a 14% surge in the stock market after herbert hoover was elected president in 1928 guess what followed that, the great depression. i am not going to hold on to this surge. connell: not comparable to economic circumstances that something like that will happen again. >> when it comes to credit, the economy when you look at it from the day obama walked into the office in 2009 it is much better. in the new york times if you invested in a low-cost stock index fund on january 20, 2009,
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you would have tripled your money, unsurpassed growth under any other presidency. the media has been loath to give president obama credit and donald trump understands that, he wants to give credit to himself even if it is not deserved. connell: you did okay in stocks, even before the election. >> stock market is up because the federal reserve kept interest rates low which forced institutional investors to buy stocks to better their return, their yield, this has nothing to do with president obama. average incomes are down, home ownership is down, unemployment has gone down, 10% or 11% unemployment. our economy is not moving along like it should and under obama,
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gdp has not gone anywhere near 3%, policies harmed the economy or helped it. connell: that is the deck of the incoming trump administration is making, there has been some optimism, everybody says one of the big reasons stocks are up, optimism of policies put in place by the new administration, we are in for higher growth than we have seen, forget it being a new normal, what do you say? >> 4% could be a stretch but if we get back into the low 2s we would be very happy as the country. it is important to not confuse economic growth with stock market growth. president obama had a great period of stock market growth
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but after the middle market took a 60% plunge it is important to remember the growth we have seen his pent-up from 2000 to 2013, standard & poor's 500 have not gone anywhere, growth was primarily because monetary policy because of janet yellen. the issue moving forward, the last change president in our country, ronald reagan, the stock market, election night and the inauguration day, with the% the first year. because change -- connell: history repeating itself. >> history repeats itself, 2017 is going to be a negative year for the stock market overall. i believe 2017 will be good for the economy, great positive effect on the economy but it won't translate into stock market gains. brings a politica
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discussion. say that does happen, david is exactly right, the stock market starts to sell off and it may be, to his point, a positive economic environment for the incoming president but then you get back to the other side of it, what about who gets the blame for that? the stock market starts to sell off, suddenly takes some political blame whether it is his or her fall, that is another story. >> we will see what happens with the market but here is one thing i am witnessing, the fact that companies, businesses and consumers are anticipating more economic growth stimulation and that is because of policies than donald trump talks about, tax reform, regulatory reform, these are incentives for businesses to start a business, corrode their business, hire more people, that in turn will help spur economic
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growth. connell: there is some optimism that this is a better environment for people to do this, more people employed, a lot of people telling us that but what do you say? >> between july and november 2016. we have 2% economic growth. there is a gift being handed to donald trump as he is about to enter the white house. home prices are at an all-time high, unemployment has been slashed in the last eight years but facts speak for themselves. connell: it was a low base, down 20,000 down 6500, the s&p 500, all-time lows. >> individual company donald trump is going to target, when he tweets something in an individual company, they are not looking forward to being attacks
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haphazardly by the president of the united states, we will have to see, the roller coaster affects from a president who on the one hand will attack a company in the morning, and an industry in the middle of the night -- connell: a great discussion point, we don't know if the president-elect will say this afternoon, this is something positive about the economy, there have been other instances where he has said individual companies, granted in many cases or in the case we have seen so far a company like boeing that has government business negotiating with the company but we are in a position we are not used to with president-elects. what do you think about? >> don't know if it is good or bad for the market because he is making these comments, he will
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not stop tweeting. we have to face that. right now the one big thing the president needs to focus on is corporate tax reform. as corporations were leaving the united states, file and take employees with them, president obama buried his head in the sand, the 800 pound gorilla in the room pretending nothing was happening, the first issues of business for donald trump, to make sure he stops the bleeding. we probably will not entice those corporations back but need to keep more corporations from leaving the united states. that alone would be great for the economy. connell: you stop for a longer interview it would be interesting to see what he had to say about that topic. thanks to all three of you, we appreciate it. john kerry made a speech earlier today that benjamin that and yahoo, israeli prime minister, is expected to have a response to that a little later on,
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secretary oftate jn kerry made his sat the state department, benjamin and yahoo will make a statement later in this hour. 1:4:05 pm eastern we expect to hear from benjamin netanyahu. we heard from john kerry about us relations with israel and this is what he said. >> no american administration has done more for israel's security than barack obama's. the israeli prime minister himself has noted our, quote, unprecedented military intelligence cooperation. connell: know better friend is real has had than president obama's administration. is that true? former bush xliii state department, what did you think of that comment? >> i thought that was totally untrue certainly because the resolution went through, after john kerry's speech today. connell: on the resolution talking about the un, by not
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exercising veto power, the us abstains from that, john kerry gave his speech today, it was in our interests to do that. we don't and the settlements being built because to paraphrase what he was talking about a situation that makes israel less safe, hurts the interests of the united states and you say what? >> they have it backwards and they have 4 years. this is the first administration that has a lot of resolution to go through that says jews living and working in the old city and at the temple mount area are living illegally. that is what the resolution says. it is devastating. the obama administration and secretary kerry believe the problem is israeli settlements and not abyssinian violence would you can't have a peace agreement with people who do not live democratically, as individual democratic citizens in a country where they will themselves and that is not what palestine is. the administration has decided
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to get back at benjamin and yahoo or is real or israeli voters who kept benjamin and yahoo in power for not seeing the world the way they do. connell: try to play both sides with critical comments about hamas comment by bringing up the settlements, not the right way to go. some have argued, if we have these in place, never have another conversation about a two state solution. >> someone who is a great diplomat should know you do not require one side to give up all their leverage before you have negotiations and that is what this administration has been trying to do. john kerry has been wrong about the settlements as well. the population increase has not happened. that is natural birth in those areas. benjamin netanyahu has put a freeze on sentiment for the last 10 months, even secretary clinton celebrated him for that, he has done more than anybody
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can do. the obama administration knows that but they know they cannot get the palestinians to operate as a peaceful society but israel can be browbeaten and threatened with boycotts and other things in order to make them get all the concessions in the same old obama foreign-policy, you hope it will all work out for the good once you pressure the good guys to do what the bad guys once. connell: to be clear from your point of view can you explain how you would see especially for people who are not following this on a day-to-day basis, a two state solution of that is the goal you think is the end game in this come with the settlements being placed. how would that happen. >> the palestinians act, and the two state solution, they are
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designated israeli settlements, and once there is peace. and and they return them to israel, we know what the israeli government will do if they have 2 if they give peace first and have a negotiation. they are ruled by hamas and fatah which are corrupt, there will be no peace. phil: the response we will get later on will be a response. okay. good to talk to you. thank you very much. another issue foreign-policywise the incoming it ministration will deal with is china. we see china acting up in the south china sea. how will the trump administration handle both of those fronts.
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only xfinity gives you more to stream to any screen. download the xfinity tv app today. connell: we are back on cavuto coast-to-coast. moment ago we told you the prime minister of israel, benjamin and yahoo, would be making a statement about secretary of state john kerry's speech. some of those remarks just being made public right now. benjamin and yahoo has said it, quote, obsessively focuses on settlement, obsessively focuses on settlements, it was a skewed speech that completely ignored the root of the conflict, we may yet more comments whether on camera or not they do this hour,
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when:4:05 pm eastern time, the prime minister of israel, benjamin and yahoo, being released by his office, a skewed speech that ignores the root of the conflict, is what he said. more on this coming up following the speech made at the state department by john kerry earlier, the secretary of state talking about the need to keep the two state solution in place and explain the logic of the united states abstaining from that vote on israeli settlements at the united nations. we have been talking about israel, to china, watch this. >> china wouldn't exist without us, chana has to pay a price if they don't start behaving because they are killing us on trade. what we should do, give china a quick and strong rebuke and warning, the chinese do not respect us. if we don't get smart quickly china will destroy our country. connell: comments like that have been happening for quite a while, tensions have been rising
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more recently with china. the chinese deploying an aircraft carrier to patrol the disputed south china sea. how should and how will the trump administration handle this? dan joseph is our guest. the president-elect even before he was in this position, before he ran, talking tough about china, this will be a new approach from what we have seen. what do you expect in the first few months of the trump administration? >> it is interesting. china four years ago took on a new president as well, who is the strongest most aggressive, assertive president they had in a generation. ping stated their core foreign-policy principle should be to keep -- lay low and bide their time, doing what he has done in the south china sea, the first to act contrary to that. the president of the united states with the strongest anti-china rhetoric, sometime
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against their most assertive president. it looks like it will be an interesting diplomatic firework. probably the trump administration relatively quickly moves to show we will draw a line in the sand in the south china sea and at the same time try to start trade negotiations which will take time, donald trump has made such a priority, he will get moving on that quickly. connell: we talk about relations between the united states and china, never had a conversation that involves a military threat but we have conversation that involves economic threats, possibly sanctions under tariffs and fiber has become more of an issue on both sides. >> on the economic side, the $64,000 question is are we going into this wanting to be more protectionist ourselves or make them less protectionist. if it is the former i am not sure that will work, not going to benefit the us economy, we try to apply pressure to open their markets, china has sometimes the narrative gets a little skewed. i don't think some people wish
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to forward the point china has grown simply because they are sticking it to us. i don't think that is the case. china has been liberalizing it economy for 35 years but they have fallen behind in terms of opening their own markets which is why their economy is facing the strongest economic head wind it has in decades with capital flying out of the country and slowing growth. they move in the direction donald trump pushes them. connell: and their interests in their direction. >> absolutely. for donald trump became a candidate, as china's economic growth is slow they pile on the debt. china's debt to gdp ratio was a reasonable 120%, now it is 280%. they rely on debt instead of liberalization for at least we 10 years. connell: incentives are lined up, they can do a deal to use
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the expression mister trump would use to get something done here. >> here is what is interesting, china has done this before, china like any other country has different factions, those who oppose reform and those in favor of it. china has used reformers, treasurer from the outside to say to those who oppose reform before we move forward, this could be an opportunity for pink to do the same thing, not sure he will because he has taken a harder position on so many other issues but this is an opportunity for him to move forward, the free-market agenda which in the past he has stated he supports, he just hasn't acted on. connell: a lot has been said about trump and vladimir putin but trump and ping are the ones to watch, good stuff, appreciate it. the current president, president obama, stated in headlines recently for blaming fox news for his criticism, fallout from that coming up next.
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>> if i watched fox news i wouldn't vote for me. if you talk to somebody who said i was watching fox news and they said this. >> if i fucked that is watched fox news i wouldn't vote for me either because you have this screen, this fun house mirror through which people are receiving information. connell: those comments spanning a number of years. most recently in an interview he did on monday president obama hit fox again for the back lash this election year. we have a media research center's tim graham, hung up on this, saying it basically since he took office. >> i don't buy it. i think obama would always vote for himself. connell: that is not a bad point, probably exactly right, no matter who was saying what. >> they see donald trump has a thin send egotist which he has a
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real competition here. obama is really used to doing interviews where he is honored. like the kennedy center honors was on last night and it was all, i think we can all agree this president was so intelligent, so dignified said stephen colbert, this is what he is used to, everybody parsing his apple. when somebody doesn't, it is a fun house mirror, they don't love me. connell: not used to being challenged in these circumstances. it is interesting, always interesting to see how somebody acts when they know they will not be in a job at all anymore, the way he is going out now with these comments, or in a larger picture john kerry's speech today talking about things the one likely never be implemented. a new administration coming on, not sure of the point of all of this. >> trying to set the table, trying to say the things they
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wanted to say. and it underlines for people the rhetorical equivalent of what the clinton people did in the bush white house, and committed vandalism. that is what this is, policy equivalent of vandalism. connell: hardly ever get specific when he is talking about, quote, fox news, and a broad brush, if there was someone in particular he had a problem with, this person didn't treat me right in this particular case or what this person said was inaccurate. if you are the president for eight years on the other side of it you can find media organizations you could nitpick with. in other words it has been happening on the other side for years and years, right? >> the funny thing is the press seems to think presidents shouldn't criticize them.
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but the press gets to criticize the president as much as they want. the press is constantly second-guessing republican presidents and sometimes democratic presidents too. whoever the president is they should be able to call up the press, they should be able to call out errors or what they think is fake news angle and obama can do that but he as so much smaller a opposition press to talk about. connell: that gets ignored from this perspective. the only sees a through his own prism, doesn't see it is happening on the other side but for what it is worth thank you for coming on today, we appreciate it, happy new year and the rest of it. this restaurant in hawaii that has a sign-up that tells trump supported you cannot eat here but to the point we are making about the press what if the tables were turned? that is next. hey nicole. hey! i just wanted to thank your support team
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♪ connell: so if you watch neil all the time you might remember the interview he did with the pizzeria owner in indiana. the owner of the pizza place refused to cater gay weddings. watch this. >> you and your dad have nothing against gays. on religious grounds you said you couldn't kate ear gay wedding. do i have that right? >> they are welcome in the store.
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anyone is welcome in the store. it is against our belief to condone, to cater, to their wedding. we're condoning that if we do that. that is against our religion. connell: she actually, we're told received death threats and had to close her restaurant for months. we bring this up. there is story in the news of this cafe out in hawaii. the cafe is telling trump supporters with the sign they have up to stay away. they said, if you voted for trump don't come in here. will they get the same kind of treatment? small business owners with us, michael mayberry is with us. what do you think of this, michael? i don't know by the way it is apples-to-apples comparison here. one thing they're saying in hawaii. we talked about this earlier with a lawyer, they're saying hey, you know, we, we don't like trump supporters x, y, z, whatever it is as you see on the sign. if you voted for trump you can't eat here. but they're not, not outright ban.
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if you walked in there and they're not going to ask you who you voted for they are trying to express a belief, to me, if you speak to this as business owner this is silly business doing something like this. >> well the great thing about america it is freedom of speech. i don't necessarily agree with either position, our brand, burgers and shakes, we're primarily a franchised business. so 99% of our restaurants are independently owned by independent franchisees. as we continue to look for more franchisees, we have to understand we're part of a system and part of a larger organization. while we absolutely support people voicing their opinions and voicing their bee he was loo, you can't do it to the detriment of the individual business or the greater business as a whole. connell: right. i think they, they, sure they could come back with the argument, listen, hawaii, is big democrat country, we're inspiring these people to say
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we're on your side and they're going to come in here, but i think most likely what is going to happen, if anything happens you turn people off. no matter what you think of politics, you don't want people not coming in to have your burger because they don't like your politics. >> you will absolutely turn people off. they get one thing accomplished, we're sitting here talking about it on national news. everyone knows about the cafe in hawaii where we didn't before. but as an individual business owner, i think you have the right to have your beliefs. but again, you have got to take into consideration the other half of the population that may not believe in what you say. connell: she said, this is a one-off. this is husband and wife team that own as particular restaurant or cafe in hawaii. managing franchises. what types of agreements do you have or rules that you set forth for people that own the franchise saying hey, this is the way i want things done?
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>> first and foremost the franchise industry is a great industry for anyone that wants to become a small business owner. whether with mooyah burgers fries and shakes or anything else, it's a great opportunity to enter the business. every franchise business is governed by a franchise agreement which is governed by the federal trade commission, ftc. there are rules and regulations to the protect the franchisee and protect the franchiser? you are part of that larger system and that larger system needs to be protects because you have other small business owners involved in it. connell: i know, you're making fries and shakes, what have you, they have to be exact same in the restaurant. that is the whole point of having a franchise. you want to know when you go in you know what you're getting but do you have a line saying don't express your political beliefs or what you think about certain items? you're here to run my business
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essentially for me and do it in your own way? >> i wouldn't say in those exact terms, it isn't spelled out in the agreement and talks about the protection of the brand and insuring you're not doing anything detrimental to the brand. connell: detrimental to the brand. that makes sense. michael, good to see you. >> thank you. connell: it is an interesting top. you're right, we're talking about it for better or worse. good luck with the business. michael mayberry. we're awaiting a statement from benjamin netanyahu, the israel prime minister. we're telling you about excerpts released from that. you're looking live at area where we expect mr. netanyahu to appear in moments. once he does, we will tell you what he says in addition to what is outlined for us. this is response to secretary of state john kerry and his speech earlier today, talking about the vote at the u.n., why the united states abstained there, voting on the jewish settlements and he tried to outline this case for the two-state solution and why he thought it was in the
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interests of the united states to abstain and move forward with that as he put it, even in the interest of israel. netanyahu obviously does not agree. they have put a statement out from his office which was quite critical of mr. kerry's speech. just doesn't get it basically was the gist of that. we'll keep an eye on it. we'll tell you when he comes out, right after this, "cavuto: coast to coast."
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>> i'm nicole petallides with your fox business previous.
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what happened to dow 20,000? we got oh, so close, and we were 20 points away earlier today, but now pulled into the red. in fact all 10 sectors are lower. the dow is down 71 points. let's look at some movers here. goldman sachs which of course has been a darling of the dow, helped to push it up from 19,000 to 20,000, is up 70% since the july lows. that was all on commodities and that helped the rallies, but right now you see 242.0. boeing is one to watch. delta air lines canceled their order for 18 boeing 776s. -- 787s. cisco system is down 3/4 of 1%. ibm is down half of one percent. apple's ceo tim cook was here. i spoke with him today. he gave a very optimistic outlook for 2017. ement insurance plan whenever you want. no enrollment window.
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connell: following breaking news. we'll take you back live to jerusalem momentarily as we await a statement from israeli prime minister benjamin netanyahu and he will be comingg to the podium we're told in moments to react to the speech that was made at the state department earlier today by the secretary of state john kerry. previously we received some excerpts of mr. netanyahu's remarks in which he said among other things that mr. kerry's speech was skewed and that he obsessively focuses on settlements. as we await former israeli ambassador to the united nations dan gillerman is kind enough to
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join us by telephone. thank you, ambassador, it is always good to talk to you. your thoughts first on what secretary kerry had to say earlier today? >> well, i think, i listened very carefully to secretary kerry and and i think it was an attempt, maybe an honest attempt on his part, to justify what i believe is a very, very failed foreign policy by the obama administration in the middle east in general which culminated with the diplomatic ambush towards israel. and. it is -- secretary deliver such a speech literally days before leaves office when the whole of the middle east is in turmoil and, to a great extent because of the very negative foreign policy he is responsible for.
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i mean it is horrible things happened to him in our neighborhood. hundreds of thousands of people which have been butchered by assad after the president and secretary kerry drew a red line. there is turmoil in libya where where -- left behind. very loyal ally, mt. mubarak under the bus and supporting the supporting the muslim brotherhood in egypt. culminated cooperating with -- without a country, during a aren't at this israeli resolution at the u.n. so when you look at that record in general it is very difficult to take the words of secretary kerry with great, with great sincerity. i mean, when so many millions
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are homeless in egypt and syria and so many thousands are butchered especially focusing on settlements in israel which is not an obstacle to peace, i always said -- settlements is not the problem. once there will be setments, the settlements will not be a problem. and to focus on that when the whole area is up in flames is to me a very -- [inaudible]. connell: on that point about these settlements that secretary kerry spoke of today, and prime minister benjamin netanyahu says he obsessively is focusing on, he was talking about the reason that the u.s. abstained on this vote that you spoke about at the united nations which israel is obviously upset about it. i'm sure we'll hear more from the prime minister on that in a moment. the point secretary kerry is making, in -- it's in the best interests of the u.s. that these settlements not be here because they're an impediment to a two-state solution.
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in other words you will never have a two-state solution as long as these settlements are in place. what's the response to that? >> i think the secretary is wrong. we proved time and time again -- [inaudible], give up a lot for peace. we have given up the whole of the sinai including settlements, very flourishing settlements to make peace with egypt. we have, you know, we have done the same with jordan. we -- [inaudible] and what we got in return was a launching pad for missiles against israel. for the secretary to claim that the settlements are an impediment to peace, they're not. i think there is wide agreement that certain blocks will stay anyway. when it comes to other settlements, i'm sure israel, and israeli leaders will really
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honest -- palestinian authority and arab world will go a very long way. [inaudible] connell: right. >> the timing of the secretary and the president with you know, abstaining from that horrible resolution at the u.n. and then to -- the secretary, to me is too late. they could have done much more in the eight years they were in power. now it is too late. we'll have to wait for the next administration and hope that we find an honest broker. connell: that is a larger point we'll take up about how this will change in the incoming administration once president-elect trump becomes president trump. ambassador gillerman, thanks for your thoughts. thanks for joining us by phone today. really appreciate it. we're still waiting for the prime minister of israel, benjamin netanyahu live from
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jerusalem with his comments and we'll be back with prime minister netanyahu in just a moment. your insurance company
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connell: breaking news out of jerusalem, we're still waiting for prime minister benjamin netanyahu to make his statement which will be a reaction to secretary of state john kerry's speech that was made at the state department earlier today. david asman rejoins us now as we wait for the prime minister. he said, we know a little bit what he is going to say because he put out a statement earlier saying secretary kerry is obsessed with the settlement and ignores the root of the conflict. >> the root of the conflict is the plo. we're forgetting while switching our allegiance from the democracy of israel to the people on the other side of the table, which is the plo, they're called the palestinian authority. basically they were, these are the, these are the descendants
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of yasser arafat, the man who invented modern day terrorism. how could the united states, the defender of democracy around the world, ally themselves with those people that are basically, the descendants of terrorists, rather than people who actively developed a democracy, the only really fully functioning democracy in that part of the world? it is extraordinary. as ambassador geller man pointed out, this is the administration during so-called arab spring in 2011, sided with the muslim brotherhood. remember one of the muslim brother loot members is the cofounder of al qaeda. how we could have sided with that side of the equation in the middle east for so long, at least since 2011 boggles my mind and doubles so for israel. connell: netanyahu i'm sure will have stronger comments when he is live, what they put out in the statement, he had positive things to say about the president-elect, on twitter back
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and forth. he praised donald trump and donald trump praised israel, so it does bring up a larger question does any of this matter today? i know it caused a reaction from israel. the prime minister had to come out and speak, he knows, we know, everybody knows -- >> it matters because the world is looking what is happening right now. the world is assessing donald trump and the transition from obama to the trump administration. the world must be thinking, where in the heck do we put ourselves in this equation? how do we ally ourselves in quickly in country changes sides in an area as crucial as middle east. i don't think it is any coincidence that the market began to go down as kerry was speaking. kerry doubled up what he was saying before, just as donald trump has been doubling up -- connell: he didn't have that much to say. he is leaving. >> the divide is growing between the outgoing administration and incoming administration on a region of the world that is a
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tinderbox, that could flame up any moment. i think the that is why the market was going down when kerry was speaking. he was not trying to make amends, trying bring the two sides together but driving them further apart. connell: on the point about bringing two sides together, the argument from the current administration, the prime minister says they're obsessed with the settlements, he says the settlements are impediment to having a two sate owe solution which is the solution of the problem. >> who is historically enemy of two-state solution? it has not been israel, well the palestinian authority before that. plo, when yasser arafat was running things. every time they began to get to a two-state solution, real formula for the two-state solution the plo would begin a new intifada or the plo would pull out from talks. historically speaking it is palestinian organization, whether the plo, palestinian authority has been against the two-state.
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israel comes out with formulas rejected time and defend, many times violently by the plo. connell: as we wait for netanyahu about john kerry today, what a true friend is and what that looks like, what he is speaking about her. secretary of state john kerry. >> regrettably some seem to believe that the u.s. friendship that the u.s. must accept any policy regardless of our own interests. our own positions, our own words, our own principles. even after urging again and again that the policy must change. friends need to tell each other the hard truths. and friendships require mutual respect. connell: that is earlier today, david, friends need to tell each other the hard truth. >> he said where our interests lie with the biggest democracy in the middle east. perhaps the only real democracy in the middle east. not with forces that backed in
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the past terrorism time and again against that democracy one way or another. we need to stand behind israel. we don't need necessarily to stand behind forces that work against the interests of israel. connell: benjamin netanyahu seems to agree with donald trump on this. his tweet was, president-elect trump, thank you for your warm friendship and your clear-cut support for israel. so very -- >> very strange moment in history when we have two administrations kind of overlapping with each other because donald trump is actively participating in foreign policy right now. connell: that is the thing. he is not exactly staying out of it. netanyahu has just taken the podium in jerusalem the outset of his remarks you can correct me if i'm wrong will be in hebrew. that's right. and so, and in these comments he is going to be quite harsh, he will be quite harsh with secretary kerry's remarks in hebrew. we'll take a quick break and
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come back with more "cavuto: coast to coast." i..
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connell: we follow breaking news out of jerusalem, a statement from benjamin and yahoo, as is the custom for him in hebrew, normally he will switch to english at some point but we switch to trish reagan to take you through the next hour. lou: benjamin and yahoo is responding to john kerry, let's listen in. >> a partnership that has indoor differences of opinion between two government over the best way to advance peace and stability in the middle east, i have no doubt our alliance will indoor the profound disagreement with the obama administration and become even stronger in the future. now i must express


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