tv Countdown to the Closing Bell With Liz Claman FOX Business October 25, 2017 3:00pm-4:00pm EDT
president. it is an exclusive interview, and can you imagine they're going to get into a lot of things, including this whole dossier, excuse my french, and uranium one, and by the way, who's going to be head of the federal reserve? liz claman over to you. liz: exactly. speaking of, which we have breaking news on that right now. the contest to win the job to be the next federal reserve chair has apparently just lost a contender. which one of these five power players will be the next fed chair? and which one appears to be out of the race right now. charlie gasparino working the phones, he's in the newsroom, he's going to get in the newsroom chair, stand by for that. deeper shade of red for stocks caught in a downtrend, the tornado leaving the green arrows over the rainbow, far off in the distance. turbulence at boeing's third quarter report weighing down the dow jones industrials, lower by 119 points.
and this breaking news, promise, that promise president trump made about 401(k)s not issue touched in the tax reform battle. it seems your nest egg may about to be changed. we can't definitely say it's at risk but may be changes. the president himself just said that. if he looks and does not necessarily see eye-to-eye towards the key savings tools so many of us use, we'll sort it out. we've got representatives from both sides of the aisle. bipartisan reaction straight ahead from the men on the front lines, democratic congressman brian higgins of new york and republican congressman mike bishop of michigan. twitter making a bold mef. one week ahead of a showdown with the senate intel committee over russia's meddling in the 2016 elections. what the social media giant is doing to help followers and get
a spell out of the firestorm. breaking news right now, let's start the "countdown." . liz: and then there were four or is it three or is it just one? president trump has just tossed at least one of them out of the resumes from the pile of candidates for the next fed chair out. apparently, gary cohn, the national economic adviser for president trump is out of the running. this is the latest survey by the "wall street journal." reports most economists believe former fed governor kevin warsh is likely pick to lead the federal reserve. we are watching the lower right-hand corner of the screen because the dow is starting to move lower once again but still not near the lows of the session on the news, down 190 points, we're down 123. charlie gasparino has been saying that it would not be gary cohn. charlie, what are you hearing
now? >> well, this is interesting, because i've been saying for months now, following the charlotte -- remember gary cohn famously came out and backhandedly criticized the president over remarks during the charlottesville neo-nazi rally. he came out and said stuff that the president was seething about, that seemed to suggest that president trump didn't strongly protest that rally enough. and since then, essentially out of running. it's semi official. what's interesting here is this, liz, is that we've been reporting also that kevin warsh, in my view, was a very likely choice, for a lot of reasons, including the fact that he's been around government for a long time. been a loyal republican. some economic policy, not in the congress but economic policy experience with the bush administration. he is the son-in-law of one of donald trump's best friends.
longtime new york republican activist, i guess you could say, and billionaire, like trump himself. journal came out today and said a lot of economists think he is in the running. i will say this. i don't know who is going to get this job. i'll give you the positive for warsh which i just did. a family connection, a friendship connection. warsh is pretty much of a hard -- not a hard-liner on monetary policy but clearly not a dove. trump likes janet yellen, the current fed chairwoman. he likes the fact she's for easy money, and that's something that donald trump has said for a long time, i like easy money. he apparently likes the policies of jerome powell who's also for easy money, also for less regulation. remember yellen likes dodd-frank which trump vowed to dismember or reform dramatically. so the thinking was up until now, even the i mentioned warsh as a leading candidate a couple of days ago that trump has been
saying nice things about yellen lately and nice things about powell and from a policy standpoint seems more simpatico. here's the thing with donald trump. you don't know. the only thing i knew back for a while here is that it wasn't going to going to going to going to be cohn, wants to focus on tax reform. once tax reform is done nor the done, does cohn stay with the administration? on wall street, most people think if he's not getting the fed chair job, he's out of there when tax reform is finished in a positive or negative way. liz: that could be his choice. >> i think it will be his choice, i don't think he's getting fired. liz: right, right, right. >> listen, he's got a president that's still annoyed at him. do you want to work for a boss that is annoyed at you and you're this rich and you want to be fed chair and not getting
it? liz: annoyed at you for speaking your opinion? >> i'm with you on that. i'm giving you real politics here. here's the fascinating thing. a couple of days ago, kevin warsh on the top of the list. kevin warsh for unwinding the fed portfolio a little faster than how to and you could put jerome powell. liz: he's up there, too. >> listen, i could see him picking any one of those three. maybe you. liz: charlie's got another story. more breaking news. go to your office, right behind your head and come back when ready for that. on wall street, 23 hours after clocking 54th record high of the year, the dow is pulling a u-y looking at biggest drop since september 5th. one loan index is moving in the
opposite direction. wall street's fear gauge, the vix, the volatility index jumping to the highest level in more than six weeks. you saw three months ago it was much higher, now we have it climbing back up, jumping about 8% today at 12. see when it gets below 10 and you're in the nine territory that is extremely complacent behavior. we're getting more nervous as we look at all kinds of question marks about policy. we have boeing, boeing is very much one of the stocks keeping the dow grounded at this hour. bad weather over the aerospace giant, it did beat on earnings and revenue but investors are not loving full year forecast because it's coming in slightly below expectations. the top flying stock in the dow. it's up 70% year to date. they have a little 329 million charge for the troubled kc 46 aerial refueling tanker. it happens. could also be profit taking.
and jetting along from the top performer to the biggest loser in the dow, yes, talking about it, general electric. ge on track for its lowest close in 4 1/2 years after morgan stanley pulled the industrial giant off its dividend portfolio list. because everybody thinks that ge is going to cut dividend, and therefore, why would it be on the wealth management dividend list of stocks to buy. not all doom and gloom. good news from goldman sachs, the bank's economists boosted third quarter gdp forecast to 2.6%, had been at 2.3%. they cite an unexpectedly strong durable goods number and new home sales number from september that came out today. durables looked much better, big-ticket items that last three to five years and new home sales, i believe it was the biggest jump in 25 years, hitting the nearest level in
ten years. friday, the government's advanced gdp number, to capitol hill can we go there right now. the call for bipartisanship at all-time high. the administration racing to get tax reform across the finish line before 2018. many people say you might need a few democratic votes for that. that deadline is more than in jeopardy as the house has the significant hurtle of passing a budget before it can get into the fine print or details of tax cut simplification. representative brian higgins of new york serves on the house budget committee, and i believe he is also, sir, you're also on the ways and means committee, correct? >> i am. liz: okay, let usjust jump to the beginning what people want to know, that is, does this bill have your support once it begins to take form? >> well, no, there's no detail
to the bill. this is fraud perpetrated against the american people. liz: fraud is a very strong word are. >> let me explain. liz: okay. >> the treasury secretary was very clear that any tax plan would not benefit the rich. now if you make $730,000 a year or more, your aftertax increase next year, nim will increase by 8.5%. if you make under $850,000, your aftertax income will increase by 1%, that is a direct violation of what the treasury secretary said. additionally, this tax bill will add $4 trillion to the federal deficit over the next ten years, and will not impact in a positive way economic growth moving forward. liz: so you do not subscribe to the dynamic scoring of we believe that the tax cuts will pay for themselves, but i'll play devils advocate here and
do this the same with the republican representative coming up in just a few minutes. that is simply, what we've been doing for more than 8 years has not really seemed to work it juice this economy to above 3% for an entire year. is it not time to put some money back into americans' wallets, and also corporate tax cuts, bring down the corporate rate and maybe don't leave the united states and get rid of jobs? >> well, firstly, let's go back to the treasury secretary. he's saying that through dynamic scoring, this plan will produce $2 trillion in additional revenue. that's not true. he also said the tax cuts will pay for themselves. tax cuts never pay for themselves. they haven't ever in human history. so all of this is fraud being perpetrated on the american people. i believe that tax cuts targeted for those under
$150,000. if they're aftertax income next year increased by 8.5%, you would create demand in the economy. when there is demand in the economy, there's growth in the economy. getting you to the 3, 3.5%. that i agree with. liz: let me jump in. we actually had secretary mnuchin on our air with maria bartiromo. let me have you what are you said and respond to that. we don't have it. he's focused on economic growth and what's good for the middle class and what's good for business ends up being good for the country. >> he's not being truthful because goldman economists themselves say that there will be no appreciable growth in the economy from this tax cut plan over the next several years. additionally goldman economists said there will be $4 trillion of deficit added over the next ten years.
the reason goldman is important here is because steve mnuchin is alumnus of goldman, as is gary cohn. and the organization flatly rejects the rosy projections, then i think the american people have a right to be very skeptical. liz: all right, i came from local news, i'm always skeptical. however, this makes me even more disillusioned. because it was in 2015 when democratic senator chuck schumer pushed forth cosponsored bill with rob portman, the republican from ohio said that it's important to reduce corporate taxes and that would be a good thing for the nation. why is that not good now that there's a republican president from that party who's in charge, because president obama tried to cut corporate tax rates too? >> i'm in support of a cut of the corporate tax rate. the current statutory rate is
35%. the proposed rate is 20%. problem with that is about 150 corporations don't pay near -- liz: true, they'll get to pay higher. >> let me finish my thought and here's the proposal. i would support a cut of the corporate tax rate to 20%, providing it's a minimum effective tax. that means essentially that everybody pays at least 20%. have you 100 corporations in america that are profitable that pay less than 10%. have you 40 corporations, including walmart, including others that have a negative tax liability. if everybody pays at least 20%, that will simplify, that will lower the rate and produce more revenue. liz: let's hope. that's what the plan is. congressman, thank you for joining us. >> thanks for having me. liz: brian higgins, fair and balanced. congressman mike bishop, republican from michigan sits on the house ways and means committee. he's getting in front of the
cameras in just a moment. can he confirm what might be the details of this tax plan and is he convinced any democrat will come to the table? "volatile markets." something we all think about as we head into retirement. it's why brighthouse financial is committed to help protect what you've earned and ensure it lasts. introducing shield annuities, a line of products that allow you to take advantage of growth opportunities. while maintaining a level of protection in down markets. so you can head into retirement with confidence. talk with your advisor about shield annuities from brighthouse financial established by metlife.
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oil prices are falling half a percent in part on this news, the interior department announcing it wants to make an area the size of the state of new mexico available for oil and gas drillers to purchase federal drilling leases. the largest sale ever. 77 million acres in the gulf of mexico. while energy dominance is the stated goal, be careful what you wish for is the question. with that much increased supply, believing that they'll strike oil, so to speak or strike gasoline, should the administration really be prepared for perhaps some bankruptcies or is this all good? let's bring in the go to guys for capitol hill on how oil and coal policy will impact the markets. kevin book. to it, kevin, what would be the most immediate effect if companies start to apply for the leases, they drill and they find pay dirt? >> liz, a lot of lag time
between the leasing and the drilling. the market effect is a ways off. offshore is a difficult environment to produce oil. the wells we're talking about. the ones folks want to drill and parts of the gulf where they want to drill are expensive enterprises. they are buying the options, the opportunities but not the obligations to produce. if they buy now they can exercise that option in a different price environment. not obvious they would buy leases today and drill today. the sales in march 2018, talking about a 7 year average lee time that means 2025 before a market interact. so really not a market impact today. liz: aren't we already seeing a market impact of much lower prices whether it's natural gas, which is kind of pathetic? we used to be at $14 per million british thermal units, which is how they calculate this stuff. natural gas, we've got it at
$2.93. isn't that a function of so much supply, but i get the whole point if we're going to import liquid natural gas where the price is much higher for the buyers, in eastern europe perhaps, is that the thinking? . >> the trump administration correctly identified, the energy supply is growing here but the demand is growing over there. our natural gas price at the henry hub is very cheap relative to the markets that could be served. there is incremental cost to get our gas to the markets. some of the gas may not be competitive with some markets today. but over the long haul and lng plants, the only mitigating fact and one you don't want to overlook is that all of those destination markets are looking at their own gas resources, and some cases they have them. so the next five years, we have a bit of lng supply, the five years after could be exciting
for producers. >> natural gas producer from canada to china. coal earnings are expected to come in more solid than they have in the past couple of year, much of that could be attributed to perhaps president trump who says let them drill. let them dig for coal, and we know we have a customer in china. we've been exporting a lot of coal and china a big buyer of that. xi jinping did the five year plan and he sounded much more bearish note about using coal because they've got serious air problems. air quality is horrible. what do you expect for the coal industry? >> the short term is good in the u.s. for a couple of factors. coal market to the extent its global is 8 billion tons. the u.s. is about 750 million tons of production, and consumption here in the u.s. is going up a little bit in power sector. the reason is pollution
controls on power plants that were put in for mercury rule have a seven year accelerated depreciation schedule, you could lose money on the differential and make it back on accounting basis because of the depreciation. there is also to some degree opportunity to tell u.s. coal overseas, the best way to get coal to china is out the west coast. the last of the export facilities got local application permit denied. not easy to access the chinese market. liz: i can see why capitol hill calls you. you know all the details, kevin. please come back. thank you so much. >> thanks for having me. liz: dow industrials down 106 points. with the closing bell ringing in 37 minutes, visa leading the dow jones industrials as more and more of you swiped your credit cards in the fourth quarter. in the fourth quarter? we're reporting the third
quarter. it's their fourth quarter. got it, their fiscal fourth quarter. we need to distinguish that. shares touching a record high. $109.79. and doubts about chipotle piling higher than a double order of guac, shares of the embattled mexican chain tumbling to the bottom of the s&p 500 as multiple wall street brokerages slash price target on the stock, down 14, make that 15%. the queso launch was not enough to spice up chipotle's quarterly results but blaming high avocado prices in the impact of hurricanes, by the way the number on shares, the lowest in five years. could be one of the most dramatic races since the election. just who will be the next fed chair? it does matter to your portfolio. depending on the perspective about rate hikes from any of
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. liz: the dow is now down only double digits versus triple. we're lower by 96. considering we've been down 190. a hundred point move to the upside. there are only four chairs left at the table of applicants for the job of world's most powerful central banker. gary cohn, likely out of the question now according to charlie gasparino, and word is president trump who just sat down with lou dobbs in d.c. for an exclusive interview that's going to air tonight is days away from making his choice
official, but lou pushed him to give all of you more detail. >> do you have a preference, out of curiosity? >> do i. >> tell me who your preference is? >> may i constrain myself? >> yes. >> ad hoc adviser to the president. >> no, but i'd love to hear it, you can cut it out if you want. i would love to hear you. i only want that from people i respect. >> i personally think janet yellen might be worth keeping. >> i tell you what, she was in my office three days ago, she was very impressive. i like her a lot. i mean, it's somebody that i am thinking about. i would certainly think about it. liz: no real yes, no, maybe, lou going out on a limb, right? you'll see the interview on lou dobb's show. make no mistake, the market will move depending who gets the job. to the floor show, our traders, teddy, is there a consensus at the nyse who might get it?
does that square with your choice of fed chair. >> you did say my brain, right? liz: i did, i didn't say how big or small, though? >> if it's not broken, why fiddle with it, and my choice, personally would be that he does not make a change and that he sticks with yellen. if that's not his choice, my second choice would be the fella from stanford. liz: taylor, okay, that fellow from stanford, scott. which one are you going for? >> the fellow from stanford. i think that when it comes down to it, trump wants to put his own stamp who the choice is. as good of a choice as janet yellen would be to stay in there, she's out of the running. i think there's a couple little innuendos, warsh is the son of one of trump's best friends. i think that may be a little too close to home. i think even though taylor is
viewed as maybe the most hawkish of them all, his background, his policies are really what the fed follows right now, and i totally, totally believe that trump is behind him and really believes that he can maybe moderate taylor's hawkishness somewhat. that's my pick. liz: and luke, to you, and then i'm very interested to know which one you guys think will move the markets the most and in which direction. luke, who are you picking? >> well, i don't think it's going to be janet yellen. i think it should be kevin warsh, he's been really critical of the fed over the last couple of years about qe and the nonstop qe and the moving targets. whether they'll pick them or not, i don't know. if he gets picked, the markets get moved the most if he gets picked. liz: in what direction, may i ask? >> initially down, he's going to stop the qe, and all the
coo's who just sat on their hand are going to think about how to make money for the company. it's going to be difficult without qe, down initially. liz: teddy, such an incredible run since the day after election day. year to date. you name it, the metric looks really strong. who might spark a sell-off, which pick? >> i think the more hawkish the choice, the perception of the more hawkish the choice the bigger the negative for the market,a the end of the day it's about interest rates. i think we all would agree that interest rates are moving higher. really now it's a matter of how aggressive a new change would be in terms of the fed, and quite frankly that's why i continuing ought to be yellen, because i think she's done a good job, and i think the markets like that job, and so if it's not broken, let's not try to fix it.
liz: we will see. president trump keeps saying really, really soon he'll make his decision, and for more clarity, you've got to watch "lou dobbs tonight" guys. it's his exclusive interview with president trump, specifically on economic issues and the fed. 7:00 p.m. eastern, only on fox business. closing bell, 26 minutes away. while the dow is down 97. i would like to point out that the nasdaq down 31 is well off its lows, which earlier had been down 80 points for the nasdaq. nice comeback there. before the break, breaking news, president trump just tweeted, quote, spoke to president xi of china to congratulate him on his extraordinary elevation. also discussed north korea and trade, two very important subjects. and on another very important subject, more trouble brewing for tax reform, kevin brady throwing cold water on
president trump's promise of, quote, no change to your 401(k) savings plan. we'll ask republican michigan congressman mike bishop, also on the house ways and means committee with kevin brady what that means to you, your 401(k) and the future of tax reform? by listening to an thiaudiobook on audible.ame and this guy is just trying to get through the day. keeping it together. losing it. upgrade your commute. ride with audible. ♪ ca♪ yes you can ♪ can i kick it? ♪ yes you can ♪ can i kick it?
. liz: does this bill have your support once it begins to take form? >> well, no, there's no detail to the bill and this is fraud being perpetrated against the american people. liz: whoa, whoa, whoa, okay. no detail but he's sure it's fraud. democratic representative brian higgins is clearly not a fan what he thinks the gop's tax proposal will be. some harsh criticism obviously, but representative higgins claims that secretary mnuchin's
theory of the tax cuts paying for themselves does not add up. mike bishop of michigan who serves on the house ways and means committee. we do not have details but of what details we have, somehow scored that this will cost $5 trillion. we keep hearing, sir, that the president is saying 4 trillion, it will bring in 4, 4.5 trillion, that does not pay for the tax cuts. what fiscally conservative part of this do you want our viewers to see here? >> first of all, we don't have all the details in place, and it's impossible for us to pass judgment until we have the details. liz: agreed. >> i would also say this is about growth. putting this economy in a position for growth, and as a fiscal conservative, i would rather have money in your pockets in the pockets of job providers than i would the federal government. it's gone upside down over the past years, it's been 31 years
since we've had any kind of tax reform, long overdue and all this speculation is the grand scheme to torpedo this before it comes out of the gate. it's not fair. i challenge the critics when it comes to the final document that we're going to vote on. i challenge them to vote against it if it does what we think it's going to do, to create a substantially improved economy. liz: is it encouraging at all, i don't know if you heard the interview with democratic representative higgins. is it encouraging he said he's for 20% corporate tax level. a tax right there. he's on the same page in feeling that that would spur jobs and certainly be helpful to the middle class? >> everyone knows that this will be helpful to their constituents. this is something that all members, regardless of your party affiliation. this is going to come down to politics, and not policy, unfortunately. it's whether or not nancy pelosi let's her members vote on this, and if they do, if
they're allowed to vote conscience, i guarantee you it will be bipartisan and overwhelming. liz: if they listen to constituents who no doubt absolutely want a tax cut so they can put money, as you said, in their pockets to spend as you will. again the last time and it's been decades since we had a budget surplus was under president clinton and he had both cut and then hiked tax rates, as you may remember. we're starting to see better growth right now in the first couple of months of president trump's administration here, and we're still below 3% growth. we know that it's time to try something different, but the government's got to run, and that means it's got to have revenue. where are you going to get the revenue? >> we need to reinvigorate the economy, jump-start the economy and get involved in the global economy. we have not changed our tax code since 1986.
the iphone wasn't invented yet. it's time we do, that make our environment more competitive. bring the money back that's parked overseas. get our job providers ready and willing to invest in their company and to grow their business to hire people to pay their workers more. that's how you grow an economy, and that's how you do it from the ground up, and we believe this plan will do just that. liz: and finally, congressman, this 401(k) issue has a lot of people very concerned. i've had more people call me and say, liz, what are they going to do to our 401(k) in the president getting on marine one to go texas, he today said well, maybe that's a point of negotiation and a compromise of changing people's 401(k)s. what can they expect there? >> well, first of all, it's a detail that's not been worked out yet. liz: but you heard what they've said and people, as expected, that maybe there's going to be a much tighter limit how much
people can contribute to their retirement? >> this is, again, part of the plan to torpedo this out of the gate before we get a chance to talk about it. the goal of this committee, the ways and means committee is to create an environment that's -- that will allow families to save more, to earn more and save more. that's our goal. we don't have any interest in putting our families in a position that will be detrimental to their future and family's future. liz: and to the economy because if they get trouble in their retirement, they're going to go for help from the government, and that costs money, of course, for all of us. michigan congressman mike bishop. lovely to have you. >> good to be here. liz: good luck, all of you guys trying to get this done. closing bell ringing in 16 minutes. dow jones industrials down but not entirely out. we're down 118 points. less than a half a percent. it's not a huge deal. now as if a questionable timeline and possible fight that we discussed over 401(k)s
weren't enough, the fight to protect state and local tax deductions from your federal returns is still raging. a battle that's dividing gop leadership against their colleagues from the empire and golden state. could a new compromise be in the works? charlie is about to break that. you got to hear this. especially if you are from the high-tax state. sheryl sandberg saving face on capitol hill in the wake of russia's meddling scandal, another social media giant making big moves to avoid the wrath of lawmakers, but will lawmakers say we see through that? more "countdown" on the way. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest
faces u.s. lawmakers next week. the firm will increase transparency for election related ads on its network, meaning it will give out the information of just two bought the ad, how much they paid, what country they are from, because as you know, facebook, google and twitter recently revealed russia and russian entities bought thousands of ads to sow disinformation. executives from all three of the high-tech social media companies are set to testify before the senate intelligence committee one week from today. >> why can't twitter make any money? what's wrong with them? liz: just journalists getting their breaking news. >> trump is on it all day. he's their best advertise and can't monetize. liz: they couldn't figure out when they ipowed years ago they should have given fox business an interview.
those of you that are new to fox business, they literally had security guards keeping fox business away. >> yeah, the new york stock exchange, that was not the finest moment when that happened. they bullied us. pushed some of our reporters around. liz: they formed a ring with security guards. >> they're lucky i wasn't there. we would have went nuclear. liz: did i just do the cat thing? charlie, you've got news on the 401(k) issue. i got texts from people worried about this? >> here's the problem that the republican leadership has. it's vague on every level, and there's pitfalls on every single one of the deductions including state and local taxes. where tonight we understand the house leadership is going to have a meeting with lawmakers from new york, california, new jersey. liz: high-tax states. >> the place where we live, we're the ones getting screwed here. liz: our viewers are saying
fine, screw them. >> screw the new yorkers. here's the dichotomy, interesting, the house, the republicans run the house, it's largely a midwestern and southern party, right? those are places where they don't have state income taxes, they don't have people that deduct the state income tax, they have no problem getting rid of the state income tax to pay for tax cuts. yet, think about this, 60 lawmakers come from new york, new jersey, connecticut, california. liz: both republican and democrat. >> mostly republican, if they do this on party-line vote, they can vote against this and will vote against this. we have a write-up on foxbusiness.com, my producer brian schwartz broke the story a few minutes ago, the house leaders are going to meet with lawmakers from the high-tax states to hammer out a compromise. one compromise is if you make $300,000, and less you get to
deduct everything. more than that, a complete phasein, tonight the rubber meets the road. liz: and met last night secretly with kevin brady. >> this is a bigger one, with scalise, brady and what they're telling us to, we spoke to the congressmen that are going to be in there including new jersey congresswoman mcarthur. there is a good chance a solution is going to come out tonight, see if they can get them on board. again, the tail wagging the dog here. lawmakers add up to about 60. yet 60 voting against tax reform could doom the bill, you see what i'm saying? . liz: of course. >> the tail wagging the dog on this. and tomorrow morning is going to be an interesting news day for the state and local tax deduction, for the 401(k). i tell you this, this is the one major problem with the trump tax plan. he literally came out with a blueprint, as you know, about a
month ago. liz: yeah. >> it was a blueprint that he left most of the heavy lifting up to congress and the committees. when you do that, it slows down the process. now here's the thing. liz: they say november 1st. >> they say november 1st. then has to go to the senate and then you have real potential fireworks here. lot of people tell me, don't worry about corker, even though he hates trump, don't worry about flake, they're worrying about mccain, because mccain is a deficit hawk on this stuff, saying no, and basically getting senator murkowski and susan collins from maine to agree with him and scuttling any deal. liz: it is disconcerting to many people that the republican party is not successful at the moment and try to figure out how to pay for this thing. >> well, i believe that we have to grow the economy at 3% or else you are not going to pay it off. you might have to suck up and take a deficit.
if you get 1.5% growth forever, have you bigger deficits. liz: you're going to get cut off in three seconds, two, one, see you again, thank you, charlie. [laughter] >> i scratched my chin. liz: that's attractive. ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ can i kick it? ♪ yes you can ♪ well i'm gone
♪ liz: 60 days till christmas. a little less for hanukkah. 43 days left. we have chief market strategist oliver porsh is here. >> great to be here. liz: make a little sense of viewers for the selloff. >> i don't think you read into it at all. it is letting air out of the balloon. a little bit of mixed reports today. liz: 10-year yield at seven-month high. >> that tells you a lot.
money is flowing out of bonds, into equities and other asset classes. look, everybody has been perplexed that the market is as strong as it has. up 30% for the last 12 months, dow jones. there is good reason for it. a lot as you talked about in the last segment in charlie is about tax reform and regulatory reform and deregulation. if you think that is going to happen, there is a good shot and sectors that will be good for that. liz: avoiding consumer staples and real estate. >> yeah. liz: as you put the ideas out there, put up your picks because many have strong dividends. they're not necessarily u.s. stocks. total of france. bce, bell media cisco, agrium. don't go to details, we're up against the clock here but are you optimistic? >> i am generally speaking
optimistic. i think strong balance sheets mat ear great deal. you look for stocks with the strong balance sheet. [closing bell rings]. they will win over whatever environment next six months. liz: is a pal of this network since day one. of a the close starts right now. >> the dow off its lows. it is sending down 112 points. about it had been down 190 points. it could have been a lot worse. hello, everybody, i'm david asman. melissa: i'm melissa francis this. is "after the bell." here is what else we're covering in this very busy hour ahead. the tables are turned what the president calls the russia hoax, slamming hillary clinton and the dnc as lawmakers turn their attention to multiple scandals focusing on the obama administration and