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tv   Mornings With Maria Bartiromo  FOX Business  December 7, 2018 6:00am-9:00am EST

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lauren: prices are up this morning, phil flynn, thank you. cheryl: let's go to maria bartiromo who is in washington, d.c. good morning. maria: thanks for joining us it is friday december 7th, top stories right now 6:00 a.m. on the button east coast, stocks under pressure this morning, take a look at futures indicating decline at the start of trading despite the fact that markets cloaked off of the lows yesterday, it was a wild one on wall street yesterday, plunged earlier in the session in the arrest of huawei ceo and china relationship and report from wall street journal on federal reserve taking a wait and see approach on raising interest rates lifted stocks from the lows, the market actually ended lower but well off of the lows to have session. at the end of the day it was mixed, take a look at the numbers, dow jones industrial average almost down 80 points, third of a percent. s&p was also negative by 4 points and the nasdaq turned
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positive almost 30 points, 1 percent higher on nasdaq, there was buying momentum yesterday. take a look at ftse 100, up 112 points right now, down, others higher. possible extradition to the united states, peter navarro weighed in on who knew about the developments. >> no one was on the team prior to sitting down to dinner we met several times as group, larry kudlow, steve mnuchin, ambassador bolton, secretary pompeo, lighthizer, jared kushner.
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this never came up. maria: fallout over u.s.-china trade relations coming up this morning. opec uncertainty, no final decision yet from the cartel's meeting even though saudis were sure we were going to get output cut. there was pushback from russia and, of course, open question about iran's oil as well. so that is causing some uncertainty there, we will see if we get production cut, job's day in america, government releasing november numbers, we are expecting the numbers to be 200,000 new jobs added to the economy in month of november, unemployment is expected to hold steady at 3.7%, we have everything you need to watch for in the report, all hand on deck on jobs coming up. then playing favorites, new report alleging that the new york stock exchange gave special treatment to morgan stanley broker allowing morgan to trade after hours, there's backlash about it this morning and we've got it. all the stories coming up this friday morning in washington,
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joining me to talk about all of the above town political guy benson along with wall street journal jon hilsenrath, in new york fox business network dagen mcdowell, dagen, good morning to you, what a wild day yesterday on stocks. dagen: wild day, i don't want to diminish what is going on with the arrest of the huawei chief financial officer but i said on the program yesterday morning it's about the federal reserve and the direction of interest rates and investors concern that the fed will overdo it and i think that proved to be true yesterday afternoon when the wall street journal article came out about fed now taking a wait and see approach and, book, you have this amazing comeback in the stock market. maria: that's true, all of a sudden you have more voices than just president trump saying you know what, let's reassess an look again and make sure that the data is confirming 3 rate hikes in 2019, jon hilsenrath is
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with us this morning and we want to get commentary on that as well, jon. >> yeah, absolutely, you used the keyword data, it's really about the data for the fed right now and what the fed has observed over the last couple of months is inflation isn't rising as much as the models say it would and now we have the oil prices falling so looks like inflation will soften even more in the next couple of months so what the fed is saying, all right, let's see what the data show, maybe we don't need to go the rate hike every quarter, maybe we can see how things play out. they are getting -- they've moved rates up over 2%, they've done a lot of the work they felt they had to do and so maybe they don't have to work so hard over in 2019 as they did in 2018. maria: we are watching rates and as dagen has been mentioning for weeks that's the driver of the market.
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you saw what happened with the arrest of cfo of huawei you start to pay attention, donald >> that's right, some of the struggles of the market have been tied with whole issue of trade and jitters if they are going to hammer anything out or trade war escalate and the huge story breaks where at the direction of u.s. authorities canadians arrested this woman, it's interesting to watch the reaction here in washington because it seemed like one of the few things that everyone agreed on, intellectual property theft was a huge, huge problem, here we are doing something concrete about it and everybody is going to corners. jon: for the markets, the other thing that's really important here, not just trade war but the fact that america multinationals have so many bodies, so much investment in china, how are the chinese going to respond? are we going to see american executives --
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maria: ceo of american technology company watch your back if you're in china post what happens, we have the president of microsoft yesterday and layed it out in terms of the importance and cost of the intellectual property from china to u.s. corporations and it is big, steve bomber told it's $10 billion a year in lost profits when it comes to microsoft. joining the conversation texas congressman is with us, house judiciary committee member andy biggs, big meeting, jim comey testifying in closed-door meeting, he's talking to john ratcliffe and tray gowdy. the nasdaq finishing mix, sharp turnaround after washington post reported the fed may take wait and see approach.
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ming is expected to appear in court later today for her bail hearing, here now is vision 4 fund distributors heather joining us to talk more about that, your thoughts on markets and whether or not we will see the nervousnesses continue even though now we've got a little more clarity on where the fed might be going. >> yeah, sure, i think the markets will continue to be volatile, such an amazing move bounce off the lows of 700-point decline on the dow yesterday and markets were telling us maybe it's not about trade and the arrest of huawei cfo. that's telling me it may still be about the fed. jon: now this brings us to job numbers today because the fed is saying we are data dependent, they will raise raise rates in
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december but after that moves depend on thousand economy does. if we get a gang buster number, the fed says game on, but if the number on the soft side that con -- confirms -- >> if it's on the soft side, the fed may be out of the way based on what came out of wait and see approach. the better the data in terms of wage growth and unemployment, give me over 200,000 number. i think that'll be okay for the markets. jon: i think it's right down the middle for that it's looking for. >> 200,000. >> 150, 200. maria: you have the price in the fact that well look the economy is running strong and maybe the fed will have to be vigilant. dagen, let's not forget that the fed has enormous balance sheet right now and another form of
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tightening is unwinding the balance sheet, remember earlier this week, we heard buzzing about steve mnuchin, treasury secretary bringing up issue to bankers saying would you rather see the fed unwind the 4 trillion-dollar balance sheet or see interest rate hikes because they are both forms of tightening. dagen: they are, you are starting to see the results, we have been saying all year that you don't know how this will play out in terms of the balance sheet reduction, you don't know what the knock-on effects are through the economy and even the markets because this this is unprecedented unwinding of the unprecedented building of the balance sheet, what you are seeing yesterday diminish liquidity, harder to buy and sell stock bonds an even oil futures, you have some traded bond funds that the price is trading below net asset value which in a regular et, if you do not see and so a lot of people
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are blaming the liquidity problems you're seeing in the market on the balance sheet reduction which is $50 billion per month, the balance sheet below $4 trillion. jon: i want to say something about the balance reduction. fed is pretty committed to continuing that. maria: got to. jon: because it's continuing that, that's another reason for wait and see approach -- maria: that's why i brought it up. another form of tightening. jon: maybe we don't need to be so aggressive on interest rates. maria: i think that's what steve mnuchin was trying to ashrewd lsh -- allude to. peter navarro was on fox business last night and he weighed in on the huawe arrest. >> neither the president or ambassador bolton were aware of justice department action prior to dinner.
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we were not informed of that by the justice department, there's nothing wrong with that, justice department does these things independently on its own and that's what happens. maria: of course, overnight we get the tweet from the president of china basically saying all teams are working and we are sure we will get a deal, donald trump tweets back saying, i agree, we will see. >> yeah, a lot of people in this town and up in new york who are hanging on every word but a very dramatic development. i actually tend to believe that the very top officials at the white house didn't know this was coming but there has been pressure from this administration overall on the issue of chinese malfeasance, perhaps largest component ip theft and high-profile arrest. maria: high profile also because of espionage factor. this is a company along with zte that has been looked at for a long time in terms of the chinese government using these companies as tools to spy on
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foreigners including americans. jon: there's so many factors here, espionage factor, the sanction's factor, they were involved in evading iran sanctions. they are challenging america's most important industry. maria: they want to be number one. >> if you want to justify arrest, you went through all 3 big reasons. >> we had trade truce at the time or right after this happened meaning that china already knew, i think, that this arrest happening in canada, went back to g20 summit and said that there was some sort of trade truce and huawei has been investigated for a long time. maria: that's what i'm saying. jon: the idea of grand reset of
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relations seems excessively hopeful to me. dagen: maybe it's time that the u.s. started enforcing our laws and standing up for american corporations that have been robbed by the government of china. as the wall street journal editorial points out, trade negotiations and enforcing our laws, those aren't incompatible and everybody can prosper as long as we all get on the same page. maria: which is why many people from both sides of the i'll agree that president trump was right to poke and push china and demand change. real quick, heather, new money to work on the market or too afraid or sidelines because of volatility? >> i think you have to stay the course, the markets will remain volatile. we will get positive today given trade disputes. maria: please stay with us with full coverage of november job report, 8:00 a.m. eastern, we will identify where the job creation is in the economy right
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now. we have all hands on deck for jobs in america and jobs numbers this morning. opec delays decision over the level of output cuts. (vo) 'twas the night before christmas and all through the house not a creature was stirring, but everywhere else... there are stores open late for shopping and fun as people seek gifts or even give some. not necessarily wrapped with paper and bows, but gifts of kind deeds, hard work and cold toes. there's magic in the air, on this day, at this time. the world's very much alive at 11:59. wat t. rowe price, hundreds of our experts go beyond the numbers to examine investment opportunities firsthand.
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maria: welcome back, the new york stock exchange accused of allowing morgan stanley to make after hours trade when nobody else could. cheryl: this is something, maria, new york post reporting that the new york stock exchange gave special treatment to morgan stanley broker who asked to trade large blocks for several minutes after stocks exclosed, 4:08 to complete big transactions, last friday, remember, that's a day before president trump's meeting with china xi jinping, morgan stanley has not made comment yet.
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take a look at morgan stanley, down 18% this year, well, other automakers maybe scaling back but fiat chrysler plans to open new vehicle factory in detroit, new plant will build the latest jeep sports utility vehicle, first new u.s. assembly plant in at least decade, remember last week general motors announced they were ending production in ohio and michigan laying down 15,000 people, shares of fiat chrysler down 8% for the year. well, america saying its final good-bye to george h.w. bush yesterday, his casket aboard 4141 train that carried him to final resting place, he got a big texas welcome home yesterday and texas a&m, 21 jet flyover to honor 41st president, bush enlisted in the navy at 18
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year's old, he was finally layed to rest with private service with family attending. maria: beautiful. a great tribute to a great man, cheryl, thank you, coming up oil slick, extending losses as opec talks with no deal in sight. comedy cut, kevin hart pulls out of being oscar's host of backlash over decade old tweets, we will tell you what happened, stay with us. ♪
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♪ ♪ ♪ maria: welcome back, no deal yet for opec, members of opec are meeting again today mulling over production, russia may contribute cut. steven, good to see you this morning, your thoughts on what opec may do in the face of this big selloff in oil over the last 2 months down 20%? >> right, maria, and what we are seeing actually is a reignition of the sunni side of opec and shiite side of opec. let's be honest here, sunni arab the thing they hate is shiite
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with icbm. if we remember back then, had come off 30% of summer highs, we were going to opec meeting and iran like today was suffering from sanctions given with regard to pursuing nuclear weapon, like 2014 saudis did nothing at the november opec meeting and allowed the market to tank. i think we are at that situation right now. i think the rhetoric coming out of saudi arabia, the nonchalant of let's have 1 billion-barrel cut when expectation was 1.5 to 2 billion, they are daring the market to go lower. i'm not optimistic we we will gt meaningful deal out of opec today. jon: steven, 2014 episode hurt in some ways the u.s. economy because when prices fell it really knocked out a lot of u.s.
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fracking in places like texas and north dakota. what's at stake here for the u.s. energy industry with talks that opec is going through? >> in the short-term not much because we've had ample opportunity the entire summer, producer, lock in future production 2 years at well over $70 a barrel, the industry recognized the opportunity they had over the last few months and took advantage of it so we are well hedged at this point. also in 2014 you're correct, it absolutely hurt the economy, it really hurt the oil economy but opec at the end of the day really did industry a favor, they did the fed heavy lefting, the entry got fat because of cost of capital. pullback in oil prices in '14 and '15 forced to retrench. they can make money at lower prices so we are not nearly as vulnerable as we were 4 years
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ago. maria: yesterday we heard from ceo of marathon petroleum, i interviewed gary, listen to what he said, i want to get your reaction. >> sure. maria: i know this could be indicater of slowdown in global growth, that sometimes is indicative in the price of oil or maybe it's telling us something only about the oversupply situation, to what do you attribute the sharp selloff? >> i look at the oversupply situation, permian continue to grows, the balkin has come back strong, the foreign markets, the middle east production, the middle east production coming to the u.s., that's put pressure on the supply here in the u.s. maria: your thoughts? >> i don't disagree with that, maria, we see this in the forward curve in pricing, 6 months ago the price for oil today as opposed to the price of oil next month, 2 months, 3
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months, the price 6 months ago was at premium. when you are pricing commodities at premium, that's telling you that demand is overwhelming supply, over the six months we've had the inversion now with the price is cheaper than price into the future. this is clearly a market that's well supplied, at the worst as far as industry is concerned a sign that the market is oversupplied. so opec should, the saudis should cut but should could, would, could are the most useless verbs out there. we have the situation, the saudis won't do anything without the russians and also keep in mind we have iran apes, they have a point. they are under sanctions and they will not jump on board with any sort of sanction. maria: what's the level that really cuts into the shell producers' profitability, below 50? >> it's going to be below 50, psychological number, a lot more plays they can make depending on
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the location make money at $50 but we are at dy over dx moment, if we go lower the models suggest we can go to mid-40's, you will see pain in the industry. maria: we can start seeing layoffs in the oil sector. steven, good to see you. >> thanks, maria, take care. maria: paris is closed, french officials shutting down popular tourist destinations as they look to curb the protests. coverage of november's job report, mornings with maria is live from washington, d.c. all morning back in a moment. alerts -- wouldn't you like one from the market when it might be time to buy or sell?
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>> i maria bartiroma and it is jobs friday. your top story, 6:30 on the east coast, markets on selling pressure, a decline of 100 points on the dow jones industrial average, nasdaq down 31 points. the momentum was on the upside, the dow plunged earlier after the arrest of the ceo as investors concluded this must mean more upset between china and the us and the report on the fed taking a wait-and-see approach and raising rates, that left stocks low at the end of the day. a mixed session where the market did end offer the worst levels of the day, down industrial down 80 points and the nasdaq was positive picking up 30 points at the close, half of one person. in europe markets are rallying,
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gains with the s&p up 90 points, the cac quarante in paris up 65 points. and up 65, 2 thirds of 1% higher in germany. in asian markets higher with the except of hong kong which was done a fraction. jobs in america, economists expect 200,000 jobs added to the economy with the unemployment rate holding steady at 3.7%. we are breaking down the expectations of what it means for the fed in the markets. join us for special coverage. morning a lot of two sports great, the latest after two former professional baseball players are killed in a car accident. chaos in paris, outrage in france as officials prepared to close the eiffel tower and other sites after violent protests took place. kevin hart stepping away. the comedian will not be
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hosting the academy awards after all but the future of technology, the trump administration sitting down with the white house, ceo from microsoft, alphabet, oracle, qualcomm noting it is about ways to assure american dominance in innovation. joining us is technology analyst roger pay. thank you for joining us. so what is the answer to holding on to dominance, innovation in the united states? we know china wants to be number one in block chain technology. how does the us innovate and keep that number one spot? >> i don't think the trump administration will likely answer. it has to do with things like science which is the underpinning of technology, things like immigration, letting in people who can help the industry and promoting basically the education, the
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basic education that will lead to the kind of workforce in the united states. those are not what have been promoted by this administration. you can't just stand at the bum of the goose and say where's my golden egg? you have to feed the goose. >> this is an issue technology executive bring up all the time to hold on to the people they train, whether they are foreign or not, don't want to have a scientist or engineer come from russia, come from china and be forced to leave. >> there needs to be a welcoming stance on the part of the government and it is a diverse place, that is where the industry thrived. we have always been a beacon for other countries and the
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smartest people in other countries want to come and make a difference in technology. maria: there are tech executives out there who see regulation coming and they want it. microsoft asking governments for laws that govern the use of facial recognition. microsoft specifically addressed privacy concerns with regards to technology. i sat with an exclusive interview with the executive of microsoft. can and how the industry could change. >> and they are moving faster and doing more. when we look at a field like privacy, europe is leading the
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way in the field for two decades as we called 13 years ago for privacy legislation in washington dc and congress and it is a good thing we are seeing other companies like apple step forward to endorse this as well. if we have the right level of regulation. if it is balanced, forward-looking, you can get public confidence in use of technology and that will be good for the tech sector itself. maria: this from the guy who runs the company that was under the government's gun aggressively in the 90s. microsoft is out of the spotlight in that regard but regulation is coming. let me get you in here, guy benson. what is your take on what roger is saying in terms of immigration, some of these barriers to keeping america number one in innovation dominance? >> i agree with the point roger
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is making about prioritizing these, keeping them here, people who are high skilled workers who can help our economy. i think the slight push back to roger would be the president's proposal he put forward has focused on prioritizing merit and skill which would be healthy for the economy. maria: the president doesn't not like immigration. he wants legal immigration given that we have a structure to get into this country legally. >> h1 b1 visas are ones the tech companies want to take advantage of so inasmuch as the administration can smooth that process, tech companies tend to be happy without addressing the rest of the immigration issue. >> we have fewer foreign students coming here to graduate schools for phds so the administration talks about illegal immigration but legal immigration is being squeezed too which is unhealthy in my
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view. maria: thanks so much. roger, it was a busy week for markets. we have a busy show here as well. look at the top moments from "mornings with maria". >> president xi jinping made strong commitments on structural and nonstructural issues and if we can get this negotiated and get a real agreement this is the biggest opportunity for us business and us workers. our expectation is phase i will be implemented immediately. when i say immediately that it is part of the 90 day negotiation. >> when i was in government we were increasingly concerned about the penetration into western democratic telecommunication networks.
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my personal view is that is something western countries should be doing in terms of long-term security. >> the economic relationship between china and the united states is one of the most important economic relationships in the world. we would like to see a successful conclusion in the next 90 days for a successful conclusion that would ensure market access for american products including technology products in china. it would clarify the rules of the road. it would create a long-term, stable foundation for a relationship that will define the planet for the rest of this century in many ways. >> they are using free-market principles but building up their military. >> he is an extraordinary person, he lived a life exactly as he wanted to live it which means turning his back on his eastern upbringing in connecticut and yale and his father, he lit out for the west was when he gets to heaven there's not going to be a lot of peace. there's going to be baseball games, tennis matches with his old pals, paddle ball.
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he is going to have snuck a speedboat into heaven. >> what i said was people like rush limbaugh who said he hoped obama failed are bill marr who said you can recover from a recession but hard to recover from a president like trump, that kind of stuff is negative because i'm so pro-american. maria: the most powerful women list, so much power at play for women collectively around the world and the top three represent women who are extraordinary influence in attendance geopolitical and economic environment. >> the way to grow money is compound interest. i would like to see contribution limits increase for people in their 20s and 30s to give them an opportunity to build up the money they need for the future. maria: how much impact to name fentanyl as a controlled substance?
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>> the deaths from fentanyl were less than 5000, you look last year, the death spike to 30,000. >> there are a bunch of steelworkers and executives out here who do not want to see those tariffs go away on imported steel. your point about foreign competition, steel coming from overseas has a lot to do with pricing. >> no debited ministration's commitment to ensuring fair trade has allowed more investment in the steel industry. you are standing in the very place pl. andrew carnegie started the steel industry in 1875. kes out of nowhere. you do, too, but not in time. hey, no big deal. you've got a good record and liberty mutual won't hold a grudge by raising your rates over one mistake. you hear that, karen? liberty mutual doesn't hold grudges. how mature of them! for drivers with accident forgiveness, liberty mutual won't raise their rates because of their first accident. liberty mutual insurance.
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>> down 115 points on the dow, the s&p down 13, the nasdaq down 41 points, down 2 thirds of 1% extending yesterday's losses on the dow and s&p. sears may be coming to the rescue of the struggling retailer once again. cheryl casone he was details. share mackey offered to buy sears out of bankruptcy for $4.6 billion. that would include lamp or acquiring 400 of sears remaining stars, the acquisition would keep 50,000 working. he was the ceo of sears, the comedy filed for bankruptcy in october. labor remains sears's largest shareholder.
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the city of paris on high alert, closing dozens of tourism sites including the eiffel tower and blue because of concerns about violent protests. 100 people were injured, 400 others arrested last weekend when demonstrators check at the french capital. the protesters known as yellowjackets criticized the government for rising gas taxes and the high cost of living. breaking overnight, kevin hart's gig as oscars host is over, two days after he got the job. the comedian bowed out after several homophobic tweets resurfaced from years ago. he says the academy gave him an option. apologize or step down. he did both. he said i am sorry i heard people. i am evolving and went to continue to do so. my goal is to bring people together, not tara's apart. a dream come true for students at ohio state university. the school has a vending
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machine that sells bacon courtesy of the ohio pork council which donated it as a fundraiser for the animal science program. strips of bacon and bacon bites are selling for one dollar until next thursday. maria: bacon from a vending machine. why not? what do you think? >> i'm not opposed to bacon in any form so i am open to attempting an array of bacon product out of a vending machine but i am not necessarily terribly convinced that it would be good enough to match up to the good stuff out of the front. maria: we will take a short break. we are mourning the loss of two sports grades, the latest of two former baseball players killed in a car crash. the tennessee titans grabbed a comfortable victory over the jaguars thanks to the dazzling display of the running back, more sports coming back.
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>> two major league baseball players killed in a car accident. >> reporter: lewis valbueno and josé castillo in venezuela, shortly after the winter league baseball game in caracas, this is still a developing story but reports say the vehicle they were in it a rock or swerved to the other side. and the angels let him go in august "the dave ramsey show" season for the mariners for the cubs and indians.
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josé castillo played for the giants and the astros. carlos rivero who played in 2013 was also in the vehicle that crashed. he survived. at yesterday's funeral service for george hw bush we saw 41's connection to the sports world, close friendships with the likes of former houston rockets star yao ming and the campaign mutombo apparent. tennessee titans running back derek henry had the greatest games ever. and in the stiff arm, and the longest touchdown run, 99 yards and said the franchise record
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with 230 rushing yards and the titans improve to 7-6, 99 yards and what he win for the tennessee titans. maria: you watched the game. >> i didn't watch last night but i usually watch college football. that gets your blood pumping and is fun to watch. >> it was amazing, this is a guy who is not one of the nfl star running backs, he's a great running back -- >> it was more -- >> this brings me to an item when i was 10 years old, was not allowed to watch monday night football. the vikings and cowboys. and my mother might walk by my room. i run and turned down the television and the black-and-white goes on and i see the longest ever touchdown, this one brings me back.
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>> what happened to the jags. they seem to be turning a corner last season. what a collapse, you thought tom kaufman might make a difference and they will go in the direction. what a difference from last year. maria: thank you. catch the sports report on fox news headlines 24/7 or serious radio xm 115. we will take a short break. futures indicator lower open for the broader averages, down industrials below, we are expecting a decline at the start of trading. we expect job numbers coming out and that may set the tone. join us at 8:00 eastern for special coverage and where the jobs are with job numbers out for the month of november. border battle, incoming house speaker nancy pelosi wants lawmakers to punt the debate over funding the border wall. we will talk about that in the
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next hour, "mornings with maria" right here. only half the story? at t. rowe price our experts go beyond the numbers to examine investment opportunities firsthand. like e-commerce spurring cardboard demand. the pursuit of allergy-free peanuts. and mobile payment reaching new markets. this is strategic investing. because your investments deserve the full story. . . . ♪ ♪ the greatest wish of all... is one that brings us together. the lincoln wish list event is here. sign and drive off in a new lincoln
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maria: welcome back. good friday morning, everybody. thanks so much for joining us. i'm maria bartiromo. it is jobs friday, december 7th. your top stories. stocks are under pressure this morning. the market will open lower at the start of trading, dow industrials down 120 points, s&p down 15 right now and the nasdaq down 46 points. it was a wild day on wall street yesterday. the march wetmarkets ended off s after the close. investor surmise the relationship between china and the u.s. is worsening. a report from the wall street journal, the federal reserve taking a wait and see approach on interest rates, lifted stock from the lows and stocks ended off of the worst levels. it was the end of a day, of a
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mixed day. the nasdaq went positive at the close, up 30 points, half a percent higher there. the dow was down 80 points, one-third of 1% lower at the end of the day. global markets this morning are higher, fq100 in london is up 80 points, this is off of the best levels of the morning. we're showing a gain of 1 1/% in london. in asia overnight, mixed performances. worth t perform -- worst performer was hong kong. the cfo of huawei set to appear in a canadian court today, awaiting possible extra digs to the united states. the concern for he global investors is this development will affect the 90 day trade truce. peter navarro weighed in on the trade talks last night. >> at the end of that time period, if we don't get what we need for the american people, particularly working men and women in this country who work
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with their hands, president trump will do what needs to be done. maria: we're following the latest developments on that, coming up. opec uncertainty, no final decision from the cartel meeting. we're following the latest developments out of vienna. we thought we would see a production cut. then they pushed back. russia was pushing back. we'll see if we get a production cut to get prices up it is jobs day in america today. the government releasing november numbers, expecting to show 200,000 jobs added to the economy in the month of november. the unemployment rate is expected to hold steady at 3.7%. we have everything you need to watch for in the report coming up and whether or not it moves markets. stay with us on that. the battle over funding for the border wall continues. nancy pelosi is refusing to make a deal linking the doll to the - linking the wall to the dreamers and daca. joining us here in washington this morning, guy benson, john
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hilsenrath and dagen mcdowell. i know you share with me a big thank you and cherishing our veterans everywhere on this 77 days after pearl harbor day when japan launched the united states into world war. dagen: and all the young men, like my uncle gordon who lied about his age to join the navy. he was 16 when he joined the navy and went on to fight in the pacific. we think about president george h.w. bush as well, who when he turned 18 became a knee i have w over the pacific. this goes out to everybody who has put their life on the line to protect our freedom and this country, then, now and in the future. maria: they see it as a duty and a service. i remember hearing the stories of my uncle landing on what they called bloody omaha, omaha beach or my grandfather when he came to this country in 1906 from italy, first thing he did was go
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to fight for world war i for the allies. it was that duty and that service that was just p intrinsc in their hearts. dagen: can you imagine being a teenager and doing it, complete and utter fearlessness in the name of protecting this. maria: thank you to all our veterans. we are looking at a lot happening this morning in business. we've got volatility everywhere. futures down this morning after a wild ride yesterday for the stock market. the dow, the s&p and nasdaq finished mix at the close, a sharp turnaround coming after the journal reported the federal reserve may take a wait and see approach when it comes to future interest rate hikes. we know we'll get a hike in december, in a week and-a-half, john hilsenrath. >> the big question at the fed is what do they do for 2019. they don't know yet but they've got to think for december, how do they signal their plans going forward. and they've been saying for more than a year now that they're
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going to continue with further gradual increases in interest rates. there's a big debate going on inside the fed about maybe we change that wording as a precursor to the new mindset that they're probably going to keep raising rates but not in the systematic way they've been doing it every quarter. maria:.maria: next meeting is . all this as the u.s. is ramping up efforts to curb the chinese technology industry with the arrest of huawei's chief financial officer. she is expected to appear in court in canada for a bail hearing. joining us now is john hen henserling. how do you think the u.s. is going to get china to change its behavior in terms of all of this theft of intellectual property over the decades, the forced transfer of technology and the unwillingness to open its
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markets. >> fortunately, the president has signed into law a modernization of what we call the cfius act which those do with foreign investment in the u.s. it was the first major rewrite of this bill in over a decade and frankly it came through the house financial services committee, my colleague, robert pitinger was a leader on it. i think it will go -- frankly, it is the proper tool to be used in this fight, much more so than the blunt instrument of any type of trade war with china. so it's clear that frankly not just for years but for decades, i think the u.s. has understander blind eye to the wholesale theft of our intellectual property and our technology. the update of this cfius law, which in congressional parlance is known as foreign investment reform and modernization act, i think is the right tool.
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the rules are being written under the legislation by the trump administration. treasury is writing the rules now. i think that is kind of a new offensive weapon to be used, and the right one. maria: let me ask you about the upcoming spending deadline. then i want to get the panel in. we know they're doing a continuing resolution, obviously after president bush passed but are you going to be able to get the money that the president is looking for, for the wall, and do you think a spending plan passes with this continuing resolution in the next week? >> well, i'm gratified to answer rapidly and confidently and say i don't know. so unfortunately, it come down to the point in a congress where about four people, all of which are above my pay grade, ultimately make this decision. so i am interested to see that yet again nancy pelosi seems to be more interested in making an issue than in making an agreement. frankly, i thought in the president's last state of the union he was incredibly generous
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to the democrats in his offer. it makes sense that if we're going to do something with daca, that we also have to -- there is a legitimate problem there and there is a legitimate human need that has to be met but at the same time we can't do the same thing over and over again, expect a different result and not call it inat this and that -- insanity and that is not secure our borders. i'm hoping that smarter, cooler heads will prevail here. frankly, how it all ends i don't quite know. so anyway, i hope i don't spend christmas eve with my colleagues. maria: let's run what nancy pelosi said yesterday. the minority leader is taking a hard line when it comes to any funding of a border wall. watch this. >> it depends on how you spend the money. it's border security, it's about border security, speaking for myself, consider the wall
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immoral, ineffective, and expensive and the president said he promised it, he also promised mexico would pay for it. even if they did, it's immoral still and they're not going to pay for it. that isn't how i would interpret a continuing resolution. we have the responsibility, all of us, to secure our borders. maria: i don't understand why she could say we have a responsibility to secure the borders but a wall is immoral. what is immoral about a wall? >> beats me. you have to ask her. maria: the department of homeland security said border arrests reached a new high for the trump presidency last month. >> got to secure the border but the wall, no, that's immoral. when we look at this whole funding situation, i know appropriations process has been less dysfunctional this year than it has been in the past. maria: that's good news. >> the potential bad news is once again a christmas era deadline where there's people negotiating behind closed doors and jamming a bunch of stuff
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into a giant omnibus spending bill and cramming it down and saying you better vote for this or everything will fall apart. it's christmas anyhow. a lot of us are concerned when this thing happens. >> ho, ho, ho, number one, as you point out, five of the 12 appropriations bills have been passed. i don't know how many years it's been since that has happened. we haven't quite achieved success. the trajectory is in the right direction. and yes, this needs to be an open and transparent process. frankly, in the 16 years that i've been a member of congress, i have been trying to reform a budget process system. i know speaker ryan has as well. the system we have frankly dates back to 1974 in the post-watergate era. it is broken. it does not work. unfortunately, this is one that continues to elude us, to change this particular process. i will say this. at the end of the day, it is
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congress. it is congress that has the article one, section nine authority of power of the purse and it's not always how much money you spend, it's how you spend the money that's important. and you brought up nancy pelosi as saying it's immoral to put a wall there. what's immoral about it in her mind is that president donald trump suggested it. i think if it was called a border fence, a border security measure, it's just simply become symbolism now in the body of politics which is unfortunately. the bottom line is, unchecked illegal immigration is a threat to our national security, economic security, and quite importantly, the rule of law as well, the foundational principle here in america. >> i want to ask you about the federal reserve, the president has been very critical of jerome powell for what he's doing with interest rates. what's your assessment of how jay powell is doing at the fed? >> well, number one, i think it's a little silly those who criticize the president for criticizing the fed. i mean, these guys have 14 year terms i think it is. they write their own budget.
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so they'r they're not wall flow. they ought to be able to take criticism. they don't have the monopoly on smart phd economists, number one. independence at the fed and congressional oversight and accountability, those are not mutually exclusive concepts. that's the first observation i would make. all in all, i think jay powell is frankly off to a good start. i do believe that we need to come to a neutral rate. i think the footprint of the fed is much too large in the economy. we can quibble over are we there yet, are we almost there yet. personally, the data i've seen, i believe we're either yet or we're almost there. so jay powell has a tough job. he didn't necessarily he create it, although he was on the board of governors when this incredible historic period of quantitative easing took place. but you can not have this long
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duration of artificially low interest rates for this period of time and not expect there to be a difficult job to unwind the balance sheet and reach something of a normal monetary policy. >> he's also one of the guys who wanted to end that qe program. it sounds like you're saying he's doing a good job, he's been doing the right thing. >> i think in general, yes. i would be concerned about further rate increases. i think we're probably approaching the neutral rate today and so -- but that's his job, to figure it out. but i don't -- again, i do believe the fed needs to be subject to examination and frankly they can be subject to criticism as well, as long as, again, they get to ultimately call the shots. maria: let's talk jobs. we've got the jobs numbers out in an hour and 15 minutes. you've got jobs, 3.0 act you want to talk about. tell us about your bill. >> well, thank you. the economy of today is doing quite well.
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the question is what will the economy of tomorrow look like. as recently at 2016 entrepreneurial activity was at a generational low. small business lending was half of what it was 20 years ago. you look at ipos, we've been talking about china, china has i want to say 37, 38% of the world's ipos. maria: one in four came public from china in america this year. >> in america, we're down to about 11%. we have half the ipos that we had 20 years ago. our public companies are larger, older, bigger and basically in america we have too many old cars in garages, not enough new startups. maria: 2018 was a stellar year on ipos. >> we've seen a nice turnback. i'm the father of two teenagers. the companies that are going to drive the economy in their peak earning years probably haven't been formed yet. we have a set of 32 bills that are based on what is it we can do in the entire ecosystem of
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our startups to get them to deal with easing angel investment, easing them going public and frankly staying public so the micro cats don't weather -- caps don't whither on the line. it's the only thing left in the lame duck session that can move the economic growth needle, not so much for today but more importantly for tomorrow and to compete with china so we can have more ipos in america, fewer in china. maria: tax cuts 2.0, dead? >> i think the rumors of its demise may be greatly exaggerated. i have a lot of confidence in kevin dquestion brady to put --n brady to put that in our stockings. maria: spotlight on carlos gone, the latest as prosecutors prepare to indict the nissan
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chairman on monday. so far he's been sitting in a jail cell with no charges. coming up, we break down expectations on the november job report, coming up. stay with us. ♪ ♪ move to the enterprise-grade cloud that's built to handle all your apps. ♪ ♪ the ibm cloud. the cloud for smarter business.
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this is our era. this is america's energy era. nextera energy but when i started seeing things, i didn't know what was happening... so i kept it in. he started believing things that weren't true. i knew something was wrong... but i didn't say a word. during the course of their disease around 50% of people with parkinson's may experience hallucinations or delusions. but now, doctors are prescribing nuplazid. the only fda approved medicine... proven to significantly reduce hallucinations and delusions related to parkinson's. don't take nuplazid if you are allergic to its ingredients. nuplazid can increase the risk of death in elderly people with dementia-related psychosis and is not for treating symptoms unrelated to parkinson's disease. nuplazid can cause changes in heart rhythm and should not be taken if you have certain abnormal heart rhythms or take other drugs that are known to cause changes in heart rhythm. tell your doctor about any changes in medicines you're taking. the most common side effects are
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swelling of the arms and legs and confusion. we spoke up and it made all the difference. ask your parkinson's specialist about nuplazid. maria: new info here, former nissan chairman carlos ghosn reportedly will be indicted next week. cheryl casone has the details. cheryl: japanese media is reporting that prosecutors plan to indict carlos ghosn for financial misconduct as early as monday. he was arrested for allegedly understating his salary. he was ousted as nissan's chairman. japanese media is also reporting prosecutors plan to charge the company for not preventing the alleged crime. shares of nissan are down 13% this year. president trump is expected to announce his pick for u.s. ambassador for the united nations. sources say he will tap heather nauert for the job. if selected, she would leave her
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role at the state department and take over for any ky hailey who is expect -- nikki haley who is expected to leave her post at the end of the year. a small town in central germany has taken their love for the king a step further. elvis was stationed with the u.s. army in freeburg from 1958 to 1960. the lights are installed at the town's elvis presley square. i thought graceland had quite the show, but this is better, maria. maria: i love it. cheryl: did you see the light? can you see it? it's crazy. maria: very cool. coming up, getting answers, the he details as james comey prepares to testify to congress behind closed doors today. he will have a private hearing. andanan dandy biggs weighs in. we remember those who served in
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♪ why won't -- no more, no more, it cannot wait, i'm sure. maria: welcome back. markets are under pressure this morning after a roller coaster session on wall street yesterday. joining us now, ken hines. thanks for being here. you've got this exclusive data that you get to he se see and rt about hedge funds. tell us what hedge funds are doing in this wild trading that we've seen for markets over the
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last month. what can you tell, us ken? >> we saw a mixed recovery from the october declines in the month of november which is actually led by the large credit multi-strategy, a lot of the firms that people are familiar with, and some of the trades that they've been doing in the last month, the last few weeks coming into today's employment report really has a lot of those large credit multi-strategies have to do with yield curve flattening trades. i think those are the trades that drove gains in the month of november and those are the trades that people are carrying into the employment report today with the prospects for slowing interest rate increases and obviously the stock market volatility we've seen in recent weeks. maria: dagen, we haven't had a good performance in terms of these hedge funds and we're still talking about two and 20 in terms of fees. dagen: absolutely. i'm curious to hear about which types of funds suffered massive, massive losses. there were oil positions with
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the downdraft in the cost of crude oil that there were a lot of hedge funds suffering. what do you expect in terms of closures of funds even? >> yeah, in november the energy base of materials area was the weakest area of performance. those funds were down about 4%, when we release the results later on today. but again, on the other side, we had the large multi-strategies and we had a recovery in emerging markets funds which were some of the leading areas of performance, up 2.5% or so. maria: what would you be doing at this point in terms of the oil trade? that's probably the big loser, right, as dagen said in terms of hedge funds. what are they doing with the money in terms of allocating money away from oil, given these moves? >> i think that people are still actively trading in that space. i think what you've seen is as i was saying is people have he reduced their equity market exposure and i think what people
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are looking at is you look into 2019 and some of the new trends, the trades that people are getting into, you're seeing more and more funds actually getting into legal cannabis stocks which has been a hot area and in addition to that, what investors are looking at in addition to these large credit multi-strategies is looking at liquid alt strategies which have become popular, includes things like 40 act funds, and also looking at risk premius strategies. what investors are looking at, performance, low fees and liquid at this are the three top things that are leading that. maria: that tillray performance was incredible, 650% on day one, the cannabis company. so that's obviously one reason that people are saying you know what, there's growth here, this is an area i want to get in. >> let's talk about the jobs
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numbers that are coming out in an hour. if we get very strong numbers i could see the market being worried that that leads to a more hawkish fed, very weak numbers i could see the market being worried it means the economy's slowing down. what in your estimate is that bullish number for the stock market? what kind of report would you like to see to support stocks and what would be a bearish report for the stock market? >> i think right now, i mean, i think that the jobs number will bear out what you heard from a lot of -- a lot of managers i speak with and a lot of the guests that you've had on this week, larry kudlow, steve mnuchin, art laffer, the u.s. economy is in good shape. i think that will be borne out by the report today. on the volatility side, i mean specifically i think 250,000 payroll woulds be a good number many .i think you would see a sg
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market reaction. you've seen the fed indicating backing off the interest rate increases. i think that would be a good thing. i think if you see something on the lower end, 150,000, i don't think that's bullish. i think that's where the volatility comes in. but just to touch on that volatility one more thing, the recent volatility incoming out of the environment that we've been in, you've seen -- i think the u.s. wants the agenda, i know that donald trump has said he's a tariff guy but i think that what they want is the free, fair trade. they want people to respect the ip rights and when they don't get those, the market sells off because people get worried the inefficiency of the tariffs is going to be brought in. maria: ken, thanks so much. coming up, the clinton foundation under fire again, the details as whistle blowers come forward with allegations of further wrong-doing. fighting christmas, the outrage after a school principal
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reportedly bans candy canes. can you imagine? she's claiming the j shape stands for jesus. she wants it banned. next. ♪ country roads, take me home, to the place i belong. ♪ west virginia. ♪ mountain mama. ♪ ♪
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maria: welcome back. good friday morning, everybody. thanks so much for joining us. i'm maria bartiromo. it is jobs friday, december 7th. your top stories right now. we are an hour away from the release of the november jobs report. it's going to be a big one. economists are expecting job creation of 200,000 jobs added to the economy in the month of november. the unemployment rate is expected to hold steady at 3.7%. keep it right here on "mornings with maria." we will have the numbers as soon as they are out. we will tell you how it i'm pacts markets and we will
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identify where the jobs are in the country right now. the high paying jobs as well. ahead of the report, markets are lower. futures indicate a decline at the start of trading of 130 points on the dow, down 1/2 of 1% on the s&p and the nasdaq down 42 points. this after the major indices staged a late day turnaround yesterday, markets were down sharply at the start of trading on the news of the huawei cfo getting arrested. by the close, the dow industrials cut the losses in half, plus, and the dow was down 80 points, 1/3 of 1%. s&p was down a fraction and the nasdaq closed higher, it ended up almost 30 points. in europe today that bounce is continuing. we've got real momentum in stocks in europe. the fq100 is up 85 points, cac up 60 points, and the dax index in germany up 56 points, 1/2 of 1% higher. asian markets overnight mostly
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higher with the exception of hong kong, the han hang sengdown 3/10 of 1%. new allegations about the clinton foundation. the leader of the freedom caucus say there are three whistle blowers with evidence of wrong-doing at the clinton foundation. we'll break it down today to see if that goes anywhere. no candy canings fo canes for ya nebraska principal is banning the holiday treat, saying they're shaped like a j for jesus and they're too religious. it's a jacket from a galaxy far, far away. columbia's new winter coat has special ties to the star wars saga. our top story this half hour, a closed door hearing is taking place today. fired fbi director jim comey will testify in front of the house judiciary committee today in a closed door meeting about the decisions he made during the 2016 election. the hearing will be private, but a transcript is expected to be released tomorrow. i spoke with house judiciary
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committee chairman bob goodlatte about the hearing. >> what are you going to find out from jim comey, what are the most important questions you need to ask him? >> i'm going to save those for mr. comey but you can imagine that you have a 400 page inspector general's report. you have the testimony of 16 other witness, all of which were taken in private transcribed interviews. you have the thousands of pages of documents. those have generated literally hundreds of questions that need to be asked. we want to follow the truth where it leads and then we want to make these transcripts available to the public so that they can draw their own conclusions about what occurred in 2016. maria: joining me right now is arizona congressman and house judiciary committee member, andy biggs. it's good to see you this morning. thank you for joining us. we've covered this now for the last year and-a-half pretty closely and i know that there were fisa abuses. i know that there were leaks, all of these things are
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felonies. give us in a nutshell so our viewers understand what did jim comey do wrong, in your view? >> jim comey looks like he put his thumb on the scale of the hillary clinton investigation. so that would be the first thing that he did. we could get into that in detail. but then he moved on, he was one of the ones who leaked information going forward to manipulate the appointment of bob mueller as the special counsel. he basically initiated the investigation that's gone on for a year and-a-half, two years on president trump that has nothing to do necessarily with the election. maria: bottom line, he didn't want donald trump to win. >> right. maria: and his colleagues, whether peter strzok, lisa page, coming up with plans to stop him and all of that is out in black and white. >> oh, yeah. the inspector general was very clear on this and mr. comey has been on a book tour. he said things that are inconsistent with what he testified to in the grassily committee in the senate. these are important things to find out. if he was putting his thumb on
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the scale, which looks like he was, if he was manipulating, using his power this is abuse of you power at the highest level of the department of the justice. maria: it's no secret that andrew mccabe has been recommended for criminal charges. it's no secret that at least 10 people have been demoted or fired at the doj and the fbi. it's not a coincidence. want to tell what you the president is saying this morning. president trump just tweeted and here's what he said. robert mueller and leaking, lying james comey are best friends, just one of many mueller conflicts of interest. by the way, wasn't the woman in charge of prosecuting jerome coursey in charge of legal at the corrupt clinton foundation? a total witch hunt. will robert mueller's conflicts of interest be lifted at the top of his republican's report. will andrew wiseman's past be listed in the report? he wrongly destroyed people's lives, took down great companies and only to be overturned in the
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united states supreme court. doing same thing to people now. will all of the substantial and many contributions made by the 17 angry democrat toss the campaign of crooked hillary be listed in top of the report. will the people that worked in the clinton foundation be listed in the report. will the scathing document written by lying james comey by the man in charge of the case, rob rosenstein, who also signed the fisa warrant be a big part of the report isn't rod totally conflicted. will all of the lying and leaking by the people doing the report and also bruce orr and his lovely wife molly, clapper, and many of the fired people at the fbi be listed in the report. will the corruption in the dnc and clinton campaign be exposed and so much more. the president has a lot to say on this. kim strassel writes an op ed
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this morning. she writes about saving hillary clinton, protecting her. what are your thoughts? >> i think ken is right. what we saw here, mueller also has basically taken his own path and it wasn't actually to get at the truth. look, we didn't constrain him by saying you're going to investigate what we think is a crime, you're going to investigate a person and people. that allowed him to wander into fields and do what he wanted to which in my opinion was to get after president trump. there wasn't anything in president trump's tweets this morning that was inaccurate. it's an indictment of the abuse of power at the highest levels of the fbi and doj and mueller investigation. maria: while they ignored any wrong-doing that hillary clinton may have done, they emphasized and came up with a narrative of donald trump colluding with the russians which we know zero evidence, that's not true so
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far, and there's been nothing done about it. let's talk about corruption in the clinton foundation potentially. your colleague mark meadows reporting three whistle blowers have come forward with further evidence against the clinton foundation. accusations include making donations while hillary clinton was secretary of state. we know she sold uranium to the russians. how much did the clinton foundation get? $100 million? >> look, they're getting incredible fees to go speak in russia and yet they have the adas aaadacity to say we lost be of russia. sessions designated an investigation to go forward on this. we're finding out there is a 100 pages coming out from whistle blowers that say we advised
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president clinton to quit mingling the funds. it looks like a pay for play type of affair whenl when hillay clinton is the secretary of state and bill clinton is making incredible sums of money. this looks like a pay for play. this takes us to the uranium scandal. what happened? well, comey and the fbi didn't do their job and this leads right back into the mueller investigation. we're ignoring all this. maria: congressman, where is all of this going? what's wrong with your colleagues, frankly, with all due respect, bob goodlatte sends a subpoena to get these people in, to talk to them in december, four weeks before he steps down? you had an opportunity to interview rod rosenstein. paul ryan said forget it, let's not do it. does the leadership not want to prosecute this stuff? >> i'm not sure what their
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motivation is. i do know that there's been a cadre, whether meadows, jordan, devin nunes, we've been trying to prosecute this thing. i was told by jeff sessions before he was forced out, resigned, whatever it was, they would reopen these cases and prosecute these cases. on the clinton foundation, at least an investigation is going on o ostensibly so something is happening. we've got to deliver. we keep delivering. i'm with you, it's frustrating. maria: can robert mueller come out with his report and not mention any of the malfeasance on the other side? is it possible that that report will have credibility if he doesn't for example mention the fisa abuse, the fact that they didn't have the goods to actually spy on an american citizen and they withheld information to the fisa judges to get the fisa warrant? >> i think his whole team is incredible as it is. i think there are conflicts all over that team.
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maria: so then yes, he can come out with a report and totally ignore it. >> he can. it will not be credible. it won't be a credible report. i don't know how he rehabilitates his team. maria: real quick in terms of the new congress, does this go away at this point? you've got adam schiff running intel. you're going to have jerry nadler running judiciary, elijah cummings running oversight, they don't want this story out there. >> this is why this should -- we needed to put pedal to the metal a year ago. because we're now facing a situation where nadler is going to try to impeach president trump and brett kavanaugh. adam schiff believes that nothing that mueller has done is bad and inappropriate or there's no conflicts. we are facing an uphill battle. this is going to i'm afraid be swept under the rug and that will be a crying shame. the only place we have left to rely on is the department of justice to prosecute these people. maria: do you think we'll get a new a.g. soon? >> i think so. maria: congressman, it's good
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to see you. thank you so much. stay with us, a ban on christmas, the fallout after a school principal reportedly prohibits candy canes, saying the j shape stands for jesus and it's too religious. christmas trees and santa decorations also out? come on. back in a minute. (toni vo) 'twas the night before christma,
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and all thro' the house. not a creature was stirring, but everywhere else... there are performers, dancers, designers the dads and the drivers. there are doers of good and bringers of glee. this time of the year is so much more than a bow and a tree. (morgan vo) those who give their best, deserve the best. get up to a $1,000 credit on select models now during the season of audi sales event. moving? that's harder now because of psoriatic arthritis. but you're still moved by moments like this. don't let psoriatic arthritis take them away. taltz reduces joint pain and stiffness and helps stop the progression of joint damage. for people with moderate to severe psoriasis,
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at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today. you'll only pay $4.95. our new, hot, fresh breakfast will get you the readiest. holiday inn express. book now for at least 20% off during our annual sale. maria: welcome back. get this, the powerful winter storm has millions of americans in its path again. cheryl casone with the details. all right, give it to us, cheryl. cheryl: 'tis the season, right? the system is bringing rain and
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flooding to southern california right now. you can see this massive mud flow in burbank. part of interstate 5 is closed, causing major backups and southwest airlines has resumed operations at the hollywood burbank airport but it was suspended after one of its planes skidded off a wet runway. nobody was hurt. the same storm is hitting northern california with heavy snow. the storm is headed east. oklahoma's governor declared a state of emergency. it's a pretty big storm. well, thousands of fake nike sneakers intercepted here in new york. u.s. customs and border protection say they recently seized 9,000 pairs of counterfeit nike sneakers with an estimated retail value of $1.7 million. this was at the port of newark. the shipment was bound for china. california, from chino. an elementary school principal in nebraska has banned candy
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canes because she believed they symbolized jesus christ. she said the j shape of can day canecandycanes stands for gee se was placed on administrative leave after the administration disagreed with her policies. maria: that is so ridiculous. dagen, candy canes. dagen: this is what my father would say, what in the name of sweet baby jesus is wrong with you? that's what she woul he would s. it's a cane, like a cane that's what it's supposed to look like. she teaches school. what is she teaching the kids. maria: the perfect gift tore star wars fans, we're checking out new jackets inspired by a galaxy far, far away, right after this.
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maria: welcome back. futures pointing to declines at the start of trading this morning after the roller coaster ride yesterday, markets initially sliding over concerns about china yesterday. a report about the fed's interest rate policy helped lift stocks off of the lows by the close. columbia sportswear stock closing slightly lower yesterday. joining us right now is the columbia brand president, joe boyle. thank you for joining us. >> thank for having me. it's a great to be here. maria: we're glad you're here. we want to hear about the star wars jacket. we have exciting news for columbia brands with the unveiling of the star wars empire crew parka, a limited edition jacket used by the cast and crew while shooting the
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empire strikes back. tell us about the jacket. >> the jacket is a chance for fans of star wars, fans of columbia, to be part of history. this is the jacket that mark hammell and the crew wore on the set of empire strikes back in the 1980s. maria: guy was wearing it a few minutes ago. how did that feel for you? >> i look forward to my modeling royalties. it was very comfortable and very warm. i want all my star wars nerd friends to eat their heart out that i got to try that on on television. the hood was very comfortable. >> it's a limited edition. we went on sale last night, starting in tokyo at midnight. our stores and, have gone around the world on and today will be for sale in a number of stores. >> how limited? >> there's 2,000 jackets like the one you had on and then we
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have 30 limited edition special editions that mark hammel signed himself that will be available for sale and all those proceeds of those jackets whistle for 1,098 -- which sell for $1,098 and the proceeds go to charity mf wha.maria: what are you seer demand from the consumer. we are seeing reports that growth is going to slow down. what are you seeing in the consumer space? >> specifically on the star wars collaboration, demand exceeded our expectation, frankly. we're coming off of two quarters here in 2018 where we've stated sort of our demand. as we look at our business, we're a highly diversified business around the world, roughly 40% of our revenue is outside the u.s., no long-term debt and we feel like we're positioned for the future. maria: have the tariffs hit you, the retaliatory tariffs, has that been a concern.
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>> any time tariffs hit consumer products that we're in, it's a challenge. we want to serve consumers around the world. for us, free trade and trade has created for columbia sportswear thousands of well paying jobs in the united states. that's what we're here to do is serve consumers with the products we make. >> do you do any production in the united states and is there any sense in your shop that there's more incentive to do production in the united states with the economic reforms that the president has advanced. >> for our business, it's about a highly diversified network of production around the world. it's not about making products in one location or country. it's about having a diversified set of production. that's how we approach it. >> how about the u.s., any desire to move production here. >> it's prohibitive to make products here because of the supply chains that exist in the textile and footwear businesses. maria: thank you for coming in. thank you for the modeling, guy benson.
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>> you're welcome. maria: the star wars parka. stay with us, jobs in america coming up, stay tuned for our special coverage of the november jobs report, next hour, "mornings with maria," right here. comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast.
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maria: welcome back. good friday morning. thanks so much for joining us. i'm maria bartiromo. jobs friday, december 7, your top stories 8:00 a.m. on the east coast, it is jobs day in america, that means the november jobs' report is out, less than 30 minutes' time we are all hands-on deck for the jobs' report expecting 200,000 jobs to have been added to economy with unemployment rate 3.7% we have everything you need to watch for in this report in terms of where jobs are how they impact markets. stocks this morning under pressure into the number dow jones industrial average expected down 100 points one half of 1% s&p down one halfnoons nasdaq down almost a
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half a percent. >> markets volatile dow plunged in session on arrested of the huawei cfo this must mean the gap between u.s. and china is getting worse but then a report from "the wall street journal" midday on federal reserve, taking a wait and see approach on raising interest rates that lists stocks off the lows, and market end order of the lows, at at the end of the day, it was mixed dow industrials give a up 79 points 1 thinkers off a of a percent s&p 500 gave up 4 points nasdaq up 29 points the close one half of a percent global markets higher, he mostly in europe ft 100 london up 8 points higher cac quarante in paris up 1 1/4%, about dax in germany up a third of a percent, 42 points higher in asia overnight mixed performances take a look, best performer was japan nikkei average up almost 1% thong kong legislator. >> cfo of huawei to appear in
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canadian court awaiting possible extradition to united states white house national trade counsel president peter navarro weighed in one in administration knew about developments. >> no one -- on team was aware prior to sitting down with dinner complete several times as a group larry kudlow steve mnuchin ambassador bolton secretary pompeo, ambassador lighthizer myself with the president, this never came up. >> the fallout for u.s. china trade relations this morning, interceptor over opec no final decision yet from opec meeting talks reportedly stalling as saudis respectfuled to irexempt iran from production cuts. >> a report allegations new york stock exchange gave special treatment to morgan stanley broker allowing that broker to trade after-hours, nobody else was the backlash coming up those this friday morning joining me in washington, is town
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political editor guy benson jon hilsenrath, in new york stephanie pomboy, dagen mcdowell, "making money with charles payne" host charles payne all hands-on deck for the jobs number what we love jobs friday stephanie performance poison yostephanie. >> pomboy your thoughts. >> snowstorms, post hurricane rebuilding you know we also have powell yesterday makes comments alluding to strong labor market rising rays may be a heads-up there, no predictions what specific report could be but i would say that broadly i think the peak in unemployment games peak about in economic activity corporate profits is behind us, and that we're going to see you know, a gradual buts steady slowdown?
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data. >> you know this jobs number is going to be poijt to the fr after yesterday right with that journal report basically saying going to not be so aggressive perhaps in 2019 we will see what this number shows. >> it was that journal article the feds wait and see approach on future rate increases that took a dow from being down almost 800 points to finishing down about 79 yesterday, so that is important, but in terms of stoking fears again about the federal reserve, and the outlook for short term interest rates next year watch unemployment rate if unemployment rate comes in, below 3.7%, that will be a worry, wages are expected to increase as they did last month not last month, month before last 3.1% fastest wage growth that we've seen in this country since the end of the recession, in 2009 so we have had to wait nine and a half years, for that kind of wage growth i think the fed might
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look at that say, hey, let's not worry about inflation, just quite yet because we've seen a pullback in other inflation indicators. maria: we want to keep following this, because this has real implications in terms of markets and federal reserve, we are all hands-on deck for the jobs number and top story is wild swings in the global market following u.s. cfo of huawei to appear in a canadian court today then it is expected that she could get extradited to the united states blake burman outside white house with the very latest on this blake, good morning to you. reporter: good morning to you white house adamant president trump was not aware of this extradition requestions of meng wanzhou that dinner g20 saturday evening same day chinese telecom executive was detained in canada at request of u.s. authorities national
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security advisory john bolton it willing mpr yesterday he knew of the pending arrest in advance but peter navarro telling trish last night no one on team had a heads-up before that dinner. >> net president or ambassador bolton were aware of justice department action prior to dinner we are not informed that have by justice department, nothing wrong with that justice department does these things independently on its own that is what happened. >> president last night tweeted that he agrees with chinese that a trade deal could be reached, but the arrest spooked the markets yesterday over concerns that it could you impact trade negotiations. up on capitol hill top democrat senate intelligence committee had a different worry. >> my fear when trump administration was going to crumbable on huawei same way on zte as we move to the next
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generation wireless 5g that transformation as big as anything we have seen in wireless. >> the department had very little information regarding charges not aware of wrongdoing. >> charles payne in new york this morning, charles that was a wicked reaction, when the news first hit, but, of course, we still need more information in terms of what, huawei is doing, because in the journal story yesterday, the adjourn pointed out not just iran sanctions, it is espionage that this company along with zte has been used by chinese government to spy on americans. >> that is why there wasn't outrage from washington, d.c., not from america's allies uk has questions for huawei yesterday from hsbc, the
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bottom line this is something that goes back, for at least six years the governments around the world started understanding that something was wrong, here we already had earlier this year marco rubio tom cotton putting together legislation targeting two companies, huawei -- >> ironic that the market reacted the way it did when every one else normally would have crazy knee-jerk reactions to anything the president trump does that they think is provocative initialling everything thinks this was absolute right thing to do it wasn't a mystery. >> all right, well we are going to watch that because it is sort of open question at this point, let's talk jobs for a moment getting the numbers in less than 0 minutes what we are going to get 20 minutes' time 200,000 jobs expected created november unemployment rate to hold steady 3.7% your outlook. >> two things about this report one is the payroll
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number that headline payroll number is really important we've seen mixed signals about the economy over the last couple months exports slowing global trade slowing stock market off those suggest headwinds at the same time household income consumer spending stronghold number is going to tell us is economy running hot, running cold that is one thing the other thing is the fed reaction to this report, is really important, and that is going to dictate i think how the stock market responds i think from the stock market perspective what it really needs right now, is a number that is right down the middle of the fairway, if number is strong that suggests the fed is going to keep raising interest rates, if number is weak suggests the economy is going very slow, the stock market i think will rally on a number down the middle. >> wages, i mean wages up last report. >> wages are picking up, and that is good news, the wage numbers tend to be a bit of a laigdz indicator not going to tell you how the economy is
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right now headline payroll number will tell you here is where we are right now in november, going into december. here is the economy's temperature. >> that mover no oil is probably looked at closely at fed members meeting again mulling output cut, but oil down 20% in the last month and half. >> that ultimatesly couldaway on job market could hurt real estate in emergency parts of the country we watched texas closely i want to point out numbers 211,000 jobs is average that we've got over the last 12 months you get somewhere in line with that, a little bit above that, that is good news in this economy, and then also if you get around 200,000, we will have surpassed 2017 in terms of job growth still a month to go.
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so anybody who said that we continue accelerate economic job growth based on tax cuts good fiscal policy was wrong dead wrong watch that as well. >> in this -- >> excuse me, we look at the jobs numbers -- to the politics when leading to election, about every one is holding breath has a narrative is going to work we are in a lame-duck time electorally to jon's point the question thinking about hard at 1600 pennsylvania is is the growth the job growth numbers sustainable over a trajectory of more than a year or two? because they are looking to 2020. >> something else about politics of economy and numbers white house is focused on economic growth in fact we just had secretary mnuchin talking about the two most
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important things, to him, the council on earlier being growth and inflation i think white house needs to rethink messaging. the economy is is expected to slow next year or two the unemployment rate is expected to stay under 4% possibly as low as 3.5%, if i were in the white house i would say emphasize how low unemployment is strong job market not focus so much economic growth which is going to slow. >> i think they will make that adjustment to more sustainable number. >> looking for economy to slow perhaps touch into recession 2020, the time people are going to the polls right before reelection campaign, so this is important. >> expected to stay really slow i think that i mean if i were there would be message. >> quick break the markets shocking report climbing new york stock exchange aloud morgan stanley to engage in after-hours trading coming up 20 minutes away from not have been jobs report breaking down what you need to know coming
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maria: welcome back president trump just tweeting on china says this, china talks are going very well. there is the president and, of course, that was the big debate yesterday with markets, meanwhile, there is this new york stock exchange accused of allowing morgan stanley to make after-hours trades, cheryl casone with details. >> something else "new york post" is reporting, that the new york stocks exchange gave special treatment to morgan stanley broker asked to trade large blocks for several minutes after the market closed, the post says exchange officials gave broker until 4:08 pm to complete big transactions last any before trump's meeting with xi jinping in neither has had comment morgan stanley shares down 8% so far this year,
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automakers may be scaling back fiat chrysler balloons to open a vehicle factory in detroit new plant to build latest jeep utility vehicle first assignee plant by major carmaker in at least a decade last week gop gm announced would end production laying off 5,000 people. >> shares fiat chrysler down 8% this year, paris city on high alert right now, closing dozens of tourism sights including eiffel tower louvre because of concerns about protesters more than 00 injured 400 injured demonstrators to streets of the capital yellow jackets criticized government for rigs taxes and high cost of living and also at the arc de
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triomphe. >> we are minutes away from november jobs' report what you need to know ahead of it release stay with us. report is after this. hey! yeah!? i switched to geico and got more! more savings on car insurance!? they helped with homeowners, too! ok! plus motorcycle, boat and rv insurance! geico's got you covered! like a blanket! houston? you seeing this? geico. expect great savings and a whole lot more. and all through the house 'twas the night before christmas geico. not a creature was stirring, but everywhere else... there are stores open late for shopping and fun
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minutes economists expecting 200,000 jobs added to economy in november unemployment rate steady 3.7% joining us right now employee bridge professional president joanie courtney head of group lisa ericsson thank you so much for joining the conversation and lisa let me kick off with you market performance, how much of what we do now, has to do with this jobs' report? >> i do think there is going to be a lot of focus on jobs' report today, really i think what market is going to be looking for us what it potentially means for the next fed trajectory, obviously there is a hope that they become a little bit more dovish i think our base case scenario is if it comes out true in terms of of a continued firm labor market but -- ongoing wage gains but at a more moderate level, really we continue to support either the fed being able to stay on its current trajectory or even potentially soft-a
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bit. >> we will take a short break i would love to know where you see hiring happening now, particularly for high-paying jobs, november jobs' report out right after this.
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. maria: good friday morning. welcome back. thanks so much for o joining us. i'm maria bartiromo. it is jobs fr breaking news moments away from release of the november jobs' report, economists are expecting 200,000 jobs to have been added to economy last month unemployment rate steady at 3.7% we have numbers as soon as they come out, now just about 1/2 minutes away, ahead of the report markets are looking lower take a look ats futures a decline are start of trading down 44 points market all the way back we have been down double that, just about 10 minutes ago, nasdaq now down 19 points quarter of a percent lower now you are talking fractional losses, much worse earlier on, as we approach numbers european indices higher this morning,
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take a look at europe where you see ft 100 up 103 cac quarante up 67 dax up 68 points, right now, asian markets higher mostly -- higher overnight take a look hang seng one exception down a fraction a third of a percent, as you can see johne courtney with us your final thoughts before we get this number, in terms of where the jobs are being created now. >> yeah, maria you know this is one of the strongest labor markets we've seen there are so many opportunities over seven million jobs across the country, and right now, we know that there is a strong demand in engineering, sciences, health care, nurses, we see jobs customer service tracking so many sectors lot of opportunities i expect to see a good report and wages should be pretty strong as well. maria: i know that you like to look at the o revisions as well we want to really know what the revision is from month of october, as well as
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november to try to get that trend. and we will be focused as well on participation rate that is as well going to be a big focus, markets right now are lower, at labor department a good number. reporter: -- 155,000 jobs created in november private sector 16 1,000. >> neither loss government sector 6,000 overall net for down about -- was it 6 -- 15 a thousand jobs created unemployment rate, is 3.7% that remains the same, net revisions business september down by 1,000 revisions for october down 13,000 neither loss 12,000 realizations u6, 7.6% long term unemployment is
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20.8% employed average hourly rage up .2% pick up for last month labor force pacific ocean rate 62.9% average howly workweek ticked down .1 hours to 34.4 november nonsupervisory wages cross 7 cents to 22.95 bhiet unemployment rate 3.4% black unemployment rate at 5.9%, that matches the record low, back in may of 208, matched all-time record low for black unemployment, hispanic unemployment 4.5%, asian unemployment 2.7% health care gained 32,000 jobs manufacturing, 27,000 jobs up, over past 12 months manufacturing added 288,000 jobs, mining lost 2000 retail up 18,000, interesting general merchandise stores up 39,000, but the losses are those days
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offset by losses, in clothing stores 14,000 electronic appliance down 11,000 sporting good stores down 11,000 also again 155,000 jobs created unemployment rate remains 3.7%, back to you. maria: edward thank you so much, the numbers weaker than expected we were expecting 200,000 jobs stephanie pomboy reaction. >> if you think these look weak give it a minute, my -- when we get into is first quarter you are going to see dramatic slowdown in all economic data for a variety of reasons obviously seasonally first quarter tends to be weak you are going to lose a lot of tailwinds that are currently supporting economic growth. from post hurricane rebuilding, to j curve febts associated with tariffs in other words, companies import now goods that they expected were going to become more
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expensive on that end tariffs january 1, behind scenes the fed has been winding down balance sheet, the ecb and boj continuing to and an ends in early part next year so i think, you know we got to acclimate to weaker numbers along the lines what we are seeing in terms of headline report today, because come first quarter, these numbers are getting softer fed trying to kind of lay groundwork for pausing rate hikes. >> a do you think that is the case because rate hikes are slowing things down, is it just a lengthy of recovery? what specifically has you thinking things are going to slow down so much in the coming year. >> i think the rate hikes have been an ongoing drag that was masked by stimulus from tax cuts this year i think in 2018, the fiscal stimulus story stole show, 2019 i think
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monetary straighten is restraint is the story in 2015 fed started raising rates consumer felt tightening credit card rates went up personal loan rates up they have been experiencing the fed tighteningen the corporation bond market sector didn't have any effect from fed tightening until recently, now starting to feel it increasing yields spreads corporate markets starting to increase interest expense there but behind scenes wind down of the fed balance sheet has been draining refers from banking system slowing credit creation in general, and credit is the fuel for this economy, so it is you know, a tail wind headwind behind scenes no one noticed because tax cuts for a period there overwhelmed it but coming into january of next year obviously the tax cuts effect falls away.
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>> the administration will push back the administration will say you know what, this has a long runway, the tax cut benefits we will see what do you think. >> well, i mean, a lot of people are expecting the economy to slow in 2019 in part not only because the tax cuts waning but some spending as far as today's report i would call it good news bad news report let's not for bet 3.7% unemployment rate is exceptionally low very good news for the economy, the 155,000 payroll number a little on soft side not extremely soft it is not screaming massive slowdown or recession it is soft enough for the fed to continue this idea that maybe they are going to slow down the pace of rate decreases, but, you know, the soft payroll number suggests that the slowdown a lot of people have been talking about might be staring us in the face. >> chair wills. >> a i have to agree with stuff stephanie dagen brought
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up yesterday that rocker waslooked with respect to credit survey. >> loan applications down .2 percentage rates low rejection rates down 5.7 rz passage points, 7.5% from 5.7% a year ago from 4 percent a year earlier than that deeper the mortgage stuff scary scary, the fed sees this also speech powell gave last night goes to what dagen said jay powell understanding this has been uneven recovery closing remarks he said while the economy is strong he overall we recognize some communities have yet to feel the full benefits of the ongoing expansion, so i don't think 3.1% rage increase gets them to move i think he understands if they do move, the very people he is citing right in his speech last tonight, won't get any benefits that he seems to wants them to have. maria: hourly earnings up 2/10 of a percent in this
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report your reaction. >> you've got wages up that is a good stay on unemployment steady 3.7 is a very good stable number. the workforce participation rate also unchanged, a slight miss in terms of jobs created, but i think that you are exactly right jon to say good news bad news i am looking at dow jones lead u.s. employers slowed pace of hiring in november but wage growth matched highest rate nearly a decade unemployment held at very low level, so there is something for every one, i think. maria: you want to go down middle you said, you said earlier we want down the middle. >> this is close to the middle of the fair way little soft side but important to remember we don't need a lot of job growth to keep that unemployment rate steady at 3.7%, that is a great unemployment rate for american workers means there are a lot of jobs out there for people to get, so slowing in payroll
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growth, isn't such bad news as one that stays around 150,000 range, if below 00,000 get worried. >> where are jobs right now? >> you know, the jobs right now, are certainly in engineering, health care sector continues to do well, but i think the interesting dynamic with this report the wage growth did come out stronger, being up 3.1% and i actually think due to unemployment being so low, we could continue to see wages continue to move all the way through 2019. because employers still have a strong demand, in many sectors in many industries. they are really looking for that skilled talent, and being forced to do two things marmara forced to pay people more, and they are also being forced to offer training and skills ongoing to their employees to get them to the level of where they need them to be, that is all levels of the organization, so i actually think it is a good
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report, probably continue to see more of this but i really believe that wages are going to continue to improve through 2019 even if we see other economic indicators slow down. >> therein lies the worry, because yes you've got a number that is protected, as far as markets are concerned you are seeing this market come back after down sharply but what johnny is talking about has to hit profit margins slowdown market up 7 points dow jones industrial average after down 100 points earlier. dagen: in addition to rising input costs from number of areas including tariffs, that said we still have manufacturing payrolls up by 27,000 above expectations, of just 20,000. that was one spot to note also if you look at construction jobs, of all the talk we heard, literally for years, about there not being enough
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housing supply construction jobs only up 5,000, obviously weather factors that go into construction but you have seen discuss a of higher interest rates because of higher mortgage rates, throughout the year, if weakening in housing market home prices, not home price gains are slowing existing home sales declined, for 8 straight months, so that is where you want to look at individual sectors for signs of weakness i think that 5,000 jobs added at construction might be one of those signs, of a little softness in the economy. >> in another point that i would make mining jobs were down 2000 as we see roil prices off that could be another drag, in areas like texas and north dakota, the other thing would i say on payroll number of 155,000, one thing i wonder is hiring slowing down in part because companies can't find enough skilled workers? slowing down because the
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overall demand is slowing? if slowing down because companies can't find enough workers that is a sign the economy pushing up against limits that we're leaving growth on the table. maria: a good point, i am glad you brought up energy, because lisa how closely are you watching oil right here in terms of what it how it impacts the broader economy? if oil keeps going down this impacts the profitability of the shale companies they are going to start laying off we saw this movie before. >> yeah, we are actually -- a little bit more skeptical on commodities and energy sector in specific the reason why if you look at supply picture gloenl it is one continued production from all around, oil producing countries in addition to that you do have a softer demand picture globally as well add those up if anything, thank you know potential trajectory for oil is on the downside and that
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could put some pressure, on those oil companies. maria: and what was your reaction to the number lisa? >> and, you know, in terms of of the number we saw this more as a straight down the fair way number, i am looking at this in on a more positive basis similar to what joanie was talking about payroll number a little bit soft not completely surprising for this stage of the cycle. we have had a very nice, long economic expansion with a lot of good growth and we have a fairly tight labor market and about mismatch in terms of skills has been in order to so if anything i think that is still a solid number, and because it is actually on the soft side that gives some more reason for the fed to be a little bit more cautious, in its rate trajectory, again on inflation side we had again a very sweet spot number in terms of continuing to see wage growth, but not in an overheating mode and if
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anything, there was a potential for an outside surprise on that number given that we are later in the labor cycle and wages tend to lag so the fact that it stayed moderate actually to me is a very good sign. >> you had a lot of jobs also increasing in retail, but you wonder if that is going to be temporary, because retailers need more hires for holiday season right. >> those numbers should be seasonally adjusted interesting retailers had pretty good year we talked about this before with dagen and you a lot of retailers are starting to figure out how to deal with amazon how to deal with internet walmart for instance had a really good year. >> markets coming all the way back on this number, presumably on idea that the federal reserve is going to take its time what the journal wrote yesterday look at this market up 50 points right now on dow industrials, had been down 80, nasdaq was up, it is up 10 points right now s&p has gone from negative he go, to
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up five the points gerri willis with early reactionaries what are you seeing. >> good morning, maria. yeah not a huge reaction down here you showed what happened to the futures. bonds selling off a little bit not big surprise down here fact 155,000 jobs created lower than expectations right but people here say hey we are expecting even lower job creation coming in january. like stephanie pomboy saying as well so expectations down here are not high, what would have been a huge negative for the markets in my view is if we had a blowout report, huge creation of jobs incredibly high wages made people worry about federal reserve coming in and raising rates again and again and again gained. that did noopt that "wall street journal" report yesterday moved markets really had a major turnaround people are still thinking about that, the other thing that people are thinking about, this morning, is donald trump's tweet of 13 hours ago that the
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conversation with china is smooth communication and good cooperation. this is trump talking about statement from china. people are focused on china down here. as the potential negative. jobs they say pretty good we like that maria. maria: all right gerri, in terms of of the jobs to come, about what are you going to be looking at in terms of what keeps this going? because, i think it is a fair point to say that, you know, if we're going to see a slowdown going to happen in 2020 during presidential election, this is the business president he has been focused so much on jobs, and if we see recession or slowdown in 2020 that will impact the reelection; no? >> if looking at recession in election could be fatal to president's reelection chances, but i think to john's point there is a few factors at play if really focusing on jobs numbers and unemployment and that remains low, that is how i think a lot of americans
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feel like do i have prospects for job if i need one if answer is yes a lot of americans feel good about that, and if hiring numbers come down a little bit, one of the key questions is is it because we are seeing the overall slowdown or is it because you talk to job creators all over the country, their number one complaint about economy right now the inability to fill jobs with skilled people, those are two very different stories. >> also tariffs dagen pointing out as well. >> i just want to point something out you don't need to have a recession in an election year, to lose if you are the incumbent, i point to president george h.w. bush the recession during his time in office, ended in march of 1991. people died not go to polls until more than a year and a half later many people still point to that recess as the reason that he lost. you can try to blame federal reserve, all you want but ultimately if you are in white house you own economy good times and bad i am not talking about a trump slump obviously
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is democratic slogan they are trotting out but i am talking about like any economic weakness in the next year could impact what who people vote for, almost two years from now. >> you are right daying snooen the president has been very critical of powell at fed president should be really be rooting for jay powell to get this right what he needs right now is a soft landing he needs, an economy that maybe slows down keeps unemployment rate well under 4%, and you know i think one of the lessons we get from day's report is that we could be heading towards something like that could be heading towards a slowdown puvent push up, up unemployment rate the big lesson from day's report is that, it does give the fed some room to slow down the pace of rate he says increases planned for next year. >> is that what you are expecting charles payne? >> you know so much of this stuff i think baked into the cake, i think we are ununderestimating the tailwinds from not only the
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tax cuts but business plans that have been put into place think about revision to third quarter gdp we saw business investment from 0.8 to 2 1/2% perhaps next revision could see it higher i don't know completely putting heads in the sand i don't see recession into next election, and the don't underestimate this economy, it is hard to get this ball to stop rolling may not roll as fast as it was before, in our case president trump was right to call out powell perhaps not publicly but to be worried about him overshooting. >> can i take on your optimism. >> third quarter gdp number 2.3 percentage points of the 3.5% was inventories a function of this anticipatory importing inventories ahead what have people expected tariff increases january 1, so if you look at the real growth in the economy, x-inventories
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third quarter just 1.2% retail sales x-good and energy that has gone incredibnowhere. >> what is going to lead market what was up yesterday fist stop costco, . % what is going to lead lululemon great number certain places. maria: bring in "varney & company" host stuart varney to weigh in good comments, stu good morning to you your reaction. >> first of all, we have a whatever charles had for breakfast double helping. >> my first reaction out of the box disappointing you can't tell me 155,000 new jobs last month anywhere near what i thought it was going to be i thought north of 200,000 easily, i think that has an impact on the fourth quarter growth rate, what is it going to be 2 1/2% 2.7% according to
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atlanta fed that is stretching it i think, bearing in mind that report so look at this, you've got second quarter 4% growth, third quarter 3 1/2% growth 4th quarter 2.5% growth maybe, i don't like that down trend just don't like. >> it we don't know that stu, come on you are throwing in towel too soon we are in fourth quarter right now we've got a holiday season that is -- upon us, everybody we talk to retail sector says going to be a blowout holiday, so you can't really come up with your fourth quarter until we see how it does. >> what is this role referral reversal i was cheerleader for trump tax cuts and growth aagendaa i think falling flat as we approach the end of the year i don't deny a great fourth quarter for the retailers holiday shopping i got it! but i don't think it is where it is supposed to be. maria: we leave it there i know you have a lot more 10 minutes' time we will be there watch "varney & company" top
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of the hour after "mornings with maria" with stuart and great lineup of guests more on november jobs' report right after this break. over 100 years ago, we were talking about the model t. now here we are talking about winning the most jd power iqs and appeal awards. talking about driver-assist technology talking about cars that talk and listen. talking about the highest customer loyalty in the country. but that's enough talking. seriously.
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maria: welcome back november jobs' report is just out economy added 155,000 jobs last month november anytime rate steady 3.7% lots of
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analysis this morning, and we are seeing a market, that has come back, on the idea presumably that federal reserve is not going to be as aggressive in raising interest rates, as we thought if in fact things are slowing down right now, lisa ericsson what is going to be catalyst in terms of stock market what is most important in terms of investing today? >> so we really see the balance of reward and risk as in the middle right now and so we think it is a solid economy, if we look both at top-down indicators as well as what is going on in corporate america everything continues to look solid even those there is a little bit of slowing in recent months, we feel good about the general transparentlying trajectory forward what you need the economy continuing to steer in mil course not too hot, not too cold we've got a made to level elevations as long as we don't get a big reset on things i think the labor market numbers today help confirm that, in that it was a
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nice shot down the middle of the fairway will be good. maria: let's take a short break then we the final thoughts from you are a all-star panel i thank our panel november jobs' report great job everybody we appreciate it we got the numbers out and showing this reaction, in the markets, that is real, stay with us, back in a moment. insurance that won't replace the full value of your new car? you'd be better off throwing your money right into the harbor. i'm gonna regret that. with liberty mutual new car replacement, we'll replace the full value of your car. ♪ liberty. liberty. liberty. liberty. ♪
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>> stay with us this weekend maria bartiromo wall street tonight 9 p.m. eastern with a big show tonight.
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we're talking if markets with with head of capital markets and sunday morning futures on fox news channel 10 a.m. eastern big show join me as we're live on sunday on fox news. have a great weekend everybody. "varney & company" start right now. take it away. >> good morning everyone. another jam-packed news day let's get right to the jobs report. only 155,000 new jobs created in november unemployment rate are holding at 3.7%. here's maybe more important news, wages average alley earnings up 6 cents last month that is only a .2% increase. i'll call that a addition appointing wage number and disappointing jobs number but we'll discuss it now how is this extremely volatile stock market responding to job numbers first of all dow industrial have reversed what would have been a 200 point loss of the open now up maybe 20 points no change for the s&p but


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