tv Mornings With Maria Bartiromo FOX Business December 20, 2018 6:00am-9:00am EST
they have the decline of about 25 points. the s&p 500 is down 200. it's actually back and forth and now just turned negative. they are raising rates for the fourth time this year. we have a low low unemployment and strong growth. it has still remain just a touch below 2%. i do think that gives the committee the ability to be patient. there is significant uncertainty about the further rate increases. european industries are lower. it's down 1%. in index in germany at down about take a look.
the worst performer is japan. they are down again this morning. now 4640. the count down to the shutdown. it includes no funding for the border wall. we look at the following capitol hill. the major airport closed after drones first spotted over the runway. we have the are the very latest. prosecutors denied the latest request to ascend the courts are saying no to prosecutors. all the stories coming up this thursday morning. join me to break it all down. the assistant editorial.
great to see this morning. what a day yesterday with the federal reserve. the market in europe came off their lows. i think the same is true with the futures. i think the art date just seen what was a terrible message from jay foul. -- jay foul. in terms of have the wall street journal done that. the leverage loan market isn't much better. the growth story is slowing even here in the u.s. >> when he was asked about the con -- quantitated e-zine.
have you thought about altering the pace of the balance sheet reduction. he said no, we have it. i guess if you want to take away the positives here. he thinks the economy is pretty strong. one thing you take away from this. he is ignoring some market signals. he have every reason to agree with the president that the world economy is slowing. it's not time for a rate increase. also it's funny,. >> you will never know. he answered that question adamantly. were just cannot do our job. we won't be swayed in any
way. how would we characterize europe right now. we will talk about that this morning. sonny perdue purdue is here. it would be a big three hours. it will raise interest rates for the fourth time this year. we haven't seen in some developments. has moderated somewhat over the course of 200018. i'll be albeit still a solid
levels. overall financial conditions have a tight. they been have been less supportive of growth. most of them expected the economy to continue to perform well in the coming year. many participants had expected that economic conditions would likely call for about three more rate increases we have brought that down a bit. and i think it's more likely that it will grow in a way that it will call for two rate increases. over the course of next year. it tumbled on the news. it is down 351 points. one and half percent. the nasdaq was down better than 2%. craig, good to see both gentlemen.
you to specific message for him yesterday. tell him about it. they hiked it without spooking the markets. after the initial wave of data that came out the markets weren't too want to spooked. they need a it's going to be data dependent. i felt like they moved from that semi annual hikes. the thing they needed. you guys had already discussed this is mine. i don't think they did a great job with this at this in the press conference. >> i'm over here questioning why it was there. the journal this morning the editorial board comments on the decision take that. perhaps mr. foul -- mr. powell
and the fed are right. it doesn't inspire much confidence. >> especially in the last ten years. they overestimated how while the will the economy will do. now with a relatively bullish outlook you do have to wonder where the economy is going from there. in terms of growth next year. you spoke yesterday. when asked about any indications for it. she have this to say. >> it has not seen the type of benefit from the tax cut and the type of momentum that is reflected in the stocks.
even in the s&p 500. the top 20% of companies accounted for 70%. it can for 9%. you have that reaction. i think you really hit the nail on the head. and we did have it to a half% growth in gdp. we have good growth in wages. it really is no inflation in the economy. we would all be thrilled. no one believes the story that is spewing out there. nobody believes that we are really get to grow to a half percent. depending on which side of the equation or on either we are going to grow or would not.
one half of one rate hike in 200019. it wasn't pricing in three or four so the fact that they came down to two. some signs of slowing down to your point most of those are overseas. they are not in this country. but nonetheless we went from a synchronized growth global experience six months ago to now kind of around the world it's the bright spot. see mecca there has been a real stress in the credit markets. there has been real liquidity problems in recent weeks. and as the journal talks about. the statement wasn't unanimous and we barely changed from the one in november despite all of this anxiety.
it is a one-two punch to the markets in the credit markets in the u.s. economy. and they walked away from that meeting yesterday. and thought why did jay foul see what we see. he did address what markets are doing. clearly most we talk about how the job is to take away the punch bowl and the in the financial party is getting going. it seems determined to take it away even when it doesn't get going. if you're guessing what he's thinking it is probably especially early in his tenure. he wants to establish the credibility that he is first and foremost a guardian of the value and the price stability. will find out whether he is overdoing it.
you can see him wanting to set the tone now. the two rate hikes next year. certainly a hawkish message. and i think he wants to establish that. and they do think. it was a deliberate response yesterday to donald trump's plea to not raise interest rate. i think they would be counterproductive and so they were. >> it wasn't just a donald trump who was talking about not raising rates it was also stand. in a whole -- host of people. there is a lot of reasons you may have not raised rates yesterday. i think they did want to establish independence.
is it the last four months. it speaks to a lot of people. he is looking at markets. let's get your final word here. you are an economist. you have to have models in place mckenna growth are you looking at in 19 and 20. we are worried you could see some correction at that point. the fed policy is going to affect that 12 to 24 months from now. there's can be a slowdown already. that's why people are saying the fed should posit. i think that's where they missed the boat yesterday. what you do now as an investor.
>> if to see what's going on. we've already had cash sitting on the sidelines. at this point were just not quite ready to do it yet. did you want to say something before i get to the christmas village really quick. we are to be there this morning all morning some good news there. thank you for weighing in. travel cast check this out. drones over the runway shutdown over the major airports. the bid to extend without bail was denied. it will have the very latest on this case coming up.
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you'll only pay $4.95. fidelity. open an account today. >> today is one of the busiest days for holiday travel. and millions of americans are facing severe weather. the eastern third of the country is going to be dealing with stormy weather. for much of the country. 77million people under some sort of flood advisory over the next couple of days.
another on friday. we will see some snow along the great lakes the winds are going to cause some travel problems. in the pacific northwest is going to remain active through the weekend. you will see the travel delays for the northwest on sunday. it looks like they are going to have a green christmas for the eastern third of the country with exception to maybe the great lakes in the new england region. beautiful sweater by the way.
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catholic airport have triggered significant flight delays in cancellations. the runway is that single runway airport. it's a busiest one. it is expected to reopen soon. police are now searching for the operator of that drone. a tokyo court in a surprise move rejected a request by prosecutors to extend his detention. they are appealing the decision. a nissan board member was also arrested. he was lured to tokyo but was taken into custody instead. he also is charged in connection with the compensation.
they are holding the annual marathon press conference. more than 1700 journalists are attending the event. the record is four hours and 40 minutes. that is the is back in 2008. he has praised the russian economy and blamed ukraine for provoking -- provoking the scandal last month. relations with the u.s. this should go throughout this the show. i will keep you updated. we have plenty of time. we will check in on that. let's get to that the carlos going story. maybe they are hearing the average from the west and from capitalist countries. apparently not. these two guys are still sitting in a jail cell.
this is very rare for the tokyo court to say no to prosecutors when they want to extend detention and i think it's reasonable to think that tokyo is looking at this reaction from around the world. didn't really have the due process that we have now. he's been detained for about a month. even when this court says to prosecutors you can detain him further without trial he still remains in custody while they appeal the decision. i think it's really disturbing and for mister kelly he needs a surgery on the back. it's kind of appalling from our standards of justice.
we want to be careful not to impose it on the rest of the world. but i think everybody deserves certain due process. >> what kind of judicial system throws you in jail without any charges because for the first two weeks when he was in detention and there were no charges. and let's just remind viewers of what's going on here. there was a movement that they were pursuing to merge nissan with renault. renaud. the french carmaker. in the japanese government in it like it. and certainly a lot of people with a nissan to not like it. the fact that he typically partakes in these board meetings digitally and then said i'm going to be on the video again. and they said no no no we need you here in tokyo. they lured him and tricked him to get him there they arrested him on november 19. neither can speak to their
family. it's just extraordinary. it's outrageous. i think people don't understand and they are surprised this is japan. the wall street journal is reporting. there is an upper rising going on. again, when the investigation was announced there were tears according to the wall street journal reporting. it doesn't go to the issue of a rule of law and due process. it does go to the issue of the ceo. i reported also. in terms of this. i questioned it right away. underreporting his income. we don't know if that's true or not. we do know that the ceo of the
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see that good thursday morning everyone. thank you so much for joining us. it is thursday, december 20. 6:31 a.m. on the east coast. they are inching higher this morning. indicating a gate at the start of trading. the s&p 500 is up four points. the nasdaq is up a quarter of a%. the bears and making a run after the federal reserve rose up. it raised interest rates for the first time this year. the markets showed some skepticism. the major indices look like this.
mitch mcconnell had some tough words for his democratic colleagues last night ahead of the vote. >> i'm sorry that they can put the partisanship aside and show the same good-faith flexibility that the president has shown. to secure the integrity of our borders and the safety of american families. the republicans would continue to fulfill our due to -- duty. we have to talk about a lot of things. the troop withdrawal. where did the money go in terms of the border wall. now in this most recent senate
bill. there is no funding for the border wall. i don't know necessarily where the money is gone. the things they voted for dhs that have much more money for border security at the end of the day until that border is secure. whether you want to call it border security or a wall. it is national security. i've seen them working with the mexican drug gains. it will be fixed. it's only going to get more difficult come next year.
you have the majority now for another week. that's right. as long as we have the majority let's push hard we have a. what's can happen in the house now. when this bill hits that house. there is no money in it for the board of all. i haven't seen the bill that senate passed last night. i'm not a member of this congress. what are the odds that we might get some kind of grand bargain on this where president trump gets his border wall and also we get more legal immigration.
>> the continual resolution will take us to february 8. where he is gonna make his case and take it to the american people. in getting rid of this ridiculous lottery system. the democrats are to take us up on it. they don't really want to back away with this. this is always a good arguing point for them. the question as he needs to sell this to the american people. i think he can. most of those issues taken individually. they pull extremely favorably. and hopefully they can encourage him to do that.
it already raised over $2 million for the wall and the last three days. your reaction to this. they want results. they have more veterans elected to this congress. i think a compromise can be have on both sides. i personally sponsored an interpreter to come here and we are a nation of immigrants but we are also a nation of laws. i think they will see veterans coming together in congress and out there. leading the country to start getting solutions that you're not getting from washington. about the golf on me page that was pretty interesting.
we have to ask about what the president is calling president is calling mission accomplished. he tweeted yesterday. the white house announces than that the withdrawal of u.s. troops in syria bringing 2000 troops home. it's not going over well with lawmakers. both sides of the aisle. watch this. >> the whole ground is not secure. isis is not defeated. i think seating but we had gained. the conditions do not warrant it in my view. the valuable ally to a lot of damage. we are giving up booze to isis to re- generate. and above all else. this is can be seen by iran as
asking week. what is this all about. >> can you imagine being a green beret officer partnered with the kurds this morning waking up and looking at each other with what's next. isis can come back again just like they did. it was generated when president obama just pulled out of iraq. you also had iran i ran on the border with israel. >> we don't understand that. we need to stay engaged in this administration. bring it to be engaged as long as iran is there. in an unhelpful way. then from a deal making
standpoint. what i really don't understand. this is the president's prerogative get something from turkey and iran and russia as a concession. may we will have visibility on it yet. i'm not seeing what we got for this. we just announced a pretty big arms agreement with turkey. it's really insufficient. i do think there is some popular enthusiasm for the rest of the world hefting more of the rate -- wait weight of security around the world. can israel manage without us there. is that a possibility that they would step up their presence in some way? >> israel can certainly take care of themselves. the iranians are building up on this border in a way that we never seen before. and they will need our
assistance and if the area completely degenerates in the chaos again. you have refugee flows. your member from just a few years ago. we are going to have to go back and it's can it be that much more costly and that much more expensive i think the bottom line is, we need to have more burden sharing. when america doesn't lead and is that much more expensive for our servicemen and women to go back and regain trust. >> that's why they called this a huge mistake. there is no worst thing that you can say over the deal that you made with the power vacuum created around the world. america at the beginning of the term back on the heels. >> thank you so much.
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president is tweeting this morning. getting out of syria was no surprise i had been campaigning on it for years and six months ago when i very public lay wanted to do it i agreed to stay longer. they are the local enemy of isis. we were doing their work. time to come home and rebuild. the president is responding to this debate over why he is pulling out. and he has said this in the past that he wanted the troops home. >> the maker of marlboro cigarettes is going to take that at about $38 billion. it would make it most the valuable companies out there. they had been looking for opportunities outside of this business.
they're also working on canada's -- cannabis infused products. they are surging this morning. up about 14% at last check. >> starbucks is offering a holiday deal today starting at 3:00 p.m. you can buy any holiday drink there for $3. or you can show the barcode. an e-mail that they sent to you. i can get my coffee now for $3 then. >> six dollars for a cup of coffee. facebook is under fire again. we have the details coming
aspect ventures is an early stage capital firm. typically when they start and get started. it could be three or four founders. with a new idea. the cofounder was the early investor in facebook. the issues around facebook i think are much more about what obligations they have and what their responsibilities are about privacy. i think that is a newer and newer challenge for technology companies as they continue to build their business. they are trained to identify
how they can take the new business models and still manage all the possibilities from that. >> i think it was a shock to a lot of people several months ago when the journals reported that facebook was sharing data with other companies. people didn't necessarily know that but on the other hand a lot of people he would think understand when they are enjoying this free service that they are sharing a lot of data and it's been used in some way. how big do you see the legal exposure. anybody that uses facebook has to know that the data is being used. i think that it was being used in a way that be useful for the users. >> are you watching advertising that is relevant to you. identify information to you as a user.
about all of these partners. they had partnered with. it appeared to be in violation of that consent decree. that they have struck in 2011. oftentimes you have these revelations. yesterday it was not. are we and a tipping point here where people are taking these things more seriously looking at possibly to the eu to start imposing bigger fines, what's the deal. i think the market has been watching how they had been handling these for a long. of time i think there is a building crescendo whether we hit a tipping point i don't know. i think the markets in general are more skittish. >> it has have a real impact on ipos and then we see a big year for the next year. pinterest is preparing for an and offering early next year.
tell us where you see growth and what your take is on all of these ipo for that year ahead. i think it's considering that ipo. there is some big and very successful tech companies and then we have a whole slew of companies that are coming along behind them. and really driving at the next wave of companies. >> they said yesterday. the ipo market is in such bad shape with globally 60% of them trading below the price for this year. that it could actually be closed in the first quarter of next year. like no companies in the public, she's very worried. >> they could sit on it in the month of january but then they will end up going public in the second quarter of next year.
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maria: welcome back. good thursday morning, everybody. thanks so much for joining us many i'm maria bartiromo. it is thursday, december 20th. your top stories right now. stocks are reversing course this morning, futures indicate a gapn at the start of trading. s&p is up a quarter of a percent, the nasdaq with a gain of 28 points. this after the federal reserve decision yesterday weighed on markets. take a look at the close, the dow industrials were down 352 points at the close, 1.5%. the fed raised interest rates for the fourth time this year. fed's chief jay powell standing firm against the president's criticism of the monetary policy. >> political considerations play no role whatsoever in our discussions or decisions about
monetary policy. we have the independence which we think is essential to be able to do our jobs in a nonpolitical way, nothing will deter us from doing what we think is the right thing to do. maria: global markets this morning are lower. take a look. fq100 down a fraction, cac down one and a quarter percent. the dax index is almost 1% lower. asia declines across the board. japan was the worst performer, nikkei average down almost 3%. we're watching oil as well. take a look. oil prices down again, despite saudi arabia reportedly cutting more production than expected. the price of oil light sweet crude down 3.5% at $46.53 a barrel. the senate passed a short-term spending bill last night to avert the shutdown. it includes no funding for the border wall. the bill headed to the house of representatives today. we're taking a look at the fallout on co capitol hill later
this hour. two dow components reporting earnings today, we bring you the numbers from walgreens and what to expect from nike reports. oftentimes these are market movers. nike's stock is up 8 and a quarter percent year-to-date. mccauley culkin reprising his role from home alone in a new google ad. we'll show it to you this morning. joining me to break this all down is dagen mcdowell, james frefreeman and liz pete. great to see you this morning. >> good morning. a lot to talk about. i don't want to see that movie. it looks so harsh, you know. >> they're remaking it into an ad. you don't have to watch two hours. you get the story in 30 seconds. >> excellent. maria: and him to. dagen: it broke the internet yesterday. >> no kidding. dagen: it completely broke the internet. it was that a. maria: today is the busiest
travel day for the holidays. we're coming down the mountain in terms of the big holidays next week, coming up this morning. joining th conversation, the cef eli lilly is here. and allen patrikoff is with us this morning along with the host of "varney and co.," stuart varney joins us as well. we kick it off with this top story, fighting for america's hardland. president trump set to sign a new farm bill legislation today. it will be the first time since 1990 that a new farm bill will be passed in the same year it was first introduced. the $867 billion bipartisan legislation will provide a aid for farmers hurt by natural disasters and the ongoing trade dispute with china. joining me now is u.s. agricultural secretary, sonny perdue. thank you for joining us. >> good morning, marie y glad to be with you. maria: talk about the farm bill. what's most important, what do we need to understand most about this? >> i think, again, let's give
the peace of mind to our producer whose have to make plans for 2019 regarding their cropping history. it's an evolutionary bill. it was a good bipartisan vote in congress. while we didn't get everything that we had hoped to get in the bill, it's a very stable bill for agriculture and for the consumer as well. maria: i want to go back to the tariffs. there's a lot of debat dearounde president's -- debate around the president's tariffs. farmers took a hit. that's why we see the bailout. some people say the farmers need a bailout but what about the companies that need steel and aluminum, what about the media industry, what about the banking industry. are we going to be forced to give bailouts because of the president's tariffs? >> i think, again, the farmers were directly hit. these were the major customers that charged the retaliatory tariffs here. they couldn't plan for that in the spring. i think they're entitled to it. the president fulfilled his commitment to do that.
there's nothing planned for 2019 regarding what your so-called bailout there. i think it's entirely appropriate for 2018 as they saw markets disappear. maria: what about making the tariffs disappear? >> we would love to do that. the tariffs are not induced by the u.s. these are retaliatory tariffs from china primarily based on bad behavior that the china is tying to get their attention about. i think he is. maria: they're retaliatory because the president instituted tariffs on them. >> that is tru true. the farmers were caught unaware. they planted crops and looked forward to selling them to the customers. that's how that came about. maria: the tariffs have been really this hot button issue. it goes beyond just the farm belt. people are seeing margins get squeezed because of the cost of
the retaliatory tariffs which come as a result of the president putting the tariffs on steel and aluminum. is there any conversation happening now that the president will back off or reverse these tariffs, given the fact that it does appear that they are impacting the business climate, uncertainty, companies are now sitting on cash again, uncertain of what the tariffs are going to lead to. >> maria, you of all people know that china has not played fair for a number of years. the transfer -- maria: that's true. >> the unfair transfer of i thinintellectual property, thiss the president that had the courage to call it out. there will be temporary pain agriculture and the economy. he's gotten china's attention. we are in discussions with them right now about how we can resolve this issue. there's got to be structural, fundamental reform from china in dealing in world trade. maria: it's a fair point, sir. i totally understand what you're saying in terms of china. but these issues are so big, the theft of i.p., the forced
transfer of technology, the fact that they're unwilling to open up their markets and i haven't even gotten to espionage yet. that's a whole another ball of wax. does the president really believe that he's going to be able to change this kind of behavior with tariffs? >> i think the president does believe that. i think it is having some effect. china's market is down 33% this year. maria: that's a good point. let me ask you this. this legislation is removing hemp from the controlled substances act. lealegalizing hemp production. what impact is this having on constituents. >> if it's a profi profitable cr agriculture, they will participate. this is an industrial use product, as well as other products. we look forward to developing markets for it. if it's a profitable crop, agriculture needs new products. we've been productive in
soybeans and corn. we're looking for markets worldwide to sell those. this is a product that can be utilized throughout the economy. it will be good for agriculture and the economy. maria: what about food stamp reform. the agriculture department proposing states restrict food stamp waivers in areas where the unemployment rate exceeds 7%. the national unemployment rate is at 3.7%. what are you hoping to achieve? just lessen the pressure on those high unemployment states? >> well, we're hoping to facilitate people back into the workplace. during the great recession, obviously americans are generous, they're compassionate, we had waivers. this goes back to the integrity of the 1996 bill where president bill clinton said this is a second chance, not a way of life. unfortunately, it's become a way of life for some people who got in need during the great recession but haven't gotten back into the workplace. when you have more jobs than people, america needs workers. this is to help facilitate them back to the dignity of work.
maria: what can you tell us in terms of prices? we've been watching for inflation. we haven't seen any real inflation on the producer level or the consumer level. but there is conversation out there in the c-suite that margins are getting squeezed because input costs are going up. what are you seeing? >> i think that's true in agriculture as well. we do see input costs and margins are squeezed. in fact, probably negative in many crops today. that puts a lot of duress and stress over working capital and equity in the agriculture community. that's why the market facilitation program was important to agriculture this year. maria: how worried are you about that? has it gotten to an extent where you would be worried about prices moving too fast, too high? >> we're not there yet. obviously we're not back to the dire circumstances we saw in the early '80s, although we are seeing working capital being depleted. we're seeing debt to asset ratios increasing and we're
seeing difficulty in profitability and that's the sustain ability of agriculture depends on being profitable, just like any other business. i don't think we're -- we're seeing input rising and that's squeezing margins. we have to be concerned, if the trend continues, we will become alarmed. maria: thi impact of the farm, how significant will it be. tell us the practical impact you're expecting. >> it's huge from an emotional standpoint, from a psychological standpoint, but this provides the peace of mind for our farmers for the safety net. farming is a very risky business. most of us know that. they put the spring in the ground, hoping for a good crop. we've got rain, hail, hurricanes, floods, droughts, all those sort of things. farming is a risky business. this farm bill provides a safety net for those things that happen when people cannot help it, and they've done well, but things happen. this is a safety net for prices
and production to support that. i think good ag economy is good for national economy. food security is good for national security. maria: for sure. secretary, it's good to see you this morning. thanks so much. >> thank you. maria: we appreciate your time. we'll be watching. coming up, funding the government for you now. the senate moving to avoid a shutdown, placing the president's border wall in question. we've got details next. home alone is back, google puts a new twist on the beloved holiday movie. story coming up. back in a minute. ♪ i want your loving, i want your revenge. ♪ you and he m me could write ad romance. ♪ i want your loving, your revenge, you and me could write a bad he romance. s to examine it opportunities firsthand. like a biotech firm that engineers a patient's own cells to fight cancer. this is strategic investing.
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funding bill to fund the government. the measure kicks the shutdown deadline down the road until february 8th. the bill provides $1.3 billion for the border wall. that is far less than the $5 billion that president trump wants. majority leader mitch mcconnell says it does keep the debate going. >> faced with this, with democrats' failure to take our borders seriously, republicans will continue to fulfill our duty to govern, a simple measure that will continue government funding into february so we can continue this vital debate after the new congress has convened. lauren: now it goes to the house for a vote. the deadline to keep the government open, midnight friday. as in tomorrow. great by taken is gearing up for a no deal exit from the union. troops are on stand by in the event parliament doesn't reach a deal to get great britain out of the european union. businesses are watching in
horror. the prime minister scheduled a vote in parliament for mid-january on her plan. failure to reach a deal could complicate a range of issues including trade and security. former president obama playing santa claus at the children's national hospital in washington, d.c. there he is. not only did he bring presents for the children, but he also delivered this message to staff. >> to have nurses and staff and doctors and people who are caring for them and looking after them and listening to them and just there for them and holding their hand, that's the most important thing there is. lauren: he also stopped by the individual hospital rooms to see the young patients and one little girl got to snap a selfie with the nation's 44th president. isn't that the best? that's really cute. that's awesome. maria: he needs a big red santa suit and the belt. dagen: he looked very thin, didn't he, for a santa.
having spent so much time in the last four and-a-half years at a cancer center, there is nothing more heart-breaking but reassuring about human strength and to see children suffering, particularly over the holidays, like i think that that speaks to everybody. it made me -- it makes you want to go out and do something and give back, even if it's just delivering candy canes to children in a hospital ward. maria: it's beautiful. coming up, the federal reserve's major decision, the central bank raised rates yesterday, sending stocks lower. we talk about what it means for the bottom line, up next. partying hard over the holidays, pedialyte has a new drink that may make your hangover a little better. wait until you hear this. stay with us. ♪ don we now our gay apparel. ♪ troll the ancient yuletide carol. introducing add on advantage,
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all of which helps you do more than your customers thought possible. comcast business. beyond fast. maria: welcome back. president trump just tweeted this morning. does the usa juan to be -- want to be the policeman of the middle east? they in almost all cases don't appreciate what we're doing. time for others to finally fight. russia, iran, syria and many others are not happy about the u.s. leaving syria, despite what the fake news says, because now they will have to fight isis and others who they hate without us. i'm building by far the most powerful military in the world. isis hits us, they are doomed. the president continues to explain his decision to pull out of syria this morning. markets are finding their footing this morning after the selloff on the federal reserve decision yesterday. markets are expected to be up today with the dow industrials
up 50 points right now. fed chairman jay powell detailed his outlook on the economy and monetary policy yesterday. >> most of my colleagues expect the economy to continue to perform well in the coming year. many participants had expected that economic conditions would likely call for about three more rate increases in 2019. we brought that down a bit. we think it is more likely the economy will grow in a way that will call for two interest rate increases over course of next year. maria: joining us now is chief investment officer, steven auth. we just heard from jay powell, two rate increases instead of three. a solid growth story for 2019, 2%, 2.5%, not going to be bullied by the president, not going to allow politics to get in his decision making. it sounded all positive. yet, markets fall out of bed. what was that all about? >> the markets are dominated by short-term players and they feel that the economy is softening. the middle syllable of economy
is confidence. and confidence is eroding very quickly. if you look at the underpinnings of the market, the cyclical names are down 20, 30, some 50%. the market is worried that the fed is going to make a policy mistake and the only thing that's going to satisfy the market is for powell to stand up there and say i'm not going to make a policy mistake. i think the cyclical sectors are telling us something and we're not going to hike unless these things get better. i think that's what he's going to do. i don't think he's going to hike. maria: markets didn't believe what he was saying in terms of solid growth story then. >> the market is wanting to look forward and powell and -- it seems like powell and the wonks at the federal reserve are simply lookin look backward. maria: you're questioning him too. >> i'm not questioning him. i think eventually he'll get to the right place. my view is he won't hike at all
next year. maria: you're not buying the rosy story. dagen: when he get to that place when it's too late? >> that's the concern. we have a backup on the garden state parkway because someone saw a bird fly by. as the cars back up, you run the risk of an actual accident. and i think he's flirting with danger here. if i were him, i would have calmed nature getcalm-- calmed . we don't have the risk of a systemic financial crisis. so even if we do have a recession, it's going to be more of a garden variety where you get a kind of tapping on the brakes, cutback in inventories, everything rebuilds and you go from there. we're not going to have a financial crisis. i look at the market and say it's almost discounted. maybe we have another 10% downside, even if a worst case scenario where he doesn't get his act together until mid-year. we're still long the market on a
one year view, on a three year you view you've got almost no downside off these levels. maria: three year view, know downside in stocks? >> you'd have to have systemic financial crisis to take the system down and you simply don't have that. everyone has got the backdrop of '07, '08, '09, i remember that was a scary time. that's the backdrop that everyone has and so they're thinking recession means systemic financial crisis. and the cyclical stocks to me are already trying to discount. we have a lot of names we like that are down 50% right now. >> what do you think the consumer looks like? is the u.s. consumer as positive an element as it has been? >> the consumers -- the consumer spending and corporate spending, in the corporate spending it's earnings, earnings are good. and consumer spending is driven by jobs. jobs are good. the underlying basics here look
good. the confidence element is people are observing what's going on in nature get and thinking what does it know that i don't know and at what point do the cfos start saying look, i know earnings are good but you can't spend the money next week, i'm sorry, i'm holding it back. you're getting this tapping on the brakes. i think that's actually happening right now. if you listen to the earnings calls, that's what's going on. >> we've been talking about how he doesn't want to be seen as bending to president trump's will. also, you remember when he came into the job people said he doesn't have the academic economist background some people have. he was for much of his career a wall street guy. is part of this do you think him saying i hear a lot of noise from wall street but it's temporary, fundamental economy looks good? >> i think what you're highlighting is something i was thinking about last night was '87 which i lived through as a young investor. mid goodness, one of the problems with the '87 crash, the reason you had it was that you had a new fed chair who was
starting to hike rates and people weren't sure why he was doing it or what he was doing. and that's one of powell's current problems right now. no one's been able to observe him long enough to answer your question. i think he's a reasonable individual and i'm almost certain he's not going to hike next year, given the current situation. maria: not at all? >> i think it's highly -- maria: you think there's a 30% upside for stocks right here? >> oh, yeah. maria: over the near term, the next year. >> 12 month view. there's no way now given the technical damage, there's no way the market has a big rally in it between now until they get a signed guarantee that we're not doing this rate hikes. in other words, we're going to need a couple of -- >> that's a long time. >> we'll need a couple of months with pauses. we're going to need the actual trade deal done, probably in -- i think the first quarter is going to be turbulent because until the market actually sees that this stuff is going on, it's not going to rally.
again, i feel like the downside from here is 5, 10%. it doesn't -- the cyclical side of the market's already been hammered. and we don't have a systemic financial crisis. the banking system is fine. maria: all right. we'll leave it there. a lot to talk about. great to have you. merry christmas, happy holidays. coming up, health care is in focus, americans are more concerned than ever about the price of drugs. eli limbl lilly chairman will wn on that. google's take on a classic christmas movie, they're out with an ad bringing back home alone we'll show you to it. back in a moment. ♪ the moon comes up and the sun goes down. ♪ we find a little fire at the edge of town. ♪ twist off, sip a little, pass it around. ♪ dance, turn the radio up. to buy or sell? with fidelity's real-time analytics,
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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 $1,250 credit on select models now during the season of audi sales event. ♪ ♪ ♪ this holiday season, families near you need your help. visit redcross.org now to donate. maria: welcome back. good thursday morning, everybody. thanks so much for joining us.
i'm maria bartiromo. it is thursday, december 20th. your top stories right now, 7:3. we are heading higher this morning, stocks are showing a gain at the start of trading, futures indicate a gain of 30 points on the dow jones industrial average, 4 points higher on the s&p and the nasdaq is up 19 points this morning. conagra is coming out with earnings, beating expectations, hitting the screen right now. major indices yesterday, it was tough day on the federal reserve decision, the fed chief chose to raise interest rates for the fourth time this year. jay powell telling us what this upcoming year will bring. >> many participants had expected that economic conditions would likely call for about three more rate increases in 2019. we have brought that down a bit and now think it is more likely that the economy will grow in a way that will call for two interest rate increases over the course of next year. maria: yet, markets sold off on the pres conference.
in europe, markets are down. cac is down 70 points and the dax index is down 102 points. asian markets lower overnight across the board. worst performer japan, nikkei average down almost 3%. earnings alert, dow component walgreens boots alliance out with better than expected earnings. nike is also a dow component, they're expected after the bell tonight. we're watching both stocks. they are going to dictate where things go. walgreengymboree may close mostr stores. they're filing fo chapter 11 bankruptcy. looking to expand, we will tell you about pedialyte's latest push into the adult market this morning. plus, he's home again, alone, mccauley culkin reliving a christmas classic with a little help from google's assistant. we have a new ad to tell you about from google. featuring mccauley culkin. all those stories coming up.
president trump tweeted on the border wall this morning. here's what he said. the democrats who know steel slats wall are necessary for border security are putting politics over country. what they are just beginning to realize is that i will not sign any of their legislation including infrastructure unless it has perfect border security. usa wins writes the president this morning the rising cost of health care in america meanwhile meanwhile, americans are expected to spend $360 billion on prescription drugs this year. joining me right now is the chairman and ceo of eli lilly, dave ribs. ricks. want to get to this issue of expensive drug care but first, you were out with your 2019 forecast yesterday. you had a capital markets day telling the analyst community about what's in store for the new year. tell us about your expectations. >> we had a good meeting yesterday, down on wall street,
talking about all the launches of new medicines that have happened in the last five years, 10 new medicines for patients and what's ahead, 10 more in the next five years. this is driving our growth. we raised our guidance and had a good discussion about the possibilities in the pharmaceutical industry for investing in science and creating breakthroughs in areas like breast can p ser, diabetes, migraine prevention. maria: tell us about the pipeline in terms of the next 10 drugs you're planning in the coming years and where the growth is at eli lilly. >> the growth is happening in the newest medicines which launched in the last five years. diabetes, one of the most important diseases afflicting americans. it's common and we need better medicines for diabetes. lilly's producing those. a product call tru trulicity ise newest brand there. we launched a medicine for migraine prevention. 30 million americans suffer from migraines. they are eligible for a new class of medicines, there is one
that you take once a p month an. and breast cancers is an area we invested in, new medicines coming there, one we launched last fall. maria: the immunology growth story is picking up, and people are recognizing what you've got. in terms of the migraines, why is it largely women? >> that's a function of the disease. women usually during their reproductive years, that's where the most incidents are. it happens in menace well. about 80% of the sufferers are women in the middle of their life. they're working stage. even the more moderate patients who came into the study were having nine migraine attacks a month. can you imagine, almost 100 migraines a year. these new medicines, ours showed you can reduce those in half and some women even had no migraines in a month. so completely remising the disease. it's the kind of innovation we're investing in and things our industry can do when we invest in science, bring new
medicines forward. maria: this is a new set of diverse drugs. the new drugs are showing real diversity at eli lilly and the stock moved, you also announced a 15% dividend increase. tell us about the plans for allocating capital. >> our strategy is to first invest in the science, so r&d spending, we're one of the most significant spenders of r&d across all of america, almost 25% of what we sell we put back into our r&d. we are looking to acquire new medicines from biotech companies. we would like to invest in that as well. what ever's left at the end we give back in dividends and share repurchase to our shareholders. really our main goal is to build for the future. we think now is a great time to invest in these pneumodale at at this -- new modal at thises i. maria: you could invest in biotech or you could make an acquisition. where does that stand in terms of creating more scale perhaps through acquisitions. >> all of the above. we're not interested in large
scale acquisitions. we're interested in attracting new medicine intuse the pipeline that can -- medicines into the pipeline that can change the standard of care. maria: the fda today, the regulatory process to get a drug to the market, have things chainechanged in thereafter five years. >> we've seen good improvements at the fda, more consistent and faster. that's what americans want. they want new medicines now. it's good for our industry, to have a predictable path through the fda. the commissioner has done a good job. maria: they want the medicines now and they want the medicine toss be affordable. there has been a 4% decline in the number of people signing up for the affordable care act this year. what are the implications there? and what about the price of drugs? how do you get prices lower? >> this is something everybody wants to see progress on including lilly including our industry. what the debate is about is how to do this. it's an interesting situation. you have drug price inflation, just reported last year in the u.s., 0.4%.
so we don't have a drug price increase problem to the system. we have a drug price increase problem to the patient. why? because they're paying list prices and increasingly insurance design has patients paying full price for their medicines rather than the negotiated price drug companies have with insurance companies. that's really a core issue that needs to change. maria: the competitive landscape, i mean, is such that when you have a drug on the market that's cheaper, i mean, look, two of your competitors announced this week they're merging their consumer health care divisions. is that a way to get prices in a better state where you actually see companies coming together? >> maybe. that's a combination for over-the-counter medications, the kind you would just buy off the shelf at walgreens or cvs. really our business is prescription medications where you go to your doctor and need a prescription. maria: if you need a prescription and you're sick, you need a prescription for a cancer medication, you're talking about $150,000 a year. >> in some cases.
those are the costs. now that's because r&d is expensive. there's few patients with some of these conditions. and the way the economics work is cancer medications are paying for the r&d for the next cancer medications. the real issue is out-of-pocket cost for patients. and i want to just be clear. we're for change in that model. patients are paying too much out-of-pocket cost. so the administration proposed a number of ways to get at this including narrowing the spread between that list price and the net pricing. and we think some of those are good ideas. whether it be passing through rebates that your insurance company negotiates on your behalf, today they negotiate the rebates but mostly don't share them with patients. this is something we do at our insurance design for our pro employees. we think more companies should do that. or federal programs, a part d program which is prescriptions for medicare for seniors, pass on more savings to the patients. maria: are you expecting in terms of the new drugs we're
looking forward to in the pipeline, are you expecting regulatory approval for the nasal drug? >> this is an important drug. if you have diabetes, one of the biggest fear for patients is you will have low blood sugar where you get dizzy or pass out. it's dangerous. taking the rescue medication today is an injection, many steps, it's complicated. sometimes if you had type one diabetes, your child or your loved one would have to give that to you. that's scary. this is a puff to the nose. it's under review at the fda. we can't say too much about it. that could be a great new convenient way to have people rescue themselves. maria: how many approvals would you expect in the next three years? >> we are expecting as many as six in the next three years. so again, about two a year, that's the cadence we're on, great time to invest in innovation. the key thing is, we need to get these prices down for consumers, reduce their out-of-pocket cost. we're supportive of a lot of the
policies out there. we're anxious to engage policy makers to address the problem. maria: thank you so much. dave ricks joining us, the ceo at eli lilly. president trump just tweeted a moment ago. with so much talk about the wall, people are losing sight of the great job being done on our southern border by border patrol. izi.c.e. and the great military. remember the caravans, they didn't get through. border is tight. fake news is silent says the president. gymboree may close most of their stores. they're looking to find a buyer as it files for chapter 11 bankruptcy. we've got the details. and pedialyte not just for children, we will tell you about peed pedialyte's latest push ine adult market, that's next. ♪ sweet child of mine. ♪
maria: wam. jim bore reportedly looking for bankruptcy financing once again. lauren: gymboree shopping for bankruptcy financing for the second time in less than two years. the wall street journal reporting that the company would close most of its 900 stores as part of a bankruptcy filing. that could come in early january. it's also earmarked its well-performing janie and jack children's stores to put them up for sale. a bankruptcy loan would allow the company to keep some of the stores open while they look for a potential buyer.
if you're in need for a hangover cure after the holiday party, pedialyte can help. the popular children's drink is targeting adults with a flavored fizzy version called sparkling rush. peed ya light works to restore mineral loss in children who are sick. now it will be for adults. pedialyte saw growth during the flu season last year with kids as well as aadults. kevin mcallister is back. mccauley culkin reprising his role from home alone in a new ad for google assistant. >> mom? dad? google, what's on the calendar today. >> you have one event called house to yourself. >> oh, yeah. lauren: home alone. culkin recreated the scenes from the movie all while asking the assistant to set reminders for him. it's great. you've got to check it out. the best part is when he gets pizza delivered. google assistant helps him tell
the worker, keep the change, you filthy animal, which is like the best part of the movie which i'll watch again this weekend because it's been a. maria: thank you, lauren. he looks the same. >> he looks good. dagen: he looks good. again, it broke the internet yesterday, so -- maria: coming up, potential travel nightmares on the way. millions are hitting the road and the skies for christmas. we are breaking down any potential issues you and your family may be facing the next couple days. holiday cheer, we're taking a look at a town dedicated to christmas. the gorgeous scene, next. ♪ with a corn cob pipe and a button nose and two eyes made out of coal. ♪ ♪
♪ silver bells. ♪ silver bells. ♪ silver bells. ♪ silver bells. ♪ it's christmas time in the city. maria: christmas music, 'tis the season for holiday travel. a record breaking number of americans are expected to take the air, the road, the rails for the holiday season. cheryl casone has the christmas spirit this morning. she's live at the winter wonderland of the historic millemillerrage inn on long isl, new york. >> reporter: it's a beautiful pre-christmas morning out here. about 46 million folks will be flying. it will be a stressful time. lots of questions fro for my gu. let's talk about the most popular cities in the u.s. that are selling out ahead of the christmas season. i think l.a. is top of the list.
>> l.a., new york, orlando, atlanta, chicago, a lot of the usuals. cheryl: we're talking about more than 46 million people will be taking to the skies over an 18-day period. a lot of stress at the airports but there's some tips that forbes has that kind of tells us -- you say you pack light even at christmas. >> i'm a major advocate of packing light. it doesn't matter where i'm going or what time of year. carry-on is the way to go. i never pay to pack and carrying on you have less baggage. cheryl: they say avoid travel delays, avoid peak travel days and don't wrap your presents ahead of time. big emphasis on this. tsa will ruin your holiday. >> they'll get opened. they suggest instead to do gift bags or ship them in advance. cheryl: how early do you need to be at the airport? >> at least two hours. depends if you have tsa precheck
or not. i would rather sit around and wait. cheryl: i'm connected when i travel with apps. they say stay up-to-date with your smartphone when you get to the airport. >> have your app for the airlines so you can see if there's delays. if you're hitting the roads, i suggest waze. it will tell you alternatives if you need them. cheryl: top destinations for 2019. you said cuba and the azores. >> it's beautiful. it's off of portugal, under portugal's rule. there's so much to do there. there's miles and miles of just pristine coastline. it's a great people for people to get outdoors and do eco tours, kayaking, getting active and involved and there's great food. it's a great destination. you can get great deals there, under $1,000 for a 10 day tour and flights right now under
$700. cheryl: you say cuba is a good spot. you also say you like romania and nashville, tennessee, the finger lakes of new york, there's all kinds of good ideas. >> for nashville for christmas time and new year's, there's fun things happeingthings happenings and new orleans and jamaica. cheryl: you mentioned the bahamas, i heard i should go to sls and the bahamas and i did. thank you for being here. there's a lot of great places to go in 2019. we've got to get through the holiday season at the airports. maria: it's true. janice told us earlier in the show that it's going to be milder in terms of the weather than we thought. so maybe that encourages people to get out. thank you so much, cheryl and amy west. thank you very much. cheryl: we'll be back in a little bit with a surprise guest, maria. maria: surprise guest coming up. we'll take you back there as we celebrate the holidays.
bending problem, apple is admitting major fault in the newest ipad, next hour, "mornings with maria," right here. stay with us. ♪ you still look like a movie. ♪ you still sound like the sta stars. ♪ my god this reminds me. ♪ of when we were young. 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. ♪ ♪ ♪ ♪ what if we could turn trash into money?
plastic bank is doing just that, by exchanging plastic for digital credits redeemable for everything from food to education... powered by ibm blockchain. when you understand the potential of new technology, you can put smart to work. when it comes to managing your type 2 diabetes, what matters to you? step up to the stage here. feeling good about that? let's see-
most of you say lower a1c. but only a few of you are thinking about your heart. fact is, even though it helps to manage a1c, type 2 diabetes still increases your risk of a fatal heart attack or stroke. jardiance is the first type 2 diabetes pill with a lifesaving cardiovascular benefit for adults who have type 2 diabetes and heart disease. jardiance significantly reduces the risk of dying from a cardiovascular event... ...and lowers a1c, with diet and exercise. let's give it another try. jardiance can cause serious side effects including dehydration. this may cause you to feel dizzy, faint, or lightheaded, or weak upon standing. ketoacidosis is a serious side effect that may be fatal. symptoms include nausea, vomiting, stomach pain, tiredness, and trouble breathing. stop taking jardiance and call your doctor right away if you have symptoms of ketoacidosis or an allergic reaction. symptoms of an allergic reaction include rash, swelling, and difficulty breathing or swallowing. do not take jardiance if you are on dialysis or have severe kidney problems. other side effects are sudden kidney problems, genital yeast infections, increased bad cholesterol,
and urinary tract infections, which may be serious. taking jardiance with a sulfonylurea or insulin may cause low blood sugar. tell your doctor about all the medicines you take and if you have any medical conditions. so-what do you think? well i'm definitely thinking differently than i was yesterday. ask your doctor about jardiance- and get to the heart of what matters. >> welcome back. good thursday morning. thanks for joining us. i'm maria bartiromo. thursday, december 20 top stories right now just before 8:00 a.m. on the east coast, upbeat tone for markets futures a gain start of trading dow industrials up 55 points right now quarter of a percent higher s&p up 8 points a third of a percent in nasdaq 31 points higher up almost one half of 1% after federal reserve decision dragged down markets central bank raised rates, for the fourth time this year, markets, took off to the downside, during the press conference jay powell gave dow industrials down 351
pints, s&p down 39 points nasdaq down 147 points, better than 2% lower, global markets this morning look like this, european indices lower across the board, ft 100 down quarter of a percent cac quarante in a paris down one and a half percent zax in germany down one percent right now, in asia overnight, declines across the board, japan the worst performer, oil prices also lower take a look at this oil 46.75 a barrel down 3%, despite saudi arabia reportedly cutting more production than expected, then there is this shutdown showdown possibly avoted senate passed short term spending bill last night to avert a shutdown no funding for the wall bill headed is to the house facing backlash. >> i think that -- delaying it 6 weeks or thereabouts is not going to have the problem go away, we kick the whole can down the road, and without a solution, and we're just delaying the fight until
february, doubt until february that is unfortunate. >> fallout coming up maker of marlboro signatures an investment juul owner of company up almost % on news, then christmas gift from apple giant is making your gift giving easier this year, stories this thursday morning joining my to break it down fox business network dagen mcdowell, wall street journal james freeman fox news contribute liz peek. >> i think the markets rethinking the fed fit yesterday i think people saying earnings are up markets down let's take a look at some individual stocks, because storks pretty darn cheap. >> i like that analogy, that way to put it fed -- >> that is what it was yesterday. >> to your point, you see dollar weakening a little, maybe servers are not quietly sure whether it was hawkish or
dovish -- all of the the messages we got yesterday, but we've two months here to talk about government spending i know talking about the border wall hope they talk about restraining government spending has it gotten into rescuings on budget? >> looking for -- >> very good. [laughter] >> free pass, because of the weakness in treasury yields buying of treasurys, government one thing we haven't mentioned yet the possibility that president trump vetoes whatever spending bill, gets passed out of the senate, and up next the house because he said after that omnibus spending bill did not fund his border wall funded border fencing did not restrain spending ons sanctuary cities he said next would veto it unpresentabling that is surely a possibility may be long odds in every know. >> headed handed from some
base upset that he is backing down on border wall funding. >> they are hammering the president about that. >> mocking him even worse pushing to make a decision when may not be a is good decision. >> we watch that top story this hour with, raising interest rates federal reserve jamie jay powell founded fourth interest rate increase this year markets expecting interest rate hike went lower fast as powell gave a preview for the new year watch. >> we got low unemployment, strong growth, and inflation has still a remained just a touchi below 2% give committee ability to be patient moving forward, as i mentioned, there is significant uncertainty about the ultimate destination of any further rate increases. >> joining us right now morgan critique capital manager ceo
cio, mark what was so negative in jay powell's commentary. >> i don't think anything so negative in commontory we have become the group of hopeers right, everybody knew what he was likely to do, told us months ago he was going to raise rates, and that he was going to raise in '19 somehow hope that he was gonna say i am going to change mind crept into markets when he didn't do what they hoped, then people got -- >> as a he was saying solid growth markets selling -- of weren't believing things were all that great. >> i think the commentary about the balance seat the fact they are sticking to guns going to be you know, buying in that 50 -- 50 b's the president has been talking about i think that tanked the market too. >> we have been talking since september, together that, the market we believe the markets are really overvalued, we've got a long way to fall, we think a very challenging two
years. i think i think the economy starting to roll over hard, seeing numbers quite bad in housing, you are seeing a lot of companies, with forecasters outlooks fedex other day -- international trade there is a whole air now of uncertainty and kind of restraint of spending, didn't see as much capex didn't see as much as cash reupdapatriation are not happening going to play out like about 2001, 2002 this is kind of like about 2000 started off great tech bubble kindly of crashed kind of came back in to september but then rolled over down single digits like 2000, 2001 really bad year down 14% shallow recession people forget first quarter was negative, second quart positive third quarter negative one% growth for the year i think one handle next year gdp not two.
>> one percent growth next year. >> easy i think a disappointment in gdp every quarter for the next five or six quarters. >> corporate inventories in pretty good shape as you say we haven't seen lot of capital spending there is some sort of pentup spending there, consumer seemss extremely good shape where is the negative -- >>ss consumer starting to roll really hard one of the biggest things not being reported libor up 300% a on the every people have about adjustable rate mortgages going -- 30%. >> 2000 dollar morning 30% increase is huge delinquencies on credit cards spiked to 6% huge problems, and consumer loans student loans one out of three student loans -- you've got all these problems the consumer that looks good is just because of credit card spending now it is starting to -- >> wages going up job market strong that is not nothing. >> job market is interesting because what you've got you
have a lot of low-wage jobs being created, and a lot of people retiring from high-wage jobs, that is actually not the a good thing for overall spend pg. >> also, on capital spending story, you have not seen an increase we've seen huge increase -- >> even in third quarter, well above the capital spending of the fourth quarter last year tax cut was enacted. >> not just investing in plants and equipment you've had boom in investing in technology, because the services have i transition to do technology, in everything. so that hasn't slowed down. >> it hasn't at all the problem. >> investment in tech. >> the problem is those stocks really, really overvalued we got companies with triple digit p.e. ratios. >> business climate didn't have a run-up look at cloud stocks selling were selling 8
and 9, 10 times revenues not earnings. >> you said capital spending has slowed. and james said it hasn't i am agreeing -- >> from hope people thought it was going to really boom, it didn't boom like people thought it is definitely increased, but the real problem, as i see it is so much money is still going into buybacks companies are borrowing money, they are buying back shares that makes it looked like earnings here share growth but really -- >> earnings per share go up total earnings falling because we have to pay interest on debt. >> upping dividend payouts i am not -- sort of pushing back you are on one end of negative too i would say seems there are strong under currents in this economy really haven't changed. >> i think things are changing dramatically you are seeing in markets markets also a anticipate the economy, the fall before economy -- the markets have turned over hard since september. and i don't see any signs of
economic numbers being better than expected -- >> you are expecting one% gdp next year not expecting fed to raise rates. >> i think they will continue to raise rates, because, their job is to control prices, and inflation. and inflation still right around the target i think going to fall because oil prices are falling i don't think it you will be one percent the number. >> i think will be one handle sub2% the problem with gdp is nominal gdp working population growth plus productivity working population growth we know next 10 years is sub 1% no way to change it. >> you do nt to want us to buy stocks in u.s. you like emerging markets and bitcoin i know you of for a long time you said that how do you explain massive sell-off in bitcoin last year 20,000 now below what where are we 3,000. >> 20,000 i wrote about it tweeted about it told way too
high was double the value i said should you sell it shouldn't even think about coming back until the second quarter i admitted that at 6,000 i thought we've seen bottom 5900 i didn't think would get do 3,000. >> 4,000 -- >> we are 3200 one week ago, 3 00, on tv i said i really do think we are getting close to that bottom, i think, bitcoin next decade two decades is going to be massive story, the thing about bitcoin focus on price is not about the price it is ownership of the network this is going to be a global currency one of the global currency. >> i push back on that the volatility we have seen in price how can that be a solid global currency. >> when young look at u.s. dollar from 1776 to 1913 wild volatile, gold has fallen over time currency gold has fallen
60, 70% multiple times. >> people speculate trade and speculate that you are basically handing people a world of hurt because they don't handle it the way a long-term investor you talk about dollar but people are weren't buying on internet in -- >> nvidia down. >> much, much up one of the he best performing last two tw years. >> bitcoin best performing asset last two years three years five years of all assets. >> compare to nvidia that is apples and oranges nvidia has been up so much into it. >> bitcoin as well so that may be best performing asset a lot of people lost shirts. >> i agree with you, because there is a difference between investors an inspect you a inspect late or these investors bought when they understood revolution going on. >> intent 96 mobile net 2010 blockchain revolution bigger
the spectators always chase price the val of network is 0,000 dollars a unit back last september speculators to your point pushes prices to 20,000 anyone who bought that sat around thanksgiving table or christmas table last year bought it just because prices moving, yes, they lost money no question. >> the con themselves thinking they are applying for fundamental reasons, it is passion delusion. >> people that bought nvidia in september 260 dollars were speculating because price was moving. >> bitcoin why aren't we seeing bitcoin used? >> dagen: why are aren't any -- >> lots of merchants take it fundamentals of the network it is a network are improving every day look attub in transactions the daily volume 4.8 billion dollars, over 50 million wallets today up from if 20 million just two years
ago, so all the fundamentals changes possibly versus capability what is capability of 10-year-old, not that high what is potential of a 10-year-old really high, and that is o -year-old technology. maria: you are not you quantity to avoid u.s. stocks you say way overvalued. >> yeah. maria: you like he emerging markets but you like bitcoin. >> i love emerging markets think of been sold off i like to buy what is on sale happy holidays i love that outfit. >> thank you, coming up a major airport shut down after drones spotted over reason i way a gift at apple company making things easier for i we will tell you about it stay with us. ♪ ♪ there ain't nothing but ♪ ♪ at t. rowe price our experts go beyond the numbers
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term spending bill last night does not include funding for the president's border wall. >> good morning seven week stop georgia murder passed by senate keeping government partially funded through february 8 now the house will have to take it up it appears as if, they will bring it across the finish line though they will need enademocratic support to do that at a whether or not president trump would accept that, but he seems this morning to be laying out a new negotiating stance with it for 209, here is the tweet he sent out a while ago, this morning he said quote, the democrats who know steel slats wall are necessary for border security putting politics over country they are beginning to realize i will not sign any legislation including infrastructure, unless it has perfect border security usa wins infrastructure never got off the ground this year trying to he do a border wall
in 2019 would be dead on arrival if were attached to it a departure from if ceremony nearly one year ago when president said an infrastructure deem would be ease. >> infrastructure is by far easiest people want it republicans democrats going to have tremendous democrat support in infrastructure as you know i could have started with infrastructure i wanted to save the easy one for the one down the road so we will be having that done pretty quickly. reporter: set tweet aside for the moment talk about day upcoming days still awaiting from white house from president trump whether or not he will accept what is going on on capitol hill remember it was just last week that the president threatened a government shutdown should he not get the five billion dollars that he wanted for border security and for a border wall white house slowly walking away from that position, but, again, we await to see what the president will
do what is go -- >> we will see blake burman at the white house stay with us tomorrow morning i will be speaking with brian, a veteran raised more than 3 million dollars, in just a few days, for the border wall gofundme page we will hear from brian tomorrow morning joining us for that special interview drones over runway shutting down a major airport lauren simonetti with details. >> unbelievable drone sightings near gatwick triggered cancellations into this morning runway at gatwick europe's biggest single runway airport still closed police searching for operator of the drone gatwick directing incoming flights to another airport authorities say they have no idea when gatwick will reopen. >> this, the bank of england warning uncertainty over britain leaving european union intensified considerably over the past month, that warning
comes as great britain gears up for no deal exit from eu thousands of troops on standby, in the event that parliament does not reach a deal defense secretary is putting contingency plans in place as businesses watch, theresa may cascade vote in paramount for mid january on her he exit plan failure to reach a deal with eu could complicate a range of issues including trade and security. and former nissan chairman carl east ghosn closer to being released from tokyo jail prosecutors riling to extended have detention indicted on charges of under reporting compensation on nissan financial statement by 44 million dollars greg kelly a board member arrested with ghosn his attorney and familiar say kelly was lured to tokyo for a board meeting taken in custody instead kelly also charged in connection
with under stapting compensation may be released as well for christmas if you get ipad pro don't be surprised if it is bent a little bit apple has confirmed that some devices are shipping with very slight bend in them apple says due to the manufacturing cooling in the manufacturing process and not a defect. >> if you need a last-minute gift apple allowing users to get inapp purchases to friends and familiar policy he is first reported you can purchase from inside an app if you want. >> thank you so much. dagen: quickly say a something, maria bartiromo you are the first to point out, injustice in japan against kar carlos ghosn.
claas relotius wool greens earnings gerri willis floor that is dow component. >> that is right two dow components out one out already walgreens, a beat on earnings by tiffany's coming in 1.46 a share largely because of that rite-aid acquisition earlier this year so good news there, nike coming out tonight, so we are expecting 46 cents a share i got to tell you as you probably know maria this company typically beats on eps line watch for statements on china tariff concerns that is the only cloud on the horizon tonight altria owner of phillip morris a minority investment in juul into this why? you know as well as i do signature smokers declining to 5.5 million 016 loss of 5 million vapeors going up by times five seven million 201,
35 million 2016, philip morris will give juul access to retail space inserts into pack talking about juul product very interesting fda is targeting jiflt unfortunately -- juul. >> before the break, dagen you were talking about carlos ghosn we know that a tokyo court has rejected prosecutors' bid to keep carlos ghosn additional 10 days outrageous story so that i want to highlight you, brain gut rocket on this from moment one, has been so spot-on you spoke out about the injustice the appalling treatment of carlosgone, kelly not just nissan but by japanese government and prosecutor this
appears as you said to be an orchestrated persecution you have been undaunted i cannot say that enough. >> thank you for saying that there is incredible injustice i think now, increasingub in of people are figuring it out this was a coupe, we don't know if carlos ghosn did anything wrong in terms of under reporting compensation more will be revealed, having said that, they put him in jail, for the first 20 days, on no charges, and we know japanese government did not want nissan its jewel to be sold to a french company renalt the weaker financial, more is coming out on this story the things that i am hearing are outrageous and i expect that more news will be broken you will hear it here we will definitely keep on it until carlos ghosn greg kelly released from japanese jail coming up details between a
historic deal with kieban be able federation markets regaining footing this morning a bit only 27 points higher a sell-off yesterday sparked by fed's fourth rate increase next year we talk with founder managing partner big parent in markets, is here. ♪ ♪ 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.
markets futures indicating a again starting trading losing altitude dow industrials on gain of 10 points s&p up 3, nasdaq up 13 markets much higher an hour ago, the investment community digesting the fourth interest rate hike by federal reserve this year, yesterday, fd chief jay powell saying he believes there will be at least two more rate hikes in new year data dependent european indices lower on the heels of sell-off yesterday ft 100 down 18 points cac contact in paris down 78 points one and two-thirds percent lower dax in germany down 122 points better than 1% lower in germany asian markets across the board weakness there japan, down 2.8% on nikkei average, top story this half an hour market volatility, investors facing uncertainty in recent weeks over fed trade policy, global growth joining me right now cofounder of
greycroft managing director alan pet cognitiatricof. >> in terms of growth what we are seek on ipo calendar the usa first where you are seeing growth in terms of of venture capital. >> every place an example, in our firm, new york city, we've got approximately 100 to 150 new submissions every week, california office getting smog like 40 think about that the flow of deals over period of the year, and it is happening that way all over the country. maria: why do you think that is do people see a new optimism in terms of now, looking to raise money now, are the ideas different more plentiful why do you think. >> honestly i think an entrepreneurial surge going on in this country if you go to business school i he do often, make talks you say how many people are going to start your
own business 90% classes about to start a business, why? they haven't got a great concept they just are very excited about what they see, the last guy did, and someone they know graduated three years ago now got raised 50 million dollars just assume they can do it. >> i love this, i love this entrepreneurial surge you are talking about. >> across the board. >> what have you seen in terms of exciting new deals ways getting you excited. >> invest in company, icertis basic service managing people's contracts never thought all contracts we have sitting in drawers no i also being digitized people want to have access to and be able to compare, last 10 years a huge problem to big companies small companies went into a company recently osmosis, doing very
almost a academy for medical profession premed. >> -- very interested in the whole podcast world i think podcast is new media really sounds prosaic audio we all have been listening to you had a audible podcasts now i am sure you are listening i am listening to it we have two hottest podcasts dirty john and dr. death number one and two in the podcast hit parade. >> you say bright stars of the media industry right now, are you thinking this company the podcast company is at -- is you are invested in it does it go public? >> i -- you know when i started greycroft sorry to go back built apax, huge 2006 i decided act two would start go walk to roots start small
companies again. and i started, are one of the basic theses everyone doesn't have ipo in future the answer to your question such a small percentage of the companies that venture people end up of in public market they end up growing, and staying private, or getting sold to another company we have seen enormous, enormous purchase by other companies public or private, of most of the companies, however, i have to say as we weekend 208 ipo market now seeing more realistic back in the in my opinion an ipo in future many companies wasn't there 10 years ago. >> why? because you look at the first of all, got to be impressed with are ipo situation in 2018 and even expectations for '19 given the month of november and december expectations came down by the end of the year,
because things are going really well then the market conditions changed but you still are talking about a very strong slate of companies going public or about to launch, in 2019. even in face of wild markets. >> you know you had slack you have uber, lyft, a whole. >> asia airbnb. >> household names consumer related, and there is an excitement around now, not necessarily because the public market is good, companies will be around five, six, seven years not wrangled new every one has been talking about them the press every day, so that builds up a certain excitement we had i think we head 40 ipos of companies over a billion-dollar valuations. maria: that's right. >> there is a really underpinning in the market of a lot of companies growing. >> facebook was once a small company back in the day now it
has a privatization fallout legal issues social media giant facing first lawsuit over the cambridge analytica scandal i want your thoughts on this, because, washington, d.c. files a suit claiming the company failed to protect user data had weak oversight, have these companies become too powerful are they too big. >> it is a controversial subject we could debate this much longer than this program. i am concerned about the monopolistic position and i am using that word you know, in a generally way facebook, google, amazon, are very large companies, they control an enormous amount of spending of advertising, of search, you are talking about i think between facebook and google you've got 65, 70% of the only advertising goes through. >> google controls 90% of search should these companies be regulated differently? >> i think we should be
concerned we've got to figure out you whether they are companies that are gotten to a position where they may just be too big when i heard last week that amazon, this year, would sell 4 1/2 billion dollars advertising i didn't know amazon was in advertising business. maria: you are right. >> to me it is a direct to consumer play the big thing about the world "monopoly" in our history monopolies are countries that charge too much and could get away with it because you didn't have alternative, now we have these quasimonopolies lowering prices faster delivery consumer benefiting. >> google is 90% of search a monopolistic situation, what is your average valuation of the company you look at in. >> when at the stage. >> at yee venture capital greycroft how small are companies. >> range initial investments range from a million to 5 million, and over life of the company, about probably 7, 8,
maybe as high o would be high then a growth fund takes the next phase ez that will go from 15 to 30 million dollars. >> one of your investments is the wildly popular scooter company bird let's talk about that why growth here? >> first bird this is our growth -- fits definition we think last problem is a very exciting problem we are seeing all over the country, today, with bikes, and scooters are i mean an exciting have you been on a scooter yet? >> i have, everybody loves scooters no matter where you go. >> what is not to love. >> i mean a fun experience, as much as you may hear about one or two dens really a relatively safe business, and answering needs of the if you are going from 47th street to 57th what better way than staying in street waiting for a cab. >> i like what they did with new york city bikes city bike
program in new york city you are also a big major democratic donor you have a candidate. >> a politics? why not why not? >> you were pretty tight and strong over the campaign season for hillary clinton. >> yes. >> i am not sorry about that. maria: za will so i am just wondering -- >> what you think in terms of of the party today? >> i think that we have a very exciting democratic party there was an organization i was part of, called house victory fund, supported specific candidates that were running for the house, and i am happy to say i think out of 30 candidates that were supported by fairly large group of people concentrating efforts i think o -- 23, 4 of that 30 were elected pretty good candidates exciting i think we've got new exciting young people, coming from admittedly coming from previous experience, i think we are going to see very exciting congress coming forward. >> do you worry within
democrat partied there are real about socialists ocasio-cortez the face of it there are others earn bernie sanders want medicare for all dragging the centrists in a bad place. >> listen we are in a very early stage i think we are going to see a lot happening, in the next you know, invite me back three or four months i will have a better feel i am sure we have seen a lot of candidates, parading they get to new york, 70% of the fund-raising in this country for any candidate done in new york so they will be here. >> let me end where i began has regulatory environment backdrop some companies you invest in has it gotten better? is that why we're seeing this ipo slate next year even in face of tough markets is that why seeing entrepreneurialism, you know take hold, and soar at this moment in time? regulatory environment help? . >> young people and they are
not all that young people starting companies don't think about donald trump and politics. they certainly don't think about interest rates because -- >> raising money. >> that is all equity equity don't worry about interest rates they don't worry too much about the regulatory position now if you take like bird all kinds of regulatory issues, but that is a very you know narrow, most software start-ups direct to and consumer paenz are not facing regulatory problems. >> is it easier to raise money i am trying to understand why you've got incredible entrepreneurialism going on and it is -- higher than ever today. >> i think that is probably a good -- perfect question what happened is that because of the successes of private equity venture business we have been able to raise more from institutions. >> bingo. >> institutions making at least, five, six, seven 00 basis points better improvement on returns, in the private area so there has been enormous ground as well of
money into this area. >> yeah. >> and we have money, so we have money, we are -- you know, he hopefully being responsible, and careful about what we do do do due diligence not just indiskrim natalie but there is a lot more money. >> great point to make i know you are going to be special guest on wall street we will continue the conversation thank you so much alan patricof cofounder of greycroft. >> market looking at federal reserve decision to raise interest rates for the fourth time this year stuart stuart will weigh in next as markets show a gain on futures, then from to race traffic major investments in nascar back in a minute right here. ♪ .
maria: chemical weapon walk markets volatile take a look at yesterday markets soldoff 350 points after federal reserve raised interest rates, for the fourth time this year host of "varney & company" stuart varney to weigh in you said fed ignored markets. >> absolutely that is precisely what i think happened why jay powell did that i have no clue i am not inside his head he did ignore markets, mooern look at the markets the different markets' performance recently, you've
got oil prices, i've got to call it crash 46 dollars a barrel, 2000 stocks are at 52 week lows. very large number. world markets are way, way down. the yield on 10-year treasury this morning, is down to 2.76%, how is it housing market is in trouble. all of that was ignored by jay powell he is going with data which tells him things are pretty good. and they won't be so bad next year either a contradiction between what market seems telling us what jay powell did how that works out on the market day i have no clue. maria: welcome, markets a lot higher earlier looks losing steam here stuart. >> right. maria: message of the markets pof to focus on i know you have a lot more 10 minutes "varney & company" top of the hour after "mornings with maria," join satirist and great panel 9:00 a.m., first history in the making future
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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. sing. cuba and major league baseball reaching historic detail dagen on sports this morning dagen: yeah! deal allows cuban baseball players to voluntary join major league daemz without defecting on country focus on president trump if administration rolls back object era cuba policies deal could be dead from baseball
field, to the racetrack red sox owner henry reportedly looking into a stake in nascar portfolio included liverpool soccer club partnership with racing i say buy the whole doggone thing mr. henry whether we come back a live look at he retailers this season cheryl casone is celebrating holidays today in new york looking good out there. oh merry christmas my maria, this morning a very joyous day a great year for small businesses, with the trump tax cuts coming up we are going to talk to the owner a surprise guest joining us shh, we will be right back taking a quick break.
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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 swelling of the arms and legs and confusion. we spoke up and it made all the difference. ask your parkinson's specialist about nuplazid. ...i just got my ancestrydna results: 74% italian. and i found out that i'm from the big toe of that sexy italian boot! calabria. it even shows the migration path from south italia all the way to exotico new jersey! so this holiday season it's ancestrydna per tutti! order your kit now at ancestry.com >> we are just a few days away from christmas we're looking at the state of small business ahead of the new year.
cheryl casone is on location this morning, she's at the miller inch inn in long island. cheryl. >> i'm joined by, of course, owner of the mill ridge inn you know him well ceo of the dover group you have a thousand employees in the area several properties. good morning, merry christmas. >> merry christmas. tax cuts have they been good for business? >> business is up people going out to dinner and more disposable income. >> 20 pblght of your employees offered health care to, recently at this federal judge in texas, said that obama lcare was unconstitutional was that good news for you? j telling me that's a great thing because obamacare is really lousy. >> was it really? >> the big -- deductible and people are just like doctors and referrals and -- maybe have no choice again, that's good. >> consumers has more money to spend this year? >> absolutely. big parties all night -- >> butch has been with me all morning but i have a surprise guest because -- stakes in it earlier but
maria -- mornings with maria merry christmas to our fox business viewers. merry christmas. merry christmas guys. >> thank you so much. special thanks to santa claus all of the wonderful carolers been a great show and nice to hear the christmas music. final thought this is morning. james. >> great to hear from alan and entrepreneurial surgeon in this country. encouraging news, and a lot of hiring too. so that's good news special christmas. >> i'm waiting for santa and santa rally any minute now folks let's see the santa claus rally. >> sure to see santa claus rally five dayses end of the year and two days to new year. >> grounding error. >> one of the reasons are we love covering business so much is if you look at alan patrick investment companies my favorite
podcast company real real that's why we love because because again it is so -- interesting. incredible stories and growth stories. always searching for growth on this program. have a great day everybody. thanks so much for joining us phenomenal panel "varney & company" begins right now. stuart take it away. prchg good morning maria, everybody. federal reserve thinks economy is strong. they raise interest rates and will do so twice again next year. the market sees a weakening economy. perhaps a reare session, it sold off. big time. well that was yesterday. this is today. the market will open flat to slightly well, down 40 points maybe on the the dow. 18 on the nasdaq. there may be some reevaluation if the feds move today and market response to it, throughout the program, this morning -- we're going to ask is if this is now a buying opportunity or a signal to get out. now look at this. oil heading south a