tv The Evening Edit FOX Business December 27, 2018 6:00pm-7:01pm EST
inheritance go for brochures and bumper stickers. david: that does it for bulls and bears *. we'll see you next time. take care. [♪] reporter: wild swings in the dow after yesterday's record-breaking gain. the dow plummeting 650 points. this on the 60 -- on the 6th dae partial government shut down. i'm jon taffer in for elizabeth mcdonald. reporter: a major turnaround for stocks.
the dow going as low as 611 points and turning around and ending 254 points higher. they say pension buying ways saved stocks today. the s & p ending higher by 21 points. all three major indexes in the green. apple which pulled the dow lower as well. we still have a very long way to go before the indexes are positive for the year. the dow is down 6.3% for the year. only the healthcare sector is positive for the year. up marginally for the year. a major turn for for the stocks. so excited the traders down here cheering the markets. john, back to you. jon: market swings, conflicting
economic data. bell:point scat strategist david nelson, the white house economic advisors spoke about the markets. >> we have a heck of a lot of reasons to be optimistic about the up side. i think those are better balanced now that the market moved back toward where it is now. he's trying to paint a rosie picture. to a large extent he's correct. but unfortunately you don't live in a vacuum. economies overseas are slowing and they are our customers. that translates to the top and bottom line here in the united states, especially for large cap multi-national as. for me the elephants in the room
is the federal reserve. it started, we know it's a policy mistake because they admitted it. within 24 hours they sent out the network president to talk back harsh rhetoric. jon: 8 hikes, a lot of hikes. >> this is the end of an experiment. we are rolling off a 3.5 trillion dollar balance street. but i think what the federal reserve underestimated, how long it's going to take. they want to offset this balance she'd in the next six years and i think it's going to take much longer. >> i think the fed has been easy for too long. there is too much blame on them. they are still at 2 1/2%.
i disagree with kevin. every economic statistic around the globe and its expectations have been coming down. we do not have the momentum to the up side. i think that's what you have been seeing in the market. the dow dropped 4,268 point in 14 days. so you will get a good rally out of that. i'm worried about what comes in january. >> i have got to take the other side of that. a lot of this comes from the fact that the fed operates from an obama-era mindset. they saw hot gdp number this year. and i think they went into auto pilot. and that's what the markets
didn't like. the biggest mistake they made was not starting sooner but the path will have to take a lot longer. jon: would you have liked to have seen this last hike take place at the first of the year? >> they are not hiking anymore. if the economic numbers come down, the next move is they will lower rates. the last hike thud not have happened in why? the 10-year should not have happened. i think the last part is a mistake. and i think another part of the problem is, you are getting too much rosie talk out of the administration as well as the fed that everything is going to be great in 2019 while a lot of the markets have been saying otherwise. you just don't have industrials and financials and european and
asian markets at 2-year lows and everything is a okay. i think we'll see you some recessions around the globe. i don't think we'll see a recession here. i am keeping fingers crossed it doesn't get worse. but debt and desits and leverage, that's still out there overhanging things? jon: do you agree? >> to a certain extent he's correct. china is in dire straits with the trade situation. but i think the media is almost complicit here. almost everything you pick up is almost an arm getten scenario. there was a really good news story from bloomberg talking about china rolling back 700 tariffs. 700 items. it wasn't even mentioned. i didn't see it anywhere in the
press at all. now you have got a government, half of it is dedicated to make sure nothing economically good happens the next two years. it's all about the election. and that's you can fortunate. there won't be a -- that's unfortunate. there won't be much legislation. just a lot of litigation. >> the next move might be down. i am hoping that's not the case. there is still a lot of things i can point to that are good this economy. i am find nothing trouble finding companies with a lot of free cash flow. even some tech companies are generating 10% free cash flow. that's something we didn't see in the last bubble. >> the last year we had $1.3 trillion of a deficit.
in the next year the first $500 billion of our taxpayer dollars are going to interest on the debt. that's a huge problem that not one person in either party is doing anything about. they are taunting the economic and market future going forward. if somebody doesn't stand up and do something courageous. and a guy like paul ryan how was dependent on, he's gone. if they don't address that eventually it will come home to pay back not in a good way. jon: when i go out in the street people's income is higher. average american's income is higher. when you go to main street america, it doesn't feel this way. >> i'm in my bubble look at my screen. the market is down 500-600 points a day.
and in fact main street is doing very well. it's likely to do well for some time. but these problems that exist, even the problems gary just mentioned they are very important problems. if we don't do anything about them, eventually it comes home to roost. it will catch up if we don't do anything about it. jon: sears is down to their last 24 hours with no biddered. they are facing liquidation. it's always sad to see an iconic brand like that. >> in some ways amazon is a modern day sears. sears was a legend. i remember the old catalog my grandmother used to show me. >> i spoke to the past ceo of walmart. and very simply, if you don't do anything about your future it will come back to haunt you. and sears did nothing to improve
themselves over the years. eddie lamb bhoart has been running sears-kmart has run it into the ground. and that's a damn shame because it affected the real estate market and a lot of workers. jon: coming up next, the white house is reportedly considering a bold move to stop american companies from does business with a pair of chinese telecoms. we'll be right back.
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christmas hoping to reach a deal on the border. democrats decided to go home. the democrat party is open think choosing to keep our government closed to protect illegal immigrants rather than protect the american people. the president needs to get 10 democrats on board. >> here is the problem we have. we have a problem with the democrats because nancy pelosi is calling the shots, not chuck. chuck wants to have a shot. i believe that. nancy is calling the shots. and they all know politically speaking -- i don't do this for politics. i do nothing for politics -- but politically speaking people want border security. reporter: but pelosi is pushing back, saying the democrats have offered the republicans three
options top reopen the government that includes funding for strong, sensible and effective border security. she says trump is using scare tactics to push his border wall through. and saying that democrats delaying the process. jon: rich edson is in washington. reporter: there are some signs of progress. the chinese commerce min city says negotiators from the united states and china will meet next month after what they describe as intensive phone calls between the two. these will be the first conversations since xi jinping and president trump met in
argentina during the g20. the u.s. and china have implemented tariffs of hundreds of millions on each other's products. china said it would lower tariffs on american cars and resume buying american soybeans. u.s. officials athey had be willing to extend' the negotiations between march 1. but reuters reports the president is considering an executive order that would bar u.s. companies from using equipment made by china's huawei and zte over security concerns. the u.s. and china also remain at odds over enforcing sanctions
against north korea and building limit installations in the south china sea. jon: do you think this bad quarter china just came off of, do you think that creates a different die ma'am knick the trade discussions? >> i think it has an impetus of make these negotiations. there was hope it would propel the negotiators to give ground. but we shared very little. the negotiating period began the beginning of this month and they are only getting down to sitting down now to have these discussions. jon: even over the holidays there is enough progress to substantiate these meetings. are you hearing that? reporter: they have had what they describe as intensive phone
conversations. usually you don't get on a plane unless you have a reason to in these types of discussions. if you have negotiators going to china or coming here from there. there it's a good line is a face-to-face dimension on this. jon: so you feel we are making progress? reporter: these negotiators have been at it for some time in is a long list of demand from the united states here. and these are issues that have been major problems in the u.s.-china relationship that go back well before the trump and obama administrations. jon: for more on the slowdown between huawei and zte, let's bring in allen west. >> good to be with you,. jon -- jon.>> when you start toe
new chinese fighterrer aircraft you will see they have a distinct resemblance to our f35 aircraft. when you look at huawei and zte. these are state-controlled companies. they are not private sector. the fact we are allowing them to put their technology and wiring and systems into the united states of america, it makes it easy for hackers. china has consistently been doing hacking of the united states and the military and our private sector. we have to start being tough on china when it comes to huawei and zte. many members on capitol hill have been calling for that. jon: do you think an executive order is the way to go about this? >> i think that's the way to get the attention of a lot of our private sector businesses. but you have to look at the
unintended consequences out there. how do we replace the systems that are already in place in the united states of america and how can we use american companies to backfill without causing too much of a financial constraint. but i think that we have looked at the chinese for quite some time. and they have not been fair tack towards. the theft our intellectual property and forced transfefers our technology. it's time we held them accountable. jon: timing is everything and this might not be the right moment for this. >> there are two things we have to look at. number one, you just talked about this last quarter for china. they saw production and manufacturing and industrial complex downturn. these are state-controlled
industries we are talking about. if china continues to have this downturn there will be more pressure on xi jinping. what they are backing on is the american people don't have the will or resolve to do everything for the long term. we dosing in election cycles in the united states of america. the chinese will white this out and they believe nancy pelosi and the democrats will cause enough problems for the president that he'll lose focus. so they are trying to hang on for the next couple years to see what happens politically in the united states. jon: there is a possibility after the executive action there could be efforts to block and obstruct it after he acts. >> without a doubt, you will have the 9th circuit court, which is the most of overturned court out of the west coast of
california to come in and try to block this action. but this is a national security issue and national security risk. that's how they should approach this executive order. when you look at a google that wants to do business with china and helps them restrict free speech. this is one of those things where the left, i think they will be on the losing battlefield if they oppose the president on blocking huawei and zte. jon: i agree. next on the "evening edit." house democrats are weighing the pros and cons of pushing medicare for all. stay with us. it's time for our lowest prices of the season on
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jon: just in time for democrats to take control of the house, they are weighing the risks of pushing medicare for all. it's popular with dems and voters but not so much with the swing states. joining me now madison jesse oto and nathan ruben. madison, what do you think? i think even among democrats -- even among democrats i don't think they will be able to obtain the support they need to pass medicare for all. if we look at what bernie sanders proposed, it will cost $32 trillion over 10 years. he proposed a tax hike that won't pay for it. it won't work. it's too expensive. jon: he's suggesting we
eliminate patent protection on medication which would minimize risks and future developments of medication. >> it would. there are a lot of plans bernie sanders and others have proposed that people will not support. look at the congressmen who have to pass this recognize they need the support of their constituents to win the election. everybody and their brother in the democratic party wants to run for president. a lot of them are going to have to go more toward the center to win their party potentially, but if they want to go up against president trump. >> i fundamentally disagree. democrats should be pushing medicare for all. they had their best night since watergate. they won over 40 seats. this is a popular issue.
this probably will be a litmus test. it's popular amongst the american people. over 70% support the idea of a single payer system. you shouldn't have to go broke or go bankrupt. any democratic candidate for president should take up that mantel. jon: i think what people worry about, do we have the capacity to do this? the view of it is wonderful. we all get healthcare. but the practicality worries me. >> it sounds like a utopia but this system works in places like the e.u. and the u.k. it's not something that is pie in the sky. we are the richest country on the face of the earth. everybody gets sick. we need to protect our people. jon: and we hear horror stories
from those countries. so madison, what's wrong with nathan's argument? >> it doesn't work. i know people from canada come to the united states for surgery and healthcare because of the long waits they have in their country because of the system they have. it sounds great in theory. free healthcare and college. but we cannot afford to pay for it. i just put a figure out there coming out from independent organizations, the libertarian organizations that did similar studies. they cannot afford what they are proposing. been their tax hikes which will be historic. we are overtaxed. we don't want to be taxed more. middle class people in this country can afford to be taxed more. it's insane and it's not going to work. >> we can get creative in the way we fund this program.
i think we should legalize marijuana. we should look at the fossil fuel polluters. jon: the revenue of marijuana doesn't come close from a thanks base standpoint. >> we are look at a $16 trillion difference. >> why do we always have money for endless wars and tax cuts but when it comes to healthcare -- >> where are you getting the $16 trillion extra dollars. >> we have to get creative with where that money comes from, but i think we can do it. if we set our mind to do something, we can do anything. >> but you have no plan how you would do it and neither do the democrats. jon: i'm worried somebody has their eye on our pockets.
>> they have already overtaxed us and spend too much of our money. we need to cut the waste, fraud and abuse, and we don't need less taxes. look at how inefficient the government is in other areas. i don't trust them with this. we need to cut it down, not build it up. >> government has a role to play. the private market will just rip people off. jon: how much can they handle. this is a hot topic and it will be a hot topic in 2020. we won't decide it today. american people will decide it in the next election. coming up, a potentially no deal brexit has business leaders losing confidence in the
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[♪] jon: now to indonesia where more than 400 were killed by a tsunami triggered by a volcano. gregg palkot this london with the latest. reporter: this a new threat from the volcano which has already done so much damage in indonesia. officials raised the danger level to the second highest. that means it could threaten more towns and villages. the crac volcano is spewing outo much ash that planes are having
to be diverted around the area it was another under water landslide that caused the tsunami. 1,50 some injured. 160 remain missing. 429 dead and others homeless. the scene of devastation is even harder to deal with. the report says a knocked out bridge left six villages strand and isolated. the state of emergency remains in effect. questions begin to be asked why there wasn't more warning. volcanoes, tsunamis, earthquakes, or a combination of all three. in london, greg palkot. jon: britain is 100 days away from its scheduled exit from the e.u. but critics say theresa may has
no idea how to pull it off. consumer confidence has dropped to its lowest level in 18 months. kelly, what's going on? >> they are very, very depressed in britain this time of year. they are a little bit cold. but the markets hate uncertainty. but there is no certainty at all in britain about what will happen the end of march, 2019 when britain will be leaving the e.u. theresa may decided instead of making plans for a no deal brexit she would rather negotiate with the european union which has been hostile to britain. they have not wanted to november one inch. theresa may let it happen. she brought it to the house of commons. even her own party said we are not going to vote for this. she faced a no confidence vote
and almost lost her premiereship over this. things are a little crazy over this. so markets are looking bad there. i don't worry too much. remember the night donald trump got elected in america? the markets started tanking. and the very next day they started picking up again. we see a lot of volatility in the united states the last through days so we may see some of that in britain. but i don't expect to it last forever. >> there were discussion of a transition plan and that fell apart? >> business confidence in the u.k. started to pick up when there were talks of a transition period. but then some of the details started to leak out about what it would mean. some of the details were good, and some were bad.
in some cases the transition period looked to be exceedingly long. during the transition period britain would be forced to follow all e.u. rules but have no say in changing them or how they were put into play. britain voted to leave the european sun why because they wanted to have more say, they wanted to have more sovereignty. a transition period that kept all of the rules but gave them no say. zero sovereignty over economic matters to them. at first the transition period looked like a good thing. but once the details came out, people started to back off their optimism about that as well. jon: what is the biggest fever consequence they are having? >> there are so many. one is the back stop. will there be a hard border or soft border between northern and
southern ireland. it's part of great britain. the republic of ireland is separate. the republic will remain in the e.u., northern ireland will not. there are a lot of questions on will they let northern ireland be part of the single market? what will that mean for goods that come back and forth between england, scotland and wales and northern ireland. uncertainty is one of the things business leaders and markets had it most of. they have thanked 2 1/years to discuss and get a deal -- 2 1/2 years to discuss to get a deal on. david cameron resigned because he did not want the united kingdom to least e.u. and theresa may was remainder. she was not in support of brexit. you had somebody going in who
was not enthusiastic about the vote to begin with. because of course the e.u. doesn't want to give britain a good deal because they don't want to encourage other countries to leave. they want to make it as harsh as possible. jon: kelly, thank you very much. a moderate democrat senator offering a stern warning to alexandria ocasio-cortez and the party's hard left. we'll be right back. ♪ what a year. your home improvement "to-do list" still isn't "to-done". but hey, at least you still have time to get the ford vehicle you've always wanted. just get to the final days of our holiday sales event.
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jon: outgoing senator claire mccaskill is warning alexandria ocasio-cortez and other democrats not to anger working class white people with progressive agendas. nathan rubin is back along with stephanie hamil. what do you think of that, nathan? >> she is a devoted public servant. but when you look at
congresswoman elect alexandria ocasio-cortez's policies, they would benefit white working class americans as well as minority americans. the policies themselves don't discriminate. a rising tide lifts all boats. i think that's what alexandria ocasio-cortez is trying to do. jon: do you feel that progressive loud voice will be helpful? >> this is interesting. ocasio-cortez pulled off one of the greatest upsets in 2018. i don't think she needs a lecture from air clare. i disagree with ocasio-cortez on most of of the policies she is pushing. but she is an honest politician. what you see is what you get. she certainly doesn't need to
take advice from air clare. jon: do you think the volume of her voice is serving the middle of the party well? >> she is definitely on the left of the party. she does have a loud voice. but i think that's bringing new people into the process. if you look at the way she mastered digital media and using instagram videos to give people insight into the chambers of congress. voters should be adopting her ways and strategies to engage the younger population. jon: don't you think the upset drove her awareness more than her own policies and positions? >> i think she is a unique person, unique person on the scene. she is unabashedly.
free healthcare, the green new deal to get us off fossil fuel and save our planet. those are in line with what the next generation wants to see. whiled the upset drew a lot of attention to her, she is use her platform to drive a message and she is doing that successfully. jon: do you think it will reach middle america? >> it may not fly in missouri, but that's why we have different people representing different districts. that's why they are electing leaders from their communities that represent those districts. ocasio-cortez is from queens, she is not from missouri. jon: do you think moving this far to the left will serve well in 2020?
>> no, i don't think so. but this all about her district and the people who voted for her. that's who she is representing. it's interesting to watch these establishment democrats. they are uncomfortable with her presence in congress. you can see that. she is everything they talk about but they don't execute. ocasio-cortez is able to get that energy from the base. they support egg she is doing. and it was fascinating to see that conflict between her and nancy pelosi not too long ago. it won't be helpful in 2020, but ocasio-cortez, what you see is what you get. jon: it looks like we have another disrupter in washington. >> one of many. jon: coming up. president trump is slamming the democrats over the wall. details next.
>> president trump attacking the democrats over the wall, tweeting today, border control agents want the wall, democrats say they don't want the wall even though they know it is really needed, they don't want i.c.e., they don't have much to campaign odo they. >> open southern border and large scale crime that comes with such stupidity. with us sheriff mark daniels and
county in arizona. >> james, what do you think of the tweet? >> there are two things going on, one is, we could have a discussion about what we need for border security, and other is this partisan debate. people say, i want a wall or don't want a wall, this a metaphor for i support trump or a support the democrats, that not really what we need to do about border security. >> i agree, if we scld asked if you want border security we would get a different answer. >> right, washington wants a partisan debate, i have to be fair, i do believe that trumpments to secure the border. in terms of what needs to be done, you look at what president wants to do it is about sens see
border security. >> do you think did helps achieve the purpose? >> i don't know, but i will say, since president trump was elected two years earring, he had a clear message to protect americans and the country. a wall has been his fundamental way of doing that. now, as james said, i agree with there are 2000 miles of southern border, which is a crime scene in this country, where everyone day, have you smuggling. you have drugs, all controlled by the transnational organizations and criminal cartels that is not good for america and the country with high drug overdoses, and epidemics. so we have a problem, yee need a secure border, i agree with president trump on that, calm is rhetoric, calm -- call st rhetoric, call it words that ofencedoffend he has a message.
>> you are saying you are for a physical barrier. >> >> i am all about as a resident and a third year residence and law en gores a enforcement herex rodrigueaired --aids arizona border, the walmart is less highwall is hismeasure. >> he thought that schumer of getting closer to saying yes to the wall, he you that the that issue lied with pelosi. >> i am not a an expert on politics, he is right this is a power struggle between him and pelosi. that is fair. you know, the president said the wall, the wall, but in fairness
if you look at administration, they are doing so much more than just putting up a couple mile of wall. >> james, thank you, sheriff. and thank you all for watching, i'll be back tomorrow night, lou dobbs is next right here on fox business. >> good evening, i am david asman, lou dobbs as night off, top story, doin nothing congress rolls on. the border wall funding continuing to be ignored by radical dems. president calling out obstructionists who stand in the way of his commitment to ending the glow of drugs. -- glow of drugs to ending human traffics and his commitment from keeping violent gang members from entering the country. louisiana senator bill cassidy said that president's demands for border security need to be met. >> shod