Transcripts For FBC FBN AM 20180209

Cheryl the focus on all this is on the 10year treasury yield. Worries out of federal debt and Interest Rates, as you can see yield is 2. 84 . Lauren we had a hawkish tone from the European Bank yesterday central bank done are down across the board. The cac in paris is down half a percent. Cheryl in asia stocks slammed, nikkei down 2. 3 , in china down 4 . Lauren biggest leak in the history of apple. Someone actually leaked the secret source code for iphones of the worldwide weapon, fbn am starts right now. Cheryl 5 01 a. M. In new york, its friday, good morning, im Cheryl Casone. Lauren here we go another crazy day of tradeing, im lauren simonetti. The government has been shutdown for five hours, this is the second shutdown less than a month after congress failed to pass the spending bill in time, youre looking at nancy pelosi live pictures on the house floor where lawmakers are debating a bipartisan twoyear budget deal that the Senate Passed right now. And today we have an opportunity to do just that, all we have to do is unshrine the promise of going americans by passing the dream act now with one vote. We have a basic function here. Keep the lights on, the second if the constitution is preserve to protect our nation which means we have to fund our military but some felt is not necessarily a priority of theirs if they cant get the other things they want when they want them. So all of this after the senate sent bill to the house, this happened before 2 00 a. M. Eastern time, three hours ago. The vote in the senate was 7128. Now, the senate could not vote before the midnight deadline, meaning the government shut down because republican governor rand paul refuse today move up the time for the vote. Senator paul was protesting the cost of the bill and run away federal deficits after the vote 2 00 a. M. Eastern law the kentucky lawmaker issued statement. You could feel frustration and embarrassment growing in progress and spending free for all with democrats at the expense of the American People and in our party supposed principles. Lauren he spoke for nine hours on all of this. Another day of losses driving the dow and s p 500 officially into correction territory. Cheryl Tracee Carrasco has been covering the story all night. Good morning, s p 500 have officially entered in correction territory after yesterdays volatile day of trading, especially the last 30 minutes of the day when dow lost 400 points. Stocks spent much in the red and seem today spill over equities, dow ended 1,032 points or 4. 2 . The plunge marks the second steep decline after mondays 1175 point drop, however, in percentage terms neither dropped ranks among the 100 biggest day plunges on record. It hasnt been in correction territory at least 10 since february 2016. The s p 500 fell 100 points or 3. 8 , the 2,581 and also now down more than 10 from record close on january 26th, the nasdaq dropped 274 points or 3. 9 to 6,777 and is off 9. 7 from recent high on the 26th as well. Lauren the pain for all of this, we are officially in correction. Average decline for a correction is 13 percent and it lasts for quite sometime actually for several weeks, so four months to be exact according to goldman sachs, so buckle up, people, thank you tracee. Lets bring in gary from kapaum. Pelosi are voting on the house budget bill, you seem to side pretty aggressively with senator rand paul and fbiing us a trillion dollar deficit. Yeah, well, unfortunately thaw dont seem to care not one of them except rand paul is really talking about the problem and that is the longterm health of the economy. The fact is that a trillion dollar deficit is just adding to the other 21 trillion and as i mentioned this week, here is a little number for you, next year the first 400 billion of our taxpayer dollars is just going to pay down the interest, in four years 700 billion, thats money that should have been going to the kids and the elderly and the roads and the highways and the bridges instead its going into the toilet doing nothing, why, because of all the deficits theyve created over the last 20 years and unfortunately the people that created those deficits are still running the show. Lauren yeah, Mitch Mcconnell and Chuck Schumer to name two of them, right, theyve been in there positions for decades and the deficit has only skyrocketed which brings it to my next question, we had some of the biggest we have seen from highs to lows, we thought that was Interest Rate and inflationdriven, is it also or more so budget and deficit driven . I think its a combination of three things, number one that we went up 8400 points in 18 months, six or seven years of returns, too far too fast combined that we have not had a correction, i cant even begin to tell you when, i think we are long overdue, when you add in a lot of bullishness and when you add whats happening in washington. When the markets see that the right Mitch Mcconnell is basically turning into a highspending democrat, i think i think theres a lot of hoping loss and thats what youre seeing on markets here. All right, we will see what happens. Thank you for waking up with us. My pleasure. Cheryl asia stock markets really took a huge selloff. All sharply lower as we look, of course, again, live picture on the house floor of senate snort House Minority leader nancy pelosi as the debate continues, lets take a look at what the european stock markets are doing right now. They opened mostly lower. There has been pressure, Interest Rate decision there, checking Interest Rates, there are the European Markets an u. S. Futures here, of course, something that we are watching, there we go, to the upside, dow up 103, s p up 16 and nasdaq up 45 in the premarket. Lets dig in with mark and wealth consultant jimmy lee. Good morning. Good morning. Cheryl big part of selloff is borrowing costs, higher Interest Rates, will Central Banks around the world have to increase Interest Rates especially the Federal Reserve in the country, do you think the fear is justified by what we have seen in the market sell off . Its not a fear, we are reacting to new normal. Its down of this path of normalization meaning that we are getting back to precise sis conditions with Interest Rates so what i think in many ways is that as your earlier guest described a fairly rational response to all kinds of things which are all moving at once. Central banks are no longer putting gasoline but still putting fuel and markets are addicted to fuel being added. Cheryl we knew those moves were coming, we expected minimum, three Interest Rate hikes, but a lot of the analyst that is we have spoken to arent that concerned about the selloff. Well, we had liquidity fuel market in equities and as previous guest said we havent had a correction for a long time, early 2016 since we had 10 correction, that sentiment that was putting a lot of money in the market, making stocks go up, a little bit of god news and fears of inflation and here we are, in correction territory. Cheryl sure. Its not the end of the bull market in my opinion. Cheryl sure, these are the biggest point drop, 1,175 and yesterday a thousand 32 but on a percentage basis these are not by far the largest point drop that is we have seen and because of the fact that weve had the runups several of them in 2017. Yeah, absolutely. And here is an analogy, if you bought a condo here in manhattan for a Million Dollars two weeks ago you certainly dont want to panic and sell for 900,000 today or 800,000 next week or 700,000 a month from now. Investors need to make sure they dont panic, think about the longterm, i do think that one thing is important that theres a paradigm shift in bull market and bonds that lasted over 30 years as Interest Rates are going straight down, the paradigm has shifted, investors need to be cautious about that especially retirees. Cheryl depends on your timeline on where you are in your portfolio and your age. As far as economics of all of this and the fear that we are seeing in the markets with regards to borrowing costs, what kind of drag do you think that could potentially have on the u. S. Economy, weve had, you know, lower Interest Rates that rocket fuel that the markets have been running on but at the same time the average american may see credit card rate go up or Mortgage Rate go up on home loans. Sure, cost of borrowing have been rising and that absolutely adds to some pain for borrowers, lets remember that Interest Rates have been at record low levels, we have only begun seen Mortgage Rates to rise, thats feeding on through to credit card rates and the like, but we have a lot of positive things that are happening in the economy even as we speak this is a friday, this is one of the first paychecks that we will hit for people with the benefits of the tax cut and the economy is looking pretty good. Cheryl thats what we want to see. Sometimes good news is bad news. The president actually tweeted about that, guys, thank you very much, we appreciate it r. Thank you,. Thank you. Lauren as we continue to watch the futures which are higher at the poament, its also a late night for congress, youre looking at paul ryan on the floor right now, how congress is struggling to passing twuiyear budget deal. Do they have the votes . And being called the biggest leak inistry, the secret source that runs apples iphone has been made public, we will be right back lauren breaking news, we are waiting for the house vote on the budget bill. They are now voting, senior capitol hill producer fox news chad has been on the floor all night, long night just began for you, he joins us live now the latest developments, hey, chad. Yeah, this is the final vote on this project pact and moved to the senate and thats the problem, moved to the senate after midnight and the government ran out of money. You have 99 other senator who is we wanted to vote on this earlier in the afternoon, rand paul said we need to make a point here, we need to address the deficit spending which is added on by the budget pact. They didnt move it through after midnight and thats why its getting to the house of representatives in late hour or early hour. He made the case that he will, in fact, address daca, you might remember that this is one of the reasons a lot of democrats are not going to support budget package. They got a lot of Spending Priorities in this, domestic spending increases, things for opioid, opioid abuse, Broadband Internet in rural areas, those are important things to democrats, but daca is the big issue and thats why the Minority Leader Nancy Pelosi is going to vote against this, this is a vote thats they should have a result in about 20 minutes or so and if this passes the house and senate will take this down to President Trump to sign and this Government Shutdown will be put to rest even before federal workers report to jobs at 9 00 oclock in washington, d. C. Expect this to pass, but we will see. Cheryl chad, Many Democrats have been criticizing pelosi because they feel like they lost leverage when it comes to immigration, you mentioned daca, isnt that going to be a factor in the vote that we are seeing right now . Thats why theyll be a lot of democratic defections, you need about 150 republicans to vote yes, you need about 70 democrats to make up the difference, i asked steve scalise, the majority whip about an hour ago if this was going to pass and he said, oh, yeah, its kind of a dicey proposition when youre getting in to relying on the other side to help pass bills an nancy pelosi said, this is a compromise, not everything in the bill is what both sides want, thats the problem, we think its going to pass and the overnight shutdown will be put to rest. Lauren if it doesnt pass, is there a plan b, chad . It was something that Chuck Schumer and Mitch Mcconnell, majority leader in the senate thought they could advance, they advanced it overwhelmingly, pretty good vote in United States senate but if they dont they have a real problem and it was interesting in the overnight hours where you had Senior Republicans even john cornyn, republican when i whip, in te senate, youre responsible for shutting down the governor, republican from North Carolina accused rand paul of theater, we just dont shut down the government to make a point. Rand paul said thats what we need to do if people would stand up and address the spending issues, maybe that would get through people. You dont see on senate floor, maybe you should go out and get 60 votes on something and thats what you need to close something out in the senate. Cheryl thank you for your time and i know you want to get back in there, the house is voting, the Senate Passing the bill 71 to 28, lauren, we are waiting on the house with the final decision and maybe the shutdown which is 5 hours old will end. Lauren federal workers can know of that and show up to work in four hours from now. I have been watching the dow futures, we are up 100, now about 90. Any movement these days have been unpredictable to say the lowes. Cheryl volatile market. Also volatile overseas, we are heading across the pond, Scott Shellady will be joining us. We are going to find out what is behind the story of crude and that zipping sinking contract, take a look at the futures as we watch vote happening live on the screen on the house floor, right now futures up 90, s p futures up 15 and nasdaq after 39 after yesterday 1,000 plus point selloff. We will be right back today, a focus on innovation in the Southern Tier is helping build the new new york. Starting with advanced manufacturing that brings big ideas to life. And cuttingedge Transportation Development to connect those ideas to the world. Along with urban redevelopment projects worthy of the worlds top talent. All across new york state, were building the new new york. To grow your business with us in new york state visit esd. Ny. Gov. To grow your business with us in new york state yeah, im watching it too. I see them every day. The curtains, theyre always drawn in this place. I know. That guy, it seems like hes in charge of them. I dont know, i dont feel very good about this. We have to report this. Yes, absolutely. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Leaving every competitor, threat and challenge outmaneuvered. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Lauren we are watching washington right now as the house is voting on a budget plan, we expect them to wrap up this vote by 25 30, of course, that can change, we are also watching wall street after basically the worst week for the dow since the financial crisis, since 2008. Dow futures higher by 110 points. Cheryl lets pull up futures if we can, to laurens point a lot of activity in the futures market, a lot of that is based on what is happening in washington federal deficits, Interest Rates, economic effect of all of this, lets bring in Scott Shellady, managing director at tj europe, he joins us on the phone from london, we have two breaking stories, what we are seeing in washington but also the selloff yesterday and the volatility seems to really be feeding into European Market this is morning, our futures are higher, European Markets are lower as they are trading, whats going on in. Well, European Markets are playing catchup to what happened in the last couple of hours in the u. S. Session yesterday and, again, the u. S. Is the dog that was wagging the tail of europe here and its because of what we have happening, the drunken sellers are lost ant better than economic numbers and we saw nonpayroll day and things seemed to be Getting Better and everybody confused why is market off because we have fundamentals, guess what, we were rally for six years when we didnt have fundamentals. If we can go up when things are bad, we can definite i will go down when things are good. The markets caught like a deer in head lights, look, gold doesnt know what to do. Cheryl good point. Lets be clear, the correction territory that we are now in for the dow and s p, as of yesterday at the close, down 10 from january highs but to reinforce your point, i think that is the confusion for the average, you know, viewer, the average investor, wait a minute, wages are higher, unemployment at 17year low. You know, youve got all the market highs, why is there nervousness, the concern seems to be the economy, though, scott, the worry that the Central Banks around the world in particular the fed are going to overreact to inflation and are going to overreact to Economic Growth and kind of slow the party down. Youre not worried about that . Well, i mean, you cant rule that out, the problem is weve had six or seven years of inflation, we continue to see Unemployment Rate tick lower and lower to 4. 1 and the biggest question out there for the last four or five years, how come we have more than full employment and we cant get wages to rise. A little bit is technology and thats something that the market is struggling with, guess what, suddenly the pent up Wage Inflation is coming and if it comes too fast the fed will react and maybe raise more than they thought. We are still at relatively low interest levels, the market can absorb a little and that doesnt mean the economy is not doing well, we need to catch up. Even at last nights close we are going back to february, i mean november of last year, we gave back a couple of months. Cheryl we were feeling good in november, but here we are in february and its a different story, Scott Shellady, we appreciate it. See you. Lauren coming up, this week two of the biggest dow point drops in history, right now futures are moving to the upside, dow futures gaining 113 points at the moment. We are officially in correction territory when you look at the dow and the s p 500 and the dow transport and its onetwo punch for traders, their commute this morning could be worse, more snow heading to the northeast and that could also mean chaos at the airport. We will have the latest on Flight Cancellations ahead. Introducing shield annuities, a line of products that allow you to take advantage of growth opportunities. While maintaining a level of protection in down markets. So you can head into retirement with confidence. Talk with your advisor about shield annuities from Brighthouse Financial established by metlife. Lauren breaking news this morning, we are covering two tremendous stories overnight. Drama on capitol hill, as i speak the house now voting on controversial twoyear budget plan that raise it is deficit. Cheryl we are watching whats happening in washington on the heels of a thousand point drop yesterday, the dow and s p officially going down correction territory down 10 from recent january highs but look at dow futures right now rising overnight, in fact, we are up triple digits, dow up 25, nasdaq in premarket up by 48. Lauren whats scaring a lot of traders deficit and rising tenyear treasury yield, right now 2. 85 . Cheryl of course we are taking a look at whats happening overseas, they felt the chill around the world, in europe stocks opening all on the red. Lauren they recovered since the last time they checked. They are doing a little bit better. In asia it was ugly and it was also ugly for the week in asia, nikkei down over 2 in japan, in china the shanghai composite down over 4 and we are talking about 9 and 10 declines on the week. Cheryl staying in asia, Vice President mike peps is expected to arrive at the site of the Winter Olympics in south korea within the next 20 minutes or so, we will be following the Vice President s travels, fbn am continues right now. Lauren 5 32 in the morning in new york, tgif, im lauren simonetti. Cheryl im Cheryl Casone an a lot of breaking news to follow right now. Lauren first house is voting on capitol hill on bipartisan to your budget deal we have fox News Reporter Griff Jenkins live covering it all for us, hey, griff. Hey, good morning, lauren and cheryl, listen, here is the deal f you are a Government Employee and youre up all night wondering whether or not youre getting the day off, chances are you better hop in the shower and start getting ready, it appears now as we look at the numbers reaching over 220 that the house has the votes to pass and they will pass this bill, now, that wasnt without a lot of drama and we see the house there obviously as they get this about ready to move and ultimately it will have to go to the president for signature and the government will reopen, it was essentially just closed overnight so not actually affecting the Government Employees but again it wasnt without drama, what was at play here and we saw House Speaker paul ryan and minority leader pelosi making passionate speeches, pelosi who was part of the negotiations on this bill voted against it and she continued to hold out for the dreamers and for a deal on daca from speaker ryan and then on the conservative side we saw the deficit hawks, the conservatives who do not want to spend more than 400 billion on things like military that they support so there will be when we get the final vote count plenty of deflection, bottom line looks like it will pass and recap for viewers who are just waking up, this all got thrown on because unexpected senator rand paul launched into an hours long protest into raising spending caps and held out from allowing the senate vote to happen, but, of course, surely before 2 00 a. M. The Senate Passed a twoyear budget deal with this stopgap spending, it was passed by 71 to 28, i believe, and at the end of the day, all we are fully going to do is keep the government open again till march 23rd, just over a month, guys. Lauren all right, Griff Jenkins, thank you very much, lets dig in a little bit more as we look at the markets reaction to everything with with our panel melissa armo, joins us now, shes the owner of the stock, doug flynn, certified Financial Planner and cofounder of flynn Capital Management and hogan, market strategists, good morning, what a day to join us. Art, im going to begin with you, whats going on in the market, is this inflation driven, is this budget deficit driven or is it both, whats taking priority right now as you see it . Yeah, i think that when you look at what this all started with was three things, we had a market that had move from thanksgiving to the 26th of january, jobs report that showed pressure, so we started get concern about inflation and would that make the fed move abruptly and the third thing is we have a market that was wound up in a trade that was short volatility, when that changed in unwinding the trade throwing gasoline on fire that started, you know, we havent had a correction in quite sometime and two years and they usually happen on regular basis, we are having one right now. Lauren bottom of the screen, the house just passed budget bill, they just passed as you are speaking art. Slightly higher on the news, almost up 150 points for dow futures at the moment, of course, that index plus the s p 500 and the dow are in correction territory and the nasdaq is awfully close, so the russell 2000, melissa, are you worried that the correction continues and we get a bear market or do you think the worst is behind us . Good morning, thanks for having me. [laughter] im not worried about a bear market because technically speaking we are a long way away from that and i dont know why everyone is panicking, we ran up straight for 14 and a half months and let me tell you something, you dont panic when you are down, if you bought in january 2nd, you should have been out into the rally at the end of january because when you get in late, you to get out early, so people should panic when they are down or when the trend has changed and although we had a drop off, it only happened very quickly which created people getting excited about it but the trend has not changed in the market, the sentimentals look good and the technicals look good and the problem is wait for now, if youre a trader, dont buy back into the market even if we rally today, dont get back in, wait until the institution step back into the market and i will tell you what that will look like, it will look like gap up in the premarket and close green and have a big green day on that day, we are not setting for that yet and people jumped in this week a couple of days ago when we had the rally and they shouldnt have jumped in, we broke the low yesterday. Lauren doug, remember turnaround tuesday, we also saw the lows on turnaround tuesday although it ended nicely, if we hit the lows from tuesday, does the selling just continue . Well youre still about 2 above the 200 moving day average which is a support level and its interesting that even with all of this that we havent hit that, normally thats a support level that youd think youd hit during the direction but whats interesting to me, what if i told you last year you were going to make 20 and as of today youre still going to be flat to positive for the month for the year because you are, we just went up so far so fast that we are giving back the gains that we made this year and youre up a lot, so i think that youve got support a little bit below this, you could see a little bit of dip down but we are this is a normal correction. Weve had them in 2016, weve had them in 2015, we have just forgotten what they look like because its been a while. Lauren they last about four months on average, historically speaking if anybody wants to know out there. Let me ask you this, jar ohm powell, the new head of the fed, i would not want to be him at the moment. What does he do with all of this, we have a rising rate environment, we have the fed taking back the punch bowl, pulling back and pairing down the stimulus and we have a stronger economy, what does he do . Well, its interesting, so to do extent that you look at whats happened in the normal market correction, unless it becomes something economic, the fed probably stays to course, does that mean they will raise rates in march, i dont think so, do they will raise rates twice this year, probably. I think that continues, but unless this turns into something economic, i think the fed stays the course. I dont think the talk of the fed having to go four times this year is actually going is going to play out because i dont think inflation is rearing its head. You look at the readings on inflation, they havent popped up. Lauren next congressional first testimony from mr. Powell will be the end of the month, february 28th, art, melissa, doug, thank you so much for bearing with us this morning and covering the breaking news with us, thank you. Any time. Cheryl once again the breaking news happening in just the last few moments, the house has approved that budget deal handed to them by the senate, the next step goes to the president s desk for him to sign, its expected to happen, of course, this morning, the vote was 240 to 186, again, the house has passed, we got a statement from House Speaker ryan saying, quote, this was a great victory for our military, so, again, the second Government Shutdown of 2018 is now over, well, its going to be over in the next couple three hours, five hours 40 minutes. Lauren as griff said, if you work in the government, get in the shower, you are working today and the president is expected to sign the bill as soon as possible. Cheryl we have a lot more coming up. We were talking about the markets obviously this morning but oil prices sinking to 7year low overnight, how is that connected to the Global Stock Selloff . We will drill down on that, take a look at futures right now, we are moving to the upside, if theres a correlation between the fact that we just everted another shutdown or five hours of the shutdown the dow up in the last few moments, up 142. Nasdaq up by 53. shrieks in terror heavy breathing and snorting no, no. The running of the bulldogs . Surprising. Whats not surprising . How much money aleia saved by switching to geico. Fifteen minutes could save you fifteen percent or more. Lauren all right, welcome back to breaks news, dow futures up 140 points, s p futures up 20, nasdaq up 53. In other news fox news exclusive top democrat senator mark warner exchanging text messagings with lobbyists which firm has ties to hillary clinton, warner attempt today secretly contact the antitrump dossier author Christopher Steel last year, at one point warner texted lobbyist, quote, we have so much to discuss, we you need to be careful but we need to help our country. Lobbyist saying im in. President trumps budget plan, that will be unveiled on tuesday, 3 billion will be on top of 14 billiondollar request for the u. S. Customs and Border Protection agency. And if you look outside it might not be nice especially if you live in the midwest, over a thousand flights within into or out of the u. S. Canceled today because of the latest round of winter airlines, Southwest Airlines had to cancel 329 flights already. Chicago 750 arriving and departing flights, so today the weather is news as well. Cheryl yeah and the house and the market and a lot to cover in 5 00 a. M. Eastern hour in fox business. We also have oil prices to look at tumbling to lowest levels in seven weeks, you might have missed with all the selloff going on. More than 1 where its 60. 50, lets bring in phil flynn, phil, what do you make of the pressure that we are sitting on a contract in. You know, i think theres two things here at play, some of it is about the fears about supplies rising, u. S. Producers are producing record amount of oil and i think its more about turmoil and fear and we see the market selloff as dramatically as it is, may slow oil demand and business, a lot of fear. But i think like the stock market, i believe this is overdone a little bit. Probably strong bold market like we are in stocks and stabilize and we could see a bounceback. Youre seeing, of course, the reaction from the dollar over to the oil contract and the effect on gold, let me ask you about the move out of china and maybe it doesnt have anything to do with the pressure we are seeing on oil right now but they will start futures trading on Oil Contracts march 26th of this year, is that having any affect on the mentality . I think it is, china has been trying to start a futures contract for many, many years, over 25 years. So far they havent been suck successful and it seems that theres skepticism that the contract will take off. A lot of people think it makes sense because china has become the Biggest Oil Importer in the entire world, they surpassed the United States. And so a lot of people think it makes sense, but a lot of people think also because of the way the Chinese Government steps into markets, interfere with markets that it wont get foreign investors, thats the big test for the shanghai futures contract. Cheryl itll be interesting move to watch especially with production shifting around the world and the focus of oil kind of moving, well, again more to china than here. Phil flynn thank you for the commentary this morning, we will watching the oil contract today. Have a great day. Cheryl you too. Lauren coming up, what is next for this crazy stock market in we are going to go live. Doesnt that look nice to bermuda to hear from Fox News Contributor John Layfield and if you live in chicago, i think that picture looks pretty to you. Vice president mike pence expected to rise at the olympics in south korea at any moment, we will keep you up to date there, quick check on the futures for worst week since dow 2008, the s p and nasdaq on percentage basis is doing even better, we will be right back today, the new new york is ready for takeoff. Were invested in creating the worlds first stateoftheart drone testing facility in Central New York and the mohawk valley, which marks the start of our nations first 50mile unmanned flight corridor. And allows us to attract the worlds top drone talent. All across new york state, were building the new new york. To grow your business with us in new york state, visit esd. Ny. Gov. Lauren moments ago the house passed a budget bill avoiding Government Shutdown, dow futures are up, they are up about 100 points at the moment. The shutdown showdown is over for now. The question is what does this mean for the trading day ahead and our futures being up for much of the morning, is it going to stay that way . Fox news contribute o John Layfield, i dont expect you to have a crystal but what do you think after the house passed bill . Imagine how low the bar is right now that the only thing they are doing and they think they should be congratulating on is keeping the doors open, its literal i will keeping the lights on. Its low bar for politicians in washington, d. C. , but at least they exceeded that low bar, i think what we are looking at today in trading as far as you can tell is yesterday you started highs and you ended lows, thats a bad sign for stocks going forward. Europe is on its path to the lowest, to the worst week in over two years, you had a hawkish bank of England Governor Mark came out yesterday, raise in may is likely, now 70 probability that that will happen, so i think there are a lot of headwinds and right now the market is trying to figure out what is fair value and suffer to go find the value right now. Lauren figuring out if stock market is still in an overbought condition believe it or not. I want to take a look at 10year treasury, this has been a huge part of the stock swing and stock selloff story that we have seen in the last couple of dais, 2. 85 , the closer we push to 2. 9 to 3 it seems like the more the stock market sells off. Yes, it is, and the reason is because of inflation, look, we saw inflation in wage appreciation this past friday in the jobs report and i think right now with this fiscal complete irresponsibility in washington, d. C. , they are at it is unfathomable how much debt they are adding to this country, they are leveraging our future to get reelected and when you see rates like this rise, this bodes not very well for the country. Still historically at low but if rates were to go to 3 and a half 4 , we are in serious trouble. Lauren does it end when we get the job of february and when we get the report and wages continue to go up, when does the selling stop . Thats a great question, nobody has a cristal ball, nobody does, i wish i did. Look, it certainly hurts, down 10 , people lost a lot of money, but if you look at where you were a year ago, if you say we are going to go up 20 in the year, i think people would take that and i think this is i hate to use the word healthy because people are suffering with the losses but this is something thats normal, we havent seen the correction in two years and i think this is something thats normal, the last two corrections by the way, worries about china, chinas debt, this is brought by china as well because china has exported deflation for so many years, they are now starting to export inflation and i think thats the worry. If it manifest itself, it looks like inflation could be 6 to 18 months out. Lauren we increase our debt at rate of 3 billion a day John Layfield. Unbelievable what our politicians are doing to our future. Lauren yeah, thank you. Cheryl republicans very upset about that, many of them the fiscal hawks. We are going to talk about. Well, we continue to follow the Global Stock Selloff thats happening, europe is still under pressure right now. Market did open lower following steep losses yesterday on wall street, we will head to london for a live report straight ahead on fbn am. Excuse me, are you aware of whats happening right now . Were facing 20 billion security events every day. Ddos campaigns, ransomware, malware attacks. Actually, we just handled all the priority threats. You did that . We did that. Really. We analyzed millions of articles and reports. We can identify threats 50 faster. You can do that . We can do that. Then do that. Can we do that . We can do that. Cheryl well, stocks of europe modestly lower right now after the house passed the budget bill heading Government Shutdown. Riva gold from the wall street journal, riva, good morning, talk about whats happening with european investors this morning on the heels of our massive selloff yesterday . Good morning, the reaction in europe has been pretty muted, european stocks have held up relatively well today just compared to the pretty big losses that you saw in the u. S. Yesterday which, of course, accelerated after europe was closed and also pretty steep declines in asia. Its been actually pretty unusual while europe just like asia, just like the u. S. Is on track for its worst week in about two years, its actually held up better which is pretty unusual that tend to fall further during global downturn but suggest that europe hasnt had the climb earlier this year so on the downside its also being protected just a little bit and also taking encouragement from the rise, im sure. Lauren the more hawkish stance from governor, likelihood of rate increase in may, how do traders feel about that . Of course, wild ride for the british pound in the last week, people are constantly rethinking the bank of england. Theres so much chaos going on in the uk between brexit negotiations and patchy data, Different Communications but certainly people are more convinced that we are going to see rates move higher again than they were not too long ago but, of course, thats a big of support for the pound. Cheryl riva gold from the wall street journal live out of london, thanks for joining us, we appreciate it. Lauren thank you for joining us on fbn am, we will say good friday morning to maria bartiromo, mornings with maria starts now. Maria thank you so much, ladies, what a day, thank you, have a good weekend, girls, we will see you soon cheryl and lauren. Good morning, happy friday, tgif, it is friday february 9th, im maria bartiromo, thanks for joining us. Here your top stories 6 00 a. M. On the east coast. Volatility is back and it is rocking wall street. The dow and the s p 500 plunging into correction territory yesterday for the first time in two years with the dow diving more than 1,000 points for a second time this week. It is now down better than 10 from the record close last month and that, of course, is official correction territory. Overnight in asia, take a look, markets took the cue from wall street with selloff there as well, shanghai composite biggest loser down 3 in hong kong 4 in