Transcripts For FBC Markets Now 20121213

Around the clock service. We have our own version of around the clock. Nicole petallides is on the floor of the new york stock exchange. Nicole it really is a time to shop. Lets take a look at the major market averages. The tech heavy nasdaq is squeezing out some games. It is up about five points. Some other traders talking talking about the fact that yesterday they got a lot of monetary policy. Then they start to get Economic News of things the a little bit better. They have to digest each piece of Economic News. There is a look at the dow. 13,237. It is down about eight points. Lets talk about best buys. From 1956, that is when he founded best buy. He is moving ahead. It could be by the end of the week. It is up 15. 5 . Connell a news alert from washington. You will see it here live from d. C. As we wait for the speaker, we will hear from a guy who says whatever god deal is signed, there will be a lot of pressure. Boehner will have to cut a deal that raises taxes. Their idea of fiscal conservatism, for two decades, has only been about taxes. Meanwhile, under current sentiment, underneath him, why dont you finally go after spending. Those Tea Party People will be completely hostile to whatever deal comes up. Connell the reason he is speaker of the house is because of those tea party. The same group that may, if you are right though i drive him out of town. He has been systematically pushing Tea Party People out of committees in order to get his conference more in line. Connell he better kind of followed the line here. That is how you organize and discipline. It will hurt the economy without solving the problem. Connell is he supposed to that would be characterized as a grand bargain. If you are right, his job is literally on the line. There isnt much of an option. He has not been talking about that. There is no intellectual foundation for math. If it gets tough, he gets blamed. He is going to come up with a lousy deal of some sort. That is about the past that he and republicans can hope for. Connell we will hear from the speaker of the house and just moments. We have received some advanced remarks that Speaker Boehner will use. We do not know where the spending cuts are. He has two or three weeks. It is pretty difficult to imagine. I think they will come up with phony cuts that taken down the road. That is about the best we can expect from john boehner. That is why, ultimately, he will have pressure to be replaced after he signed this deal. Connell we will hear questions and hear the speaker talk. Thank you very much for coming on. If you think about all this fiscal cliff nonsense ruining the stock market, Brian Jacobson is here to talk about it. You are pretty optimistic. Well, i am. I do not want to think no matter what. I do think that whatever happens coming out of washington, d. C. , we will probably see a little bit of economic break. That is already priced into the market. I think the economy will begin to accelerate. That could drive a little bit more investor optimism. Connell let me talk about the possible scenarios here. Everyone is focused on the idea if they do not get a deal. Even if they do get a deal, it will not be expansionary. There will be a lower level of government spending, or at least it will not spend as much. Neither one of those things should help stocks. Why is that environment so favorable . Okay. That is a very good point. A lot of times when you exercise, they say no pain, no gain. This is just all pain. If you look at forward earnings. Look at the way the market is trading. It is not depressed levels. We are almost at recession territory. A lot of that pessimism, a lot of that pain, is already priced in. It will not necessarily be good for the economy, but it does not necessarily mean it will be that for the markets. Connell the market has been up and down today. I am interested to hear you talk about pessimism. As we have reported a couple times today, the s p 500 may do something it has not done in years. It does not sound like a lot of pessimism. Compare where we were a few months ago. If you think that where we are now, we should be, probably, closer to 1505, s p 500. Back in september, it was looking like we were going to go off to 1450. Putting that in that longerterm context, we should be a lot higher than where we are right now. Connell in particular, the sectors and those type of stocks that you like, what are they . I think it makes a lot of sense to be globally diversified. There is a lot of things going on in the United States that could create some hiccups in the market. It does look like it is with the companies that are based in the u. S. , but are globally focused. A lot of those will come from the Information Technology area. Also, energy and healthcare. Those are some of my favorite sectors for 2013. Connell brian, thank you very much. Speaker of the house, john boehner, getting ready to deliver his update. As soon as he does, we will take it live. He will highlight the fact that the spending cuts are just not there. We will see what he has to say. Then the story about facebook interns. Just breaking in the cash. Lets take a look at oil today. Connell the speaker of the house john boehner is about to update us on the fiscal cliff talks. Pushing the president to come up with some spending cuts. We will have it live as soon as it starts. Before that, lets make a little money. Charles payne is here. Tell us your stock today. Charles they make great cars. The demand is absolutely on fire. The liquefying the commodities, natural gas, i think there will be a lot of money there. As you are worried about this fiscal cliff stuff, this is one of the companies that has done very well in a recessionary. They have managed extraordinarily well. Connell i mentioned a moment ago. Again, we are waiting for Speaker John Boehner. I mentioned a moment ago that the speakership and job is on the line. He will come out, rich erickson was telling us, the missing ingredient is the spending cuts. The president has not been serious. Where do you think we are in all of this . Charles this whole thing came about because of the debt ceiling compromise. Now it feels like that entire thing has been flipflopped. Connell i guess you would not have known all these things back then. Charles hind sight is 2020. What he may be prepared to accept now and what it was then. Connell the president called him up that day. We were actually down in d. C. That day. We thought there was going to be a deal. Apparently, behindthescenes, the president was saying no. I need the more revenue. The speaker said, forget about it. Charles also, there is a lot of anxiety within the Republican Party. And lot of conservatives are newer breed. The tea party breed. Despite what the media says, the tea Party Presented a major challenge. It was a stop establishment leadership. Connell the people who put him into power, and about a ways, was the tea party. We will go to the speaker in just a moment. Lets go back to the culpepper. Nicole now, they are moving forward and canceling trades. These are some big names. Citigroup, hewlettpackard and goldman sachs. I also want to take a look. It is tied to libor. We know a lot of things talking about it. That is why we are taking a look at ubs. Connell they refill population growth has now slowed down. Fewer babies being worn. It is not expected to hit 400 again into the year 2051. That is 12 years later than projected. By 2060, the old one out number the young in the first time in u. S. History. Aaa is predicting Christmas Travel can be added biggest level in six years. Gas prices are actually helping. Record highs usually at this time of year. Facebook interns. They can certainly afford it. A new study revealing that interns at facebook they cant average of 5600 a month. About 57 grand a year. Facebook making that there are interns, making 20,000 more than the average citizen. A pretty good place to be an intern. Also today, General Motors unveiling a new line of pickup trucks. We will go to jeff flock for that. Jeff. Jeff as we speak, gm executives, that is who you are looking at right now, they are talking about the new Chevy Silverado. If you look at the pictures of this, there was a huge explosion as a new Chevy Silverado pickup was unveiled to the public. It is the number one selling vehicle for gm. This is where this thing went off. They set off an explosion down here. They are hoping for and explosion of sales. We talked to the president , for gm and he said even if we go off of it gm can still make money. We can flex and make a lot of money at fiscal cliff levels. We do not think that we need to. Jeff what do you do immediately we take a look at different car lines. We look at where the strength is and could be. Then we look at the pent up demand. Jeff this is the silverado. They already have some kind of inventory. Mark reuss said they have increased incentives. They are selling pickups. If we do not go off the cliff, they are extremely wellpositioned. Connell jeff, thank you, as always. We will go back to washington for the speaker of the house. He is a few minutes late, which is interesting. A lot of pressure here in terms of where is the leverage. His question, where is the spending. We will say about his language and how he does it. We are also going to talk about serious. A very big story today. Blue shield of california is getting ready to fix some policyholders with a rate increase. Lots more still to come on fox business. Connell breaking news out of washington. Here is the speaker of the house, john boehner. To avert the fiscal cliff with a bipartisan agreement. That is truly solid and begins to solve our spending problem. The president still has not made an offer that meets those two standards. Republicans have. The president promising American People a balanced approach, his proposals have been anything but. Instead of beginning to solve our debt problem, he wants new stimulus spending and the ability to raise the debt limit whenever he wants without any cuts or reforms. That is clear that the president is not serious about cutting spending. The spending is the problem. How big a problem . I look at this report put together by paul ryan and the budget committee. Here, if the president got everything he wanted, 1. 4 trillion in taxes, this is what that would represent. If you look at the spending problem, you see it does nothing. Nothing to solve the spending power of our country has. Republicans want to solve this problem by getting the spending line down. The president wants to pretend the spending is not the problem. That is why we do not have an agreement. The chart depicts what i have been saying for a long time now. Washington has a spending problem. It cannot be fixed with tax increases alone. The right answer is to start cutting spending, addressing our debt and paving the way for longterm economic growth. Unfortunately, the white house appears willing to slow walk any agreement and walk our economy right up to the fiscal cliff. Doing that puts jobs in our country in danger. It jeopardizes a golden opportunity to make 2013 the year that there will be a fundamental tax and entitlement reform that will begin to solve our countries debt problem and, frankly, revenue problem. As you can see from this chart, real Revenue Growth is critically important. As long as, real cuts and spending, if we are going to solve our longterm fiscal problem. Old on taking on the big challenges our country is facing. Republicans are ready and eager to do just that. We made a reasonable offer. It is now up to the white house to show us how they are going to cut spending and give us the balanced agreement the president has talked about for weeks. The president will step up and show us he is willing to make the spending cuts that are needed, i think, we could do some great stuff in the days ahead. If not, this chart will look a whole lot worse. And, our kids and grandkids, are the ones that will suffer. Because washington was too shortsighted to fix the problem. Several recent polls have showed that 75 believes that the tax rates for the upper income should expire, why are you holding out for a tax cut for the wealthy which most americans say we should not have . Raising tax rates will hurt Small Businesses at a time where we are expecting Small Businesses to be the engine of job creation in america. Ernst and young has made it clear that jobs would be at risk. It is as simple as that. [inaudible question] well, we really should not be. I have argued going back to spring. This issue had to be dealt with. In may, the house removed a bill to replace this a question or with other cuts and mandatory spending. The president still is not serious about dealing with this issue right here. When i talk about pulling, most americans would agree that spending is a much bigger problem than raising taxes. They want us to do with this in a responsible way. [inaudible question] unfortunately, that is the case we are dealing with today. [inaudible question] i do not understand what the question is. Everyones income taxes are going to go off on january 1. I have made it clear that i think that is unacceptable. Until we get this issue resolved, that risk remains. Can you describe how difficult it is to craft a deal, while not jeopardizing your job as speaker that i am not concerned about my job as speaker. What i am concerned about is doing the right thing for our kids and grandkids. The white house says they have put spending cuts on the table. They say you know what they are. They have put some spending cuts on the table. Unfortunately, the new spending cuts that they want out trips all the ones they have outlined. [inaudible question] there is no such list. Right after the election, you said increase death rates was unacceptable. The language that you used, that is what you said before the election. I do oppose that. [inaudible question] if that were the case, every date would be christmas. Listen, my goal is to get to an agreement with the president of the United States that addresses this problem. [inaudible question] i have no idea. [inaudible question] complicate the efforts . Do you think that senator reid or then senator obama would have ever given to president george w. Bush unlimited ability to raise the debt limit . Talking about doing it now. I know they are talking about doing it now. Do you think theres any chance that senator reid or then senator obama would have done that . Zero. Congress is never going to give up our ability to control the purse, and the fact is that the debt limit ought to be used to bring fiscal sanity to washington, d. C. Last question. Last week, the Supreme Court of litigations had the defensive marriage act, and with the 1. 5 million cost, outside counsel to sign the law, but according to the report, it decreased. Do you support the idea of raising if the Justice Department is not going to enforce the law of the land, the congress will. Thank you, all. All right, speaker of the house, john boehner, thats where we are, live update from washington on the progress or lack thereof, pushing for stepping cuts as expected, but the president s idea of a balanced approach is anything but. Brett, the host of special reports, Fox News Channel with us now from dc. Whats the analysis of that . Whats going on here . Connell, i dont think its just public pronouncements. I dont think this is just bluffing for the microphone phone, and this is where republicans are, and they dont believe that the white house, that the president has put forward significant spending cuts anywhere near what they would like to see prior to jumping off a point where they are going to raise any tax rates. I mean, if they get to the point, which they are not saying they are at that point, but if they came off the strict line that they were not going to raise tax rates. They already got to the 800 billion in revenue as we talked about many times by closing loopholes and deductions, but to go beyond that, maybe get to a 37 instead of 39. 6 on the top tier, you would have to see some significant, significant changes to entitlements or significant spending cuts, and they are not seeing that, and i think theres a real frustration out this on capitol hill. Republicans will point out, just incidentally, that the president would gain about 70 billion next year for the tax increases he wants on the wealthy, about 70 billion specifically next year. Thats roughly about the same the administration is requesting for Hurricane Sandy relief. Connell right. Okay. Well, that does put it in some perspective giving you an idea what they are thinking, but the question is what do they do about it . A few interesting exchanges, and i dont know what reporter it was, the microphone was low, but why do we do this every christmas . Its always something. Thats one of the concerns. We cover markets, and can they function . Every year its something pushed to the end, and its going to happen again. How do the republicans, i dont know if get out of this is the right phrase, and a couple days ago, maybe i did see it, but now i dont see the end game how it works out. That is right. 65 of the americans of believe the federal government is broken. 82 of republicans, 71 of independents believe the federal government is broken. 47 of democrats. That suggests that people dont trust how the federal government is spending their money once the federal government gets that money. You have inherent problem in the way the government is working, period. The fact that they have to come to a crisis situation for every major decision is a big problem, and that actually was chad, our producer up on capitol hill asking that question about deadlines every time for a big decision, but youre right, and i dont see it yet. I agree with you. I thought it was 50 50 coming into this week. I think its 70 30 now that were going over the cliff, and maybe even higher than that, as you listen and talk to behind even behind the scenes. Connell i didnt know it was him, but i was nodding thinking thats what everybodys thinking, every single time, and thats why people get tired of it. Listen to Speaker Boehner quickly here on what he had to say about spending cuts moments ago. Heres the speaker. Ive been pushing all year for us to address the problem, but here we are at the 11th hour, and the president , still, is not serious about dealing with this isssue right here. Its this issue. Spending. Connell thats when he was the most animated, brett, i thought. He was referring to a chart that paul ryan, i guess, put together next to him, but that was during the question when he turned, and its this issue, its spending. Earlier, again, matt welsh in from recent magazine thinking the speakers job is on the line, and hes not worried about his job, but hes under pressure to get spending cuts, and you dont know how hell do it. Bottom line is he has to get the votes. He can make deals, sure, i agree to x, y, and z, count me in. Until there was 218 votes in the house chamber, its not a deal. Its not going to become law. If he cant convince the republicans in that chamber that the deal is the right deal, then hes not going to be the leader of that chamber for very long. Right, thanks, good to talk to you. 6 p. M. Eastern, Fox News Channel, special report. Dont miss it. Its the best show on politics and a whats out of washington every day. Whats coming out of syria, the assad regime losing support from a trusted ally. Its a big global story. Could have market implications certainly coming from the middle east. Well talk about it next. Blue cross blue shield of california ready to stick policyholders with a big rate increase. Well get to that as well. Keep it here. This your fox business brief. Jobless claims fell for the o fourth straight week, could be a sign the labor markets improving, 3433,000 americans marked for unemployment benefits. Ups could face a 1 billion fine to settle allegations over involvement in lobor manipulation. According to media reports, the deal could be monday and the penalty would more than double than bar january clays paid in june. The company projectedded better than expected earnings for 20 13. The companys also hiking its quarterly dividends 38 to 22. 5 cents a share, planning for a 4 billion repurchase next year, stock repurchase that is. Thats the latest from the fox business network, giving you the power to prosper. Connell a big talk today, anded the assad regime is losing the country and could lose the civil war, a big ally of syria, the russians. Tear general saying the regime is on the brink of collapse. Put that together, and bring in the columnist at the wall street journal here in studio. Credibility to this you think assad is on the way out . Going on for nearly two years, and for two years, people said assad is on the way out. Well, this could end soon. He could be on his way out, but dont expect the civil war to be ending. If theres a victory by the insurgents, theres the minority that assad represented. Theres a risk of genocide. The serious story is far from over. Connell odds from him going out up here, but odds of it ending are pretty much what they are at. Whats that mean for us that the United States gets involved, and what happens if the use of the weapons syrias an excellent case study of what happens if we dont get involved in a way we more or less ended libya to be contained. Now theres hundreds of thousands of refugees in lebanon, turkey, and jordan. The jordan kingdom is unstable, long standing ally of the United States. Theres a question of chemical weapons that may or may not be on the lose. Today or the last couping days, they used scud missiles against their people. Alqaeda energized by the uprising, going to the fore front of the leadership. When you dont do things, bad things can happen. Connell now what . Toots . Too late . The concern is, obviously, the chemical weapons, but we have a previous history that a lot of americans had in iraq, and i know its a different situation, but its in peoples heads, and thats what the frame of reference is in the immediate term, and do we want to get involved in the middle east war, where weapons of mass destruction are an issue. Right. Exempt we know very well that syria has largest stockpiles in the middle east, may have jihad coming to the floor. Loose chemical weapons are not in the interest of the United States. You heard president obama talking about it explicitly. Its not a issue of dodgy intelligence. Connell u. S. Military involvement, what do you put the odds at . Low. They could impose a nofly zone hastening the demise of the regime, giving us credibility with the best elements of the leadership. Connell thank you, appreciate it. Good to be here. Connell back to nicole, every 15 minutes, stocks now. A look at a home builder here, a name that obviously some of the Home Builders can be volatile, and its their moves that are not only dependent on their own earnings, but also on our economic numbers, whats the fed doing, whats coming out of washington that day, and so for right now, we are seeing some good news, but, also, people are boyared about what does qe end 1234 whats going on. People worried about the fiscal cliff. All that piles in. Down 4 , loss for the quarter did narrow in the fourth quarter, and they have new contracts in Home Deliveries going well for them. I wanted to look at the Broader Market averages, and right now, the dow is down one quarter of 1 . Both merck and boeing weighing on the dow jones industrials, each down more than 11 . 1 . On the topside, walmart, caterpillar, all winners. Connell news alert from california where blue shield wants to raise rates on individual policyholders from the l. A. Times saying the Health Insurance Company Wants to raise rates by as much as 20 for some individuals out there with an average increase much 12 for 3,000 customers. The times talked with consumer advocates saying the nonprofit should use some of its 3. 9 billion reserve to hold down those premiums, but higher rates out in california. The big story in tech land today, and this is making a lot of iphone users happy, i know. For months, theres been criticism over the mapping application on the new iphone, and apple, finally, today, approved google maps to have an app for the new system. You used to be able to get google maps on the iphone, built in, went away, and people were irate. And literally lost without it. You were reporting on it with folks in australia lost because they used the maps program, and they ended up in the outback without water. No longer. You can find your way just fine as google unvailed this morning in the apple istore their google maps app. I was able to down load it early this morning. Easy, fast, and free, able to review it as well, and here are my favorite features that i think you guys are going to like. First, its slick new interface, its clean, its intuitive. Doesnt require a lot of swipe to get to where you are going. Google search in the application. If you look for a dry cleaner, search for it, and then find it in the same box. It has a sirilike voice guided turnbyturn directions, transit schedules, and locations saved on multiple devices. Looking for a restaurant, for example, sitting at home, your home computer, when you are on the road, on your cell phone or even when you get to work, you can keep up with the directions anywhere along the way. Couple features we are waiting for. No, its not available on the ipad just yet. Waiting for that. Theres no integration with contacts so if you have your doctors address savedded in the contacts, you cant get it seamlessly put in the application just yet, but thats just a matter of time. Google shares doing well. We think, probably, because of the release. Lots of hype today. Connell up over 700. Good to have the turnbyturn, and turn where you are supposed to be going, another key to this. Thank you. Thanks. Connell a good show last night, the 121212 concert in Madison Square gardens to raise money for Hurricane Sandy, huge success, springsteen, huge names there, exclusive comments from the Division Heads of chase, a big sponsor of the event. Thats straight ahead. The market gave up as boehner was speaking. Lets look, though, at individual stocks doing well. These are some of the nasdaq winners. [ engine revs ] [ male announcer ] the mercedesbenz winter event is back, withhe perfect vehicle thats just right for you, no matter which list youre on. [ santa ] ho, ho, ho, ho [ male announcer ] lease a 2013 ml350 for 599 a month at your local mercedesbenz dealer. Connell back on markets now, and what a show last night, the 121212 concert raising money for the new yorknew jersey area hit hard by Hurricane Sandy. It was a huge success. We showed you springsteen. Tons of huge names, Paul Mccartney in the end, bon jovi, alisha keys was there, big talent in one place. Theres the stones. They are saying 2 billion people watched around the world. I dont know. It was appropriated by chase, and we caught up exclusively last night with the banking giants Card Services ceo backstage. Heres a little bit of that. Way were trying to do in the community is to help people to rebuild so thats what tonight is all about, raising money. Before we even started the concert tonight, we raised more than 30 million, going to robin hood into the affected communities, and in the communities, we have more than 10 million customers and 30,000 people in the area. This is personal for us. This is our home. Connell 30 million before the concert began so they will take time to calculate how much was raised from all the callins last night, but tens and temperatures of millions of dollars, robert hood foundation, and a lot of people in the area need the help. Good event last night at the garden. Back to the markets now with gold taking a tumble, but many on wall street bullish, the subject of the trade today with sandra smith. Sandra gold and silver on declines, silver down 3. 5 , the biggest drop as far as commodities are concerned. Gold, everybodys watching, down 18, a full percent drop, steady throughout Speaker Boehners comments there. We have seen them flux in the past, but the feds announcement, a big rally on gold, but profit taking this morning. Everybody still concerned about the 1700 an ounce level, guys, but the news today, a yeartodate chart to see gold is up over 1 00 from the beginning of the year although its been volatile. Morgan stanley saying its the best pick for 2013, to own gold because of the feds loose monetary policies. Own it. The average price for 2013, 1853. They are very bullish, i would say. Connell indeed. Sandra, thank you. Manufacture on the trade throughout the day and sparring going on on capitol hill coming up next. You heard, in this hour of markets now, animated speaker of the house john boehner, and harry reid is next with the response. That live as well, and cheryl and dennis with full analysis own where we are going from here. I always wait until the last minute. Can i still ship a gift in time r christmas . Yeah, sure you can. Great. Wheres your gift . Uh. Whew. [ male announcer ] break from the holiday stress. Ship Fedex Express by december 22nd for christmas delivery. Dennis im dennis kneale. Cheryl House Speaker saying president obama is not serious on spending, and harry reids response in a live News Conference moments away, and, plus, how it impacts investments, and, of course, your tax returns. Dennis your cable tv bill could be up big time next year. Who is to blame in the media minute. Cheryl wonderful. Blue shield of california raising rates by 20 , and they are blaming obamacare. Dennis top of the hour, stocks now, nicole at the floor of the new york stock exchange. Looking here at the markets, see the dow down nearly one quarter of 1 . We snapped our nice winning streak we had, right, going for a few days, up five days in a row, but, yesterday, down three points, back and forth action after we heard from ben bernanke, putting a damper on things, does not sound positive these days, but the truth is we have the feds committee deciding to put forward monetary policy, accommodative with quantitative easing. The dow,13219, boeing, United Health care under pressure. On the plus side, travelers and walmart. Thats the latest, back to you. Cheryl thank you very much, straight to harry reid, another democratic leader speaking on the fiscal cliff. With every passing day, the republicans calling on Speaker Boehner to guarantee tax cuts for middle class. Today, senator cornen, the second ranking democrat next congress oh, sorry, dont i wish, second ranking republican next congress, joining in a course of voices to call on Speaker Boehner to do the reasonable thing saying i believe were going to pass the 250,000 below sooner or later, and we really dont have much leverage there because rates go up by operational law on december 31st. He said it all. Thats the truth. More than three quarters of the American People including 61 of republicans agree with john, that the middle class shouldnt be held hostage to more give aways to millionaires. Speaker bane cant ignore the American People forever. At some point, reality should set in. The only question is how much Financial Stress middle class families and entire economy has to endure during this process. There are other pieces of business critical to middle class families to work op if we resolve the fiscal cliff, and the three leaders with me today will talk about that, but rather than get things done, were forced to wait and wait and wait for the press conferences speakers hold hoping that, finally, reality will set in. It has not yet. He just finished another one just a short time ago, and each one of these press conferences he holds, hes ignoring the voice of the American People. Speaker boehner knows or should know that the middle class tax help that we have to pass would sale through the house of representatives. Democrats would overwhelmingly vote for it. I doubt any democrat vote against it, and as we know from the course of republicans, that our attitude every day, more republicans join every day. Now, i understand the house is gone again. I think one reason they are asking to leave is so more republicans walking down the halls wont be saying i think what hes doing is wrong, but they are leaving. Thats hard to comprehend, but they are. We have nothing to do until they do something, nothing to do with these other issues because we have we are waiting for them to do something to help the middle class. American people shouldnt have to have their tax cuts held hostage to the never ending press conferences hes holding, and selfinterests. Time to put middle class first. Durbin . Dennis saying, Speaker Boehner cant ignore the American People anymore. We have rich edson joining cheryl and me. Starting with rich, youre initial reaction, rich . Well, were in the same spot weve been in the last, really, few weeks here. Look at what republicans want. They want an offer from the president , one that puts more spending cuts on the table, and they are not going to move until they get that. The move from the democrats is consistent. They want to delink the rates. In other words, they want to allow tax rates to increase on families earning more than 250,000 a year, House Speaker john boehner asked a short while ago if hed rule out putting a bill on the house floor to allow tax rates just automatically reset for weptier americans, and basically dodged the question, not saying in or out as far as ruling that out, a major republican bargaining chip on the table right now, but, still, if you get to the point later in the year with no movement, do republicans want to be seen as protecting the wealthy while everyones tax rates go up . Dennis the Republican Party losing faith in itself . This is only going to add to the problem. Well, perhaps. You know, whats interesting, what youre seeing here is both sides trying to change the terms of the discussion a little bit. Clearly, Speaker Boehner wants less discussion about tax rates, more discussion about spending cuts and thats really been the republican effort over the last week or so. Shift the terms of the debate. On the republican excuse me, the democratic side, what you see and what you saw from senator reid is an attempt to say, essentially, the republican facade is cracking, waiting until it cracks further. That may or may not be check, but thats why we have a stalemate. You need more spending talk to please republicans and on the democratic side, they see no reason to move if the crack in the republican stand on rates will inevitably get wider and wider. Cheryl rich, we heard from eric cantor, and sounds like the timing of this goes past christmas, rich. What does that look like . Talk to me about the timing of this getting closer to new years eve. Sure, i mean, this becomes difficult because we dont have a framework or deal or how extensive any legislation has to be passed. You need days to write it, and theres a rule they fudged, but it says you have to have the bill written, and you have to give members three days to look at it and vote. You can start this off in the senate. There are ways you can do things like that. The traditional route is through the house, but it could take a week to get through congress. When you talk about the negotiations between the president , the House Speaker, what you have to remember is that its still a bill that has to get through the house and has to get through the senate. Even if they do reach a framework on the leadership level, republicans have to make sure they bring folks along, democrats have to bring folks along, and were not at that part yet. Dennis you watched this bike ore bickering for years. Is this theater or a stalemate . What you normally say things happen not going well. If they talk publicly, things privately, but that may not be true. Speaker boehner has to show his forces hes fighting for more spending cuts for structural changes in entitlement programs, social security, and medicare to the end. Normally, the more noise publicly, the less progress privately, but that may not be true here. One of the things to watch here is that Speaker Boehner has got to be ail, i think, to get a majority of republicans in the house to vote for whatever package he proposes. You can pass it with less than a majority of the republicans possibly, but thats not good for the speakership. Hes got to make sure theres a package that not only gets the votes in the house, but republican votes to say my guys were with me in the end. Dennis hope there, thank you. Cheryl next guest says tax in connection withs ad tax increases alone cannot fix the problem alone, but you say the economys on the right track saying the tax increases, top 2 , wont hurt the economy. How so . The whole thing with the tax increase is a red herring for the fiscal cliff discussions because we need entitlement reform. People have spoken and are not interested in anything. Their focus is tax the riff, but people are going to make decisions, but thats put off into the future. You will still see momentum from a positive housing cycle, all the things the fed are doing, catch up . Eventually hurt the economy, hurt in a very big way, but not out of the gate. Cheryl 25 of gdp spent, and you say its going higher and we have a spending problem. I totally believe wholeheartedly independent, absolutely in the g. O. P. Camp. This whole discussion is absolute crazy. That 25 is going to 40 , and increasing taxes on the riching thing accounts for nine days of spending. Craziness. Cheryl we have a president who is in the financially responsible, and that, in your opinion, the g. O. P. Will cave more than they want to because they know they will get blamed if we get down to new years eve and theres no deal. The world has spoken. Tax the rich, keep the ball, theres nothing thats going to change it in the immediate term, people believe that somehow well kick the can. The fed did qe forever, throw money at the system and buy the debt, and now theres a followthrough in both europe following the same formula. It is a procare yows situation, but everybodys willing to risk it for a temporary good. Cheryl i want to ask you, you talkedded about entitlement reform, but housing. Thats been a bright spot weve seen, maybe a lagging indicator of five years, 3 its on a role. What were seeing in the economy and housing, negate the problems with the cliff . Yes, thats exactly the point. Housing is so critical to the economy, every increptal right now, only talking about 500,000 housing starts. Average, historically is a millionone, milliontwo, millionthree. When you double or catchup to the underbuild in the past five years, you can see the entire economy, literally, the entire economy on that straint with little price appreciation. Cheryl thank you, howard. Thank you. Cheryl stocks cheap, dennis. You like that as well. Dennis what he said. Love that guy. Now get here from there without fighting about the spouse about it, google stocks higher after the release of the new map app for iphone 5. Cheryl highest gas prices ever for this time of year. Live at the cme where they are headed next. We hope its lower. Dennis what we do every day at this time, take a look at oils. Tdd 180034525 this morning, im going to trade in hong kong. Tdd 18003452550 after that, its on to germany. Tdd 18003452550 then tonight, im trading 9500 miles away in japan. Tdd 18003452550 with the new global account from schwab, tdd 18003452550 i hunt down opportunities around the world tdd 18003452550 as if im right there. 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Cheryl all right. 15 past the hour, stocks every 15 minutes, team coverage, phil in the trading pits, and sandra smith on metals, and first, nicole on the floor of the new york stock exchange. Broader market archings throughout the day, after lunchtime, dow down 35 points, interesting here, seeing the drug stock, downside, banking index under pressure, and Oil Services Index lower on a day where the dollars a complete reverse direction from where it was in the last few days weve seen, a weaker dollars sometimes helps if equities move forward. Today, a stronger dollar, and equities pulling back. Ill tell you, the weekly jobless claims, four week average to levels seen in november. All investors certainly focusing on the fiscal cliff once again, and getting that solved in washington. Thats the latest here at the new york stock exchange. Phil, whats going on in chicago . Gasoline prices down again today, and they should be. Why . The United States produced the most energy last year ever in history. Thats right, 78 quad drillon uses of energy. No kidding about it. When we look at whats happening in the Energy Complex today, a lot has to do with the fiscal cliff. You know, we saw the big builds in gasoline supplies over the last couple weeks and refining mar gyps cut in half. We have problems on the side where the supplies are tight, and the question for this market over the long term is how quickly refinders can flip to the other side. The other big news, of course, looking at aaa today, they say that holiday gasoline demand is 1. 6 above a year ago. Talk metals with that, always shimmering, sandra smith. Thank you for that intrough, mr. Phil. Look at this, guys, messing with the charts here, a sixmonth chart, silver and gold. The gold line here, and silver out performing gold so far in 20 12. Gold prices up 10 . Silver up 21 , guys, so, really, outshining gold so far. Look at whats happening with gold today. Im going to throw up an yeartodate chart here. Big sell off in the open, profit taking after a jump yesterday. The reason folks buy gold on the feds announcement is pump money in the system, devalue the dollar, and all the assets like Precious Metals go up, but they are selling today. A prior day picture here just for an idea, the pop we saw in metal prices in the selloff experiences today, gold down 1 , flirting with 1700 an ounce, and i point that out because Morgan Stanley had big buys for 2013 saying gold is the best bets thats going to average, they say, 1853 and ounce in the new year. They are putting a lot of weight on a rally there. Dennis thanks very much. Cheryl cheap dollar. Dennis making money with charles payne. Smart grid play, by the way, smart grid, think of an additional layer of technology over the existing electric grid, bring it to 21st century, heard the term before, the company was out there, used to be a 40 stock. Upgrade today, thats why its up. I love whats happening. Margins improving. The companys gathering, getting contracts every single day. I love the risk reward on it, technicians love the chart off the double bottom. No resistance up to 14. Also, a 1617 dollar stock in the near term and a stock cheryl big utility companies; right . Absolutely. Cheryl cheer thank cheryl thank you very much. Coming up, the survival kit and why fear cent demand for gold coins soaring. Dennis plus, spot the fake. Bottles of wine that sold for thousands of dollars, and they were frauds. Cheryl i would cry. The euro, uhoh, a buckthirty, getting stronger. A stronger dollar. I think thats about yesterday. 23 minutes past the hour with your fox news minute. Breaking this hour, an american soldier killed in an attack on an air base in kandahar, afghanistan, the assault hours after leon panetta left the hourment pentagon confirms they detonated a vehicle bourn explosive device. Unsure if the attack it connected to the secretarys visit. Syria denying using missiles against rebel forces, and u. S. Officials reported yesterday the syria army fired the missiles from damascus into northern syria. A staunch ally, russia, suggests assad is losing control of the country. A north korean satellite reportedly tumbling out of control in space following a rocket launch last weekend that sent it into orbit. They are don condemning the launch, and the secretary saying the launch raises all sorts of concerns. Those are the helines, now back to dennis. Dennis thank you. Breaking news, standard and poors putting the united kingdoms aaa rating on debt, on negative outlook, the pound falling on the dollar in the wake of that. Well keep you posted on the currency trade as the story develops. Heres a good one. Imagine spending thousands of dollars on a find bottle of wine and its a fake. Thats a risk on the rise in the luxury wine market. How to spot a fake. We have the executive wine editor at food and wine magazine. Thank you for being with us. What percentage do you guess is fake . Hard to figure out entirely because its illegal, of course, but around 4 . That gets to be a lot of money. Dennis double that to 10 . The price of this high end wine, you cite a 1996 wine sold for 400, and ten years later, 13,000. Is that fueling higher counter fitting . It is. The profit on counterfeiting is growing. Its global, selling in high china, hong kong, and singapore. Dennis the myth is, the china, doing knockoff wines, but this is an inside job. Your own brethren. Not mine, but the expensive wine side, its within the u. S. And europe, and its guys who are in, you know, really into wine. Dennis prominent dealers . Current case, fbi is charging a guy, a wellknown collector, sold wine in auctions, turns out a lot of the wine may not have been what it was claiming to be. Dennis three bottles here, counterfit bottles, guys, and see if ray points out what makes then counterfeit. A nice 1923. Yes, a 1923, would be 30,000 at auction. It would sell either way, but look at the symbol, the red dot, they always stamp dark and red. This is much too light. Thats an insider thing. Dennis the bottle, the glass the glass is real. They got a less expensive wipe from the 1920s, 30s, refilled it with different wine, slap the label, and faked the label, and then, you know, tried to sell it for a lot of money. Dennis a couple other pictures comparing counterfeit with the real thing. Other general tips to look at. General tips, anything that seems out of whack, labels that seem like the paper is too young for the age of the vintage. Theres a famous one with a 1949 high end, replaced the capsule, but there was a recycling symbol on it, and its like that didnt exist in 1969. Dennis i dont know who was dumber, the guy who bought it or the counterfeit. Chips have been embedded in the label for tracking. Its really interesting. Dennis this is a fascinating segment. Thank you so much, ray, and thank you, producers f producers for booking him. Thank you. Cheryl exchanging angry words in dualing News Conference was on capitol hill today. Well bring you the late e. Latest. As the fiscal cliff looms, why many buy gold coins. The survival kit coming up. First, winners and losers on the s p, best buy a winner, big buyout on that stock. Well be right back. [ male announcer ] where do you turn for legal matters . At legalzoo weve created a better place to handle your legal needs. Maybe you have questions about incorporating a business youd like to start. Or questions about protecting your family with a will or living trust. And youd like to find the right attorney to help guide you along, answer any questions and offer advice. With an a rating from the Better Business bureau legalzoom helps you get personalized and affordable legal protection. In most states, a legal plan attorney is available with every personalized document to answer any questions. 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Cheryl republicans and democrats are holding dueling News Conferences on republican hill today. House Speaker John Boehner blaming the white house for the stalemate. I have been pushing all year for us to address this problem. Here we are in the president still is not serious about dealing with this issue right here. It is this issue. Spending. Cheryl on the other side of capitol hill, harry reid, says it is not president obamas fault, it is john boehners. Speaker boehner cannot avoid the American People forever. At some point, reality should set in. Cheryl and so it goes. The fiscal cliff growing ever closer and no deal inside. Both saying congress is christmas break may be canceled. Dennis bah humbug. Fiscal cliff fears have said demand for coins soaring. The highest level in more than two years. Edmund, thank you for being with us. When you hear that, what do you instantly think . The reason i have a smile on my face is because a lot of my friends know i served at the white house when bernanke was on the economic advisers. When a big move like this happens my phone rings off the hook. What does this mean for gold . What i have been telling all my friends is this indicates a tremendous amount of uncertainty and volatility. Dennis a piece of paper, why isnt that enough. Why do i need the physical thing it is no different than a stock or a bond. I brought some show and tell, if you do not mind. Here are two gold coins. This one, 24 karat pure gold. It is very heavy. When i was mint director in 2006, i authorized the first production of that. You cannot why those government directly. You can buy them from certain retailers and the one i bought dennis how much of this is in armageddon play . There certainly is some of that. Fundamentals are this, the fiscal cliff does not look like it is going to be resolved. If it is resolved, it only takes care of a small part of the deficit. Gold is something that you will always own. This one out piece, when you have it in your hand, that is worth 1700. Dennis wow. The only thing is, you cannot use it to buy a twinkie. It is not common courtesy. Dennis thank you. Cheryl we have the ceo of one Small Business looking to hone in on Industries Come back. Dennis apple maps back on track. First, take a look at apple treasuries. And we can save you 10 on ground shipping over the ups store. Look this isnt my first christmas. These deals all seem great at the time. But later. [ shirt ] merry christmas, everybody not so much. Ho ho ho this isnt that kind of deal. [ male announcer ] break from the holiday stress. Save on ground shipping at fedex office. I am tracing parents with your fox business brief. Mortgage rates fell again last week. The average rate is now 3. 3 . Foreclosure filings climbed to the lowest level in six years. According to reality track the number of homes entering the foreclosure dropped. Florida had the highest foreclosure of any state last month. Shouting tv ads will still become a thing of the past. New laws going into effect at midnight tonight mandating the volume of commercials has to be within a 2decibel range of the programs around them. That is the latest from the fox business network. Giving you the power to prosper. [ male announcer ] they are a glowing example of what it means to be the best. And at this special time of year, they shine even brighter. Come to the winter event and get the mercedesbenz youve always wished for, now for an exceptional price. [ santa ] ho, ho, ho, ho [ male announcer ] lease a 2013 glk350 for 399 a month at youlocal mercedesbenz dealer. Dennis time for your media minutes. The hobbit opens at midnight. It will play at over 4000 theaters by tomorrow. You loved him as president and the Golden Globes loved him even more as a movie. The fan affleck flick, argo. Your cable bill going up. Driven by rising prices for sports. Yankees yes network will charge 325 a month per home next year. I bet you fans will not blame arod. They will blame cable. The vans will grow for pricking up channel packages and letting customers order a la carte. Cheryl that is where cable is going. Apple tv. Exactly. It will all be ondemand content. I do not want to watch sports. It will be a fun story to cover in the media minute. European private jet company, vista jet, flying high. The company is finding unparalleled success in a merging targets. Joining me now is founder and chairman of vista jet. Welcome. One big deal for your company. You are finding business travelers want to go straight from china to africa. That is exactly correct. We see very Strong Demand for. 2. Transportation around the road. We see growth from africa to china. Cheryl you are saying russia is a big area. Yes. We all that. We made Business Aviation simple. We are happy to own them. We offer a simple hourly rate for our clients. We tailor a program to them. It is a threepage contract. We are the only Company Offering to fly within russia. Russia is a big country, as we all know. It was a very important milestone in the history of the company. We have a policy of only flying friend new aircraft. The myth of this industry was to deploy 20yearold aircraft what we said is those are the booming targets. They should get brand new aircraft, rather than old ones. You are doing fights to new york and los angeles. You do have a presence in the United States. Of course. We are picking up u. S. Clients and flying them internationally. There is a lot of business for u. S. Corporations who do not necessarily want to bring their own aircraft. Cheryl what is next for you . Are you going to look to maybe expand, maybe get larger jets . We feel that the Global Express is the sweet spot for long range international travel. With the soon to come, but easily gets you point to point anywhere on the planet without any stops. We believe that the top end of the market is not a scalable market. Our motto lives off the same exact air model for all of our clients. Cheryl it looks like a nice evening in london. Thank you very much. Dennis it is a quarter till. Every 15 minutes, we have stocks now. They got a downgrade today. They really had a nice run. Take a look at how the stock is faring. They are up about 30 . It had a nice run. Now, Deutsche Bank is saying with that 30 runup, not the shares are pretty much overvalued. They are moving to a sale from a hold. This is why you have Deutsche Bank obviously putting some downward momentum on . Lets take a look at the major market averages. We are still higher for the week. That is certainly something we will continue to watch and commodities. Gold has been hovering right around 1700. Cheryl a lot of action and the gold contract the last couple days. Cheryl baths on the iphone are headed in a better direction. Apple finally approving the Google Program for its app store. It is faster than the previous version and includes a new info sheet. Apples attempt at maps has been a massive disappointment. I instantly downloaded it this morning. Dennis one key thing we will now know when apple upgraded and wiped out google maps, 100 million customers instantly lost. Will they come back . Cheryl i think the fact that you have so many people that were so critical of the apple maps application, it seems to be a really big win for google, at least publicly anyway. Dennis blue shield of california blaming obama. Is that spike justified . Cheryl General Motors unveiling its new line of pickup. Jeff crawling all over the new gmc sierra pickup and the Chevy Silverado. What do they say about gm stock, what do they say about the new trucks, we will tell you in just a moment. [ male announcer ] you are a business pro. Governor of getting it done. 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This is new video just in. Spin it how are you doing, sir four that how are you feeling about a deal . Optimistic . Still in progress. Dennis lori rothman and adam shapiro will have more on those talks at the top of the hour. Cheryl Washington State talking bucking the National Foreclosure rate. The office it was for southern california. Home sales volume was up 14 year over year. California governor gerri brown is not wasting any time. The 74yearold governor is undergoing radiation treatment. His oncologist says his prognosis is that is your west coast minute. Dennis general orders is unveiling a new line of pickup trucks. Jeff flock has the story. Jeff that is the new Chevy Silverado. It is the number one seller. It has these new engines and it. They will shut down four of the cylinders if you do not need all the power. Saves on gas. Very good. This harkens back to the old days. It was a loud unveiling. They flew up some rocks. It was kind of a cool thing. Gm already has, 250,000 unsold pickup trucks. Mark royce told the exclusively that the problem is the competitors have all spent a lot more on incentives and gm did. We missed november from an insiders standpoint. I can tell you that we are meeting the market right now this month. We are selling them. Jeff they have now exhausted some of that inventory. He will not say exactly how much. These will be on the market sometime around the end of the first quarter. They have not said exactly how much they will cost you. The fact that when the government divested their aig stock, the stock went crazy. They would love to have that happen we take a 15 billion that right now if we unloaded it right now. Cheryl i am sure i would be if i was that gm. Thank you very much. Get a load of this one. Facebook interns have a better status then most working americans. It is about 67,000 a year. They spoke interns make nearly 25,000 more than the average u. S. Citizen. Dennis i am glad for those kids. After a month long run from the police, Antivirus Software manager is back in the u. S. Cheryl leaving his fortune behind, lori and adam will have the details. Stay with us. There is no massproduced human. Every human being is unique. And there is one store that recognizes it. The sleep nuer store. The only place in the world youll find the extraordinary comfortable sleep number experience. An exclusive collection of innovations that totally individualize your sleep. Perfectly comfortable pillows that adjust to your size and shape. Temperaturebalancing bedding. Dual warmth comforters. All designed around the sleep number bed a bed with dualair technology that allows you to adjust to the support your body needs. Each of your bodies. In the name of human individuality the sleep number collection. Discover how our sle professionals can individualize your sleep experience exclusively at one of our 400 sleep Number Stores nationwide. Sleep number. Comfort individualized. 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