Transcripts For FBC Mornings With Maria Bartiromo 20160211

Holiday. Thats one of the issues. Recently the dollar has been going up and yen down. Thats pressuring the markets. Investors looking for safety in gold this morning. Gold prices up, take a look with a gain on the session of 2 and a half percent. We are following, of course, the latest developments and the race for the white house. New hampshire christiesy, former hewlettpackard ceo Carly Fiorina sus paining campaigns yesterday. What that means for the republican field coming up. The stop story today is Global Market selloff underway. Read arrows across the board. U. S. Stock market futures point to go tripledigit loss when trading began this morning. As we showed you, oil one of the cull pits, the nasdaq down 80 points and oil prices pushing below 27 a barrel with a decline of two and a half percent. On a day like this, kevin kelly, what do you want to the with the portfolio . Kevin you dont have to go much. Theres not a lot of conviction in central bankers and thats the problem. They propped up this market and right now they dont think it can be propped up anymore. Central bankers were going to come in and save the market and prop up with monetary stimulus but thats not happening anymore. Maria yesterday janet yellen was very clear. Dagen and i noted that this was probably the most important comment that she said that if, in fact, things deteriorate further the path to lower Interest Rates is there. Let me ask you, how many trals is wppn . 112. Maria what can you tell us about the Global Economy right now . Its muckey. Theres a lot of volatility we are seeing this morning and there will continue to be. If you went back in the sense theres a little bit thats knew because its increased uncertainty but similar since about 2010, 2011, we saw a short snapback following the crisis of 2008 and 2009. We is that steady growth. We look at our own results. A close period. Its safe to say that each year we have had results and 2015 was no different. Having said that, we are prepared for low growth probably gdp around 3 nominal, inflation is very, very low, no Pricing Power and focus on cost. We think thats the wrong way for clients to go but youre backing against a headwin here which makes it difficult to convince people of something else. Thank god theres only two days for the rest of the week. Wondering, what the hell did i do to get up so early. The irony about it is you would have said tax cut, consumers feeling better, theyre still repairing the damaged sheets that they had in 2009 and 09. Maria but are they spending their money . Companies are, in fact, not investing the way you would like to see in a recovery. Central bank cannot explain apex remains constrained. Maria i think its because of the uncertainty, dagen. Dagen and i think that theres something more going on in terms of investors and its something that kevin touched on that investors are losing faith in Central Banks around the world. Janet yellen touched on this on her testimony. Sounded very downbeat on the economy, acknowledged Inflation Expectations are easing in the United States and can Central Banks do anything to stop volatility to stop what looks like Global Deflation with negative Interest Rates. A lot of the recent selling started with the going to negative Interest Rates at tend of january. Dominick right now it literally was low as it was in 2008, maria. Markets 40 in 2008. Investors are feeling as bad if not worst as 2008 and the reflect was going on in the world and that clearly is affecting spending habits and spending habits. Kevin where did it go . What it led to was investments and what it did it expanded the multiple. If you look at what happened in the u. S. , we went from 15pe on the market all the way to 19. You had Companies Trading at alltime high and they were buying back their stock. They didnt put it in. Maria you are seeing an enormous amount but youre not seeing the money go into those deals were growth. Another platform. Maria you acquired growth. Yes, the way we look at deals, we capitalize, we capitalize cost efficiency and when people come in with revenues, we look at them as if they came from mars. Theres a sort of philosophy that you focus on the tangible costs rather than fluffy. The other thing you have hightech disruptors and shortterm activists investors. They say theyre longterm but their impact is shortterm. You take those three things, add it to the worldwide economy, Pricing Power, you have a cocktail which says, we are just going to carry on in the same way with low growth. Maria well, now that bank of japan is negative, perhaps we see others doing that. Just the comment that janet yellen even referred to it, we dont think we are going to have to go negative is worrying. Dagen all of the negative rates, by the way sweed incut rates even further below zero overnight. It is throwing gasoline on a fire where people feel like the Global Economy kevin congress bought the negative Interest Rates to her that theyre looking maria thats a good point. Kevin lets make that clear. One of the problems that investors are worried because three of the new governors of the Voting Committee are hawks and not doves, everyone has interpreted as fourrate hikes this year. Rate before christmas was wrong . [laughter] kevin yeah. Dagen they have no control of whats going on. Dominick she couldnt have been more doveish yesterday. Maria easy rates, lower rates for a long time. Dominick she would only raise Interest Rates if the economy called for it. I dont know what else she could have said that would have been more doveish. Kevin look at the economy here and the jobs number, you have these governors that are look at the jobs and theyve never been better. Look at the number. Its crazy to think that we are doing so well over here. We used to be the economic straw that stirred Global Growth and now Global Growth is stirring us. Maria you have a Federal Reserve which is afraid to continue a path that they put in place at the end of last year, that tells you theres a real question of how strong the economy truly is. You have the strong dollar which is driving down the reported earnings, not looking at the underlying earnings of u. S. Corporates, that makes them even more cautious. Maria has been a major issue and the price of oil. Dagen the tenyear treasury fell off the cliff, that tells you that people think the economy is going down to the tank. Kevin market is a forwardpricing indicator as well as the tenyear treasury. Dominick theyre not horrible, theyre not that great and topline growth is nonexistent. Maria right. Dominick we can keep hiring but only if companies have sales to justify those hires. Dagen seriously, people like mcdonalds right here because it looks safe and if you look at the price action of the consumer staple companies. Maria health care did well, technology did well. Today it doesnt feel kevin 29. 28pe, thats pretty high. People are flocking to the safety which is health care, very defensive and going boo those brands that they like. That action is also driven by not concerns, by a focus on potential further consolidation and consumer staples. You have the zerobase budgeters out there. Fbi is 200 billion, 190 billion, kraft just under 100 billion. The brazilians 3g, market power of 300 billion, theyre in a position virtually to the anything in the consumer area. That valuation is driven by whats happening with the World Economy but also driven by not concern but view that there would be further consolidation to get more cost. Maria one of the issues is china and whats going on in asia. Hong kong 4 overnight. When you look at markets throughout asia, has you seen a slowdown . Yes, theres been a slowdown. We used to grow one half gdp. My view its 4. Maybe even a little bit less. Maria yeah. There are expectations from 11 to 6 to 4 even 3 . Some people saying to me, major multinational sort of industrial company, theyre very good guide to what the economy 1 to 2 . I would say 3 to 4 . We are growing gdp. We were going double digits and thats gone for the moment. But coming back to fundamental point t next approximately consumers will come from asia. If youre thinking about the future of these companies maria longterm. Dominick last quarter for the First Time Ever the service part of the economy in china actually crossed over 50 . This is complete reversal of the China Economy that was all Manufacturing Base converting to service base, health care is a big priority there and that would stabilize their economy in the long run. Maria theres no doubt about it. Moving the huge tanker which is china doesnt happen overnight. Man, are we feeling them in the u. S. Dow futures plunge, then weve got other news, big deal in health care. Twitter falling to new lows this morning after fail to go show any user growth for the First Time Ever. Take a look at what twit twitter has to do to stay relevant. Back in a moment. We live in a pick and choose world. Choose, choose, choose. But at bedtime. Why settle for this . Enter sleep number and the ultimate sleep number event, going on now. Sleepiq technology tells you how well you slept and what adjustments you can make. You like the bed soft. Hes more hardcore. So your sleep goes from good to great to wow only at a sleep number store, right now save 50 on the ultimate limited edition bed, plus 24month financing. Hurry, ends monday. Know better sleep with sleep number. Maria welcome back, Global Market selloff that morning. We are following the latest on the 2016 election. Carly fiorina and new jersey Chris Christie dropped out of the race after disappointing results in New Hampshire. Lets bring in emily ekins. Thank you very much for joining us. The filed gets smaller, whats the impact . Well, i think its not just the narrowing field but also what happened with marco rubio in New Hampshire. After what happened in iowa people expect today surge and that didnt materialize. People are wondering whats happening with marco rubio declining in the polls. Maria marco rubio had a tough night because of Chris Christie and the fact is Chris Christie didnt benefit from it. No, he didnt. Thats whats interesting. Marco rubio underperformed for about 4 points based on what we expect on the polls in New Hampshire. Chris christie, he didnt really gain much from his attacks on rubio. Who i think actually will benefit is ted cruz. Maria why is that . Well, this is what people dont understand is that marco rubio is often viewed as the more establishment candidate and ted cruz is viewed as the more outsider candidate. In reality, both candidates draw very similar voters that have similar moral profile and typically when political analysts look at voters theyre looking at things demographics and political id, they dont look at the actual values that those voters have and i actually was able to collect a bunch of data on a National Survey and found that rubio and ted cruz supporters who are Tea Party Folks have a strong desire for personal accountability and that tends to lead them to want limited government. Gop is having a civil war over really what is the role of government, do we actually want to lower spending and actually reduce taxes. Now, trump is distracted from this but it still exists and right now jeb bush is not that alternative, so a lot of marco rubio supporters, they do actually have this strong desire to actually reduce the size and scope of government and right now the only alternative is ted cruz. Maria dagen. Dagen if you look at the democratic side, its the opposite sentiments t more government the better t more money that the government takes away from those who are successful, the better, and actually success is evil the message from Bernie Sanders. Bernie sanders look at his popularity. 6million in 24 hours after the New Hampshire polls closed. He is outraising Hillary Clinton in Silicon Valley among the Biggest Technology firms. He raised more than 100,000 in the 105,000, 10,000 more than Hillary Clinton. What does this worldcom to that you have Technology Professionals give money to socialists . Individual contribution dagen individual contributions but fightening, nonetheless. Maria youve been a supporter of president obama, do you think this tells us as to how much support Bernie Sanders is getting . We are going through revolution, we are going to post 20082009, post the concerns about the establishment, the banking establishment, financial establishment, we are going through a populist revolution so you see it in america, you see in uk with i you see it in spain and italy, this is a natural phenomena that we have seen before. The big issue is how important is this going to be in terms of real political power, theres a long way to go yet and we have seen a lot of fluctuation postiowa even in the contest of iowa, im sure we will see a lot of fluctuation to come. I would still hold that Hillary Clinton will be the democratic nominee. Its open season on the republican side, we see. I still think that rubio has flubbed it but originally kasich plus rubio would have been the most potent combination against hillary, but we will see. Maria yeah. It may play out differently. The republicans would be very pleased if sanders was to get the nomination. Maria i think thats right. We will take a short break. Em illly thank you very much so much. We will be right back. Stay with us. Maria welcome back, fbi agents surrounding the remaining four protestors currently occupying a wildlife refuge in oregon. Cheryl this story quickly developed overnight. Negotiations are underway for the armed protestors to surrender after more than 40 days of occupation. On a Conference Call the protesters say they are prepared to turn themselves in as early as today. We will keep you posted after that. Well, the crew from hell is returning back, the passengers were happy to be back on dry land to say the least. Listen to this. Horrible, horrible, i have to tell you it was extremely bad. Ive been in bad situations in my life that was the worst. Cheryl that will be investigated for damage. Twitter reporting Fourth Quarter earnings. Zero new users, shares falling more than 6 in the premarket, maria. Everybody was looking for in the company and did not deliver when the earnings came back to you. Maria twitter is an interesting story martin, when you look at the story theres really no growth. Do you sense that theres got to be some kind of a deal to give this Company Scale . How do you see it . My view would be no. Ive always viewed it as being medium and not a branding medium which is somewhat controversial. If i look at spending when it went 150 million in 2014 to about 225 million, we see strong growth. That was when user profile was increasing. But for clients are looking for pr coverage and distribution, i think actually twitter is extremely good. Now, twitter in terms of magnitude, google was 4 billion and facebook a billion, yahoo 130 million. Up about 10 . The other one that was really very strong was that was strong this year. We are forecasting that would get 250 million. Yahoo search, thirdbiggest medium online medium after google and facebook. Aol is quite interesting. That was a deal that a lot including myself found difficult to understand but seems to be getting a fair bit of attraction from what we see. Twitter, i think, endures out. Maria i want to get your take on how companies are spending their dollars, are they going to essential media types. There are very few places to hide this morning. Twitter obviously expected to be down. We do have earnings driving, better than expected earnings but we will see on a market that is is expected to tradeoff 250. Stay with us. We will give you the latest, nasdaq down 75. In new york state, we believe tomorrow starts today. All across the state the economy is growing, with creative new business incentives, the lowest taxes in decades, and university partnerships, attracting the talent and companies of tomorrow. Like in utica, where a new kind of workforce is being trained. And in albany, the nanotechnology capital of the world. Let us help grow your companys tomorrow, today at business. Ny. Gov maria good morning. Happy thursday, everybody. Crafting at the opposite youre invested in talks. It is thursday, february 11th. Brittany, Dagen Mcdowell did recon capital kevin kelley, diversified financial. Our top story this morning my Market Selling across the world. Expect little condo close to 300 points at the opening opening of trading about 2 . The comments yesterday for a bed sheet janet yellen. She will be back on capitol hill this morning speaking to the senate aging committee. Yesterday she basically said if the economy worsens further there is a path to even lower Interest Rates to reverse them at the Federal Reserve started at the end of last year that is not played well. Averages today on track for the fifth straight day of declines by more senior year declines across the board in the european embassies. The cac, dax all down 3 . It is financials leading this decline this morning. Morning profits mainly stargate soundtrack right now done better than 10 . They been all debates lower. The numbers regulators saying that they will feel in a deterioration in the economy through the lending or do of course as Interest Rates at these levels that is not helping the banks. The hang seng index reopening after a holiday sharply lower. The market was closed for the lunar new year. The hang seng index down 4 overnight. Japan has a holiday this morning. The nikkei average is closed. Japanese yen with a 15 month high across the dollar. Its been all about pushing nowhere. They complete reversal is also pressuring Global Markets. Crude oil another problem. Dipping below 27 a barrel. Phil flynn we go back and forth about the benefits of oil with a positive for consumers. Frankly it has been more of an indicator of weak demand across the world than anything else this last year. Absolutely. But as soon as we get today. If there is a storm coming and that is where they can and turn, we see riskaverse shot all over the place. Not only in the weakness in oil, you see it in the price of gold. We see gold search to the highest level weve seen in over a year and money is running into it like crazy. Why are we wanted to go . We want to go when we have no confidence in banks. But the big event there getting hit hard, concerns about low Energy Prices raising more defaults. It is pressuring the right now. You mentioned the surging yen. People are panicking right now and running to every safe haven they can get their hands on. Gfi yellen saying she is worried about a strong dollar. Theres a lot of good iron of what she will do this topic. What began searching theres a lot of talk of intervention. A wild day. Lets hope cooler heads for that at some point. Maria she is citing risks to growth that they continue because the fact is as the market selloff, i worsens the cycle because it impacts peoples sentiments. It is. That is what we see today. She didnt get the market the type of confidence we were looking for. It is obvious that said made a mistake or raising rates in the markets reacting. Real debate on that. A lot of people feeling that way. Joining us right now to talk more about this. Investments ravages and the wall street journals john hill said roth. Thank you for joining us. Your reaction to the global selloff this morning. Is a continuation of stresses weve seen this year. We need some stability and expectations raising rates, lowering rates. They are all over the place and have an impact on a number of assets around the world. Of musty see these markets try to find a bottom of the stabilization in china, theres no reason to believe the volatility ends. Both of these things, whether its china going on now for quite some time. I suspect this whole notion of a currency devaluation of further pressure what can you knew she rear its ugly head. As far as oil, supply and demand is a very very clear. Maria John Hilsenrath come yesterday when we try today fact, there is no getting away with the fact she was uncertain about the economy. She could start lowering Interest Rates. How did you read yesterdays testimony . We are in a very strange feedback loop. Except he was saying she is concerned about the ability of markets and what that will do to the economy. The markets turn around and say janet dove to his concern sell off even more. It is kind of reverse. On a day like today, we need to remember is some of the things yellen said yesterday. The job market has been improving. If you look beneath, core inflation is pretty stable endquotes after being slow, looks like its taken a nap before scored her. There is a lot of anxiety. I dont see the kind of fundamentals driving a collapse the way we had into a thousand seven. Does this feel like 2008 . No. Just back to oil. Is it a demand problem or supply problem . Chinas imports are up 8 . Oil imports up by 5 . Iran just undercut the saudis oil 10 . Maria you dont think its demand issue . It is a huge supply problem. Can i Say Something about china . Its an extremely important part of this, but if you have commodity producers putting men mind for drilling and whatever else the dx dictation that china is going to grow 10 , that is not good enough and that is one of the sources of the supply problem. Its not going as fast via maria 10 is different than 5 . Thats a big deal. Particularly the second largest economy. Not only does it impact emerging market, but it also develops and markets. Look at australia, canada here this is a worldwide problem because theres a lot of disinvestment hoping china would continue to build redundant factories, bridges to nowhere. The problem is now theyre trying to transition to a consumer led economy. It isnt easy or smooth in being reflected in the Global Commodities prices as well as indices. Maria i push back in what you say, john. I dont think the economy is not strong. The u. S. Economy. I know we are the best game in town. Dont get me wrong. The best store in the Global Economy which is low down. I think they feel like theyre about to get worse. They are not investing in businesses right now. They are borrowing to do m a. When you look at the industrial side, that we know. Its in recession because of the collapse and commodities prices. Even the Services Part of the economy. Its not that vibrant. Berea, i would turn down what you said. What i am saying is i dont think it is all that week. I dont think it is as bleak as we feel it is when we see markets all over the world. Consumers yellen said yesterday the average American Household is getting mugged out of dollars and they drop to the oil prices. Maria we know what is happening on the other side of the equation. They saved money on oil. What oil. Whether they do in terms of health care . That money went out the window. Corporate Balance Sheets, stronger. If you look at the s p in 2014, it basically shrank. If you thought it was one company, buybacks and dividends exceeded retained earnings. The fact delay the corporate base shrank in 2014. Whether they borrow money or his retained earnings, it goes and dividends and share buybacks. That is where the premium is in terms of share price. Given the short term. They have used cheap money to buy that their own stock and improve earnings. Growth has been really a name that. Dynamic. The data is underwhelming. With elected oil or economic data, the question we should all be asking ourselves is to the underlying fundamentals justify the events we see in the markets. This is where i agree with john. I dont believe the fundamentals are pointing to armageddon. Its probably about fear. One other thing i will show out there is in queens in the data that wages are picking up a little bit. I dont want to sound like i have a rosy view about anything. Theyre now going up 2. 5 . That is not great, but its better than to certainly better than 1. 5 or nothing. Maria thats a great point. The fact the Balance Sheets are strong and the corporate or an individual effect there would be really positive once there is a catalyst to turn it around. But getting us over the fear factor we arrange for your volatility. Look at where we are in the Business Cycle. Its come a bit, clearly maturing. Over 200 valuation certainly not cheap. Off the margins at peak levels. They recalibrate exit nations. This is all about adjusting. Sort of adjusting to a slow growth world. Coming to the realization that growth we have clearly was unsustainable but the system blowout. The growth we are going to get and i see no reason for an upside breakout. I dont think theres a downside breakout either. I see no reason for the slow growth scenario. Low inflation to change. If rates are going to say about longer, that continues in terms of growth and inflation. This is a problem we will have talking about this stuff. People in the business of talking about markets. A world where we dont have a market and were not going way down. It will just be kind of going nowhere for a little while. Maria we believe it there. Good to see you. John hilsenrath, always a pleasure. The dow looking at a loss to the opening trading this morning in about two and a half hours. Look at the yield dropping to 1. 62 . Yields are dropping, indicating the sentiment that things are pretty vulnerable. Back in a minute. This just got interesting. So why pause to take a pill . And why stop to find a bathroom . With cialis for daily use, you dont have to plan around either. Its the only daily tablet approved to treat erectile dysfunction so you can be Ready Anytime the moment is right. 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This is a big story in italy dealing a heavy blow over all. All this started throughout the day yesterday into the night arresting all the pics of 109 suspected members who sat on warrants for extortion and many other crimes. While the zika virus is spreading in the United States, the first case has been confirmed on the state of alabama. The 20 state in the nation affect it. Officials say the person traveled to a country affected by the virus. So far 59 cases here in the United States. The coldest air of the season set to hit the north east just in time for an ontime day. Forecasters say temperatures will plunge by 10 to 20 degrees below normal to make you feel even colder. Coldest temperatures in single digits. Back to you. Maria sure will. Mark will. Mark is selling off as funny. We will take a look at where we stand with the Dow Jones Industrial average expected to be down about 300 points. Martin sorrell is joining us this hour in terms of markets. Do you see an impact when you see a troubled market . Putting the economy aside, does not dictate sentiments on terms of what they will do, how to allocate money . It has had an effect since 20102011. I would say since 2011, most of our clients have been running their business and the exdictation the world by gdp growth is tepid or moderate. Clearly, greater concerns about the low Economic Growth will make it more concerned. Geopolitical issues we havent touched on in the middle east, iran or whatever it happens to be, obviously impact thinking as well. I think broadly on the Business Council, but always fascinates me is the Business Council for gdp growth in the last three or four years has always been below the market. Goldman, imf. Maria they are on the frontline. Exactly. As they go through the year, the forecast comes down. Usually we kick off and come down over the last three or four years. It is embedded into the psyche. Corporate consciousness was changed by 2000. It has changed the way more than consumers, to consumers, the rate of corporate behavior and think. Maria you at the eight years after that we have some kind of traction in terms of growth. Youre just not seeing it. At its very sure. The average length of the ceo is six or seven years. The people that we must stop in jail with his two years. Calling yet it is a word more than it was 18 months ago. So with that sort of change, its almost political. There is a rain of four or five years in your position. Their thinking is very much determined by your tenure and ironically the companies that do well in our views. Those old but voting control with a very good example. Why do they think longterm . There is no fear of making a decision for when its turned out. You see facebook, google. There is a search and see about longevity and some people would argue. Maria we want to point out things are deteriorating. Take a short break. We are not forgiven the Global Market sell off this morning. Stay with us. Was engineered. To help sense danger before you do. Because when you live to innovate, you innovate to live. The allnew audi q7. A higher form of intelligence has arrived. Maria welcome back. Tough warning to smyrna for stock prices at the lowest of the day down 300 points in the dow industrials have asked ellery did. Nicole petallides looking at the premarket movers. Were likely to see all of 10 factors to the downside. How about some highly love names such as matlab which is the darling of 2015 and annual high of 133. Closing value of 88. 45. The 85 range. A keen eye on alibaba which today is looking down. Sixty dollars then theres also starbucks. Today is one of those days they celebrate bank across the high momentum stocks. Starbucks 55. 14. Youre looking in the 53 range. I know you had time earlier to hit twitter. Maria. Maria thank you. Final thought from you. I know youve been looking at the difference in terms of allocating money on the part of your clients digital versus traditional. Worldwide, the averages about 25 , 30 for the digital budgets. We are sort of over indexed against the market. Our view is a should be around 50 . Defining what is still a nondigital world becoming increasingly difficult. It is a good way of indicating the trend. Clients now are moving getting a third of the budgets. Some are even more intense. Another packages come even more intense with the usage. Clearly, if you look at our numbers, we manage 18 billion. 4 billion of that is the biggest now. Google has a four to one advantage over face. Facebook was up a 50 last year. Google search remains in my view the most effective. People starting to go into the ad. Google, facebook all talking about that is the wave. The reason why facebook is conduct is obviously in video. It is smartphone, online, video is search. In high penetration tv markets like, for example, brazil or italy you see tremendous increases in youtube and facebook video. The problem is about measurement. With 20 of that with the two companies emerge to build a better measurement. Maria absolutely. As a combination of see products. And customers. Every ontime arrival is backed by thousands of od employees,. Who make sure the millions of products we ship arrive without damages. Because od employees treat customer service. Like our most important delivery. Od. Helping the world keep promises. Maria dead thursday morning, everybody. I maria bartiromo. Governor Global Markets up this morning. Thursday, deborah levens. Dagen mcdowell, kevin kelley and diversified financials domenic cavallo. Braking is right now. Mark is going off around the world. Rough day at the office. Here in the u. S. In the futures indicated a decline of about 2 at the open. This right here is the lows of the upanddown 331 points on the Dow Jones Industrial average. Major average on track for if it day in the road to clients in a dog really came to a head yesterday when she janet chuck n said there is a path to lower Interest Rates. Reversing what the fed has dirty done at the end of last year. Coming oil prices. Take a look at where things can recruit a break in the 27 a barrel. Over the last five sessions, oil has deteriorated another 16 down 4 this morning. The selling is even more dramatic in europe. Caci, dax down 3 . Financial is one of the issues here. Bank stocks face the sharpest decline. Oil stocks following oil prices lower. In asia overnight, the hang seng was on a holiday yesterday. It reopened sharply lower. After close for the lunar new year. In japan, they are celebrating the holiday. However, look at the japanese yen hitting a 15 month high against the dollar this morning. This is what is rattling asian markets as well. The yen at this high level. Investors finding this morning in gold. Backup 1200 an ounce with a gain of 4 . Right to the cme group in chicago. Phil flynn standing by. Oil as well as school. What can you tell us . Absolutely. Unlike anything weve seen probably in a couple years we hit a new high. The highest level since last february and thats a lot of concern. People when they lack confidence in banks, central bankers plow in a big way. We also see it loyal knocking on the doors of the lowest price of the year. If they take out 2615, theyll be the lowest since 2003. They havent quite done that yet, but they knock on the door right now. The other thing is you see risk aversion in a major way across the entire commodity likes. What you see in the bond market is absolutely incredible. We just saw the u. S. 10 year treasury yield falls to 1. 57 . Thats down over 14 basis points on the day. Despite that a lot of traders look to for confidence in the market. Spread between the twoyear and 10 year note is fairly flat and down at the tightest level weve seen in 2007 before the financial crisis. There is absolutely no doubt ace on the news today. Theres a lot of fear in the marketplace. Whether that is justified or not, we have to see if janet yellen can send us a vote of confidence. Back to you. Today she is speaking with the Senate Banking committee. Also watching that of course. Stay with us. We want to come back. Jo ling kent join the conversation. We did well without care. Doesnt look like it today. Exactly. The demand rate now for routers and Security Products going pretty well. They also issued a buyback of 15 billion. Good Strong Revenue number at 11. 8 billion. All of this beating expectations. Doing pretty well. Twitter is the other side of the story, not necessarily performing, adding new users. You see the guidance, which is the linchpin for a lot of these companies guiding. You see this continuing. Jeff darcy on the call last night saying i can do it. Just give me more time. They are currently occurring right now. Im glad you mention cisco, one of the companies that is the underpinning of the economy. If you see Companies Invest in things like routers, that is appropriate hope. That is a great ray of hope. If you look at the market, you can see refuge in largecap technology. Look at google, microsoft, these are companies that have the cash on their Balance Sheets or they can continue to do buybacks, go and acquire other companies. Theres a differentiation between cisco. We do things to reduce stock prices. The problem is so much cash on the Balance Sheet that they can do other things as well as grow organically. Twitter is losing 90 million. Something about twitter that speaks to what Martin Sorrell was speaking about. They still have an increased bid on twitter last year versus the prior year and it was driven by video. The revenue was up 48 thanks to the popularity of video web. Yes, user numbers are struggles for twitter, but the user base is so valuable enough they can boost revenue by 50 . Thats very fair. They are desperately to improve their platform. Focusing on lies. You have to look at what twitter actually is a 300 million users compared to a billion users. Maria and facebook, too. A limited amount of advertising in this environment. Google and facebook as one into a nospace. Space. You can do some Dollar Stores the twitter site. You are really third, fourth in life. To change in googles armor is they dont have social media. So they could acquire. It hasnt resonated. Are you on google plus . I checked to play him. Lets have them break out google plus average users and compare that to twitter. Maria ill bring it back to something. You talk about managed talk about managed companies with a lot of cash on the Balance Sheet. Some names like apple with a lot of volatility. You look at a 10 year right now with the yield of 1. 5 and change. And then you look at the yield on some of these companies. The yield on the s p 500 is that 2. 25 . You really have to start thinking about yield on stocks versus what you get paid to on treasury. If you can do its volatility, but starts to look good. A market growing faster than u. S. Economy. You can seek refuge there if you can hold over the longterm. We know that his longterm investors. In the short term you dont want it that way. Dagen if youve got guts, but down the road. Train to you to look at specific levels. What are the Technical Levels you look at to indicate if we go below those . We talked about this on post shows. We are now sitting between 15 on the lower 20 cash and portfolios. The next level if he and 70 on the s p 500. It is that 18 away. Today we will see where well been and where we settle in the afternoon. Chances are good another 5 to 10 cash. You dont want to go 100 of the market. You dont want to break up want to wake up and look at features and then done, throwing in the towel. That is how you get hurt. Ease your way slowly out. You can ease your way slowly and when you get comfortable. If you are waking up, it other professional run when that is not what the plan was. If its not structured in a way you cant handle the risk and you pay somebody to do it for you. We have new clients come in the door going back i tells me i should be patient. This is longterm. When the Freight Train is coming at you and hundred miles an hour to make it out of the way. That is what i mean by easing out, slowly rebalancing for olio until you get to your comfort zone. You dont want to make this massive equities. Youll to earn doing it. Maria at the same time come you dont want to get rattled by day today, not the month. If youre a believer in the longterm growth of the companies youre invested in, i would push back and say about, i invested in this for a reason and thats not what happened in a sixmonth period. You can build on health care, short energy. You dont have to be in the broad based overall market. That is what we are seeing. Break it seems like this in months and quarters like with out over the last two and half quarters. Logic is out the window. I need to preserve my principles. First we have to cut people off the ledge and show them with good Quality Investments and weve been disappointed about taking risk. That calms them down and lets them get through the period. The jack canyon. Look at these european markets. These are fullblown horrible bear markets. Germany is down almost 30 from its high last year. It is at a fouryear low off more than 22 . The entire world has been telling us that this was going to happen. You listen to every equity strategist to tell you screaming by europe and japan. If you listen to these people six months ago, you wouldve gotten toasted. You have credible people on the program that called the market. Some people were talking the same way about the u. S. Market at the end of last year and they turned negative after the market. The dax is trading at 10 times with a 4 yield. Mercedesbenz doing exceptionally well. You have bair, one of the best Health Care Companies in the world. Some of the top five holdings. They are indiscriminately punished across the board. That is what is happening here, there, everywhere. One of the issues when you want to know, you saw what you can sell. And perhaps theres some of that going on here as well. Areas. The other thing because at the low Interest Rate environment weve been in, people have been searching for yield, looking to take bigger risks to get some type of a return. This is when you get into a problem with that. When you have a market like today, the portfolio looks a lot more risky. People start to panic because they have more love for each than they thought they had and that is when you see these type of moves. The concerns right now we seem to have leveled off a little bit. When you look at what is happening up 40 in a day. The yield curve between 10 and two at the lowest level since 2007. Theres a lot of fear and we have to come down. That is a time when smart investors make the best decision when theres a lot of fear and blood on the streets. We will be watching. Dont just write down 300 points at the opening of trading. Phil flynn, jo ling kent, thank you very much. More market selloff coming up at futures pointed to a sharp decline at the opening of trading. The republican field narrowed with chris chris e. And privacy arena and in the campaign for the white house nomination. Former candidate Mike Huckabee will weigh in when we come back. Stay with us. With creative new business incentives, and the lowest taxes in decades, attracting the talent and companies of tomorrow. Like in the hudson valley, with world class biotech. And on long island, where great universities are creating next generation technologies. Let us help grow your companys tomorrow, today at business. Ny. Gov maria two president ial hopefuls got been out of the race. Carly fiorina and Chris Christie called it quits. Joining us right as former president ial candidate in arkansas governor Mike Huckabee. Good to see you. Thanks for joining us. Thank you, maria. Maria the field narrows. Youll you endorse . Right now a lot of these guys are friends of mine. Frankly it is more of the voters to make the decision rather than me try to make it for them. I reserve the right to make an endorsement at some point. Right now it is a bakersfield and a lot of fun settled play in South Carolina. That is wide open. Maria let me ask you about the story at the moment. The top issue for voters has gone back and forth. Economy Jobs National security. We are back to the economy jobs at the major global selloff this morning. What should people be thinking about and do you see a plan out there to really move the needle and Economic Growth . Berea, one of the questions people will be asked in and i think its driven a lot of discussion of the race. Who the candidate site for . A small group of the donor class, the investors or will they fight for the working people, the folks who have been really got punched by job sellouts and the fact that jobs have moved away to mexico, china, other places. Quite frankly theres only a few candidate and are completely funded at the same donor class defined democrats and republicans. One thing i think you see is the reason that Bernie Sanders and donald trump have attracted intense following is because neither one of them are funded at the traditional public donors had a lot of americans find that refreshing, even exciting. Dagen Mike Huckabee, it is Dagen Mcdowell. Good to see you. Look at South Carolina. Bluecollar evangelicals are today go for . Trump or cruise . It is a copout toth said. They have to be careful to not go into vulgarities. Ted cruz has to be careful is not exposed for the fact is essentially funded the same corporate donors that have funded all of the democrats and the people he rails against. That is going to be his own ability they are. I think it is going to be, whether donald trump can come in and remind them convince people hes going to be fighting for those folks who have been hurt by bad trade deals, who have been hurt by jobs and wage stagflation of the past 40 years because for the bottom 90 of american workers, wages have been stagnant for 40 years and they are feeling it. All the happy talk that president obama can give her others can give simply doesnt translate because they know what they are paying for education, for their homes, the bread on their table. And theyre frustrated by that. Governor, the real question voters want to face is what are we going to do fiscally . Weve got 19 trillion deficits going on right now. 55 trillion unfunded liabilities. Central bankers can stimulate the economy. Who is the candidate in this race that is going to implement fiscal policy to lead to growth in this country . Well, back i drop out. It came as huckabee. He had this idea called the fair tax to rid ourselves of all the taxes on product dignity. That is what is killing us. When you punish people for working and investing, punish people for saving and selling them taking games in the something else, which is what our tax system does. You dont stimulate the economy. You really subjugate the economy to subsidies. So that is where i feel like theres got to be a different discussion. We cant raise taxes. The only way we can get out of demand growth economy. Im not sure we can grow the economy if we stay on the same economic practices that have essentially stymied the economy, which is what we have done. By the way, Bernie Sanders answer of raising taxes and giving away stuff, i like a lot of what he says as to why hes upset, and that his solutions would be destructive to the economy. Maria he wants to raise 1. 6 trillion in new taxes. Thanks for joining us. You back, thanks. Maria dont miss Stuart Varneys interview today 9 45 a. M. On the east coast. Big interview you cant miss. Will be there watching. More mornings with maria. Markets under pressure under the world around the world. Ct ca. Gas mileage, horse power, torque ratios. Three spreadsheets later, you finally bring home the one. Then smash it into a tree. Your Insurance Company is all too happy to raise your rates. Maybe you shouldve done a little more research on them. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. See Car Insurance in a whole new light. Liberty mutual insurance. Maria welcome back to the standoff that began in early january in an oregon wildlife refuge could be over in the next three hours. Cheryl casone with my stories. Cheryl the fbi says it is meant to contain the four remaining occupiers who took over the refuge during a land rights protest last month. Protesters said they would watch out today without their guns, carrying american flags. Bundy, father of the jailed leader was arrested by fbi agents in portland, oregon last night as he stepped off a flight from las vegas. While the zika virus is spreading in the United States come in the first case of the virus has been confirmed in alabama. Thats a 20 state in the nation to be affected. Officials say the person recently traveled to a zika contaminated country. So far 15 in the United States. More details on the major mafia boss in italy but police arresting dozens of people as part of an International Operation to capture the three queens, three women who let the clan victorious because it was run by women and they were brutal. More than 100 suspected members had been arrested in italy and abroad. The mingled with an iron grip according to authorities. They were wanted for torsion, Drug Trafficking and possessing illegal arms. Throughout the day yesterday, a rest have named exit 109 suspected members suffer extortion of the crimes theres a lot in the land this morning. Back to you. Maria cheryl, thank you so much. Red arrows across the board you do two things investors and markets hate the most happened overnight and that a Central Bank Cut rates further into negative territory. This time Bank Earnings falling short. Reporting a dismal quarter. Oil another issue down under 13 year low. Talking about the market fallout after this short break. I think it landed last tuesday. One second its there. Then, woosh, its gone. I swear i saw it swallow seven people. Seven. I just wish one of those people could have been mrs. Johnson. [dog bark] trust me, were dealing with a higher intelligence here. The allnew audi q7 is here. Welcome back. We are looking at globalle market selloff this morning. With me this morning is kevin kelly. Breaking news, markets are selling off around the world. Here in the u. S. Futures are in a decline of around 2 . The dow down 265 now. Thats off of the lows. Janet yellin sent shock waves on the economy. She did open the door to lower Interest Rates. She said there is a path to lower rates reversing what the fed has be gown do at the end of last year. Tipping Oil Prices Also an issue. Dragging down Global Markets. Over the last five sessions, oil is down 16 . The selling is worst in europe. Down 3 . The central bank of sweden lower Interest Rates in negative territory. We are rippling through mar and banks. They down 10 this week. Currency trade off hitting markets. The japanese yen at a 15 month high against the collar. That has done in the opposite direction. Investors looking for safety in gold it back to 1,20 oh 00 an ounce. I guess some of it was expected but the field is now narrowing. It is. Is disa appointing finishing there for Chris Christie and Carly Fiorina. Both have bowed out. It did not work out for him there. He might be best remembering for targeting and targeting marco rubio in the depate. Rubio is saying why he decided to continue his message instead of engage christie. I wanted to avoid republican on republican violence. I didnt want to be on that debate stage screaming back and forth at another republican. Donald trump took a brief vulgar turn. He said that he is capable of changing and will be changing rapidly. Al the the discussion of the dem catic side hikely to escalate later tonight as Bernie Sanders and Hillary Clinton will debate in wisconsin. Thank you. Joining the conversation now is the founder donpeebles. Thank you for joining us. A tough day for markets this the morning. Its also about earnings because they are talking act a weak story. Whats your take on things. The economy grinding about for seven years. Its a slow grind out recovery. Its been only propped up because of cheap and free money. The feds made money free and now they are increasing. Thats also the uncertainty now about the idea of reducing Interest Rates again is going to hurt the Financial Markets on real estate side. Now there are spread so large it makes in sense to do them. Stocks are down big time to start selling assets because they are worth more than the stock price. They will buy back some of their stock. It is creating some deal in the real estate. You think evaluations in the Investment Trust areas are going to be looking at. Maybe i need to sell this and raise capitol here. Just to touch pace on that. They have been going out and buys assets. They have been trading at a 15 discount to market. They bought biomed. That is happening in the market mace. The real estate val values have risen rapidry. They are hitting some big time lows now. So the stocks are showing values what are significantly below asset value. That will compel to start putting these high val you real estate products back in the market. As a result of the Financial Market instability, and they own these core assets. You are watching the political candidates and how they are positions their economic policies. Does this make you nervous . You see a market sell off and see americans concerned about their own situations. Is it pushing candidates to very extreme where they are promising things that could be debt mental to the economy. Its the balance that they will have to play. We came in this the election season believing this country would take an economic downturn this year. They have been maying to that in terms of the fears with the American Public and the recovery over recent years has not done anything pull them out of the hole that they got into with the recession. They will have to address it in a very big way with confidence that they can turn things the around and soften this hit. Whats your take on Chris Christie and Carly Fiorina dropping out . Not too much of a surprise. They were not sewing a great deal of support there. Christie put a lot into new jersey and nothing in to South Carolina. I think you are looking at the South Carolina that is going to be a much different race than what you saw in New Hampshire. Trump had a 20 lead over everybody. South carolina hes in a much closer contest with several of the candidates so he are have to be much more selective. I would argue that a tough economy and a troubled stock market probably plays to trumps hands. People will say look how pad things are. Maybe he can fix it. I want to get your take on whats happening in europe. Yields are dropping. Then youve got things like european banks. We went there in 20 08. Our banks were forced to clean up the Balance Sheets. Our banks are healthy and well capitalized. The banks never cleaned up their Balance Sheets. They are looking at this debt and saying are we going to be able to stay there. Do we have to recapleize issue more equity out there. Theres a lot of question marks. This is according to reur t e rs, they could sell european stock. Whats also happening with the banks is they just decided they were down off the investment. Don touched on this earlier, look at our market here in january. Not a single ipo. Capital markets are closed. They enter an election. I want to point something out, these are oilrich countries that are having to sell assets. Skr p morgan forecast that they would sell 75 billion in stocks afternoon the world this the year. The the u. S. Market cap is still almost 2 1 trillion. Thats been one of the pressures in this market. They are selling what they can. What they may be selling some real estate, too because they can. What about real estate. In terms of foreigners in putting money in the u. S. Right now. More capitols coming in to real estate. Foreign capitol from investments in large commercial property, commercial office billings, the capitol in terms of boying high end condos, capital in to development proskwebgts. You are projects. So foreign capitol continues especially in our core Global Markets in the u. S. Because they are safe, stable investments. More capitol going there because they are long term leases so income is guaranteed to a degree. They sew that as safe capital. Pricing, are we in a bubblele in real estate now or do you think this money keeps coming in and keeping prices up . We are in a rapidly increasing market. We have not hit a bundle yet because fundamentals are sound and make sense in terms of investment. The stocks are selling for less than the asset value. Weve been looking at donald trump with this hotel company. Trump runs a very god hotel. He runs a very good hotel. Can you say anything about his business style . The donald trump i know is different than the donald trump we are seeing in the president ial campaign. He has a talented family. Ivanka is talented and i think that gave him the freedom to run for president to have a good team on board. Are you going to run for mayor . Im doing some im having to get comfortable that i can lead what i build for others to run and have a job when i get back pause i am not a career politician. I think you resinate because you are not a career politician. I would agree very much so. Thank you very much. Always al pleasure. Come back. We are continuing to follow a global mar kel sell off. Stay with us. He has a sharp wit. A winning smile. And no chance of getting an athletic scholarship. And that is why you invest. The best returns arent just measured in dollars. Welcome back a cruise ship turning back to new jersey. That ship returned home after being shamed by a slammed a starpl. Horrible. Its extremely pad. I have been in it is bad. That scared me. That was one of the passengers. They had a lot to say. The federal government is suing ferguson, missouri after it failed to receive an agreement to improve the way police treat people and minorities. Federal reserve chair has backed capitol hill today. She told a Congressional Committee that they may delay Interest Rate hikes should it continue on a path. Employment gaines and faster wage growth should support the growth of real incomes and therefore consumer spending. Her comments has pushed treasury rates to one year lose. Thank you. Lows. I feel like she did not offer anything new. A lot of this we knew already but the fact that she has to talk about an economy thats stuck in the mud and has to change course unnerves people. I think she tried to soften the tone of the Interest Rate hike they just did and it backfired. It was a question that put hook at how markets but look how markets reacted since she raised Interest Rates in december. The Central Banks cant do anymore. Politicians that come in and implement policies that can lead to actual growth. Like what . All these companies that we are looking at in the s p 500 now have switched money overseas. If they can bring that money pack and invest it and tie it to jobs and raise that in the the infrastructure of this company we will be lucky. We said this on our program yesterday morning just reading our testimony. That testimony in which she said was down beat about the economy. She was affirming what the market told you. You had the ten year yield had fallen off a cliff. Its telling you that this country is going into recession hater this year. Another later this year. But Bernie Sanders is accusing all of wall street of being a budget broad sters. Theres 6 Million People who work in the Financial Services in this country. He will raise Capital Gains rates. He will impose a financial tax of all his spec ray or thes spec hay or thes. He speclators. He gets more in donation an that freaks out investors more. They have been back to the 2008 market. When you hear what these politicians are talking about, sanders, he scares the heck out of people. From 2012 to 2014 the multiples of the s p 500. The market was because of the easy monetary policies on the fed. So companies were buying back stock so they were pressing right now. They were going back to normal levels. If you go back and made 1 17 in earnings. The market is telling you now with these negative Interest Rates whether you want to point to europe,er taking negative Interest Rates, bank of japan, people are freaked out about that, they dont think that its sending signals that the economy is much worse than they think. They are killing the financials. Thats the Banking System. The his the fiscal numbers are pretty god. There is a good. The commentary wasnt great but the numbers were solid and the earnings in europe were great. The Banking System greases the World Economy. I will hold it for later. More on the market sell off when we come back. Stay with us. Welcome back. A globalle sell off. Gold at its highest level in a year. Were looking at commodities here as investors are looking for places to hide. Not a lot of places to hide as equities plummet across the world. They are not. Gold is the best performing cannot commodity in the world mow. I am looking at the tradeers coming in. Everybody is droping their jaw looking at whats happening here with a lot of concern. The toil market is holding low is holding low to the day. It looks like the markets are pausing now. Theres a lot of talk mainly from japan. Saying the Japanese Central bank is not allowing today. Thats what they are saying. A lot of these fears now. When you see tradeers walk if and say, oh boy, what doesnt look good. You know its going to be a rough day. That just adds pressure to the e. N. Side of things. All are dependent on the economy. The lower these prices go, oil imports are really a big component that could help. They were getting hit very hard and that was a big issue and getting super traded on that side. We were seeing that. The banking and said oil will average 37 a barrel this year in the lower third kpwro ut from world growth of world wide. I think we want to focus on that. We are saying things want to get a little over done here. Coming up next hour, we are following the Global Market selloff this morning. Well be right back. Hands down, it was, thats who i was. After one week of chantix, i knew i could quit. Along with support, Chantix Varenicline is proven to help people quit smoking. Chantix definitely helped reduce my urge to smoke. Some people had changes in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. Some had seizures while taking chantix. 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[so i use quickbooks and run mye entire business from the cloud. I keep an eye on sales and expenses from anywhere. Even down here in the dark i can still see were having a great month. And celebrate accordingly. I run on quickbooks. Thats how i own it. Choose, choose, choose. But at bedtime. Why settle for this . Enter sleep number and the ultimate sleep number event, going on now. Sleepiq technology tells you how well you slept and what adjustments you can make. You like the bed soft. Hes more hardcore. So your sleep goes from good to great to wow only at a sleep number store, right now save 50 on the ultimate limited edition bed, plus 24month financing. Hurry, ends monday. Know better sleep with sleep number. So, good morning. Were covering a Global Market sell off this morning. The markets are selling off around the world today. In the United States futures are indicating at the opening of trading just about an hour and a half from now. It is expected that the dow will open 300 points. That is off of the lowst levels of the morning. The reserve chair cautious on the economy weighed on market and said there is a path to lower Interest Rates if things can be further. She will be speaking with the Senate Banking committee today. It will be yesterday but today will be different. So we will be focused on and start at 10 00 a. M. Eastern. Look at the crude oil down 3. 7 at 26. 43 on europe. In europe all down 3 . The september the central bank in sweden. The Banking Sector down across the board, this is one of the Weakest Industries again. All that stock is down sharply but the european banks are down 10 this week and down 30 year to date. The yen hitting a 15 month high against the dollar. The yen is up 9 in the last ten trading sessions. We are seeing it in the u. S. As well. The yield in the step year treasury now at 1. 55 . That is the lowest since 2012. Trying to find the places that people are going to be allocating money as they allocate out of energy aspects. Thats one of the places that we are looking at now. Thats where everybody is running to. Every pod was out there searching for yield when they realize that things start to melt down. Thats why we are seeing this. Oil prices are still trying to hold the low of the year right now. Its been pressureing the year. It was some positive things that we saw in yesterdays Energy Administration report. We saw the u. S. Oil production had peaked out. We had seen it fall for the first time in five years. We also had a bigger draw down than expected. That doesnt matter. If you dont have a man in the Global Economy, that means that will start to grow again. You have to look at that gold as well. Fear play up big. Back to you. Thank you so much. Joe you found a bright foot earlier with sis cisco. We forget but its up 5 in premarket beating expectation for the demand from companies. Roward security product, theres a dephapd as demand as well. They also issued a big buyback. 11. 8 million. A struggling company that is trying to figure out what to do next. The outlook is still very disappointing. That sent twitter shares down so investors called down a little bit. Any pop is getting an unwind. Even though you could find specific names that are escaping the selling, you have to believe that fun knows over all and they are negative. I think an important thing, cisco had great numbers and guidance are if line but could be corporate enter price spent Going Forward forer the rest of the year. We have the election is impacting the market without a doubt when it comes to drug pricing. Only cfos are sitting around and not doing anything. We have cash on the Balance Sheet. They dont know if they want to increase their buy backs so there is this enterprise spent that is an overhang. When you have Bernie Sanders bringing in 6 milliondollars in fun raising on the the margin, that shocks investors. This is a man who thinks everyone who works in the financial industry is a criminal. Dont tell me that doesnt hurt investors have lost faith in september travel bank in Central Banks probability. I dont know how you reverse that. I am all for Central Banks trying to get out of the way and manipulate these markets. You create an energy bubble. We are still unwinding that. I think this is going to take a long time. We cant avoid the Business Cycle so every time the fed comes in, it makes it worst for later on. Look what has happened to the Health Care Sector this year which is way worse than the general market. It was one area to hide yesterday as things rolled over by the close. Its been one of the worst performing. European banks down 43 from the high in july. The banks are rolling over. Is there anything in sight that changes the situation on the situation. Do you see any real growth coming out of europe. If we get some positive Economic Growth you can see some rebounds in the bank. Even the broad markets there are down 30 . The ftse is down. Even as the dollar was gaining last year. People were selling small stocks in the country. It is import everything. You would think this is large in the economy. Just looking ahead a year from those players pause china has been because china has been closed for the holiday. Thank you so much. Former hu ceo carly has dropped. What is your reaction to though two dropping out . Each represent two of the trends we are likely to see. Carly fiorina did well in the early debates but not able to have the second half. Her low number in New Hampshire and Financial Support brought it in to that. Chris christie played a pig role in the New Hampshire primary by taking on marco rubio and while hell prosecuted and while he prosecuted that debate and damaged rubio in the act he might have hurt himself more. His number came in much lower than anticipated New Hampshire. Christie still has a big role to play, he is a governor. He has a lot of governors around the down that if he were to endorse somebody he might be able to rally. It is interesting that it didnt help christie. It might have hurt him. Yeah. Chris christie had his entire campaign on New Hampshire. He is well attacking marco rubio. You saw people outside of the polling station saying we got robot rubio. And marco rubio hasnt voted in congress. There are some problems with marco rubio. I want to know from karl. What does rubio need to do at the debate to turn this around . He needed to do is accept responsibility. I know i blew it and thats the last time it will happen. He needs the best performance of his life and between now and then he needs to be energetic and say i liked him before and hes doing things again to like me again. If New Hampshire is. Hind and South Carolina ahead of us. Rubio has some strengths in South Carolina. She supported by scott and by congressman who is very popular in the up country. He is on Armed Services and foreign affairs. They give him an expertise to talk about issues that are very important that has eight military bases and tens of thousands of active military. He has some strengths there and lets not underestimate his ability to claw back put it will take a good debate performance on saturday night. Whats your take t karl . Im interested in listening your panel. Its class ware warfare, an he was ap angry candidate who attacked wall street and encouraged and you could take what Bernie Sanders said on tuesday night and change it up and they sound the same. It will take a can cab candidate if the jen rat election to to take him on a moral and economic basis. Its not fair to go after people who have been successful if if life and put your hand in their pocket. New hampshire is generous when it comes to democrats. 95 of the voters were white, 93 in the New Hampshire were white. They go to South Carolina and nevada. South carolina the voters will be in nonwhite and in nevada 40 will be nonwhite. This will be tough territory for him. The Democratic Party we are not so fortunate to have the democrats thising to nominate just yet. The question nows that become can a Third Party Candidate emerge . Can he come in is he running out of time . How would he impact the race. I know the mayor. I worked with him after 9 11 and stone republican i worked with him on the Republican National convention. He said he would have to make a decision by march. Its very difficult to get on 50 state ball pallets. Ballots. It will take a hot of money and a lot of time. Theres no guaranteed success at the end of it. We are an electoral college. Its hard to win College Votes as an independent candidate. Take a look at ross pirot. The further you get from the hudson river, the less Michael Bloomburg is. If he were to get in. It might put in to play states like pennsylvania, new york, new jersey and connecticut for the right republican but the chances of winning are slim to none. He has a small window but its closing in. We need to hear from him soon. Thank you so much. Still to come the market selloff and the commodity market as well. Stay with us. Back in a minute. Stpoet every year, the amount of data your enterprise uses goes up. Smart devices are up. Cloud is up. Analytics is up. Seems like everything is up except your budget. Introducing comcast Business Enterprise solutions. With a different kind of network that delivers the bandwidth you need without the high cost. Because you cant build the business of tomorrow on the network of yesterday. Because you cant build the business of tomorrow i thodid the ancestrydna toian. Find out im only 16 italian. So i went onto ancestry, soon learned that one of our ancestors was eastern european. This is my ancestor who i didnt know about. Welcome back. More case of the zika virus in the ice. The. InUnited States. P Officials Say the person recently traveled to a country with confirmed cases of zika virus. So far there are cases reported here in the u. S. The wild life refuge can be over in a few hours. It has moved to contain the four remaining occupyers. The protestors said they would walk out today without their guns carrying american flags. The cruise from hell is over. That Royal Caribbean cruise ship carrying 4500 people finally returning home to new jersey. The shaken passenger were happy to be back on dry land. Horrible, horrible, it was extremely bad. I have been in bad situations if my life. That was the worst. I dont scare easy. That scared me. A lot of those reactions in new jersey last night. Nearly 70 people injured in a train wreck it happened when a train was trying to avoid another train headed in the opposite direction. Thanks. We are watching Global Markets this morning. We have a major selloff this morning across the world and oil prices adding to the upset. We have the fed chairman janet yellim this morning. We this see what the q a is there this morning. It will be similar. Milan will be up next. Back in a moment. We live in a pick and choose world. Choose, choose, choose. But at bedtime. Why settle for this . Enter sleep number and the ultimate sleep number event, going on now. Sleepiq technology tells you how well you slept and what adjustments you can make. You like the bed soft. Hes more hardcore. So your sleep goes from good to great to wow only at a sleep number store, right now save 50 on the ultimate limited edition bed, plus 24month financing. Hurry, ends monday. Know better sleep with sleep number. Welcome back. This is the Company Whose Fourth Quarter earnings were released as well. Good to see you. Thank you for joining us. Congratulations on another deal. We are not done yet. You certainly werent. What is medic now its a very strategic complimentary asset an has become more so since the last time we approached the company back in 2014. Today, the combination builds out complete europe. We have been past the rx, the over the counter, 16 countries that we did not have commercial infrastructure in. Maximize the commercial footprint and i think you see this the health care industry. The Global Competitiveness has not been like this we believe we will bring a lot of efficiency in the meta model. It feels like when you dont see growth you acquire growth. In a day like this where we see markets selling off and see more in the Global Economy. It has become that much important to ensure you have the scale required in a slow growth world. We look at mylan and say we are fortunate. We have been based on fundamentals and delivered through 2016. We have been building from the long term but not whoseing sight but as we look to continue to build for that long term. Shortterm price is when you have the macro dynamics you going on now. We believe its a great entry point for mylan. When people step back for what we are proposing in the near term as well as the long term. We were able to the take our opportunity for 2018 and gives us the opportunity to execellerate that. I believe if nothing else you should take advantage of these Market Conditions an buy in. The Health Care Stocks have gone crushed and were the best performers last year. The entire industry is coming under some pressure. When when you look at global volume growth down the road, what can you tell us . If you look here in the United States, generics have been the backbone of our health care system. Utilization in europe continues to slowly pick up. Utilization in japan and this just got interesting. 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I swear i saw it swallow seven people. Seven. I just wish one of those people could have been mrs. Johnson. [dog bark] trust me, were dealing with a higher intelligence here. The allnew audi q7 is here. Of fixodent plus adhesives. They help your denture hold strong more like natural teeth. And you can eat even tough food. Fixodent. Strong more like natural teeth. Fixodent and forget it. Maria welcome back. Weve been reporting on the dow industrials were down 250 points. Has accelerated throughout the morning. We are looking at a global selloff in equities and were off at the lows of the morning right now. Down 300 points per farmer reagan economic adviser and chairman art laffer this morning. Also the host of varney company, Stuart Varney will be navigating quite the open. Thanks for joining the conversation. Let me take this up with you. Once again, we are in an economy not showing much growth beard do you see a candidate out there with ideas for growth . How do you feel when i look at where we are today in terms of economic recovery . I see other republican candidates as being progrowth. They are the broaderbased taxes, all of the things that are needed for Economic Growth. The democrats are spiraling further left. When i see Bernie Sanders, i have never said how Government Spending can help the economy, but maybe i missed that in econ one, maria. Maria stuart, i wonder the support around Bernie Sanders. You wonder if all of these young people understand what socialism is and how this may play out if and back he does win the nomination and perhaps presidency. The fact that the socialists of the leading candidate at this stage in the election is tell the whole big story and its part of the perfect storm. Let me backtrack a little, maria. If i lend 100 bucks to governments in europe or japan, they give me back in 99 in change. Banks cannot take money in that environment. Egg sacs are getting clobbered. The Oil Price Collapse continues. That raises the question of insolvency on some Foreign Government and Energy Companies and with that talk of recession. Recession over there might come here. You add it all up and youve got a perfect storm that point towards a two, 300point drop for the dow in an hours time. This is not good. Trend to the cries of a recession and 16 are getting louder. Art laffer, do you expect the u. S. To enter recession this year . Were already in it. We been up for eight or nine years. Theres no sign of improvement. No good policies done by the obama administration. Republicans cant override a veto. We will continue for the rest of the year. Stuart is correct in what he is saying and frankly that is very much to the detriment of the incumbent party of the democrats. Bernie sanders is spinning out of control as is hillary, by the way. Shes a very competent professional, but she is saying silly things now. Maria like what . Stuart maria, i am jumping in. I cant put my finger on it, but something going on out there that just aint right. Maybe it is negative Interest Rates. The bank collapsed, threat of recession. Maybe something else. There is something causing this global anxiety. It really does remind me of the atmosphere of 2007 and early 2008. I am not saying the two are the same and running in parallel this year and way back then, but there is something going on. I dont think we quite understand it as its happening. Maria you make a great point. We are going to open up. Stuart is navigating this one hours time. Looking at the major averages opening a two years love. Bank stocks down 30 yeartodate. Is this warranted . Theres no way we can undo Obama Policies in the next 12 to 16 months. Once you get a good republican elected, which will happen come a huge change like in 1981 when reagan took office. Then you get people trying to shift and come out in 2016 and 2017 and this will be a very bad year. Maria what about stuart is saying that there is something going on. Do you sense out of what is that . I dont know what more we need than another year of obama with no chance of reprieve. Its been 14 ,com,com ma 15 years now since they try to spin the economy into prosperity. Zero Interest Rates. Who wants to invest in zero Interest Rates . No one does. Weve had this disaster because of keynesian economic policy. Stuart youre expecting a republican win in november. Let me check this out into the ring. 945 eastern time, donald trump will be on the show on the fox does this now for. Obviously raised the question what would you do about this mess with god on our hands right now . What would you do, donald . I will ask him the question in less than an hour, hour and 10 minute period asked him about taxes, but he would do in Government Spending and subsidized members and Companies Like linda and ill bet you get them pretty great answers, stuart. This guy is a lots of stuff that is good, really good. Stuart the tax system has art laffer writ all over it. Maria go ahead. Capital gains taxes hes talking about raising some for hedge fund management. He wants to remove carried interest. Cheryl yes, he does. Everyone wants to reduce carried interest. All of those exemptions and exclusions, deductions and loopholes and one low rate flat tax is not the way it should be. You shouldnt have more invested pain 1 of his income in taxes. That is offensive. You want everyone to pay the same rate across the board. You will get the rich ones willingly paying taxes if they are fair. Stuart the bottom line is if we can get a political shift in november towards a growth economy, that means cutting tax rates for individuals and corporations. You do that in you and i agree on this one. We will get three, maybe 4 growth within the nottoodistant future. We will get much more than not. With break and i got six, 7 . We have such a low base we see growth rates far higher and its lovely being on your team, by the way, both of you. Maria i hope you ask a donald trump about what Charlie Munger was saying yesterday. I will send you this article. Somebody has to be know as Warren Buffetts partner, bright and berkshire hathaway. Donald trump made money for a little while, but here is a quote. My attitude is anybody who makes money running a casino if not morally qualified to be president. Well, he is Warren Buffetts righthand guy, is he not . I dont think Warren Buffett thinks much of donald trump. I last trump about a statement to bill oreilly the other night where he said the real Unemployment Rate is 25 . Id like to know where that comes from feeling i dont think we believe its 25 . Its a lot higher than 5 . Maria that we know. Im in employment to population would drop way down at 2008 and hasnt risen at all. We are losing 13, 14, 15 million jobs per year if we had been back where we were when clinton left office. Stuart i want to see a prominent politician stand up and say we must have growth. Enough with the taxandspend. Beating up on rich people in private enterprise. Maria i totally agree. What about this, were talking about negative Interest Rate. Bank of japan goes to negative. Today rates are plummeting across the world in the market is unraveling and equities. Art, what kind of fiscal policy do we need to seek to move the needle on growth. It has been Monetary Policy for eight years. What do you want to see in fundamental fiscal policy . Governmental fiscal policy we need lower rates. You get Something Like jerry brown full tax which i worked on a 1992. Get rid of all federal taxes and other low rate of 13 on Business Net Sales and personal unadjusted system. Government spending you got to cut back especially when you pay people not to work. Youve got to cut back all of this welfare programs back to where they were really helping poor people rather than paying people not to work. And then you need to have growth policies and regulations. Regulations are killing this economy. If you did that come you can growth in the six, 7 range for two years with no problem. Maria the big interview with donald trump at 9 45 was stuart. What is the one big feet you want to make sure to get from donald trump that our viewer should make sure to tune into at the top of the hour for donald trump . Stuart how about an accurate statement of the real situation of our economy in america. No hyperbole, no brash statements. Just tell us how it is. Maria i think he will do that. Asked him what his plans are in taxes, please. Stuart hes got a tax been out there. It is a good one. Maria final word. I want to see him leading with taxes. Why dont they say my income taxes 10 . If i. If ira ted cruz and i would say that in every speech. I can bring you prosperity because i will lower taxes, get rid of loopholes and cut Government Spending will have the private have the private sectors in this economy like it did under kennedy. Stuart do you want to do the interview . Stuart, i love you so much. Maria stuart, i want to know can he guarantee hes going to do tax reform first year presidency because markets want to know. How soon can we get it . Stuart he is a great negotiator. Every statement out of his mouth as a negotiating position which will change in the future. You cant take this guy at face value. What he says now will change up the negotiation proceeds. I think donald trump would do a pretty good job of negotiating with congress, especially Republican Congress how to get taxes done and the economy growing. 100 with you. Maria gentlemen, great conversation. Stuart varney, art laffer, good to see you. We will see a beginning that nam. He will guide you through the opening bell and of course speak with donald chump in the first on fox interview at 9 45 a. M. Eastern. We will be right back. Stay with us. The microsoft cloud allows us to access information from anywhere. The microsoft cloud allows us to scale up. Microsoft cloud changes our world dramatically. It wasnt too long ago it would take two weeks to sequence and analyze a genome. Now, we can do a hundred per day. With the microsoft cloud we dont have to build server rooms. We have instant scale. The microsoft cloud is helping us to rebuild and reinterpret our business. This cloud helps transform business. This is the microsoft cloud. All across the state the economy is growing,arts today. With creative new business incentives, the lowest taxes in decades, and university partnerships, attracting the talent and companies of tomorrow. Like in utica, where a new kind of workforce is being trained. And in albany, the nanotechnology capital of the world. Let us help grow your companys tomorrow, today at business. Ny. Gov [bassist] two late nights in blew an amp. But good nights. Sure,musics why we do this,but its still our business. We spend days booking gigs, then weve gotta put in the miles to get there. But its not without its perks. Like seeing our album sales go through the roof enough to finally start paying megs little brother i mean,our new tour managerwith real,actual money. We run on quickbooks. Thats how we own it. Maria welcome back. A fatal bus crash in france. Cheryl casone with that story. Transfer maria, 16 measures died this month after their school buses bought it then accident with a truck or the truck came up in the two decided the best that the coalition can win one day day after bus crash in eastern rents killed two children. Tensions are escalating sharply in the korean peninsula. North korea shutting down two crucial border cross communication lines with south korea. The jointly run industrial part and kicking south korean side of the country. This comes a day after this has suspended all operations at the factory park. Finally does come a Wild Elephant goes on a rampage through an indian city. People were screaming and running for their lives as they often damaged more than 100 homes, shops and cars. It took seven hours to tranquilizing animal. Officials believe she was looking for food. Luckily, believe it or not, no one was injured during the rampage. Area, back to you. Maria amazing story. But pictures. Thank you of a cheryl casone. Chris christie, Carly Fiorina dropping out of the race for president ial nomination. Life on the campaign trail, blake irvin. Reporter the republican race is now squarely planted. Donald trump and ted cruz have released directed at one another. Separately, trump said he might be changing a stone in front of packed crowds as he has raised the criticism for some bolder remarks he made while in New Hampshire. Once you get to a certain level, it changes. I will be changing very rapidly. Im very capable and do change in anything i want to change due. Marco rubio will Gain Momentum after saturday nights debate club. Rubio giving this explanation about his performance. What i shouldve done is pivoted back and pointed to his record. I wanted to avoid republican on republican violence. I didnt want to scream back and forth with another republican. Reporter theres a race on the democratic side that is likely to escalate later tonight is Bernie Sanders and Hillary Clinton will debate in wisconsin. Back to you. Maria one to watch. Lake bergman. We will be right back. Stay with us. Why settle for this . Enter sleep number and the ultimate sleep number event, going on now. Sleepiq technology tells you how well you slept and what adjustments you can make. You like the bed soft. Hes more hardcore. So your sleep goes from good to great to wow only at a sleep number store, right now save 50 on the ultimate limited edition bed, plus 24month financing. Hurry, ends monday. Know better sleep with sleep number. I am Nicole Petallides live in the word the new york stock exchange. Looking down about 250 for the dow. Oil glut 27. Treasury yields of 1. 6 . 147 is for Goldman Sachs closes with the bid of 143. Jpmorgan and caterpillar under pressure. These are looking at 68 range. Cisco will be the bright spot today. Caterpillar 62. Mylan will be under pressure. Both looking double digits to the downside. Microsoft looking down and bowing down about two or 3. Much more mornings with maria coming up. Growing up, we were german. We danced in a german dance group. I wore lederhosen. When i first got on ancestry i was really surprised that i wasnt finding all of these germans in my tree. I decided to have my dna tested through ancestry dna. The big surprise was were not german at all. 52 of my dna comes from scotland and ireland. So, i traded in my lederhosen for a kilt. Ancestry has many paths to discovering your story. Get started for free at ancestry. Com. Look at Something Like health care this morning, the need for it continues to grow population. Middle class around the world. Calmly today it is a wild day. No panic. Been a wild day, wild year down 2 trillion in lost value. Its been a really wild year. If we look at volatility. 40 on average. Over last year, and we have to look at the market drivers. Theres three of them right earnings. Weve got multiple. Dividends. Earnings are coming down. We dont know where theyll be. We saw from boeing taking down multiples that are compressing going from a 17pe down to 15 and dividends are they going to grow, cut, cut in Energy Sector so pick and choose spots you want to see. Did well with cisco find refuge in microsoft. Great great free cash flow, and stick to those and you can have calls against your position if you need to do that in the sog certain market because volatility is higher. Were all looking for greet and fact is that Central Banks are questioned do they have anything to do. Can they do anything about the lack of growth . Fng what theyre doing and Stuart Varney explained it extremely well basically you have to give youre giving a central bank money, to hold your money. You take the bank the toaster. You dont get the toaster in return. And its simplistic but true. What the Central Banks are doing is actually hurting business. It is crushing the financial stocks, and you have janet yellen that she department say hey, we screwed up but market is telling her and world that the best central bank here Federal Reserve raised Interest Rates within the end of last yore and sold off in 1. 5 . Bigger picture investment in lost faith in the world. Maybe we get to some reality here and figure out what had do these economies look like . Not until we can get a conviction in the financial system. Look at the banks weve talked about it a lot. Banks are down significantly here today. So until we get some conviction in the marketplace, with the financial stocks, its going to be a Companies Like the one here a minute ago. There has value and if we look ten years down the road these might be significant. For some reason that does not resonate. What is resonating is the fact that central bank of sweden lowered Interest Rates made it negative. Expert who understands it and knows the value in it. I have to listen to him from central bank in japan. Well see. I dont know. Theyre questioning the central bank in japan. And questioning we know central bank cant do anything anymore getting back to fiscal policy and we have election overhang here. Be careful about what you wish for because the were on success going on with Bernie Sanders and liberals in this country. Where they want to take, take, take, and penalize those people who are the job createors. More news, and rolling the hot dog so if you want to eat hot dogs. Later this month. That is the bottom line there. Kevin, good to see you all. Thank you so much for joining us. Varney company is next. Stuart has a huge interview with donald trump ahead in the next hour. Stew over to you. It will be huge. [laughter] thanks maria. And good morning everyone. Look, this is going to be one of those days, your money is going to take a hit. First, the fact. Stocks down, oil, down. Interest rates, way down. And gold safe haven going up. You may ask what is beginning on, heres the answer, number one crash in oil is reeking havoc on government and banks the world over. Two, much of the world is in recession, and america is slowing down as well thats not good. Three, the rush to safety, money pouring into u. S. Government bonds thats why Interest Rates are falling so much, and number four, this question is this another 2008, you start asking that, and you know theres a problem. You add it all up and 30 minutes from now stocks will be downig