This morning. House Speaker Nancy Pelosi in a statement saying this, american leaders highest priority to protect american lives and interest but we cannot put the lives of American Service members dye mr. Mats and others further at risk for engaging in provocative and disproportionate actions, tonights actions further dangerous escalation of violence; 2020 candidate and former Vice President joe biden also issuing a statement saying he supported terror and sub chaos, none of us negates the cause that this is escalation move, deter future attacks by iran and almost certainly will have the opposite effect. Joining me now white house fox strategic defense adviser and Army Special Operation shoulder bret and foxs military colonel david hunt. Good morning p. Thanks for having us. Cheryl to you first, big concern and investors are concern about possible escalation of tensions between u. S. And iran, how concerned should we be this morning . First of all we did accurate job with the investigation. Its like killing the head of cia and joint chief of staff. He was a very, very bad guy. Responsible for killing hundreds of americans, he has a worldwide reach, i would expect iran to do provocative acts because of what happened. We also can do provocative acts but glad this guy is dead, should have been dead a long time ago, is that [inaudible] cheryl right, right. The problem is i can see this tit for tat, the eye for an eye thing cannot get out of hand but this guy should have been killed but great possibility that iran will hit back. Cheryl bret, to you on a couple of things here that the colonel is bringing up, and colonel, thank you, i want to ask you about the capability of iranian military, whether its the president or the Supreme Leader all coming out saying that theres a price to pay, the United States is going pay for this, at the same time defense secretary mike esper was speaking about this last month to reporters and talking about escalation in the region and iranians, maybe we shouldnt be surprised by the strike overnight . No, this is a major loss for Iranian Regime, theres no doubt that they would feel compel to retaliate and theres a big question of what that retaliation is going to be, everyone seems to be worried about what iran is going to do, that should be the opposite, the president has given us the upper hand, we should be worried about what we are going to do and right now, the truth is the world is a much safer place with soleimani dead, hes directly responsible for deaths of hundreds of american soldiers, i personally was almost killed by iranian rocket attack that ripped through a building that i operated out of years ago, an attack directed by soleimani an his thugs, he would be responsible for deaths of hundreds more, the iranians were going pay a very big price for blatant attack on u. S. Embassy and its clear that we saw that here, the president did what was necessary to american lives and theres no doubt that we need to continue to do that so iranians dont feel embolden to conduct attacks. Cheryl certainly this is something that may affect americans and american lives, we will keep on the breaking news this morning, gentlemen, thanks to both of you, bret and general hunt. Youre welcome. Cheryl lets take a look at markets right now, this is what we saw major selloff once the breaking news crossed the wires about the attack, sharp decline in futures, right now the dow is down, s p down 46 and 3 quarters, nasdaq down 144 and a half. On the other side of this, this is the last day of the santa claus rally and we have had a very strong Market Performance not just for the month but also the year and decade, joining our conversation this morning with all of this breaking news, pain Capital Management president ryan payne, founder and ceo omid and wall street journal editorial James Freeman, james, your reaction on what we are seeing, breaking news overnight, this is a very bad man that was responsible for Many American deaths. Yeah, absolutely, principal sponsors of terrorism around the world, obstacles to peace in the middle east, there could be repercussions here and youre seeing markets reflect that but i think its very hard to argue with the president s action after the attempt to overrun our embassy and now this intelligence that soleimani was planning attacks on on americans, this is credible story given history, he has been in iraq before spear heading these kind of attacks, so i think but the price of oil while rising is not still far more than it was 6 years ago, i would say its a concern, a threat but as an economic matter, not a huge impact to this point. Cheryl maybe not yet but certainly we have scrimmages in the persian gulf with iranians already, they were hijacking tankers, hijacking personnel and including u. S. Personnel, we have to add that, theyve been since we pulled out of Iranian Nuclear agreement theyve been on the offensive. I absolutely do, i dont see anything that could slow down the market except geopolitical. President trump ran on kind of divorcing ourselves from the middle east, we spent 15 years in iraq and over 2 trillion, from the fiscal perspective i dont see us getting return on investment on iraq at all, Something Like this get us more involved in the region. Cheryl well, we have 5,000 troops that are still there but maybe this does show us why we are still there. The general, the top general, ryan, he was backing forces that were doing shadow operations not just in iraq but syria, also in yemen backing Bashar Alassad and the murder of tens of thousands in the country, so in a way seems to behoove the United States to have a presence there. Yeah, absolutely, we had a lot of stabilizing rattling and only a matter of time before we made some sort of action here, i wonder, oil is already going up, i can see Oil Prices Going a lot higher here because the trend was in place, fuel to the fire, no punt intended. Cheryl also the gold hit 4month high, we saw september numbers on gold contract, the flight to safety is happening. Oh, yeah, absolutely. Cheryl you have seen the same kind of reaction, shortterm reaction or longterm. This is just an unprecedented act that we have no idea what this is going to be geo politically or impact on the market, so i think stay tune, no one has any idea. Cheryl i want to turn to the issue of impeachment, another big story that we are following here in the country, senator Chuck Schumer speaking out after newly released emails with decision to delay aid to ukraine. Schumers statement says this, newly unredacted emails is blow to senator mcconnells push, serious concerns raised by Trump Administration officials about the propriety and legality to cut aid to ukraine to benefit himself. This is starting to feel desperate. They need to submit this to the senate and move on to the trial, thats the appropriate process here. I didnt see anything that changes the game in the emails whatsoever t reality is constitutionally and based on Supreme Court juries prudence the american president has enormous leeway in managed to Foreign Policy and any time they try to hit him on this, they dont go to that area, they try to point out technicalities and sometimes point to statutes that only relate to domestic matters. Cheryl james, he has the leeway here, its going to be a nowitness trial as of now. Yeah, i dont think there was anything in the emails, a lot of unelected officials in the government who were concerned about this, i think if it had been president obama sending this message, we would have said, good for him, hes implying to the bidens the same standards he commanded from Hillary Clinton and hes fighting corruption in his administration. Cheryl ryan, real quick, the markets we should say we pointed this out have really ignored the impeachment drama that washington has been i think that says everything, the market has basically past over news, great theatrics. Cheryl we are watching a lot of things this morning, folks, we are just getting started, a lot of breaking news to bring you including this, new details on carlos goshn, he is on the run, we are going to look at the criminal complaint lodged against those who helped the nissan chairman escape to lebanon, plus best in the business, the city with best chances of starting a Small Business this year, thats going to be coming and also coming up desperate search after a cargoes flying off a cliff in california, theres the video, wheres the car . Plus instagram slowing in growth, fewer likes. We are keeping an eye on futures this morning, right now as you can see we have a tripledigit selloff, nasdaq down 135, we did set new records last night but markets are concerned about breaking news overseas, we will be right back. Geico sequels. Vote and enter to win today im but how do i know if, im getting a good deal . Truecar knows exactly how much people have been paying for the car i want. 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Lauren newly released transcripts shortly before 2016 election a leak of wall street journal of Hillary Clinton email probe, agents spent weeks investigating the source, in may of 2017 mccabe said no, not me, he fessed up in an interview. He was fired in 2018. Food and Drug Administration to curve flavors, menthyl and tobacco ecigs will be sold, theyre usually sold in stores for adult smokers. And this, tesla cutting a price for model 3 sedans made out of factory in china, the company lowered starting from 3 . Other customers in china will receive their new model 3s next week so shanghai plan up and running, much cheaper now for chinese customers to buy teslas. Cheryl interesting too because this is the elon musk story, james, to this day, the controversy that surrounded him as leader to have Company Seems to be muted that production took off in 2019. I have to say many of us pretty skeptical when he was talking about the stock price, i guess that was last summer and seems to have rebounded quite a bit, if we could note that the average american should not try this at home, andy mccabe thing, where you lie to the fbi, then im sorry. Thats probably not going to cut it per normal american. Thisthis is the other question cheryl me, i didnt leak. You have competing networks hiring guys like him who we now know did not tell the truth about the collusion hoax still getting paid to be experts. No accountability, zero. Cheryl we are seeing that a lot. Again, we are finding out that there was suspicions about it, maria has talked a lot about it, she was right. Yes. Cheryl disney pulling out of new streaming service, good guy gatti, tip making husband this morning, plus a look at futures, we will keep watching this, we are down 364, s p down 44 and a half and nasdaq down 39, just waking up, futures are pointing lower after u. S. Air strike killed iranian general Qassem Soleimani. We will be right back. Whether youre out here on lte or here on a wifi hotspot, Xfinity Mobile has more coverage to keep you connected to what matters most. Moooo. Thats because its the only Wireless Network that automatically connects you to millions of secure wifi hotspots and the best lte everywhere else. Save up to 400 a year when you switch. Plus, unwrap 250 off our best phones. Click, call or visit a store today. Its our most dangerous addiction. So we took our worst vice, and turned it into the dna for a better system. We created bionic and put the word out with godaddy. What will you change . Make the world you want. Cheryl welcome back, markets are pointing to steep selloff, this comes as survey of u. S. Base ceos show that is recession fears top their list of concerns heading into the new year based on new concerns about Global Growth and the completion of china trade deal, lets bring in mainstay Capital Management ceo chief investment strategist david kudlow, happy new year. Are you worried about a recession in 2020, first quarter, Second Quarter . Certainly not worried in the Second Quarter, not even worried in the Second Quarter, we had fears last year about a recession that never materialized, some people had fears about a recession, we didnt that didnt materialize, there was concern about the yield curve inverting and data that has been improving, we have now trade deals that we are making head way on, Economic Data improving, if we look ahead into the next few quarters we think that we have growth ahead of us for the u. S. Economy, not a recession. Cheryl to your point, ryan, we saw the 10year, the yield were spiking, flight to safety with gold. Little bit higher than it was last year, what do you think of Interest Rate this is year even though the economy is strong, im bullish, what do you think about Interest Rates, going to go up a little bit this year . I think it depends. We are right there at that the point where, you know, weve got with the improvement Economic Data we could see yields rise a little bit, our forecast is for yields to stay about where they are, maybe come down slightly, the concern is that if the economy does start to heat up wed see rates, you know, the economy strengthens, wed see rates pick up a little bit. Not a bad thing. Are you concerned at all about the levels of debt we see at corporate level . Theres certainly concern, when we look at high yield, looking at credit, where weve come down to where spreads have tightened to, theres concern of high yield now, coming in 2019 high yield was an area where there was money to be made, now the spreads have tightened a lot, we are leery about high yield coming into 2020, highyield Corporate Bonds so i would be careful there. James, you and i were talking earlier this week about government debt, federal debt which im not sure has been talked about enough right now. Probably not. Does this worry, longterm thing we should be worried about for the longterm future or is this a question thats thats related to the upcoming economy in terms of 23 trillion kind of a lot . I remember Vice President that said deficits dont matter and that longterm debt maybe doesnt matter but we know that it matters, right, at some point it catches up with us, but what we have seen is we continue to add to the debt, add to the debt, we know that at some point it catches up to us. Weve had a strong start to 2020 up until today but yesterday you had every major indices actually close in record territory and you had amazing month for december for the year, for the decade, i mean, we are riding on the bull market for 10 years, obviously the concern for the average perp out there is when the bull market going toned, sometimes pullbacks can be healthy. Pullbacks can be healthy, last year believe it or not, most the biggest pullback last year was 6. 8 on average, its about 14 pullback each year and we we always say pullbacks are healthy, you know, its healthy to have the correction, it hurts when its happening, but hurts to have pullback, bull markets dont need to die of old age, they die because of an oil shock, we are getting of that now. Die of spike in Interest Rates, you know, we are not really forecasting that, the reason bull markets die and right now when we look at the economy, we look at fundamentals and really our our thesis is its the fed injecting all the liquidity into the system, other Central Banks around the world thats really pushing, you know, we are looking beyond the fundamentals, its the feds that is pushing stocks higher. Cheryl at some point that might have to end, we dont think its in 2020 from what youre telling me at least in the first half of the year, thats good, david, thank you very much for being here. Thank you. Cheryl a lot more coming up, we are staying with the markets, futures are down substantially right now, dow is down 344, s p down 42 and a half in premarket and nasdaq down 134 and change in the premarket, again, the breaking news overnight if youre joining us and waking up to this news, u. S. Led air strike overnight killed iranian general Qassem Soleimani, thats rolling investors this morning, concerns about tensions escalating between the United States and iran, we are all over that story right now, also carlos goshn is on the run, but weve got new details about the criminal complaint lodged against those who helped the former nissan chairman who helped escape lebanon, 50 shades of green, making mark in the last decade, we will explain. Through th