Transcripts For FBC Markets Now 20121024

To make a comeback. After two of the last three days have been selling on wall street with more than a 200 drop. Today, you have of arrows. There is a look at the dow which is up one third of 1 . Boeing came out with numbers, bank of america, financials making a comeback. This is the environment slightly to the upside. Back to you. Connell fed chairman bernanke will not be seeking a third round. At this point, the writing seems to be on the wall if romney wins. Our next guest says they are facing a dangerous Monetary Policy cliff. Monetary policy . If romney wins, they say he is out. If obama wins, he is still out. If bernanke is out, what happens to the markets, axel . They all want to move away from an inflation target towards an target. If we get a republican administration, what that means is we will test bernankes hypothesis that rates can be raised. What does that mean . We have so much leverage in the economy. It means that Interest Rates will go up. That means we will face major headwinds in the economy. What that means, also, we will go right back into recession. We will have to lower Interest Rates again. We have a very volatile. Ahead. Look at europe. Europe cannot afford high Interest Rates. We have the same, if not worse problems ahead. Connell it sound like you are challenging the assertion if romney wins it is good for the market and the economy. You are saying that it is just not that simple. You are saying it is not that simple, it is all about who runs the fed. It is much more important because ultimately even if we get a romney administration, we will have different monetary policies. Earlier in the 80s, we simply cannot do that today. We have to raise the rate to 4 or so and we cannot sustain our budget in the nearterm. Importantly, of course, the dollar, the dollar may suffer in that. If that attention is on the bond market or either tight Monetary Policy, i would bet it is not sustainable. Connell before you came on today, axel, i was ready to forget about the Federal Reserves saying they are not the story anymore but they are out of bullets. Now, it is really about the other side of it. If we have the fiscal cliff, lets take that scenario, we will still have a deficit over 3 of gdp. It is the same as european austerity. At some point, it will have to happen. It does not get us on the right track. Even with the fiscal cliff, we have not fix our structural issues. Let that money stick and we have the real problem. We will get nothing. That is nicole of the feds. Connell quick predictions. In the short term, we have to be far more worried about money sticking. I think we will be chumming along. Watch that dollar. The dollar may weaken. If and when we do get some tightening, that will not be good for the dollar because the bond market will be in a bear market. I didnt your seats. Connell axel, as always, thanks a lot. Dagen is washington, are the lawmakers, or partially to blame for all of this . Former senator of north dakota joins us now. I think they deserve a fair amount of blame. This is not some Mysterious Illness to which we do not know the care. This fiscal cliff and economic uncertainties are manmade. Adult sitting around the table should be able to find a solution. We just cannot allow us to go off a fiscal cliff. I think you would have almost a certain recession if that was the case. Dagen between now and then, you already have a company like United Technologies planning deeper cuts because of impending defense spending. We talk about it, they will get it done by the end of the year, they should have gotten this taking care of much longer ago. That is true. The gridlock in our system shows that we always have these made our difficulties. When you have all of these uncertainty, you have all of these investments that are not made. Let me mention one other thing, the larger Economic Issues that we face, the revenue for those will not be pain free. Everyone a painless remedies. We do have to cut some spending, we have to put the country with some predictability for the future. I hope that between now and the election, between now and the election will not happen, between now and the end of the year we will find some Good Solutions to put the country back on track again. Dagen when the president said the sequestration will not happen and some people in his campaign say should not do you believe it simply will not happen . I hope it will not happen. The bush tax cuts will expire if nothing happens, the payroll tax cuts will expire if Nothing Happened and sequestration will occur if nothing else happens. There are three very big issues that require some intervention in decisions by congress. I hope congress, republicans and democrats, to get together and decide how to put this country back on track. Dagen do you think, ultimately, though, it will take a great shock to the system to set lawmakers straight . Behavior and ways . Ge their i am talking about a sudden spike in Interest Rates for any reason. Will it take something dramatic . I hope not. This needs to get done. The problem is an economy whether it is our economy or an economy in the european countries, with this circumstance, you are okay until you are not. When you are not, you are in big trouble. The congress and president need to move to avoid the fiscal cliff and have a longerterm strategy that really addresses the problems in this economy. Dagen senator, it is great to talk to you. Unfortunately, you are not in office anymore. Thank you. Senator, the well. Connell off to a big story today. The state Department Said terrorism may be a factor in benghazi and they have known that on the day of the attack. Dagen worried about your Computer Security . We have the top password that you may not want to use. Like one, two, three, four, five. Connell you think . Dagen lets take a look at oil. We will be right back. Connell there is breaking news on the weather. Sandy has just become a hurricane. It is a category one hurricane. It is in the vicinity of jamaica. You are looking at sandy approaching the United States probably early friday morning. It just upgraded to a hurricane, category one. Dagen unemployment babysitting at 7. 8 , but that may not be that there is not work to be found. Salt lake city saw 5 growth, as well as as well as, surprisingly, detroit. Both alston and houston cell growth of 6 . The highest increase was 7 growth adding over 63,000 jobs. The chief executive said in a note to workers that the company is shutting its bostons studio am a close boston and japan as well. It currently has over 3000 employees. It is up. It may be time to change your passwords. A company analyzed a list of millions of passengers released by a group of online hackers. Topping the list were the word password. 123456. The Company Found some unusual new additions. There is jesus or jesus. Along with ninja, monkey, unfortunately, connell sucks did not make the list this year. That was not in the prompter, it was connell rules. Dagen [ laughter ] connell we are going to go to nicole now. It is a good day for facebook. Nicole here is a look at the stock today. It is doing very well. We are seeing the Second Quarter earnings. A lot of the analysts are liking what they see. They are all upgrading facebook shares to a buy today. Two of the biggest risks for facebook, zynga appears to be downsized. The lockups still loom where the insiders can still sell. Get in there and buy this. That is an opportunity for positive growths. Connell thank you. Dagen the judge, Andrew Napolitano is coming up next to talk about the new email showing that the white house knew more about the attacks on september 11 in libya then it has been letting on. 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This brings the nations most Senior Intelligence official and others directly into the loop. The fourth key player here is a cia player. One email found that an Islamist Group was claiming responsibility for the attack. The reason the group are claimed responsibility on facebook and twitter and has called for an attack on premises. It looks like terrorism right out of the gate. The initial assessment is all the more disarming to lawmakers. From day one is that we got pushed back both from the white house as well as the Intelligent Community early on. We could not figure it out. It was really strange. They never do that. About two days after the attack, they had a News Conference in liiya. They publicly denied responsibility. It was a joint operation. Connell what is the response or is there a response from the white house not that that emails are out . A spokesperson replied in a rather testy email that this was more of the same in the emails about the attack in realtime did not amount to assessment. There was a variety of information coming in, the whole point of an Intelligence Community and what they do is to assess information and make judgments about what happened and who was responsible. The immediate intelligence that led to terrorism was downplayed or dismissed by the white house and that is basically an act of omission, not an active omission. This was a deliberate act, it was not an accident. Dagen catherine, thank you very much. Connell to stay on this story, lets get a little more analysis right now. Dagen judge Andrew Napolitano is here. Unfortunately not the government is allowed to lie to us and commit sense of coalition by actively withholding the truth from us. The Supreme Court said that it can. They can lie, steal and withhold information from us. A political one between the voters and president. Very unfortunate for the president that this is coming out two weeks before election day. Al qaeda is on the run rather than to the troop. We now know as catherine has articulated in some of our fox colleagues have done this work and got in the emails that the administrations new of the involvement of hardcore terrorist from the date it was happening or perhaps the next day. That is still four days before someone in the white house, somewhere between a janitor and the president , to tell the country on five of the most watched Television Shows of the weekend that this was a reaction by ordinary libyans to the 15th minute very cheap movement rather than what we now know it is and what the administration knew it was. What is the remedy for an administration that willingly holds back the truth and mislead the public two weeks before election day. Connell it makes it all the more interesting. The more we know about this, the more he said i wonder why mitt romney did not press is that the debate the other night. Especially, as you say, politics i do not necessarily want to defend mitt romney. I was hoping and wishing he would take the golden opportunity to attack the president on this particular issue. Let me suggest this to you, mitt romney has been receiving highlevel sophisticated intelligent briefings. The same people that brief the president did we do not know what mitt romney new. We do not know what the president knew. They obviously know more than we knew. However, this is such a glaring failure on the part of the president could he said his first job is to protect americans. He failed to do so. Then he had his people mislead us about it. [ talking over each other ] dagen in the abstract, why would you do that, if the information was there, why would you . I am going to guess again that the Political Team has suggested it would cause more fallout for them to walk away from their mantra, which they have articulated since charlotte. That Osama Bin Laden is dead and al qaeda is on its way out. They would have to walk back that statement. They would have to walk back to and a half months of that statement. They are more faithful to their political needs then the truth. Dagen judge Andrew Napolitano. Great to see you as always. Connell we will talk about technology coming up. There is a new windows tablet called surface. Walt mossberg said it is okay. Dagen shirley gasparino on, well, more problems over and the departure. Here is some of todays winners on the s p 500. Connell lets go back to nicole. Stocks now. Nicole we have had some breaking news. They will cut jobs. Here is a look at the stock right now. It is up 2. 08. They are cutting 2400 jobs globally. 1200 of those jobs will be right here in the usa. 350 of those jobs of this 1200 in the usa will be in two states of ohio and michigan. This is in the effort to cut costs. This is why we are seeing them cut their workforce. Now, with take a look at netflix. Netflix has come under pressure today. It remains in the red. That is because of the subscriber growth numbers. We were hoping for more from netflix. They are paying a lot of money with their international expansion. That will cost them over the next two quarters. Back to you. Dagen thank you. Connell Walt Mossberg all over the latest in technology, as usual. He has been reviewing the new microsoft surface. Dagen is it cool . He is here in this weeks all things digital. Microsoft needs a little cool, does it not . It needs to be in the conversation, guys. They obviously make the platform that most of the world pcs run on. They have been out of the conversation for five, six, seven years because they have done virtually nothing in mobile phones. They are trying, but they have done nothing. They have no tablet operating system. They took a page out of their arch rivals playbook, apple. They decided to do a thing where they designed everything. They put this new operating system on it. They wrote apps for it. They have an ecosystem for it. It is the first computer of any kind made by microsoft. Connell is this a start of a new trend, i wonder . More importantly, for this conversation, did they get it right . They got it right and they didnt get it right. On the hardware, which is the thing you would expect them to have the most trouble with because other than xbox which is a big success, they have not made, you know, a major piece of hardware. I think this is a good piece of hardware. Again, taking a page out of apples playbook. It is a very it is metal, very goodlooking, carefully designed, it has a kickstand on the back that is solid and then, it has just a generally good feel to it. The problem is it runs on a version of windows eight which cannot run all your old windows programs and it does not have many of the new style tablet apps that the system was built to support. They will only have 10,000 globally when they launch on friday of which only 5000 will be available in the u. S. Apple has over 700,000 of which almost 300,000 are specifically designed for tablets. There is a big huge gap there. Dagen walt, who will this appeal to . It is close to 500, 499. Compared to the ipad, you get double the amount of storage. I tell you, it is meant, they are marketing towards productivity. I do not buy the idea that you cannot be productive on and ipad. I am productive on an ipod all the time. One thing you cannot do is run microsoft word, powerpoint, excel, there are similar apps, but dont Microsoft Office on anyone elses tablet. They have rigged up a version of Microsoft Office that runs on the surface and that is a plus. To go along with it, they have made these covers that are very thin and cleverly designed. They have keyboards built into them. We have seen these on the ipad and android from third parties. When you combine this you have a keyboard, which is optional, you have Microsoft Office, most of it, not outlook, but the other ones that are included, then i think you have a message that you can get office type work done. Connell there it is. Out friday. There are plenty of options in tablet land. Dagen good gracious. That is my next thing i will talk about. Connell walt, as always, thank you. Dagen Walt Mossberg. The president on a world Wind Campaign sprint around the country today. Brett there is here to talk about both candidates. Connell Charlie Gasparino will be here to talk about citigroup and whether there is something investors do not know about. First, so markets for you. Here is a look at treasuries. I have your fox business brief. New home sales surged in september. Sales rose 5. 7 last month to a seasonably adjusted annual rate of 389,000. Meanwhile, nike is selling a unit for 225 million. The sale was widely anticipated after the retailer announced in may that it intended to divest the brand. The u. S. May soon surpass Saudia Arabia as the worlds top oil producer. America is expected to produce template nine barrows a day this year. Saudia arabia by comparison produces 7. 6 billion barrels a day. The u. S. Will likely produce up to 15 billion barrels a day by 2020. That is the latest from the Fox Business Network. Giving you the power to prosper. 4g lte is the fastest. So, which supeast 4g lte service would yochoose, based on this chart . Dont rush into it, im not looking for the fastest answer. Viously verizon. Okay, i have a different chart. Going that way, does that make a difference . Look at verizon. So what if we just changed the format altogether . Isnt that the ect same thing . Its pretty clear. Still sticking with verizon. Verizon. More 4g lte coverage than all other networks combined. Connell we are back and we are going to go back to the big story on libya that we talked about earlier with catherine and judge napolitano. Its new comments from the secretary of state moments ago. Hillary clinton saying this. Posting something on facebook is not in and of itself evidence. I think it just underscores how fluid the recording was at the time and continued for some time to be. Connell who knew what when . Brett baier is with us now from d. C. She is referring to this Al Qaeda Affiliated group. We now know from these emails obtained by fox news for the attacks in libya that they knew within hours of the attacks. It is a big deal. These emails were going up the chain. They were in the situation room in the white house. The attack was underway. It went into the National Security apparatus. This was at the white house at the time. There are emails that show that the ambassador is in a safe haven part of the consulate under attack. As you mentioned, at 6 05 p. M. , there is one email that says in the same chain that this Group Claims Responsibility for this attack on the consulate. The secretary of state said on facebook and twitter now, here is the problem, the administration is saying just because they set it on facebook and twitter, that does not mean it was accurate. In fact, the White House Press secretary said that group later came out and denied that involvement in a press conference and said they were not involved. Okay. Here is the problem now, the one person, the one person who has been arrested so far in turkey has a part of the attack and so far the u. S. Has not got their hands on them. The one person is tied to the al qaeda group. It is a Militia Group within al qaeda link. The secretary is saying that the facebook posted not mean anything. These emails are a big problem for this administration no matter what they are saying today. Connell i have to ask you at least one political question about that. I understand the emails were not out when the last president ial debate took place, do we know or do you know from their own reporting why the romney campaign, mitt romney himself, made a conscious choice to not make it bigger issue of libya . Why not highlight it more than they have . Well, just talking to various people, some of that they look back at 1980, the third debate with Ronald Reagan and jimmy carter where reagan was asked to go hard against carter and did not, the same way that romney was asked to go hard against president obama against Foreign Policy and did not. He tried to keep it hands off. Many analysts are looking at it saying they were looking at some internal polls suggesting that he is doing pretty well and he did not want to step into any traps that perhaps the president had rhetorical traps on Foreign Policy that the president may have set on this issue. He obviously did not do well on the issue the first time around. A lot of conservatives wanted him to go back at it. He did not. He arguably came out of the debate at at least a drop. Connell this issue is the story of the day today, certainly. Dagen we watch you every night. Connell we do at 6 00 p. M. Dagen since i did not get a chance to interview you because connell is an interview hog [ talking over each other ] connell thank you. Dagen it is a quarter till the hours. You are always elbowing in. Stocks now. Nicole i will elbow my way in to give you a little stocks now. Lets take a look at some names that are reacting to their quarterly reports. We are looking at three names, at t, eli lilly and first o myers. Lets take a look at at t. The prophets have been on the rise. Subscriber growth, as well. It is down almost one full percentage point for at t. If we are also keeping an eye on Bristol Myers and eli lily. As well as a drug for diabetes that has been delayed. Dagen thank you. Connell there are some questions about Vikram Pandit. Charlie gasparino has some answers and he is up next. Dagen and take a look at some nasdaq winners today. [ male announcer ] this is steve. He loves risk. But whether hes climbing everest, scuba diving the Great Barrier reef with sharks, or jumping into the marke he goes with ople he trusts, which is why he trades with a company that doesnt nickel and dime him with hidden fees. So he can worry about other things, like what the market is doing and bng ready, no matter what happens, which isnt rocket science. Its just common sense, from td ameritrade. [ male announcer ] how do you engineer a true automotive breakthrough . You give it bold new styling, unsurpassed luxury and nearly 1,000 improvements. Introducing the redesigned 2013 glk. See your authorized mercedesbenz dealer for exceptional offers through mercedesbenz Financial Services. Connell this is a fox business exclusive report. Wall street is talking a lot about the reporting of Charlie Gasparino. The sec now looking into the circumstances surrounding Vikram Pandit and his aunt abrupt departure. Charlie we are looking exactly what they are doing. We confirm that it is known as an informal inquiry into pandit departure. They are asking for emails. It is an informal inquiry. They have not sent out subpoenas yet. There is really no difference yet. It becomes an investigation. It is literally the same thing. What are they looking at . They are looking at the disclosure. How citigroup exposed pandit departure. They did a Conference Call for thirdquarter earnings. No mention. As we were first to report, it was at exactly 4 02 p. M. They told Vikram Pandit that the board has lost confidence in you, we would like you to go, you should go. Get out of the building. The next morning they announced that he resigned. They had a Conference Call that said it was Vikram Pandits decision to resign. Put all of that together when you talk to people like harvey pitt, former fcc chairman, he will tell you that there is room for a security Law Violation in the sense that citigroup may have misled the markets about pandit departure. How do they mislead . Should they have disclosed the call . The board clearly knew he was going afterwards. They kept saying it was a resignation, well, guess what, that is not essentially what happened. Here is the thing, there is this gray area, clearly, they are worried about the notion that the firm misled the market. Remember during the financial crisis that there was all of this stuff going around about concerns and in three days later the place blows up. This is and at that level of firms blowing up, it is material. The stock went up on pandit departure. People thought that was a good thing. Get a better ceo in there. Should they have disclosed it . Was it accurate . I know analysts that went out and sold these kind of firms, a friend that is made up of former fbi, agents were they have voice technology. They went back and listened to pandits voice during the thirdquarter earnings right before he got whacked. They concluded, at least the analysts i talked to, they concluded that he was pretty confident they went back to the call to see if there was any sort of hesitation that made you think that pandit knew he was going. They concluded through their firm apparently, he was so confident that they concluded it was a surprise. If what pandit was completely surprised at the end of the day, we did report there was a lot of tension, and he did not know it was coming that day, maybe he thought he had time, enough to convince them. What was the trigger for the board . A lot of this stuff, i think, will come out in the investigation. Citigroup is not commenting on this. When they do, they will call it an informal inquiry. [ talking over each other ] do not attribute that to my Italian American heritage. Dagen i did not say that. Charlie gasparino. Charlie can get away with anything. Connell i do not know about that. Connell the fed chairman bernanke is not on the list. He is apparently on his way out no matter who is elected president. Bernanke on his way out. Dagen stocks tumbling. That is coming up in the debate with cheryl and dennis. Connell back on markets now. Nothing coming up about the fed, but other things we can focus on. The market, the huge boom yesterday. The libya story, certainly, in one of the stories you brought up. Dagen does not want to work for john malone. He said he was underpaid, cashed out about 200 million of stock this year. Connell greed and betrayal among rich guys. Im dennis kneale. Im Cheryl Casone at the bernanke factor. Will a romney presidency and the cheap money for the market . Doing pretty good up until today. Our series leading up to election day. Dennis and credit card safety or maybe fraud. Pentax hacked at barnes and noble. If others were also hit. Cheryl and facebook shares are soaring a city and other analysts actually put hi a stamf approval on the stock. Well be watching a social Network Center for you overall during the hour. This hour of markets now. Dennis Nicole Petallides on the floor of the new york stock exchange. They are still reeling from yesterdays slaughter. Nicole that is true. Yesterday we saw selling acrosstheboard, the dow over 240 points. We have had a tough three days on wall street. Lets take a look at how we are faring right now. Losing any steam it had earlier in the day, just a fractional gain not even onetenth of 1 . The tech heavy nasdaq, there is a look at the s p 500 to the downside depending it drop. The real winner, look at facebook getting a big pop on the quarterly report. Some upgrades today, a big pop in the stock moving up 20 for facebook sitting at 23. 44 per share. I know, it is not 38, but still dig gains after lot of people look at the quarterly numbers and encouraging number based on the progress they have been making with the money from mobile phone use. Also less to risk with the zynga. The one catch of the lockup when they expired the market sells off. That could be a reason to buy it. Cheryl we will watch the stock in the entire sector during the hour. As the Federal Reserve and printing too much money . Or has Ben Bernankes moves than a depression in this country . We debate a different issue that matters, today we are going to debate this, the Federal Reserve. We have two of the best. I think todd, you want to marry ben bernanke, youre a big fan of his. He is awesome. That was not for ben bernanke, the only proactive guy in washington doing anything. He has saved the u. S. Economy. I am not running for public office, another longtime impact. But it wasnt for him, this economy would be negative and poorly negative for probably a full generation. Cheryl do you agree with that . Im not sure they give us a sense Ben Bernankes move on qe3 was the best move. I believe just the opposite. You have to stop printing money, qe3 forever. It can solve the fiscal problem with monetary attack. The reality is the fed and the treasury are like an atm for the federal government that would impact the debt and deficit piling up. Monetary base is expanded but the true monetary money supply is out there hasnt grown at all because anybody who is not newer like i am will not go out and massively grow the economy by borrowing money. It does not matter what bernanke says. Cheryl so he needs to go . He says he is an entrepreneur and he doesnt want to go out and borrow. I guess thats because demand isnt there. With higher rates, if race were going higher, you would not have the demand either because you wouldnt have many clients. You do have the client, that is why you should be going to get a loan and expand. The stock market loves ben bernanke. They want ben bernanke to be in office for the next 10 years because theres nothing else organic about the u. S. Economy. You need this guy to keep rates as low as possible. Cheryl we also have the dollar, which continues to be weak. We will have to deal with inflation. People are not our way money because theyre scared to death, theyre afraid they go out and borrow money they will be hit with a new round of taxes, they will be hit by more deficit spending. It would be better off if we didnt have a fat at all let alone a liberal leaning bernanke that destroys the economy. Interest rate and monetary supply should be able to freely adjust based on freemarket, not by centralized committee and basically bazaar of money that manipulates the money. We have them nuclear in the United States. Get on the phone and call your local congressman. That is who should be out of office, not ben bernanke. He is the only guy doing anything in washington, d. C. Congress hasnt done anything with the fiscal cliff if it wasnt for bernanke, we would be doomed. You should just go ahead and marry him. It makes no sense. Cheryl i want to move the conversation forward if we can. The market where we are today, a nice boost yesterday but heres the problem. Companies are still telling us they are afraid to hire, the demand is not there. Whether the fed has done anything, what should we do to fix it . All we can do is get a new administration in there. Iget somebody who understands unless you get the deficits under control, entrepreneur and businesses are not ones to leverage up and will not grow. You better get the tax rate down and continue to make the country strong unlike what has been happening the last four years. You need and not newer, not a community organizer. Hopefully that will happen soon. Cheryl governor romney says if hes elected he would get rid of ben bernanke. That is hardly a vote of confidence. I will agree with mark on that statement, they will actually go out because you have a number of companies with truly is of dollars in cash on the Balance Sheet will go out and expand and hire because of a the certainty factor of romney. Cheryl what are you investing in right now, mark . We are investing in equities. It has to be longterm, when you have these bits and spikes downward like the last couple of days you have tw to rebalance t. If obama is reelected, look at the index because everybody will be trying to get out of town. Cheryl gentlemen, thank you. Appreciate it, guys. We have eight topics to go. The issues that matter every day up to election day. Next up tomorrow we are debating housing. Do not miss it at noon eastern time tomorrow. Dennis you probably do a few times a day without even thinking about it. You swipe your credit card or debit card through the pad, but how safe is it . Adam shapiro joins us now with the latest on the hacking at barnes nobel. It is appropriate to say swiped because somebody was swiping a credit card numbers and using them to make fraudulent charges for some customers have gone to barnes nobel stars. Barnes nobel, and we have some video to show you. They stopped using all of the swipe machines, you swipe your card and putting your pin number or your debit and credit card. After they discovered 63 of the machines had been compromised at stores nationwide. It took place in nine states roughly 700 stores for barnes nobel. If youre curious if you shop at barnes nobel if your store was one of them you can go to the fox business website. We have listed all the stars were one of the machines was compromised. Barnes nobel assistant nobodys personal data from their website was hacked, if you use the note or the mobile obligation, youre not affected. But the pen pad devices and several stars in the states you see on the map there. These pen pad machines are no longer in use at barnes nobel. It was 63 machines out of thousands. Dennis thank you, adam shapiro. Cheryl c. 00 of pimco is speaking to fox business. What he says wall street has lost its way. And doddfrank will be just a warmup. Dennis implications for the stock of sirius xm ahead. And as we do every day at this time, we take a look at oil. [ male announcer do you have the Legal Protection you need . At legalzoom, weve cated a better place to turn for your legal matters. Maybe you want to incorporate a business yod like to start. Or protect your family with a will or living trust. Legalzoom makes it easy withtepbystep help when completing your pernalized document or you can even access an attorney to guide you along. With an a rating from the Better Business bureau legalzoom helps you get personalized and affordae Legal Protection. In most states, a legal plan attorney is available with every personalized document to answer any questions. Get started at legalzoom. Com today. And now youre protected. But proven technologies allow natural Gas Producers to supply affordable, eaner energy, while protecting our environment. Across america, these chnologies protect air monitoring air quality and reducing emissions. Protect water through conservation and selfcontained recycling systems. And protect land by reducing our footprint and respecting wildlife. Americas natural gas. Domestic, abundant, clean energy to per our lives. Thats smarter power day. Cheryl we are getting breaking news into fox business. Bank of america is being sued by the u. S. Attorney right here in manhattan. Looking at release and the stock as you can see, the stock is trading just a little bit higher. No clear effect on the stock but for the details as we have them right now. This is over subprime loans and the lending market back in 2007 and over. Over countrywide and fraud allegedly committed by countrywide which bank of america of course, dennis, bought. Dennis one wonders if this is a second instance in which a bank was asked by government to help out and then along come lawmakers to end up suing the buying bank for the past bank. Why now, only two weeks before the election, could they have filed civil charges a year ago . It is a civil, not criminal. Cheryl the u. S. Attorney saying the civil fraud case is the first by the u. S. Department of justice over Mortgage Loans sold to fannie mae or freddie mac. Also the u. S. Attorney saying the phones were sold to fannie and freddie causing over a billion dollars in losses and the thousands of foreclosures. The blame squarely being put on bank of america. Nicole petallides standing by the new york stock exchange, still trading in the green. What do you make of all this . Nicole managing to hold the unchanged line but not a good intraday chart. Selling off as the news begins to break about this news. Talking about civil false claims, thousands of foreclosures, a u. S. Suit on behalf of fannie mae and freddie mac. And so we are seeing the selloff some. It is starting to come back, so it had a selloff of the factors holding the unchanged line creating a penny higher, a penny higher, it is interesting if you take it in stride but theyre seeking 1 billion. Nobody wants that headline directly correlated to their bank. We will continue to follow this of course but theres a lawsuit from the u. S. Attorney in new york city in manhattan, says a look at bank of america at 9. 41 per share. It is a dow component. The Dow Jones Industrials remain without arrows as well. Big days of selling friday and monday but today trying to get an up arrow. Cheryldennis im shocked theres gambling going on at the casino because theyre suing them because allegedly countrywide had misled fannie and freddie and when fannie and freddie were buying up mortgages as much as possible. For them to say im shocked the mortgages were bad when theyre buying subprime, what did you expect . Cheryl we will check back in with you. Dennis okay. I hate when stocks are down. Energy prices dropping on the weekly drop in oil supplies, phil flynn of the Price Futures Group and the fox business contributor standing by at the cme. Those inventory numbers are unbelievable and it shows the way the world is changing Domestic Production going up, lots of oil, 6 Million Barrels, 5. 8 Million Barrels as well was for the u. S. Domestic reduction. Were seeing imports trend down, another big surprise. Another region we have seen the biggest route in a quartercentury. We have been killing that market over the last couple of weeks but despite the fact that gasoline inventory is more than expected, little bit of a rebound because the market had been pretty oversold. A credible build in supplies. Dennis thank you, phil flynn. More cars and trucks are fueled by natural gas. How you can play it up ahead. Cheryl this could be a last president ial election in which you vote at the polls. The security of online voting. But first, look at the world currency and how they are all faring against the u. S. Dollar. We will be right back. Sometimes investing opportunities are hard to spot. You have to dig a little. Fidelitys etf market tracker shows you thbig picture on how different Asset Classes are performing, and it lets you go in for a closer look at areas within a clasr that may be bucking a larger trend. Im stephen hett of fidelity investments. The etf market tracker is one more innovative reason serious investors are choosing fidelity. 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In the last leg of the 41mile stretch of highway 130 where the 85 Miles Per Hour speed limit. Everybody rides free ntil november 11 and then it is 0. 15 per mile. Cheryl thank you very much. Natural gas is actually down 27 from three years ago but oil has risen over 7 . The trend is fueling interest in natural gas as alternative fuel for cars and for trucks. How and when you can actually profit from this. I would think this would be a longterm investment would you y there are some very compelling reasons to get into the sector now. Why . Yeah, absolutely. Even over the short term there is some great opportunities in the transportation side, not gas as a fuel. It is driven by economics that natural gas is a fuel force is cheaper than diesel or gasoline. Very attractive the longhaul trucking market. Cheryl i can see the fleet alternative side to this, Companies Need to transport their goods the cheapest way possible but Passenger Car seems to be a different challenge. Electric power has taken up the headlines across the country. Why would somebody want a natural gas car . Nat gas is already well developed in markets like south america, asia and particularly in europe with much higher gasoline prices. So it is a question of the fuel cost plus a higher upfront cost running off of natural gas on offers economic on the longerterm basis, however the short term the best opportunity we believe are in the trucking market here in the u. S. Internationally that is particularly unattractive and the domestic market will develop for example in San Francisco we have many taxis that run off of nat gas. Cheryl and the tanks are smaller which i think is interesting. I thought that was an interesting factoid knowledge. There is a company on one of your watch list as well, company that you are recommending and i want to get one more stock out to be viewers, fuel Systems Solutions. Why these two names . It plays into that longhaul trucking market. The premier supplier of heavy duty, the big 18 wheeler trucks, theyre the Big Technology and in many cases only Technology Available for the longhaul trucking market. So we let the proprietary position. They will be the dominant player in the market. Fuel Systems Solutions played sincplaysinto the light to the t more so, already a dominant player in europe and the u. S. , we think at that market evolves, it is compelling. Cheryl i think what is interesting is if you look at all the carmakers, honda has actually cornered the market, the u. S. Market on having natural gas vehicles. Honda is a pretty big name in this space, do you think you have some wheels in this space . I think they do, however what we will see the next couple of years if yo as you will see theg u. S. Automotive, some of the other players in the Worldwide Market having any Product Available in the u. S. Working with gm and ford. You will see a much more aggressive Product Launch by the u. S. Automakers to make it available in the u. S. The next couple of years. Cheryl i assume your San Francisco giants fan. Yeah, that is right, to be an exciting week around here. Cheryl good luck in the world series. Thank you very much. Dennis facebooks new friends. A lot of analysts like facebook. Up over 20 . Cheryl coming up, my exclusive interview with pimco chief operating officer. He tells fox business investors he needs to be ready for a major event that will shock the market. Dennis a look at the s p winners and losers. [ male announcer ] eligible for medicare . Thats a good thing, but it doesnt cor everything. Only about 80 of your part b medical eenses. The rest is up to you. So consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all sndardized Medicare Supplement plans, they pick up some what medicare doesnt pay. And save you up tohousands of dollars in outofpocket costs. 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And you never need referrals. So dont wait. With all the good years ahead, look for the experience and commitment to go the distance with you. Call nowo request your free decision guide. This easytounderstand guide will answer some of your questions, and help you find the aarp medicare supement plan thats right for you. Dennis 30 past the hour, stocks every 15 minutes and nicole, pfizer is actually uptodate on new drug news. Nicole they get the first culinary results out of europe, the suspected everybody had been hoping for so when you get it that is great news. The lung cancer drug getting conditional eu approval, used to treat advanced nonsmall cell lung cancer in those with genetic mutations. So that is good news for pfizer. Up 1 . Lets take a look at the Broader Market averages. Up onetenth of 1 . Trying to hold onto the game, the nasdaq slightly lower and bank of america managing to come up off of the earlier lows after the headlines. Back to you. Dennis thank you, nicole. Only a matter of time but now it is official, mel karmazin is out at sirius xm. Out of the company he built getting taken over by the billionaire here turned to for a rescue. This deal may be his best ever. In early 09 he had loaned money to sirius when nobody else would. Sirius paid him back in full, yet malone got as a loan fee 40 stake in sirius for 12,500. Jahn malone owes him big time. He sold 90 million shares along the way breathing a staggering profit of 170 million for building the company from 700,000 all the way up to 23 million in the time he ran it. Cheryl coming up now with 2 trillion under asset management, pimco has become one of the most important voices for investors. I had a chance to sit down chief operating officer Douglas Hodge and asked how does wall street bounce wall street regulation and arent profits more important . Here is how he responded. Im not sure i would agree with that thesis. If we are serving client needs, then the we grow the size of the pie. The role the Financial Services industry is to serve as an intermediary. Move risk capital to those who have it to those who need it. In that process we earn a spread, we earn a commission, we earn a fee. That is really the root of what we do. If you are a bank, you are in a different business, you ar youn the business of lending and you land in ways that are responsiblee if you manage your Balance Sheet in ways that are responsible. We kind of lost our way, so there are ways to both reconcile the need to produce profits as well as serve clients. The big event is the fiscal cliff. If you list all the different pieces of legislation that would roll off, that accounts for 720 billion of spending. Nobody believes that is what is going to happen. Therell be some negotiated settlements whether it is republicans, democrats, weve done the analysis, our estimates and theyre basically consensus. Looking at 250 billion of fiscal tightening. Which is about 1. 5 of gdp. Which is given the context of where we are, where the economy is growing at at one half, 2 , were back wit back to somethint feels like recessionary conditions. My tray policy alone is necessary but it is not sufficient. That is why were in the third round of quantitative easing. We are in for a slow period of balance rehabilitation. And this will take years. There is no simple way out. We need a couple of things, we need a policy that reigns in some of the spending and the deficit that delivers consistent revenues and promotes growth. And we are suffering on all three right now. Cheryl he also says that wall street doesnt get it together, doddfrank will look like a warmup. Our thanks to Douglas Hodge, pimco chief operating officer. Dennis our next guest says it could go well into next year. Smith joins us now. Youve got some advice on how to navigate this volatility, but is your advice aimed more at helping us protect ourselves from it or helping us profit because those are two different things. You have to be confident. It is very spotty results, negative forecast, so over the next two weeks were lacking catalyst until the elections. We suspect the market may go lower. 1400 is the key technical level, 1393 which is the 100 Day Moving Average so we will be watching but the real action is going to happen after the election and going into next year we suspect this will be a very close election, we suspect the polar attitude will continue, not expecting a resolution. We think the fiscal cliff discussion gets pushed into 2013. Dennis and yet you see stocks returning to likely annual gain of six to 8 . Can you tell me any other asset type out there that anyone has an outlook . Keep in mind that is lower than what we have typically seen. Onone of the things investors he to realize is since 2009 hour average gdp growth has been 2. 2 . Is that going to get better . We dont think so. We have a debt burden, were likely to be in the 2 growth rate and that means the multiples will come down. We expect the multiple between 1014 times. Dennis a couple of specifics only like energy and tech. You like intel, apple, google. Apple a darling for everyone yet the bloom may be off the rose there. And tech is beat up. We have Aggressive Growth stocks and both have had different risk reward objectives. Look at intel trading 10 times. Will that continue . How would look at the Technology Cycle is overtime intel might be relevant. Theyre not relevant right now. But as we get into Technology Adoption cycle, Technology Advances will slow become a game of whos got the best manufacturing, the best scale, that is where intel will come in. We still like apple, google, names leveraged. Youre getting value in microsoft and intel. Dennis thank you for being with us. Nice job. Cheryl coming up, Charlie Gasparino investigates Vikram Pandits departure from citigroup and how it was handled. Dennis this could be the last president ial election in which you will vote at the polls. Next, the security of online voting. Cheryl as we go to break, and look at the 10year treasury. [ male announcer ] it was designed to escape the ordinary. It feels like it can escape gravity. The 2013 cclass coupe. Starting at 37,800. Wall street searching for direction ahead of the Federal Reserve latest Monetary Policy decision due in a couple of hours. The central bank expected to stick to the Bond Buying Program that it unveiled at the meeting last month. Make sure you join me and ash and webster at 2 00 p. M. Eastern for the first word on this decision. Dow chemical and 2400 jobs from the global workforce, more than half of those job cuts. The former Goldman Sachs director said to be sentenced insidertrading today. Federal prosecutors pushing, but the lawyer is asking for less traditional punishment. The latest from the Fox Business Network giving you the power to prosper. Dennis this could be the last president ial election that will force you to have to go to a polling place to vote. Voting online could be in place for the 2016 president ial election. Joining us now, president of Security Firm mcafee, todd gebhart. Are we overselling this . I think human obstacles sometimes get in the way of technological capability. Are we going to be willing to trust to do it in the tech world . I think so. We have the technology to make electronic voting a reality. If you look back over time, took a while for atm to become a comment item for us. 10, 11 years, but yesterday 77 of u. S. Citizens are involved in ecommerce in some sort in the u. S. It is just a matter of ringing the technology in a way people are willing to adopt it and use it. Dennis when a hacker can hack it in pad at barnes nobel, that is different from the idea of somebody hacking in and changing the outcome of president ial elections. How can you convince people this is really safe . I it is really not so much about can we secure the electronic voting itself, think its more about securing the identity of the voter. When you look at voter fraud and risk associated with that door that has been around in every election to some degree. Votes being left under the desk, this could be an improvement in how we vote. Here at mcafee with intel are looking at how to bring together hardware and Software Solutions to better protect the identity of the voter and the Voting System itself, things such as cloudbased, biometrics, voice, face, fingerprint as well as reputational technologies and geobased technologies that help secure that identity for the voter and the system itself. Dennis give us your best percentage guess online voting available for years from now in the next president ial election. I would say 80 . Dennis okay. We appreciate you being here. Mcafee copresident s todd gebhart. Thank you. Cheryl it is time for your west coast minute. Nevada Casino Companies pouring big money into state legislative race. These are the latest name to contribute to National Republican group trying to help republicans control the state senate. Steve wynn has given nearly half a billion dollars. Adidas seems to have an upper hand on the shoe. The latest political fight with nike. Nike filing suit saying adidas infringed on a running shoe patent. The city of San Francisco gearing up for the 2012 world series. Bart is planning to run longer trains more frequently with additional staff ready and able to give the fans in the city to the at t park with record ridership levels anticipated in that city this year. San francisco very excited and that is you your west coast minute. Dennis nicole. Nicole it is interesting to take a look at these three names. Next news in that they seem to be doing well, but a couple of factors still up in the air. Talking about the u. S. Budget uncertainty, their main thing is the uncertainty of the future, u. S. Defense budget affecting the government orders. A little uncertainty with that but they have record amount of rewards waiting to happen, set up 3. 6 and then there is lockheed martin. That is good news. They are the largest u. S. Weapons maker. And last but not least, northrop grumman. They faced one thing, lower quarterly profit and that was because they had a fall in net pension income. These three defense Tech Companies doing all right here on wall street today. Back to you. Cheryl thank you very much, we will see you at the top of the hour. Smallbusiness big ideas come, according to a new survey, smallbusiness owners are delaying hiring plans until after the election. After surveying 70 pennsylvania Small Business owners four out of 10 said they will be waiting until after the election before executing their staffing plans. Dennis and up next Charlie Gasparino investigating why the fcc is looking at Vikram Pandits abrupt exit from citi. The story you will see only here on fox business. Cheryl and as we go to break, we want to take a look at the winners on the nasdaq. Monster drink beverage coming bk strong. We will be right back. Bob. Oh, hey alex. Just picking up some, brochures, posters copies of my acceptance speech. Great its always good to have a backup plan, in case i get hit by a meteor. Wow, your hair looks great. Didnt realize they did photoshop here. Hey, good call on those mugs. Cant let em see what youre drinking. You know, i glad were both running a nice, clean race. No need to get nasty. Heres your honk if you had an affair with taylor yard sign. Looks good. [ male announcer ] fedex office. Now save 50 on banners. [ male announcer ] this is ren anjeremiah. They dont know it yet, but they gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where thhey almost never fight about money. [ dog barks ] because right after they get married, theyll find some retirement people who are paid on salary, ot commission. Tyll get straightforward guidance and be able to focus on other things, like each other, which isnt rocket science. Its just common sense. From td ameriade. Cheryl the Fox Business Network reported exclusively that the sec is now looking into the circumstances behind Vikram Pandits abrupt departure of ceo of citigroup after i asked the sec chief if citi was in the agencys crosshairs. One of the recent story that surprised many on wall street was the exit of Vikram Pandit at citigroup. If thats something the sec is going to look at in particular how the board handled the release of the information about texas . Im sorry, cheryl, that is something i cant comment on. Cheryl Charlie Gasparino with the latest. She definitely looks like you caught me. We have now confirmed, this is clearly an informal inquiry and what is going on here is essentially the sec is asking for emails and some other documents around the departure. Why would the sec care about a company firing the ceo . Obviously they can fire the ceo anytime. The way this went down, the Public Disclosures about the firing, which we should point out when he left the stock didnt move, something the sec is interested in. They did a Conference Call on monday the 15th, right . Not a word about Management Change. The board knew there would be a Management Change in that Management Change began after the bel doll clothes hear it 2 after the bell close on monday the 15th where mike oneill went to the board, we lost confidence in you, and the next morning they went out and they had a press release. Clearly we were the first report about this, others have since reported this. Pandit was ousted, basically told theres the door, leave soon. Their Public Comments to the market was something contrary to that. Now is it kosher to do that . I can tell you we talked to harvey pitt, think we have a quote from harvey pitt, he said no. Former sec chairman. One of the foremost security lawyers in the country, the ceo departure is immaterial. They forced him out, citigroup didnt do that. Also said basically there we go, i havent heard the sec is looking at it per se, but i believe the sec is looking at it. He knows something he doesnt want to talk about. In a Free Enterprise economy, who knows in a few months, Companies Boards can take proper action about their ceos. I think you can make a good case Vikram Pandit should be out. But you do have an obligation in terms of disclosure to do certain things. It has never been a more messy or sloppily disclosed ceo ousting, whatever you want to talk about it, then this one. And not only that, if my sources inside citigroup very close to Vikram Pandit, they have told me that he was ousted, we were the first report that, that is not what they publish. Cheryl he was here already. He was sent over in january of this year, and back on the ground. And that just looks bad or something else. Youre making a great point. The new ceo, you know the timing of that, by the way . He is here, the board knows at least they have made up their mind the day prior. Behold this Conference Call for pandit doesnt know what is going on. They dont tell investors he is going, they whacked him at 4 02. They say he went on his own accord. He officially resigned, but that, this is what this is an important story. Alan schwarz, dick folded his minions at Lehman Brothers in many of the banks, they were getting the market misdirection. They did not see a financial crisis coming until it was aimed right at them. That is a problem and i will tell you this is why this is important. Dennis thank you very much. Though citi stock rose right after that. Facebook told you so. Wall street friending the stock today. An analyst alighted even at the postipo plunge. Cheryl did you miss the runup . Dont go anywhere, markets now continues after the break. Dennis 80 is the likelihood we will have online voting four years from now in the next president ial race since the mcafee president. I think it will lend it will be great for the country to encourage people