Washington with what lawmakers can do to strike a deal, ellison barber at the white house on what donald trump is planning to do and christina in new york city. Despite a market meltdown, christmas shoppers with lastminute deals. We begin with doug mikell way. Reporter we were number one powerful Committee Chairman leaders on both sides of the aisle were able to look at a situation like this, 1. 3 billion the democrats want for Border Security, 5. 7 billion the republicans ones for border wall and strike a deal. Split the difference, shake hands, call it a day and go home for christmas and spare the country this unnecessary ordeal, but that is not where we are in the 21st century. Weve seen it many times. Both houses will convene at noon today but they have nothing to do. A Skeleton Crew. Many members of left for the holidays, to the frustration of many including this one republican senator. If we stay in session everyone has to stay here and debate, keep everyone in the room, they finish up the debate. As long as there are these shutdowns or continuing resolutions, everyone leaves and doesnt finish the fight it doesnt get resolve and it lingers on and on. Reporter we are left with a typical impasse. Congressman Debbie Dingell speaking for many calling saying it is lack of leadership from donald trump and congressional leaders, the American People expect the government to work with them and listen. It is the holiday season, we should be showing our better selves about driving the nation into a pointless shutdown and publicans blaming the democrats. Im not sure why schumer is changing his tone. By changing his tone he is setting the government down. The house is acted, the only People Holding up the Government Shutdown, 25 of them too, schumer. Reporter dont expect much to happen today. Most members of gone home for the holidays. If something does happen over the weekends, look for some negotiations to happen into the night, perhaps early into the we hours of christmas eve, morning, keep in mind the shutdown is relatively minimal affecting 25 of the government, tsa agents will be manning the airports, Social Security checks will still go out and the mail will still be delivered, santa claus will go on his appointed rounds delivering lumps of coal on both ends of pennsylvania avenue. Neil Merry Christmas. To the meltdown on wall street and whether this is having a Lasting Impact on main street. Christina is in new york city with more. Reporter no lumps of coal over here because most people im speaking to our happy to visit all the stores in the storefronts. We are talking markets, look at the markets this week starting with the dow down 7 , moving on to the nasdaq entering bear market territory donate , the s p is down 7 as well and the rest the russell 2000 consisting of small caps, a barometer of confidence for american group. Looking at these markets, alltime highs, we get to the definition of bear market when it drops 20 , you see the nasdaq fall 21. 9 . The dow teetering very close, down almost 17 in the russell 2000 in bear market territory. What is causing this . Bear market territory on the nasdaq, tech stocks. Usually investors move out of it because they consider them high risk. Some are saying overvalued. Amazon down 14 . I want to focus on google, the Parent Company being out of it, they hit bear market territory. We saw yesterday close 6 lower falling below 1000. What is happening on these markets. There is not one particular factor but several that contribute to market mayhem. The Federal Reserve increasing Interest Rates, quantitative tightening, reducing money supply in the market, all this talk about a possible global slowdown in 2019 worrying investors and on friday, a lot of position unwinding so a lot of selling and moving in a lot of portfolios, then youve got to talk about the Government Shutdown because that contributes to instability and algorithm trading, blame the computers but nonetheless oil falling below 50, concerns of a slowdown. Here you have it. A lot of investors worried but shoppers behind me seemed to be happy especially the one standing behind me. Neil maybe they were short of the market. We have the nasdaq in bear market down 20 . In excess of 22 following the russell 2000, very big with smallcap stock down 25 , the s p midcap index by definition mid range company in bear market territory, dow transportation average in bear market territory. A lot of people Pay Attention to that because it could telegraph bigger problems, the stuff that moves the stuff and the stuff that underlies that. Therein lies the rub with the s p and the dow close to bear market territory. Do we need to complete that . Steve forbes, retail stephen gillfoil, what do you think of this . Are you bearish . I had to change the way i did business. I was on with you and stressed higher cash limits. I dont neil is this overdoing it . Know. There are so many negatives, chief among them a central bank intentionally slowing the economy while the economy was slowing itself and Global Growth like christina said in a synchronized state of slowdown. I want people to understand quantitative tightening is so much better than people know, 50 billion a month drained out of the economy, 600 billion a year. Out of the economy. The wall is 5 billion, too much money, nobody can handle 5 billion. 10 times that every month is being trained from potential liquidity and everyone says this wasnt in the Banking System or the real economy, yes it was. When the treasury borrows money, that many goes out to contracts and does end up in the real economy. Neil the trends took place over the last decade, buying out every treasury notes to keep Interest Rates near 0 . It is not being taken. The markets have known this has happened from months, the increase in Interest Rates we had a few days ago, the fed indicated in a roundabout way that it will be easier next year. Trump has won the war with the fed even though they are trying to stand up for independence. Trump has won. The fed will be careful. Heather if this is what victory looks like they will do a december increase to show they are independent. That factored into the market. They are talking about Interest Rate increases next year, talk about two, now knocking that down. It is a facesaving way of backing off. In terms of unwinding the portfolio, that was a depression on the economy. Moving money left by banks to the real economy which weighing the economy or two big things, one is this trade thing even if you get a trade deal to get through congress, the other big thing worrying the markets is what will happen overseas. Are things going to spin out of control . Those uncertainties get an agreement through congress on top of foreignpolicy and we have that uncertainty, investors invest less and that will have an effect next year. It neil the irony would be we get a trade deal but china is too weak. Let me get your sense of the mood of shoppers and consumers because i am sure they are aware of the noise around them but they look like they will spend record amounts this christmas holiday, super saturday, whatever that means, superpanic, people scrambling, records across the board. Explain the disconnect. 34 Million People will be shopping today, most of them doing this online, paypal came out with started at that 40 of americans are shopping the a their mobile devices. This is not having an effect on the american consumer. What is having an effect on are the Retail Stocks. 95 of Retail Stocks in the s p 500 have been underperforming, the worstperforming since 2008. When you talk about macroeconomic factors, the China Economic slowdown, the trade deal people are worried about. This is scaring the retailers was the consumer has pentup demand. For the past 10 years we have worried what is going to happen with the economy. We had several gains for the last several quarters. In terms of feeling better about where the jobs are and where the economy is going, when you see Consumer Spending it is almost a delayed reaction. In the next quarter or the quarter after heather i was wondering if the fed does slow down a little bit, the president expressed frustration with the Federal Reserve talking to people can i fire this guy . Kenny, if he were, and tried to do that, would that create more panic . That we create more panic, something he cant do. It is clear that jay powell does not understand monetary policy. I will say that until the cows come home. I wrote it this week. Neil certainly not effective at what he wants to do. They have to approach practitioners who understand these things. Isnt it mostly volatility . The stock market is going to react to these potential Government Shutdowns but we have seen this in the past. Just a question of volatility. It will not have a Lasting Impact. The last shutdown in 2013 was 16 days but they gained 3. 1 . On top of quantitative tightening we have a fed that raised the funds rate 25 basis points when the stand between the two and ten year was 14 basis points and by signaling two more increases, it is not data dependent because that is looking at the past. We will use our heads, look the American People in the eye and say this is a big deal. We are close to forcing an inversion. A recession in the economy. Neil was shorterterm rates that always leads to a recession. That is a fear, a justified fear . We are in New Territory where things in the past dont work. The massive increase in money supply the last we 10 years, like hyperinflation worse than the 1970s. It didnt happen because regulation major the money did not get to the economy, loans, small and new businesses. That is to pick up again. The fed reducing the portfolio help the economy. What hurts is the economy picks up speed next year and they try to slow it down. Neil updating you on this, the government is in shutdown, lawmakers are indicating they will try to cobble together something that could be a Herculean Task and this could go on a while. Steny hoyer coming coming majority leader of the new house of representatives under democratic control on how long after this. Colitis, are you okay . Even when i was there, i never knew when my symptoms would keep us apart. So i talked to my doctor about humira. I learned humira can help get, and keep uc under control when other medications havent worked well enough. And it helps people achieve control that lasts. So you can experience few or no symptoms. Humira can lower your ability to fight infections, including tuberculosis. Serious, sometimes fatal infections and cancers, including lymphoma, have happened; as have blood, liver, and nervous system problems, serious allergic reactions, and new or worsening heart failure. Before treatment, get tested for tb. Tell your doctor if youve been to areas where certain fungal infections are common, and if youve had tb, hepatitis b, are prone to infections, or have flulike symptoms or sores. Dont start humira if you have an infection. Be there for you, and them. Ask your gastroenterologist about humira. With humira, control is possible. Neil we are told an hour and 45 minutes, trying to find a way to avoid a shutdown that is going into its 11th hour, the incoming majority leader steny hoyer with us right now. Good to have you, thank you for coming, congratulations on your appointment. Let me get a sense of how long you see this going . Difficult to tell because we thought we had this resolved when donald trump, the Vice President said he would sign a bill passed by the senate and wednesday a bill we would have voted for and would have kept the government running until february 8th but the president changed his mind so it is difficult to tell. However, it ought to be clear to the president that he doesnt have the votes for a wall. He does have votes for strengthening Border Security through technological means, personnel means and the number of other ways and that is not going to change between now and whenever. So it would be in the best interests of the country and of the president and congress if we would come to agreement in the next 24 or 48 hours. The president has been redefining it, are we really stuck on semantics or what . We are stuck on what he is talking about but he modified his rhetoric and perhaps negotiators which include both his incoming chief of staff and Jared Kushner and mike pence, perhaps they will come up with a solution that senator schumer and the democrats and nancy pelosi feel is consistent. Is that position modified as well . Democrats change their minds, but at the beginning, the very things youre repudiating now . I dont know that i agree that we are repudiating, weve always been against the wall. We always thought the wall was an ineffective way. Neil that was part of the package that were summarily voted on and approved and ultimately now rejected so it is sending people mixed messages. I dont want to quibble but what was passed by the senate last wednesday was a result of discussions and was a bill we would have supported. When you say ultimately that was the bill mcconnell thought the president agreed to and he sent it to the house, but for the president changing his mind saying i wont sign that bill, that bill would have passed with overwhelming support, perhaps unanimous support on our side and whether the republicans would have had a majority, you opened up the government before under john o boehnwr when he had only 240 republicans to vote for it and frankly mccarthy and ryan and Mick Mulvaney voted to keep the Government Shutdown. Neil enough went along with him to avoid that so that is what people are waiting to see now. Democrats overwhelmingly went along not because without choice but was a compromise. All of these bills we are considering a republican bills. Some things we like and some things we didnt like but they were compromises and we are prepared to vote for them but they are all republican bills and we support a lot that is in there. Neil theres a lot of Common Ground, less Common Ground for a way to keep the government lights on in the first week of february, the president did table that at the last minute and a lot of people were surprised but having said that, is there a way to revisit Something Like that and get closer to the 5 billion hes talking about whereas the last speaker mentioned 1. 6 billion as high as democrats go. We all want to get to compromise. People are at the table, senator alexander, flake and corker said they were pleased with that. There is agreement on process, not substance. All of us hope we can reach some agreement because we all agree we want the border secure. We dont want people coming into the United States, we dont know who is coming in, we want to make sure theres an orderly handling of commerce. We are all for that. It is a question, there is a significant, substantive disagreement how you do that but the president modified his rhetoric and if he can get to a place we can agree on strengthening security, technical means, personnel means or whatever other means, hopefully we can get to an agreement. Neil hope you have a Merry Christmas and hope you are not working there. Thank you very much. Liz cheney on what she makes of all of this. Neil congress isnt going anywhere, neither is the president of the United States awaiting a hail mary pass on the part of the lawmakers, and starting in 90 minutes to keep the parcel shutdown longer. Allison barber is at the white house right now. Reporter the white house is not budging on wanting funding for border wall, whatever you want to call it. The deck a Deputy Press Secretary believe donald trump is in a position of power. The president will go as far as it takes to protect the American People. Negotiations are ongoing. He sent top negotiator securing the Vice President to the hill all day long to have a conversation. Reporter the white house is democrats are going back on plans, there was reneging on deals that were made, democrats disagree with that. Donald trump began his fight by telling democrat senator Chuck Schumer he would take the blame of a shutdown were to occur. He changed his tune on who is the one responsible for the shutdown. I will take the mantle. I will be the one to shut it down. I wont way before. Last time you shut it down it didnt work. I will take the mantle of shutting it down and i will shut it down for border call it a democrat shutdown, call it whatever you want. But we need help to get this approved. Reporter the white house is the wall is something the president campaigned on and why people voted for him and it is necessary to protect the country. In a quinnipiac poll, 54 of American Voters oppose building a wall on the mexico border and 54 said the wall is not necessary to improve Border Security but 86 of republicans said they support the wall and 59 said they support shutting down the government over the wall. Democrat strongly oppose the wall. Voters were divided. The president was scheduled to be in florida by now. Instead he is here tweeting a photo yesterday from the oval office, the white ho