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The Shanghai Composite Jumps Over Three-Percent; RNC Officially Ends Its Business Relationship with NBC News; WSJ: Hackers Now Targeting



Its Business Relationship with NBC News; WSJ: Hackers Now Targeting

Wireless Routers for Backdoor Access ; Crude Oil Rebounding Higher After

Dropping To $29 A Barrel; GOP Rivalry Heats Up; Fiorina Gaining Steam?;

China To Inject 600B Yuan Into Financial Market, PBOC - Part 4>

Energy; Oil; Shanghai; Stock Markets; RNC; Media; NBC News; Hackers;


SMITH: Dominick, you agree?

TAVELLA: Yes, we brought this up earlier. I think we were off-camera, but the consumer has the money in their pocket. They're just not feeling very good, --

NIXON: Exactly.

TAVELLA: -- whether we are talking about thing the around the world, terrorism, the political climate here in the United States, certainly the market's declining over the last couple of months. People aren't feeling very good and they're not going to spend that money if they don't feel good about it.

SMITH: Katy Nixon, anything specific sectors - we've got to go, but anything you really like right now? Trying to keep it positive.

NIXON: Well, let's keep it positive. We had some great earnings this morning out of some financials. We continue to like financials in this environment. So that's where we'd be focusing.

SMITH: All right; good stuff. Katy Nixon, thank you so much.

NIXON: Thank you.

SMITH: All right, we are going to be right back.


SMITH: Welcome to "Mornings with Maria"; I'm Sandra Smith. Maria Bartiromo is on assignment.


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(Show: MORNINGS WITH MARIA) (Date: January 19, 2016) (Time: 08:00:00) (Tran: 011903cb.231) (Type: Show) (Head: China Announces Stimulus, Injects 600 Billion Yuan into Market; Bank of America Announces Fourth Quarter Earnings, Beat Estimates on Earnings; J&J Announces Job Cuts; Crude Oil Up More than 2 Percent, but Still Below $30 a Barrel; Trump-Cruz Rivalry Continues to Heat Up; Trump Bungles Bible Reference at Liberty University; Winter Storm Heads for Washington Area; Eagles Founding Member and Rock and Roll Hall of Famer Glenn Frey Dies at Age 67; Search Underway in Iraq for Three Missing Americans; Michigan Governor Apologizes for Flint Water Crisis; David Patraeus Faces Potential Demotion from Four-Star Status; Families of several Americans released by Iran, celebrating the return of their loved ones, Levinson was not among the five Americans released late last week, when the White House struck that deal to removed sanctions against the dangerous regime; The battle for the presidency is heating up, as rival GOP candidates Donald Trump and Texas Senator Ted Cruz, fight for the Republican nomination) (Sect: News; Financial)

(Byline: Sandra Smith, Blake Burman, Jo Ling Kent, Tim Kane, David Webb, Dominick Tavella, Scott Brown, Nicole Petallides, Maria Molina)

(Guest: Andy Lipow, Michael O'Rourke, Dominick Tavella, Scott Brown, David Webb, Ed Moldaver, Wayne Chrebet, Christine Levinson, Dan Levinson, Tim Kane, David Webb, Dominick Tavella, Scott Brown)

(Specs: Hostage and Kidnapping; Politics; Elections; Trade; Business; China; Stock Market; BOA; J&J; Oil; Donald Trump; Ted Cruz; Liberty University; Weather; Glenn Frey; Iraq; Michigan; David Patraeus)

SANDRA SMITH, FOX BUSINESS: Welcome to MORNINGS WITH MARIA, I'm Sandra Smith, Maria Bartiromo is on assignment.

It is Tuesday, January 19th, and with me this hour is former Massachusetts Senator Scott Brown.

Diversified Financial Advisors Dominick Tavella and radio show host David Webb. But first, your top stories at 8:00 a.m. on the East Coast.

The Chinese government announcing a 600 billion Yuan injection into their financial market.

This after a report of the worst economic growth in China in a quarter century. Chinese GDP grew at 6.8 percent, that was slower than the third quarter, but it was in line with estimates.

But again, key with that number, all of 2015 was the slowest growth for China in 25 years.

Looking at Asian markets, a rally across the board in today's trading session. And back here at home, Futures showing the markets are ready to move higher after Friday's big selloff.

Remember yesterday was a holiday, no trading. Plus, breaking this morning. Bank of America announcing fourth quarter earnings, beating estimates on earnings and missing slightly on the revenue side.

The stock continues to move higher by 20 to 30 cents in the pre-market. And Morgan Stanley reporting fourth quarter results beating on earnings and revenue.

Shares are trading about a dollar and nearly a dollar higher in the pre- market trading sessions.

Johnson & Johnson also out just moments ago, announcing a cut of up to 6 percent of its work force in its medical devices division.

This in an effort to cut a billion dollars in annual costs. The stock is pretty higher in the pre-market.

And crude oil prices, we're watching them for you this morning, they have been up more than 2 percent, well off of their highs of the early session there, but still below $30 a barrel.

Up eight-tenths of 1 percent, we'll continue to watch that story for you.

And turning to politics. Well, the Donald Trump's-Ted Cruz's feud continues to pick up steam.

Mr. Trump looking to snuck evangelical support in a speech at Liberty University yesterday. Trump however, the subject of criticism for this botched Bible reference.


DONALD TRUMP, CHAIRMAN & PRESIDENT, TRUMP ORGANIZATIONS & FOUNDER, TRUMP ENTERTAINMENT RESORTS: One of the people I'm running against, I won't use names, because we don't want to insult anybody.

And this is really such nice religious people, I love it, such great Christians. I can't say bad.

Am I allowed to say bad in this room? We are going to protect Christianity -- 2 Corithians, right? 2 Corinthians 3:17, that's the whole ball game.

"Where the spirit of the Lord" -- right? "Where the spirit of the Lord is, there is liberty".


SMITH: Well, after a mild start to the season, look at this, Winter finally here. It appears a potential (AUDIO GAP 00:02:52-54) major cities along the i95 corridor.

A report said New York City could see as much of a -- as a foot of snow this weekend. And it's a sad morning in the world of Rock and Roll.

Eagles founding member and Rock and Roll hall of famer Glenn Frey passing away at the early age of 67.

Band mate Don Henley saying, "he was like a brother to me". Legendary comic, Steve Martin tweeting, "my friend from the early days and an important member of the Eagles has died. We love you, Glenn Frey."

First, a breaking news this morning. China set to inject stimulus into its financial markets. Jo Ling Kent has the very latest on this and its impact. Jo Ling Kent.

JO LING KENT, FOX BUSINESS: Hey Sandra, breaking news earlier this morning. The Chinese Central Bank injecting new stimulus to give their markets a boost.

This after Chinese GDP growth increased by 6.8 percent in the fourth quarter, meeting expectations but falling from the third quarter.

For the full year of 2015, expansion slowed down to 6.9 percent, marking its slowest growth in 25 years.

Despite the fall, Asian markets are rallying as the Chinese Central Bank announces it's injecting 600 billion yuan to medium term liquidity in need especially ahead of the Chinese new year holiday.

Earlier, the Hong Kong, Hang Seng index closed up 2 percent, anticipating this action. The Shanghai Composite also ended 3.2 percent. (AUDIO GAP 00:04:15-21) up triple digits at 240 points. Sandra.

SMITH: All right, Jo, thank you. Well, China shows signs of slowing, our Futures point to a sharply higher open on Wall Street this morning.

You're looking at Dow Futures up 240, S&P Futures up 28, the Nasdaq Futures leading the way right now, up about 65 points in early trading.

We're also looking at oil on the rise this morning just below $30 a barrel, but still up about 1 percent for the (AUDIO GAP 00:04:59-00:05:02).

Markets, I would like to bring in Jones Trading Chief Market Strategist Michael O'Rourke, and from Houston Lipow Oil Associates President Andy Lipow.

All right, Andy, let's start with the oil first, has oil hit a bottom?

ANDY LIPOW, PRESIDENT, LIPOW OIL ASSOCIATES: Well, I don't think yet, but it is surprising that here.

The Iranian sanctions have been lifted and we're seeing oil up a little bit rather than down a couple (AUDIO GAP 00:05:23-31).

SMITH: All right, and then you, when you look broadly speaking at the markets, Michael O'Rourke, the equity market, the stock market seems to be reacting to oil. So --


SMITH: What happens now?

O'ROURKE: And that's not good news. Because as we know, oil is an oversupplied market, inventories in this country are probably 25 to 30 percent above the seasonal levels for this time of year.

So, as -- oversupplied, you know, for some time probably for the next year or so.

SMITH: So, could we see $25 oil?

O'ROURKE: I think we can. And I think, you know, at a minimum, it's going to be -- once it turns out, I'm an oil barrier, I think the majority of the move has already occurred.

But it's going to be volatile and it's going to be jumping around, and probably, you know, a 30 percent range looking for some type of stability.

And so, it's something you got to be careful about. And you know, the best thing for the equity market to do will be, you know, stop following oil.

SMITH: And Mike, we haven't had a chance to talk in the new year. I mean, broadly speaking, the last time we saw this sort of rough start --

O'ROURKE: Yes --

SMITH: As far as the stock market is concerned. It was back in 1991 and we looked at the performance, by the end of the year, the stock market rose double digits, more than 20 percent.

After a significant drop in the first couple of weeks of the year. So, what are you forecasting for a year-end at this point?

O'ROURKE: You know, I'll believe -- see, I think this is more like 2008. We saw -- you know, a lot -- the tide turned last year in 2015, where all the headwinds that drove the bull market.

Dow was -- that drove the bull market, turning into headwinds now. So, I actually think this market is going to be significantly lower.

You know, I think somewhere in the 1700 and 1800 range on the S&P 500 because, you know, the things that drove the bull market earnings, the economic recovery, monetary policy, they're all headwinds down, and that's going to be a problem for investors --

SMITH: Wow, I mean, you're looking at the S&P 1880, you're saying we could -- we could fall and end in 1700s?

O'ROURKE: I think there's a possibility of that, yes --

SMITH: Wow. Andy Lipow, what are you looking at as far as the biggest driver in our markets right now, particularly when it pertains to oil.

I mean, we've got China, huge story, the consumer, a huge story.

Even though they're saving all this money at the gas pump, Dominic has been talking about this morning.

They're not spending it elsewhere.

LIPOW: Well, I think they're spending it as on more gasoline, because they're driving their cars and buying bigger cars.

And we're seeing it in traffic, in miles driven. So, that's where we're seeing it.

But also the thing that I'm looking at the most is production here in the U.S., to do what -- declining rig count as well as some production shut-ins that I'm expecting up in Canada.

As well as we're also seeing in a country like Oman where they're laying off some oil rigs, and this year they're expecting their production to decline.

So, it's the supply side that's going to be the big story for this year.

DOMINICK TAVELLA, PRESIDENT, DIVERSIFIED FINANCIAL CONSULTANTS: Well, we saw this stimulus package coming out of China today. And that -- the projections for China oil imports were that, oil was going to increase -- imports were going to increase by 5 percent.

Natural gas price, as much as 8 percent. So, China's economy doesn't fall off a cliff as some people are projecting.

And we have to see some -- on the demand side, some improvement. And certainly in Europe, it's not falling off the cliff, at least not yet.

And we could see some improvements there also on the demand side.

LIPOW: Well, yes, I mean, in China especially, when they're selling 22 million cars a year, we see very good demand, growth for gasoline.

On the other hand, the bad news is, we're seeing a lot of diesel exports out of China adding to the oversupply.

And that's really an indication of slowing construction growth. And when you've got diesel coming out of Asia, diesel coming out of the Arabian Gulf and flooding the markets.

That's now impacting refining margins.

SMITH: All right, so, Michael, I want to get you in on the earnings side, because we've got earnings from a bunch of the big financial names this morning.

Morgan Stanley better-than-expected earnings. The financial seem to be -- seem to be shaping up to be pretty bright spot in the earnings season.

O'ROURKE: And so, the group has been under a lot of pressure (AUDIO GAP 00:09:22-28) interest rates to rise for the net interest margin.

So, you have this balance going on right now as global growth is slowing. Or is it one rate hike and the Fed is on pause now?

They actually -- you know --

SMITH: What's the answer to that by the way?

O'ROURKE: Well, obviously, we continue to have financial market volatility, the Fed will probably be on pause.

But you know, we had great jobs growth, there is some strength in the economy out there, but we need to see more momentum.

Things like industrial production down year-over-year for the first time, down 1.8 percent last year.

You know, that's not a good sign for the economy --

SMITH: And since we've got Senator and David Webb here, the political landscape for you watching the stock market. How much is that a factor in your decisions in 2016?

O'ROURKE: You know, I think investors need to see the -- you know -- more -- you know, the rigs take some form here.

You need to know who is going to --

SMITH: Is there any particular candidate that will be more friendly for --


SCOTT BROWN, FORMER UNITED STATES SENATOR: Well, they want to see certainly stability --

O'ROURKE: Exactly --

BROWN: In the new year --

SMITH: Yes --

BROWN: Seventeen. They want somebody who is going to go in there and set a good tax policy, be a leader and not attack businesses and individuals in certain regulatory and tax certainty.

I mean, it's --

DAVID WEBB, RADIO HOST: Right, and do we really heap this on just the presidential candidates when in fact, policy comes out of the Congress.

So, when the candidates you're looking to -- Scott's point, to 2017, but right now, you're looking at the current policies and all these policies play out over the next -- well --

SMITH: I was just simply wondering if there was a candidate that would be better for the U.S. stock market that you see --

WEBB: Well, the interesting thing is you have someone like Donald Trump who is obviously a businessman and you would think is a pro-business candidate.

But when he says he's going to have Apple bring jobs to the United States, that probably not going to be good.

You know, Apple investors are not going to like that because it's going to hurt their profit margins.

So, you really don't know how things are going to shape up and you know, the landscape just has to solidify here.

O'ROURKE: And Sandra, to your point --


I know we got to go. But when Reagan came in, he completely changed the tone of this country after the Carter years.

WEBB: Right --

O'ROURKE: So, one man can make a difference --


WEBB: Right --

SMITH: Wow, all right, we'll live it on that note this morning, guys, thank you so much, Michael O'Rourke and Andy Lipow for joining us.

O'ROURKE: Thank you.

SMITH: All right, coming up, the saga of General David Petraeus may not be over. Defense Secretary Ash Carter weighing new punishment, we've got those details.

And later, the wife and son of an FBI agent still missing in Iran. They will be telling their harrowing ordeal.



SMITH: An intense search underway in Iraq right now for three missing Americans. Jo Ling Kent has that and other headlines that we're watching for you this morning. Good morning Jo.

LING KENT: Good morning Sandra. Iraqi security forces are searching the Baghdad neighborhood where the three U.S. citizens were reportedly kidnapped over the weekend.

Iraqi officials say, the American contractors were taken from their home of their interpreter, but some reports are describing the apartment as a brothel.

Tensions rising in Flint, Michigan. The Governor Rick Snyder has acknowledged yesterday that the water crisis in Flint is a disaster, but said, he will not be stepping down.

Many are calling for his resignation over his handling of the water crisis there. Protesters meanwhile picketing outside his home yesterday in Albert.

And the Flint mayor said, federal aid, the city is set to receive is just a tip of the iceberg of what will be needed.

And there's a new report this morning that the Pentagon may retroactively demote Retired General David Petraeus.

"The Daily Beast" reports that Defense Secretary Ash Carter will consider whether to overrule the armies recommendation to maintain his rank.

The demotion would be due to Petraeus' disclosure of classified information to his biographer-turned mistress while he was still holding his office. Sandra, back to you --

SMITH: All right, Jo, thank you. Well, a blast of dangerously cold temperatures is moving across the U.S. Midwest this morning.

This as we are seeing along the Northeast. Preparation for a big snow storm possibly this weekend.

Fox News meteorologist Maria Molina will tell us what we need to prepare for. Maria, is it coming our way?

MARIA MOLINA, FOX WEATHER CENTER: Hi Sandra. Well, there's still a lot of uncertainty because we have so many days leading up to the storms.

So, a lot can change. But it does look likely that we could have some snowfall across portions of the Northeast.

And it could be the first significant snowstorm of the season for many big cities, including New York City and even farther south into the Mid Atlantic.

But before we get there, we have to talk about the cold temperatures. Because we have cold, current wind-chill temperatures out there, it feels like 1 degree right now in New York City.

It feels like 2 in Boston, and well below 0 in places like Pittsburg and also in Chicago. So, as we head out the door this morning, you really got to bundle up because it's dangerously cold out there.

And those high temperatures should stay below average for many areas, even places like Atlanta, Raleigh and Memphis. You're not going to make it out of the 30s as we head into this afternoon.

And over the next few days, temperatures will begin to moderate a little bit across the Eastern U.S., but they are going to stay very close to average.

And that's what could set the stage for our next storm system across parts of the Northeast, Mid Atlantic, come late Friday and also into Saturday.

But again, a lot can change before then, we are going to be tracking this another storm system that's going to be impacting parts in Missouri and also Illinois throughout the day today and also into tomorrow with some light snow.

Generally, we're looking at less than six inches of snowfall accumulation, but as it impacts Kentucky come Wednesday, we could be looking at heavier snow totals along some of the higher elevations.

Let's head over to you.

SMITH: All right, Maria, thank you.

MOLINA: Thanks.

SMITH: Well, coming up, from the grid iron to the board room, former New York Jet great Wayne Chrebet -- God --


SMITH: I am just -- there he is, there he is, OK, he is coming in to set, everyone -- all the guys on the set are yelling at me.

All right, he's going to come in and discuss the transition that he made from scoring touchdowns to the field of scoring in these markets.

I'm so glad you guys are here, so I can apologize.


Oh, man, hey guys.



SMITH: All right, welcome back. From football to finance, a former NFL wide receiver Wayne Chrebet made history playing 11 seasons with the New York Jets.

But now the ex NFL star is scoring big in the boardroom in a wealth management firm Moldaver, Lee & Chrebet Group.

This -- people in the close by the way. He joins us in studio now along with long time business partner Ed Molda -- I'm having name problems this morning.


SMITH: Moldaver, OK, beautiful. So, big question, what is the big play in the area of finance now, going from football to finance?


SMITH: Yes --

CHREBET: Yes, I got into the business eight years ago, joined Ed. The biggest thing for me is we started the sports and entertainment initiative.

The biggest thing is you see players a lot of times, 75 percent are either bankrupt or have financial distress.

And I think just trying to get the word out and what they can do to avoid that.

We started that and we've had some success and this is just trying to make that transition for them to -- from player to retirement, so they don't have that problem.

SMITH: Why is that transition so hard? Because we do hear those stories so often.

CHREBET: A lot of times it's surrounding yourself with the right people. You know, players tend to have their family members and friends do their --

SMITH: Yes --

CHREBET: Finances and accounting work and they're having tax problems issues later on in life, and, you know, and they need to take care of that and not do that.

SMITH: So, what is the most important thing to help these players with them? What do you do? I mean, this is during play and post play.

MOLDAVER: Yes, the biggest thing to understand is, they're not -- it's not a unique situation.

It's like anybody else, all of a sudden losing their job, right? So, the only difference is these guys made tremendous amount of money and they have to understand that when it ends, it should last them for the rest of their -- for the rest of their lives really.

And (AUDIO GAP 00:04:02-05) at around 9 percent a year. That basically means that if you don't spend that million dollars today, you're going to have $17 million in 30 years.

And that $17 million at 5 percent will get you an additional $850,000 in income. So, you have to understand you make the choice now to buy an expensive car or blow that money versus saving it.

SMITH: All right, well, Wayne -- Senator, I just want to ask --

BROWN: Yes --

SMITH: Wayne --

BROWN: Sure --

SMITH: A real question --

BROWN: Sure --

SMITH: When you see the markets doing what they're doing right now. Dow (AUDIO GAP 00:04:31-36), a lot of -- the average investors out there have been very fearful that this is going to be a very ugly year for the market.

BROWN: Right --

SMITH: What do you do when you're invested in a market that shows this type of volatility. Do you stay in it for the long haul? I mean, what's your advice to people?

CHREBET: You know, when you talk to athletes, we're competitive by nature, and you say, you know, maybe we can all (INAUDIBLE) or looking for safe stuff.

You know, even if you're looking for a 5 percent, 6 percent, 7 percent. Athletes don't want that.

You know, they're obviously looking for the big hit, 50 percent, 60 percent --

SMITH: It's a homerun --

CHREBET: Yes, it's a homerun and that's the biggest problem. You know, from personal experience, guys come to you and they attach a big A-list actor name to it or a high profile athlete.

It's the best thing, new investment, great idea, and players are losing their --


SMITH: All right --


BROWN: Congratulations, big Pagers(ph) fan. But we talked offline, we're scared of you --

CHREBET: Right --

BROWN: In particular, so congratulations.

CHREBET: Thanks --

BROWN: But when you're looking at those young athletes like Gronk(ph) for example, he's commented that he's saved every penny of his actual salary.

And he's working off his fees that he gets for, you know, endorsements and things like that.

Is it the key to get these guys like -- right, when they sign their contract -- someone they can trust, getting into annuities, insurance plans.

You know, those things that are actually going to be there when they're done. And try to separate them from a lot of the hangers on the people that just take.

How do you actually break through that kind of mold?

CHREBET: Yes, (INAUDIBLE). It's tough, like sometimes we have athletes in their second and third contract they get it.

They know it's not going to last forever. My career ended with a concussions, done. I woke up the next day, they retired me, my career was over.

I had three years left on my contract --

SMITH: Wow --

CHREBET: I was done, never made another dollar. So, you got to get to them early, but you got to get past the family members and that -- you know, first line of defense and it's hard.

But if you can get to them early and explain to them, they don't need to get that second and third car or buy that third, fourth house for everybody.

SMITH: That's a harsh reality that --

CHREBET: It's --

SMITH: In your profession things can change that fast --

CHREBET: It happens --

SMITH: If you need to be --

TAVELLA: And Wayne, it's right across all the sports, right? It's not just football, it's baseball, it's hockey, right?

CHREBET: Well --

TAVELLA: And athletes as a whole. Just a vast majority of them end up being broke.

So, what's the voice that finally gets them to wake up and go, you got to just scroll some of this money away.

CHREBET: Just speaking from personal experience, I think that's what helped. My business is, I've been there -- and it's not just retiring and how I can explain it to them.

It's not just financially but psychologically, I know what it's like to make that transition. You know, when you retire, I took two years off to figure out what I wanted to do.

You know, you might go out there and want to spend crazy amount of money, because you don't want to do it yourself.

SMITH: I think we all kind of want to do that.

CHREBET: Yes, it's a tough league(ph) --

SMITH: You got to think ahead --

CHREBET: You don't know what you want to do, so I think I could help athletes for a while with that --

SMITH: All right, Ed, thanks for coming in. And also, I have to get real quick, Wayne, your Super Bowl pick.

CHREBET: Not the Patriots --

BROWN: Come on, dude, come on dude --