MARIA-00
declines, so does gasoline. According to Triple-A, gas prices were down for
19 days in a row; Washington D.C. and Some Cities Along the East Coast Dig
Out from the Weekend's Historic Blizzard; Michael Bloomberg Reportedly is
Revisiting a Third Party Run for President; Four Top Twitter Executives
Leave Twitter; McDonald's 4Q Revs to $6.34 Billion in 2015; Johnson
Controls to Buy Ireland-Based Tyco for $16.5 Billion; Denver Broncos to
Take on Carolina Panthers in a Championship Game; Former Texas Governor
Rick Perry Endorses Ted Cruz; Dole Closes its Springfield Branch after
Listeria Outbreak; Work on Niagara Falls could Dry Up Falls for Two Years;
Rudy Giuliani Joins Greenberg Traurig as Global Chairman of Cyber Security - Part 1>
McDowell>
Keith McCullough, Anastasia Amoroso, Bob Murray, Todd Teske>
NFL; Rick Perry; Ted Cruz; Dole; Niagara Falls; Rudy Giuliani; Greenberg
Traurig; Stock Markets; Energy; Politics; Policies; Government; Prisons;
Storms; Business>
MARIA BARTIROMO, HOST, MORNINGS WITH MARIA: Good Monday morning! Welcome back everybody, I'm Maria Bartiromo, it is Monday, January 25th at 8:00 a.m. on the East Coast.
Here are your top stories. Cities along the East Coast digging out of this weekend's historic blizzard.
Washington D.C. is still shut down this morning, the federal government closed and a travel ban still in effect.
Meanwhile, in New York City, seeing a bit of a rebound right here. Transportation largely back up and running, schools will be open today in New York, but it's still pretty messy out there.
Onto the latest in the race for the White House right now. Former New York City Mayor Michael Bloomberg reportedly revisiting a third party run for president as first reported by our own Charlie Gasparino on this program.
The billionaire apparently says he sees an opening because of Donald Trump's stronghold on the Republican side.
And Bloomberg's concerns over both Democratic candidates Hillary Clinton and Bernie Sanders. Now, onto the latest Fox News polls, we're about a week away from the Iowa caucuses.
And here is what we know, Donald Trump takes back the lead in Iowa with 34 percent support, Texas Senator Ted Cruz is in second place right now with 23 percent.
A major shakeup coming to Twitter meanwhile. Four of the companies top executives are leaving as Jack Dorsey, CEO tries to turn around the struggling social media giant.
The stock has lost half of its value just in the last year, and it is down again this morning about 5 percent.
Onto the broader markets, oil once again driving the conversation on trading desks today. Oil is down two and three-thirds percent, this is off of the worst levels of the morning by the way.
It is pressuring equities. In the U.S., we're expecting a lower opening for the broader averages after a pretty good rally on Friday.
The Dow industrials expected to open down 27, Nasdaq, S&P 500 also under selling pressure.
It is going to be a big week for the markets with plenty of fourth quarter earnings on top including Apple which reports tomorrow.
Amazon and Facebook later on in the week, plus, we will be hearing from the major central banks around the world as well.
ECB President Mario Draghi is speaking today. The Federal Reserve is starting a meeting tomorrow and it will end that meeting on Wednesday, so we'll get the Fed's assessment of the economy Wednesday.
And then there's a Bank of Japan meeting on Friday, some people expect more stimulus out of the BOJ on Friday.
Other companies to watch this morning, Tyco & Johnsons Controls. The company's are merging.
As part of that deal, the company's headquarters will be in Ireland, effectively lowering the corporate tax rate to some 14 percent or so as these companies merge in an inversion.
As you know, the companies acquiring each other so that they could get -- move their headquarters out of the U.S.
Shares of companies mixed on the news as you could see, Tyco looking higher right there.
Super Bowl 50 is set. The Denver Broncos will take on the Carolina Panthers in a championship game.
The Broncos took down Tom Brady and the New England Patriots this weekend 20 to 18, then it was barely a contest between the Panthers and the Cardinals.
Cam Newton led his team to victory to the tune of 49 to 15 yesterday. A historic blizzard rocks the East Coast over the weekend.
Washington D.C. trying to dig out following one of the worst snowstorms ever to hit the nation's capital.
Blake Burman is in Washington D.C. right now on the streets to give us an update. Blake, good morning to you.
BLAKE BURMAN, FOX BUSINESS: Hi there, Maria, good morning to you as well. Dig out is certainly the term here this Monday morning.
They have just started to pile all of the snow off to the side to try to get the sidewalks clear and especially the streets clear in Washington D.C. after this historic storm over the weekend here that came in Friday afternoon.
Stopped about Saturday evening at around midnight, but still the damage has long been done, depending on where you live in the Washington D.C. area.
You probably got in the beltway area surrounding suburbs. You probably got somewhere around 20 to 30 inches of snow.
This place was shut down, locked down for the most part over the weekend. The federal government is closed down today, local government closed down today as well.
And that will probably be the story here for a couple of days as well. The airports were shut down Saturday and Sunday.
Some 8,000 flights that were canceled already today. I just checked a little while ago, about 1,200 flights nationwide that had been canceled.
There was a little bit of fun though to be had here in the D.C. area. Check this out, a snowball fight in the DuPont circle area, this is just outside of Georgetown.
A lot of people were just kind of cooped up in their homes over the weekend and wanted to do something on Sunday, that was certainly one of the activities.
It is back to work though here in D.C. and by the looks of things this morning, a lot of people are staying home or being forced to walk to work. Maria, back to you.
BARTIROMO: Amazing shots there, Blake, thank you very much. We'll be watching that --
BURMAN: Thanks --
BARTIROMO: Clean up, Blake Burman in Washington --
BURMAN: Yes --
BARTIROMO: This morning. Breaking news also this morning. Former Texas Governor Rick Perry is endorsing Senator Ted Cruz for president.
Joining me right now on a first on Fox Business interview is former Texas Governor Rick Perry. Governor, good to see you, thanks for joining us.
RICK PERRY, FORMER TEXAS GOVERNOR: Good to be with you, thank you very much.
BARTIROMO: Tell us what's behind this endorsement of Senator Cruz?
PERRY: Well, I spent a good bit of time after I had suspended my campaign, taking a look around and Senator Cruz reached out to me a number of times and I spent a lot of time with him.
When you have few precious hours off from a presidential campaign, I know how valuable that is.
And the Senator came to Round Top, Texas, and we spent some very appropriate time together.
And we didn't talk policy, we didn't talk about politics, I wanted to know who Ted Cruz the man was.
Because I really didn't know him. I had this caricature of him that I had gotten from the newspapers and through the political lands.
And what I found was a very different individual, a person who is an extraordinary listener.
A person who I'm comfortable with on day one can be and will be a prepared, ready commander-in-chief.
BARTIROMO: Well, tell us a little more about what you learned about him. Because there were some skeptics who say, look, he's not going to be someone to bring people together.
A lot of people basically talked about how a number of senators and his own colleagues feel that they can't get along with him.
So, I mean, is it that he's just that principled that he sticks to his viewpoints and that's why he's had conflicts within Congress?
PERRY: Well, I think that's certainly part of it. I go back to my first term as the governor, my first session as governor.
I vetoed 82 bills which was a record in Texas and people said, you can never -- you can't do that, you can't get along with the house and the senate, vetoing that number of bills.
What it was, was a principled stand. And it sent the message of, listen, this is what I believe in, and from then on, we had a very good working relationship.
We got a lot of things done in the state of Texas. From time to time, you have to hit the mule right at the side of the head to get its attention.
I think that's what the Senator did. He said that's what he was going to do when he was running for the United States Senate.
And when he went to Washington, he did that. Principled leadership and I think a principled conservative is what we see in Senator Cruz.
And I'm very happy and proud and honored to be able to work on his team.
BARTIROMO: Yes -- no, I think there's a lot to say about how principled he is. I agree there.
But do you think he can win a general election?
PERRY: Oh, absolutely, I think so. When you look at Hillary Clinton or Bernie Sanders, whoever the Democrats are going to put --
BARTIROMO: Yes --
PERRY: Forward, there is clearly a time for the American people to take a look at this and say, listen, this is the vision, this is what we want an American to say.
If we want an America that's back economically, principled. We want a country that does allow the states --
BARTIROMO: Yes --
PERRY: To be competitors. And Ted Cruz, that great believer and quite knowledgeable man of the constitution believes in the 10th amendment.
BARTIROMO: Yes, governor, stay with us, because I want to bring in former New York City Mayor, Mayor Rudy Giuliani joining the conversation.
Former mayor, good to see you.
RUDY GIULIANI, FORMER NEW YORK CITY MAYOR: Well, hello Rick! Rick is my --
PERRY: Hey --
GIULIANI: Very good friend --
PERRY: Hey man, how are you?
GIULIANI: My strongest supporter when I run for President --
PERRY: America's mayor --
BARTIROMO: Yes --
GIULIANI: And someone that I greatly admire, I wish he was still in the presidential race.
BARTIROMO: Your thoughts on his --
PERRY: Well, thank you mayor --
BARTIROMO: In his endorsement now --
PERRY: And you talk about a man who understands the constitution, we're talking to one right there, Mayor Giuliani.
(LAUGHTER)
GIULIANI: I think -- I met with Senator Cruz also for about two hours, came away with a lot of the same impressions that Rick did.
That he's a much different guy than the way he's presented in the -- in the -- in the media.
I probably have more concerns about the fact that he would run so far right that he'd give away the north, east and the west.
And we'll be down to that like one state election again, where we had to win Ohio, we'd have to win Florida --
BARTIROMO: Which is why I ask --
GIULIANI: And I do --
BARTIROMO: Can he --
GIULIANI: And I do think that one of the reasons he was such a great governor, is not just that he was principled, he knew how to make deals.
And Governor Perry was brilliant in making deals. He knew how to bring people together.
BARTIROMO: This is the issue that I'm touching on, governor. This is what I'm talking about --
GIULIANI: And he was -- and he --
BARTIROMO: Is he too conservative to win --
GIULIANI: He was a great governor --
BARTIROMO: The general election? We know he's incredibly principled.
PERRY: Maria, here is -- there's a great deal of difference between debating on the Senate floor and being the president of the United States.
Ted Cruz knows what he does not know. And I think that is an incredible difference between him and Donald Trump for instance.
Which I think this election is down to between those two individuals.
And knowing what you do not know, and bringing people around you that will be extraordinarily experienced, people who are authorized to go and run these different areas of government.
And knowing how to bring people together, that's a presidential issue, that's not a senatorial issue from day-to-day.
That's about debating, obviously, he's very good at that. But I feel very comfortable having had conversations with him, that absolutely, he lays out an agenda, he finds men and women who share that principled position and then you go make it work.
I mean, this ain't rocket science, it's about having the confidence that you can have a team put together.
And I know for a fact, I feel very comfortable that Ted Cruz will have that team together. Not only can he win the general --
BARTIROMO: Yes --
PERRY: Election, but he can govern, and govern in a way that the American people are ready for.
GIULIANI: Well, I mean, the fact that Rick Perry supports him gives me something to think about.
BARTLETT: Yes, I mean, his endorsement is very important --
GIULIANI: I have tremendous support for -- tremendous respect for Rick Perry. His record has never really gotten the attention it deserves.
One of the best records of any governor in the history of the state of Texas. One of the most principled men.
If he feels that way about Cruz, people should think about it. I have my questions about him, but with the support of somebody like Rick Perry, my goodness, there was a guy who knew how to get things done.
BARTIROMO: Yes, for sure. And governor, let me ask you this, let me switch gears for a moment here, because we're all talking about the economy and oil is driving markets.
When you see oil at a level that it is here, you know, around --
PERRY: Yes --
BARTIROMO: Thirty dollars a barrel, do you worry that we're going to see a lot of those shale producers who have set up shops in Texas, perhaps go bankrupt because of the economics --
PERRY: Yes --
BARTIROMO: Of this -- at this level?
PERRY: Yes, absolutely. I think the exploration and production side of this is very tenuous at this particular point in time.
Particularly, a company that may have just started in the last three or four years.
You know, the real impact here are people that are going to lose their jobs. And now, with that said, Texas economy is really resilient because it's so diversified now.
But in that sector, you know, Houston, Texas is going to be impacted.
And again, I go back to some of the decisions that this president has made, allowing Iran to get into the oil market at this particular time.
I don't think you could put a blueprint together they could hurt American energy producers anymore than what the President did with this Iranian deal.
BARTIROMO: Yes, that is a -- that is a really good point. Because the Iran oil, apparently beginning to flow in the market as we speak.
Governor, good to have you on the program this morning, we appreciate your time.
PERRY: Maria, any time, so long, mayor.
GIULIANI: Take care, Rick.
BARTIROMO: We'll see you soon, sir, Governor Rick Perry there. Mayor Giuliani joining us for the hour this morning, so, he'll be right back.
Coming up, the revolving -- Twitter is continuing, who is in? Who is out? We got all the numbers for you and the names.
We will take a break and then look up at this cleanup continuing down the East Coast after the weekend's massive storm. Keep it right here on the Fox Business Network.
(MUSIC)
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. New developments in the recall of packaged salads issued by Dole, Cheryl Casone with that and the other headlines now. Cheryl.
CHERYL CASONE, FOX BUSINESS: Yes, that's right Maria. A Dole plant in Springfield, Ohio, is temporarily closed after a listeria outbreak.
It caused at least one death and 23 illnesses. Dole announced the recall of its packaged salads Friday after the outbreak spread to at least six states.
Well, it is official this morning. Johnson Controls and Tyco International are merging.
Johnson Controls shareholders will own about 56 percent of the combined company which will be based in Ireland.
Johnson Controls make heating and ventilation equipments, Tyco makes fire protection and security systems, both stocks up right now in the pre- market.
And finally, talk about a rare event. Niagara Falls will go dry in the next two to three years, but it will only happen on the American side of the Falls here in New York State.
The state needs to replace two deteriorating stone bridges there. Maria, the last time the water was blocked off at the falls, back in 1969, they were working on the bridge at the time.
No idea exactly when that will happen, but it's going to be in the next two to three years --
BARTIROMO: Wow --
CASONE: Back to you --
BARTIROMO: That's interesting, Cheryl. Thank you so much. Meanwhile, we're watching shares of Twitter this morning, under pressure after announcing it is cleaning house.
Jo Ling Kent here with the details now, and what's looking to be a major shakeup in the top ranks, Jo?
JO LING KENT, FOX BUSINESS: Yes, and Twitter shares is taking a hit this morning in the pre-market.
Jack Dorsey is overhauling Twitter as the stock continues to drop. The co- founder and CEO confirmed the departure of four top executives including the heads of engineering and products.
The company also plans to add two new board members according to the "New York Times", including one high profile media personality who has gone unnamed.
Analysts over at (INAUDIBLE) have downgraded Twitter shares on the news, saying, "we don't see how the departure of the heads of three major businesses divisions can be viewed as a positive in the middle of an attempted business turnaround."
Now, all the changes have sent shares down 3.7 percent in the pre-market and the stock is down almost 50 percent, Maria, since Jack Dorsey came back to the reigns last Summer.
That IPO price is not even trading near there right now --
BARTIROMO: Wow, yes, that's way down from the IPO price. Big news, Jo --
LING KENT: Yes --
BARTIROMO: Thank you. We will get back to you as the story develops. Coming up, McDonald's beating fourth quarter earnings expectations.
The stock set to open at an all-time high after a phenomenal year in 2015 for McDonald's.
We'll take a look at that and the markets ahead of a big week for economic data and fourth quarter earnings.
Back in a moment with Mayor Giuliani.
(COMMERCIAL BREAK)
BARTIROMO: Well, welcome back. Big show this morning. With us this morning, former New York City Mayor Rudy Giuliani.
And Mr. Mayor, a lot of us had fun this weekend with the Winter storm. You've got news for us this morning.
You're leaving the law firm that you helped found back in 2005 for a new position at Greenberg Traurig.
Richard Rosenbaum is with us, he is Greenberg Traurig's Executive Chairman joining the conversation. Good to see you.
RICHARD ROSENBAUM, EXECUTIVE CHAIRMAN, GREENBERG TRAURIG: Good to see you --
BARTIROMO: And Richard, thanks for joining the conversation. This is a big deal, teaming up with Richard for a new --
GIULIANI: It is, it is a big deal --
BARTIROMO: Leaving the firm that you founded.
GIULIANI: It was hard to do, I love them very much, they did -- they do great work, and we did great work.
But this was an opportunity in a three or four-year period of time to be able to take cyber security to a new level.
I've been working on cyber security for 13 years, I had a business before I ran for president with Ernst & Young that did attack it -- penetration.
We thought we were getting there, and I have this tremendous frustration that the hackers are ahead of us.
BARTIROMO: Yes --
GIULIANI: And this is a national security and a commercial problem.
BARTIROMO: I think they are ahead of us --
GIULIANI: Yes, you know --
BARTIROMO: By the way --
GIULIANI: The truth is, I don't know who said this, someone said it recently.
If you're a company, you've either been hacked and you know about it or you're a company you've been hacked and you don't know about it.
And with Greenberg which has excellent lawyers in this area, and most importantly is represented all over the world with 2,000 lawyers when you take my company that does cyber security their lawyers.
We can present solutions that nobody else can present.
BARTIROMO: And Richard, the mayor's new title; Global Chairman of Cyber Security and Crisis Management.
ROSENBAUM: Yes, we've been building a firm to last 45 years, but you know, I was the 90th lawyer 30 years ago.
And what we found is, by adding elite quality and really value today is what clients want.
And cyber security, you know, you were at Davos, I was at Davos, and it's all anybody is talking about --
BARTIROMO: Yes --
ROSENBAUM: It's what people are afraid of, and the bad guys doesn't cost them much --
BARTIROMO: Well --
ROSENBAUM: And -- but it costs an awful lot to defend. And what we have found this leadership is really the key, and there's no one stronger than the mayor.
BARTIROMO: But can we stop them? I mean, you know, I think that the cyber spending is absolute must spend.
So, with an environment where you see the economy slowing down and they're trying to cut corners and spend less on certain things, they can't skimp on this.
GIULIANI: They don't have a choice. They don't realize what's going to happen to them over the next -- I mean, the CEOs next three, four years.
All the cyber insurance policies, the premiums are going to go through the roof. And the reality is, it's like cancer.
Even if you don't quite have a cure yet, you have ways of containing it, you have ways of getting it down to 98 percent, 99.5 percent, and we will eventually have a cure.
But you might as well do everything that you can do, plus, if you're a public company, your board, as a fiduciary duty owes that to the stockholders --
BARTIROMO: Right --
GIULIANI: To do everything you can. And right now, there are too many companies doing too many different things and they don't overlap with each other.
And I think that's what we can bring to it. We can bring a more comprehensive solution.
BARTIROMO: How does your world change now, Richard, with Rudy on board and this partnership with him focused on cyber?
I mean, corporate -- one of the leading corporate law firms -- when you're talking about what's going on with corporate America today, they are leaving America because they want a better tax rate in places like Ireland.
This morning alone, Johnson Controls and Tyco are merging, and they're going to move their headquarters to Ireland.
ROSENBAUM: Well, you know, when you have coverage in the United States, says one thing, but you really have to be everywhere.
This could be rogue governments, this could be a kid in his room somewhere that you're fighting.
And if you are not present in all the key places, we have 90 former prosecutors in the firm.
What Rudy is going to do for us is bring it together, and we also brought in Mark Mucasey(ph) who will head our -- or co-head our white collar area.
When you put all this together with this kind of leadership, we're going to present in 38 cities across the world.
From Tokyo to Shanghai to Poland and London, a capability that really nobody else is going to bring.
And by the way, your answer is, you'll never cure it, really, because it's constantly evolving.
As fast as you fix it, there's somebody else coming up with the next issue --
BARTIROMO: Right, so what should technology companies do? I mean, that's the debate in America right now.
Do technology companies have to have some of their responsibilities --
GIULIANI: Well, yes, the technology companies --
BARTIROMO: Should government be able to snoop on private conversation?
GIULIANI: Well, that's all together a different -- that's an altogether a different issue for -- if they have probable cause, yes.
If it's national security, yes, if not unconstitutional. Well, the problem with the private companies is, there are so many of them.
They generally walk all over each other, and they're not getting the efficiencies of one company doing the whole thing.
So, if I have five companies doing cyber security, I have to do due diligence on all five companies.
Any one of them can --
BARTIROMO: Yes --
GIULIANI: Have a role they can play. If they do, I'm finished. If I have one company, I can do due diligence on all of them.
And in our case, I will install an internal security mechanism to make sure that our people are being looked at the way people are on the financial --
BARTIROMO: Yes --
GIULIANI: Industry --
BARTIROMO: Really interesting stuff.
ROSENBAUM: So, you are really talking about --
BARTIROMO: Yes --
ROSENBAUM: The internet is everywhere. They talk about the internet of things, you know --
BARTIROMO: Yes --
ROSENBAUM: It's in everything and, you know, it's a constant evolution.
BARTIROMO: Congratulations to you both, thank you very much --
ROSENBAUM: Thank you --
BARTIROMO: Mayor Giuliani is going to be with us for the hour, Richard Rosenbaum, good to see you --
ROSENBAUM: Thanks Maria.
BARTIROMO: Thank you so much, we'll be right back.
(COMMERCIAL BREAK)
MARIA BARTIROMO, MORNINGS WITH Maria SHOW HOST: Welcome back. Big week from the markets. Crude oil falling in again this morning after that rally on Friday, as oil declines, so does gasoline. According to Triple-A, gas prices were down for 19 days in a row. Right now, $1.83 a gallon for regular.
Phil Flynn is at the CME Group. And, Phil, we should point out, big week for central banks as well, we got a two-day FOMC meeting ending on Wednesday. You've got Draghi out this morning in Europe and you've got the Bank of Japan meeting on Friday.
PHIL FLYNN, FOX NEWS CORRESPONDENT: Those are huge, Maria. I mean, you can tell how important it is for the oil market, the way it reacted last week. After Mario Draghi sent signals to the market that they were willing and able to do more to stimulate the economy. That set oil off to its biggest two-day rally since 2008.
But today, it's all about concerns about demand creeping in once again. You know, let's face it. All across the i-95 corridor, they found it, no demand whatsoever, nobody is driving, and nobody is flying. That's going to take a big hit to demand for gasoline and jet fuels, so we're going to see a demand disruption that's weakening the market today.
But if you look beyond that, more stimulus means more oil demand and it could mean that we're closer to abutment in oil. Back to you.
BARTIROMO: All right. We'll see you about that. Phil, thank you. Phil Flynn.
Meanwhile, the Appeals Court giving the green light to the Obama administration's clean power plan. And this is a plan my next guest opposes, adding that anti-cold policies are causing the destruction of reliable low cost electricity. That from Murray Energy founder and CEO, and president, Bob Murray.
Sir, good to see you. Thanks so much for joining us.
BOB MURRAY, MURRAY ENERGY CEO & PRESIDENT: Good morning, Maria.
BARTIROMO: We see what's going on in the world and in America under President Obama. Do you need to structurally, fundamentally change your business, given the fact that he is keeping his heel on the coal producers, as well as the number of producers, producing oil, creating a glut?
MURRAY: No, sir -- no, ma'am. I believe that what we need to do is overturn the illegal actions of the Obama administration. His clean power plan, Maria, that you referred to is grossly illegal. The D.C. Court of Appeals will hear the case June 2nd, I've been joined in that lawsuit, Maria, energy corporation has by 27 states.
BARTIROMO: Yes.
MURRAY: Do you know, Maria, in the last year, the Obama administration has issued 82,000 regulations, most of which are illegal. And I think our course of action is to push back and get another president that can overturn these executive orders.
