MARIA-00
Second; Bernie Sanders Annihilate Hillary Clinton in New Hampshire with 60
Percent of the Vote-Count; Investors Wait on Comments from Fed Chair Janet
Yellen; European Markets Jump, Deutsche Bank Rebounds, U.S. Futures Point
to Rally; Oil Bounce Back after Worst Single Day Selloff in a Month;
Tennessee Health Officials Report First Case of Zika Virus Infection;
Martin Shkreli Faces Lawsuit; Wu Tang's Ghostface Attacks Turing Pharma CEO
Martin Shkreli's Heartlessness; Twitter Continues to Struggle for Growth - Part 2>
Cheryl Casone, Adam Shapiro >
Brafman>
Trials; Pharmaceuticals; Donald Trump; New Hampshire; Bernie Sanders;
Hillary Clinton; Janet Yellen; Stock Market; Oil; Zika Virus; Martin
Shkreli; Wu Tang; Twitter >
BARTIROMO: Yeah. I mean, the market is still showing gains. You would think that this boosts the market because it just basically says, what's the alternative to stocks?
MURPHY: Right.
BARTIROMO: There is no rate anywhere. There is no yield, Dagen.
DAGEN MCDOWELL, FOX BUSINESS NETWORK: Unless this shakes confidence in what they did, people were upset that the -- many people were upset that the Federal Reserve hiked rates in the first place. You saw a complete falling off the cliff of the 10-year yield.
BARTIROMO: Yeah.
MCDOWELL: So does this shake confidence? Is the Fed powerless to do anything?
BARTIROMO: Let me bring in the former chairman of the committee, expected to question Janet Yellen tomorrow, that is former senator, Al D'Amato, former head of the senate banking committee. It's good to see you senator.
ALFONSE D'AMATO, FORMER U.S. SENATOR: Nice to see you, Maria.
BARTIROMO: So lay out what we should expect in the questioning tomorrow and today. I mean, tomorrow she speaks to the senate.
D'AMATO: There's going to be some real questions as it relates to what will the rates be going forward. I think she did the right thing by saying, look, if this weakness continues throughout the world market, et cetera, we'll be prepared to lower rates. That is really what she is saying. And I think you can expect that. And of course, so much of this is tied not only to China but the energy sector. Maria, take a look at the big banks and the Wall Street group that really has some very real problems developing. You're going to be seeing bankruptcies in the energy area. You're going to be seeing the financial institutions taking major hits, major write offs. We're talking about tens of billions of dollars.
BARTIROMO: Right. She got to acknowledge that as well. Look, she is acknowledging the stock market declines. And she is acknowledging the strong dollar. Those are two major issues for markets. But you're right. When you see more bankruptcy, and we were predicting this and expecting this as oil prices came down, because there were real knock-on effects for oil prices coming down.
D'AMATO: That's right. And the worst is yet to be.
BARTIROMO: Really?
D'AMATO: Oh sure. And the restructuring that it's going to have to take place as it relates to avoiding some of these bankruptcies, but there going to be huge write offs and the financial institutions are already beginning to see it. You know, Citigroup, and some of the other major banks are taking big hits. You have Goldman, you know, Morgan Stanley, they got big exposures out there and.
BARTIROMO: Yes, they made the loans. They made the loans to a lot of these shale players that now are needing to fire and cut cap-ex.
MURPHY: And we're seeing earnings coming out of the big energy names and, you know, looking at last quarter, oil averaged $44 a barrel. So now, for the current quarter I think it is safe to say oil going to average a lot lower than $44 a barrel. So, you've seen some dividend cuts already. You've seen production cuts across the board. But what comes next, I think next quarter could be the worse.
D'AMATO: The worst is yet to be. You're absolutely right. You're talking about 44 down to $30 range, and it's predicted to even go lower. You have Iran coming back on. You have more oil coming out there. The glut is tremendous. So, I think you're going to see that come down, and again, tens of billions of dollars in write offs. And look at the major institutions, the worst is yet to be.
MCDOWELL: It looks like her comments don't really help markets, because they are so down beat on the state of the economy. When you have the Fed chief who just hiked interest rates a couple months ago, now saying acknowledging all these risks in the market, something else that she going to have to address head on. Inflation expectations have come down. They're at 2009 level. How can you have -- that is what the rest of the world is worried about, deflation. She has to address that. The more she talks about it, the harder is going to be for markets, I think.
D'AMATO: Again, it's serious. What is the futures right now, what do the futures markets say right now?
MURPHY: Dow up 100.
D'AMTO: Up 100. I predicted that is going to come right down.
BARTIROMO: You think it's going to come down?
D-AMATO: Absolutely.
BARTIROMO: Because these basically indicate as much weaker economy than people know.
D'AMATO: That's right.
BARTIROMO: If the Federal Reserve can't even stand by the lousy quarter- point move that they made at end of last year, and they actually have to reverse course, egg on your face, huge mistake, you missed it, and now the stock market probably needs to come down.
D'AMATO: It will. It will come down appreciably. What happens is the momentum of people getting out saying, listen, I going to take my losses and get out now, it is easy to say, will just stick in there and wait. People are not buying it. They are getting out massively.
BARTIROMO: Real quick on the New Hampshire results last night.
D'AMATO: Big win for Trump. Hillary's got problems. Bernie's win's 20 plus points, 22 points.
BARTIROMO: Pretty unbelievable.
D'AMATO: And you know, when the Moe starts it is very hard to stop it. I think the governor of New Jersey, huge loser. He who throws the bomb, I think will get blown up with it. So he attacked Rubio, did not help him. He's out. Donald's on a roll. And watch out, that so-called firewall in South Carolina, it may not -- it may have some cracks in it. I'm not saying she may not carry it, but she is not going to carry it by the 30 plus points that she was ahead.
BARTIROMO: On top of New Hampshire, on top of Iowa. Let's not forget that, that razor thin win that she had there.
D'AMATO: And she did not look particularly good last night. It was almost like we just reading my lines, going through it. And let me tell you, the old guy, he is tapped into the anger that people have.
BARTIROMO: By Trump. Senator, good to see you, thank you so much, Senator Al D'Amato, there. Adam Shapiro, thank you for that breaking news, important breaking news that is in fact moving markets here. We're off at the highs in terms of the futures. Don't forget, Mornings With Maria, begins every day at 6:00 AM Eastern, right here on the Fox Business Network. Before we take a break, take a look at some of the best moments that you may have missed earlier on the program.
(BEGIN VIDEO CLIP)
UNINDENTIFIED MALE: He is the anti-establishment candidate. I think the most amazing part of this is the promises that Trump have made, and Bernie Sanders have made is like Christmas.
BARTIROMO: yeah, right. It will never happen.
MURPHY: If you're looking for money to work today and you see a company that put up the earnings like Disney put up, and it's a quality franchise, theme parks are up 9 percent. So pretty much all other parts of their business are working, and you have a 30 percent pull back in the stock, that is the name you want to buy.
UNINDENTIFIED MALE: Who knows what we should have expected, but the fact is, yeah, let's give Bernie Sanders his due. In my personal opinion, both parties voted for candidates who are unelectable.
BARTIROMO: OK, he lost. He is sore. He's allowed.
MURPHY: Every game has a winner and loser. But not every loser -- everyone out there competing in the NFL wants to win the game. But when you lose the game that doesn't give the right, in my opinion, to just get up and walk away. If you want the spotlight on you when things are going good and you want to be superman, and act like things are good, then you need to be able to take the heat.
UNIDENTIFIED MALE: He's got to make a decision the next two weeks, what he doesn't know how Sanders -- Sanders, will do probably not as well in the south. So then, Bloomberg should make the decision. Is he going to jump in even though he doesn't know who the Democratic nominee is, and who may eventually emerge from the Republicans?
(END VIDEO CLIP)
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
MARTIN SHKRELI, TURING PHARMACEUTICAL FORMER CEO: Mr. Killah and I have exchanged some words. In all seriousness, this album is a one-of-a-kind album that was purchased for two million dollars. It was the most expensive piece of music ever purchased in the history of recordings.
GHOSTFACE KILLAH, WU TANG CLAN MEMBER: I don't judge no man, but for me, being how I came up in the streets and just to see him say that, I fell out laughing in front of the computer, you know what i mean? He cannot erase me. I am history.
(END VIDEO CLIP) BARTIROMO: That was Martin Shkreli, and Wu-Tang Clan member, Ghostface Killah, going back and forth over Mr. Shkreli move to raise the price of the aids drug nearly 5,000 percent. And they were on our program last week and a half in those exclusives. Legal troubles surround his time as a director of pharmaceutical firm, Retrophin. Shkreli, allegedly used money from Retrophin coffers to pay off angry investors on his now defunct hedge fund. Shkreli, breaking the news to me on the program last week, that he retained renowned criminal defense attorney, Benjamin Brafman, to represent him in the case. Benjamin Brafman joins us right now to talk more about it. And it's good to see you, sir. Thanks so much for joining us.
BENJAMIN BRAFMAN, CRIMINAL DEFENSE ATTORNEY: My pleasure. Thank you.
BARTIROMO: So, the case putting the 5,000 percent increase of the drug, aside there is a criminal case and a civil case, and obviously, what this criminal case is alleging is a Ponzi scheme.
BRAFMAN: I think the criminal case is going to be defended, and I think it's viably defensible, and I think we have agreed to defend it in court and not speak publicly about the criminal case. There is a lot about Martin Shkreli that's been said in public, but I think can be discussed but we'll stay away from the criminal case itself.
BARTIROMO: All right. I understand that. But the bottom line is, he did have power over this company. Did he use the money to pay back investors who were out?
BRAFMAN: I think when the facts come out at the trial, assuming there is a trial, I think there is substantially different view of what happened than what was alleged.
BARTIROMO: You know when he spoke to congress and he was there on the hot seat, everybody talked about the way he handled it. You know, the smirks and the, you know, kept going to the fifth. And they felt that he just wasn't respectful to them.
BRAFMAN: I think he was respectful. I think he is 32 years old. He has never been in that position. It's a hostile environment. I think the committee was not acting in good faith in my judgment. They knew he was going to invoke. And I think they brought him there not to get information about Turing's increase of the price of Daraprim, but I think they brought him there to publicly humiliate him. When you're 32, and you have 75 cameras staring you in the face, sometimes a smile or smirk is a product of nervous energy, and I think he was angry.
BARTIROMO: Yeah, and I think that's right. I mean, they knew he was going to plead the fifth.
BRAFMAN: Correct. BARTIROMO: They wanted him to go anyway. So, how much of this, this theater was about the fact that they were angry, that he took the price of that aids drug up 5,000 percent?
BRAFMAN: My personal opinion is that the members of the committee could care less. I think this was for them a show trial, having Martin Shkreli takes the Fifth Amendment. And Nancy Retzlaff, who is Turing pharmaceutical executive was sitting there. She's not under indictment. She was not going to invoke. She could answer every question and did answer every question. They brought Shkreli there just to humiliate him. That is why both he and I were angry.
BARTIROMO: So, he has not faced that kind of situation before, but you have. You know this, you know, playground, if you will. What did you see differently then, than in your past situations in that room?
BRAFMAN: Well, most playgrounds where I work, there are rules that allow you to participate in the house chamber, lawyer, you can be there to advise your client, but you don't have any standing to speak publicly. If I were permitted to address the committee, I think I would have laid bare the hypocrisy and disingenuous nature of the questions. But they won't let me speak.
BARTIROMO: Maybe, but you know, at end of the day, I'm all about free markets all the time. And I, you know, don't want to see caps on drug prices. I think it's wrong, because you have to allow the free markets to do it. But also, when you're the person overseeing a situation where you have the drug that people need, isn't there a moral responsibility not to make it inaccessible for people, 5000 percent drug increase?
BRAFMAN: I think, but that's one of the misconceptions to my knowledge, and I don't represent Turing.
BARTIROMO: Right.
BRAFMAN: I've only been in this case for 10 days. But to my knowledge, no one who has tried to get the drug has been denied access to it because they couldn't afford it. Everyone has had the drug who has needed it. And there only a patient population of 3,000 people who use this drug, and this drug works perfectly after 40 days, the patient is cured. So, there's been a lot written about Daraprim which is really never focused on the fact that there is a small patient population, and big pharmaceutical companies ignore these orphan drugs because there is a small patient population.
BARTIROMO: Look, I understand what you're saying, but at the same time if it was larger population, I'm saying to myself, what would he do then? If there were more people who need it he would have taken the drugs up 10,000 percent.
BRAFMAN: Well, I'll tell you what I see. And it's, you know, benefit of hindsight is always wonderful. But in my life, knowing a lot about public relations, I would have advise him, if I were in his life at the time to do a gradual price increase, not dramatics price increase.
BARTIROMO: OK.
BRAFMAN: If it was a gradual price increase, you and I are probably not having this discussion.
BARTIROMO: Yeah. Let me go back to working with Martin Shkreli, from your standpoint. You told him to be quite. You said, you know, let me handle all of this. And yet, he's still tweeting, he's out there speaking. Give us a sense of who he is. I feel like our audience knows and they support him. He's been on my show. And I think he's gotten some very good feedback after it, but how -- has the experience been for you and what about all this tweeting?
BRAFMAN: Well, he has agreed not to speak about the criminal case and he has not tweeted a word about the criminal case. I don't think I have either the power or the right to stop him from tweeting, period.
BARTIROMO: My favorite quote and tweet, was the only thing I regret about my congressional appearance is not bringing my Nintendo. I mean, that sounds like, wow.
BARFAMAN: Well, Martin Shkreli has wonderful sense humor, but he's also very brilliant young man. And I think, to be candid with you, I think he's going to end up, in my opinion, as someone we speak glowingly about once the criminal matter is behind him, and he's allowed to continue his work on developing orphan drugs.
BARTIROMO: Why do you feel like that? Tell me about Martin Shkreli, what you learned about him. And he also, by the way, called congress imbeciles, which is another one I.
BRAFMAN: Congress has a rating, approval rating of 11 percent throughout the United States. And to be honest with you, the tweet in response to Martin tweets were go, man, go. So, it wasn't as if he was speaking to alienated public.
BARTIROMO: You're right.
BRAFMAN: But, I will tell you what I find about him. I find him to be intensely brilliant. I think he is extremely focused on clearing his name. He believes he's done nothing wrong. And I think he grows on you. I think, Martin has very likeable qualities when you get to know him on personal level. And I want to reiterate the fact that he's 32 years old, you know. I'm 67, 32 is a different age when you're suddenly thrust into the spotlight.
BARTIROMO: Yeah, and you've been around the block in terms of various cases, and it says something that you actually took this case on.
BRAFMAN: I represented personalities a lot more difficult than Martin Shkreli.
BARTIROMO: Who was your most difficult?
BRAFMAN: Complicated is the word I would use. When I came into the life of P. Diddy, he was complicated man. And he turned into one of the most successful African-American entrepreneurs in history of the world. I represented Dominic Strauss-Kahn who was going to be president of France.
BARTIROMO: Right.
BRAFMAN: So, Martin Shkreli is a challenge, but not a overwhelming challenge.
BARTIROMO: Ben, really good to have you in the program.
BRAFMAN: Thank you very much.
BARTIROMO: Thank you so much, Ben Brafman. And we'll be right back.
(COMMERCIAL BREAK)
NICOLE PETALLIDES, FOX BUSINESS NETWORK: I'm Nicole Petallides, live on floor of the New York Stock Exchange. Fed head, Janet Yellen, puts out her comments ahead of her statement today and tomorrow, sounding risk and that takes futures off the highs. You do see right now the Dow up 103. We're also watching oil, fifth day in a row to the downside. Disney, a key name to watch here, a blockbuster quarter in so many ways, in fact, a record income topping Wall Street, you know, they have the theme parks, they have done so well with, Star Wars. But the decline in quarterly profit of ESPN is where the worries are. This stock is looking down over 3 percent, and certainly will be a top mover on Wall Street to the downside.
(COMMERCIAL BREAK)
BARTIROMO: It wasn't just voters heading to the polls in New Hampshire, one polling station getting a surprise visit, Cheryl Casone, with that story now, Cheryl.
CHERYL CASONE, FOX BUSINESS NETWORK: Oh, this hit the internet big time. Pigs aren't usually part of the political process in New Hampshire, but you're looking at one pig that apparently didn't get that message. This 600-pound porker wandered in the parking lot of a polling station in Pelham, yesterday morning. He was picked up by the owner of a nearby farm, just made his escape. Thought he go vote, go back home, there you go. One more story before we go, the Oscars will come up with a new way this year to try to keep those acceptance speeches shorter. Nominees are going to be able to write down a list of the people they want to thank, and the list of names we'll run along the bottom of the screen. Hopefully that happens. The goal to change is to make those speeches more compelling, by the way, Oscars, February 28th. Here we come, back to you.
MCDOWELL: More time for them to lecture us about climate change and police brutality. So, we're really thankful for that, rather than stick to, hey, you're good looking and get to win awards.
BARTIROMO: Thanks, Cheryl. I'm looking forward to the Oscars, but I agree with you. I do not want to hear all of this. We have no time left, but are we agreed that the Fed statement, from the Fed is basically taking rate increases off the table?
MURPHY: Agreed, and Yellen's testimony at 10:30, very important.
BARTIROMO: Alright, 10:30 the testimony starts. Let's go to Charles Payne right now, he's all over it. Varney and Co. begins now, Charles, take it away.
END
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(Show: MORNINGS WITH MARIA) (Date: February 10, 2016) (Time: 07:00:00) (Tran: 021002cb.231) (Type: SHOW) (Head: Trump and Sanders Win Big in New Hampshire; Flint Water Crisis; Disney's ESPN Concerns; Cam Newton's Bad Attitude; Fed Reserve Chair Janet Yellen on Capital Hill Today; Social Media Major Information Source for Voters ) (Sect: News; Domestic )
(Byline: Maria Bartiromo, Blake Burman, Dagen McDowell, Cheryl Casone, Jared Max, Phil Flynn, Jo Ling Kent)
(Guest: Steve Forbes, Todd Buchholz, Terry Holt, Richard Goodstein, Mike Murphy )
(Spec: Congress; Economy; Elections; Politics; New Hampshire; Bernie Sanders; Donald Trump; Federal Reserve; Environment; Sports)
(COMMERCIAL BREAK)
MARIA BARTIROMO, FBN HOST: Good Wednesday morning, everybody. Welcome back. I am Maria Bartiromo. It is Wednesday, February 10th.
With me this morning Fox Business Network's Dagen McDowell and Rosecliff Capital CEO Mike Murphy.
First though your top stories at 7:00 a.m. on the East Coast. The results are in from New Hampshire. Donald Trump and Bernie Sanders crushed it, the winning big in the Granite State.
(BEGIN VIDEO CLIP)
DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: We are going to start winning again and we are going to win so much you are going to be so happy. We are going to make America so great again, maybe greater than ever before. I love you all. Thank you, New Hampshire. Thank you.
SEN. BERNIE SANDERS (I-VT), DEMOCRATIC PRESIDENTIAL CANDIDATE: Tonight, what appears to be a record-breaking voter turnout -- because of a huge voter turnout, and I say huge -- we won.
(END VIDEO CLIP)
BARTIROMO: It was huge. Trump finished with 35 percent of the vote. Ohio Governor John Kasich came in second on the Republican side showing his time in New Hampshire was certainly well spent. It is a fight for third place meanwhile, the margin too close to call between Ted Cruz, Jeb Bush and Marco Rubio.
Rubio, by the way, acknowledged his performance at Saturday's debate. He heard his results.
(BEGIN VIDEO CLIP)
SEN. MARCO RUBIO (R-FL), PRESIDENTIAL CANDIDATE: Our disappointment tonight is not on you. It is on me. It's on me. I did not do well on Saturday night. So listen to this. That will never happen again.
(END VIDEO CLIP)
BARTIROMO: Meanwhile on the Democratic side, Bernie Sanders getting 60 percent of the vote to Hillary Clinton's 38 percent -- a lot worse than the Clinton camp expected; Sanders greeting a boost from women and a boost from young voters.
On to markets this morning. Investors waiting on comments from Federal Reserve chair Janet Yellen later this morning. She heads to Capitol Hill testifying before the House Financial Services Committee this morning. She will get grilled on the health of the U.S. economy, on markets and monetary policy. Mike Murphy early said that he thinks we will get some news out of that conference.
Ahead of that we're checking global market action. Another rough session overnight in Japan: the Nikkei average down 2 percent, now at the lowest level since 2014 with the Nikkei down 2.3 percent.
In Europe this morning pretty good gains actually across the board snapping seven days of declines. The banks -- the European banks leading the action this morning, Deutsche Bank is up after plummeting recently. DAX index in Germany up 200 points, that's 2.25 percent higher.
In the U.S. we are expecting a rally for stock prices. Take a look at the futures market indicating a gain of about 126 points on the Dow Jones Industrial average.
Disney is a Dow component although it's not expected to be up. It's certainly a company to watch after reporting the highest quarterly earnings ever last night. But the success of "Star Wars" was not enough to offset concerns over ESPN, cord cutting and all the recent concerns in the media business. Stock is down about 3 percent in the premarket on Disney.
Big victories in New Hampshire fro Donald Trump and Bernie Sanders. Now it is on to South Carolina. Blake Burman is on the ground in Manchester with more from last night. And Blake Also look ahead for us to South Carolina and what these campaigns are doing to get a handle before the big day.
BLAKE BURMAN, FBN CORRESPONDENT: Yes. Well, certainly the sprint is on now to South Carolina -- Maria. A lot of the candidates are already there taking flights overnight after the voting ended here in New Hampshire.
But what a night it was for a couple of these candidates here specifically on the Republican side. Donald Trump, he got 35 percent of the vote here in the Republican primary, essentially lapping the field here.
It was John Kasich who finished in second. He needed that. He spent time, money and resources here. But the battle is still on for third this morning as not all of the precincts have officially reported. It appears Jeb Bush will be the one to finish in third.
Trump is one of those heading to South Carolina and in his speech last night he basically said the fight is on there.
(BEGIN VIDEO CLIP)
TRUMP: I wanted to congratulate the other candidates, ok? Now that I got that over with -- you know, it's always tough and then tomorrow, boom, boom. But that is the way it is.
(END VIDEO CLIP)
BURMAN: On the Democratic side Bernie Sanders got support from 60 percent of the Democrats in the primary, beating Hillary Clinton by 20 plus again on that side, not all precincts reporting but it is monster win for Sanders. Just like Trump last night he said the battle is just beginning.
(BEGIN VIDEO CLIP)
SANDERS: They are throwing everything at me except the kitchen sink and I have the feeling that kitchen sink is coming pretty soon as well.
(END VIDEO CLIP)
BURMAN: In her concession speech, Hillary Clinton admitted that she needs to do much better with younger voters. That is just one of the bloc's that Bernie Sanders won last night. He also scored very well with Independents and those who seek an honest and trustworthy candidate.
Maria, you talk about South Carolina. One thing we will be watching today is over what might happen in New Jersey. Governor Chris Christie says he will make a decision there today on whether or not to continue his campaign down in the Palmetto State. Back to you.
BARTIROMO: So Blake -- we could see then Chris Christie dropping out before South Carolina then.
BURMAN: Potentially. And one of the issues here Maria is there is the debate over the weekend on Saturday in South Carolina. And as it stands now according to the criteria there, Chris Christie might not make it. So that might be part of what factors into his decision.
BARTIROMO: Yes. The question is where do those votes go if that's the case. Blake, we'll be watching.
BURMAN: Yes.
BARTIROMO: Thanks so much. Blake Burman in Manchester.
I want to bring in former Bush/Cheney presidential campaign adviser Terry Holt with us alongside Democratic strategist and partner with Goodstein and Associates, Richard Goodstein. Good to see you both -- gentlemen.