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(BEGIN VIDEO CLIP)
DONALD TRUMP, (R) PRESIDENTIAL CANDIDATE: I'm proud to be a Christian and as president I will not allow Christianity to be consistently attacked in weekend unlike what is happening now with our current president.
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MARIA BARTIROMO, FOX BUSINESS NEWS ANCHOR: We'll take a look at whether this will affect tomorrow's vote in South Carolina, this latest brouhaha with the pope.
On to the latest, in terms of the debate over encryption other technology companies rallying behind Tim Cook and Apple. Now, congress is looking to step in, details straight on that developing story.
Onto the market Futures right now near the flat line as you can see a little weakness this morning, but very much an unchanged story, the major averages on track for the best weekly performance this week since November.
Later this morning we will get the read on inflation via the CPI report added about 2.5 hours. European markets moving between gains and losses very much uncertain down at the situation there FTSE 100, CAC 40 and DAX Index all down right now about a half third to a half of a percent on the major average is.
Over on Asia relatively quiet session. Take a look at the numbers, the Shanghai Composite, Hang Seng posting modest losses overnight. Nikkei average in Japan the worst performer down 1.4 percent the KOSPI eking out a slight gain on the session third of a percent higher.
New fox poll shows Donald Trump remaining in the lead for the Republican presidential nomination ahead of tomorrow's South Carolina Primary.
Blake Burman in Washing D.C. with all the details now. Blake good morning to you.
BLAKE BURMAN, FOX BUSINESS: Hello Maria, Good morning to you as well. The Republicans continue to look up to Donald Trump in the latest FOX News poll. The survey of Republican voters nationwide shows 36 percent favored the billionaire businessman. That is more than Ted Cruz and Marco Rubio combined who round out second and third, Jeb bush, Dr. Ben Carson, john Kasich all approaching but still fallen short of reaching double digits.
The focus now remains on tomorrow's South Carolina primary polls show Trump is the favorite to win two in a row. When he wasn't battling the pope yesterday, Trump instead focused some of his attention on Cruz while Cruz continues to punch upwards.
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DONALD TRUMP, (R) PRESIDENTIAL CANDIDATE: He lies, he lies badly. He lies that guy lies. That does not tell the truth, you know, he holds up his bible and then he lies. Let me tall you that guy lies he is a liar.
SEN. TED CRUZ (R) PRESIDENTIAL CANDIDATE: Who has the knowledge, who has the judgment, who has the temperament. Temperament was on display Saturday night.
(END VIDEO CLIP)
BURMAN: Meantime, there is a first on the democratic side. The fox news poll shows Bernie Sanders on top of Hillary Clinton and he does so by three points. Now that is within the margin of error Maria, but this also mirrors other national polls this month showing support heading Sanders way of course, Democrats caucus in Nevada tomorrow. Back to you.
BARTIROMO: Now I play thanks very much Blake Burman with the latest there.
I want to bring in "Daily Beast" Political Reporter, Betsy Woodruff right now along with Washington Examiner Reporter, Sarah Westwood Ladies good to see you both. Thanks for joining us.
Betsy let me kick it off with you. What was your reaction to the town hall last night? Let's start with Hillary Clinton and Bernie Sanders.
BETSY WOODRUFF, THE DAILY BEAST POLITICAL REPORTER: What really stood out to me about last night town hall was Bernie Sanders answer when Chuck Todd pressed in on the question of healthcare rationing.
Now, that's one of the central issues that opponents of single pair healthcare bring up they say it could be harder to access health care that it won't be as available, they'll be waiting lines. And Bernie Sanders was totally ready for that question. And honestly seemed a tiny bit hostile to Chuck Todd saying that just having any sort of price on healthcare, the fact that healthcare is expensive is it felt rationing is obviously something he was thinking about when its very close to his heart. And he was really excited to answer that.
And that's part of why Bernie Sanders is doing so well it's because on these issues that his left leaning far less to base really, really cares about, he is right there with them. He's very passionate and he clearly thought about his articulate. And he's based loves what he had to say.
BARTIROMO: Yeah, what struck me really is the weakness that Hillary Clinton is facing right now and the fact that she got booed last night. And yeah you make a good point about Bernie Sanders. Does it surprise you that his actually dominating Hillary Clinton in beating her?
WOODRUFF: I see this a little bit surprising on the other hand. In this cycle I don't think I'm capable of being surprised anymore. When I was in Iowa I was one of the caucusing locations and just talking to college students who I'm said it was overwhelming how much they preferred him to her.
BARTIROMO: Yeah it's unbelievable. Sarah what about the town hall? You had Trump as well as Kasich and Bush, last night during that town hall, any thoughts there? Take away.
SARAH WESTWOOD THE WASHINGTON EXAMINER REPORTER: Well this is a format that showcases Donald Trump probably better than any other candidate because in the debate you have candidates that press back on some of his policies and exposes some of his weaknesses in a town hall that's not so he's just able to talk directly to voters. That was on display last night.
BARTIROMO: Yeah, that is true Dagen because you're in a town hall in an audience member asked the question and there's no pushback you could say whatever you want. Right and you're not going to get a follow-up.
DAGEN MCDOWELL, FOX BUSINESS: He still struggles to engage and like we're not seen him recently even earlier in the week that he doesn't really -- he struggles to connect at one on one he's better in front of a big group of people where he's just talking, talking to the crowd where following at his feet.
And I thought last night he did -- he was -- you still kind of a softer side of Donald Trump. I don't want to jump ugly on the follow-up questions, but he seemed to back off the rhetoric you heard earlier about the pope. So he -- that he was reading that statement earlier, which we're showing a clip of. But and when you was talking about the pope, he said I think that the pope was, you know, he being misinterpreted. He really would use that to his advantage
BARTIROMO: You fight with the pope I think this is a big deal, this is going to anger a lot of people.
MCDOWELL: Yeah, I've been looking a lot of numbers about the Catholics and in the GOP in the Republican Party. It let matters less down in the south in the primary contest down there. But as a share -- the catholic share of the GOP electorate in the northeast really does matter. It might not matter in the primary contest, but New Jersey, Massachusetts, New York, Connecticut, Wisconsin those are your -- they're heavily Catholic states in terms of the GOP.
BARTIROMO: Ladies what ab out that I wan to get your take on these tensions between the pope and Donald Trump. Listen to the pope laughing the Republican front runner for his fans on immigration get your reaction afterwards.
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UNIDENTIFIED MALE: A person who thinks only about building walls wherever they may be and not building bridges is not Christian. This is not in the gospel.
As fat as what you said about whether I would advise to vote or not vote, I'm not going to get involved in that. I'd say only that this man is not Christian if he says things like that.
(END VIDEO CLIP)
BARTIROMO: That's it Sarah. Reaction?
BETSY WESTWOOD, THE DAILY BEAST POLITICAL REPORTER: I think what's interesting about this comment is that it's a very Pope Francis type of thing to say. It's a little vague on policy particular. And to keep followed up that clip by saying he hasn't actually read Trumps plan. He's not sure, he didn't even name Trump. That said he made clear that he sees immigration as a moral issue, perhaps, more than a policy issue.
Now, it's important to bear in mind is that this could potentially benefit Trump. South Carolina has the smallest percentage of Catholics besides Mississippi and Tennessee it's dominated by Evangelical Christian. Bob Jones University used to say that (inaudible).
They're very influential in the F state here, so it can actually help trump, but he is squaring off against the pope.
BARTIROMO: Yeah Michael Block.
MICHAEL BLOCK: Interesting take. Yeah we see Sanders gaining in on Hillary. Yeah there was Hillary getting booed at some point for going after Bernie here. You know, even left many economists are coming out and saying that was Sanders' promising is unrealistic.
How does Hillary get that across to voters? Does she have a chance of getting through it to these primary voters here?
BARTIROMO: Yeah, what about that?
WOODRUFF: It's interesting all this intrigue on the Republican side is drawing attention away from the fact that Democrats are whistling past the graveyard herewith Bernie Sanders.
I mean he is overtaking her in polls. The southern firewall that has been promised to protect Hillary Clinton from defeat, it might not be that strong, because you look at Nevada you see that it has a high Hispanic population and it is not as wide as Iowa and New Hampshire and now the Hillary Clinton campaign is trying to downplay expectations by playing up the demographics of Nevada as being more homogenous and they really are and that is dangerous for Hillary Clinton if she's lowering expectations in the state that was once promised to be her firewall and that's really spelling trouble for the Democrats.
WESTWOOD: Yeah but she's has got the super-delegates because she's got all those super-delegates.
BARTIROMO: Those super-delegates are going to be embarrassed and they will wind up changing their vote.
MCDOWELL: It happened at 08 like Bernie really takes off. And by the way, I think if the pope was going to back a candidate, it would most definitely be Bernie Sanders because a lot of his precisions are very, very social.
BARTIROMO: John it's a cover on every paper.
MCDOWELL: Feel the burn.
BARTIROMO: Yeah Trump and the pope bible voters (ph).
MCDOWELL: Yeah, burn baby burn.
BARTIROMO: Yeah, burn baby burn.
Betsy Woodruff, Sarah Westwood thank you ladies.
WESTWOOD: Sure thing thank you.
BARTIROMO: We'll see you soon. Keep it here for all new 2016 election coverage. Fox business will be live all day tomorrow for the South Carolina primary and Nevada Caucus. Coverage begins at 6:00 p.m. Eastern. Be here or be square.
Turn into other head lines this morning more will pay respects to the late Supreme Court Justice Antonin Scalia this morning. Cheryl Casone with so with the another headlines right now Cheryl.
CHERYL CASONE FOX BUSINESS: Good morning, Maria. Justice Scalia's body now lays in repose at the great hall of U.S. Supreme Court while the debate surrounding his potential successor continues in Washington. The president and first lady will pay their respects today. President Obama does not plan to attend tomorrow's funeral service.
While Apple reportedly given an additional three days to decide if the company will help the FBI with the San Bernardino terror attack case. A federal judge has ordered tech giant to unlock an iPhone linked to the shooters.
Former Attorney General John Ashcroft joined the program yesterday with his take on a privacy debate.
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JOHN ASHCROFT FORM. ATTORNEY GENERAL: The idea somehow that the government can never get information to defend the national security because someone might sometime abuse information is absurd, everything is susceptible to abuse.
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CASONE: Well earlier this week Apple CEO Tim Cook said the request is "Chilling and threatens the security of his customers."
And finally this disturbing case out of D.C., Washington police they're releasing this video showing several people attacking a decorated marine corp. veteran outside a local McDonalds.
The victim has been identified as Sergeant Christopher Marquez a soldier who earned a bronze star during his time in Iraq.
According to the police report, the suspects took Marquez's wallet which had three credit cards and about $400 in cash inside of course, he was badly beaten.
Maria, right now, he was on Fox and perhaps we should say here, and he told them he thinks it was a hate crime. He says that he was attacked because he thinks he was white and they attacked him because of that. Police are investigating. Back to you.
BARTIROMO: all right Cheryl. Thanks very much. We'll keep watching.
Coming up next after a month that show of zero IPOs February and not feeling much better take a look on what's feeling this anxiety why the IPO story is important for the rest of the year.
And later Donald Trump responding to the pope's criticism of his faith, don't want to miss that, coming right back stay with us.
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BARTIROMO: Welcome back. Looking at the oil right now, the stockpiles of crude oil and gasoline rose to record levels last week putting pressure on oil prices this morning. Phil Flynn at the CME group, the oil is moving lower this morning Phil but still hanging out around $30 a barrel.
PHIL FLYNN: It is. What it is Maria, you know, we knew that the supplies are near the record high in the United States have 504 million barrels. We haven't had that much in storage but at least in 88 years. But there is still a lot of talk about potential OPEC emergency meeting in March.
There is some high-stakes negotiations going on between OPEC members and non-OPEC member trying to come to some type of an agreement to either freeze production or actually cut production.
Now, that was a story that really got the market going earlier in the week that the supplies really took away that momentum. We're going to be watching that story to see it as it develops. Back to you.
BARTIROMO: All right Phil. Thank you so much, Phil Flynn.
I want to turn to one of the top stories in the journal today. This is the top story in the journal this morning, actually, the IPO market is drying up. Nearly 70 percent of the 175 companies that one public made their stock market debut in 2015 are now trading below their initial public offering prices.
Barrons online editor Jack Otter joining the conversation. Now Jack, really interesting story on IPOs today, I understand why IPOs are doing so badly because the markets are doing so badly. But does this is worry you in terms of what to come for market?
JACK OTTER, BARRONS.COM EDITOR: Not really. I'm not really surprise. I mean, IPOs are kind of like being leverage to the market, right?
BARTIROMO: Yeah.
OTTER: So, everybody is excited and go happy, I feel to eat in better and when people are depressed, they do even worse. Investors should understand that in general, the IPOs are not a good investment. They tend to go down a bit after the initial public offering.
Sometime in the first six months quite often and your kid is not a general rule. He's a general rule. It's not an always rule. Often there's a buying opportunity in those first six months and then if it's a good company as real cash flow then you might see it start to move higher.
But, another thing to keep in mind is that in a market that is this bad for IPOs. It's actually worth looking for good companies because unless you're a solid company, you're not get money anymore.
But why would you in the front equity got to pour more money into something that's going to be a losing investment. So it's actually a really interesting time for someone who's willing to do the research to find the good investment.
BARTIROMO: Do you think they will priced too high and that's why they're down on average 20 percent of the IPOs of 15 or it's just a bad market?
OTTER: I think there are some aggressive pricing that went on, Maria.
BARTIROMO: Yeah.
OTTER: Yeah, and now with the market now, that's showing confidence the little, you know, you look over the cliff, you realize you're not staying at the ground anymore (inaudible) your ankle. But let's go back and look at some these deals from the past. The Faceboook as we recall, came public and it went down, it went to $20.
BARTIROMO: That's true.
OTTER: It was left for dead.
BARTIROMO: Yeah. That's true.
OTTER: But then Zuckerberg and company, they figured it out how to monetize mobile apps.
BARTIROMO: Yes, right.
OTTER: And look at it now, it's everyone's favorite stock, it's showing growth.
UNIDENTIFIED MALE: An interesting point about Facebook was kayak was supposed to come public right after Facebook. They're going to ride the coattails and everyone is going to be a millionaire. Of course after Facebook, they actually canceled the IPO and the company was ended up being bought by another company.
BARTIROMO: It took all the opportunity .
UNIDENTIFIED MALE: Yeah.
OTTER: So let's look at what's going on now. Look, there are some real companies out there so called Unicorns that actually do a business models and can make money. They're something like Uber that, you know, even though they're losing billion dollars a month in China, whatever that number is, they're, you know, they're actually have a brand. They actually have this ability to like maybe an Amazon to have this dominant market share that the people are going to pay for scarce city in growth.
But then, some of the stuff that's not as high quality, it's getting these ridiculous evaluation, not monetizable. That's going to fall to the wasteland. I don't see that as unhealthy. I see it as a natural selection.
MCDOWELL: Is this not - but this is not just a market investor discussion because in of in private equity, quickly in venture capital. You had all these private companies that were wildly overvalued. The evaluation started getting reduced snapshot in the like of last year. That will eventually hurt additional investment. It will hurt the company creation and it will hurt the jobs in Silicon Valley which has been the engine of the country.
So I think that it gets down to the core of in that industry continued to grow like it has in the last several years.
UNIDENTIFIED MALE: I don't think it can. But I think the national selection is a great point. You know, these filthy things they have to calm down a little bit and then I'll leave a good ideas will end up getting funded and those will do well.
BARTIROMO: Look where they're starting from. I mean, you mentioned the private companies. You mentioned Uber. That's the issue. These evaluations are so high. There's nowhere to go but down there .
MCDOWELL: Right.
BARTIROMO: . once you go public.
MCDOWELL: Correct, and it already started happening.
BARTIROMO: Yeah.
OTTER: I still argue that, you know, with growth slowing over in the state of the economy, as you point out, there will be some jobs lost. I do agree with that. The companies that can show growth, there will be a scarcity premium will be paid for them. That's only going to become more so.
BARTIROMO: OK. So it depends on the company. We'll take a short break.
Coming up, the luxury taking flight one airline it's offering passengers, an apartment in the sky. The only thing it won't be luxurious for, well, your wallet. Keep it right here on the Fox Business Network.
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BARTIROMO: Welcome back. Everybody can agree that the air force can be a hassle between the baggage check security lines, the stale food. Well I wish the air travel could be more like a night at a luxury hotel. That dream becoming a reality with Etihad airways.
Recently opening its glamorous new lounge at New York City's JFK airport terminal right with champagne, fine dining at first class view.
Cheryl Casone took a trip to the airport to see just how the other half live.
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CASONE: All right. So Martin, what can I expect today? Tell me all about it.
UNIDENTIFIED MALE: So first of all the experience staffs, we're walking in to finally had lands. So welcome to the lounge.
CASONE: Hi, how are you? It's very exciting to be here.
UNIDENTIFIED MALE: And let me show you what we have to offer here.
CASONE: All right, let's go. I can't wait to go check it out.
UNIDENTIFIED MALE: And let me tell you about the lounge because it's pretty special. So, first of all you see brought in front of you here, we have the bar area and this is really the center piece for this lounge.
I mean, what we aimed for here was, we didn't want this to feel like an airport lounge. We wanted it to feel like a trendy New York bar and I think we've achieved it.
But actually what we do is we don't benchmark ourselves necessarily against other airlines. It is very much comparing ourselves to some of the finest hotels in the world and some of the finest restaurants in the world.
CASONE: OK.
UNIDENTIFIED MALE: So, then yes. So, this is just a selection of what we have on the menu.
CASONE: OK.
UNIDENTIFIED MALE: There's multiple other dishes.
CASONE: OK.
UNIDENTIFIED MALE: And, you know, in terms of, you know, multiple choice of appetizers. On-trays of course there is. You don't have a vegetarian option here now, but there are vegetarian options as well.
CASONE: The things are about to get .
UNIDENTIFIED MALE: Yeah.
CASONE: . better. You've got to be kidding me.
UNIDENTIFIED MALE: Yeah.
CASONE: This is like a home is it. It looks like an apartment.
UNIDENTIFIED MALE: It's yeah. It feels like that. It certainly does. So, this is the dedicated area for our residence .
CASONE: OK. So, show me around to kind of give me the - I mean, this literally looks bigger than a New York apartment to me right now and I can obviously sit down over here and have my dinner served in here before my flight.
UNIDENTIFIED MALE: Yeah.
CASONE: OK.
UNIDENTIFIED MALE: Yeah. So just to keep you, so this is the China wear that we have on board the residence.
CASONE: This is real China?
UNIDENTIFIED MALE: That is real China. Yes, and it's actually, so it's (inaudible) bone adult and effectively around the, you see that charge plate at the bottom, that's 24 karat gold plated.
CASONE: This is 24 karat gold plated.
UNIDENTIFIED MALE: Yeah.
CASONE: Well OK.
UNIDENTIFIED MALE: Assess to cover it.
CASONE: No one's going to notice if I just take this with me. OK, I'll see you later. Bye.
(END VIDEO CLIP)
BARTIROMO: What a fine experience, Cheryl Casone. How was it?
CASONE: You sent me on the worst assignments, Maria.
It really resented this one. They spent millions of dollars on this lounge in JFK. I mean, it literally is, right at this point the nicest airport lounge at that airport, probably in the United States and this is the New York to Abu Dhabi route that they just announced in the fall. That route is so popular. There so much demand for it, they had to launch it early.
They got the flights off the run earlier and it coming up at 8:00 hour. Obviously, we're going to talk about the plane. We're going to take you on the plane. That private residence that I took you into, there's a prayer room. Again, you served dinner in there and then there's also - that those two -- they only allowed two people in that residence and then those two people go on, that one person who can go on to the apartment. It's amazing what they've setup there. You can do something through the airport.
BARTIROMO: Isn't it unbelievable that it's the Middle Eastern flights that are so much more luxurious than the American? I mean, it's Etihad and also Emirates and which is as well, the classes are unbelievable. And so, it's much better than the American airlines.
CASONE: It really is and you know, of course my first question was who was buying these tickets. Its business travelers, a 110 percent, I mean, these but they want you to be comfortable. They want you to be rested because you're going to go in New York and you're going to land in Abu Dhabi 12 hours later and you have meetings and you have business to conduct. And that's the whole point. But they're really are stepping up the game as of JFK.
I have to give JFK props for really certainly they kind of redo the terminals and it's gotten a lot better than it used to be.
BARTIROMO: Yeah, they're investing in that New York because which is great. Cheryl, we're excited to see you in the actual plane. Cheryl is going to take us into the plane, the Etihad on board apartments later on in the show. So we'll look forward to that. Thanks Cheryl.
Still to come, the Pope calling out Donald Trump for wanting to build a wall between the U.S. and Mexico, say, he's not a Christian and Trump response. Wait until you hear this, will it be enough to change the opinion of Pastor Robert Jeffreys? We will find out after the break.
(COMMERCIAL BREAK)
BARTIROMO: Good Friday morning, everybody. Welcome back. I'm Maria Bartiromo. It is Friday, February 19th. With me this morning, Fox Business Network's Dagen McDowell, Rhino Trading Partners, Michael Block, and Barron's online editor, Jack Otter.
First though your top stories at 6:30 a.m. on the east coast, one day away from voting in the Republican South Carolina primary and the Democratic Nevada caucus. The latest Fox News poll shows how much has changed on the Democratic side of the race.
Take a look, the national survey, the latest numbers has Bernie Sanders leading Hillary Clinton for the first time ever, 47 to 44 percent. He jumped 10 points from January alone. Clinton making a strange admission to CBS's Scott Pelly about her truthfulness over the years. Listen to this.
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SCOTT PELLEY, CBS: Jimmy Carter famously said, I will not lie to you.
HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: Well, I have to tell you. I have tried in every way I know how literally from my years as a young lawyer all the way through my time as secretary of state to level with the American people.
PELLEY: You talk about levelling with the American people, have you always told the truth?
CLINTON: I've always tried to, always.
(END VIDEO CLIP)
BARTIROMO: The new Fox poll showed Donald Trump dominating in South Carolina. A brand new "Wall Street Journal"/Marist poll released moments ago shows the race tightening with Ted Cruz now only five points behind.
Trump meanwhile in a war of words with Pope Francis over immigration as well as Trump's faith. Taking a close look on whether this will affect tomorrow's vote in South Carolina straight ahead.
Onto markets we go, futures at the flat line this morning. We are looking at some weakness at the opening of trading. It's still early and we have been going back and forth in terms of the major averages.
But we are looking at some fractional losses. Still, though the major averages are on track for their best weekly performance since November. Later this morning we will get a read on CPI and allocating money in this market.