MARIA-03
Violence at Trump Events over the Weekend; Paris Terror Suspect Was
Planning Further Attacks; Apple to Reveal Newest Updates; Marriott Raising
Bid for Starwood Hotel Chain - Part 2>
Doug Heye>
Marriott; Finance; Donald Trump; Violence; Terrorism; Brussels; Apple
Electronics; Barack Obama; Donald Trump; GOP; Bernie Sanders; Apple; Stock
Market; North Korea >
It says actually remarkably positive convention, and I think in essence the Trump people, in fact, have been working on this.
They do it differently than the Cruz people do, but again, Trump is a guy who knows how to organize very large projects.
And this is to him, I think just another very large project.
BARTIROMO: So, what do you think comes out of this meeting today with Trump and Republican leaders?
GINGRICH: Who knows?
BARTIROMO: Yes --
GINGRICH: I think it's a good thing, I think it's a good thing this is happening, just as I thought it was very good that he talked to Paul Ryan and he talked to Mitch McConnell.
I think it's a sign he's beginning to recognize he can't just be the lone ranger either as president or as candidate.
You've got to eventually start to assemble a team. I know Senator Jeff Sessions has put this together and is working very hard to try to build a real bridge between Trump and Washington elected officials.
BARTIROMO: Real quick. Is there still a road for Ted Cruz?
GINGRICH: Oh, sure, look, this is not over, look at tomorrow's results. Trump is going to come in third for the first time in any primary this year.
In Utah, where clearly Mormons have consolidated against him. It was a pretty big Mormon faction in Northern Arizona, you could imagine that tomorrow might be an upset there.
If that happens, it really is a different race. However, if Trump wins Arizona and Cruz wins Utah, I think we're still drifting towards a Trump nomination.
BARTIROMO: All right, tomorrow could be a big spoiler, we'll see, big day --
GINGRICH: Yes --
BARTIROMO: Always good to see you, Newt Gingrich, thanks so much.
GINGRICH: Good to see you --
BARTIROMO: We'll see you soon. And stay with us, we'll be right back.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. Good Monday Morning, everybody. I'm Maria Bartiromo. It is Monday, March 21st. Your top stories right now at 8:30 AM on the East Coast. A historic trip for President Obama, becoming the first president to visit Cuba in nearly 90 years. It is not without controversy and protest, however. Fox News senior managing health editor and Cuban immigrant, Dr. Manny Alvarez, is here coming up with more on his take.
Donald Trump looking to make peace, he will reportedly meet with Republican Party leaders for the first time in months. More protests and violence erupting at his events over the weekend. Trump, well, he is blaming the other side.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENTIAL CANDIDATE: I think it's very unfair that these really, in many case, professional, in many cases, sick protesters to put cars in the road blocking thousands of great Americans coming to a speech, and nobody says anything about that.
(END VIDEO CLIP)
BARTIROMO: This coming ahead in the next round of primaries and caucuses tomorrow. The key states to watch tomorrow, Arizona and Utah.
The top suspect in the Paris terrorist attack was planning new terrorist attacks out of Brussels. He was captured in a police raid, but his lawyer now says the suspect is planning to sue a French prosecutor. Apple set to reveal its latest round of updates and show why bigger is not always better. We will take you to Cupertino, California, for a preview of the new products coming out.
Markets today, we're expecting a higher opening for the broader averages. Take a look, the market has completely reversed course in the last 20 minutes, and now looks negative at the start of trading. We have a handful of economic data out this morning, like new home sales, later in the week, the GDP report and durable goods orders. Of course, we are in a holiday shortened week, markets are close on Friday for the Good Friday holiday. Stock to watch in today's trading session, Starwood, the hotel chain accepted a higher takeover bid for Marriott. Marriott is raising its bid, the new offer values Starwood at $13.6 billion, this of course after the Chinese group of companies last week tried to upset the Starwood and Marriott proposal.
Turning back to our top story this morning. President Obama set to meet with Cuban president, Raul Castro, today, becoming the first sitting U.S. president to visit Cuba in nearly 90 years. This is part of Obama's administration to restore diplomatic ties with the country. My next guest is former American aid worker who was in prison in Cuba for five years. He has this calling for congress to lift the U.S. trade embargo on Cuba. Former U.S. government subcontractor and ex-Cuba prisoner, Alan Gross, joins me right now. Allen, thanks very much for joining us.
ALAN GROSS, FORMER CUBAN PRISONER: Good morning, Maria.
BARTIROMO: What would you like to see come out of the trip?
GROSS: Well, I think that the exposure of the Cuban people to American leadership is an excellent opportunity, and the president is a role model for many people. So, I think the Cuban people will be given the opportunity or the hope of opportunity.
BARTIROMO: Well, it's a big deal. The opportunity or the hope of opportunity, right? I mean, we know the situation in terms of human rights in Cuba. I mean, you know, it was remove from the state department lists of state sponsored of terrorism last year. And the Obama administration has published a series of rule changes allowing U.S. businesses to export product to Cuban entrepreneurs, and yet nothing has changed for the Cuban people.
GROSS: Well, that's not entirely true. Since the president issued an executive order in his first term using restrictions on remittances, a lot more money has flowed into the private sector of Cuba. And the government of Cuba has responded by easing some restrictions on the private sector on two occasions. And so today we have a scenario where 11 percent of the Cuban workforce works in the private sector and they are no longer dependent on the government of Cuba for their livelihood. It's not what we want? If not what many people in Washington have been screaming for, for so many years.
BARTIROMO: Right. Ok, let's talk about your story for a moment, Alan, because you were jailed by the Castro government in 2009 for importing banned satellite communication equipment to Cuba as part of a U.S. effort to help Cubans get online. You are freed in December of 14, as part of a prisoner swap that pave the way for the reestablishment of diplomatic relations between Havana and Washington. Can you tell us a bit about your story?
GROSS: Well, it wasn't a very happy five years for me in Cuba.
BARTIROMO: What was it like?
GROASS: It was really terrible. It was terrible being separated from my family, and losing freedom is something that is an incredible, it's an incredible experience, not being able to go outside, not having the freedom to do anything. I could only exercise, get my 10,000 steps in by walking around in circles for essentially five years. But now, I'm a happy camper. I'm home with my family and friends, and I can walk great distances in a straight line and it's really pretty good.
BARTIROMO: So, what has changed in Cuba from your stand point then, when you were jailed?
GROSS: Well, first of all, internet is now legal for Cubanos. It was legalized in June 2013. The cost of internet access even if the service is not really a great service, but the cost of the service went from $6 an hour to $4.50 an hour, now it's $2 an hour. The government of Cuba has been opening up internet centers around the island and creating Wi-Fi hotspots for those with smartphones to use. And I think that is an incredible development. It doesn't excuse the government for 50 years or 55 years of bad experience, but it shows that they are taking somewhat of a pragmatic approach. And my view is that information is food for the brain. Information and access too should be a human right, should be consider a human right. And I think the government of Cuba is just starting to realize that without food for the brain, development is thwarted, and their development economically has been tremendously thwarted. Not by the embargo, but by their own policies.
BARTIROMO: So what policies do you want to see changed?
GROSS: Well, you know, 11 percent of the workforce in Cuba is in the private sector now, which means the government of Cuba is starting to get out of the way, so the private sector can flourish. I think that our government needs to do the same thing and lift the embargo.
BARTIROMO: Let me ask you about what Dr. Manny Alvarez told us earlier. Earlier we spoke with Manny Alvarez, he's best known as Fox News senior managing health editor, but he's also a Cuban immigrant. Here's what he told us about the president's trip.
(BEGIN VIDEO CLIP)
MANNY ALVAREZ, FOX NEWS SENIOR MANAGING HEALTH EDITOR: The Cuban society even today gets monitor constantly. And I would argue even the Cuban government keeps a tab on all the Cuban-Americans that are here. They know what I do or, you know, the things that I'm saying.
BARTIROMO: Wow.
ALVAREZ: So, it's still a society that is quite controlled by the government.
(END VIDEO CLIP)
GROSS: That's right.
BARTIROMO: Alan, are used to be monitored?
GROSS: Here?
BARTIROMO: Yeah, you.
GROSS: If I'd being monitored, by our government, not theirs.
BARTIROMO: Well, he just said.
GROSS: I have.
BARTIROMO: He just said Cubans who are in America are being monitored. That is what Dr. Manny Alvarez said.
GROSS: No, he said Cuban-Americans. He said Cuban-Americans. He didn't specify location.
BARTIROMO: OK. So you don't think you're being monitored?
GROSS: Me?
BARTIROMO: Yeah, you.
GROSS: No. I'm not that paranoid.
BARTIROMO: OK.
GROSS: I'm not paranoid. Unlike the government of Cuba which has certain pathologies, and they are not likely to give up control per se for a number of years to come. Just as we won't achieve normalization anytime soon. It's going to be a long and arduous path that we have to take. But I think it's very important to note that some very significant changes have taken place on the island that Cubanos now half better communications, even though the communications are so rotten, they are better than they were. They're no longer being arrested for trying to log on to the internet by 3 billion other people around the world do.
BARTIROMO: So, it sounds like you think this trip is worthwhile for the president to go to Cuba despite the fact that there's a pretty good pushback that the U.S. doesn't really geting anything in return in terms of helping to open up markets.
GROSS: Well you know, I think that's a misnomer. With the trade that we've done with Cuba, just in the past six years by the department of commerce estimates that says for every $180,000 in U.S. exports, one U.S. job is created. That means, just from our business with Cuba, 5,556 jobs have been created. If there was no embargo that would be six times according to an ITC study, we would be doing $6 billion at least in business a year. That's 33,000 jobs in the United States. That is in our best interest.
BARTIROMO: Alright. We will leave it there. Alan, good to have you on the program this morning. Thanks so much.
GROSS: Thank you. Thank you very much.
BARTIROMO: Alan Gross. Up next, the capture of accused Paris attackers yielding crucial insights leading to the admission that he planned to strike again. We've got the latest there. And then an influx of people trying to visit Apples on-line store ahead of the tech giant events today, causing the website to crash. We'll take you to Fox Business, Jo Ling Kent, in Cupertino for a preview of what to expect with today's new iPhone announcement.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. We're getting new picture this morning on Friday's arrest of the top suspect in the Paris terrorist attacks. Cheryl Casone with this morning headline now, Cheryl.
CHERYL CASONE, FOX BUSINESS NETWORK: Well, good morning, Maria. And look at this video, we're just getting this in this morning. You can see the police in Belgium preparing to capture Salah Abdeslam. Then they zero in on his apartment before he's taken into custody. Meanwhile, Belgium's foreign minister says that Abdeslam claims that he was planning to launch new operations from Brussels. Police found a lot of heavy weapons in the first investigation, and they have seen a new network of people around him. He's the only surviving suspect in the November 13th attacks which killed 130 people.
Well, Milwaukee Brewers outfielder Rymer Liriano, suffering multiple facial fractures after being hit in the face by a pitch. The pitch from L.A. Dodger, Matt West, hit him on the left side of the face in the eighth inning. Brewer's manager saying that Liriano is conscious, but the injuries are very serious. We'll keep you posted on that.
And a second bald eagle hatching at the National Arboretum in Washington, D.C. The second emerge yesterday, 2 days after the first eagle hatched, they got two babies now. The parent nicknamed Mr. President and the First Lady has been nesting at the National Arboretum since October of 2014. In life came up, by the way, lot of interest from people around the world, back to you.
BARTIROMO: They're really cute. Thanks, Cheryl. Big day for Apple, today, the technology giant holding an event to unveil a new round of product updates. Jo Ling Kent is live from Apple headquarters, Cupertino, California, with preview. Hey, Jo.
JO LING KENT, FOX BUSINESS NETWORK: Hey, good morning, Maria. That's right, a very big week for Apple, historic indeed. CEO, Tim Cook, in just a few hours will take the stage right here behind me in one infinite loop to reveal some new products that has made its biggest spike ever with the Federal government. We do expect to get a couple of products, a new smaller iPhone it's four inches with a faster processor, this comes as iPhone sales may actually be down year-over-year for the first time ever. It declined in grew its slowest rate, excuse me, last quarter. So, it's unclear what's the pricing will be on that phone, but we've expect to get a refresh on that iPhone. And a new and improved iPad as well, this is a category that has been challenged over the past few years for Apple. CEO, Tim Cook, may only address the ongoing issues with the FBI over the state of the iPhone 5C involved in the San Bernardino shooting, the gunman who killed 14 people. That hearing is slated for tomorrow afternoon in Riverside, California. But public opinion, Maria, on this issue is relatively split according to a New York Times, CBS poll, 50 percent of Americans believe Apple should unlock the iPhone 5C in question in the San Bernardino shooting, while 45 percent say it should not. So, we're watching Apple stock as always, it's relatively flat on this news, but has been rising in recent weeks ahead of this product announcement. So, a very big week for Apple, and we will bring you more live as it comes in, Maria.
BARTIROMO: Alright, we will be back to you, Jo. Thanks so much, Jo Ling Kent, in Cupertino. Kevin, this morning we're watching Apple, the stores online website reportedly down ahead of this announcement because there is a standard for every product release, and it just got busted, people are online trying to get the new product.
KEVIN KELLY, RECON CAPITAL PARTNERS: Yeah, absolutely. And what's funny is that people actually just want a phone, right? And this is a four-inch device reportedly and that's what they want. I mean, they went so big that they didn't keep up with keeping it small, and sometimes people don't want a huge device. They don't want a tablet.
BARTIROMO: Yeah, but in terms of the actual online website going down, Dagen, apparently they do it on purpose.
DAGEN MCDOWELL, FOX BUSINESS NETWORK: And it seems like that they do it in part to get up interest.
BARTIROMO: OK, maybe that's just what it is, it's just getting a lot of excitement, and so that you could see the demand.
KELLY: They're probably trying to get the back end available so people can order it once it is, you know, once it is announced. It's not announced right now. They don't want things leaked. That's the big thing, their big online.
DOUGH HEYE, RNC COMMUNICATION DIRECTOR: And Apple is been on the receiving end of a lot of bad news over the past weeks and months. And this gives them something good to talk about, they got a new product, they can tell their story.
MCDOWELL: Wait a minute
HEYE: . this ultimately will help -- value prices.
MCDOWELL: They don't want things leaked, every report.
BARTIROMO: They leaked it.
MCDOWELL: . every report has the exact same information, and we know exactly -- for the most part, except maybe for the software, which Tim Cook is going to lay today. Where do they think you're getting it from?
KELLY: Of course, they're actually -- they're helping manage that, obviously, but I think this is actually is going to addressable market. There are a lot of priced conscious consumers that can afford this. Their very focus on their margins. Their margins have to come down. Now, not everybody -- Apple wasn't meant for everybody, but this really combats the price conscious people in the developed nation -- other developed nations that can afford. So this is helping keep their market share.
BARTIROMO: All right. We'll take a short break. We're expecting a higher opening for the broader averages today, although we've seen a complete reversal in the last 30 minutes or so. Take a look at what's going on, the Dow Industrial now looking down, about 10 points. It's a flat performance, really, but certainly we've given up a lot of momentum. We're just 45 minutes away from the opening bell. We're going to take a look at the morning big movers when we come right back. Stay with us.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. We're about 35 minutes away from the opening bell for a Monday. Let's take a look at some stocks on the move this morning. Share of Valeant Pharmaceuticals halted moments ago, the stock set to open down nearly 5 percent, after several brokerages cut their ratings and price targets this morning, one of the top stories in the Journal on Valeant as well. Obviously, last week, huge selloff. Belinda, is asking lenders for more time to file before they demand early repayment, it is running out of money.
Starwood hotel popping 5 percent in the free market. Marriott, sweetened the bid, the company has agreed to a sweet $13.6 billion deal with Marriott international, dropping last week offer from China's Anbang insurance group. It looks like Starwood and Marriott will get together after all despite the Chinese. Checkout Tesla, stocks got better than 1 percent in the free market. Analyst at Argos Research upgraded the stock, for a whole to a buy with a price target of $333 a share. Tesla is down better than 3 percent year to date. Another deal moves this morning, Valspar shares set to open at a record high, after rival, Sherwin-Williams said it will acquire the paint maker in an all cash deal valued at $9.3 billion. Quick break, don't forget, Wall Street Week, gets new life on the Fox Business Network on Friday night. It airs this weekend, Friday, at 8:00 PM Eastern, and then again on Saturday and Sunday morning, hosted by a very own, Anthony Scaramucci and Gary Kaminsky. Catch it right here on the Fox Business Network this weekend.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. A big day on the campaign trail tomorrow. The next round of primaries and caucuses. Key states to watch, Arizona and Utah, Dagen, you heard what Newt said this could be a game changer tomorrow.
MCDOWELL: Arizona is the most critical winner takes all. You'll have Mitt Romney come out and say he'll back Ted Cruz in Utah. Cruz get the endorsement of Senator Lee in the state. But winner takes all with Arizona. If Trump gets it, he's still firmly on a path to get into that nice round number before the convention.
BARTIROMO: Yeah, final thoughts, what do you think?
HEYE: So many people are focusing on the states and the meeting in D.C., but also look at is the Donald, Donald Trump speak to the AIPAC, the American-Israeli political action committee, they could place for him to get foreign policy advisers, but given his comments on Israel, you run the risk of too bad stories. One, he's walking back his previous comments in Israel, or attendee's walks out. He has to be careful about that.
BARTIROMO: How long does AIPAC goes on?
HEYE: It goes on a week. And a lot of meeting on Capitol Hill, and so forth. It is enormously influential within the Republican Party.
BARTIROMO: You said it changes D.C.?
HEYE: Absolutely. Access into the capital. If you time it at the wrong time you will be in line for 15 minutes to get into the Capital.
MCDOWELL: Tonight you'll hear from Kasich, Trump, Cruz, and then Paul Ryan, this evening. They're talking about.
KELLY: You know, it will be interesting to see if they talk about health care, because healthcare is been one of the, you know, best sectors in terms of profits. So that's what going to be telling for this market over the next 3 to 4 weeks, it's going to be running on macro concerns. And the market is either overvalued or fairly valued, and we're going to have earnings coming out, and so there's been a big run-up. Everybody needs to be very cautious because we know a lot of estimates were at that level, so you've got to be safe on what you have exposures to.
BARTIROMO: Yeah. We're looking at the market now being in positive territory for what we've seen. All of that panic at the beginning of the year.
KELLY: And not much have changed.
(CROSSTALK)
BARTIROMO: But you said, one thing that struck me earlier, you said earnings are going to be down 7 percent.
KELLY: Yes, exactly. First-quarter earnings are expected to be down 7 percent, if you take out energy it's probably going to be 2.5 to 3 percent down. What you really need to focus on is -- look at the earnings numbers that have come out before guidance last week. Caterpillar came out, revise their first-quarter guidance down. So you're going to be seeing that come across -- that's foretelling on what's going to happen in the next four weeks. And there's that seasonal phenomenon telling that they go way, so people need to be very careful because there are -- what's happen is volumes have been down so far and there's not a lot of conviction in this market.
BARTIROMO: Yeah, Dagen.
MCDOWELL: Just really quickly. Trump speech tonight is a prepared speech with Newt Gingrich talked about. This is not off the cuff.
BARTIROMO: Wow.
MCDOWELL: . not the usual Trump that you see. They work on it, filled it with substance, work on it for at least the last week, so.
KELLY: You don't think he's going to drop the cup a little bit.
(CROSSTALK)
BARTIROMO: I've got to tune into that.
(CROSSTALK)
MCDOWELL: Right. He won't be spit balling talking about poll numbers. This is the nitty-gritty of.
BARTIROMO: Kevin Kelly, Dagen McDowell, Doug Heye good to see you. Thank you so much, everybody, great show. That will do it for us. Varney & Co., up next. Join us tomorrow, Ben Carson will weigh in. I like to get to Stuart Varney there, right now. Stuart, have a great show.
END
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