MARIA-00
Grow the Economy; Train Service on New Jersey Transit Remains Suspended
after Fatal Train Crash; Trump Preparations for Second Debate; Post-Debate
Polls; Trump Tries to Appeal to Women Voters; Wells Fargo CEO Grilled in
Congressional Hearing; Trump and Twitter; New Star Wars Toys for Holiday
Season - Part 3>
Cheryl Casone, Jared Max >
Kelly, Marissa DiBartolo>
Stocks; Fraud; wells Fargo; John Stumpf; Twitter; Women; Miss Universe;
Kate Moss; Entertainment; Movie Industry; "Star Wars"; "Rogue One"; Toys;
Collectibles"; Holiday Season; Steve Moore; New Jersey Train Crash;
Hackers; NFL; Lady Gaga; Super Bowl; UFC; Justin Rose >
What's your reaction to this campaign given all that we have discussed so far?
KERREY: Well, look, I think the biggest problem the country faces right now is trying to adjust to this phase of globalism. I don't think you solve that with tariffs. I don't think you solve it with walls. I think you have to make adjustment in our policies so that somebody who goes to work -- they get up in the morning and go to work, get a pretty fair chance of surviving in the marketplace.
Globalism unquestionably puts downward pressure on wages. It makes it difficult for people to buy health insurance. It makes it difficult for them to go to college. Federal Reserve last year said that if almost 50 percent of households if they have an unexpected bill of $400 they have to sell something in order to be able to pay the bill.
So there's no question that we need to make adjustments. And I think what Hillary is proposing comes closer although in her case as well, she's ignored entitlement, she's made it difficult -- and more difficult as a consequence of not doing something about pensions because I agree with the governor of Rhode Island I don't think he can be a liberal.
(CROSSTALK)
BARTIROMO: Look -- Donald Trump has campaigning on this from the get-go -- globalism. And basically saying look, I'm running for the President of the United States not the president of the world.
KERREY: I agree.
BARTIROMO: Hillary Clinton literally really is a globalist although just recently during the campaign she says she's not going to do TPP.
(AUDIO GAP)
KERREY: And protectionism never works. What's worked over the last 100 years especially since the Second World War is a liberal economic idea of transparency certainly where your investments are. It's reduced poverty globally.
That's the big idea that not only Americans but the rest of the world increasingly has been embracing. And I don't see this coming out of Trump. What I see coming out of Donald Trump is this is all bad, we have to protect ourselves.
MCDOWELL: There's very little daylight between Donald Trump and Hillary Clinton on trade number one. Trump has stopped talking about these tariffs. He stopped talking about those potential tariffs on China for months now for that very reason because it bothered conservatives quite frankly, I'm guessing.
But certainly people who were conservative don't want to hear about tariffs and trade wars, but Hillary Clinton in terms of trade, she's at odds with President Obama.
KERREY: No. But she's having to defend NAFTA which she's defended better in the debate. I think NAFTA has worked. NAFTA has been a success in my view to describe it. He didn't do this just to get the nomination. He proposed tariffs on Mexico, proposed tariffs on China in order to win the Republican nomination. He can walk it back.
BARTIROMO: Well, how come we still -- how come we still lose money in our trade to Mexico then, if it's so good?
KERREY: I mean at the margin we are losing money in trade to Mexico -- look, part of the problem with these trade agreements is it's very difficult on a short-term basis to say who is winning and who is not, but long-term, long-term, there's no question that (inaudible) attacks on merchandise that comes into the United States and eliminating these barriers and they can be difficult and there's -- I will repeat it again, there's no question it puts that and immigration and technology puts downward pressure on wages.
BARTIROMO: Right.
Kerrey: But I think the reaction against it is what troubles me.
FREEMAN: Ok. What about the other half of Trump's agenda? Isn't the answer to all of this not restricting trade and not restricting immigration but getting economic growth going again? And he's talking about a much lower tax burden on business. He's talking about less regulation, drill baby drill, let American energy to let us get all the benefits of that. Isn't that the answer? Doesn't a lot of this trade and immigration angst go away if we get back to 3 to 4 percent economic growth a year?
KERREY: Yes. I think that's true. I don't disagree with that. I think if you can lower the corporate tax rate and do something to repatriate money. I think if you can particularly get safe harbors on infrastructure investment. We wouldn't be able to build the interstate highway as consequence of 404 permitting process of the corps of engineers.
So you can't just propose infrastructure. You've got to somehow make certain that infrastructures are going to create jobs, going to increase productivity. But right now what you've got is actually the Democrats, I think, better on infrastructure. And the Republicans in my view are better on taxes and regulations. And you do need to get some kind of a grand bargain.
BARTIROMO: That's a big deal that you just said. I mean the Republicans better on taxes and on regulation.
KERREY: Yes.
BARTIROMO: We know what has been hampering this economy and keeping businesses from spending money. It's regulation. Why doesn't Hillary Clinton have a tax reform plan and a plan to roll back regulations?
KERREY: Well, I can't answer that question. I don't know what the answer is. But I don't think --
MCDOWELL: I have an answer.
She thinks government is the answer.
KERREY: I disagree. I think that's --
MCDOWELL: Democrats always think that government is better, that bureaucrats know better and politicians make benefits --
(CROSSTALK)
KERREY: You just made a sweeping generalization which includes me. I'm a Democrat and I don't think you can create jobs by hating the people that create them. I very much acknowledge, if I knew how to allocate capital I wouldn't have been a U.S. Senator. I understand that Congress sometimes pretends that it knows how to do something --
BARTIROMO: But you're not running for president -- Senator.
KERREY: I understand. But a sweeping generalization about Democrats is what I'm objecting to.
FREEMAN: I guess this is the question with her is she has been raising that tax hike. It started out in the $500 billion, $600 billion range. She's now at about $1.5 trillion, added a bunch of new items to please the left-wing of her party in the last few weeks. Is she doing this for political necessity or do you think she actually believes that's a growth strategy?
KERREY: I think she actually believes. But the bigger problem here is if you're going to make globalism work you're not going to make globalism work by repealing Obamacare because you have way too many people who simply can't afford to buy insurance. You're not going to be able to do it by ignoring the cost of higher education. You're not going to be able to do it without making --
BARTIROMO: Why are we focused on making globalism work? How about making America work?
KERREY: Because America is the big leader in the world. We are on the planet. We lead these things. We led it after the Second World War. You put the agreements at Bretonwood (ph) on the ballot today, they probably get voted down.
Look what they have done to lift the economy not just of the United States, it benefits us certainly but there are times as America we have to lead.
BARTIROMO: Should Hillary Clinton be asked about the Clinton Foundation? It didn't even come up in the debate the other night?
KERREY: Yes, I think that's a legitimate question for her, it's a legitimate question for Donald Trump and his foundation as well. Sure, these things are all fair game.
BARTIROMO: Yes.
We haven't seen the media focus on the Clinton Foundation at all. And I'm just wondering why it is that, you know, the American people are not getting the answers to -- as to why there was this pay to play scenario.
KERREY: I think it's a matter -- when you say media, I mean the "Time" has gotten deep into this thing and caused an awful lot of angst among Democrats when they read these things. They produced -- some of the support that Bernie Sanders had as well.
BARTIROMO: I mean how do we know she's not going to do the same thing as president?
KERREY: Well, the problem is you can't predict behavior of either one of them in that regard. But I do think that in this particular case there's been an awful lot of lessons learned.
We take the e-mail as an example. The big problem with the e-mail -- and I've been critical on this show --
BARTIROMO: I know you have.
KERREY: The big problem of the e-mail that's not being addressed is the Freedom of Information ACT which was passed in 1967 and Congress exempted itself. I mean it was letters and Pony Express back in 1967 -- that law needs to be changed. Because it's hampering whoever gets elected president. Now, I'm supporting Hillary but whoever gets elected president --
BARTIROMO: How should it be changed?
KERREY: Well, I don't know exactly. What I do know is that if you're sitting there in the executive branch knowing that FOIA can capture every single e-mail messages sending out, it's not likely that you're going to e- mail. And by the way, to test it, Congress should put themselves in FOIA and see what it's like to have your e-mails FOIA'd.
FREEMAN: Really why are we talking about rewriting laws when she obviously ignored, violated, broke them? You're talking about federal (inaudible) she has an obligation to share all of that. You're talking about her obligation to maintain the security of classified information. She's not following the rules. Why do we think a new law would solve that?
KERREY: Look, I've been on this show and been very critical of what the secretary did in this regard. All I'm saying is ok, now we have made our argument that what she did was wrong. We made our argument that what she did was done to run around FOIA. But behind it is FOIA. At some point, I'm not saying that should be necessarily your first line of attack, but behind it is a law that was passed in 1967 and Congress exempted itself.
If you imagined yourself, this will probably give you the cold sweat, imagine yourself working for the federal government in the executive branch --
BARTIROMO: I'm sweating. I'm sweating.
(CROSSTALK)
FREEMAN: This is one thing. I didn't know until I worked there, the bureaucrats don't like the bureaucracy either. It's a terrible environment, but --
BARTIROMO: That's a whole another conversation.
KERREY: It is better than the alternative.
BARTIROMO: Senator -- thank you so much.
KERREY: Thanks.
BARTIROMO: Great insights as always from Senator Bob Kerrey here.
Still to come right here Hurricane Matthew gaining strength in the Caribbean -- we are tracking the storm's path as winds intensify to over 100 miles an hour.
Then Coca-Cola is offering a new product to customers, the company's big plan to take on Starbucks next.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back.
A desperate search for answers this morning in the horrific Hoboken train crash that killed a young mother, injured 108 people.
Our own Adam Shapiro now is live in Hoboken, New Jersey with the very latest. Good morning to you -- Adam.
ADAM SHAPIRO, FBN CORRESPONDENT: Good morning, to you -- Maria.
I want to give you the latest headline because the NTSB vice chair is here on site and she has said that the event recorder -- that's like a black box has been removed from the locomotive which was powering the train when it crash into the station. You can see in the pictures and video from yesterday, the impact from that situation. Now, they haven't actually retrieved the data from that recorder but it will be key in the investigation.
Part of the problem, though, as the vice chair Bella Dinh-Zarr said yesterday, part of the problem the NTSB investigators face is that the ceiling has collapsed and they have to stabilize that before they can go into other parts of the train. Here's what she told us.
(BEGIN VIDEO CLIP)
BELLA DINH-ZARR, NTSB VICE-CHAIR: The canopy of the building is on top of the controlling car and water has been leaking all day so there may be some structural damage and weakness. Additionally because of the age of the building there is the possibility of asbestos. So there are concerns about that as well.
A contractor will be coming in to remove parts of the canopy and that's what the goal of making the area safe for our investigation activity to continue.
(END VIDEO CLIP)
SHAPIRO: And Maria -- just to wrap up, the investigation will focus on reconstructing roughly 72 hours before the accident, not only what the engineer was doing because he's been released from the hospital. The NTSB has requested an interview with him but to reconstruct his actions 72 hours before. There's a toxicology test on him to make sure that there were no influence from substances. And of course, the 114 people that were injured most of them at this point have been released from hospital although 13 remain at the hospital in Jersey City.
Maria -- back to you.
BARTIROMO: All right. Adam -- we'll keep checking on developments there. Thank you -- Adam Shapiro there.
Another hurricane meanwhile stirring up trouble in the Atlantic. Cheryl Casone with those details now -- Cheryl.
CHERYL CASONE, FBN CORRESPONDENT: Yes, Maria -- here we go.
This is Hurricane Matthew. It's now the fifth hurricane of the Atlantic hurricane season. Matthew has now strengthened to a Cat 2 storm packing maximum winds of up to 100 miles per hour. There's the current live map that we are showing you -- the satellite.
For now Matthew is posing an immediate danger to Jamaica, eastern Cuba and the Bahamas -- the storm expected to make landfall possibly early next week but the National Hurricane Centers says that Matthew could become a major hurricane later today or tonight.
The potential impact to the United States later, next week is really unclear but it's certainly a storm that forecasters are tracking very closely.
In other headlines this morning, Pokemon, the company that makes Pokemon being sued by Dutch authorities. The lawsuit coming after thousands of Pokemon Go players swarmed beaches on a small coastal town in the Netherlands. It's a protected area. Authorities there are concerned about those protected areas and, of course, the residents on this town are complaining. They tried to contact the game's creators, the company. But the company never responded so The Hague is now taking them to court. That lawsuit begins next month.
And finally this -- Dunkin' Donuts is teaming up with Coca-Cola to launch a line of bottled coffee beverages. Dunkin' says the new beverages are going to be actually made and distributed by Coca-Cola. These are going to be iced coffee. It will have milk, sugar, a lot of flavors are going to be them. This is going to all launch next year.
These are ready-to-drink coffees that -- this market is gigantic. It's really been dominated by Pepsi, Maria, and Starbucks as you know very well. Dunkin' wants to get into this. It's going to be convenient stores, Wal- Mart, Costco, everywhere. It's also a millennial market that the company is trying to get into -- Maria. Because they know that the younger folks are really going for those bottled coffee.
BARTIROMO: They like iced coffee.
CASONE: Yes.
BARTIROMO: Thanks -- Cheryl. We will look for it.
Coming up lawmakers grilling Wells Fargo CEO John Stumpf over the bank's phony account scandal. How do regulators stop something like this from happening again? We will talk about Wells Fargo in the news this morning along with Deutsche Bank.
Then Legos takes flight -- the company that's combining the popular toy with the big business of drones -- we will tell you about it, coming next.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back.
We are counting down to the election but what will the Election Day mean for the financial services industry?
We want to bring in Ken Benson. He is president and CEO of the Securities Industry and Financial Markets Association also known as SIFMA. Ken -- good to see you. Thanks so much for joining us.
KEN BENSON, SECURITIES INDUSTRY AND FINANCIAL MARKETS ASSOCIATION: Thank you. Good morning.
BARTIROMO: We've got to get a status check from you. I mean we have the Wells Fargo scandal. What is the securities industry looking like when you've got Wells Fargo on the hot seat because of these phony accounts? And then the speculation around Deutsche Bank and whether or not that's going to impact the broader industry.
BENSON: Well, Maria, I'm not going to comment on any individual member firm. That wouldn't be appropriate for me to do so.
What I will say is when you look at the regulatory construct that the financial services industry operates today, really going back 70 years but compared to over the last six years it's quite substantial. So we are talking about a highly-regulated industry with regulators given tremendous new tools, probably maybe too many tools in some instances to address issues when they arise.
BARTIROMO: Well, that's the point. I mean that's why I want to talk about the regulatory environment. Because you have the department of Justice right now shaking down Deutsche Bank, demanding $14 billion when everybody knows they don't have that money. What is the U.S. government trying to do to Deutsche Bank and does it realize the impact it has on the broader financial service's industry?
BENSON: Again, I'm sorry. I mean it's not appropriate for me to comment on what the Justice Department's motivations may or may not be. But what I will say is when you look at the structure of the financial services regulatory system today in the United States, all of our banks are much more capitalized than they were during the time of the crisis. We have seen capital rise by 400 to 500 percent. The quality of capital increased dramatically.
The tools that regulators have to address any issues that come up are quite substantial. And frankly, the concern that we have across the industry is with all that's been done, you know, more regulations in the last six years than the 60 years prior is that we are at a point in time where maybe it's worth stopping and taking a look at all the rules, finish what you've got in train right now and do a cumulative review to see what impact this may be having on economic growth and stability.
MORGAN ORTAGUS, MAVERICK PAC CO-CHAIR: Ken, good morning. This is Morgan.
BENSON: Morgan -- how are you?
ORTAGUS: I like what you just -- thanks -- I like what you just said about regulation. Senator McCain actually released a report last week that said the new regulations of the Obama administration it put out over the past eight years can cost taxpayers as much as $350 billion which I thought the number was staggering.
And I think in the Presidential race between Trump and Hillary there are some issues on trade that may be similar but when it comes to regulation, when it comes to Dodd-Frank and what would happen in the financial services industry, here is a clear distinction. What do you and your members have to say about the very distinct choice between the two of them as it relates to the regulatory policy?
BENSON: Well, you know, we don't pick sides in the Presidential debate but what we do believe is the next administration is going to need to take a look at the regulatory construct for financial services.
It's not to say we didn't need new regulations, we didn't new capital rules, but you need to look at the totality of what's been done and what the impact of those rules are on the ability for banks and broker dealers to allocate capital and credit and what that does to impacting economic growth and job creation.
And if you look at what's happening around the globe just in the last two day, you have had the Europeans push back on efforts by global regulators to impose even higher capital standards. The Japanese have done that prior. And the reason is because while they want financial stability, they also want economic growth. And we believe that the time has come in the U.S. as well to take a hard look at all that's been done, see where we can make constraining investment, new plant and equipment. And this is something I think the next administration, whoever that may be, is going to need to take a look at.
FREEMAN: Ken -- oh, sorry.
MCDOWELL: No. Ken -- I just want to bring up fact that the securities and investment industry has contributed to Hillary Clinton and organizations backing her $58.5 million dollars and they've given about half a million dollars to Donald Trump. Is she really going to be that much better for the securities industry?
BENSON: Well, SIFMA doesn't engage in -- we don't give money to presidential candidates.
BARTIROMO: Right. But your members do.
BENSON: Well, look, I mean that's one of the great things about America right. People can decide who they want to give to or not. So I mean I would ask those individuals their motivation for doing so.
What we look for and what we try to do as a member-based organization is to bring up the policies that we think whoever is in the office needs to address to move the country forward.
BARTIROMO: So is that all you're going to do? You're just going to bring it up. I mean we are talking about the regulatory environment stifling growth. We all know what the issues are -- Ken. We know that we need economic growth in this country. And we know that the regulatory environment is strangling business today. Can you do anything else or are you just powerless?
BENSON: No, I don't think we are powerless. I think our job is to advocate on behalf of our members, to advocate before the regulators. You know, we certainly do that on a day-in, day-out basis. We will be doing with the next administration when they come in to talk to them about our ideas of how they can move the economy forward whether it's through infrastructure finance; whether it's through tax reform, whether it's through a review of the regulatory framework that's been put in place.
And listen, one of the things that we believe is encouraging throughout all the debate and chatter around presidential politics is the one thing that you do see both candidates talking about are tax reform.
BARTIROMO: No, actually you don't hear Hillary Clinton -- Hillary Clinton is not talking about tax reform. That's not true.
(CROSSTALK)
BENSON: But just a second.
BARTIROMO: And she says she's going to build on President Obama's regulations.
BENSON: I'm not going to debate. All I'm saying is at the top level, top line both candidates have talked about those different things. And at the same time -- there's wait, wait. That's another group we can't leave out. That's the congress -- something I know a little bit about.
BARTIROMO: All right. Here's James Freeman from the "Wall Street Journal", Ken -- real quick. Go ahead, James.
FREEMAN: Yes, I'm just trying -- we are trying to figure out this puzzle of why so many financial people are giving so much more to Hillary Clinton even though she's saying more Dodd-Frank and Trump is saying less Dodd- Frank. Do you think they are essentially paying protection money? Or deep down a lot of people on Wall Street actually like regulation because it keeps out smaller competitors?
BENSON: I mean again, you need to go ask people why they're giving money to who they give it to. That's not our role. Our role is to advocate on policies that build a strong and stable financial services market for the United States which we think is good for long-term economic growth.
BARTIROMO: By the way Ken, before you go, what is Hillary Clinton's tax reform plan?
BENSON: Now, what I am saying is that you have both candidates talking about tax reform, talking about infrastructure finance.
BARTIROMO: What did Hillary Clinton say about tax reform?
BENSON: If I can finish.
BARTIROMO: Yes.
BENSON: More importantly you have leaders in Congress, because remember it's a multipart effort on how we govern this country.
So in our view, in our view we believe that the next administration is likely to focus on infrastructure finance which we think is a good thing done correctly, tax reform which is tied to infrastructure finance and then immigration, but to our standpoint we're focused on infrastructure --
(CROSSTALK)
BARTIROMO: We understand, Ken. We understand that. But I'm just trying to figure out what exactly Hillary Clinton has said about tax reform.
BENSON: Look, all I know is what I read in the press and what --
BARTIROMO: Right. But you just said both candidates are talking about tax reform. I know what Donald Trump has said. What has Hillary Clinton said about tax reform?
BENSON: What I'm saying is the candidates have talked -- I'm not here to parrot either candidate, ok. So what I'm saying is we believe -- we believe that these will be the issues that will on the forefront which we will advocate on behalf of our members for the benefit of the economy.
BARTIROMO: All right. We hope so. We'll be watching Ken. Thank you. Ken Benson joining us there.
BENSON: Right. Thanks a lot.
BARTIROMO: Still to come Google is looking to cash in on the big business of travel -- how the company is helping your search for the perfect getaway.
Then this device may be the fairest of them all -- the Apple fan that gave his iPhone a whole new look, back in a minute.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. Happy Friday, everybody. I'm Maria Bartiromo. And it is Friday, September 30. Here are your top stories, 7:30 a.m. on the East Coast.
Thirdy-nine days until election day -- Donald Trump and Hillary Clinton will appeal to independent voters today in the battleground states of Michigan and Florida.
(BEGIN VIDEO CLIP)
CLINTON: I am going to close this campaign the way I started my career decades ago, fighting for kids and families because...
(APPLAUSE)
...it's been the cause of my life. It will be the mission of my presidency.
TRUMP: I don't think African-Americans are going to come out and vote for Clinton. They are too smart. And they know they are just being used.
They also know...
(APPLAUSE)
...that she'll do nothing for them.
(END VIDEO CLIP)
BARTIROMO: Plus remember Shimon Peres this morning. President Obama and leaders from around the world attend the funeral of the former Israeli president and Nobel Peace Prize Laureate.
Turning to business, Google packing its bags for travel. We will show you the technology giant's new app that may help you in traveling on business.
But it is already hurting companies like TripAdvisor, Priceline and Expedia. In markets, we're expecting a -- a flat opening for the broader averages, investors signed (ph) some economic data this morning.
We've got the personal spending and income report for the month of August due out in about an hour from now. In Europe, markets are lower across the board, dragged down again by another decline in Deutsche Bank, now at a new record high -- record low, rather --- pardon me -- on Deutsche Bank, that has a DAX index in Germany down almost one percent.