MARIA-00
on Battleground States; Vice Presidential Debate Preview; Bass Pro Shops
Acquires Cabela's; Trump on the Defensive Again Following a Report in the
New York Times; Deutsche Bank Settlement Not Yet Reached; U.S. Wins Ryder
Cup - Part 5>
Flock, Stuart Varney, Jared Max >
Golf; Kim Kardashian; Hurricane Matthew; Theresa May; Starbucks; Englewood
Chicago; Bass Pro Shops; Bernie Sanders; LeBron James >
You're right, Maria, when you said, you know, coming into the segment about these Bernie comments is that they are trying to deflect with the criticism on the taxes of -
BARTIROMO: Right.
CAFARO: -- Donald Trump because they are trying to say this is have and have nots and that he hasn't paid his fair share, and that basically Donald Trump is a mooch and he hasn't paid for roads and the rest of the stuff.
One thing I will say, as the ranking member on transportation in Ohio for the last almost decade, you don't pay for roads with income taxes, at the federal level or the state level, at least in Ohio. So --
BARTIROMO: What tax is used? That's a good point.
CAFARO: It's Federal Gas Tax. At the federal level it's Federal Gas Tax. The state uses multiple types of funding mechanisms -
BARTIROMO: Yes.
CAFARO: -- but at the Federal level, we don't use federal income tax for roads.
BARTIROMO: Real quick, are you surprised at how close Ohio is with Trump and Hillary where they are?
CAFARO: No, I'm not; because of the issue on trade, because there's a huge amount of frustration, I cannot tell you. I'm from a predominantly Democratic area -
BARTIROMO: Yes.
CAFARO: The Trump signs are sprouting up all day, every day, every place that I'm at. It's going to be a horse race here to the end.
BARTIROMO: Wow; isn't that interesting. Betsy McCoy, Capri Cafaro, good to see you both, Ladies. Thank you so much.
CAFARO: Thank you.
BARTIROMO: FOX Business will take you to the Vice Presidential Debate live, tomorrow night. Do join us beginning at 7:00 p.m. Eastern for our special coverage of the VP debate; that's tomorrow night, live. Begins at 7:00.
Coming up, the Caribbean is bracing for Hurricane Matthew this morning. Haiti and Jamaica preparing for a catastrophic hit from the Category 4 storm. We will tell you the details, tell you if the hurricane could make its way to the U.S. coast of Florida.
Still to come, a scary encounter for Kim Kardashian. The reality TV star was robbed at gunpoint this weekend in Paris. The dramatic details that forced Kanye West to leave his concert mid-performance in New York. Back in a minute.
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BARTIROMO: A monster hurricane headed toward Jamaica and Haiti right now. Hurricane Matthew, a Category 4 storm, as American vacation goers urged to get out, and the U.S. Navy is now evacuating personnel from Guantanamo Bay. FOX News Meteorologist Janice Dean now in the FOX Weather Center with the latest. Good morning, Janice.
JANICE DEAN, FOX NEWS METEOROLOGIST: Good morning, Maria. This is the strongest storm that we have seen in the Atlantic Basin in almost ten years, and one that could bring catastrophic impacts to Haiti. We are expecting a direct hit on Haiti and 70-percent of this country is poor, so they are living in tents and, unfortunately, still repairing after the 2010 earthquake. So this could be devastating, potentially deadly for the folks in Haiti. Prayers are need this morning.
As the storm continues to move northward, Hurricane warnings for Haiti, Jamaica, as well as Cuba. Hurricane Watches for the Bahamas. Slow moving storms. It has maintained its major hurricane strength since Friday, and we are expecting it to still maintain its strength as it makes its trek close to Haiti. Jamaica also impacted here; Eastern Cuba, the Bahamas.
Then what happens after that, to the East Coast? A lot of uncertainty here. So, I keep saying anywhere from Florida to Maine, you need to be watching the forecast of this hurricane. You can see, Saturday this is that cone of uncertainty still offshore of the Carolinas. So we will be dealing with this well into the weekend and into next week.
Here is one of the reliable forecast model that is make up the cone of uncertainty. The GFS Model, the American Model, and again, expecting a tremendous impact on Haiti, then into the Bahamas; this is Wednesday. Then Thursday, Friday watching a very close call for the Carolinas, the coastal Carolinas up towards Virginia and then even the Northeast. This is Saturday, this is a very strong hurricane just off the coast of the Outer Banks.
Then, here is the European Model, another reliable forecast model that we use to determine that cone. Bahamas on Thursday and then coming close again to Florida, the Carolinas, Georgia on Saturday. So the bottom line here is over the next couple of days, Haiti, Cuba, Bahamas needs to monitor this. The East Coast, everyone is in play right now, Maria. We'll be watching it for you from the FOX News Extreme Weather Center.
BARTIROMO: That could go anywhere. Janice --
DEAN: It really could.
BARTIROMO: -- thank you so much. Janice, we'll check back. The engineer at the helm of the deadly commuter train accident in New Jersey claims he has no memory of the crash. Here's Cheryl with the details this morning. Cheryl, good morning.
CHERYL CASONE, FBN CORRESPONDENT: Yes; good morning, Maria. (HEADLINES).
BARTIROMO: Thank you so much. The clock is ticking for Deutsche Bank, meanwhile, that's to reach a settlement with the Department of Justice. What a multi-billion-dollar settlement could mean for other banks and is it anywhere close to rumored $14 billion first reported by "The Journal"?
Hillary Clinton scores an endorsement from NBA All-Star, LeBron James; why he throws his weight behind Hillary Clinton, coming up next. Back in a moment.
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BARTIROMO: No deal yet between Deutsche Bank and the Justice Department. "The Wall Street Journal" is reporting that settlement talks over mortgage securities are ongoing, despite a report last week that the bank could pay a $5.4 billion fine.
Joining us right now is Mark Avallone. He is Potomac Wealth Advisors President. Mark, it's good to see you. Thanks so much for joining us.
MARK AVALLONE, PRESIDENT, POTOMAC WEALTH ADVISOR: It's good to be here.
BARTIROMO: Before we get into markets and how are you allocating capital right now, are you worried about this Deutsche Bank story? "The Journal" first broke the story months ago that they were facing a 14 billion fine from the Justice Department. Now "The Journal" is reporting that these negotiations could make it a lot better, 5.4 billion and that why the stock rallying on Friday. What's your take on the Deutsche Bank story and its impact on broader markets?
AVALLONE: Well, the 14 billion is a huge number; it flies a lot better obviously. What concerns us which concerns us are which banks are next and how aggressive the DOJ is going to be going after the other banks.
BARTIROMO: So do you want to stay away from the financials then?
AVALLONE: Well European financials are a sector that haven't been strong and we don't expect them to be strong. It's a different story in the U.S., but developed Europe isn't very exciting right now.
BARTIROMO: What do you think about this, Anthony Scaramucci? I mean, the Deutsche Bank story, I think, is worrisome to people because of its derivatives portfolio. If it has to start unloading securities, is that going to put a big pressure on the broader market?
SCARAMUCCI: It is, and so they'll probably renegotiate that deal so that doesn't happen. They'll definitely get a bailout if necessary from the Germans, but I think ultimately the European banks are in a disaster zone, Maria, and many of these banks have negative equities. So the bigger, broader issue, and my question is, what happens when the Italian banks start to fail and the Spanish banks? What do you think happens in Europe then?
AVALLONE: Well, that's one of the reasons we're not there. I mean, there's so much political instability there. The banks are not as well capitalized as the U.S. banks. There's very little reason to be in developed Europe right now. London has been the exception. I mean, leaving the E.U. has led to a stock rally there. London is at an all-time high. Maybe being in the E.U. - I mean, leaving the E.U. has been a good move for London.
BARTIROMO: Yes, but they say that there's going to be a timeline for Britain exit from the Euro Zone. British Prime Minister, Theresa May, said this weekend that Article 50 will be triggered by the end of March 2017 leading to full exit by '19. Do you think that - do you believe in that timeline?
AVALLONE: Well there were some comments today by some other countries that said that's a little too aggressive. They want to see what that proposal fully means, but it's refreshing that the British Prime Minister actually wants to follow on the will of the people.
BARTIROMO: Yes.
AVALLONE: That part is very refreshing.
MCDOWELL: In terms of -- we talk about the dire situation in Europe. How is there not a spill over here, into the United States?
AVALLONE: Well, we through this already. The DOJ has already gone after the American banks. We've paid huge fines and we're very well capitalized on our bank. So we don't see this as a global contagion. It will slow down European growth, which is why we'd would rather allocate capital to the U.S. or to emerging markets.
HILL: How much of this was political posturing by the Obama Administration through DOJ, to look tough on big banks? You know, they leaked this big number and then they had to back-track on it when it looked like it might topple a major bank. So how much of this is really political posturing?
AVALLONE: Well that's a great question and it's tough to say, but I had the same thoughts because I had a feeling that Merkel was on the phone saying, what are you doing. You're going to not only collapse our economy; it could have a global effect. I mean, Deutsche is a major, global player. So five is a more manageable number. That's why you saw the stocks spike on Friday and at some point politics does come into play.
BARTIROMO: How are you allocating capital right now?
AVALLONE: Well it's been mostly U.S.; we continue to be there. If we are going to be overseas we like merging markets. The demographics in emerging markets are terrific. These countries don't carry the kind of debt we have. So what we would do is, for international exposure, overweight EM and domestically we like the - and we prefer to be domestic.
BARTIROMO: So even though the U.S. economy is sort of slow - we're getting the jobs number out this Friday. Any expectations? I guess the estimate is 170,000 jobs created and the unemployment rate to hold at 4.9-percent. What do markets do in that regard?
AVALLONE: Well, the labor market has been firm and we've had slow wage growth and we expect the jobless claims number to be a good one. It doesn't feel like a great recovery but the reality is the labor market is firming and the consumer is improving. So we expect a good job's number and we think the market continues slightly higher and the chugs along from here.
BARTIROMO: All right, we'll be watching. Mark, thanks so much.
AVALLONE: Pleasure.
BARTIROMO: Mark Avallone there. Coming up, a Navy widow whose husband was killed in 9/11 attack, filing the first lawsuit against Saudi Arabia after Congress gave the green light to do so, but concerns remain over the potential legal fallout for U.S. service members. Plus, Tesla showing no signs of slowing down in the wake of the autopilot troubles. More on what drove the automaker's best quarter ever, next.
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BARTIROMO: Good Monday morning, everybody. Welcome back. I'm Maria Bartiromo. It is Monday, October 3rd. Here are your top stories at 6:30 a.m. on the east coast.
Battleground blitz, Donald Trump will stump for votes in the swing state of Colorado while Hillary Clinton is focused on Ohio with just 36 days until voters head to the polls. Yesterday, Clinton tried to appeal to the black vote.
(BEGIN VIDEO CLIP)
HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: I'm a grandmother and like every grandmother, I worry about the safety and security of my grandchildren, but my worries are not the same as black grandmothers who have different and deeper fears about the world that's their grandchildren face.
(END VIDEO CLIP)
BARTIROMO: Meanwhile, a royal endorsement, Lebron James officially throwing support behind Hillary Clinton, but will it help her with black and millennial voters? We will discuss the power of the king coming up.
Suing Saudi Arabia, September 11th widow files a lawsuit against the country. This coming just days after Congress overrode Obama's veto of the 9/11 bill. The controversy around this coming up.
Plus more (inaudible) for Wells Fargo to report. We will tell you how bank officials apparently ignored an employee petition protesting unrealistic sales goals.
And massive jobs cut for ING, 7,000 positions eliminated. The group's cost saving plan coming up.
Plus the super charge, super hot Honda Civic, we will show why the new Civic is being called absolutely insane.
Futures this morning trading near the flat line to fractionally higher on the session. The Industrial Average, the Dow is expected to open a fraction. It is going to be a quiet day in terms of volume as it is the beginning of the Jewish New Year and we wish our viewers who are observing a peaceful holiday.
In Europe, the FT 100 losing in London is gaining ground. Take a look, up 1.25 percent right now after British Prime Minister Theresa May said that the country plans a hard exit from the European Union. Markets in Germany close for a holiday.
And also holidays overnight in Asia. Mixed action but the market in Shanghai and Korea closed for a holiday. The Nikkei average in Japan up about 1 percent. Hang Seng up 1.25 percent.
A woman whose husband was been killed in the 9/11 attack has filed a lawsuit on Friday against Saudi Arabia. This coming just two days after Congress passed a law to allow Americans to sue foreign governments over their alleged roles in the 9/11 attacks.
Joining us this morning is former congressman and Fox News contributor, Lieutenant Colonel Allen West. Colonel, good to see you. Thank you so much for joining us.
LT. COLONEL ALLEN WEST (RETIRED), FOX NEWS CONTRIBUTOR: Good morning, Maria. How are you?
BARTIROMO: This is the big debate because even on the Republican side, people are questioning whether or not Congress should have overrode that veto, your thoughts on this law being passed?
WEST: Well, first of all, we need to understand this new 21st Century battlefield. We need to come on the side of the American people. When we have states that are out there sponsoring the Islamic terrorism in these type of activities, we need to be able to prosecute those states to the fullest extent.
And I think that when we try to make this insidious moral equivalency statement saying that we have to be concerned the states will go after our soldiers, our soldiers are part of a state.
Our soldiers are protected under Geneva Convention Rights. Our soldiers are out there because we have declared war against an enemy, but when we have states such as Iran, Saudi Arabia or others who are supporting non- state, non-uniform (inaudible) on the battlefield, unlawful enemy combatant they should be open to the full prosecution to a legal extent.
DAGEN MCDOWELL, FOX BUSINESS: Colonel, it's Dagen McDowell. But under current law you can already sue a country that is a state-sponsor of terrorism. That's a designated state sponsor of terror.
And one of the major concerns that I've heard from all corners of the political world is that this law opens up the U.S. to essentially legal liability and basically a hand out to lawyers everywhere in terms of filing suits against the United States.
WEST: Well, one of the problems you have with a country such as Saudi Arabia just the same as you can have with Pakistan or whatever, even though they are not designated as a state sponsor of terrorism, you have entities within some of these countries that are sponsor this terrorism.
We have a serious problem from Saudi Arabia with the Wahhabism and the Wahhabi sect and when we you think about the fact that, I believe, 15 or 16 of the 19, 9/11 conspirators, came out of Saudi Arabia.
Look, I live in South Florida and those individuals bought their airline tickets at Lauderdale by the sea, which farther than the district that I once represented. So they were not there, you know, eating Wheaties and Beanie Winnies, somebody was supporting them
BARTIROMO: I understand. But I mean, is this going to impact the cooperation that we may need from the Saudis when it comes to fighting terrorism? Is this going to impact other lawsuits toward America even if, you know, the American government wasn't involved and it was inadvertent? I mean, does this just open up a whole can of warms? I think that's what the critics of that override are saying.
WEST: Look, I'm going to be very honest. I've never considered the Saudis to be our friends. I think that they have been playing both sides of that coin and I believe that when you look at the Sunni-Islamic terrorist issues that we have, the Saudis has been funnelling money toward this.
Now I think that we need to send a clear message to stop it. We will allow our citizens to go out and prosecute you.
BARTIROMO: All right.
HARLAN HILL, DEMOCRATIC STRATEGIST: Colonel West, HILL Hill here. I'm trying to understand where the American people are coming from on this issue and you have to put it in context, there's 28 pages in the 9/11 report that weren't released because allegedly they contain details that implicate the Saudis.
And so when they are looking at the specific issue, they see at least two different instances of U.S. government trying to protect the Saudis and so what do we do to reassure the American people that that's not the case or is it the case?
WEST: We need to stand on the side of the American people and not believe that relations with a country that has a very troubled past and has clear relations with supporting certain groups of Islamic terrorist.
Look, the Saudis have, you know, really funnelled money to groups such as ISIS, we know that you have Saudi fighters that are part of ISIS, we know that Osama Bin Laden, you know, Saudi prince, you know multimillionaire.
So all of the factors let us know that there's something wrong with the Saudi relationship with Islamic terrorism.
MCDOWELL: Colonel, the fact that a lot of lawmakers now want to go back into this bill and tweak it to make sure that it doesn't open up the United States to lawsuits and create problems on the world stage for us, doesn't that speak to their problems with it?
WEST: See, I guess the problem I'm trying to understand is, you know, if I'm a soldier in a uniform and I am going and deploying in an unauthorized mission from this state, which is a signatory to the Geneva Convention. I don't see how anyone else can come back and try to bring a lawsuit against us.
If we have soldiers, sailors and marines in combat field of operation that do something that is wrong on the battlefield, guess what we do, we prosecute them. Unfortunately, we do have men and women, well, men that are sitting in Fort Leavenworth that were unduly prosecuted for incidents on the battlefield.
BARTIROMO: You make a lot of good points, Colonel. Let me switch gears here because I know you're going to be speaking at Donald Trump's national security and military forum later this morning. What are the problems that are the most important that our viewers need to understand facing our military that you would like to address, what should we expect today?
WEST: Well, first and foremost we need to rebuild our military. We have an army of 1939 levels, World War I level Marine Corps, oldest and smallest fleet for the Air Force. We are not prepared on the 21st Century battlefield to be out there and prosecute against these non-state Islamic terrorists and also state actors so I think that's very important.
We have to do something to reform acquisition and weapon procurement process, we are taking far too long to get quality weapon systems out to the men and women on the battlefield.
ANTHONY SCARAMUCCI, "WALL STREET WEEK" HOST: Colonel, it's SCARAMUCCI Scaramucci. In 1945, we developed a policy of containment and we set a reset in 1989 after the Berlin wall fell. We are still operating off of that post-communist footprint, what would you do, sir, if you're in the Trump administration to reorganize our national security strategy?
WEST: Well, I think one of the most important things, and that's another thing we need to do is to transform that war-fighting strategy. We need to move away from the old Soviet Union, cold-war era for deployed force, and have more of a power projection force.
It's going to hurt my heart to say this, but the mean spot which a country really projects its powers to is maritime forces and not to its land forces such as the Army, and I think that's an important thing we need to be looking to do.
When you consider the greatest nation that the world has ever known for 13, 15 hours could not do anything to rescue Americans under assault in Benghazi, Libya, that tells you that we are not where we should be.
BARTIROMO: All right, we will leave it there. Lt. Colonel, good to see you, sir. Thanks so much.
WEST: A pleasure. Thank you.
BARTIROMO: Allen West joining us. The Fox Business Network will take you live to the vice presidential debate live tomorrow night. Our coverage kicks off at 7:00 p.m. Eastern. Don't miss it. Tomorrow night for the vice presidential debate.
Still to come, new outrage over Wells Fargo's practices, the bank executives now being accused of ignoring a petition from employees to do away with the controversial sales targets which were too aggressive.
Then taking competition to new heights, we will take a look at how the winning human tower in a traditional contest in Spain stacks up to history. Back in a minute.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. We are expecting a higher opening this morning from the broader averages. It's a fractional move, but the Dow Industrials is expected up about 10 points, a big week for economic data. By the way, we have the job's number on Friday.
A couple of names we are watching this morning. Take a look at ING, the company announcing a new round of layoffs, pretty severe, 7,000 job cuts. That amounts to 13 percent of the company's global workforce.
ING looking to cut cost by more than a billion dollars in the next five years. Tesla up nearly 3 percent ahead of the open this morning. The company says it is selling twice as many cars as it was just a year ago.
Tesla providing sales update last night saying it delivered 24,500 vehicles last quarter compared to nearly 12,000 the same time a year ago. More than half of those sales were of the Model S sedans.
Wells Fargo reportedly ignited a big storm when it ignored a petition signed by its workers asking the bank to remove unrealistic sales goals.
Cheryl Casone with the story and the other headlines, this story keeps getting worse, Cheryl?
CHERYL CASONE, FOX BUSINESS: It does, Maria. Here we go again, the "New York Daily News" is reporting that dozens of Wells Fargo employees signed this document years before they opened fake accounts to keep up with targets. They were frustrated and they didn't want to do this type of situation, the type of work at Wells Fargo.
Meanwhile, Hillary Clinton planning to take Wells Fargo to task in her speech today in Ohio over the fake account scandal. She's expected to unveil a plan to make it easier for consumers to take legal action against bad corporate actors. So stock to watch again today, Wells Fargo.
In other headlines, Japanese automaker, Honda, introducing a new performance concept version of the Civic, it's the Type R and it is set to make its first appearance in U.S. next month. This new Civic expected to have a turbo engine with 300 to 345 horse power. That's the range of it anyway, a lot of buzz about this particular and also how cool it looks, there are the pictures for you.
In Spain some more pictures, hundreds go into great heights in the name of a big competition, I mean, tall, teams facing off yesterday in the 26th annual human tower competition.
Some folks scaling as high as 10 tiers, 10 levels of people. Each team has up to 500 people on it that compete over five rounds. They earn points for difficulty and for height, Maria. Obviously on your team the strongest heaviest people were at the bottom. Thank you.
BARTIROMO: That looks really hard and I don't know if anybody would like to compete in that. What about you, SCARAMUCCI?
SCARAMUCCI: I love watching things like that. I don't want anything to do with it, Maria.
BARTIROMO: That's dangerous for the kids, Dagen.
MCDOWELL: You look agile.
SCARAMUCCI: I look agile. You are being very, very kind. The last time I have done something that stupid is when I was 16. I jumped off a 60-foot quarry and my feet (inaudible) --
BARTIROMO: You need strength, but you also need balance, look at that.
MCDOWELL: Let me put it to you this way. Do I look like I was a cheerleader and do I like I'm going to do that? The answer is no and no.
SCARAMUCCI: You did look like a cheerleader to me.
MCDOWELL: No, I do not.
BARTIROMO: I was a cheerleader. I admit it.
MCDOWELL: I don't have the temperament. I don't have a temperament to be a cheerleader.
BARTIROMO: I'm fine. Cheerleading on my sleeve.
Coming up, Lebron James going from the hardwood, why he is with Hillary Clinton, that's next. We'll tell you about it. Stay with us.
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BARTIROMO: Welcome back. Cleveland Cavaliers basketball player, Lebron James, endorsing Hillary Clinton in a business insider op-ed, the Ohio native saying, "I support Hillary Clinton. She will build on the legacy of my good friend, President Barack Obama.
There's still a lot of work to be done in Akron, Ohio and all across our great country, let's register to vote, show up to the polls and vote for Hillary."
HILL, Lebron James painting Clinton as a champion fighting against childhood poverty and for more education opportunities. He's obviously very influential in Ohio. Could this endorsement help Hillary and I think it's really interesting that she's going to help build on my good friend Barack Obama?
HILL: Right. Yes, I think it's telling that one, the "New York Times" said that she's basically pulling out of Ohio, they are writing it off. It's no longer a democratic fire wall.
Two, the Obama coalition is going to stay home this election. That includes millennials and African-Americans --
MCDOWELL: Do you think so?
HILL: Yes, I do. I do.
MCDOWELL: More so on millenials than African-Americans -- millenials, I've read some of the polling numbers on their enthusiasm for her and she's got about half of the percentage of the millennial vote that he did, that's a rough estimate.
HILL: Look, there are 84 million millenials in this country and nobody is really effectively mobilizing them to get out the vote and I'm not sure that the enthusiasm was there to elect Hillary Clinton as there was to elect and re-elect the first African-American president. I'm not convinced the polling is right, though.