Latest on Deadly Storm Path, Plus Devastation After Slamming Haiti; Wells Fargo Scandal is Growing - Part 1



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MARIA BARTIROMO, FOX NEWS: We will bring you there. The latest on deadly storm path plus the devastation after slamming Haiti, coming up this morning. The Wells Fargo scandal is growing, find out how thousands of small business customer's account were also affected.

Plus driving into danger federal safety regulations are probing the Ford F- 150 over complete loss of brakes. And those chip based credit cards have been annoying enough for customers. But they may also prove to be very expensive. Credit card companies are being sued over forcing stores to install chip readers at check out counters. The controversy ahead.

Plus, move over Samsung and Apple, Google is making its way into the market ringing in it's own smart phone with an incredible battery life, seven hours of power and charging for just 15 minutes we will discuss the bells and whistles from Google's phones coming up.

Futures this morning indicating a lower opening for the broader averages, we are looking at some selling this morning concerns of a monetary policy weighing investors around the world. The DOW Industrials expected to open down about 20 points. And in Europe declined across the board the tone was set negative, snapping a 6-day winning streak in the Eurozone down half of percent to three quarters represent on the major averages.

And in Asia overnight, mixed performances there. The market is closed in China for the week as has been the case but the other major averages fractionally moving. All those stories coming up this morning.

And joining me to talk about it Fox Business Network's Dagen McDowell, Recon Capital Chief Investment Officer Kevin Kelly and Fox News Contributor Judy Miller. Great show so far you guys.


BARTIROMO: Speaks for the debate.

KELLY: Yeah.


BARTIROMO: Yeah, (inaudible) that really was the big take away last night. And coming up this morning to talk about it Author of "Defeating Jehad" Dr. Sebastian Gorka is with us. Former Presidential Republican Candidate, Herman Cain is with us. Former German Federal Minister of Defense KT Zu Guttenberg is here and Alabama Senator Jeff Sessions will join us, that will be something to watch. Multimillionaire investor and Trump supporter Foster Friess also joining us.

A lot to come this morning. So do stay with us. We kick it off now this hour in the race for White House, a fiery vice presidential debate last night between governor Mike Pence and Senator Tim Kaine, watch.


MIKE PENCE, REPUBLICAN VICE PRESIDENTIAL CANDIDATE: Donald Trump has built a business through hard times and through good times. He's brought an extraordinary business acumen and, he's employed tens of thousands of people in this country.

TIM KAINE, DEMOCRAT VICE PRESIDENTIAL CANDIDATE: And paid a few taxes and loss a billion dollars a year.

PENCE: For the last 7.5 years we've seen Americas place in the world weakened, we've see an economy stifled by more taxes, more regulation, a war on coal and a failing health care reform come to be known as Obamacare and the American people know that we need to make a change.

KAINE: He stood on the stage last week and when Hillary said you haven't been paying taxes he said, that makes me smart. So it's smart not to pay for our military, it's smart not to pay for veterans, it's not smart not to pay for teachers.

PENCE: He said ours is an insult-driven campaign. If Donald Trump had said all the things that you've said he said in the way you said he said them, he still wouldn't have a fraction of the insults that Hillary Clinton level when she said that half of our supporters were a basket of deplorables. That she said they were irredeemable, they were not America.


BARTIROMO: Joining us this morning is former Hillary Clinton Campaign Senior Advisor Mark Penn also with us on set is Forbes Media Chairman Steve Forbes. Good to see you both. Thank you so much gentlemen. Do you think the V.P. nominees did anything to sway independent voters? Mark you first.

MARK PENN, FMR. HILLARY CLINTON CAMPAIGN ADVISOR: Well, I think independent voters saw a pretty good debate. I think basically Kaine hit the equivalent of a sacrifice fly ball. He went in there. He was going to make the case against Trump. He was going to hit all the anti-Trump statements and he did effectively, but he didn't look as good doing that and I think Pence really had to in some way show that he could do the things that Donald Trump didn't do which was not take the bait all of the time. And I think he did successfully show that as well.

BARTIROMO: Yeah, and he definitely did not take the bait on that. In terms of Kaine, Steve Forbes was that effective all of that interrupting and talking on count of Pence or did it actually take away From him?

STEVE FORBES, FORBES MEDIA CHAIRMAN: Actually took away, he overplayed his hand. I think he took away for what Biden did to Speaker Ryan, now Speaker Ryan in 2012, was he overplayed that hand and so he actually hurt the cause. What people took away from the debate was Pence, calm, cool, collected, did not go down rabbit holes, Kaine snip, snip, snip little dog at the heels, not presidential he hurt himself, he hurt her, he hurt himself and Pence just calmly making the case in foreign policy. This has been a disaster, home, health care, I wish that they had health care more but Pence clearly was the dominant figure, that should people take away the dominant figure.

MCDOWELL: Yeah, I agree with that, but you know, what? Mike Pence actually puts pressure on Donald Trump to perform at a much higher level on Sunday and I'm sure that's not lost on Donald Trump.

FORBES: Well, I think that it goes to show, I think in terms -- they always say vice presidential debates don't matter at the end of the day, but I think what Trump's people are going to hit. Look, Trump makes appointments, he makes cabinet secretaries, keep enormous appointments, you and elsewhere, but what you see here is that his vice presidential pick superb and that's the take away. He's going to have a good team around him. And in terms of prepping on Sunday, I think, I hope the Trump campaign takes away don't go down those rabbit holes and don't take the debate and hit the economy, hit national security and he will do fine.

BARTIROMO: Is that going to be Hillary's strategy on Sunday night, interrupt, and name call and sort of make sure that she points out all the Trump's problems?

PENN: Well and look I don't think it'll be name calling, but I don't think she's going to stay back from really aggressively prosecuting the case against Donald Trump. Two-thirds of American's don't think Donald Trump is qualified, they think he's temperamentally unfit. I think Kaine was making that case, I think Hillary made that case last time. I think she's going to continue to press that case. That's working for her because even though both candidates are not well liked by the American public.

Trump is seen as non acceptable as the presidential choice particularly increasingly with women and I think the Hillary campaign is getting a lot more enthusiasm out of its voters than we were seeing earlier on.

KEVIN KELLY, CHIEF INVESTMENT OFFICER: Hey, Mark, it's Kevin. My question to you is, why isn't resonating in the polls. We've seen time and time again that she's not able to take this election and run with it. And this morning in the journal they have former Bernie Sanders supporters who said she's either going to vote for Hillary Clinton or not vote at all. But distance sway the needle one way or another and then you have Millennials who just don't believe Hillary Clinton. She's pandering to them saying, I am going to give you free education. But they don't believe she can deliver on it, so what can she do to counteract that? Because it's not resonating and all Trump need to do is stay on message and then he could actually take it from her.

PENN: Well, all Trump needs to do is stay on message. Obviously easier said than done .

BARTIROMOL: That's funny, yeah.

PENN: . in this race.

BARTIROMO: You're right.

PENN: So look, I think that she could emphasize, you know, her program on college more, I think -- I think you're you'll see some of the programs for Millennials come out some what more in the next debate. But look, since the last debate I think a snowball in effect has been set off, we have see her increasing in all the polls and while I thought Pence did well, I thought Kaine delivered his message and I don't see this breaking the cycle which has gone against Donald Trump the last week.

BARTIROMO: Yeah, Steve Forbes, let me get your take on the Bernie Sanders supporters, Trump and Clinton are in this war to win undecided, obviously the voters. Senator Bernie Sanders is campaigning on her behalf to convince his supporters to vote for his former rival, but the candidates themselves are taking different approaches to win over dependents, watch this. I want to get your reaction.



DONALD TRUMP, (R) PRESIDENTIAL CANDIDATE: She will put you out of business and she said she will put you out of business. I think she's going to put the money .


TRUMP: . out of control and she was worst than Obama.

HILLARY CLINTON, (D) PRESIDENTIAL CANDIDATE: I know that, you know, people who were thinking about voting for him, right? So I am respectfully asking you to stage an intervention before it's too late.


BARTIROMO: How do you feel about this strategy?

FORBES: Well, this race has always been temperament versus third term and the last week it's been about temperament up to the first debate it was third term. He's got to get it back to one four more years of this, chaos overseas, declining stagnant economy here at home and stick to that.

Yes, Mark was very funny, can he stick to the message, I think Pence has shown him how to do it and think he knows, but if he doesn't score in this debate, it's going to be seen as over and he cannot leave with that impression.

BARTIROMO: Yeah, you make a good point. Because I think he could learn from Mike Pence in that debate last night. We'll see.

JUDY MILLER, FOX NEWS CONTRIBUTOR: Well, if Donald Trump hasn't shown a great for Pence to learn .

FORBES: And you don't have to be a nerd in terms of a policy, you just have to make the point, do we want four more years of this. I've got a good tax proposal. I want to cut taxes, she wants to raise them. You want more chaos on health care she'll give it to you I want to put the patient in charge, just hit those themes and he wins.

BARTIROMO: Yeah. He didn't bring up Bill Clinton's comments. Mark, any thoughts on what Bill Clinton said yesterday or this week about Obamacare, it's a crazy program?

PENN: Well, clearly I think President Clinton walked those comments back a bit, and said look he's strongly supports Obamacare, but clearly -- I think the message .

BARTIROMO: Yeah, and we know natural politics, I mean he said what he said. We know that the walking back is politics.

PENN: That's right but - the message that's come out is that she's open to some revisions of Obamacare and I think that's probably comforting message overall.

BARTIROMO: So you think she is open to revisions even though she said she's going to build on Obama's policies?

PENN: Well, Building on Obama's policies, sort of the amend it don't end it, you know, Pence came out and he's going to completely dismantle it. I don't think Americans want it dismantled I think they want some of the issues that have evolved over time fixed. And I think that's the position she's taking and I think that's a pretty reassuring position for voters out there.

BARTIROMO: All right, we'll leave it there. Mark Penn, Steve Forbes, good to see you both, gentlemen, thank you.

FORBES: Thank you.

BARTIROMO: Don't forget to tune in this Sunday night at 6:00 p.m. eastern for a special coverage of the second presidential debate this is going to be big. It starts at 6:00 p.m. eastern right here on the Fox Business Network. Join us live at 6:00 a.m.

The following morning right here on Mornings with Maria for our post debate analysis. Smartest conversation in the morning. We will see you Monday October 10th as we navigate what we heard the night before at the presidential debate number two.

Hurricane Matthew leaves a trail of devastation across Caribbean. Meanwhile, take a look at the pictures. Now, the massive storm is headed to the United States, the latest on the hurricane's path straight ahead.

And one of Americas most popular cars under investigation, yup, the Ford- 150 safety regulators may be expanding their recall of the Ford F-150 what you need to know next.


BARTIROMO: Welcome back, Hurricane Matthew barreling toward the U.S. and the Bahamas this morning, leaving behind a trail of destruction in Haiti and Cuba. Cheryl Casone has all the details now. Cheryl.

CHERYL CASONE, FOX NEWS: Yeah, we're looking at the newest details this morning on Matthew. This is a category 3 storm already responsible for at least 11 deaths across the Caribbean. Five of those are in Haiti, there's your live weather map. That number though expected to grow, we should say as the hurricane makes its way toward the United States.

Now the storm made landfall yesterday in Haiti packing 140-mile per hour winds and pounding rain, Matthew washed out a key bridge in Haiti and left roads completely under water. That western tip of the island is in the dark this morning so there's no word yet on deaths or injuries. The sun just now coming up in Haiti. No immediate reports of any serious damage in Cuba but the Guantanamo province we should say is taking a serious pounding right now from the reports that we're seeing.

And here are the United States, empty shelves and long gas station lines are being reported this morning across the southeast as coastal communities prepare to flee hurricane Matthew, South Carolina Governor Nikki Haley plans to issue an evacuation order today to give a million residents time to leave the coast before the storm arrives. And then In Florida, Governor Rick Scott urged families along the coast to prepare for a direct hit and gather three day's worth of supplies.

Well, in business headlines this morning, The Wells Fargo account scandal apparently is going beyond the consumer. According to letter seen by Reuters, Senator David Vitter told Wells the CEO John Stumpf that thousands of small business owners were also affected by the banks practices, his committee, the small business committee wants more information now, Vitter says that he wants a full accounting a small business owners affected by the fraudulent activity at Wells. Sources put the number around 10,000 businesses there's been no comment as of yet from Wells Fargo.

And the government launching an investigation into complaints of brake problems in Ford F-150 pickup trucks specifically complete brake failure in some instances. They're investigating 2015 and 2016 model year F-150's that has specifically a 3.5 litter engine. The F-150 the best-selling vehicle in North America, the national highway traffic safety administration says there's been 25 consumer complaints so far.

And a judge is giving small businesses the green light to sue the country's biggest credit card companies for being forced to install those chip readers at the checkout counter, business owners claim that the upgrade is expensive and that these machines do not reduce fraud and they don't eliminate it either, they're penalized by the credit card companies if they don't upgrade because that's a pay up whenever a shopper uses a stolen credit card. The banks used to pay it and now the business has to.

Well, the lawsuit seeks an estimated $6 billion, Maria, this is American express, Visa, Mastercard, Discover, this lawsuit we want to be clear, though, does not yet have class action status. If it does, that's a game changer for the banks. Back to you.

BARTIROMO: All right Cheryl, well watch that. Thank you. Coming up, sparring over the war on terror. Mike Pence and Tim Kaine go head to head over their running mate's fitness to be commander-in-chief.

Plus Google hopes to give Apple and Samsung a run for their money, with its new smart phone, the lightning fast charging speed of the new Google pixel phones, we'll tell you about it next.

On the next Hannity (ph) the dust settles from the Vice presidential debate and I'm going to talk to Libertarian V.P. Candidate Bill Weld who is lost at tune in for that.


BARTIROMO: Welcome back, both Governor Mike Pence and Senator Tim Kaine addressing foreign policy in last night's vice presidential debate. Pence's touch on brining Osama bin Laden to justice, but that there is a threat that needs to be dealt with today.


PENCE: We all lived through that day as a nation. It was heart-breaking. And I want to give this president credit for bringing Osama bin Laden to justice.

But the truth is, Osama bin Laden led Al Qaida. Our primary threat today is ISIS.

KAINE: He doesn't want to acknowledge that we stopped the Iranian nuclear weapon's program. He doesn't want to acknowledge.

PENCE: We didn't.

KAINE: . that Hillary was part of the team that got bin Laden. He doesn't want to acknowledge .

PENCE: I just did.

KAINE: . that it's a good thing, not a bad thing.


BARTIROMO: Joining me right now is the professor of strategy and irregular warfare at The Institute of World Politics and the author of "Defeating Jihad", Dr. Sebastian Gorka with us. Dr. Gorka, good to see you.


BARTIROMO: So your reaction to the debate?

GORKA: I think Hillary has a problem in her choice of V.P. That's the first kind of proto-executive decision of somebody running for president. Hillary showed that she picked somebody who's rude, obnoxious, a fabulous makes things up again and again and Mr. Trump showed somebody who is cool, calm and collected and has control of the facts. This was not a good night for team Hillary.

BARTIROMO: Well, I know what you mean about the rude because Tim Kaine did interrupt a lot and that was the strategy to stop Pence in his tracks on what he was saying. What did he make up? When you're saying he made stuff up.

GORKA: Well, if you look at the way he distorted the quotes about what Mr. Trump had said, you know, all Mexicans are rapists.


GORKA: I mean, this is just absurd, this is arguing a straw man and he did it all night. And then when he says things like, "Well, you know, we killed bin Laden." No, you didn't, no, you didn't the SEALs killed Osama bin Laden and whoever had been president whether it was Republican or Democrat would have given the go order once we found him.

And the fact is they may have killed bin Laden under Obama administration, but now we have ISIS. And ISIS is many times more dangerous than Al-Qaeda. So even when he talked about factual events the spin was just fallacious, Maria.

BARTIROMO: And I got you. OK, I understand. Dagen?

MCDOWELL: Well, Tim Kaine interrupted Mike Pence a lot Sebastian. But if you're going to talk about like bloviating and like someone's temperament. I mean that's the central criticism of Donald Trump. So, I don't know how that disqualifies Tim Kaine from being the running mate of Hillary Clinton, did he put in a good performance, no. Was he rude, yes, and did he say things that weren't true, absolutely yes. He asserted that I think that the military leadership in Israel likes the Iran deal and backs the Iran deal which is probably absurd.

GORKA: Right.

BARTIROMO: Ridiculous.

GORKA: Totally absurd. And as I was on social media last night there were people who were not national security experts there were instantly say fact checking, this is wrong. Benjamin Netanyahu reject that version of events and there's so much that you Google it than you know it's false.

So that the point here is, we have two candidates. Let's be honest, two candidates that have negative figures that we've never seen before in a presidential run, so they both unpopular. What happened last night? One of the unpopular teams showed a vice presidential candidate that made them look even more unpopular. So the fact is what has to be addressed, the issue of popularity was addressed by one side last night and it wasn't the Hillary Camp.

MILLER: I know, I want to ask you Dr. Gorka. I mean, really isn't the whole point of what Tim Kaine was doing last night to remind voters of all of the really off-the-chart things that Donald Trump has said about Vladimir Putin, foreign policy about lose snoops about how old these other countries ought to have nuclear weapons, wouldn't it better. Alliances don't matter, wasn't that really what he was doing last night?

BARTIROMO: That was his strategy?

MILLER: Isn't that the strategy.

GORKA: Yeah, absolutely. Clearly it was the strategy, but when you do the math and somebody did the math this morning, he interrupted Governor Pence every one and a half minutes. So you can have a strategy but you got to execute it properly. And it was shambolic execution of the strategy. If the points was to score points against Governor Pence's boss, it totally failed because all it did is made Kaine look like an aggressive individual who's unsympathetic, who's working for somebody. We already know that is unsympathetic. So yes, clearly that was a strategy very, very badly executed.

BARTIROMO: I don't think people are not going the like that. I think people are on to that. They don't, you know, anytime for example Pence want to explain the Iran deal and what was wrong with the Iran deal. Kaine got in his face and started interrupting. So we didn't hear him finish his thought. I think people are angry by that. They we wanted to hear policy and substance.

KELLY: Yes, it's ashamed because Tim Kaine actually dismissed the moderator the entire -- the entire debate. But I think when the overarching things that we wanted to get clarity on is n top of several brought up numerous time were Russia, North Korea and because he kept going back to taxes, foundations, things like that, we couldn't get some real substance from the Clinton campaign on how they would address those issues.

BARTIROMO: Well, what about that Dr. Gorka, last hour we did talk about the tensions with Russia especially as it relates to Syria. And this morning Senator John McCain wrote an op-ed on the journal saying that we need to stop Assad now or face years of war. Both candidates touch on the policies regarding Syrian refugees last night.

Listen to this. I want to get your reaction to Syria.


PENCE: Donald Trump and I are committed to suspending the Syrian refugee program.

KAINE: . that refugees based on whether they're dangerous or not. We won't do it based on discriminating against you from the country you come from.

PENCE: You've got to err on the side of the safety and security of the American people, Senator.


BARTIROMO: Dr. Gorka, what do you think? I mean, Russia should not be even be involved in this conflict. They inserted themselves and now Russia is defending Assad even though everybody wants Assad to be taken down.

GORKA: Look, Assad is a bad man. He's not as bad as his father but he's a vicious, vicious autocrat. But the fact of the geopolitical situation are the following, he enjoys the support of both Iran and Russia. So this article of faith that the White House has been trying to run down our throats fro five years, that there is no solution to Syria unless Assad goes.

What does that mean? Does that mean the White House is prepared to go to war with Russia to get rid of Assad? We need to have a dose of reality come out of the White House and I think that's what you saw from Governor Pence yesterday. This isn't about people you don't like or people you like, it's about what's the reality on the ground and the safe haven, the safe zones is a far more realistic proposal than anything else that is coming out of the White House, with the Hillary campaign.

MILLER: Oh, no wait a minute. The safe zone is a Hillary's idea that she promoted and Barack Obama rejected two years ago. That was her original position. She's always wanted to do more. And in fact did not Mike Pence adopt the safe zone policy last night, did she not say it was Donald Trump's policy?

BARTIROMO: But how do we know she's always wanted to do more Judy?

MILLER: Well, because .

BARTIROMO: She's the secretary of state under Obama and we know what Obama has done. He's allowed Russia to walk all over us. And insert himself into the war in Syria. So how do we know Hillary wanted something different?

MILLER: I think we know from the reporting of what happened when David Petraeus, when the CIA director one of the military, when Hillary Clinton all wanted to arming the rebels, create safe zones, Barack Obama shutting it down. Now that's her problem. She's got to separate herself from that part of .

BARTIROMO: She's not separating herself Judy. That she's going to build on Obama's policy.

GORKA: She cannot separate herself because she was a member of the cabinet that actually instigated our disastrous Syria policy. The red line rhetoric was under Secretary Clinton's mandate. The idea that suddenly things are going to change, the chaos in Syria is in part result of her secretary of state tenure under the Obama administration. Those are just facts.

BARTIROMO: Yeah. Dr. Gorka, Good to see you, thank you so much. Dr. Sebastian Gorka there.

GORKA: Thanks Maria.

BARTIROMO: We'll see you soon, sir.

Coming up, Donald Trump was not on the debate stage last night but the tax returns made appearance, that's for sure. How Mike Pence's defense act against Tim Kaine's criticism, that's next.

And then Target gives itself a makeover. They try to appeal to younger shoppers. How the big box retailer is betting on millennials. Back in a minute.


MARIA BARTIROMO, FBN ANCHOR: Good Wednesday morning, everybody; welcome back. I am Maria Bartiromo; it is Wednesday, October 5th. We are glad you're with us. Here are your top stories, 7:30 a.m. on the East Coast: a fiery face-off last night. Mike Pence and Tim Kaine clashing at their first and only vice presidential debate last night in Virginia. They focused on a number of issues, including jobs and the economy.


GOV. MIKE PENCE (R-IN): The truth of the matter is the policies of this administration, which Hillary Clinton and Senator Kaine want to continue, have run this economy into a ditch.

SEN. TIM KAINE (D-VA): Independent analysts say the Clinton plan would grow the economy by 10.5 million jobs, the Trump plan would cost 3.5 million jobs. Donald Trump, why would he do this? Because his tax plan basically helps him --


BARTIROMO: So did the VP candidates make their cases for their running mates? We will talk about it coming up, as well as social media and its reaction. Donald Trump and Hillary Clinton hitting the campaign trail again today, meanwhile. Trump is in Nevada; Clinton fundraising in Washington D.C.