MARIA-00
Undecided Voters; House Speaker Paul Ryan Stops Short of Pulling His
Endorsement for Trump; Hacking Threat of Apple Watch has British
Parliament on High Alert; Disappointing Earnings Report from Alcoa; Is
WikiLeaks Influencing the Election? - Part 5>
McDowell, Cheryl Casone, Anthony Scaramucci, Lea Gabrielle >
Donald Trump; Hillary Clinton; Florida; Paul Ryan; John Podesta; Terrorism;
Britain; Samsung; Apple; Alcoa; Al Gore; RealClearPolitics; Fraggle Rock;
ISIS; Wells Fargo >
SCARAMUCCI: No, listen. I don't want to say anything. I mean I think that there's an opportunity to galvanize this. Dagen saying the base isn't big enough and we'll have to see what happens on November the eighth.
But I guess my last question for Tom release from me personally is what do you think the future of the Republican Party looks like? Is it the jellyfish Republicans or is it -- is there some kind of new Republican Party that emerges here no matter what happens in the election?
BEVAN: That's a great question. It's one of the fascinating questions. I mean win or lose, but particularly lose, if Trump loses, you know, what happens to the Republican Party because his supporters who are in the tens of millions of folks around the country they're not just going away and the Republican Party is going to figure out -- have to figure out, you know, they're going to need those folks and they're going to have to figure out how they're going to be able to bridge the gap between those people, having them in the party and, you know, the establishment who those people hate the establishment. It's a real schism and it's one that's probably likely to last well beyond November.
ORTAGUS: Could it be a nasty civil war, Anthony? But I don't think its better.
SCARAMUCCI: Listen, it's already is. It's already been, you know, that the fight has already started.
MCDOWELL: I could back up what I was saying about the base not being big enough, because he needs to win Pennsylvania. Donald Trump has to carry all the Romney states including North Carolina and then he has to win Ohio, Florida, Iowa and Nevada, that only gets him to 265. That's not even at the elect -- at 270. He's got to win Pennsylvania and her lead has widened in that state since the first debate. That's why.
SCARAMUCCI: Of likely voters. And so as you and I have talked about in the past, if he can turn out a lot of this registered white voters that didn't vote in 2012, then that would be a game-changer in Pennsylvania. I didn't say it was likely. But that's the strategy at least.
MCDOWELL: But that goes back to North Carolina, Nevada, Iowa. He's got to win those all of those states in addition to Pennsylvania. That's why -- because I'm trying to be not subjective, but objective.
BARTIROMO: But the numbers are the numbers.
MCDOWELL: The numbers are the numbers.
SCARAMUCCI: Hard to argue with the numbers.
BARTIROMO: Tom, good to see you. Thank you so much, Sir.
BEVAN: You bet. Thanks for having me.
BARTIROMO: We'll see you soon Tom Bevan there. Fox Business Network will take you live to the third presidential debate next week moderated by Fox News' Chris Wallace.
Our special prime time coverage kicks off at 6:00 p.m. Eastern on October 19th. We will have special coverage there and then, of course, "Mornings with Maria" will be live from Las Vegas on October 19th and the 20th from 6:00 to 9:00 a.m. Eastern, so join us for our special coverage next week around that final an critical debate.
Coming up, crisis everted for students in Chicago after its Teachers Union reached the deal overnight to avoid a strike. More on what's next are the cash-strapped (ph) city straight ahead. And then more shady practices at Wells Fargo, apparently, new details on how the bank's managers were pushing staff to sign customers up for expensive services they did not need. Back in a minute.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. Class is still in session for Chicago students today after teachers struck an 11th hour deal on a new contract overnight. Here is Cheryl Casone with the headline. Cheryl?
CHERYL CASONE, FOX NEWS ANCHOR: Yeah, Maria. Late night with just minutes to spare the nation's third largest school district of (inaudible) would have been at second major strike since 2012. The Chicago Teachers' Union president says after more than a year of negotiations, both sides hammered on agreement that works for students, teachers and the city.
It could take weeks to fully approve the deal, but schools are going to hold class this morning. Chicago's mayor said the proposal ensures that teachers are "appropriately rewarded."
Well, more problems for Wells Fargo this morning. The company under fire amid new claims from former employees that managers pushed bankers to sign customers up for expensive overdraft protection. A lot of these cases customers didn't need the pricey service or even realized they were getting it.
Lawmakers expressed concerns about the bank's overdraft issues during last months hearing over the bank's widespread practices of opening fake accounts under customer's names.
And finally this oil prices are near a one-year high this morning. Look at this, worth 50.88, right now. Small loss, but this is because of Russia's agreement to back the OPEC production freeze. Russian President Vladimir Putin voices his support to car (ph) petroleum output yesterday.
The International Energy Agency says that oil supply and demand could come back to balance earlier than expected next year if the agreement to curve output is implemented. Remember, Russia pumps more crude oil than any other country and Putin said yesterday that reducing production is the only way to save the stability of the energy sector, Maria.
So the IEA expects the oil surplus to last in the late 20017. Remember when oil was 140, not saying it's going there, but this is the first gain we've seen in the contract in a long time.
BARTIROMO: Yeah, it sure is. I mean, I was surprise to turn around and see to 51. All right, thank you, Cheryl.
Still to come in this billionaires war on words on the campaign trial, how Warren Buffett pushes back on Trump. He is using his own tax returns to stood (ph) for Hillary Clinton, that's next.
Plus, Samsung permanently holding production of the Galaxy Note 7 phones. It is fighting another legal battle with Apple. The stakes in smartphone wars keep heating up. Back in a minute.
(COMMERCIAL BREAK)
BARTIROMO: Hillary Clinton firing back this morning at Donald Trump over his tax claims made during Sunday night's debates. Listen.
(BEGIN VIDEO CLIP)
CLINTON: I believe that every single one of us in this room today has paid more in federal income taxes than Donald Trump has.
He tried to drag Warren Buffett in it, remember that? It was like "Oh, yeah, well, maybe I've never paid income tax and maybe somebody else hasn't either," and he mentioned Warren Buffett. Well for starters, Warren Buffett is a real billionaire.
(END VIDEO CLIP)
BARTIROMO: Actually, Warren Buffett did issue a statement after that. He condemned Trump's claims over his tax payment saying, "I have paid federal income tax every year since 1944 when I was 13. Though, being a slow starter, I owed only $7 in tax that year. I have copies of all 72 of my returns and none uses a carry forward.
Finally, I have been audited by the IRS multiple times, in fact, I am currently being audited. I have no problem in releasing my tax information while under audit. Neither would Mr. Trump, at least he would have no legal problem."
Warren Buffett comes out swinging, Anthony Scaramucci. I mean, you knew he was with Hillary anyway.
SCARAMUCCI: Listen, I'm a huge fan of his investing and his intellectual prowess as an investor. I am not a fan of his hypocrisy, because when he's leaving out of his press release is that he used net operating losses through the entire time of his life through birth or halfway.
But he's also leaving out that he figured out a way to bundle his entire life savings into that instrument, which is absolutely brilliant, Maria. He takes a very small salary for himself like $100,000. That income he's talking about is derived from dividends and so forth.
But for him to say that he hasn't worked his entire life to minimize his taxes relative to the United States government and to go after Mr. Trump this morning like that is the height of hypocrisy, but I know that the liberal elite are applauding him and so are the jellyfish Republicans.
BARTIROMO: There he is with Liz Claman.
SCARAMUCCI: So there we are once again in this circuit at the top, this interlocking director at the top that the rest of the United States, the rest of the American people feel left out and disenfranchise.
BARTIROMO: I do agree that its hypocrisy, but he constantly go and talking about the secretary. "Oh, I pay, you know, lower tax less than my secretary." Of course, you do. You're not really putting -- you're not getting a lot of income. I mean, you just said $100,000 income. Your income is capital gain. So yes, that's why you're paying a lower tax rate than your secretary.
SCARAMUCCI: Which is -- it's just more misinformation.
BARTIROMO: Right.
MCDOWELL: I just always find that laughable when people who have made their millions and made their billions then after the fact he's advocating. I mean, his proposal on the 30 percent minimum tax on people making more than a million to $2 million a year .
BARTIROMO: The Buffett Rule.
MCDOWELL: The Buffett Rule is in her tax plan. That is -- she fully embraced the Buffett Rule and I always find that just hideous quite frankly when these people have made their money and then they're like, "OK, now you need to pay 30 percent."
ORTAGUS: Well, the line that really struck me about Hillary Clinton spoke yesterday saying that Buffett was a real billionaire. It was interesting that that was her choice of words because as far as I can tell she's never held a real private sector job. Maybe, I think she maybe was an attorney before Bill Clinton became governor for a bit.
But she's done nothing to create -- in a personal capacity, she's done nothing to create jobs, to build anything, to create anything. So it's kind of fresh when these Democrats to make, you know, hundreds of thousands of dollars after giving speeches but they were never released to the public and will criticize people who have made jobs.
SCARAMUCCI: It's another example though of what people are upset of that. $250million made no product, no service .
BARTIROMO: In a government job.
SCARAMUCCI: . no product, no service, no risk-taking.
BARTIROMO: Anthony, let's try that.
(CROSSTALK)
MCDOWELL: It's beyond that. It's making money off at the backs of the American people essentially and using her role in an office where she's there to serve American citizens and the people who live in this country. She is basically stepping on them and abusing that power to enrich herself and her family both in purse and in power.
ORTAGUS: So think about of how flagrant it is, Dagen. She did this knowing that she was going to run for office. So a lot of people being incredibly careful, I'm going to run for the presidency, I'm going to be careful of my business dealings. She did all of these speeches, went to Goldman, did all of this, again, sort of like willfully throwing it in everyone's face that I'm going to run for office and I'm still going to get away with it.
MCDOWELL: She actually said I wasn't running for the presidency when I gave those speeches. You've been running the last 30 -- within years.
BARTIROMO: Well, look, let's .
MCDOWELL: Right? I mean, she's -- why do you think she tolerated Bill all of those years, because she knew that he's affable and charming and if he could get elected, she could use that busted marriage as a steppingstone.
(CROSSTALK)
BARTIROMO: It was a good strategy of Trump during the debate to talk about the fact that her people got subpoenas and then after they got the subpoena they went ahead and destroyed evidence. I mean, that is against the law.
SCARAMUCCI: So let me ask you a question because .
BARTIROMO: Then I want to ask you a question (inaudible).
SCARAMUCCI: . I'm probably bias and probably not equipped to answer it. So we have the sex tape or the allegations and then you have the preponderance of evidence that he presented to the American people related to her and if you were the scales of justice, where the weights go to the sex tape? Is that correct?
BARTIROMO: It's so ugly, Anthony.
SCARAMUCCI: Well not. I'm asking the question. So at the end of the day, short of a homicide in the WikiLeaks that tape is going to outweigh all of those allegations .
BARTIROMO: It shouldn't. It shouldn't
MCDOWELL: Anthony, you act like that this is something that came out in a vacuum. This is his personality and people who could have tolerated maybe some mean tweets and being nasty to Carly Fiorina and Ted Cruz's wife. This is beyond the pail, though. That's why .
(CROSSTALK)
SCARAMUCCI: This is a very big lesson for political candidates about their level of decorum and the way they handle themselves because if we are looking at it like lawyers would look at it, the preponderance of the evidence is against her yet the ad hominem attack against him because of the decorum is going to outweigh the preponderance of the evidence. That's all I'm saying.
BARTIROMO: Don't forget the backdrop. Don't forget the backdrop.
SCARAMUCCI: I'm not defending .
BARTIROMO: You have to include the backdrop and the backdrop is the mainstream media is going to look at it that way, yeah. And they're going to make sure to pronounce the tape. And they are fighting and they are defending Hillary, so that's the backdrop.
SCARAMUCCI: Making a cultural observation, I'm not defending it.
MCDOWELL: The Republicans made it about character when Bill Clinton got caught in the office with Monica Lewinsky, so now their candidate has to be held at the same standard.
SCARAMUCCI: I don't disagree with anything. I'm just .
BARTIROMO: OK, having said that there was no surprise that Donald Trump speaks this way in private or anybody else. It's not that anybody was shocked by this.
MCDOWELL: Exactly. That I agree with the jellyfish thing because it's like you knew what it was like and now you turn.
SCARAMUCCI: I'm going to start using spineless. I've got to change, change it up.
ORTAGUS: You're getting the civil war started, Anthony.
SCARAMUCCI: Me?
BARTIMORO: We will get to earning this morning. We are beginning the third quarter earning season folks. Alcoa is going to be reporting and that is the one we're going to watch because the third quarter is coming up this week, the banks on Friday, so we'll talk about that.
Still to come, a new U.N. warning with scary consequences had terrorists maybe plotting to hack into nuclear power plant in Europe. And then Fiat- Chrysler promising to spend $300million in 11th hour deal with union workers, expect those details coming up. Stay with us
(COMMERCIAL BREAK)
BARTIROMO: Good morning, everybody. Thanks so much for joining us. Happy Tuesday. I'm Maria Bartiromo. It is Tuesday, October 11th, your top stories right now at 6:30 a.m. on the east coast.
Less than 30 days until Election Day, Donald Trump and Hillary Clinton fighting for every undecided vote out there. On the campaign trail, the two launched attacks on each other yesterday on the foreign policy and national security records.
(BEGIN VIDEO CLIP)
DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: Let me tell you, terrorism is a big threat. We are riding into something that's very dangerous and she's allowing thousands and thousands of people to come into this country and I will tell you something it's the great Trojan horse. And we don't want to be part.
HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: On the day that I was in the situation room watching the raid that brought Osama Bin Laden to justice, he was hosting "Celebrity Apprentice."
(END VIDEO CLIP)
BARTIROMO: We have the very latest on the race for the White House coming up.
The threat of ISIS going nuclear, the new warning from the United Nations this morning that has power plants on high alerts, the startling details coming up.
Heavy rains from Hurricane Matthew leading to dangerous flooding in North Carolina, meanwhile. Thousands under threat as dam may be at risk of failing.
Samsung discontinuing its Galaxy Note 7 phone, the latest in the company's ongoing crisis. Plus Samsung heads to the Supreme Court today in its patent battle with Apple. We will tell you about it.
Theranos investors says they want their money back, the "Wall Street Journal" reporting one of the company's biggest backers is suing over series of lies, how much money at stake coming up.
Is there still hope for Twitter, the stock rising on a report that sales force may still be considering an acquisition.
Broader markets looking like this. We are expecting a lower opening from the broader averages today. We are off of the lows, nonetheless, it is the beginning of the third-quarter earnings season. That's going to drive markets in the next couple of weeks. The Dow Industrials expected to open down 20 points this morning.
In Europe, markets are higher. Take a look, the British pound got slammed again overnight. A report from the Britain's exit from the European Union could cost more than $20 million per year in tax revenue sent the British pound falling and stocks rising in Europe.
In Asia overnight, mixed performances. Take a look, Shanghai and the Nikkei up. Hang Seng and Kospi down.
An ISIS nuclear threat, the U.N. warning that jihadists are plotting to target power plants across Europe. This after learning that a nuclear plant was targeted two years ago. However that attack was disrupted by a militant cyber-attack.
I want to bring in retired four star general and Fox News military analyst, General Jack Keane. General, good to see you. Thank you so much for joining us.
RETIRED GENERAL JACK KEANE, FOX NEWS MILITARY ANALYST: Good to be here, Maria.
BARTIROMO: How concerned are you about this warning?
KEANE: Well, we have always been concerned about nuclear terrorism and the idea that somebody could radicalized who is working inside a plant as an insider and doing something or actually possibly blowing up a plant.
For ISIS to have the capability to blow up a nuclear power plant, that is probably slim to none. Even an insider threat it's very rare for someone by themselves to be able to cause a meltdown because there's so much of a team effort inside a nuclear power plant.
People would be observed. However, cyber terrorism dealing with nuclear power plant, that is an issue because their cyber capability is growing. I think that's really what has people concerned.
BARTIROMO: Right. And so they are admitting that a nuclear power plant was already disrupted by a cyber-attack.
KEANE: Yes, that's true. That occurred in Belgium and there's been other attempts --
BARTIROMO: Two years ago.
KEANE: Correct, right. We've always been concerned about the cyber capability of terrorists. Think of this, in the United States, our critical infrastructure, financial banking, utility infrastructure, our transportation system, they are vulnerable to sophisticated cyber-attack that our adversary countries have, Russia, China, to name two.
The concern that we have always had, what happens if the terrorist get the hands on that capability or buy it from the Russians because half of the Russian cyber-attack capability is criminal. That's a concern.
As terrorist get more sophisticated they're going to move more and more to cyber capability.
BARTIROMO: Of course, they will try to do anything they can. And the International Atomic Energy Agency head revealed that a terrorist had once tried to smuggle highly enriched uranium out of a power plant to build a dirty bomb.
Let me move on to this other story. We talked about this the other day. Iranian-backed Houthi rebels firing two missiles at a U.S. Navy Destroyer. What do you make of this? Should we be firing back over this? What is the response? Why didn't we attack in response?
KEANE: Well, this is Iran. Iran is backing the Houthi rebels, trying to take-over the country in Yemen. They obviously top of the government. They forced us to withdraw our special operations base from Yemen. They forced us to withdraw our embassy, which we closed last year as well.
BARTIROMO: Wow.
KEANE: What they want is a port, what the Iranians want is a port right there in the Southern Yemen so they can actually begin to control access from the Suez Canal, much as they have some influence in the gulf at the Straits of Hormuz.
So this is a strategic issue for the Iranians, what we should be doing, obviously, is what you already suggested. If we know who fired these missiles, let's do something about it.
Our problem in the Middle East dealing with Iran is we have hands off for years, Democrats and Republicans, Iranians used their proxies to gain strategic advantage and leverage in the Middle East.
And we rarely ever respond, going all the way back to 80's with President Ronald Reagan all the way to the present. Yes, if we have accurate intelligence, we should do something about it.
BARTIROMO: Why do we rarely respond and at the same time sort of on the one hand we know that they're an enemy and on the other hand we are doing this nuclear deal with them?
KEANE: Yes.
BARTIROMO: I don't even understand.
KEANE: You're right. When we sat down to do the nuclear deal one of the things that we had talked about was Iranians adventurism in the Middle East. Their sponsoring of terrorism trying to take over the Middle East. They say that's their objective.
We wanted to discuss that. The Iranians said no and they wouldn't come to the table if that was going to be a discussion item. What did we do? We walked away. We went forward and made a lousy deal on top of it.
BARTIROMO: It's so questionable, General. It's so questionable. Let me ask you about ISIS. Apparently the last nine months, we are looking at reports that ISIS has reportedly lost 16 percent of its territory.
So the U.S. is winning, U.S.-led coalition airstrikes and ground fighting are actually winning there. It comes ahead of a planned assault on Mosul, the terrorists' biggest stronghold in Iraq. What is the next step in taking down ISIS? And do you believe that to be true that they are losing ground?
KEANE: Oh, yes, they are definitely losing ground and the strategy that we had as slow as it's been and critical as myself and others have been we are finally taking back the lost territory that took place in Iraq beginning in January 2014.
BARTIROMO: What changed? Why are we taking it?
KEANE: We were able to build up enough forces, enough combat power to overwhelm ISIS. That took some time because the Iraqi army was decimated as we saw on television back in 2014. Now they've got that combat power.
Not just that but also the Shea militia, some of it backed by the Iranians who are considerable forces, and we have seen from the beginning the Peshmerga, the Kurds, they've been good fighters.
Put the three of them together, they'll dominate Mosul in the next number of weeks. You'll see whether ISIS fights or not remains to be seen, but they have been doing since they lost so many fighters in Syria, they normally put up a little bit of a fight and pulled their fighters out of there.
But, yes, Iraq will be retaken, huge political issues in Iraq and huge disagreements in Iraq. There's a lot of work to be done there politically in terms of unity even after ISIS goes.
But ISIS is still sitting on a stronghold in Syria from which it conducts its worldwide and global operations. That has got to be destroyed. We do not have any immediate plans to destroy it.
BARTIROMO: Because you're also looking at a situation that's changed because if you look to destroy and take down Syria, you're getting in Russia's hair.
KEANE: Yes.
BARTIROMO: Isn't that true?
KEANE: That's part of the problem, but we can deal with ISIS without interfering with Russia.
BARTIROMO: Yes.
KEANE: I've never thought we should be working with the Russians, you know, cooperating over ISIS because the Russians are committing genocide and war crimes in Syria in backing the Assad regime.
BARTIROMO: Exactly.
KEANE: It's well documented and we should not be working with them.
BARTIROMO: They inserted themselves. The Russians completely inserted themselves. General, always a pleasure to have you, thank you so much. General Jack Keane there.
Coming up, 1,500 people stranded in North Carolina in the wake of devastating flooding caused by Hurricane Matthew. The aftermath of the deadly storm next.
And then Twitter trending again with investors, reports say Salesforce may be still in the running as a bidder, the search for the buyer, coming up.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. We are expecting a lower opening for the broader averages today. Take a look at markets here. Dow Industrials expected to be down 20 points.
It's the beginning of earnings season. We are going to hear from a number of companies for the third quarter business that will drive the activity.
A couple of names we are watching this morning, shares of Fiat Chrysler, the automaker reaching a tentative deal with a Canadian auto workers union to avert a strike. The deal including raises for workers and new investments in an Ontario plant.
Tyson Foods, one to watch, the company taking a 5 percent stake in beyond meat, the start-up aims to reduce meat consumption by creating plant-based burger patties with the same taste. The price tag on the deal not disclosed.
The death toll from Hurricane Matthew is still climbing as North Carolina braces for another round of flooding from overflowing rivers. Cheryl Casone with the details now -- Cheryl.
CHERYL CASONE, FOX BUSINESS: This just isn't ending, Maria, that storm is now responsible for at least 26 deaths across North Carolina, South Carolina, Georgia and Florida including at least 10 in North Carolina.
A levy in the small town of Lumberton failed yesterday stranding 1,500 people in their homes. Emergency crews spent the day rescuing families trapped by the rising waters, several rivers across the area expected to crest throughout the day today. So the story and the trouble continuing in the south east.
Well, more trouble for Theranos, the "Wall Street Journal" says a hedge fund, Partner Fund Management is suing. The blood testing company and its founder, Elizabeth Holmes. The lawsuit accuses Theranos of lying to attract an investment of nearly $100 million.
The start-up has been under scrutiny after the "Journal" published stories that cast doubt on Theranos' blood technology. A spokesman for the company saying the suit is without merit. Theranos is going to fight it vigorously.
Hashtag #notsofast, Salesforce, the latest company pulling back its interest in buying Twitter. Shares of Twitter dropped yesterday amid concerns that Sales Force is re-evaluating a purchase.
Salesforce reportedly going to reconsider its bid if Twitter's price comes down. We just showed the stock in the premarket, this stock lost 31 percent since Thursday. Wiped out about 5 billion in market cap, Maria.