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MCDOWELL: She wants to raise capital gains taxes the kind of the mid-rates back to where they were in the 70's.
SPALLANZANI: If we look historically Democratic presidential candidates and administration, the market does better than Republicans for whatever reason you want to say, right. So whether they're coming off a very low base and then higher --
BARTIROMO: You had the Reagan boom.
SPALLANZANI: Yes, we had Reagan boom, but we had Clinton -- you know, I'm talking about historically since --
CARTER: Why is that?
SPALLANZANI: It's a combination. Like I said it could have been that the market was already down one thing, it could be also the fact that, you know, depending on when you take office whether it's a split house, if you have Congress, if you don't, you know, what do you say about Bill Clinton, he was able to get both sides together, right?
He had Gingrich and Republicans and contract with America, but he was able to get bipartisan things through. I think Hillary probably may also have that ability to bring people together. Obviously for the last eight years we've had nothing but divisiveness, right, and it really comes from the top.
The president has to get people in the room. So Trump -- that's the art of the deal, the whole thing whether you think it's a myth, reality, he's able to get people together. That's what the president has to do.
MCDOWELL: The money issue because if you look at the securities and investment industry, it has given Hillary Clinton almost $59 million, far and away more money than any other candidate.
BARTIROMO: They haven't given Trump anything.
MCDOWELL: Trump got $585,000. He is still below Ted Cruz, Scott Walker, Lindsey Graham, even Rand Paul and Carly Fiorina in terms of contribution. But my point is --
SPALLANZANI: He's running as an outsider.
MCDOWELL: Well, maybe they've made a bad bet. Maybe that they have made a bad bet because they don't really know what they are getting. She gave all these honky dory speeches to them, but she could easily go after a whole host of industries including them if she's -- buddy, buddy with Elizabeth Warren.
BARTIROMO: The smart money follows you. The smart money is what you're saying because look what happened to health care this week? Look what happens in bio tech. The smart money is saying, wait a second, Hillary did well in the debate, Hillary is going to -- may win this election, I better sell all my healthcare holdings.
MCDOWELL: I guarantee one of the first thing she does is get the government to negotiate drug prices on behalf of Medicare.
SPALLANZANI: The biggest (inaudible) is that the Democrats take over the Senate and right now there's ten -- ten Democratic seats up for re-election and 24 Republicans and President Obama's approval rating is 55.
So there's basically a swing that the really only need six seats and when the approval rating of the president is that high there's a probability that they're going to win top nine and average of five. So the Republicans are really teetering on losing.
BARTIROMO: So you think that's responsible for the markets. Markets have been down in triple digits now. You know, it's been consistent so do you think that's the reason -- a Democratic sweep.
SPALLANZANI: That's one of the reasons since the weekend that they're worried about the Democrats taking both obviously the presidential election and the Senate.
STEVE HILTON, CROWDPAC CEO: In specific sectors there's a threat from Clinton, but generally they also buy the argument that the economy would do better if you had a Republican in the White House and the House control.
SPALLANZANI: We are going to get positive things for growth.
BARTIROMO: You're not going to get tax cuts.
SPALLANZANI: When I talk about tax cuts, I think you're going to get some corporate tax cuts definitely. You're going to get all that --
BARTIROMO: She hasn't said one peep about corporate taxes.
SPALLANZANI: It doesn't matter. You're going to get all the money. We need to get people to work, Americans to work. They want to get the people from the bottom up, right, so they're not going to be doing a lot of things that are going to hurt the bottom. They want to put people -- construction workers, all the people who have been hurt since over the last eight years since the great recession. We need to get jobs back.
CARTER: Is that the difference between public and private positions?
SPALLANZANI: Yes, I mean, that's -- that's what we are hoping that all the money that -- the trillions of dollars that all the central banks have pump into the markets really has not worked because there's no -- there's nothing that's going to put that money to work. So now we need something on the fiscal side to give that money a push to go into --
BARTIROMO: Just to be clear, Clinton is not talking about corporate tax cuts. She's talking about raising taxes.
SPALLANZANI: Not on corporations. There's a difference between over (inaudible) of overseas money which I think both Democrats and Republicans want and it's really up to the president to get that money back.
HILTON: She's doing that through punishing companies whereas Trump is bringing that money through lower tax rate.
SPALLANZANI: She did not say -- I don't think she wants to raise taxes on corporations.
MCDOWELL: Yes, $250 billion of the $1.6 billion in new revenue is on corporations, $1.4 billion largely on Welfare America, that's a huge chunk --
SPALLANZANI: So that's a private, right, you have private and public. But the fact of the matter is that we need to get the middle ground, right. That's what the president is really supposed to do. You have circles and you need to find out where we could get agreement.
HILTON: Remember the pressure that would be on her. Let's just imagine that she wins, all the pressure on her will be coming from the left, from Bernie Sanders wing, from that (inaudible) movement who --
BARTIROMO: Elizabeth Warren.
HILTON: And we know that she responds from that political pressure. Look at the way she's moved during the campaign --
SPALLANZANI: The pressure worldwide globally is to get fiscal spending going and for those countries who have the ability to cut taxes and to get deficit spending to do it. That is what we are facing now because central banks are basically impotent right now. We're all at zero. They can no longer help so what's going ot drive growth in -- we cannot pick up anybody when we have 1.5 percent GDP, right? We need GDP at 3 percent --
BARTIROMO: Right.
(CROSSTALK)
SPALLANZANI: The only -- regardless of who the president is, regardless who the president is, we need to have better growth worldwide. So the new normal is 1.5 percent. Nobody is going to be lifted out of poverty at 1.5 percent growth.
BARTIROMO: That's why we are all trying to figure out where the growth plan is. You're sitting on the desk. You're seeing lots of money change hands. What's your feeling about markets right now?
SPALLANZANI: Well, last night we had a very bad China export data, right - - it was minus 10 percent so that's really why the market is down right now. S&P down. We had technical levels that we broke, 21.50 in the S&P. Now we are down at 21, 20. The fears have gotten the upper hand right now.
Part of the reason is they're fearing a Democratic sweep, right, the Democrats get the Senate and the presidency, and also a little bit of rate hike fears after the minutes came out. So I think --
BARTIROMO: And after global story of China. The China weakness there.
SPALLANZANI: Weak exports, yes.
BARTIROMO: John, great to see you. Thank you so much, John Spallanzani there.
Coming up, shoppers' payment information at risk after a hack attack at Vera Bradley. Details on the data breach theft.
And then vacation days gone to waste, why your boss may be to blame for your unused days off. Back in a minute.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. Take a look at futures. We are expecting a lower opening for the broader averages this morning. The Dow Industrials expected down about 100 points.
A couple of names on the move this morning, Vera Bradley following a data breach, the handbag maker announcing that its payment system was hacked putting customers' credit card information at risk.
Disney set to release the much anticipated new trailer for the Star Wars "Rogue One." The new instalment of Star Wars set to be released before Christmas, but merchandises already hitting store shelves months ahead of the movie.
There is a new twist in the Connecticut plane crash that killed one man. Cheryl Casone with the details now -- Cheryl.
CHERYL CASONE, FOX BUSINESS: Yes, Maria, investigators are now saying that the crash appears to be a suicide. Remember yesterday, the FBI said it appeared intentional. Authorities say student pilot was flying the plane when he allegedly became disgruntled about learning to fly that airplane.
He was killed in the crash. His flight instructor survived and told investigators that Frates had no longer we wanted to fly and that there was a struggle to regain control of the aircraft, but obviously the instructor unable to do that and the plane did crash.
Well, the federal government has decide to support two companies that plan to use drones to fight Zika. The federal funding is going to helping develop drones that can drop off Zika fighting mosquitoes or transport lab samples. The company say that drones could navigate to areas that ground vehicles cannot reach.
Americans have a reputation of being workaholics, right? But there may be another reason why employees are not using all of that vacation time.
A new survey shows that workers say that nearly 60 percent of American workers left vacation time unused last year and they are blaming their bosses, no.
Workers say that management sends negative messages about taking time off, Maria. So I mean, you know, Americans were hard workers, but how many years have you left your vacation on the table? I bet several in your career.
BARTIROMO: No, I usually take vacation actually. Does everybody take their vacations?
MCDOWELL: I do now.
BARTIROMO: You feel taking time off has a negative --
CARTER: To some people there's this whole idea that being busy equals, you know, being important and I think certainly in different generations it means different things, but we are seeing millennials and younger people saying it's more important to have quality of life than it is to have, you know, this crazy, crazy hours in my whole life being worthless.
MCDOWELL: Being the daughter of people who owned a small business, my parents never not worked. My parents never took a vacation ever, maybe we would go to the beach for a weekend, but they never took vacation until I was an adult.
To this day my father is why aren't you working Saturday or Sunday? I saw that Neil is on live, why weren't you on, on Saturday?
BARTIROMO: I get to call at 9:05 when I'm not on.
MCDOWELL: It's not are you OK, why aren't you at work? It's never are you sick. It's why aren't you at work?
BARTIROMO: Funny.
MCDOWELL: It's true.
HILTON: The (inaudible) in Silicon Valley, the culture is really different. It's very much about the quality of life and balancing, not working all hours, it's interesting. I'm a founder. We don't. I'm older than most founders, but we definitely have that culture too.
CARTER: And have you seen the whole trend --
MCDOWELL: You all got lazy, didn't you?
CARTER: It's a totally different philosophy on life.
BARTIROMO: In China, they work and live in the same building, there's a big trend where you have your house and office in the same building so you never take off.
CARTER: No, thank you.
BARTIROMO: An investment app that is geared toward millenials, how Robinhood's star studded backers are giving the app an upgrade next. Back in a minute.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. A brokerage company attracting an unusual client base, millennials. The stock trading app, Robinhood, allows users access to commission free trading for U.S. stocks and exchange traded funds through their smart phones.
Joining me right now is Vladimir Tenev. He is co-founder of the Robinhood app. Vladimir, good to see you. Thank you so much for joining us.
VLADIMIR TENEV, ROBINHOOD CO-FOUNDER: Thanks for having.
BARTIROMO: So your app has a million users already?
TENEV: That's right.
BARTIROMO: Tell us about the app.
TENEV: So Robinhood is the best way for people to buy and sell stocks commission free. We are mobile first so we are available on iPhone and Android phones. And it's been tremendous since we've gone live a little bit over a year ago, more than a million people have signed up and more than 12 billion has been transacted through the platform.
BARTIROMO: You just released a more advanced version of the app called Robinhood Gold.
TENEV: That's right.
BARTIROMO: This is for more experienced investors?
TENEV: Yes, for more experience investors, Robinhood Gold is a sweep of premium features starting at just $10 a month that includes access to extended hours trading, premarket and post market as well as margin trading and access to a feature which we call instant deposits, which allows people to use funds from bank account to buy and sell stocks immediately after initiating the deposit.
BARTIROMO: So how do you make money on it?
TENEV: So we start Robinhood Gold as a premium service starting at $10 a month. So it's very simple and easy for users to understand. You get billed monthly and it's --
BARTIROMO: I'm trying to figure out how Robinhood, the Robinhood app, how are you monetizing this?
TENEV: So Robinhood Gold is our premium service. The base Robinhood app for people that don't upgrade to Gold is always will be free.
BARTIROMO: OK, you have some high-profile celebrities, Snoop Dogg, what was the draw for getting these celebrities involved?
TENEV: I think they were really interested in the concept. If you look at our space stock brokerage, nothing has really changed in 30 years. There's not a lot new going on in stock brokerage and we set out to reinvent it.
And I think that mission resonated with lots and lots of people around the world especially young people and, you know, a lot of our investors found it really compelling that this new product was resonating with a lot of the same people that listen to their music.
BARTIROMO: It's so interesting. So your background, let's talk about your background, you graduated from Stanford. You previously worked in finance being familiar with the industry. In terms of overall experience for the user, it's just buying and trading stocks, it's not like you're getting research or any of these other things the brokerages out there will charge for?
TENEV: That's correct. So one of the big things, of course, that differentiates us from the competitors that we have is that all of our trades are free. So your typical brokerage charges you $7 to $10 per trade.
Even though there's no sort of typical classroom education or analysis content in the app, Robinhood allows people to learn by doing, starting with small amounts of money.
And we see a lot of customers creating mini diversified portfolios with even just a handful of shares and that wouldn't have been possible with any other brokerage if you were paying $7 to $10 per every single transaction and you have account minimums of hundreds of several thousands of dollars.
BARTIROMO: What's the risk? You basically buy and selling trading stocks from your phones, should I be worried that, you know, the transaction is not safe?
TENEV: I think a lot -- a lot of people -- security is something we take super seriously. We, you know, use bank-level security, meet and exceed industry best practices. So that's something we spend a lot of -- a lot of effort on.
BARTIROMO: All right, we will leave it there. Vladimir, good to see you.
TENEV: Thanks so much for having me.
BARTIROMO: Thanks you so much. We appreciate it. We will be watching Robinhood app.
Coming up, the race for the White House heating up as Trump fires back against new allegations this morning. Former speaker of the House, Newt Gingrich will join us in the next hour. Coming up MORNINGS WITH MARIA continues. Stay with us.
(COMMERCIAL BREAK)
BARTIROMO: Good Thursday morning, everybody. Welcome back. I'm Maria Bartiromo. It is Thursday, October 13th. Your top stories right now at 7:00 a.m. on the east coast.
Chaos on the campaign trail. Donald Trump threatening to sue after new sex assault allegations this morning from the "New York Times."
Meanwhile, new leaked e-mails show Hillary Clinton's campaign asking her to call, quote, "needy Latinos and mocking Catholics."
END
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(Show: MORNINGS WITH MARIA) (Date: October 13, 2016) (Time: 07:00:00) (Tran: 101302cb.231) (Type: SHOW) (Head: Campaign Scandals; Interview with Newt Gingrich and Callista Gingrich) (Sect: News; Domestic)
(Byline: Maria Bartiromo, Dagen McDowell)
(Guest: Steve Hilton, Lee Carter, Newt Gingrich)
(Spec: Stock Markets; Politics; Media; Elections; Lifestyle)
(COMMERCIAL BREAK)
MARIA BARTIROMO, FBN ANCHOR: Good Thursday morning, everybody. Welcome back. I'm Maria Bartiromo. It is Thursday, October 13th.
Your top stories right now at 7:00 a.m. on the East Coast.
Chaos on the campaign trail: Donald Trump threatening to sue after new sex assault allegations this morning from the "New York Times".
Meanwhile new leaked emails show Hillary Clinton's campaign asking her to call, quote, "needy Latinos" and mocking Catholics. Yesterday, Trump and Clinton on the attack.
(BEGIN VIDEO CLIP)
HILLARY CLINTON (D), PRESIDENTIAL NOMINEE: Donald Trump is taking a very different tone. His campaign said today that they're going to use a quote, "scorched earth" strategy. Now that just shows how desperate they are.
DONALD TRUMP (R), PRESIDENTIAL NOMINEE: There's never been a time like this in our country and congress in all fairness and I'm so disappointed in them and I mean both sides. I'm not talking Republican, I'm talking everybody. This is crime at the highest level. She shouldn't be allowed to run for president.
(END VIDEO CLIP)
BARTIROMO: Tom Brady asked about his good friend Donald Trump's locker room talk. The Patriots quarterback's response coming up.
And breaking news this morning. The U.S. military strikes back with cruise missiles attacks in Yemen -- the move in retaliation to failed missile attacks on a U.S. Navy destroyer.
Saddam Hussein's dark secret revealed. Details on his torture dungeon and execution chamber near New York City Central Park. That's coming up.
Plus a major recall to tell you about. Nutrisystem warning customers about its cooking dough bars, the listeria concerns ahead.
Chipotle giving away more free burritos to win back customers -- will the strategy work?
Plus a toast to Starbucks' new drink. We will tell you about the coffee and beer combo coming up.
But first markets this morning indicated lower. Take a look at futures indicating a drop of about 100 points at the opening of trading this morning. Investors are watching for earnings as well as reports on jobless claims and import prices. That's due out later this morning. Of course, earnings expected to be down for the third quarter overall.
In Europe, the major indices are deep in the red this morning as you will see. Down about three-quarters of a percent to one-and-a-third percent.
In Asia overnight stocks also ended mixed. Investors are eyeing weak trade data out of China. That set the tone for the broader markets throughout the world. The Hang Seng top loser, down over one-and-a-half percent as you see there.
All those stories coming up this morning and joining me to break it all down: Fox Business Network's Dagen McDowell, Crowd Pac CEO and former adviser to David Cameron Steve Hilton is with us, and pollster Lee Carter. Great show so far -- you guys.
LEE CARTER, POLLSTER: Great to be here.
STEVE HILTON, FORMER ADVISER TO DAVID CAMERON: Great to be with you.
BARTIROMO: So much to talk about and we're going to talk with Newt Gingrich coming up in just a moment.
DAGEN MCDOWELL, FBN HOST: Awesome.
BARTIROMO: Joining us this morning the author of "Defeating Jihad" Sebastian Gorka is with us, Lifezette editor-in-chief and radio talk show host Laura Ingraham, and Philadelphia Federal Reserve president Patrick Harker.
We've got a big show this hour. So do stay with us as we continue watching these new headlines fast and furious.
In the race to the White House, Hillary Clinton is campaigning in California this morning while Donald Trump is trying to regain ground in Florida.
Trump is on the defensive once again, threatening now to sue the "New York Times" over accusations this morning that he sexually assaulted four women. His campaign spokesman Jason Miller released a statement yesterday saying "For the `New York Times' to launch a completely false coordinated character assassination against Mr. Trump on a topic like this is dangerous."
Joining us right now is the former speaker of the House and author of the new book "Treason" -- Newt Gingrich. Good to see you, sir. Thanks so much for joining us.
NEWT GINGRICH, FORMER SPEAKER OF THE HOUSE: Good to see you.
BARTIROMO: We've a lot to talk about with you this morning. But first let's talk about this scandal and whether or not this is going to have legs?
N. GINGRICH: Well, when the "New York Times" goes back over 30 years to find somebody who's had bad airplane flight, that's the essence here. I'm happy to stipulate Donald Trump in the past -- this is not the Donald Trump that I know. But Donald Trump in the past may have been crude, if you're willing to stipulate that Hillary Clinton is both corrupt and dangerous.
BARTIROMO: Yes. You know, it's interesting because we were talking about just how coordinated this has all been earlier. You know, when she got pneumonia and she collapsed on 9/11 ceremony the next day we are talking about the birther issue. When Debbie Wasserman Schultz was pushed out on day one of the Democratic National Convention, suddenly we are talking about Russia.
Now we've got, you know, Trump battling back from a scandal last week and now all of a sudden "New York Times" has this --
N. GINGRICH: And think about the other things they could be covering. Apparently there's a growing story that the FBI agents all believed that she should have been prosecuted. That Comey just sold them out for political reasons.
MCDOWELL: That's basically Fox News reporting and no where else. Just at Fox News.
N. GINGRICH: Of course, yes.
And that's the whole point.
MCDOWELL: Right.
N. GINGRICH: So the "New York Times" -- she gives a secret speech in Brazil to bankers for $225,000. They'd already paid her husband $400,000. And she says in her secret speech her dream -- which is a big word -- her dream is a western hemisphere with no borders.
Now not only does that mean 600 million people could come to the U.S. but it means that MS13, the murdering gang in El Salvador, the Mexican drug cartels, the Colombian cocaine dealers could all come into our border.
If Trump would just slow down and focus on a referendum of Hillary wished she had an open border for 600 million people, vote for Hillary. If you think we should actually control our border, vote for me. If he would just stick to one or two things of that scale, he would blow past the "New York Times" and win the election.
MCDOWELL: Can I just add and say something, though? Since literally the Republican convention, that is actually the phrase that we have heard over and over and over again "if Trump would just dot, dot, dot -- ellipses. And the problem is Trump -- if Trump hasn't just done what -- it's a traditional politician but he continually hurts himself and his own campaign.
N. GINGRICH: Yes.
MCDOWELL: And his supporters, Newt, Speaker.
N. GINGRICH: Yes. Look, I think this is a guy who is riding a wave of extraordinary hostility to Washington. The people who think the city is corrupt, which it is. People who think they're being sold out, which they are. And so he has a huge base -- plus I have been out doing book signing this last couple of days and people who turn out are overwhelmingly anti- Clinton and therefore, they're overwhelmingly for Trump.
And if he could understand -- again, he's a very gifted amateur who has come a very long way but he allows his personality to get in the way of his election and that's candidly a mistake.
BARTIROMO: And when you have the mainstream media basically supporting, you know, the narrative that -- that he's so bad and she's the only one qualified. I mean Speaker, WikiLeaks just put out another 80 pages worth of Clinton speech excerpts of her praising Wall Street but we are not seeing a lot of backlash this morning. We are not seeing any coverage of this. And the WikiLeaks emails --
N. GINGRICH: Starting with somebody going up to Elizabeth Warren saying, now that you know that your nominee secretly and for great amounts of money was praising Wall Street, how do you feel about her? I mean Elizabeth Warren probably would be the leading person -- and at least half of the Sanders' voters.
Again, this is a simple matter of Trump focusing, driving the message -- at least half of those voters I think would suddenly be shaken in their support for Clinton because she's such a total liar. And in there's a secret Hillary, and a secret Hillary who is coming out on these various leaks as frankly a fairly very frightening person.
CARTER: In her own words she said that.
N. GINGRICH: Yes.
CARTER: Now something I want to talk about is -- and we were just talking a little bit about this. When Donald Trump is polled out loud over the telephone, he has a different result than when you do an online poll. When you talk to people on focus groups and say thing out loud versus what they write down in private -- totally different results.
N. GINGRICH: Right.
BARTIROMO: Interesting.
CARTER: I'm seeing in online polls, Donald Trump is outperforming his telephone polls by about six points. Why is that?
N. GINGRICH: But that's the elite media -- it's not that the elite media is for Hillary. The elite media is Hillary. They are the same organism. They are the left. They are the establishment. And of course, you lived through this with Brexit.