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MARIA BARTIROMO, FBN ANCHOR: BARTIROMO: Good Wednesday morning, everybody. I'm Maria Bartiromo. Thanks for joining us. It is Wednesday, November 2nd. Your top stories, 7:00 a.m. on the East Coast.
The presidential race turned on its head with less than a week to go. The WikiLeaks revelations have the Clinton campaign on edge, Donald Trump on the attack.
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HILLARY CLINTON (D), PRESIDENTIAL NOMINEE: We can't just wish it away. And you know, a lot of his supporters don't like to hear this. I don't blame them. If I were supporting him I wouldn't want to hear it either, to be honest.
DONALD TRUMP (R), PRESIDENTIAL NOMINEE: Somehow I think that Obamacare is not going to be her biggest problem. Does that make sense? She wants to blame everyone else for her mounting legal troubles. But she has really no one else to blame but herself.
(END VIDEO CLIP)
BARTIROMO: And new concerns over hacking as voters head to the polls in a week.
Breaking news, two cops have been shot and killed in Iowa. A manhunt is underway this morning in an apparent ambush. We've got the latest developments coming up.
A luxury sports car is destroyed in an accident leaving this McLaren's front end shattered in pieces. What a story there.
And Arby's new venison sandwich, a big hit. It's sold out in its first day in restaurants. Remember we told you about that last week -- the details coming up.
Another busy day on the earnings calendar this morning. Investors are also waiting on the Federal Reserve. We will hear from the Fed at 2:00 p.m. Eastern today about interest rates and whether or not we will see an interest rate increase in December.
Markets are under pressure this morning, uncertainty about the election, some weak and unexpected earnings. We should point out that Alibaba just beat on revenue.
In Europe stocks are lower across the board -- take a look. Across the Eurozone you're talking about declines of about a third of a percent to three-quarters of 1 percent to 1 percent on the DAX index in Germany.
We also saw declines overnight in Asia. The Nikkei average setting the tone in Japan, down nearly two percent on the session.
And the World Series going to game 7 but actor Charlie Sheen takes a swing at the Indians. Find out why coming up.
Plus new emojis coming to your iPhone. We've got a look at some of the favorites ahead.
All those stories coming up this morning. And joining me to talk all about it is Fox Business Network's Dagen McDowell; Peebles Corporation founder, chairman and CEO Don Peebles; and pollster Lee Carter.
Great to see you.
LEE CARTER, POLLSTER: Great to see you.
DAGEN MCDOWELL, FBN HOST: Fantastic.
BARTIROMO: Lots to come this morning.
I so want to get your take on North Carolina. You just got back. We're going to talk about that.
DON PEEBLES, FOUNDER OF PEEBLES CORPORATION: Right.
BARTIROMO: And I want to ask you a little about New York, too.
PEEBLES: Ok.
BARTIROMO: The mayoral race coming up.
Joining the conversation this morning: the CEO of Allergan is with us, Brent Saunders is here; former Defense Intelligence Agency director and Trump supporter and adviser, Lt. Gen. Michael Flynn is with us; and former RNC chair and former Mississippi governor, Haley Barbour is with us. You don't want to miss a moment of it. So do stay with us. We've got a big show this morning.
We kick this hour off with WikiLeaks still causing trouble for the Clinton campaign. The newest batch of emails released by WikiLeaks shows that Hillary Clinton's campaign chairman John Podesta advising longtime aid Cheryl Mills to dump emails.
He writes, "Not sound like Lanny -- Lanny Davis that would be -- but we're going to have to dump all these emails so better to do so sooner than later." The emails raised questions as to what Podesta meant by the word dump.
Joining us right now former New Mexico governor and former Democratic presidential candidate himself, Bill Richardson. Governor -- good to see you.
BILL RICHARDSON, FORMER NEW MEXICO GOVERNOR: Thank you -- Maria.
BARTIROMO: Thank you so much.
It's sort of unfair to throw that question at you, isn't it? What does John Podesta mean? It doesn't look good, though. These emails from WikiLeaks are not looking good -- Governor.
RICHARDSON: Well, what he was saying is release them to the public. I mean this is a very political bureaucratic characterization. Dump the bad news, you know, get them out. That's what he meant.
BARTIROMO: Not hey, listen up, shred all that stuff.
RICHARDSON: No, of course not. You know, Podesta, if anything is a very ethical guy. He's been, you know, a chief of staff for several administrations. Basically what it means is, you know, when -- this is something in politics. When you have a problem get rid of it. In other words, dump it all out. Get all the bad news out. I think that's what he was saying.
That's it.
BARTIROMO: That's fair enough. That's your story and you're sticking to it.
PEEBLES: Yes, I think look, it's the same idea about writing books. Politicians started writing books, you get all the dirty laundry out. And I think clearly -- you would expect them to dump it out and hopefully dump it out in enough volume that nobody paid attention to the nuances there.
RICHARDSON: Yes.
CARTER: With six days left.
PEEBLES: Right.
CARTER: What would you -- what do you want to see out of Hillary Clinton right now. How do you want her to handle?
RICHARDSON: Well, you know, here we are talking about emails, WikiLeaks with Trump, you know, the women stuff, taxes, closing arguments should be about the issues, about the economy.
BARTIROMO: Totally.
RICHARDSON: About national security. And I think this is where Hillary Clinton -- I want her to emphasize the last six days, you know, her vision of the country, her plans to economic growth, to fight ISIS, to deal with some of the Obamacare issues that have come up. I think Obamacare is a plus but you know, there's some fixing to do.
BARTIROMO: What is her vision do you think? I mean I feel like I know it's very simple what Trump has said -- make America great again. He's talking about lower taxes. He's talking about rolling back regulations.
What are her important tenets of her campaign? What's her vision?
RICHARDSON: Her vision is American families. Doing something about income inequality, about creating jobs, about making sure that education is available to everybody, about fighting ISIS, about having a foreign policy based on our ideals. That's what she wants to do.
PEEBLES: But Governor -- you talk about income inequality. I think that is the number one -- one of the top issues facing the country right now. But income inequality is a new topic here. I think people have lost confidence in our system.
But if we look at African-Americans, the Democratic Party's most loyal constituency and we are hearing nothing in terms of how the party is going -- or how Hillary Clinton's administration would provide economic opportunity for African-American entrepreneurs.
Not every African-American in the United States of America strives for $15 an hour. They want the same access to the American dream as everybody else. The most loyal constituency of the party is constantly overlooked. So how do you balance that?
BARTIROMO: You're right.
RICHARDSON: You know, despite my last name I am Hispanic. And I don't know why I said that but --
PEEBLES: No.
RICHARDSON: My point is that, you're right. I mean Hispanics, African- Americans -- you know, we care about mainstream issues about jobs, about crime issues. We care -- it's not just issues relating to affirmative action.
And so economic growth -- those jobs are important. I think Hillary has an inner city program. She has an economic program to reduce taxes on small business.
BARTIROMO: No, no, no -- taxes are going to go up on small business under Hillary's plan.
RICHARDSON: No, no, no, no, no. Small business -- depends how you define it.
PEEBLES: But that means that the individual -- is she going to do that at the individual tax rate level because that's small business owners pay taxes. They don't pay corporate taxes.
BARTIROMO: Yes. And she's raising those taxes.
PEEBLES: As you know from your state, they pay it at the individual level.
RICHARDSON: What I have seen of our economic plan for small business is it's a reduction. What she is doing is on manufacturing. In other words, how can we keep manufacturing jobs here? Instead of them being shipped overseas, what can we do to get those tax revenues from that overseas movement to fund infrastructure, to fund -- to find ways to get pensions and infrastructure funded right now in public-private partnerships.
She's got some new good economic ideas.
PEEBLES: But Governor, you know, let's -- you mention African-Americans and you mentioned the fact that African-Americans and Latino-Americans are looking for upward mobility. We're not going to find that on Wall Street because if you look at the Fortune 500 companies they are not run by African-Americans or Latinos.
So it's entrepreneurship. And the party has neglected to take that message to the minority community of upward mobility for economic prosperity. Not -- look, we all want everybody at the middle level to do well. But our young people want access to the American dream which is deeply rooted in a capitalistic structure. This is not a socialistic country so how come the party can't meet us on that common ground?
RICHARDSON: Well, I think the emphasis as you know has to be on improving our educational system, our training, our community colleges. I think you have to start with that educational system.
And look, let's look at the reality. African-Americans, Hispanics -- it's going to be probably a very high turnout for Hillary Clinton, for the Democratic Party. But you're right. I think we have to address those economic issues, those mainstream economic issues that allow the entrepreneur, the small business person to start a business.
You know, I want to see more Latinos in your business, in high tech, you know, in private equity. In you know, what you guys report every morning. You're right. We don't have anybody.
BARTIROMO: Yes. But what I said earlier is I'm looking for the road to economic growth in Hillary Clinton's plan and I truly can't find it. I mean it's just a different approach. How do you get income inequality in terms of moving the needle the there? How do you get economic growth?
Do you create an environment that's attractive for business to create jobs? That means lower taxes and lower wages and a rollback of regulations. Or do you do it from the bottom up looking at education and making it more expensive for business. Isn't that going to stifle their job?
RICHARDSON: No, I think if you look at her plan, the income inequality issue is there. But if you look at her economic growth plan to create jobs, to get -- you know, the manufacturing in this country -- I am a free trader. But free trade today is a bad word on both parties.
BARTIROMO: Yes.
RICHARDSON: And that's not right. I mean it's technology that has caused some of the problems with the free trade agreement, it's not agreements themselves.
I think we've got to find ways to keep manufacturing in the United States or jobs in the U.S. and she has a plan to do that.
CARTER: What is it?
RICHARDSON: The plan is to basically take some of the revenue of that manufacturing that is overseas, give them incentives to keep the jobs here but also move some of those funds from the revenue into infrastructure, into do something about our roads, our bridges, our broadband, our Internet, our electricity grid.
I was energy secretary, I almost got pilloried when I said that our grid was a third word grid. I think we need those public/private investments. That's her plan.
MCDOWELL: But as -- if you're trying to start a business. If you look at her plan, she complicates the tax code even more whether you're talking about capital gains taxes or even income taxes. There is more regulation that will be put into place making Obamacare quite frankly a little more complicated.
And when a business owner looks at it they want simplicity. Not something that makes it more difficult to deal with the government.
BARTIROMO: More red tape.
MCDOWELL: Right.
PEEBLES: I believe she's well-intended, by the way. I think she wants to do these things. I just think she's got a 1990s solution to a 2020 and 2016 issue. And that's I think where a lot of us are getting lost.
RICHARDSON: Well, you know, I have not seen much of Trump except saying on economic issues we're going to reduce taxes and no regulation. We're going to have a trade war with China, with Mexico, we're going a build a wall. I mean that's his economic plan.
No, he did. He's going to enact a bunch of tariff penalties with China.
BARTIROMO: Well, he said he wants to redo deals that are not advantageous to America. And if that mean redoing NAFTA, if that means not doing TPP and doing a new deal with Asia, that's what it means when he said it.
But he wants a roll back regulations and lower taxes. That's the crux of his plan.
RICHARDSON: Well, lower taxes for those in his income but I don't see the equity here.
BARTIROMO: As well as corporate taxes.
(CROSSTALK)
BARTIROMO: And the corporate tax rate, he's looking at 15 percent.
CARTER: Is there anything about Hillary Clinton's plan that you would do differently.
BARTIROMO: That's a good question.
RICHARDSON: On economic issues.
CARTER: Yes.
RICHARDSON: Well, I'm for the TPP, the Trans-Pacific Partnership. You know, I think for political reasons with the primary she had to soften her support for it. But you know, I am a free trader. That's 11 countries that would benefit from more free trade in Latin America, in Asia, all over the world.
I would have said, you know, we're going to stick with this. We're going to fix it -- maybe stronger labor, environmental accords. Find ways to deal with prevailing wages in some of these countries. I would've done that a little differently. But I'm a free trader.
CARTER: Can you believe how --
RICHARDSON: And I'm a, you know, an endangered species in this Democratic Party.
BARTIROMO: Right. Especially in this election.
BARTIROMO: Can you believe how tight this race is?
RICHARDSON: You know, polls at the end of every presidential election tighten. But, you know, I'm encouraged. I voted for Hillary Clinton four days ago in Santa Fe, New Mexico -- big turnout, big Hispanic turnout.
You know, the early voting is favoring the Democrats because we have, I believe, a better ground game. Trump maybe has a lot of the news cycle, but you know, you've got to get your voters out. And that's why this election is going to be decided in those nine battleground states. And I feel good. I feel confident.
BARTIROMO: Governor -- good to see you.
RICHARDSON: All right.
BARTIROMO: Thank you so much.
RICHARDSON: I'll see you.
BARTIROMO: Governor Bill Richardson there.
Stay tuned to Fox Business for all day coverage on the weekend as well as on Election Day, Tuesday November 8th. And for our post Election Day coverage right here on MORNINGS WITH MARIA. We're going to start earlier - - an hour earlier at 5:00 a.m. Eastern. We're live Wednesday November 9th. So be with us for that day.
Coming up, a joy ride turned into a nightmare for one Los Angeles driver. A $185,000 car destroyed in a wild street race. He's ok.
And next move over roast beef, Arby's latest addition to its menu is even more popular than expected. How quickly their venison sandwiches sold out.
Back in a minute.
MCDOWELL: Told you.
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BARTIROMO: Welcome back.
Two police officers ambushed and killed in Iowa.
Cheryl Casone with the details now -- Cheryl.
CHERYL CASONE, FBN CORRESPONDENT: Yes. We're getting a few new details, Maria, from this. An officer was fatally shot while he was sitting in his patrol car just after 1:00 a.m. local time. Then 20 minutes later a second officer was attacked while sitting in his patrol car. The shootings happening just two miles apart.
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SGT. PAUL PARIZEK, DES MOINES POLICE: About 20 minutes after that officers were in the area, attempted to help the officers, figure out what had happened see, if we could identify the suspect. One of our Des Moines officers found a Des Moines police officer seated in his vehicle at an intersection. He had also been shot.
(END VIDEO CLIP)
CASONE: So police are saying they're not ready to release any information about the suspect with the public but they are now instructing all officers to patrol in pairs.
Well, a drag race in Los Angeles and a badly-provoked driver and the cars. A McLaren sports car worth $185,000 smashed into pieces after a crash into an Audi. These photographs show the neon green McLaren on the sidewalk, the front end completely smashed in. The McLaren was going 60 miles per hour on a 40 mile-per-hour street. Both drivers were taken to the hospital. It's a very green vehicle.
All right. Remember when I told you about Arby's new venison sandwich tests? You know, the deer sandwiches. Well, it turns out it was a huge hit in Tennessee. It sold out a restaurant in Nashville on the first day. This is the first Arby's in the country to offer this special.
A spokesman for the chain says hunters snapped up the sandwich, they went through more than 250 of them in just five hours. The promotion is due to end there tomorrow but they're going to move it to Atlanta later this week. And if this works out for Arby's, you might see these in more Arby's across the country.
And finally with the start of the holiday shopping season just around the corner let's look at what the shopping list is for shoplifters. Remember shoplifting a huge problem for retailers. Well, among the top picks people like to steal during the holidays -- electronics accessories, cell phone cases, leather which are clothing, meat, seafood, children's toys. Yes, this list coming from our friends over at Market Watch. It was a retailer's survey Maria. But yes, if you're going to steal -- go for the iPhone case.
Back to you.
BARTIROMO: And the iPhone. I think people really like stealing the iPhone as well.
MCDOWELL: There is a great article in the "Wall Street Journal" today speaking of the holidays that black -- the inside (inaudible) for Black Friday is it's the same deals every year at the same price. There's never a new deal -- it's not anything new.
BARTIROMO: Year over year.
MCDOWELL: And it's the same price. It's like hey if you bought that TV last year it's the same price as it is.
CARTER: But if you can get, there's only ten of them. I've seen arms get dislocated. I am. I am. It's an adrenaline rush.
(CROSSTALK)
BARTIROMO: Another amazing day for earnings this morning. Allergan reported third-quarter results just minutes ago. We're breaking down those numbers with the pharmaceutical company's CEO, Brent Saunders with us today.
And the Indians lose their sheen in game six. Charlie Sheen taunts the team he fronted in the movie "Major League" after missing out on the first pitch honor.
Back in a minute.
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BARTIROMO: Welcome back.
Earnings season in full swing. Allergan reporting third quarter results last hour -- both profit and revenue coming in below Wall Street expectations. The stock is up ahead of the open as the company also announced it will expand its share buy-back program and will start paying a dividend next year.
Joining me right now in a Fox Business exclusive is chairman and CEO of Allergan, CEO Brent Saunders. Brent -- good to see you.
BRENT SAUNDERS, ALLERGAN CEO: Nice to be here. Thanks for having me.
BARTIROMO: Yes, good to see you so.
First the earnings in the quarter -- what drove the quarter, what were the highlights?
SAUNDERS: Yes. So a little disappointing quarter for us; most of that miss was related to some older products that either went generic or some of the older products that are competing against generics.
But the good news is our growth drivers, the most important products that we have, all grew strong double digits. Botox up 15 percent, Restasis up 13, Linzess (ph) up 42 percent, just to name a few.
BARTIROMO: Yes. And those are really important products for the company. You believe that's where the growth is going to come from going forward.
SAUNDERS: That is our future. The products that didn't grow, Namenda XR (ph) for example, are not our future. That really is almost our past but the future looks incredibly strong and it gives us great confidence in our ability to continue growing when you look at the main products. The things that we're going to be focusing on for the next few years, five years, ten years having such great, great growth.
And we launched a few new products this year and they are doing really great. In fact they contributed about $90 million of sales in the quarter.
BARTIROMO: Yes. Tell me about the pipeline. A lot of analysts talking about the pipeline promising and it's a pipeline that's being undervalued in terms of the whole Allergan story.
SAUNDERS: Oh, I absolutely agree with that, yes.
BARTIROMO: What's most important in the pipeline?
SAUNDERS: Yes. I mean I think we don't get a lot of credit for our pipeline. We're now talking about it more and more particularly as we move some of these things into late phase.
So this quarter we moved an important drug Rapastinel into phase three. This could be a revolutionary new treatment for depression. And so we're very excited about that.
We have a new migraine drug (inaudible) in phase three. We are expecting data on a new drug called Esmian (ph) the first pharmacological therapy for uterine fibroids for women around the first quarter of this year. So we finished that work. We have a new drug for AMD in phase three, mid-stage phase three that could change the paradigm for people with AMD.
So we have some really big blockbusters in the pipeline in late stage testing. We'll be moving our (inaudible) drug that we just acquired into phase three in the first half of next year. So we're really moving this pipeline.
BARTIROMO: So when you talk about phase three that means It could be on the market -- what?
SAUNDERS: It depends on each drug but let's say after the study about a year so -- you're talking about two years total.
BARTIROMO: Yes. And we were talking earlier in terms of the weak spots here, you know, generics. That's your life. I mean this is like the normal -- right. I mean you're always going to see that kind of competition.
SAUNDERS: You do. That's a normal product cycle in pharmaceuticals. Generally you have a drug to sell in the market anywhere from seven to ten years -- there's some exceptions for that, especially biologics or drugs like Botox that have longer lives, commercial lives, if you will.
But yes, absolutely and we're used to it. And what we want to do is we want to be ahead of the product recycle game. So many big pharmaceutical companies, they go through hills and valleys.
What we've done at Allergan is we've built our portfolio much like you would do a bond portfolio. We've laddered the programs, we give ourselves several shots and goals and as some of our bigger products come up where you have two or three big ones replacing each one.
Not always going to work out because its' science. Sometimes studies don't work. But that's the game. That's what we are trying to get done and we're trying innovate for patients.
BARTIROMO: So earlier this year, you tried to merge with Pfizer. You weren't able to do that obviously because of regulators pushing back. So now you're expanding your buyback program.
This is a big deal. This is what markets are reacting to this morning. What was behind the move to expand that buyback and pay the dividend?
SAUNDERS: Yes. So we are doing two big capital allocations this quarter. One is we're expanding our buyback to a total of $15 billion. $5 billion, we've already completed and $10 billion we're announcing today, we're going to do as an accelerate share repurchase or ASR sweep. We can take most of those shares out of the share count immediately. It's a really fast way of getting some accretion.
The reason we're doing that particular capital allocation is when we look at all the things we can buy and we're still looking at stepping stone style acquisitions to buy there's nothing more accretive than buying our own stock. We believe our stock is fundamentally undervalued. And so here is a great opportunity and perhaps a tough market for healthcare to go out and buy a lot of stock back and get some massive accretion for our company.
BARTIROMO: So will 2017 be a year also of smaller fill-in deals that you are looking to create more growth at the company.
SAUNDERS: Yes, absolutely. So the move that we are making today both the buyback and the dividend of about 70 cents, leaves us enough fire power and enough free cash flow that the majority of what we can do is still go out and invest for growth. And we really tried to balance or find the right balance point for these capital allocation decisions and the first goal we have is investing for growth.
BARTIROMO: A couple of weeks ago, we saw all the pharmaceutical companies stocks sell off, biotech sold off because there was this expectation that the Democrats would get a sweep in the presidency, the House and Senate and then there would be a cap on drug prices. You put your own unofficial cap on drug prices, didn't you?
SAUNDERS: We did.
BARTIROMO: You said you have a contract with America -- tell us about it.
SAUNDERS: Yes. So over the summer we adopted or formalized or codified what we call our social contract with patients. And it really is about balancing the need to invest in innovation, cures and treatments for medical need with responsible pricing and providing access to medicine.
There is another component that talks education and manufacturing reliability and quality. But the main thing that were trying to say is these drug prices -- drug price increases that we read about sometimes or hear about on your program have to stop. We need responsible action by the pharmaceutical industry. We need responsible action by the other participants in the drug pricing system to make sure that drugs are priced appropriately.
BARTIROMO: Yes.
SAUNDERS: That people can afford them, that there's accessibility. And so Allergan is absolutely committed to doing our part and we're not going to take those big price increases.
BARTIROMO: And by the way, if you don't do it and Hillary Clinton is the president, you will be forced to do it.