MARIA-00
Meets with Paul Ryan to Plan Immediate Actions; Karl Rove on Trump Plans;
Dollar General Stores to Create Convenience Store; CEO of Murray Energy
Optimistic Now About Coal Industry Upon Trump Presidency; President-elect
Donald Trump calling it a fantastic day in D.C. yesterday. Trump meeting
with President Obama at the White House, and they tried to move past angry
rhetoric from the campaign trail; The top issues for a new administration,
ahead; From infrastructure to the economy, what the president-elect needs
to focus on during his first 100 days in office; Get rich quick, the
details as Alibaba singles day nets the company a billion dollars just in
the first five minutes, incredible; Amazon getting a time out, meanwhile,
the fallout after a judge orders the company to refund parents for
purchases made by their kids; Honoring our nations heroes this morning, the
company that provides opportunities for veterans, all while making their
products right here in America; U.S. futures indicating a lower opening
this morning for the broader averages after a two day rally following
Donald Trump's election to the White House, with the Dow closing at a
record high yesterday. As the dust settles, the focus is shifting to
Trump's economic plan, Canada is now agreeing to talk about NAFTA, as Trump
vows to scrap and redraw America's trade agreement - Part 2>
Dagen McDowell>
Erian, Stuart Varney, Tommy Gibb, Tim Gibb, Lea Gabrielle>
Markets; Business>
AUSTAN GOOLSBEE, FORMER ECONOMIC ADVISOR OF PRESIDENT OBAMA: Great to see you, Maria.
MOHAMED EL-ERIAN, ALLIANZ CHIEF ECONOMIC ADVISOR: Thank you.
BARTIROMO: So Mohamed, let me kick off with you, to what do you attribute this week performance? We see a real -- would you call it a romance with markets as Trump was elected president, why did stocks go to record highs? Why did interest rates move as high as they did, the 10-year highest since April.
EL-ERIAN: Because great is investors, Maria, have embraced the prospect of higher growth and high inflation under president-elect Trump. And they've done that for two reasons, content and tone. The content of his comments has been to emphasize, to pull growth elements of his program, higher infrastructure spending, corporate tax reform, deregulation, and downplayed the anti-trade element. And the tone, the tone has been incredibly constructive and unifying.
BARTIROMO: Yeah. I think you're right. I mean if you look at the infrastructure plan couple with the lower taxes, and a roll back of regulation, he's promising to spur economic growth. Austan, what do you think about that? How much growth are you expecting as a result of these plans?
GOOLSBEE: Not a ton. I mean, I think, we've had a significant uncertainty that was bearing down in the markets, trying to figure out this question that Mohamed raises, is Donald Trump going to go for that nationalist kind of protectionist agenda, or is he's going to shift if he were elected to a more traditional Republican agenda of, you know, big tax cuts, regulatory cuts. Thus far, he seems to be more going towards the more standard Republican route, but -- we have yet to see this other shoe drop which is how are his supporters, the non-establishment Republicans going to react to the last 72 hours, in which they're taking down a bunch of the big promise on the campaign website, they've named a bunch of lobbyists, and the list of people they're talking about for jobs in Washington are the same old lifetime politicians kind of names. I think we saw when George Bush enacted pretty close to the program that Trump is now describing, big tax cuts, big roll back of regulation that had existed under President Clinton. We did not get a very big jump in growth, you got a little bit, but you know we were going into a recession right then.
BARTIROMO: Wasn't that coupled, Austan, with a whole host of new regulations which did also hampered growth. So, in other words, what you're saying is you don't think lower taxes and the rollback of recreations will lead to growth?
GOOLSBEE: I do not think that giant tax cuts for high income people and corporations lead to rapid growth. That did not happen when George Bush did it. And factually is not true that George Bush increased a bunch of regulation. When he came in, he repealed a whole bunch of the things that Clinton had put in. I think the argument that unpaid for tax cuts are going that are going to grow the deficit will create magic bean stock beans that the grow economy. I think it's been disproven many times. I think they will pass a tax reform of that nature, but I don't think that would have a big impact.
BARTIROMO: So, what do you thing is been wrong with the last 8 years then. How come we're still at just under 2 percent growth?
GOOLSBEE: The reason we've been about 2 percent growth as we talked about many times is we had a large bubble that popped, and economy the can't go back to doing what it was doing before the recession began. And so that involves transforming the main drivers of growth and that's a slow process. And, you know, what we need is the shift of more export, more capital investment, more innovation led growth, and you can't do that overnight.
BARTIROMO: Mohamed, let me ask you about this move in interest rates, do you think that has to do with the worry about inflation, given that we are going to see more spending in terms of infrastructure which Trump has spoken about, or do you think that we're seeing that has to do with the Federal Reserve?
EL-ERIAN: I think we're seeing mainly because of the embracement, as I've said, of higher growth and high inflation. We also are having a redefinition, if you like, of what the Fed is likely to do, and with the markets so calm and with inflation expectations going up, that means the Fed is more likely to hike in December, than what people thought immediately after the election results. And, finally, in the background, there's this concern, and it hasn't come out, and it's important that it stay in the background. There's this concern as to whether a Trump presidency would come after the political independence of the Federal Reserve. So the main drivers now are growth, inflation, to lesser extent the Fed.
BARTIROMO: Yeah. So Mohamed, how do you want to allocate capital there? I mean, when you see what's gone on this week in markets, you know, the bank stocks rallied because their expecting lower regulation, and they're expecting him to dismantle the Dodd-Frank financial legislation, ditto for the drug stocks, we may not see caps on drug prices. And then, of course, you've got the idea that the broader business community benefits from lower corporate taxes.
EL-ERIAN: Yes. So the big move has been in areas that benefit from deregulation, higher interest rates, and infrastructure spending. That is where we have seen massive outperformance, and the underperformance has come from the prior leaders, tech, for example, where the emphasis has dissipated for now. I think you're going get a rebalancing, but -- where the biggest opportunity is, right now, is the rest of the world. Particularly, emerging market currency, they have been hit very hard by concern about protectionism. And if president -- the president-elect does not go down the road of protectionism, that is where the opportunity is.
BARTIROMO: Yeah. I think that's a really good point. So are you saying that you're expecting growth on international markets? Or you're expecting the markets internationally to trade higher?
EL-ERIAN: So a lot will depend on implementation if we maintain, is a big if.
BARTIROMO: Yeah.
EL-ERIAN: . implementing the current content and tone, then I suspect you'll see international markets and emerging markets in particular, recovery on the back of stabilization in that currency.
BARTIROMO: Yeah. It's been a long time coming, that's for sure, Mohamed. Austan, you served on President Obama's transition, now Donald Trump has to make some big decisions to make for his cabinet. Trump just tweeted this, busy day planned in New York. We'll soon be making some very important decisions on who will be running our government. What role will Trump's transition team play on his economic plans? What do you think, Austan? You were there with President Obama, tell us how this plays out.
GOOLSBEE: Yeah. I think it's quite important, actually. You know, particularly, in the context that Donald Trump is not a lifetime Washington figure, by any means. So who he's naming to the transition team, and especially into the major jobs of the administration, they will make a huge difference in both what are they prioritizing, what they do first, and how do they enact the rules. Because, as you know, Maria, there're so many pieces of legislation that we've already passed over the, you know, last 20 years. That's a whole bunch of power into these agencies, so the secretary of the treasury, I know they may try to repeal Dodd-Frank, but if you look at Dodd-Frank designate who the sniffiest are, what the capital requirements, what should be the charges, the negotiations of the Basel accords, the Basel agreements of the major banks in Europe. All of those things are heavily influence by the treasury secretary. So it's going to be very interesting to see what kind of people he puts in the administration.
Mari: You know I feel like one of the reasons we saw this reaction, Mohamed, was because people were looking at his economic plans as a growth plan. Do you see his plan as a growth plan? I know the trade part of it is still being debated and questions. But I thought it was really interesting to hear Canada say, yeah, we're ready to talk about NAFTA, we're ready to redo a deal if that what's it requires.
EL-ERIAN: So it's important that we tweak a little bit, the narrative on trade. For me, it is unambiguous that if we put tariffs against Mexico and China, and if dismantle NAFTA that is Tax inflationary, which is not good thing for the average American, because they suffer both on account of high inflation and lower growth. But if he pursue fair and free trade that's different issue, and I suspect that people will be willing to talk. Also, I agree with Austan, be careful about dismantling things quickly. The U.K. example with Brexit is very important. Don't rush to replace something with nothing. There's a reason why they're going slow on Brexit.
BARTIROMO: Yeah.
EL-ERIAN: . because they want to get it right and it's really important. So, as long as the president-elect avoids antigrowth trade measures, and avoids dismantling things before they are good substitutes. Yes, the growth impulse can continue.
BARTIROMO: What would be your expecting for 2017 economy, Mohamed?
EL-ERIAN: If we continue like that, we can look at 2 to 2.5 percent. And importantly some of the stock like infrastructure spending, corporate tax reform, speaks not to just 2017 growth.
BARTIROMO: Right.
EL-ERIAN: But speaks to potential growth. And that is really important, in an economy that has been suffering quite a bit of headwinds on that account.
BARTIROMO: Sure has. Austan, final word from you, what is your expectation for the 2017 economy?
GOOLSBEE: I still think this kind of 2 to 2.5 percent range, I think the longer run, the jury is going to be out. There are some growth policies, but if all that going to mean is another big run-up in the structural permanent deficit, then I think that would drag back down, kind of, long run growth prospects.
BARTIROMO: Gentlemen, good to see you both. Thanks so much, Austan Goolsbee, Mohamed El-Erian. It was a pleasure, gentlemen. Thank you. Coming up, Americans voting for a 180, Stuart Varney weighs in on the jump from President Obama to president-elect Trump. And then, next, so easy a kid can do it, right. Amazon in trouble this morning for making its app a little too user-friendly. Back in a minute.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. We are 45 minutes away from opening bell for a Friday, markets are looking lower this morning, after what has been a record-setting week. Let's take a look at couple of names on the move, the world largest online shopping event is about to come to an end, Alibaba singles day, the stock is down better than 1 percent this morning, but the online retailer has already shattered the previous $14-billion singles day sales record. Another online retailer, Amazon, losing a court battle after a judge ordered the ecommerce giant to refund parents made by -- for purchases, made by children, without the permission. The stock is up more than 9 percent year-to-date. From President Obama to President-elect Donald Trump, can we expect a complete 180 degree turn for our country. Joining me right now, host of Varney & Co., Stuart Varney weighing in. Stu, good morning to you.
STUART VARNEY, VARNEY & CO. HOST: Well, I sure hope so, Maria, because I don't particularly like what we had for the last 8 years. And I think the answer to your question is yes. I think we are right in the middle of what -- with the starting point of America doing a flat-out 180. Now, we used to the idea that we're going to get tax cuts instead of tax everything. We're used with the idea that we're getting rid of Obamacare. We've got that inside of us. We understand that we're going to cut regulation. We got all of that. But I bring this you, today, Iran has been cheating on the Iran nuke deal, so says the United Nations, if the United Nations says that, I got to figure that Iran nuke deal is toast, and with it a big chunk of President Obama legacy, another 180 there very likely. The Washington Post headline, Obama's big internet policies at risk, that's interesting. I haven't heard much about that. As I understand it, we have relinquished control of what we created, the internet, to a bunch of foreigners. Hopefully we take it back.
And then we have, as I said, the Iran nuke deal, the -- the New York Times, climate policy faces reversal. Does that mean that the Paris agreement is toast as well? This is a 180, I welcome it. I sense a completely new mood, a mood of we can do this. I have real hope for change, Maria.
BARTIROMO: Yeah. I think I agree with you, and add one more thing to your list, Stu, the keystone pipeline is coming back.
VARNEY: Yes.
BARTIROMO: There you go, another 180.
VARNEY: Y felt sorry for Austan Goolsbee. I did. I know he's a very nice guy. I felt sorry for the guy.
BARTIROMO: Yeah. You know, Stuart, he doesn't want to ever admit that the last 8 years, economic story was a failure. You were sitting here at 2 percent growth, and he continues to blame the financial crisis. We're almost 10 years past it.
VARNEY: You can't do that. Come on, get real, Austan. Now, he's a very nice guy, I got a great deal of sympathy for him. Zeke Emanuel, that's another story entirely.
(LAUGHTER)
BARTIROMO: Stuart, we'll see you in about 10 minutes.
VARNEY: You will.
BARTIROMO: Thank you so much. Varney & Co., begins every day at 9:00 AM Eastern, right after Mornings With Maria. So join Stuart in the next 10 minutes. Coming up, made in the USA, and making jobs for our veterans. We'll talk to these footwear companies about how they're helping our heroes hit their stride. Back in a minute.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. It is Veterans Day, we are honoring our heroes this morning. And our next guest combines making a hit flip-flops in the U.S. with hiring veterans. We want to bring in Tommy and Tim Gibb, Tidal New York co-founders. Good to see you, gentlemen. Thank you so much for joining us. Lea Gabrielle, our veteran this morning, with us all morning, and joining the conversation. Good to see you, thank you so much for joining us. Every time we see made in the USA we get excited here. So tell us about the flip-flops, and why you manufacture all of your products in the USA.
TOMMY GIBB, TIDAL NEW YORK CO-FOUNDER: Well, basically, we launched Tidal New York on three simple principles, that could make it here, make it better, and make a difference. And we proved that with better materials, processes technology and talent, and that's where we really leaned on our veterans to help us build our company to what it is today.
BARTIROMO: And I know that, you know, you employ veterans, Lea, when our men and women come back from battle, when they come back from their service, oftentimes they can't find the jobs that they're looking for.
LEA GABRIELLE, FOX NEWS CONTRIBUTOR: That's right. You know, right now unemployment for veterans is really pretty close with unemployment in general. But we're still thousands of veterans who serve their country and come back, and they need jobs. And what I found is that, it's not just that they need jobs, they need jobs that are aligned with their capabilities, and what they've done in their past.
BARTIROMO: So tell us how you address that?
TIM GIBB, TIDAL NEW YORK: So, I mean, just with -- here's a transition is company that we partnered with, that we work on, and they sent -- we work with them on a first veteran employment. And then, since then we've partnered with higher purpose based on NYP actually. And what we find is on our production floor, they are able to employ a lot of those skills that they bring back from overseas.
BARTIROMO: Yeah. So Tommy and Tim, I think this is a great story because of that. So what do you find as some of the best qualities that veterans have, that actually are very relatable to the business world. I mean, like for example, discipline, teamwork, comes to mind.
TOMMY GIBB: And, Maria, what's really important is they care. And a sense of camaraderie, and teamwork, and discipline, it's created a culture at our company that allows us to be very efficient, very progressive, very forward. It's a very cool place.
TIM GIBB: And it's purpose. I mean, that's the thing that they really bring is purpose every day.
BARTIROMO: Yeah, good point.
GABRIELLE: And on Veterans Day, you know, I look at these shoes, and I think about some of our veterans who have come back without legs. And I think about companies like yourself that are working to help our veterans and to support them. Looking at these, I think of my friend Colin -- who can't wear these, but we can wear them for them. And your company can support people like him.
BARTIROMO: Tell us about the limited edition souls-for-service flip-flops.
TOMMY GIBB: So the souls-for-service flip-flops is a limited edition series of shoes that we're presenting now, today, launching on Veterans Day. One hundred percent of the profits will go to heroes in transition, where we raise money for companion dogs for troops coming home with PDST, and it's a really cool project.
BARTIROMO: And you've been partnering with other companies, right. I mean, you're a young company, buy you've already partnered with some iconic brands like Coca-Cola.
TIM GIBB: Yes, all-American brands, all-American artists, they representative America, American culture, where we've been, where we're going.
GABRIELLE: Now, you notice I've just got a lot shorter because I now have a pair of these on.
(CROSSTALK)
GABRIELLE: These from the navy are called shower shoes.
(LAUGHTER)
TOMMY GIBB: Very cool.
GABRIELLE: So, I like them, they feel good.
TOMMY GIBB: Good.
BARTIROMO: Tommy and Tim, great to see you both. Thank you so much, Tommy, Tim Gibb, made in the USA, Tidal New York. Good to see you. Thank you so much. Appreciate it very much. All right, we will be right back with final thoughts from our all-star panel. Back in a minute.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. I want to take this moment to thank all of our veterans out there. We have a number of veterans on our staff right here, Veto, Brian, Will, our lighting director. And of course, Lea Gabrielle with us today, and all the vets that we work with every day, thank you so much for your wonderful service to this country.
GABRIELLE: Well, thank you so much for that, Maria, and thanks for having me. You know, I have four names that I want to mention today.
BARTIROMO: There's Lea right now in uniform.
GABRIELLE: But I want to mention the people I've served with, Trey --, Frank Hooks, David Casher, Nathan White, my wingman who took off and never came back. Those are people who are veterans, our veterans who are serving around the world today in the most dangerous parts of the world, thank you for all of them.
BARTIROMO: Lea, thank you. And thank you Dagen, and Brian good to see you, have a great weekend. Here's Stuart.
END
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(Show: MORNINGS WITH MARIA) (Date: November 11, 2016) (Time: 07:00:00) (Tran: 111102cb.231) (Type: Show) (Head: Transition of Power; Anti-Trump Riot ; The new inductees into the toy hall of fame; one small business is helping and honoring our veterans how made in America flip-flops are helping give jobs to our heroes) (Sect: News; Financial)
(Byline: Maria Bartiromo, Lea Gabrielle, Dagen McDowell, Cheryl Casone, Jared Max)
(Guest: Brian Brenberg, Dr. Ben Carson; Charles Hurt, Rich Lowry, Cheryl Casone, Laura Reese)
(Spec: Government; Protests; Politics; Policies; Sports)
(COMMERCIAL BREAK)
MARIA BARTIROMO, FBN HOST: Welcome back. Good Friday morning, everybody. I'm Maria Bartiromo. Thanks for being with us. It is Friday, November 11 - - Happy Veterans' Day.
Your top story 7:00 a.m. on the East Coast.
A transition of power in our nation's capital -- President Obama and President-Elect Trump promising to work together to make sure the country succeeds.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I want to emphasize to you Mr. President-Elect that we now are going to want to do everything we can to help you succeed because if you succeed, then the country succeeds.
DONALD TRUMP (R), U.S. PRESIDENT-ELECT: It was a great honor being with you and I look forward to being with you many, many more times in the future.
(END VIDEO CLIP)
BARTIROMO: The meeting comes as anti-Trump protests turned violent overnight -- the shocking riot damage and destruction in Oregon to report this morning.
Plus, the company New Balance facing backlash after its CEP throws his support behind the President-Elect -- the fallout as consumers burn sneakers.
Hillary Clinton clearing her head after her historic election loss. The former Democratic nominee runs into a young mother hiking in the woods yesterday.
Looking to get away this holiday season the travel days you need to avoid it so that you do not break the bank to see family this Thanksgiving.
And Snapchat creating quite a spectacle in California, the reaction as consumers flocked to get the company's new glasses.
Futures this morning showing the markets will pull back at the opening of trading. We are coming off of a record setting week, of course. The Dow closed at a record high yesterday and we've got stocks pulling back this Friday morning. Dow Industrials expected to be down about 50 points.
In Europe markets are mostly lower. The FT 100 leading things lower, down better than 1 percent in London. The CAC 40 also weak. However the DAX index in Germany is up one third of 1 percent.
And in Asia overnight, stocks were mixed. Take a look. Hang Seng in Hong Kong worst performer, down 1.3 percent.
Donald Trump not the only major meeting at the White House yesterday. How the world champion Cleveland Cavs used their visit to take on the latest Internet sensation.
All those stories coming up this morning and joining me to talk about it Fox Business Network's Dagen McDowell; business and economics professor at the King's College, Brian Brenberg; and Fox News correspondent, former Navy fighter pilot and intelligence operator Lea Gabrielle.
Lea we want to wish you a Happy Veterans Day. Thank you for your service for our great country.
LEA GABRIELLE, FOX NEWS CORRESPONDENT: Thanks for having me here and people always asked me how do you do it, how do you get through it. And the truth is going to boot camp or anything else it's about the people in front of you, behind you and on each side of you. It's about the other veterans. So Happy Veterans Day to all of the veterans out there today.
BARTIROMO: Yes. Big shout out for keeping us safe and free.
DAGEN MCDOWELL, FBN HOST: Leif Babin when he was going through the Navy Seals training he said you could always tell the people who would not make it when they're like out in the cold surf because they're thinking about themselves and not thinking about everybody else who they are with.
GABRIELLE: Yes.
MCDOWELL: Thinking about the big picture and the mission and thinking internally -- and that's a hallmark of everyone who has served this country.
GABRIELLE: Yes. It's so true. You know, you do things that terrify you. You do things under high levels of stress and I think what really gets -- just keeps you going is the people around you, they're with you, they're doing it -- you know, they're going through it all with you.
And today I just want to celebrate all of our veterans. And I also really want to think about the people that we've lost serving our country because I have a lot of friends who are lost that hopefully I'll be able to name later in the show.
BARTIROMO: Thank you so much for that Lea.
Joining the conversation this morning, former deputy chief of staff to President George W. Bush Karl Rove is with us; the CEO of Murray Energy, Bob Murray will join us; former President Obama economic adviser Austan Goolsbee is here; and Allianz chief economic adviser Mohamed El-Erian, talking markets with us on the global economy.
You don't want to miss a moment of it. We have a big hour coming up.
And we kick it off now with this historic meeting. President Obama welcomed President-Elect Trump yesterday to the White House. Watch.
(BEGIN VIDEO CLIP)
OBAMA: I've been very encouraged by the, I think, interest in President- Elect Trump's wanting to work with my team around many of the issues that this great country faces.
TRUMP: We really -- we discussed a lot of different situations, some wonderful and some difficulties. I really much look forward to dealing with the President in the future including counsel.
JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: Look, the President's views haven't changed. He stands by what he said on the campaign trail. He had an opportunity to make his argument. He made that argument vigorously. He made that argument in states all across the country.
But the American people decided. The election is over. The President didn't get to choose his successor, the American people did.
(END VIDEO CLIP)
BARTIROMO: Yes. The election is over, the people have spoken. We should make sure that the protesters get that message.
I want to bring in former Republican presidential candidate and retired neurosurgeon, Dr. Ben Carson right now.
Dr. Carson, it's wonderful to see you. Thank you so much for joining us.
DR. BEN CARSON, RETIRED NEUROSURGEON: Thank you -- Maria.
BARTIROMO: Let's kick it off with yesterday's meeting. What did you make of it? We were all watching for any awkward moments, knowing what these two have said about one another. But to you think that meeting will help unify the country?
CARSON: It was well coordinated and all the right things were said. The question will be will there be the appropriate follow through. Will they continue to meet? Will there be an effort to make sure that Donald Trump succeeds as President Obama said?
And if that does happen it would be a new day, a new beginning because there have been so many seeds of discord over the last several years.
And we, the American people are not each other's enemies. And yet look at what's going on out in the streets with the riots. Look at the CEO of a company who says, you know, if you supported Trump, you know, send us your resignation.