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SEBASTIAN GORKA, DEFEATING JIHAD AUTHOR: Good morning, Maria, nice to be back.
BARTIROMO: What's your take on what's happening ahead of Thanksgiving with all this new worry?
GORKA: Well, the NYPD is doing what it does best, it has created a world class intelligent organization for counterterrorism, and they're taking these threats very seriously. So the ISIS publication -- had this article on how to do a Nice type attack, and ISIS has demonstrated already. That low investment plots like this one can bring very high yield returns in terms of people killed and the fear that it spreads, so it's classic insurgency and the powers to be are taking this threats very seriously, Maria.
BARTIROMO: Has Donald Trump mentioned to you soft targets, what would he do in the face of these soft target upsets and worries?
GORKA: Well, you know, this is a very tactical issue, so ISIS, al-Qaeda, the global jihadi movement, that's a strategic issue's. This kinds of things are of the tactical level, it's not what president-elect would be dealing with for a day-to-day. He's made it very clear to me when we met that this is a -- a burning threat to the United States. He takes it very seriously, and he wishes to destroy groups like ISIS. On the other hand, we leave this work here in the United States for the professionals who are embedded in those communities, and who get the intelligence, and act on it as soon as possible.
DAGEN MCDOWELL, FOX BUSINESS NETWORK: Sebastian, its Dagen McDowell. In terms of more aggressive policing in this country, in terms of identifying the enemy, radical Islamic terrorism, and going after that in the way that when -- here in the New York City where the current mayor has backed away from what was happening in mosques, will we see more of the potentially, particularly with Sessions as the attorney general?
GORKA: If you listen to the key speech by President-elect Trump from Philadelphia, also his Gettysburg speech, the message is very clear. With the age of political correctness is dead. There's going to be no more censorship of the threat. When the enemy says we're a Jihadi, we've get to call them Jihadist, as of January 20th. So, the really effective human intelligence programs that the NYPD developed, in which Mayor de Blasio is trying to shoot down. Those are exactly the kinds of programs we have to have effectively expand on the Federal level as well.
BARTIROMO: It's a good point, Dr. Gorka. Yeah, go ahead, Mike.
MICHAEL BLOCK, RHINO TRADING CHIEF STRATEGIST: So, Dr. Gorka, how exactly is the Trump administration going to compel, go override folks like Mayor de Blasio, who are taking this softer approach, what is that involves? Is it extra governmental -- what needs to happen here?
GORKA: Well, look, I'm not going to talk for President Trump or the transition team. President-elect Trump or the transition team, but there is lots of potential tools that can be done. Number one, there's the rhetorical one. He is the commander-in-chief as of January 20th. That is the person who is mandated to protect American citizens, whether they lived in Manhattan, or whether they live in Alaska, so that's number one. It's the power of the presidential pulpit. Secondly, there's all kinds of issues that refer to Federal funding, most of these cities that want to maintain sanctuary status on immigration, or illegal immigration, or other national security concerns, they get a lot of money from Washington. Well, they should think twice before they say we're going to ignore what the president or the White House wants, because there could be fiscal ramifications to that.
KAT TIMPF, FOX NEWS CONTRIBUTOR: So much of this is also just psychological, they didn't have to do anything if they just say, oh, watch out parade, they do something like this. A lot of people are really afraid about something like that.
GORKA: Well, look, that's the nature of terrorism. Terrorism uses fear to exert pressure, and to coerce a population, or the representatives of their population. But, remember, there will be a new sheriff in town, January 20th, and the message will be clear. We're going to be friends to our friends, and our enemies are put on notice that there is a new boss in the White House.
BARTIROMO: Yeah. But I think you're hitting on something really interesting. I mean, when you look at what Mayor de Blasio has said and Rahm Emanuel has said, they're just ignoring the, you know, what Donald Trump is saying with these sanctuary cities. So, do you think that that's going to continue Dr. Gorka? I mean, what happens now that Donald Trump is being, you know, a harder on immigration laws, these laws have not been acknowledged in years.
GORKA: Not only that, this administration on the Federal level has -- of border patrol had stopped them from doing their work effectively. So there will be consequences after the inauguration very clearly. Look, I think Donald Trump was elected mostly on a message of national security. People are afraid -- you know, there's issues like Obamacare and everything else, but this is a national security election. And if you have mayors who say, well, we don't care, we're going to keep doing business as usual, they will pay politically for that with their own constituencies as well. So this is a new dawn in America, and those mayors, those chiefs of police need to wake up to the reality.
MCDOWELL: Just really quickly, there is a way to withhold Federal funding from these cities. Now, some of the Federal funding is mandatory, but you can withhold. And Jeff Sessions have talked about this very thing, about prosecutions and withholding funding for these cities. So a city that is broke like Chicago, what are you going to do? There is a way for this administration to put pressure on these sanctuary cities to basically follow and enforce the national law in terms of immigrants.
BARTIROMO: Yeah, I mean.
GORKA: Let me say one thing, let me say one thing, just look at the cabinet picks, OK? There is not one milquetoast individual amongst them. And that's the new political reality. If you want to play fast and loose with the security of America, and with the safety of American citizen, there will be political prices to pay for that as of January 20th.
BARTIROMO: Yeah. You're absolutely right. Dr. Gorka, good to see you, thanks so much.
GORKA: Thank you.
BARTIROMO: Sebastian Gorka there. Coming up next, do not mix family and politics, Stuart Varney will tell us on why he's not dishing out a piece of his mind at the Thanksgiving Day table this year. Plus, next, Amazon facing possible shipping delays during the busiest shopping season of the year, the trouble brewing at a major packaging hub ahead of the holidays. Back in a minute.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. We're 45 minutes away from the opening bell for a Wednesday. Take a look, the Dow Jones Industrial Average exactly unchanged in the futures. Of course, yesterday, the market went above 19,000, first time ever. We did get a strong reading on durable-goods orders this morning, up 4.8 percent in the month of October, much better than expected. Take a look at some stocks on the move this morning, Deere shares soaring up 11 percent right now, coming of better than expected earnings, despite broader concerns about demand for foreign equipment. Deere also saying that revenue will not decline next year as much as expected. The news helping lift the stock, caterpillar as well, we will see some movement there.
Amazon holiday season off to a rocky start, nearly 250 pilots who fly cargo carriers for a company that ships Amazon products, they're striking until they come to an agreement with their employer, the airline professionals association now saying that Amazon shipments could be delayed. Keeping cool at the dinner table this holiday season may be harder in the wake of the presidential election, to -- all our family disputes is the host of Varney & Co., Stuart Varney. All right, we're having these debates this morning, what the heck are you going to say at the dinner table tomorrow.
STUART VARNEY, VARNEY & CO. HOST: OK, I'll tell you, I've got some advice.
BARTIROMO: Yeah.
VARNEY: When your guests walk in the door, the first thing you say is no politics at the dinner table. Do what you like when meal is over, when the turkey is consumed, when the bird is done, you can walk away into another room and do what you like, but around dinner table no politics. Would that work in yours house, Maria?
BARTIROMO: I don't think so. I don't think I can't help myself. I'm not going to be able to help myself.
(CROSSTALK)
VARNEY: We're planning two separate dinners, different rooms, OK. Let's get that very clear.
TIMPF: People not drink during dinner though, because it's the drinking that will get you.
(LAUGHTER)
VARNEY: Well, you know, I'm sure there are a lot of families approaching tomorrow's big lunch with some trepidation, a little anxiety, because passions are still running very, very high.
BARTIROMO: For sure.
VARNEY: And it's very rare to get some extended family that all agrees on one side of the political aisle or another. So I think it's high anxiety time.
BARTIROMO: What should we talk about, Stuart? Remember that SNL skit that people were talking about Adele, everybody like the Adele song.
VARNEY: How about weather.
BARTIROMO: OK.
VARNEY: Traffic, the commute, the new baby, the divorce. (CROSSTALK)
TIMPF: The weather is going to turn into a thing about global warming, and how it's all about Trump's fault. We're not protecting the -- I mean.
(CROSSTALK)
TIMPF: Yeah, exactly.
MCDOWELL: Stuart, I only get upset when people say things about somebody in politics that just aren't true. Like, if you want to say something that has been said or done that's true, then that's fine, whether it's is something that pro-Hillary or anti-Trump, it's when they get off into the territory of garbage that they've read on the internet that a friend, of a friend, of a friend put on Facebook. That's where I.
BARTIROMO: So, what are you going to say?
MCDOWELL: My head blows up.
VARNEY: No, I'm sorry, I don't like all of this now. I'm sorry. If one person says to me that they don't want a tax cut, and I shouldn't get a tax cut, one person says one word like that and this dinner is over.
(CROSSTALK)
BARTIROMO: I knew it, I knew it, you're just like me. You're not be able to help yourself, Stuart. You're saying you're going to avoid politics, you're not going to be able to help yourself.
MCDOWELL: You're hanging out with the wrong liberals though, Stuart. Because I know a lot of people who voted for Hillary and they're like, she didn't win, but guess what, my taxes are going.
(LAUGHTER)
MCDOWELL: That's why we're friends.
VARNEY: I'm going to be deep in the heart of Massachusetts for my Thanksgiving lunch, so that's dangerous territory, isn't it.
BARTIROMO: Yeah, that's right. And I will be in Connecticut.
MCDOWELL: I don't know, a lot of working class union guys in a hot union guys in Massachusetts who voted for Trump probably.
VARNEY: You're invited, Dagen, come on up, OK.
BLOCK: Make sure you wear your make America great again hat.
VARNEY: Yes.
(CROSSTALK)
BARTIROMO: That would be a good idea.
VARNEY: You know, Maria, I think I struck a nerve with this conversation.
BARTIROMO: Yeah, you did.
VARNEY: I think, I'm on to something.
BARTIROMO: I love this conversation, Stu. All right, well, listen, you tell us the truth after thanksgiving if it actually came up, because I want to know if you were able to hold yourself to not talk about it.
VARNEY: We'll see about that.
(LAUGHTER)
BARTIROMO: Stu, we'll see you in about 10 minutes.
VARNEY: Sure.
BARTIROMO: . thanks so much. Varney & Co. begins top of the hour, 9:00 AM, right after Mornings With Maria. Join Stuart in the next 10 minutes. Plus, Eli Lilly abandoning its once promising Alzheimer's drugs, having the stock plummeting in the premarket, the implication for the rest of the pharma industry. Back in a minute.
(COMMERCIAL BREAK)
BARTIROMO: Breaking news this morning, the pharmaceutical sector, Eli Lilly shares are plunging, they're down 15 percent, after the company announced it is abandoning its Alzheimer's drug, after a late stage study failed to reach its goals. Joining us right now is Barclay's analyst, Jeffrey Meacham. Jeff, thanks so much for joining us, your reaction to what's happening this morning?
JEFFREY MEACHAM, BARCLAY ANALYST: Thanks, Maria, for having me, and happy Thanksgiving.
BARTIROMO: And to you.
MEACHAM: It's a disappointment that the solanezumab data failed. There weren't many investors that were thinking this was going to be a big driver for Lilly, clearly, it was something that was assumed in the stock here, but there is a fundamental case beyond -- and Lilly CNS business.
MCDOWELL: In terms of the other drugs that are under development because solanezumab -- and correct me if I'm wrong on this, Jeff, there were earlier negative studies on it, on this particular drug, and negative studies on these amyloid busters if you will. So how many other drugs by other companies would be impacted by this decision?
MEACHAM: I think by far and away investors will look to Biogen. So Biogen has a drug Aducabumab which is in several phase three programs, it is a beta amyloid antibody, it acts a little bit differently though, it's without getting too much into weeds on the science that binds a clusters of data amyloid as opposed to -- or a single protein beta like -- like Lilly's Solanezumab. But beyond though, there are a lot of other exciting mechanisms of action on Alzheimer's, so you have a mechanism called a base inhibitor, which inhibits production amyloid beta. They're also other mechanism that looks at -- targets such as -- Alzheimer's. So still a lot of innovation to come, and clearly sola was the latest stage, was the -- you know, was the most mature phase out there.
BLOCK: Jeff, other than Biogen, are there public companies to watch that are involved in development here?
MEACHAM: So Merck is the only other one that is in later stage, and Biogen's partner, as well. But Merck base inhibitor, you know, could have some data in the second half of next year, beyond that there are a couple smaller companies in the biotech, Alzion is one, and the Biotech space. But for the most part though, the pharma and large cap Biotech that are really the bigger players here.
BARTIROMO: Jeff, they're all plunging this morning, is this move warranted, do you think this is right reaction?
MEACHAM: You know, I think clearly there is some sentiment perspective, the stock should be down. I wouldn't be surprised to see Lilly rebound a little bit because, you know, there is -- as I said there is still a lot of innovation in the pipeline in industry itself, but for Lilly in particular though, this company can still grow, you know, revenue in the 5, 6 percent range for the next several years. So there is clearly a fundamental case beyond sola.
BARTIROMO: And in terms of Alzheimer's in general, I mean, where's the hope here?
MEACHAM: You know, I would say though, one of the biggest uncertainties here and we'll see at this -- there's a medical meeting called the CNAC meeting which is on early December in San Diego, but we'll see whether the new technology which is called a pet imaging, so you can actually -- in real time, you can determine if patients beta amyloid, and that was a new trick that Lilly used in their trial, is to figure out -- you had to have a positive pet scan test to go into the study. So, we'll see if that technology played a major role here. If it didn't, may be back to the drawing board for beta amyloid antibodies, but perhaps technology that could be used down the road.
MCDOWELL: It is, just broadly speaking, because everybody is touched by Alzheimer's.
BARTIROMO: Yes.
MCDOWELL: . with millions of people suffering from it. Jeff, there isn't a drug to slow the progression of the actual disease, there some that treats symptoms, but not actually slowing the disease yet.
MEACHAM: That's exactly right. And that's why these drugs were really unique in that they targeted what's called -- or mild patients with Alzheimer's. So they have some cognition defect -- some cognition pathologist that weren't quite very, very severe patients. But as I said, there are a lot of other novel mechanisms that are coming out, the problem is that they're just much earlier stage.
MCDOWELL: Right.
BARTIROMO: What about Prevagen? I see Prevagen advertise a lot.
MEACHAM: Yes. So a lot of the drugs out these today, they are drugs approved, the issue is that they treat symptoms of the disease, and for the most part they've been developed for more later stage patients.
BARTIROMO: All right, Jeff, great insights. Thanks so much for joining us this morning, Jeff.
MEACHAM: Yes, you're welcome.
BARTIROMO: We appreciate it, Jeff Meacham there, Barclay's. Coming up, final thoughts from our all-star panel. Back in a minute.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. Final thoughts from our all-star panel, Kat Timpf.
TIMPF: Don't fight about politics with your family over Thanksgiving. But, If you're going to, fight to win.
BARTIROMO: There you go. Michael Block.
BLOCK: Sure. The Russell 2000 up 12 days in a row, before that you have the S&P down 10 days in a row, everyone is feeling your fork now, all-time highs every day. I'll say that moves like this, the price is up, but not only that, but all the movement is dysfunctional of itself, increase the probability of.
BARTIROMO: Are you a seller, bottom line?
BLOCK: Yeah, I'm a seller.
BARTIROMO: OK, thank you.
BLOCK: There it is.
BARTIROMO: Dagen.
(LAUGHTER)
MCDOWELL: If you need to escape any tension at the dinner table, go watch the grand tour with the tree top gear host that Amazon has put together, the first episode is out, and it's so awesome.
(CROSSTALK)
BARTIROMO: From all of us, we're wishing you the best, safest and wonderful thanksgiving. Thank you so much for being with us this entire year and have a great thanksgiving. Thanks for our great panel.
"VARNEY & CO." begins now, over to you, Stu.
END
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