MARIA-01
Deadly; Trump, Romney Meet; Romney as Secretary of State?; Trump Tweets He
Will Leave Business - Part 2>
Scaramucci>
Business; Employment & Unemployment; Labor; Economy; Disasters; Terrorism;
Lotteries; Wilbur Ross>
Check markets in Europe, they`re off of the highs of the day. The banking sector took some of the steam out of strength in the FT -- the FT100.
But as you see, it`s still up almost one percent. The Bank of England out with stress test results today.
They`re saying that the financial stability in the country remains challenging. And in Asia overnight, mixed performances, very fractional moves there.
New details this morning surrounding the deadly plane crash in Colombia, the evidence that points to a nightmare scenario for those on those on board and remembering the six Fox sports 1 employees on board of that plane. One of the two escaped California inmates back behind bars this morning, the story behind his capture coming up.
Plus, talk about a job perk, how 20 factory workers plan to split the massive $420 million Powerball jackpot. Good for them.
Coming up this morning, Alexandria Real Estate Founder and CEO, Joel Marcus, is with us talking about his plans to create the new headquarters for Uber among others in San Francisco. Former presidential candidate and former Arkansas Governor Mike Huckabee is with us.
American Electric Power President, CEO and Chairman, Nick Akins, is here. Former Trump campaign National Financial Chairman, Steven, set to be nominated for treasury secretary And W.L. Ross and co-founder and Trump campaign economic adviser, Wilbur Ross, set to be nominated for commerce secretary, also joining us this morning. First off, President-elect Donald Trump already scoring a major victory in his fight to keep jobs here in America.
Carrier, a division of United Technologies, announcing its intentions now to move its manufacturing to Mexico. But now, after lobbying from the Trump administration, they reached an agreement to stay in America.
Last night, Carrier tweeted out this, "We are pleased to have reached a deal with President-elect Donald trump and Vice-President-elect Mike Pence to keep close to 1,000 jobs in Indiana. More details soon.
Anthony Scaramucci with us. This is a huge victory, Anthony. Wow.
ANTHONY SCARAMUCCI, FOUNDER, SKYBRIDGE CAPITAL: Listen, a couple of things here. Why wasn`t the Obama administration doing more? This is number one.
BARTIROMO: I agree with you, yes.
SCARAMUCCI: Number two, let`s -- let`s talk about Vice President Pence who`s an amazing guy. I was with him yesterday with Governor Walker.
He`s the one who really negotiated this deal because it`s in Indiana. He still has that purview until January.
So I give these guys huge credit for this. Now, Carrier was going to save $65 million, Maria, by moving these jobs to Mexico.
They`ll find other ways to save that money now. But the really good news here is that you`re going to keep these jobs and you`re sending a message over the next four years about this type of administration, focusing on the middle class and keeping these jobs where they belong in the United States.
MIKE BAKER, PRESIDENT, DILIGENCE: Any sense of what they get -- Carrier gets out of the deal?
SCARAMUCCI: Yes, so -- so it`s interesting, remember, the president-elect has no purview on the federal government at this time. So there was no negotiation like that whatsoever.
BARTIROMO: Right, true.
SCARAMUCCI: This was specifically to Indiana and incentives there for Indiana. But you also have to remember Carrier and United Technologies are getting 10 percent of their revenues from the federal government.
So about $5.6 billion of the revenues are coming from the military and other contracts related to the government. So believe me, they were very keen on making sure that President-elect Trump was happy with this deal.
DAGEN MCDOWELL, FBN CORRESPONDENT: But as leader of the nation, Donald Trump and -- and the people who are behind him in the administration, they need to be focused more in policy and creating broad policies.
SCARAMUCCI: Of course.
MCDOWELL: .that benefit all corporations. He`s not going to have time to negotiate one-on-one one-off deals like this.
SCARAMUCCI: No -- no -- no question. And I -- and I.
MCDOWELL: Business by business.
SCARAMUCCI: .totally -- and I totally.
MCDOWELL: And we don`t want him to.
SCARAMUCCI: .we don`t want him to. But there will be (ph) other people in the administration that will be doing that on his behalf. But I think right now, this is super symbolic.
You have to think about the work ethic of Donald J. Trump. He`s in his home in Mar-a-Lago, making calls over the weekend of Thanksgiving to make sure that these jobs stay in America.
And so this is a symbolic thing, Dagen. And I totally agree with you. We`ve got to get the right policies in place.
And I`m sure Maria is going to have this conversation with the two new secretary appointees that are coming here shortly. But the very, very good news for the American people is that we are now open for business in the United States.
We`re going to get slightly less regulation. People will still be safe and protected. But we`ve got to get the economy growing again so that we can get real wages up.
And if we do that, you`re going to be a very happy camper (ph), as it might (ph).
MCDOWELL: Yes (ph).
BARTIROMO: Just the anticipation of it has really changed things, don`t you think, Dagen? I mean, you`re seeing Apple consider putting -- making iPhones in America.
SCARAMUCCI: Yes, he`s talking to them as well.
BARTIROMO: You`re -- exactly. You`re seeing companies get in line because they know Donald Trump`s stands on this.
SCARAMUCCI: Middle -- middle-class growth manager in chief, Donald J. Trump.
MCDOWELL: And what about the -- the 15 percent corporate tax rate, the real possibility.
BARTIROMO: Huge.
MCDOWELL: .in about a hundred and 50 days that you have a completely different business environment in this country. I think that even individuals look at what is possible in the first few months of this administration.
SCARAMUCCI: And it doesn`t look (ph).
MCDOWELL: And they`re legitimately excited about it.
SCARAMUCCI (?): So.
BARTIROMO: And one by one, economists are raising their growth levels for -- for 2017, anticipating what`s to come. No, I mean, it. I mean, economists are -- they`re anticipating.
(CROSSTALK)
SCARAMUCCI: But all of us have covered the markets for a very long time. It`s very hard for companies to grow their earnings at 30 percent.
Yet, next year, with that sort of corporate tax rate reduction, every company, large and small, will have that opportunity, Maria. And it`s filtering into the stock market, this anticipation.
BARTIROMO: Yes (ph).
BAKER: And it seems like you`re getting more Democrats now leaning towards that 15 percent rate. It does actually look like this is going to happen without much of a fight.
SCARAMUCCI: Right.
BAKER: I think they -- they see that this is the way it`s going to go.
(CROSSTALK)
SCARAMUCCI: Michael, Democrats like that.
BARTIROMO: Yes, well, with the majority in the House and Senate, you would think that this is really -- this is going to happen.
SCARAMUCCI: Time to get out of your limousine, you liberals. You love the.
BAKER: Well, I thought you were talking to me, get out (ph) of my (ph) limousine.
(CROSSTALK)
BARTIROMO: Oh, my god.
SCARAMUCCI: No, no, I`m not talking about (ph) you. I`m talking about the limousine liberals out there.
BAKER: Yes, I`m not getting out of my limousine.
SCARAMUCCI: No, no, they`re loving it, man.
MCDOWELL: Well, Steve Moore (ph) has talked about separating the two -- the individual tax reform from the corporate tax reform and just doing corporate tax reform because again, if you repatriate those profits in an even lower rate than 15 percent, maybe eight to 10 percent, then you have some money for the liberals to spend on infrastructure.
SCARAMUCCI (?): Yes.
BARTIROMO: Yes.
MCDOWELL: So again, they could push that through really quickly.
SCARAMUCCI: I hope it -- I hope it doesn`t happen like that.
MCDOWELL: I -- I agree with you.
SCARAMUCCI: I do -- I do -- and boy, our friend, Stuart Varney (ph) would be really upset if it happens like that. I -- I listen to him everyday on that topic.
BARTIROMO: Well, he wants to make sure that Trump keeps his promise.
SCARAMUCCI: Yes. So I don`t think it will happen like that. And I think this is a really good question for secretary of treasury designee Steven Mnuchin.
BARTIROMO: Yes, for sure. I mean, he`s going to be over saying tax policy. And the tax policy is going to be changed in a big way next year.
SCARAMUCCI: And there`s -- nobody knows that tax policy better than him.
BARTIROMO: Really?
SCARAMUCCI: Nobody. He wrote the -- the whole website. He wrote the whole white paper that we put together.
Steven is a brilliant guy. And I`ve had the opportunity to spend the last six months in the fire pit (ph).
BARTIROMO: And -- and -- but not a politician, never been in government.
SCARAMUCCI: He`s not a politician, yes.
BARTIROMO: .a banker. And you know, the "Journal" story today talking about the fact that, look, Trump is naming a former banker.
SCARAMUCCI: Yes.
BARTIROMO: .as treasury secretary. Is this conflict.
SCARAMUCCI: Well, listen, his 14 years out of being a banker, he.
(CROSSTALK)
BARTIROMO: Well, do you want that?
SCARAMUCCI: Well, but he`s -- we`ll see. You need somebody that has some credibility in the markets.
BARTIROMO: Right.
SCARAMUCCI: This guy controlled -- was on the commitments committee at Goldman Sachs and ran fixed income at Goldman Sachs. So this is a guy -- he`s a brilliant guy.
He`s a poly-math (ph). He did great -- did great in Hollywood (ph).
MCDOWELL: You know, fixed -- fixed income people are nerds which.
(LAUGHTER)
(CROSSTALK)
SCARAMUCCI: Well, look, he`s great. The conversation.
BAKER: He`s a little less nerditatious (ph) than you think actually.
MCDOWELL: Well, I.
BAKER: The conversations that you`re having, to what degree.
SCARAMUCCI: Yes?
BAKER: .do they also revolve around how much pushback individuals may get from the other side of the aisle during the nomination process?
SCARAMUCCI: Well, as it relates to Steven?
BAKER: Yes, Steven and Wilbur Ross.
SCARAMUCCI: No (ph), listen, well, OK, so I actually think Steven`s got a couple of interesting facts about him. You know, he did work for George Soros at one point in his career.
And so I -- I do think that.
BARTIROMO: Steven Mnuchin?
SCARAMUCCI: Oh, yes. I think he`s going to get very easily confirmed. That`s just my opinion.
MCDOWELL: One -- one real quick thing in terms of the puzzle that Donald Trump has put together. So you have Tom Price.
Tom Price is going to run Health and Human Services, look at Obamacare, but he also -- but he`s running the budget committee. He took over for Paul Ryan. So he knows the budget.
He knows tax reform. He`s friends with Paul Ryan. Again.
SCARAMUCCI: Twenty years as a practicing physician.
MCDOWELL: Right. There`s some very important relationships that are kind of woven within this new administration.
SCARAMUCCI: But this is the genius of President-elect Trump.
BARTIROMO (?): Yes.
SCARAMUCCI: He`s really trying to knit a coalition together of people that are like-minded, loaded up with common sense and will bring business together with Washington to make things work.
BARTIROMO: Yes. Great, great analysis.
SCARAMUCCI: And so -- and -- and that`s why the market`s up.
BARTIROMO: For sure, for sure. MORNINGS WITH MARIA will have live coverage and analysis of the November jobs report this week. Tune in at 8:00 a.m. Eastern this Friday for jobs in America.
We`re going to give you the latest snapshot of what`s happening in terms of jobs and what to expect next year. Coming up, an escape came short, one of the two California inmates who escaped from prison last week back in custody this morning.
The ongoing manhunt for the second inmate coming up. Plus the more the merrier, how one group of factory workers from Tennessee planning to spend their $421 million Powerball jackpot, back in a minute.
(COMMERCIAL BREAK)
BARTIROMO: Well, welcome back. The Trump rally goes on. Take a look at the futures indicating another gain at the opening of trading this morning, up 30 points on the Dow industrials right now.
We`re keeping an eye on a handful of names including Facebook, the company adding Instant Games to Facebook Messenger, the games including classics like PacMan and Space Invaders as well as newer ones like Words with Friends.
Instant Games is available in 30 countries. Watching McDonald`s today, the fast food giant set to roll out fresh beef at several more locations, McDonald`s testing the product in stores near Tulsa, Oklahoma after testing it in Dallas earlier this year.
The fresh patties will be used to the (ph) company`s quarter-pounder. We are learning more this morning about the plane crash in Colombia that killed 71 people.
Cheryl Casone now with the headlines and details.
Cheryl, good morning to you.
CHERYL CASONE, FBN CORRESPONDENT: Good morning, Maria. Welcome back to you. Well, investigators say that plane was carrying a Brazilian soccer team and may have run out of fuel before it went down.
The pilots also reported an electrical failure in bad weather before losing radar contact. That airport known to be difficult for even the most experienced pilots because of rough terrain and weather has circled the airport three times before crashing into the side of a mountain.
Incredibly, six people survived. The black boxes have been recovered. A makeshift memorial is growing outside of the team`s home stadium in Champika, Brazil.
And the country has declared three days of mourning. The Fox family is also mourning. Today, six Fox Sports Brazil employees died in that crash.
21st Century Fox Executive Co-Chairman Rupert Murdoch issuing a statement saying that we are deeply saddened to learn about the crash. A fund is being set up in our employees` honor.
Well, to the headlines this morning, an inmate is back behind bars after breaking out of a Northern California prison last Wednesday. Laron Campbell was captured late yesterday after cutting through the bars of a second-story window and using bedsheets to rappel to the ground. Another inmate, Rogelio Chavez remains at large.
Two other prisoners were quickly apprehended. Campbell and Chavez face possible life sentences, have been convicted on a number of charges, including burglary, extortion and false imprisonment.
A group of workers in Tennessee winning a Powerball jackpot of nearly $421 million -- these 20 coworkers at a metal manufacturing plant were going to split the prize, the cash value of that jackpot worth $254 million. That means each person is going to get about $13 million before taxes.
Maria, we always say we`re going to buy lottery tickets together. We never do. I`m on it.
BARTIROMO: Well, we`re going to do it now. Do you think they`re going to keep their jobs?
CASONE: Oh, heck no.
(LAUGHTER)
SCARAMUCCI: Was it two -- was it two of you?
(CROSSTALK)
BARTIROMO: Yes, I love my job. All right, we`ve got -- we`ve got breaking news. Donald Trump is tweeting something right now.
Dagen is watching the Twitter verse. Go ahead, Dagen.
MCDOWELL: He -- Donald Trump`s going to be holding a major news conference in New York City with his children on December the 15th "to discuss the fact that I will be leaving my great business in total in order to fully focus on running the country in order to make America great again." And he`s actually still tweeting because there`s an ellipsis.
And this last tweet, he says, "While I am not mandated to," ellipsis -- I`m assuming he`s still -- still tweeting, but again, that.
BARTIROMO: This is a big deal.
MCDOWELL: .on the -- particularly with Democrats and on the left, they`ve been making a big stink about how he will handle his business and any conflicts of interest and I know you can speak.
BARTIROMO: But -- but this is a real issue. I mean, he -- he needs to make sure that he handles this properly.
We -- we know what went on with Hillary Clinton so.
SCARAMUCCI: I don`t want to sound Pollyannish (ph) but after looking at the issue, I am super confident that on December the 15th, you`re going to see a ring fence around his business. And I think people are going to get very comfortable that at age 70, the only focus for the president-elect is going to be helping the American people and the -- and the nation, the United States.
BAKER: Yes, but that must be enormously complicated when you talk -- we`ve never seen this sort of situation before.
SCARAMUCCI: Well, I`m going to tell you why it is and it isn`t. It is from the optics. But I`m going to tell you why it`s not from a procedural point of view because once he steps completely out and they build these Chinese walls, and I bet in these meetings, and it basically is if you`re with the Trump organization, well, guess what, you`re not going to be speaking with Donald J. Trump anymore.
And if you`re down in Washington, well, guess what, you`re not going to be vice versa. And so -- so they are going to build a very tight structure around this.
And let me tell you something, he means what he says that he`s going to be a hundred and 10 percent focus on serving the nation.
MCDOWELL: He`s -- he`s not going to be able to talk to his kids about it, though, because you know.
SCARAMUCCI: Why?
MCDOWELL: .over -- over dinner, it`s like, hey, how is that -- how is that project going in.
SCARAMUCCI: Yes.
BARTIROMO: Right.
MCDOWELL: .Scotland.
SCARAMUCCI: No question.
MCDOWELL: Not going to be able to talk about it at all.
BARTIROMO: Very -- very important. And this is very different than anything we`ve ever seen because past presidents obviously have put everything in a blind trust. He`s not going to do that here because his kids work there.
They run the company.
SCARAMUCCI: Let`s -- let`s talk about the rules for a second, though. The president is the one position in the Washington where he has a full exemption on all that. Yet despite that exemption, because of the optics, he`s going to do exactly what you just said, Maria.
BARTIROMO: Yes.
SCARAMUCCI: So -- so I`m very, very confident that that`s going to get resolved before the end of the year. And -- and the good news here is that it is a great company.
And he`s got unbelievable people working inside the company.
BARTIROMO: Yes.
SCARAMUCCI: And the more I -- the more I meet with, spend time with his children, I`m reminded of what Vice-President-elect Pence said at the convention.
BARTIROMO: Yes.
SCARAMUCCI: .which is you can`t fake good kids. Remember that?
(CROSSTALK)
BARTIROMO: Yes. Well, there -- there is the tweet.
SCARAMUCCI: These guys are terrific.
BARTIROMO: Interesting that he -- that he chose to do this right now. As Dagen just told us, "I will be holding a major news conference in New York City with my children on December 15 to discuss the fact that I will be leaving my great business in total in order to fully focus on running the country in order to make America great again. While I am not mandated to," still noting (ph).
MCDOWELL: I`m looking.
(CROSSTALK)
SCARAMUCCI: Heads up (ph).
BARTIROMO: We`re waiting for that.
(CROSSTALK)
MCDOWELL: But by the way, you know, some people on the right.
SCARAMUCCI: That`s the point.
BARTIROMO: Dot, dot, dot.
MCDOWELL: Some people.
SCARAMUCCI: He`s not -- he`s not mandated to but he`s going to do it (ph).
MCDOWELL: Maybe that`s the last one. Some people were taught -- even on the right, some real hardcore conservatives, initially talking about how can he extricate himself from any conflict with other than just selling the entire company?
SCARAMUCCI: Yes.
BARTIROMO: Yes.
MCDOWELL: And that just seems (ph).
BARTIROMO: And that`s unrealistic, right?
(CROSSTALK)
MCDOWELL: It seems unfair and.
SCARAMUCCI: This -- this is the type of asset that it`s not like you`re owning 10 million shares of Goldman Sachs, like.
BARTIROMO: Right.
BAKER: Right.
SCARAMUCCI: .Olson (ph) did or something like that. You`ve got an asset that he`s built. It`s a private company that he`s built in over 45 years.
And I think it`s also unfair to his children that they`ve worked so closely with him over the last 15 years to build this asset, to just blow the thing up. I don`t think it`s fair.
BAKER: He (ph) can`t do that.
SCARAMUCCI: .I don`t think it`s fair to anybody. And by the way.
BARTIROMO: Yes.
SCARAMUCCI: .why should we expect him to do that?
BAKER: Right.
SCARAMUCCI: We need more people like him to come to Washington. And so why do that to him and send that message to the business community?
BAKER: Well, that tweet implies or would seem to imply that -- or indicates that he does understand or they understand the importance of this, as you said, the optic of it.
SCARAMUCCI: No question.
BARTIROMO (?): Yes.
BAKER: So hopefully there`s (ph) going to be a very transparent process there.
SCARAMUCCI: No question.
MCDOWELL: And not even optic. I mean, the legitimate conflicts.
BAKER: Yes.
SCARAMUCCI: No question.
MCDOWELL: Look, he`s not allowed to have any conversations about this whatsoever.
BARTIROMO: That`s right. Which is why this is really an important issue.
SCARAMUCCI: There is no question about it. But here is the -- here is the good news. It`s going to really upset the liberals.
He`s going to -- he`s going to do this in a way that`s going to make everybody happy. And that`ll get them upset.
BARTIROMO: Yes. Let`s talk about the other major news in -- in the commercial real estate market right now. Alexandria Real Estate Equities announcing today that pharmaceutical giant Merck has selected the company to construct a brand new research facility on the West Coast, that among others.
We`re also talking about major homes in technology -- Uber, for example, another major business deal that Alexandria is doing. Alexandria Real Estate Equities Founder and CEO, Joel Marcus, is joining the conversation right now.
Joel, it`s good to see you.
JOEL MARCUS, CEO, ALEXANDRIA REAL ESTATE EQUITIES: Always a pleasure, Maria.
BARTIROMO: Thank you so much for joining us.
MARCUS: Thank you so much.
BARTIROMO: We`ve been talking about Donald Trump and of course, his transition team. Before we get to your big news, have you ever worked with Donald Trump?
MARCUS: I have not.
BARTIROMO: OK, because you`re also in -- in such this (ph) important industry of real estate. Congratulations, big deals.
MARCUS: Thank you very much.
BARTIROMO: Tell us about it.
MARCUS: I think it represents Merck, the head of research, Roger Perimutter, actually headed up the quest to set up a R&D center on the West Coast, which is unusual. Usually, it`s the real estate people and organization.
But he took it on himself. It was a pretty intense competition. And we were able to win that based on our ability to deliver historically on time, on budget and to really understand the technical needs of this mission- critical industry.
This is a research facility in the home of where biotech was born near Ginentech (ph) just down the street that will be a place that will serve as a, you know, a.
BARTIROMO: Like a hub?
MARCUS: It`ll be a hub. It`ll be focused like cancer, neuroscience -- some of the most drastic diseases we have challenges to solve.
BARTIROMO: Wow.
MARCUS: So very excited.
BARTIROMO: So is this specific -- specific to Alexandria or do you think that it`s part of what seems to be an improvement in -- in real estate as it relates to commercial?
MARCUS: Well, I think it`s clearly an improvement. If you look at Cambridge, where we have a -- we just closed on One Kendall Square and on two other large campuses right adjacent to MIT, the movement of the top 20 pharmaceuticals into that -- into that cluster and urban environment to access talent and some of the great minds, this is where you really have to be, led by Novartis many years ago, has really become almost an irreversible trend.
BARTIROMO: So exciting, really exciting.
MARCUS: Thank you.
SCARAMUCCI: A little off the field of real estate, the -- the Chinese are going to spend about $300 billion over the next five years in research and development. What do you think we are relative to them over the next five years?
MARCUS: Well, this is the reason -- actually, today is an important day, not only for Alexandria and our earnings and our prediction for next year but also the 21st Century Curious Act, comes to the House next week. I think it goes to the Senate, providing very important -- about $5 billion for the National Institutes of Health.
We are clearly the leaders in innovative research in the biomedical industry. And it`s critical we stay ahead of everybody.
We`re -- we`ve got a far -- we`re heavily advanced over the Chinese.
SCARAMUCCI: I`m -- I`m glad you said that, Joel.
(CROSSTALK)
BARTIROMO: But you`re seeing money go down from the NIH, right? I mean, you need.
MARCUS: This will restore and increase about $5 billion over about about a 10-year period. And actually, if you look as -- I`ve spent a fair amount of time in China.
China has great process. But they don`t have the inventiveness that the United States has.
SCARAMUCCI: No question.
MARCUS: And that`s the big difference.
SCARAMUCCI: No question.
But Maria, you are correct. The sequestration.
BARTIROMO: Yes.
SCARAMUCCI: .did damper it. And we`re trying to get it back in there.
BARTIROMO: Right.
SCARAMUCCI: I mean, I think that`s a bipartisan thing.
MARCUS: It is, in fact, the president announced yesterday that he would sign the bill. It is bipartisan.
In fact, Mitch McConnell mentioned he thinks it`ll be the single most important bipartisan legislation of the entire year.
BARTIROMO: BARTIROMO: That`s correct (ph).
MARCUS: .which is pretty amazing.
MCDOWELL: And it`ll be critical for Tom Price, the -- nominated to run.
MARCUS: Indeed.
MCDOWELL: .the HHS.
SCARAMUCCI: And.
MCDOWELL: .because it`s not just Obamacare. It is Medicare, maybe Medicare reform. It`s the FDA, drug pricing.
And it`s also the National Institutes.
MARCUS: And there`s a billion dollars for opioid prevention and treatment. There is also money for mental health to treat homeless for depression and other neuroscience diseases.
So it is gaining broad, broad support in doing some things we really need to be focused on.