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Dr. Carson issuing a statement on the nomination saying, quote, "I feel that I can make a significant contribution, particularly by strengthening communities that are most in need. We have much work to do in enhancing every aspect of our nation and ensuring that our nation's housing needs our met."
President-elect Donald Trump has not taken office obviously. But he's already making waves on the international scene. His latest Twitter tirade taking aim at China, following the country's criticism of his decision to take a congratulatory call from the president of Taiwan.
(BEGIN VIDEO CLIP)
MIKE PENCE, U.S. VICE-PRESIDENT-ELECT: I think most Americans and frankly, most leaders around the world know this for what it was. And -- and it's all part and parcel.
I think -- I think you're going to see in a President Donald Trump a willingness to engage the world but engage the world on America's term.
(END VIDEO CLIP)
BARTIROMO: The very latest this morning as the president-elect plays defense. A 14th person confirmed killed from devastating wildfires in Tennessee this morning.
Country music legend Dolly Parton is planning a telethon for the victims. We've got the details on the horrific story as these fires keep on burning. Clothing controversy at 30,000 feet, why American Airlines employees are demanding changes to the company's new uniforms.
They say the uniforms are getting them sick. Global markets this morning once again rallying another populist victory in Europe and the markets are up. Italians are rejecting political reforms.
And the country's prime minister has resigned. European markets are rallying. Take a look. Concerns are still remaining about the health of the Italian banking system and the impact there.
Those stocks are sharply lower. However, it's not stopping a big rally in -- in Germany, up one and a half percent, a hundred 54 points higher as investors speculate that money will come out of Italy and find a home in Germany.
We're also watching the currency market this morning. The euro is off of the lows against the dollar. But it is plainly and firmly in negative territory.
The dollar is higher this morning. And the euro is down. Futures, meanwhile, in the U.S. looking for a big rally for stocks this morning. The U.S. is taking a cue from Europe.
The Dow industrial is expected to open up about 80 points, one-half of one percent higher. Dido for the NASDAQ -- it's up 23 points right now.
And in Asia overnight, different story there. Markets were lower across the board. Worst performer was China, the Shanghai composite down one and a quarter percent.
Trading in surfboards for snowboards -- parts of Hawaii under a winter storm warning this morning. We will tell you about the wild weather in Paradise Island coming up.
Trump versus China -- the president-elect under fire this morning for speaking with the leader of Taiwan. He took a call from the leader of Taiwan on Friday.
But Republican leaders defended the conversation. Watch.
(BEGIN VIDEO CLIP)
FORMER REP. NEWT GINGRICH (R), GEORGIA: Under the old establishment, the old timid State Department, the old rules, we would have turned down the phone call on the grounds we didn't want to offend the dictatorship in Beijing. Trump said, hey, she wants to talk to me, I'll talk to her.
He doesn't need (ph) any diplomatic gestures except he's actually talked with the freely elected leader of a country.
MIKE PENCE, VICE-PRESIDENT-ELECT: It's striking to me that President Obama would reach out to a murdering dictator in Cuba and be hailed as a hero. And President-elect Trump takes a courtesy from a democratically elected president of Taiwan and it becomes something of a thing in the media.
(END VIDEO CLIP)
BARTIROMO: This reaction Sunday morning as you just saw as Trump slams China for keeping its currency artificially low and for its military posturing in the South China Sea. This is what he tweeted overnight.
"Did China ask us if it was OK to devalue their currency making it hard for our companies to compete, heavily tax our products, going in to their country -- the U.S. does not tax them -- or to build a massive military complex in the middle of the South China Sea? I don't think so," he wrote.
Joining me right now is former Nebraska Senator Bob Kerrey.
Senator, good to see you.
FORMER SEN. BOB KERREY (D), NEBRASKA: Nice to see you.
BARTIROMO: Thank you so much for joining us.
KERREY: You're welcome.
BARTIROMO: Trump's conversation was the first time a president have (sic) spoken to the leader in Taiwan since 1979. Your reaction?
KERREY: Well, it's been a part of a -- of a general policy of engagement with China. So it's a remarkable change.
I mean, if it's -- if it's intentional, he intentionally want to change the policy towards Taiwan. There's a case to do that actually, the case to -- to make that -- to take that call because I understand, it was -- it was an associate of Mr. Trump who arranged for the call.
So if it's -- as I said, if it's intentional, that's OK. But if it's just one of those deals where OK, let's -- let's go ahead and do it because I want to do things differently, it becomes a problem.
Maybe we've gotten now (ph) -- we have to now wait for the reaction of China. It's -- it's -- it's fair enough to be tough on Twitter.
But if China reacts, then what do we do?
BARTIROMO: How might they react?
KERREY: Well, they can react a number of ways. They'd be a lot more aggressive militarily in the -- in the South China Sea. They've been aggressive already in the South China Sea.
And the question is (ph) do you really want to go to war with China.
BARTIROMO: Wow.
KERREY: You want a physical war with China? I would answer that question, no. And by the way, to the other tweet that he put out, a 35 percent tariff on American companies that go overseas, I mean, his own daughter buys everything overseas.
Does that mean you're going to put a 35 percent tariff on -- on Nike shoes? I mean, I favor cutting the corporate tax and cutting regulation, the infrastructure stuff that he's talking about.
But this doesn't make it easier to get all that done. This makes it much more difficult to get all that done.
BARTIROMO: Dagen?
DAGEN MCDOWELL, FBN CORRESPONDENT: In terms of -- what's interesting what Peter Navarro (ph), one of Trump's advisers has been on -- on this program, and he has -- he pushed for cabinet-level visits to Taiwan and -- and to kind of the U.S. bowing in the work (ph) of "The Wall Street Journal" editorial page to Beijing's One-China policy. So it's not out of the realm that this was intentional.
But it's just hilarious how people in the media get the vapors (ph) every time Trump breaks with some (ph) protocol even in a small way because that's what his campaign was about. And why people would be surprised that this would happen, and even happened on Twitter -- what he says on Twitter, I'm kind of mystified.
(CROSSTALK)
KERREY: Well, this isn't -- this is not an inconsequential change in policy. I mean.
MCDOWELL: right.
KERREY: .you can't just say, well, this isn't just some (ph) I'm going to change the color of the -- of the -- of the carpeting in the White House. That's a significant change in foreign policy.
(CROSSTALK)
BARTIROMO: But is it a change in foreign policy or is it just a phone call?
KERREY: Oh, well, that's a good question. I don't know. I mean, I don't know what the -- what these -- what these Twitter messages mean at all. I mean.
(CROSSTALK)
BARTIROMO: Or was it just telling China.
KERREY: .you should tell me.
BARTIROMO: .sort of putting some pressure on China?
KERREY: Well, isn't (ph) -- does it put pressure on China? I don't know. If you want to change the policy and put pressure on China, change the policy and put pressure on China.
My problem is that when you send a Twitter message that you're not even president yet, you're going create a reaction that you're going to have to deal with it sometime (ph).
BARTIROMO: Yes.
KEVIN KELLY, CHIEF INVESTMENT OFFICER, RECON CAPIATL: Senator, I do think it -- I think it does -- I do think it does put pressure on China. And one of the reasons why is you can actually see President Trump -- elect Trump met already with the Japanese.
And one of their big focal points is the South China Sea that you brought up. Then he takes this call as well.
So I think he is sending a direct message to China. And they're hearing it loud and clear, and the message also with the tariffs.
I mean, they -- should he start doing tariff policy against them which Wilbur Ross was on the show and told Maria they're not going to do tariffs?
BARTIROMO: Well, that's the thing. This isn't (ph).
KERREY: Well, wait a minute. You -- I keep hearing that. I keep hearing, well, he's not going to -- he said it but he's not doing to do it.
BARTIROMO: He said he's using it as a tool.
(CROSSTALK)
KERREY: Right. It's more than a tool. You're threatening (ph) to put a tariff.
BARTIROMO: That's what Wilbur Ross told us last week. It's a tool.
KELLY (?): Yes.
KERREY: .you're threatening to put a tariff on -- on companies that have jobs overseas. That's what you're saying you're going to do.
It's not -- it's not just I'm trying to negotiate with companies. It is actual declaration. He's made it before.
He believes in putting a tariff on manufacturing products that come back into the United States of America.
(CROSSTALK)
BARTIROMO: That will be a big problem.
KERREY: Not only (ph) a big problem (ph). It's terrible policy.
BARTIROMO: Yes -- no (ph).
KERREY: And you imagine, you're sitting on a board of a company trying to decide whether or not to do that sort of thing, whether or not to try to lower your costs and increase your demand (ph).
KELLY: But you remember when Mario Draghi came out and actually was talking (ph).
KERREY: Mario Draghi -- what does he have to do with it (ph)?
KELLY: No, no, but what he said, he -- he saved the foreign Bomarc when he said he will do whatever it takes. And he didn't have to do one thing.
KERREY: What -- what does a foreign Bomarc (ph) have to do (ph).
(CROSSTALK)
KELLY: No, I'm just saying.
BARTIROMO: You're saying he's just using this as.
KELLY: Yes, this rhetoric, it just starts.
(CROSSTALK)
MCDOWELL: That's -- that's nothing (ph).
KELLY: .starts like for you (ph), for (ph) -- brings people to the table, right?
(CROSSTALK)
KERREY: These people (ph), the last eight years, Republicans correctly went after President Obama when he exceeded his authority with executive orders. And now, you're defending a similar sort of action.
KELLY: No, no, no, I'm just saying he brings people to the table to talk.
(CROSSTALK)
BARTIROMO: But if he's just talking to companies, if he can.
KERREY: It doesn't bring people necessarily to the table. It creates tremendous uncertainty in corporate America who -- who have these kind of investments overseas.
BARTIROMO: Look, we all know that the S&P 500.
KERREY: And I think it also makes it more difficult to get a very difficult agenda. As a Democrat, I support cutting corporate taxes.
As a Democrat, I support setting regulation (ph). As a Democrat, I support it.
KELLY: They're great policies.
KERREY: But this makes it harder, not making it easier.
BARTIROMO: Senator, are you sure he's not just.
KERREY: .because he's basically embracing Bernie Sanders' message.
BARTIROMO: Right. But is he just talking to companies that want to create a new factory and move into Mexico and then try to get their products back in the U.S.?
Obviously, the S&P 500 -- all 500 companies have -- have businesses overseas -- well, most.
KERREY: Yes, but we -- we've got (ph) -- we do have corporate taxes that encourages American corporations to consider leaving the United States of America. We saw Monsanto trying to buy Syngenta and were turned down mostly by Democrats who accuse him of wanting an inversion.
So what happens? Bayer buys Monsanto. And that's OK. Donald Trump's not going after Bayer.
He's going after Monsanto for creating (ph) -- for importing into the United States. It's OK if you're a foreign country importing into the United States.
But if you're a U.S. company with jobs overseas, that's a problem in his mind.
BARTIROMO: Does he understand this, Dagen? Does he understand the implications of this 35 percent tariff?
MCDOWELL: If actually applied, no.
KELLY (?): Yes.
MCDOWELL: I think that it -- I think that it is a very dangerous threat to American companies.
BARTIROMO: Yes, yes.
MCDOWELL: .because the -- the real key to keeping jobs in the United States is ensuring that American companies are profitable. And if a CEO decides.
BARTIROMO: Yes, that's right.
MCDOWELL: .that I need to make the lass in my shoes overseas because I can't do it and actually so good.
BARTIROMO: Yes.
MCDOWELL: .and by the way, if costs go up, it hurts the end consumer. And that is the very pores of the.
(CROSSTALK)
BARTIROMO: But you would think as a businessman, he understands this.
ROBERT WOLF, CEO, 32 ADVISORS: The best -- as a businessman, the best way to attack China is actually to be pro-TPP because then you are trading with all the Asia-Pacific rim and China's not part of it.
BARTIROMO: Well, I don't know about that. I don't -- yes, I know but I don't know about that. That's not -- that's not why he was elected.
WOLF: I know but that is my part of it. I understand that (ph).
(CROSSTALK)
BARTIROMO: I mean, he was elected because he pushed back on TPP.
WOLF: No, everyone's pushing back on trade. But the truth is, to have a protectionist environment is not necessarily the best way to go about it.
BARTIROMO: Yes.
Bob, final words?
WOLF (?): Yes.
KERREY: Look, I'll just say, particularly, Fox needs to push back on this proposal. I don't -- I think it's not good when you say, well, he doesn't really mean it.
He's just -- it's a -- it's a signal of some kind. He said it. And.
KELLY: I think he admits (ph) it's just a tool. I think.
MCDOWELL: No, it's not a -- it's dangerous.
KERREY: It's a declaratory statement.
KELLY: But it is.
BARTIROMO: It's a declaratory statement.
KERREY (?): It's dangerous.
(CROSSTALK)
KELLY: You just can't -- you can't let it stand (ph).
WOLF: Listen (inaudible) very proud (ph) when they say he uses his 25 million followers in Twitter and Facebook to get his messages out. You can't have it both ways.
This is how he gets his messages out. So you have to take it at -- take it at face value.
BARTIROMO: Yes, yes.
KERREY: It's been a pleasure.
BARTIROMO: Bob, good to see you. Senator Bob Kerrey, always -- always.
KERREY: It's that time of the day.
WOLF: Is there a reason we're on the left side here?
KERREY: Not to the viewers, we're not.
MCDOWELL: Yes (ph), exactly.
BARTIROMO: Bob Kerrey, always a pleasure to have you, sir. Thank you so much, Senator.
KERREY: Thank you.
BARTIROMO: Coming up next, country music legend.
WOLF: Great to see you.
BARTIROMO: .Dolly Parton lending a hand to victims of the devastating Tennessee wildfires, the details on her fundraising efforts, next. And uniforms threatening to ground (ph) American Airlines -- why employees are demanding a recall of the new uniforms.
That is next. Stay with us.
(COMMERCIAL BREAK)
BARTIROMO: Well, welcome back. Hot market today, take a look. We're expecting a big rally at the opening of trading this morning.
Dow industrial is expected to be up a hundred points, even though we got the no vote this weekend, the no to the referendum Renzi resigning in Italy. A couple of stocks watching -- that we're watching this morning -- Credit Suisse -- the company reportedly could cut up to 1,300 additional jobs in Switzerland as part of a cost savings program.
It's been on the cost-cutting move for months now. On announcements on the job cuts, expected later this week.
Credit Suisse shares are down 38 percent just this year as you can see by that chart. Also keeping an eye on Coach this morning, the company is reportedly trying to acquire luxury brand Burberry.
Burberry reportedly rejected all offers up until this point. Shares of Coach are up over 18 percent year-over-year.
It's had a pretty good year so far. Well, police arrested a man with an assault rifle at a Washington, D.C. restaurant this weekend that was targeted by fake news story.
Cheryl Casone with the details here.
Bizarre story, Cheryl.
CHERYL CASONE, FBN CORRESPONDENT: Its' bizarre and troubling, Maria. Police say that the suspect told him he was investigating a conspiracy theory that he'd read about, that claimed Hillary Clinton was running a child sex ring out of a pizza restaurant called Comet Ping Pong, a road (ph) restaurant -- this restaurant, the target of fake news stories before the presidential election.
And while they've had threats, this was the worst. Twenty-eight-year-old Edgar Maddison Welch from North Carolina taken into custody after he pointed his rifle at an employee who managed to get out and call police.
Police found two guns inside the restaurant and another weapon in the suspect's vehicle. There is video from the scene that you're seeing there.
Well, a heartbroken Dolly Parton, a Tennessee native, is coming to the aide of victims of the Tennessee wildfires, the country singer organizing a telethon to support victims of the great Smoky Mountain wildfires in Sevier County, Tennessee. The singer said that all the money raised will go to her My People Fund.
She started that just last week. By Saturday, the fund had raised more than a million dollars. Remember that she grew up in this area, the Smoky Mountains, did a movie about her life there.
The telethon scheduled for December 13. It will be in Nashville.
Well, American Airlines is having a very weird problem with the new uniforms that it recently rolled out. The uniforms maybe making their employees sick.
Thousands of employees have been complaining of severe itching, rashes, headaches, even hives after they put on the new clothes. The airline launched an internal investigation and initially said that it seemed like it was likely due to wool allergies.
The union representative of the flight attendants demanding (ph) a complete recall of those uniforms, even though the employees seem to like them.
And finally, this (ph) Hawaii, the destination for sun, surfing, a lot of beaches but snow -- that's what's happening now, at least when it comes to the mountains. More snow is expected to fall with a winter storm warning in effect today in Hawaii, yes.
Forecasters say as much as a foot of snow might fall, blowing and drifting snow.
Strong wind gusts are predicted for the top of two major mountains just outside of Honolulu, Maria so you know, so much for that Hawaiian vacation.
BARTIROMO: Yes, that's incredible actually. Thank you, Cheryl.
CASONE: You bet.
BARTIROMO: Coming up, shopping for a change, how the real estate industry is coping with the declining popularity of malls. We'll get into it next. Back in a minute.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. Are malls really dying or just changing? It is that time of the year again when retailers are at their busiest.
But with a lot of consumers turning to online shopping, are in-store purchases and buildings -- buildings that those retailers occupy becoming a thing of the past? We're talking about it right now with the chairman of the International Council of Shopping Centers, Liz Holland is with us.
And we have the vice chair of ICSC, Kenneth Bernstein, here with us.
Good to see you both. Thank you so much for joining us.
KENNETH BERNSTEIN, VICE CHAIRMAN, INTERNATIONAL COUNCIL OF SHOPPING CENTERS: Thanks.
BARTIROMO: So how would you characterize malls right now, Kenneth? What's the state of the retail real estate industry?
BERNSTEIN: So remember, enclosed (ph) malls are one component of the overall retail shopping universe in the United States, which includes supermarket, anchor (ph) shopping centers. My company -- we focus on primarily street and urban retail in the major gateway cities, open air.
And overall, retail is doing very well. Our retailers are very happy. And it's been a good season.
BARTIROMO: But -- but Liz, when we look at how people are shopping, we keep coming up with this idea that malls are less and less of an option or, you know, a desire for people. How do you see it?
ELIZABETH HOLLAND, CHAIRMAN, INTERNATIONAL COUNCIL OF SHOPPING CENTERS: No, I don't think that that's.
BARTIROMO: You don't think it's true?
HOLLAND: I think it's a misnomer. I mean, you know, in excess of 90 percent of the purchases are still made at -- in physical locations.
And so it's really a function of the fact that at the holidays, your best option is always going to be to go to a shopping mall. And it really, as we talk, depends on where you are and what you are, as to whether or not, you know, you're (ph) -- you meet the needs of the market that you're in.
BARTIROMO: So in urban centers, I mean, malls don't really work in New York City obviously or -- or in -- or in L.A., or do they?
HOLLAND: Well, I mean, they work in Chicago.
BARTIROMO: OK.
HOLLAND: I mean, Water Tower Place, you know, Northbridge. There's some very successful urban, enclosed shopping centers.
BARTIROMO: Where are you seeing the most activity right now, Kenneth, in terms of the retail real estate business, going into the holidays right now?
BERNSTEIN: So -- so what you're going to see both this year and then in the future, it's about omni-channel. It's about retailers recognizing that they needed bricks and mortar presence, whether it's on certain key streets in Chicago or in your local shopping center.
So they will use online as a piece of and as part of converging with their bricks and mortar. But we also have many tenants who were traditionally only online now coming into our property.
BARTIROMO: I feel like some people, they check prices. They check availability online. But then they like to actually go and feel and try on, right (ph)?
BERNSTEIN: One size doesn't fit all.
BARTIROMO: Yes.
BERNSTEIN: For some people, they'll first browse online and then go into the store. Or they'll go into the store and execute online.
For the retailer, what they need to make sure is that they are providing the opportunity, whether it's online or in bricks and mortar.
BARTIROMO: Yes.
BERNSTEIN: But the reality is the bricks and mortar component for so many of our retailers, if not all.
BARTIROMO: You've got.
BERNSTEIN: .it's critical.
BARTIROMO: .you've got to be everywhere.
BERNSTEIN: Yes.
BARTIROMO: And to the point, though (ph), isn't (ph) that right, Liz?
HOLLAND: It's an omni-channel world. And so the retailers that are really going to do well with consumers are the ones that are going to be able to access their customers online, in the store and really provide them with the experience they're looking for.
BARTIROMO: One trend that we've seen -- we're seeing, Kenneth, specifically in the tri-state area, office buildings are being turned into industrial spaces due to red home (ph) warehouse market, driven by the rise of e-commerce. Like even Amazon, they're not building bookstores.
But they're building, you know, a space where they can actually hold goods and make it easier for their own, you know, transporting of -- of goods.
BERNSTEIN: Right. Well, bottom line is great real estate in the right hands with the right capitalization gets transformed. And that's the beauty of our business.
It always is changing. But as long as the right people are doing the right things, there's use for it. And that's an example.
BARTIROMO: So characterize commercial real estate for us in general right now because a lot of people say that prices have gotten away from them. It's expensive.
We're in this bubble-like mentality once again. How do you see it?
BARTIROMO: Well, in the short run, interest rates matter. And the markets sometimes confuse REITs (ph), which were publicly traded with bonds or utilities. We're not.
In the long-term, if we are in an improving economy and that's why interest rates are going up, then that has proven over any extended period of time that real estate is a very good investment.
BARTIROMO: So you don't think higher interest rate's going to choke off the activity that we're seeing in -- in real estate investment trust?
BERNSTEIN: I don't. We use very little leverage. So it's certainly not going to affect our borrowing costs.
It'll create volatility. It's going to create opportunities. We like that. And then if there's economic growth, that's great.
BARTIROMO: Real quick, Liz, do you think we're going to have a good holiday in terms of spending?
HOLLAND: I absolutely do. I mean, you know, the -- the number of days in this year's holiday season has gone up to 53 over 31 last year so.
BARTIROMO: All right, we'll leave it there. Liz, Kenneth Bernstein (ph), we'll be right back.
(COMMERCIAL BREAK)
BARTIROMO: Good Monday morning, everybody. Thanks so much for being with us. I'm Maria Bartiromo.
END
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(Show: MORNINGS WITH MARIA) (Date: December 5, 2016) (Time: 07:00:00) (Tran: 120502cb.231) (Type: SHOW) (Head: Secretary of State Search Widens; 33 Bodies Found Oakland Fire; Dr. Carson for HUD; Tough Decisions Ahead; Prepaid Overdraft Changes; North Dakota Pipeline Permit Denied ) (Sect: News; Domestic)
(Byline: Maria Bartiromo, Dagen McDowell, Robert Wolf, Cheryl Casone, Andrew Napolitano, Jared Max )
(Guest: Kevin Kelly, Rep. Chris Collins, Tom Farley, Jeff Flock)
(Spec: Politics; World Affairs; Fires; Stock Markets; Donald Trump; Government; Protests; Supreme Court; Sports; Italy; Fires; Death )
(COMMERCIAL BREAK)
MARIA BARTIROMO, FBN ANCHOR: Good Monday morning everybody. Thanks so much for being with us. I'm Maria Bartiromo. We're happy you're here. It is Monday, December 5.
Your top stories right now at 7:00 a.m. on the East Coast.