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Hillary Blasts "Fake News"; PE Trump Picks Gary Cohn To Head National
Economic Council; Trump Inauguration Preview; War On Labor Unions; Trump
Vs. Unions; Olstein Warning To Iger; Dow Nearing 20,000; Major Averages Up;
Trump Plane Lands In LA; Remembering John Glenn - Part 2>
Cortes, Eileen Collins>
Los Angeles; Andy Patzer; Barack Obama; Bob Olstein; Bob Bieger; China;
John Glenn, Asia; Congress; Consumers; Economy; Government; Financial
Services; Media; Policies; Politics; Stock Markets>
REGAN: All right, Boris Epshteyn, we're looking forward to it all and we'll continue checking back in with you.
EPSHTEYN: That's going to be fine.
REGAN: Thank you so much.
EPSHTEYN: Thanks.
REGAN: All right, everyone, Donald Trump there, he's about to speak in Baton Rouge, Louisiana. He has been declaring war in labor unions with his Labor secretary choice of Andy Patzer. And the unions, they're not taking this one lying down. They're blasting the choice. They're saying he doesn't care. Andy doesn't care about workers. But hey, maybe they're just mad because this president cares more about the actual workers than their labor union bosses. We're on it, next.
(COMMERCIAL BREAK)
REGAN: All right, everyone, the battle between Donald Trump and unionized labor, organize labor it's heating up. Following Trump's comments about local Indiana union boss Chuck Jones, the President-elect announced his pick for Labor secretary. And it happens to be fast-food millionaire union critic, Andy Patzer. That spark a big, big storm from the liberal media right now.
In fact, take a look at this one, "The Washington Post's" writing, "Trump era confronts organized labor with gravest crisis in decade."
The gravest crisis in decades, I mean, don't you think it was like a little bit dramatic considering he announced Patzer's nomination less than 24 hours ago? Ned Ryun and Jessica Tarlov are back with me.
Ned, what is it that the left disliked so much about Andy?
RYUN: Well, there are couple of things to remember though on this conversation, Trish. First of all, this is not a fight with union workers. This is a fight with the union bosses.
The union workers, let's remember 68 million of them voted for Trump in Pennsylvania, and Wisconsin, and Michigan. So, this is not a fight with the union workers, it's a fight with the bosses, who again, are the ones that are raising all this money up for its due from the union members and then turning around and using them against us, conservatives, Republicans politically.
So, you know, I love the fact that Trump has done this with the Labor Department. And I do think what could happen is again, he is going to undercut and undermine the credibility of union bosses, which could have -- not only implications in the short term but also politically for the future.
REGAN: I think it's -- the whole thing is fascinating to watch because we've talked repeatedly about how those union workers were really left behind. And it's one of the reasons why Hillary Clinton failed to win in this election.
RYUN: Right.
REGAN: She did not appeal to them. But, Jessica, there is this growing divide here where you see Donald Trump appealing to the workers themselves, but there are those holdouts to people that are running those unions and running those shops that are, you know, they've been big supporters of the left because the left has supported them, but it's often coming at the expense of the workers themselves. How did that need to change now?
TARLOV: Well, I think that there's no question the Democrats needs to do some soul-searching about our union appeal going forward. And Donald Trump did do well in those Rust Belt states because of union labor.
I take issue with the President-elect, you know, taking aim at Chuck Jones over Twitter in that way. I think it's juvenile and petty. I think it's beneath the office to do it in that way.
I think what Chuck Jones was doing which was to help tell his workers, he represents those people at Carrier that no, we were not getting 1,100 jobs that are going to stay in America, it was actually 730. That's just a fact, something that Donald Trump has a lot of trouble dealing with.
Moving on to .
REGAN: Well, you know, all right. But before we move on, let Ned get in there.
RYUN: First of all, those 700 jobs would have been gone.
TARLOV: It doesn't -- but, Ned, that is not my point. My point is about telling the truth. I am thrilled that even one American has a job at Christmas time that wasn't going to have it, but when the President-elect is lying when he is saying and it's like higher, what do you think?
RYUN: I think what Trump has been able to do -- before he's even really in office of the president, President-elect, has been able to do more for the American worker in a short period of time than Obama ever did during a year.
TARLOV: That is a .
RYUN: It's completely true.
TARLOV: Such a divisive, aggressive talking point to say that. I mean, Barack Obama has overseen 74 straight months .
RYUN: That's not true.
TARVLOV: What do you mean it's not true?
RYUN: We've seen stagnant wages. We've seen stagnant wages. We've seen economy that's in the Goldman Sachs .
REGAN: Can I jump in for a second? I needed to .
TARLOV: Yes, sorry Trish.
REGAN: No, no, no, it's fine. I think what you are saying is very interesting. But as we talked about facts and we introduce some more into the equation here, the reality is when you look at those jobs numbers and you look at the unemployment number overall and the jobs being added, you know, a lot of those jobs are part-time jobs. And Ned is right.
RYUN: That's right.
REGAN: Wages have not budged in, budge more than 20 years. And so, yes, Obama oversaw the creation of a lot of jobs. But a lot of those jobs were not full-time jobs and they certainly weren't jobs that you could take care of a family on. And so that's what we really need to recognize.
And throughout Trump's administration, we need to be equally critical. It's one thing to add 200,000 jobs that are part-time if you're adding 200,000 that are full-time, that is more meaningful and we need wages to go up, Jessica.
RYUN: Exactly right.
TARLOV: I don't disagree with that. I mean this is something we've been talking about. I think that the left shoots themselves in the foot with the $15 minimum wage ask. I think that's something that economists have even gotten behind. We need to be more reasonable.
But when you look at something like the appointment of his new Labor secretary, this is someone who opposes the minimum wage increase which is 70 percent plus of Americans support as well as overtime pay, he's gone after Obama's overtime rule and we'll see what happen. I mean just say .
REGAN: Can I ask a question here? Just in terms of minimum wage, I mean, $15 an hour, I've got to tell you, $15 an hour in Baton Rouge, Louisiana is going to go a whole lot further, Ned, that it would in New York City, I mean, should we allow the states to be able to determine some of this?
RYUN: Well, I mean, here's the thing, at some point, the people providing the jobs simply can't afford $15 and make a profit. So, you got to go with the market leads, not trying to arbitrarily enforce a $15 minimum wage. So, you're right. I mean, different parts of the country $15 goes a lot further than .
REGAN: Yeah. I think it's kind of irrelevant, you know, when you talk about a federal minimum wage. I mean, you know, look 15 bucks in New York City .
RYUN: It doesn't work in some places.
REGAN: . is completely different than on Iowa.
TARLOV: That's something that I totally agree with. But when you're talking about the fact that we're at seven and a quarter, when economists over 600 has support, including a lot of Nobel Prize winners, I know that (inaudible) talked of me, but I think it is important have supported 10-10 in Senate Democrat and Hillary Clinton were advocating for 12. Why, when 70 percent of Americans are saying we do not earn a living wage, why can't we have that conversation on the right? That's what I do not understand.
REGAN: Look, I think we are going to have that conversation.
RYUN: I think we are.
REGAN: And I think you've seen some indications from Donald Trump that his willing to entertain that conversation. People do need to make more money. I don't know if you need the federal government enforcing it in that way, but there's going to be a solution somewhere.
We're going to continue here waiting for Donald Trump to come to the stage in Baton Rouge, Louisiana. I want to thank Ned and Jessica. We seem to think his plane has not yet touched down but -- it could touch down any moment. He'll be coming to that stage.
Legendary value investor Bob Olstein meanwhile warning Disney boss, Bob Bieger against buying Netflix. Here's what Bob had to say on this very issue. Take a listen here.
(BEGIN VIDEO CLIP)
BOB OLSTEIN, CEO OLSTEIN FUNDS: Would let oranges the new black? And they have some good product there but they're still losing a lot of money. Would you rather own "Star Wars", "Mooner", Frozen, Donald Duck, let's go on.
So basically this Bernstein analyst and I'm -- it's incredible that this research industry says Disney could take a 30 percent hit to their earnings and it would be fine. I find that is absolutely incredibly ridiculous.
(END VIDEO CLIP)
REGAN: You know, Bob is a really smart investor and he actually drafted a letter, sends a letter to Bob Beiger which you are going to hear the contents of exclusively tonight on Wall Street Week. So very important, any Disney investors and anybody is looking to put some money in this market right now. He had a ton of ideas for how you can benefit from what people are calling the Trump rally. Make sure you tune in tonight, Wall Street Week. It's happening at 9:00 p.m. Eastern. And we'll have more right after this.
(COMMERCIAL BREAK)
REGAN: All right, let's check out this rally. Look at this. We are getting closer and closer and closer to 20,000 there on the Dow, nearly 19,700, up 80 points, S&P trading higher by almost four-tens of a percent, NASDAQ Composite index higher by 15.
Shares of Coca-Cola, they're rising right now, one of the biggest gainers on the Dow. This after reported that the CEO Muhtar Kent would be stepping down next year and will be replaced by the company's COO James Quincey.
And the whole sale businesses cutting back their inventories a half percent, that's the largest drop we've seen in eight months but sales rose in October one and a half percent. This could boost demand for factory goods in the months ahead. We hope.
"The Intelligence Report" is going to be right back and we have more on these markets as we get closer and closer and closer to Dow 20,000. See you here.
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REGAN: Wow, another record day. Anther record breaking day for these markets as get closer and closer to 20,000 now on the Dow. Are we going to hit the number by the New Year? We could. We certainly could.
All of this as we get a report showing that barely half of 30 year olds are earning more that their parents did at that age. What's been going on with this American dream? And we can we turn it around right now?
I'm joined right now by BGC Partners senior strategist Steve Cortes. You know, I've brought that study up, Steve, because I think that this is one of the reasons why people voted for Donald Trump. I think a lot of Americans were very scared about the path we are on economically. And they want to do something and wanted to do something to divert us from basically going into no man's land for their children's sake. Is that fair?
STEVE CORTES, BGC PARTNERS SENIOR STRATEGIST: Trish, I think it's completely fair and completely accurate. You're exactly right. One of the hallmarks really, almost the foundation of America, of our culture is that we've had an inheritance of optimism. We've always believed with every justification that our children will live better than we will and their children better than them.
Unfortunately, we've broken that chain at least in terms of expectations lately. And that's a tragedy and something that we have to reverse and we can reverse by the way.
I think this is emblematic of a bigger problem though, which is that if you're the top of the food chain economically, you've had a great century so far in the 2000s if you own a lot of stocks of real estate. But that's a very small number of people. For most Americans who are strivers, who are wage earners and most young people fit in that category, this has been a tough slot. You've haven't had a pay raise in two decades. And if you don't own assets you're really struggling just to stay, just to keep pace with where you already are.
So, we need to reverse that. How do we do it? Tax .
REGAN: Tax is -- yeah.
CORTES: . cuts, deregulation.
REGAN: I hear you. And it looks like we're going to get that. But let me explore this a little bit more with you, Steve, because .
CORTES: Sure.
REGAN: . what I think has gotten so badly out of whack and, you know, I think the income inequality stuff, I'm not worried (ph) about that argument. I think it's a political argument. I think, you know, hey, you don't want to be Bangladesh, right? They have no income inequality in Bangladesh because everybody is just poor.
CORTES: Right.
REGAN: But at the same time, we have basically lost or there's become increasingly this disconnect between labor and capital. And so, those with capital they can benefit in an environment that doesn't reward labor at all. And how do we bring that back into sink right now?
CORTES: Right. Trish, no, it's a great question. And I think it's the crux of the Trump ballot revolution by the way. It's that again, the system that we had constructed, right, which I should say Washington, D.C. has largely constructed for its own benefit. It's the system of largely crony capitalism where you're exactly right. It does benefit management and it does benefit shareholders for that matter, but not the worker at the basic levels. And, so what can we do to fix that? Better trade deals, smarter trade deals. We need to demand the reciprocity with countries like China.
REGAN: OK, explain that. So, in other words, if we say OK, you can sell here but how does that work?
CORTES: Right. So, in other words, with China when it comes to trade -- and by the way, I think, you know, with the terms of fair, we compete with anyone in the world. The American work was incredibly productive. So with China, when we play a home game here in terms of trade, we allow them to bring their full team over. When we have to go and play there, it was a football game, we say know what, we'll only play eight players instead of the 11 that we should because they are not open to our products and services anywhere near to the degree to which we are open to theirs.
So, I think President-elect Trump is going to demand reciprocity. If our markets are open to you, yours have to be open to us. And in that case the American worker benefits because the American worker will hustle and will compete.
REGAN: Yeah. I think that's the fair and the right way to do it. You know, I got a quick story to tell and the viewers. You know, there's a tire company that operates in China and operates in the Midwest here in the United States, and they're paying the workers about a buck 50, in China they're paying -- sorry the Musslar (ph) Company, and they're paying those workers here in the U.S. 25 $30 plus benefits, et cetera. But this company decided that, you know what, the workers in the U.S. work that much better. It didn't matter that you could get workers at a buck 50 because the productivity was so lousy over there in China that it negated itself.
So, I agree with you that people -- workers here in the U.S. they really represent a lot in a way of productivity, et cetera. I do want to get to this live picture just coming into us right now. Donald Trump's plane has landed.
Now, those people have been waiting for quite a while there in Louisiana, in Baton Rouge. They -- thousands of them, about 5,000 are waiting for him to come and speak. He was expected to speak a while ago, couple of hours ago, looks like it's finally going to happen now.
Any thoughts on what he should be saying, what he needs to say, if he continues this thank you rally tour?
CORTES: Right. I'm so glad he's doing this. And by the way, I had to say a something who was deeply involved in the campaign. I miss these rallies. I miss these events, so I'm glad that he's still doings some.
But here's why I think they're important. It's not just for show. The American psyche, I think, has been wounded by slow growth. And it's, by the way, not just during this administration of Obama, same thing happen during Bush. Again, most Americans have had a bad century in the 2000s in terms of their economic picture.
So, I think the psyche is in credibly important here. Part of what Donald Trump is doing is he's firing up confidence and it matters. You know, your policies matter absolutely but it also matters animal spirit. The economy is largely a game of commerce. If we can convince people that the future will be brighter for their children as it always has been in America until recently, if we can convince some of that, then they take risk, then they invest, then they hire people.
So, I think this is incredibly important to what he's doing. He's not just traveling around only to rile up crowds, there is some fun and there is certainly some, pageantry to it. But what's it's really about I think is resuscitating American optimism.
REGAN: Confidence. I hear you. You know what? That was one of the problems I think we've had for the last eight years. I used to say, can Obama just say something a little bit nicer about the economy, can he make us feel a little bit better? But there was so much hesitation in terms of the policies that he would enacte, that CEOs just didn't want to invest, and people weren't feeling so good.
I can tell you right now as we look at the market that's about 300 points away from 20,000, a lot of people in corporate America are liking what they are hearing, and they are feeling more optimistic. So, we hope that that optimism continues.
Steve, good to see you. Thank you so much for joining today.
CORTES: Thank you, Trish.
REGAN: All right, we are continuing here to wait for Donald Trump. His plane just touchdown moments ago there in Baton Rouge, Louisiana. He's going be taking to the stage where he's speaking before about 5,000 people.
Look at this here. This is an American flag at the White House which was just moved to half staff to honor John Glenn. John Glenn, who, of course, paid the way for space travel as the first American to orbit Earth in 1962, a mission that changed the world. The astronaut and former Ohio senator died in his hometown of Columbus yesterday, he was 95 years old.
Here to help us remember the life of a true American hero is the first woman to command a space shuttle and the prot‚g‚ of John Glenn, Eileen Collins.
Eileen, welcome. So good to have you here.
EILEEN COLLINS, NASA ASTRONAUT: Good afternoon.
REGAN: Tell us about John Glenn. What's your favorite memory of him?
COLLINS: Well, I remember John Glenn is being -- he was very wise. He's very intelligent. He had a lot of courage. He had a calming sense about him. He could calm people down in the room. He was very knowledgeable, very mission-oriented. So, he knew exactly what he needed to do on the mission if he stayed focused on that. He wasn't distracted. And he was the kind of person that I wanted to be like.
When I was a child, I read about the Mercury astronauts. I read about the Gemini astronauts. And John Glenn of course was such a wonderful role model. I learned about his life, learned about the kind of person he was and I -- like many other astronauts of my age, we would strive to be just like him.
REGAN: Wow. He was your prot‚g‚, what is that that he was able to give you that is still instrumental in your life today, Eileen?
COLLINS: Well, I actually got to know him when he came to NASA in 1997, '98 when he flew in the space shuttle. I remember little stories about him for example, when he was presented with the medical experiment, you know, he was to be the oldest person to fly in space. And the NASA medical researchers had all of the -- they had probably a dozens, hundreds of experiments they wanted to do on him. Well, he volunteered for everything, which of course he couldn't -- they have to tell him you can't do all that because there just isn't enough time.
So, he, you know, I admired his ambition. I admired his dedication to the mission. He wanted to do as much as he could. And he wasn't just there for himself to brought attention to himself. He really wanted to do the right thing for the space program and I think that's something that all of us should, you know, try to emulate and try to be like him.
REGAN: Absolutely. When was the time you saw him, Eileen?
COLLINS: I saw him in -- when the Discovery was -- of course we retired to space shuttle back in 2011. One year later in 2012 when we rolled Discovery into the National Air and Space Museum, John Glenn was there, he gave a talk. He never wanted to retire to space shuttle, he wanted to keep flying them. The original plan was to fly to 2020 with his space shuttles, but of course because of the last accident we decided to shut the shuttle program down.
John Glenn didn't agree with that. He wanted to continue flying the shuttles, and there's, you know, pros and cons to that. And he talked about at his speech at the Air and Space Museum.
His vision was not very well. He was telling us that he was losing his eyesight. And at that time, he would have been about 92 years old, but he was still very strong, very sharp, and he gave a great speech at the end of the shuttle program.
REGAN: Well, pretty remarkable guy for sure. Thank you so much.
COLLINS: Yes, we're going to miss him.
REGAN: Yeah, we will. Eileen, it's so good to have your perspective on him and his legacy. We appreciate you being here.
COLLINS: Yes, thank you for asking.
REGAN: All right, everyone, we're continuing to wait for Donald Trump. He is about to take the stage in Louisiana. His plane just touched down moments ago.
I am joined again by Jessica Tarlov, who had done a critic thus far, but you say you're keeping an open mind about everything.
TARLOV: Yeah.
REGAN: What is it that he could say that would really reassure you right now, Jessica? Take a .
TARLOV: I'm not sure. I reassure and says at this point, I need to see what he does policy wise when he gets in there. There has been a lot of rhetoric on this campaign that's been concerning for me obviously, especially concerning minorities, and women, and things like that .
REGAN: Let me jump in there, because, you know, he actually has appointed a lot of women .
TARLOV: He has. And we have, you know, Ben Carson in charge of HUD, not a position that I actually would have pick him for, but having an African- American in the Cabinet. You know, I mean, Donald Trump, he used to be a liberal, right? So, there are things about him that are going and actually more appeal to Democrats than one might think.
I just want to see what he does, how he governs but also really his tone and I mentioned that in our earlier segment with you. I don't like the personal attack on Twitter and not just, you know, being .
REGAN: Well, that's in part of what's there, right? I mean, I saw that tweet that was directed at Chuck Jones and I thought, oh my goodness, he's taken on the union bosses now.
TARLOV: Yeah, over Twitter.
REGAN: But, you know what, Jessica, someone needs to take him on.
TARLOV: Yeah, I think that there's an appropriate way to do that, or a more appropriate way to do that. Listen, that is his style, that is, you know, what 60 million plus Americans wanted. But there are also 60 million plus Americans that wanted something else, and then a whole bunch that didn't vote at all.
So, I think going forward, the real concern is can Donald Trump really govern for all us America .
REGAN: Can he unify?
TARLOV: Absolutely.
REGAN: And, you know, he's got his work cut out for him. But I'll tell you, one big unifying thing Jessica, and that's economic prosperity.
TARLOV: It's is, absolutely.
REGAN: And if people feel as though they have a future economically, if their job is safe, if they're making more money, if their children have opportunity, if their children are being better educated because hopefully there will be more choice now, then people will come together in ways that you may never have thought. I mean, you think about how divided, right, Jessica, we've been to the last eight years.
TARLOV: Absolutely. Well, I think, it's more than the last eight years. We're not going to blame this all on Barack Obama and I only have him for another months plus, so I'm going to smile and talk him up this much as I possibly can.
But to your point about, you know, it's the economy stupid. There was a really interesting study on the American dream came out on "The New York Times" yesterday and said that, if you are born in 1940, I believe it was you had a 79 percent chance of doing better than your parents. And those of us born in 1980 and after only had a 50 percent chance of doing better than our parents. And I think that was a critical factor in this election .
REGAN: You know, we were just talking with Steve Cortes about that very steady.
TARLOV: Yeah.
REGAN: I think it's -- it is pretty important we talked about this disconnect and this is something that I think resonates with a lot of Democrats, the disconnect between labor and capital. And how labor has been so disenfranchised and someone needs to do something to really start to get people back to work. And not just only engineering job, but in jobs that, you know, you can get at out of school, out of high school and still hopefully be able to earn a decent living.
TARLOV: Well, definitely. I think for both sides to support more vocational training, not everyone has to go to a four-year college, it's silly to do that, and that's something that I think the leftist has an issue that we can own Hillary Clinton talked about it a bit. But, you know, that free college tuition, free college, that's not going to work at this point.
REGAN: Well, I also think that, you know, there's a chance that you could really start to see these parties remake themselves and that people are not going to be as labeled as they previously were. Jessica, it's so good to see you.
TARLOV: Yeah. Thank you so much, Trish.
REGAN: Thank you for joining for the hour. Again, everyone, President- elect Donald Trump is going to be taking to the stage there in Louisiana. He's also making a few more stops along the thank you tour today. We're waiting for him here in Louisiana any, moment from now. Tonight he's going to be speaking in Grand Rapids, Michigan. We got complete coverage tonight with Lou.
In the meantime, Liz is taking you from here.
END
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