MARIA-01
Massive Data Breach for Yahoo; Police Force in Indiana Quit; Amazon Makes
First Drone Delivery; Delta CEO on Biz; Amazon Drone Delivery Success;
"Rogue One" in Theaters - Part 1>
Banking; Europe; Policies; Amazon; Delta Airlines; Rogue One>
(BEGIN VIDEO TAPE)
UNIDENTIFIED MALE: Truly amazing group of people. I won't tell you the hundreds of calls we've had, asking to come to this meeting. And I will say -- Peter was sort of saying, "No, that company is too small," and he's amongst the companies.
(END VIDEO TAPE)
MARIA BARTIROMO, FBN ANCHOR: A closer look at how the president-elect will work with business, coming up.
A deep freeze sets in across the country. Dangerously cold temperatures affecting 100 million Americans from the Pacific Northwest all the way to New England. Freezing rain and snow causing chaos in Portland, Oregon. We have the forecast coming up for you.
And another massive data breach for Yahoo to report. The company disclosing a new hack, affecting 1 billion accounts. What you need to know if you have a Yahoo account, coming up.
Calling it quits. An entire police force in Indiana, walking off the job. We will tell you what happened straight ahead.
And Amazon flies high. The retail giant making its first commercial drone delivery.
Plus markets looking to rebound from yesterday's fed field selloff. Future's indicating a strong open for the market this morning. Take a look, Dow Industrials up about 50 points. As you see, the Nasdaq and S&P also higher this morning.
In Europe, investors are waiting on the Bank of England this morning. A decision expected this morning. We will bring you to -- bring it to you as soon as it hits the tape.
Meanwhile, you've got the DAX index of two-thirds of a percent. CAC quarantes in Parise up three-quarters of a percent, and the FTSE 100 in London down a fraction.
In Asia, overnight markets were broadly lower, the exception, the Nikkei in Japan continues to rally. The Nikkei up a fraction, staying in positive territory near yearly highs. In Hang Seng down one and three-quarters percent in Hong Kong.
It is finally here, Star Wars Rogue One hitting theaters today. We have a sneak peek later on this hour, and we promise no spoilers ahead of that.
All those stories coming up this morning, and joining me to talk about it, Fox Business Network's Dagen McDowell.
Former Arkansas Governor and presidential candidate Mike Huckabee is here. And from our Goldman Sachs Peter Kiernan. Good to see you.
PETER KIERNAN, CHIEF FINANCIAL OFFICER, KIERNAN VENTURES: Nice to be with you.
BARTIROMO: Good morning.
MIKE HUCKABEE, FORMER ARKANSAS GOVERNOR: Good morning, Maria.
BARTIROMO: So nice to have you on set, governor.
HUCKABEE: Great to be back. Thank you.
BARTIROMO: And I like your holiday tie.
HUCKABEE: Well, I only get to wear it occasionally, so here it is. It's better than a Christmas sweater.
MCDOWELL: And I wore red for you.
HUCKABEE: Thank you.
MCDOWELL: So that you wouldn't call me a sourpuss.
HUCKABEE: Thank you, darling. You always wish to do the right thing by me. I appreciate it.
BARTIROMO: We have a lot coming up this morning.
MCDOWELL: We argue but we love each other.
BARTIROMO: The technology meeting, quick observations.
HUCKABEE: Amazing that all of these people who were so against Donald Trump and said some of the most horrible things, and he assembles them in the room and has this wonderful discussion with them. I think Donald Trump is truly a transformational president. Yesterday, we saw a little piece of that.
BARTIROMO: Yes. We want to talk more about that, coming up, because some debate about who was sitting at the table --
HUCKABEE: Yes.
BARTIROMO: -- as well, to get into this morning. We will do that.
Coming up, joining us, the CEO of Delta Air Lines is with us, Ed Bastian here. Forbes Media Chairman, Steve Forbes, also with us.
Senior communications advisor for the Trump transition team, Sean Spicer, RNC chief strategist as well. And former chief of staff under President Obama and former U.S. Secretary of Commerce under Clinton, Bill Daley joins us.
Plus Reagan Economic Advisor, Art Laffer, and Presidential-elect Donald Trump's economic advisor, Steve Moore. Big show today so stay right there and join us for it all.
We kick it off with our top story this morning. (inaudible) how Americans feel about the presidential transition so far. New Fox News polls are out, they show 59 percent of the people feel hopeful after president-elect Donald Trump's victory, though expectations remain low on some of his promises.
34 percent say that they believe Trump will truly build a wall, that's down from 54 percent back in May. Interesting that people are believing that less, actually.
39 percent of people say that they think Trump will actually deport illegal immigrants, that's also down compared to where it was in May, down from 50 percent.
These results coming as Trump heads to Hershey, Pennsylvania tonight. That is the latest stop on his thank you tour. Governor Huckabee, we're happy to have you all week -- all day, rather, because ths week, in terms of this thank you tour, has been something else. What --
HUCKABEE: It's been great. And I think one of the things Donald Trump is doing that's very smart, he's getting out of the bubble, leaving Trump Tower. I hope he does this when he's president.
One of the things that capture a president is his schedule and his staff. They live in a bubble and they don't connect to real people. It's not so much because the people benefit from it, although they do.
The real thing is, Donald Trump benefits by it. He gets energy. He gets instant feedback, better than a poll. He's going out there, speaking to a crowd and get, instantly, that reaction. And that gives him the energy to go back and remember why he was elected.
BARTIROMO: I also like the idea of just saying thank you.
KIERNAN: I think it's a great idea. Not since FDR's fireside chats, and we have this kind of wonderful warm outreach to the American voter and I think it's a great idea. It's what he does best.
HUCKABEE: Well, and he also does it without the filter or the media. Let's face it. The media is never going to treat him fairly, and I've always used the phrase, "Never help load a gun that's pointed at your own head."
If Donald Trump gives information to the media and trust them to get it to the people, it's pointing a gun in his own head and he helped load the cartridges. This is why it's important for him to go out and have direct contact. His tweets are important, his Facebook post, everything that he does that is direct to the people is a lot smarter than trusting a media that hates his guts and will never treat him fairly.
BARTIROMO: And what about the technology side of things?
MCDOWELL: Yes, not all media hates his guts, number one. And number two, you know, you're going to be called for him to -- because Reince Prevus alluded to changes in how the White House interacts with the press core once he takes the -- once President Trump is -- takes the oath of office.
And they're going to be called -- as much as we hammered Hillary Clinton and not -- about not doing press conferences, he hasn't had one since late July, and so people are going to be calling. And then the one on his business -- separating from his business has been postponed. So --
BARTIROMO: It's supposed to be today.
MCDOWELL: Right. And it was -- and then now, it's going to be sometime in January. So again, what's -- what we wanted from Hillary Clinton, I think the press is going to want from Donald Trump.
HUCKABEE: Well, and that's fair enough. Fair enough that he's going to have to face some questions from the press, but he's doing interviews, and I think he'll do press conferences, but I think it's stupid for him to go out there and face a firing squad. I mean, he goes in there unarmed, I mean that's just not smart. So here's the thing --
MCDOWELL: Oh, he loves.
HUCKABEE: It's about rewarding bad behavior. You don't reward bad behavior. When they start actually being journalists and practicing their craft, then he can go to them and have an audience with them.
BARTIROMO: Well, it looks like yesterday's meeting is also sparking debate within the media among other circles.
So Trump met with technology titans yesterday at Trump Tower. Here's what Trump and Vice president-elect Mike Pence had to say about the meeting.
(BEGIN VIDEO TAPE)
DONALD TRUMP (R), PRESIDENT-ELECT: I want to add that I'm here to help you folks do well. And you're doing well right now and I'm very honored by the bounce. Everyone was talking about the bounce, so (inaudible) everybody has to like me at least a little bit.
But (inaudible) deals, we're going to make it a lot easier for you to trade.
GOV. MIKE PENCE (R-IN), VICE PRESIDENT-ELECT: Momentum and pace of this transition will continue forward all the way into the holidays as we assemble a team that'll make America great again, starting January 20.
(END VIDEO TAPE)
BARTIROMO: What did you think of what you heard?
KIERNAN: Well frankly, first of all, I think what he does is being quite magnanimous and invite people in. The line has sort of been buried way down as this group has agreed to meet quarterly. I think that's very important because he needs this group.
Our defense is going to have to change. You're going to hear things like the third offset and expanding the battlefield. Technology is going to play a key role in that.
I also think there's a key role, frankly, that technology can play in making the government more efficient. So -- excuse me. This is a great start. And frankly, opening up with a -- kind of a genuine "I want to help you," I think, marks a man who is reaching out and trying to bring the tech community in.
BARTIROMO: Yes. What about Gary Cohn? Trump announced on Monday that Goldman Sachs President and Chief Operating Officer Gary Cohn will leave the National Economic Council, that he would also service top economic advisor. This position does not require senate confirmation. You know Gary Cohn from Goldman Sachs?
KIERNAN: I do know Gary Cohn, and frankly, the last three Goldman Sachs heads -- Steve Friedman worked in the Bush administration. Bob Rubin in the Clinton administration. This is something that Goldman Sachs people do well.
What do you get with a Goldman person? They can match markets in the economy and put them together to create jobs. They know how it works.
The other thing they're used to -- you heard about the invisible hand? They can deal with the invisible foot. Every once in a while, the mark will come up and kick you right where you don't want to be kicked. They know how to manage that and that's what you get with a Goldman person.
BARTIROMO: Yes. No, it's true. I mean, I -- it's a big position, actually, and it's nice to have someone who's savvy in markets in that role.
KIERNAN: It's also nice to be out of the hinterlands. We were sort of exposed and kicked out for a while. It's nice to be back.
BARTIROMO: But the -- of course, the criticism with all the Goldman Sachs guys, more Goldman Sachs, and then people are saying what -- I thought that meant draining the swamp. But he said draining the swamp, actually draining politicals from the swamp.
HUCKABEE: But I do think he has to be careful because there's been a long concern. He talked about it as well. I used to call it the Washington to Wall Street access of power, in which there was incredible, almost commune of power that existed between Wall Street and Washington.
And we saw what happened. The rest of the country got screwed over. And this is why Donald Trump is president. If he does not somehow make sure that there's a balance between the Wall Street guys, the Washington guys and the ideas that came out of middle America, I think could be problematic for him.
BARTIROMO: Does it bother anybody that his sons and daughter were at the meeting? I mean, this is what the left is talking about this morning, and certainly, the skeptical media is talking about, Donald, Jr. and Eric Trump, who he had said, will run business were at that table yesterday.
HUCKABEE: You know, what does he going to do? Surround himself with people he doesn't trust? I mean, I don't see any big issue with this.
BARTIROMO: They're trusted soldiers, of course.
HUCKABEE: They are. They're people that he has great confidence. And I think it ought to be refreshing that you have a father who has this kind of wonderful relationship with his adult children. There are fathers all over America who would like to have the kind of relationship with their adult children that Donald Trump has, so I don't see it as an issue.
MCDOWELL: But that will have to stop once he's inaugurated and he separated himself from those businesses, the appearance of, particularly, Eric and Donald, Jr. At the meetings. It's going to have to end.
HUCKABEE: That's different.
MCDOWELL: And the "Wall Street Journal" has a really great story about, this is -- let's make no mistake, the Trump organization is Donald Trump's business, and he is the chief executive of that business. And so they've got very little time to separate. In fact, that -- this is financial disclosures. The Trump family members were only part owners of 32 of over 500 assets listed.
So Donald Trump owns all of that. Those -- the family members will not be able to -- will not have seats at the table after he's inaugurated, I think, because again, it's the appearance and it's the actual separation between Trump and his business.
BARTIROMO: I mean, I have to agree with you. He has to have that clear line. And --
MCDOWELL: Yes. So you would expect that it wouldn't happen after he is in office. Agreed?
HUCKABEE: Yes.
KIERNAN: I agree. I also think he's underestimated the complexity of the task. It's one thing if you have a whole bunch of stock in a company and you sell it, or put it over the trustee, but to your point, Dagen, this is an Italian opera of interconnecting businesses, and he's the one who holds all the strings. Giving them over to somebody is not something you do just like that.
MCDOWELL: This is not saying, like, you have to separate yourself from your family, but the fact that they were sitting at a table with the great -- biggest CEOs of technology companies is -- would be a problem.
BARTIROMO: Raises questions.
MCDOWELL: Certainly down the road. Yes.
KIERNAN: And never forget that federal law is like a noose around your neck. It really is restrictive. It's very, very restrictive.
MCDOWELL: Again, I think the American people were fed up with the conflicts of interests and abuse of power with Hillary Clinton as secretary of state and her husband and the Clinton Foundation. I think there has to be a clean break between Mr. Trump and the Trump organization.
BARTIROMO: People don't want to see government as a family business.
KIERNAN: No. They sure don't. If he has one Achilles heel, it's this. He's really got to manage it. I agree with you completely. He's got to make a clean break.
BARTIROMO: Yes. He's got to make -- he's got to get this right. And there's no evidence that he won't, but he's got to get this right. We'll be watching.
MCDOWELL: Amen, yes.
BARTIROMO: Fox Business is going to take you live, by the way, to the next leg of President-elect Trump's thank you tour. In Pennsylvania. Lou Dobbs is bringing a special coverage tonight from 7:00 to 9:00 pm Eastern, do join us for that special coverage tonight right here on Fox Business.
Take a short break, but we've got a big show as you know, bracing for the cold across the country is next. We've got the forecast as the deep freeze sets in.
Plus a massive data breach, Yahoo confirms more than 1 billion customer accounts were compromised. What you need to know if you have a Yahoo account. Back in a minute.
(COMMERCIAL BREAK)
BARTIROMO: Well, bundle up. An arctic blast is sweeping the country. Cheryl Casone with the details now. Cheryl.
CHERYL CASONE, FBN HOST: Bundle up about three times over, guys. A hundred million Americans are bracing for frigid conditions today. Temperatures expected to dip into the 20s and 30s in 24 states, but with the wind chill, it's going to feel like it's below zero across much of the country.
And yesterday, a rare snowstorm hit Portland, Oregon's largest city to a standstill. The snow iced over roads, stranded drivers across the city, the area expecting, well, more snow today. There are your pictures from there.
Also this morning, Yahoo is reeling from its latest data breach. The company disclosed yesterday that in 2013, hackers stole information from one billion users, that's billion with a B.
This breach now dwarfs the 2014 hacks that Yahoo disclosed earlier this year, which, prior to this one was the largest ever theft of personal data. And this news does cast some doubt, frankly, over Verizon's $5 billion deal to buy that company. Yahoo shares down in the premarket based (inaudible) right after this news broke last night.
Meanwhile, the Town of Bunker hill, Indiana no longer has a police department after the town marshal and his four reserve deputies resigned. They quite over complaints of mismanagement and unethical requests from the town council.
The former marshal says that he felt like board members were serving their own agenda. County deputies are going to step in to protect residents until the city hires a new marshal.
And people want to know more about president-elect Donald Trump. The president-elect was the most searched person in 2016, according to Google. The company released the list just yesterday. Hillary Clinton coming in second ahead of Michael Phelps, the swimmer. Remember him? Senator Bernie Sanders and Steve Avery, who is the subject of that popular Netflix documentary, Making a Murderer.
And a whole new meaning to Google's Feeling Lucky? Button. The overall (inaudible) 2016 with power ball. The massive jackpot slightly contributed that this year.
And in January, the price climbed to a whopping $1.5 billion. Now that's one to remember. Prince was the second on the last following the death, and then in third place was Hurricane Matthew. Oh, Pokemon GO as well.
Smartphone games, rounding up the top five. Pokemon GO and Slither.io. And there's all your headlines, Maria. Back to you.
BARTIROMO: All right. Thank you so much. The search list was really interesting.
Pokemon GO. So Governor, you heard the list in terms of the searhers. Did you do yor Pokemon GO search?
HUCKABEE: No. I never have played Pokemon. I'm afraid that's just over my head.
MCDOWELL: I bet you'd play Powerball, though.
HUCKABEE: I don't do that either. If I wanted to throw money away, I'll just go out here on 6th Avenue and throw it right there in the street.
MCDOWELL: You just threw away your southerner card if you don't do your scratch tickets.
HUCKABEE: Yes, right. Well, for every person who wins, there are millions who lose. And if you look at people lined up to buy lottery tickets, how come it's never the investment bankers?
I mean, the people that really understand money, how come they're not lined up to buy lottery tickets?
KIERNAN: All right, now you're really making me feel bad.
MCDOWELL: But you never buy a lottery ticket --
HUCKABEE: OK. There --
KIERNAN: I'm (inaudible) lottery tickets.
(LAUGHTER)
BARTIROMO: Well then, maybe you're right. Maybe you're right.
KIERNAN: I do like Pokemon gone. I look for Pokemon gone. I want that thing gone. This (inaudible)
BARTIROMO: I want to get your take on Italy, actually. Coming up, Italy's new prime minister pledging his government is ready to stabilize banks. We're going to talk about that. Big story continues to develop throughout Italy and the Italian banks.
And then is this a bird? No, it's a plane. No, it's your package. Amazon completes its first prime air drone delivery, details next.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. The Italian banking sector still on edge. Fox News senior foreign affairs correspondent, Amy Kellogg, now with the latest in Milan. Good morning to you, Amy.
AMY KELLOGG, FOX NEWS REPORTER: Hi, Maria. Well, Italy's government has long been in the denial about how tenuous the situation really is, but today, we're hearing reports that treasury has earmarked 95 billion euros, Maria. That's about $100 billion, 15 of that for capital increases, 85 for guaranties, and that is in order to prop up Italy's weakest lenders.
First and foremost, among those banks would be the Monte dei Paschi di Siena, the world's oldest bank, founded -- just to give you a sense, Maria -- several years before Christopher Columbus discovered America. It needs to raise 5 billion euros by the year's end.
Now, before a bail-out actually does happen, the bank wants today to take one last stab at raising the funds privately, and they're waiting for Cobsob, which is Italy's financial services authority to sign off on a proposal to turn debt into equity and put that on the market.
But there is really very little realistic hope that the private investors will save Monte dei Paschi. The last injections of 8 billion euros really have been all but wiped out. The bank's level of non-performing loans is two times the national average, the combination of mismanagement and corruption, it scored lowest in terms of performance out of 51 European banks tested in July, obviously that has an effect on the entire economy.
(BEGIN VIDEO TAPE)
CARLO GENTILI: It's not lending money and (inaudible) I mean, they cannot - - they cannot afford one single new nonperforming loan so they are scared and so they are blocked. And so the investors see that it's blocked by -- or it's blocked -- it's suffering for that.
(END VIDEO TAPE)
CASONE: He was referencing, Maria, some of the other banks that are basically teetering on the verge of bankruptcy as well. So, I mean, the whole banking system, a lot of analysts are saying here, is really in jeopardy, $377 billion of debt.
And that could, down the road of course, cause a major crisis in the euro. There's no sense that weak Italian banks will actually have (inaudible) to other European banks. But it's just the -- it's the system overall.
That said Maria, the European Commission President today said he does not believe that this will not ignite another euro crisis, Maria.
BARTIROMO: All right, Amy. Thanks so much. Amy Kellogg is in Milan this morning.
Peter Kiernan, all that debt has been a problem for a long time, but it's really come to a head right now.
KIERNAN: Yes. They made a couple of key bad decisions along the way. They did not recapitalize after 2008, and Monte dei Paschi is a bank that I know pretty well. And one out of three of their loans is nonperforming.
And it -- absolutely, their first loan was made 20 years before Columbus sailed, so they've been in the business a long time, but they're trying to raise $5 billion. The whole bank today is worth $700 million.
BARTIROMO: Wow.
KIERNAN: It think it's very unlikely that they're going to get there from the private market. They had one insurance company convert for a billion dollars, but they have a long road to hold.
BARTIROMO: So they need a bail-out? Bottom line? They're not going to be able to --
KIERNAN: They're (inaudible) they only have one of the things in Italy that they forced people to do, is that if you're a bond holder, you have to pay in. So they have -- the -- if you look at a bank, the people who have owned their bonds are individuals and a lot of them are going to get stung by this.
BARTIROMO: Does this impact the U.S. banking system in any way?
KIERNAN: It does not. This is not one of those money center banks that's going to create a big problem. It's not like Deutsche Bank. This is a localized infection, but it is still an infection.
BARTIROMO: It certainly feels like the euro, though, has been -- fell the whole year, up until now.
KIERNAN: You know, we've just seen evidence piling up, mounting that is just not working. You can't have 17 federal reserves inside one currency. It doesn't work that way.
MCDOWELL: The dollar at a 14-year high yesterday. Really incredible.
BARTIROMO: Yes, 14-year high.
MCDOWELL: Yes.
BARTIROMO: All right, we'll take a short break. When we come back, a big day for Delta Air Lines today. The company's having an investor day. It has been the top stock in service sector, but how will that affect Delta's profit margins? We're going to find out what the company's going to tell investors today before their investor day.
And then may the force be with you, Rogue One: A Star Wars Story blasts into theaters today. We're previewing what is sure to be another Disney masterpiece. Back in a minute.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back, happy Thursday everybody. Thank you so much for being with us. I'm Maria Bartiromo, and it is Thursday, December 15.
Your top stories 6:30 am on the east coast right now. The president-elect continues to meet with high-profile names in New York as he is trying to fill remaining cabinet positions. This before headed to Hershey, Pennsylvania tonight for the next leg of his thank you tour, what to expect as the transition of powers continues.
The (inaudible) police department making an arrest after a young Muslim girl makes up harassment claims, why she was targeting Trump supporters, she made the whole thing up.
Amazon's dream takes flight. The breakthrough after the company makes its first delivery by drone. And Instagram set to let you save other user's photos, the new feature that may make you think before you post.
Markets looking to rebound today from yesterday's Fed fuel selloff, futures indicating a pretty good move at the opening trading, up 50 points as we continue to watch for Dow 20,000.
In Europe, investors are waiting on the Bank of England today. We are waiting on a decision on interest rates and economic policy there.
Ahead of all of that, we've got the markets up. The DAX index in Germany up two-thirds of one percent, and the CAC quarante in Paris up about one percent.
In Asia overnight, markets are broadly lower with the exception of Japan, the Nikkei average squeaked (ph) out another gain as you see there. Plus, there has been an awakening.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: The empire is building a weapon capable of destroying an entire planet. They call it the Death Star.
You need to capture the planet if there's any hope of destroying it.
UNIDENTIFIED MALE: We want to help.
UNIDENTIFIED MALE: All right. How many do we need?
UNIDENTIFIED MALE: I'll be there for you.
(END VIDEO CLIP)
BARTIROMO: "Star Wars: Rogue One" blasting to theaters. Tonight, the massive hall (ph) -- the highly anticipated film is expected to bring from across the galaxy. Stay with us through all of that coming up.
But first, this half hour, big day for Delta Airlines today. The company is kicking off its investor day.
And it has been an incredible stock in the entire transportation industry. In the services sector, it is winning the support of even Warren Buffett, who recently became a big investor.
Shares of Delta Airlines are up 35 percent just in the last three months. There may be some challenges in the new year.