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nicole: you are seeing back-and-forth action on the dow jones industrials. they do seem to like it because basically it is the fed putting everything on a silver platter here and is giving it to the world and printing more and find more. it is doing that for an extended period. the people on wall street are saying what are they trying it to unemployment rates you saw the market selloff and now regain its footing. you do the qe forever. gold will be something that we should take a look at. the dollar is something that we have watched slipping away. it is continuing to do that. we have seen things and drugs doing well. the dow jones industrials are up they have of a percent for the sixth day in a row. people were thinking that the fed would have a very accommodative sense. one of the things that we should look at is the market is very reactionary. the truth of the matter is they are not pulling anything and they are not raising rates anytime soon because the economy is not sustainable on its own. while you are seeing some minor improvements here and there, the truth of the matter is the economy cannot do it on its own. back to you. melissa: nicole, thank you so much. lori. they will let operation twist expire. expressing disappointment with the pace of recovery employment. let's bring in the chief investment officer of merck investments to weigh in. axl, it is great to see you. this is where i want to start. we have had years of quantitative easing. what has it done for the economy so far? >> it has certainly helped the price of gold. let's think about why the fed is doing that. the reason the federal reserve is doing it is because at some point, we will get economic growth. the bond market filling up means higher cost. do not worry about economic growth, per se. we worry about the unemployment rate. they do put in this language here that should inflation go up to 2.5%. that is a bad joke. it is a bad joke because the expectations will jump around. they do that to keep the market. they want to move away from focusing on inflation. it is quite surprising that they are able to agree to that so quickly. ashley: john, you say they want to target the unemployment rate. that implies that they think monetary easing is impacting? >> it has improved. that has led to an increase. more workers are producing household appliances that in the past. this has prompted more businesses to go out on the risk curve because they find it somewhat easier to obtain reasonably. melissa: we are having the worst recovery that we have ever had. i do not see the connection. it is not like housing has had a booming recovery as a result of their policy. without the fed assistance, we may have been even worse off or going to a more volatile recovery. we know very well that the unemployment rate is significantly lower because of a very high rate of labor force dropouts. we would not have the unemployment rate at 7.7% if it was not for such a low labor force participation rate. the unemployment rate ought to be up above 8.9%. we have to be careful choosing these targets. macroeconomics is not a science. lori: let me send it back to you, axl. it is really just troublesome. i was looking at the inflation rate on the ten year period the tenure tip is at 2.6 versus 1.6. are investors willing to take a negative return just for safety. >> those inflation expectations are skewed a bit. we just heard it. had the fed not done this, we would have had a more volatile recovery. what the federal reserve wants to do, they want to bail out the ones that are underwater on their mortgage. they want to push up their price level. everything else is just lip service. some jobs are being generated in this process. you have destroyed a whole bunch of purchasing power. obviously, some of that is a political decision. the question is whether the federal reserve should really be in the game of politics. >> we can stay away from these policies. the federal reserve could've said you guys in congress need to make up your mind on where you want to take this country to. you do whatever you do. the only time is if policymakers are forced to do so by pressure of the bond market. we don't have that. in some ways we are lucky. it does not mean that we are fiscally sustainable. melissa: john, axl is dead on. >> first of all, if we are going to have a problem with inflation,. [talking over each other] >> the bank of japan has been going through this process since 2001 did japan still suffers from price inflation. my guess is inflation in japan would be worse if the assets had not succeeded 30% of japan's gdp. japan has a surplus. [talking over each other] >> it has nothing to do with monetary policy. lori: you are both talking simultaneously. i will say thank you both very much. lots of stuff to chew on. it is a difficult challenge. all of this worrying going on in washington, d.c. there is no easy answer. as we approach the end of the year, though, how do you think the s&p 500 has performed so far. though surprising results of a new survey on investor sentiment and it turns out perception does not mean reality. melissa: take a look at oil. no decision on who is going to replace the secretary-general as we told you yesterday. i want to show you metals as we go out to break. also rallying. gold is up seven tenths of a percent. we will be right back. ♪ ...so as you can see, geico's customer satisfaction is at 97%. mmmm tasty. and cut! very good. people are always asking me how we make these geico adverts. so we're taking you behind the scenes. this coffee cup, for example, is computer animated. it's not real. geico's customer satisfaction is quite real though. this computer-animated coffee tastes dreadful. geico. 15 minutes could save you 15 % or more on car insurance. someone get me a latte will ya, please? we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars over 500 locations, where our dedicated support teams help you know more so your money can do more. 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[ all ] i'm with scottrade. ♪ melissa: we are making money with charles payne. before the break, we ask you, how do you think the s&p 500 has performed so far this year. the answer is it is up. joining us now is charles payne. they actually thought that they did not realize it was up 13%. i do with individual investors every day. almost all feel like the market is doing better than they are. they always think the market is crashing. for me, it is so painful to see this. people have missed out on amazing opportunities. february march 2009, america sold $50 billion worth. lori: what do you think most influences people's perception of the market. first of all, the crash hurts a lot of people about. i think, also, the social security debate, the idea that we would put money into social security into the stock market, that brought a conversation for a lot of people who never thought about the market. they still have this bitter taste in their mouth. chasing performance is something that is out of this world. right now, of course, a lot of people are saying we have a bond bubble. pension funds use up 60% in equities. it is absolutely amazing what is happening here. the equity participation overall has dropped dramatically. ten years ago, it was 51%. it has dropped absolutely dramatically. a lot of people feel like, you know, we just do not have our act together. [talking over each other] melissa: it is just one man. imagine this, you are at your retirement party. you just turned 65. we are going to take that around the world cruise now. no. we don't have any money because i hated obama. are you kidding me? melissa: charles payne, thank you so much. charles: guess who got hit by that. sir isaac newton. lori: let's check the market with nicole petallides. we were going to touch on dupont. i want to focus more on walmart. this is the biggest loser on the dow jones industrial. the ceo is stating the obvious. buyers are feeling the pinch of a soft economy. we talked about the 2.2 million employees they have worldwide. they pay 8.81 an hour. little things such as little things. the bangladesh fire in a factory. right now, they have labor rights and labor unions after them. they have so many things to juggle. the big picture is stuff for walmart. melissa: thank you. what the feds are calling the largest ever insider-trading case. charlie gasparino has exclusive details in my case. lori: you see a weaker dollar today. back with more after this. ♪ >> @22 minutes past the hour i have your fox news minute. the gunman wearing a hockey mask killed two before taking his own life at a shopping mall in portland yesterday. he fired at random. there is no connection between the 22-year-old and his victims. a 22-year-old woman remains in critical condition. a massive gas line explosion. it also destroyed multiple homes. it left roughly an 8-foot section thanked by the heat. the cause of the explosion is under investigation. green bay packers quarterback aaron rodgers. it has been declared aaron rodgers day today in that state. plans also calling for charity donations to number 12's favorite cause. those are your headlines. back to lori and melissa. how important is it that steve cohen is pain the legal fees of a four-month trader. investigators are trying to get the slip against his old boss. here is charlie with the very latest. there is two schools hit. number one as companies often paid legal expenses. we should point out that the former hedge fund trader that is at the center of the latest allegation of insider-trading left about two years ago. he is two years out of it. steve cohen is likely to have some sort of cooperation agreement. they share documents. they share strategy. if and when he ever cooperates, and we do know that we want him to cooperate, he still says no. if he ever does cut that deal, he is facing 20 years in jail. if he wants to avoid 20 years, he will know exactly what to say to prepare his defense. the government would only give it to him if he could basically tell him about what steve cohen new about the insider trades that he was accused of. in the indictment, it says that bythat -- he traded those stocks based on insider information. he was not supposed to do that. then he told steve cohen something that caused steve cohen to trade those stocks. we should point out also, the largest insider-trading case and probably, in recent history. something like $270 million of ill-gotten gains. we do not know if he has told him i am facing these traits on illegal information. we just know that he talk to him. you talk to a lot of people on the street. we still do not know that information and how it was conveyed. that is what the government wants. tell us what you said. how you said it. did steve cohen no it was inside legal information. melissa: it seems like a conflict of interest. charlie: it is completely legal. his contract may not have said we give you, you know, we give you lawyers until the day you die. it would be interesting to know if they cut this deal to pay for the lawyers even though it was not in the contract. we do not know that. we just know that they are paying for it. the suspension is that we have not gotten this confirmed, peter henning is they have a cooperation agreement. that would be a huge leg up with martoma ever does cooperate. he knows essentially what he will say. melissa: 19 days to go until the fiscal cliff congressional republican leader vowing to stay in washington until a deal gets done. lori: we will get john carney's take on all of this right ahead. here are some losers and winners on the s&p 500. ♪ can i help you? i heard you guys can ship ground for less than the ups store. that's right. i've learned the only way to get a holiday deal is to camp out. you knowwe've been op all ght. is this a trick to get my spot? 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[ male announcer ] how could a luminous protein in jellyfish, impact life expectancy in the u.s., real estate in hong kong, and the optics industry in germany? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. >> nicole petallides standing by. and our since the fed decision to launch a new bond buying programs so where are markets now? nicole: more bond buying, more money, but the market says thanks, ben bernanke and friends. we know the votes went through, and 11-1 decision. the market's acting this and running with it and moving to session highs so that these are session highs of 76 points on the dow jones industrials, a gain of 1/2%. the ticketing nasdaq is the worst of the month but it isn't 1/3% and the s&p 5 uuder the 0.3% and the s&p 5001430. anyone watching yesterday, he talked about the bias to the upside, talked about 1430 and talked about heading to 1440 and we are not are off of that level. american express leading the way. >> no deal to avoid the fiscal cliff, john boehner keeping the dialogue going and even trading new proposals but not stopping them from calling each other out. rich edson is in washington. >> that usually stops or pauses at the very least when there is progress. democrats and republicans have been stuck for weeks. the white house reduced its offer on tax increases for $1.6 trillion to $1.4 trillion including a willingness to begin corporate tax reform. republicans santa white house has to embrace significant spending cuts. >> during our budget we had no new revenue. look at the president's but he has $1.6 trillion worth of new revenue in his budget. we have been reasonable, responsible in our approach to this and we will continue to do that. time for the president to do his part. >> democrats say republicans have secured a one trillion dollars in spending cuts, part of last year's the deal and it is time to tax the wealthy. >> it is like a charlie brown cartoon. how many times, how many times is charlie brown going to try to kick that football? we know every time he approaches that football it will be taken away from him. that has happened and we are not going to fall for that again. >> white house officials tell fox republicans continue to refuse to raise tax rates on wealthier families, the official claims that concession would open the pathway to deal. however republicans and democrats are still hundreds of billions of dollars apart on how large a tax increase congress should pass and how much spending it should cut. activists -- back to you. >> there making comparisons to charlie brown. that is the level we are. melissa: for more on the fiscal cliff, let's bring in congressman john carney from capitol hill. i am sure you heard the conversation before you. how close are we getting to solving this problem? >> it was a good characterization of where we are and the analogy with the peanuts characters in some ways appropriate. this is what you can expect with both sides talking about what they want, what they are willing to do and opening positions and moving a little more deliberately or slowly, frankly, to an agreement. melissa: is that movement going on? from the sidelines it looks like everyone sticking to their guns, we are not getting closer to resolution. meanwhile the clock is ticking. >> tremendous movement if you consider the difference from two or three months ago to where we are today where the republican side has considerable revenue on the table. the issue is the increase in rates versus tax reform which is an important item and on the other side, concern about specificity with respect to spending cuts and both need to happen. a number of members are interested in seeing an agreement presented to us, if it is going to be an agreement that is going to be worked there will be things we don't like. lori: as secretary of finance in delaware you are known for cutting taxes, the first aaa bond rating in the where history. that is an incredible accomplishment. you have written extensively on how to rein in deficit spending but where do you stand? marie e. reference to this, call for 1 pour $4 trillion in revenue. attacks rates go up for the wealthiest americans? >> i think it should. that is the baseline on all the responsible plans to address the fiscal situation. if we do this, i am very optimistic about what the economy will do and what the markets will do in the future. a lot of good things on the horizon. we have to do our business in washington. got to come up with an agreement that is balanced and markets have to interpret it as being real. lori: democrats are not agreeing to deeper spending cuts. would you be amenable to more spending cuts? >> we have to have spending cuts. no question. we have to be specific about it. the only way that will happen is to identify a target of spending cuts and frankly tax reform and move into next year, but the committee, the jurisdiction go to address those spending cuts and tax reform targets. lori: if you look at the revenue generated by raising the marginal tax rates if you conceded that it would run the government for a weekend half. do you feel pressured to really reform and slow growth or cut the signs of government to something taxpayers can support? it seems what is coming out of both sides is still a government that can't be supported by taxpayers. >> exactly right. we have to have spending cuts. if you look at the framework that the simpson-bowles plan put together, it is $3 of cuts for every dollar of revenue, something on that order needs to be part of the frame work. the most important thing is that we have to bend the spending curbs done with health care across the board for medicaid, medicare, the government programs. talk to any business person as i do in my state and they will tell you health care costs, inflation is killing them. melissa: thanks for joining us. we appreciate your time as always. lori: washington need help from above on the fiscal plan. taking to twitter. we will tell you what he said in 140 characters or less. lori: we are moments from the new complex. what would you like to ask the ben bernanke? melissa: with the tenure and the 30 year as we head to break. you can see the yield rising on a ten year by 3 basis points. we will be right back. to work h. since ameriprise financial was founded back in 1894, they've been committed to putting clients first. helping generations through tough times. good times. never taking a bailout. there when you need them. helping millions of americans over the centuries. the strength of a global financial leader. the heart of a one-to-one relationship. together for your future. ♪ >> i am adam shapiro. stocks are getting a boost after the federal reserve announced plans to ramp up stimulus to the u.s. economy. the dow was up 70 points. avon is cutting 1500 jobs from its global work force. the company will also leave south corey and vietnam. the moves are part of a turnaround plan as it is working to eliminate hundreds of millions of dollars in costs over the next few years. honda is going to recall 800,000 minivans and suvs nationwide because the vehicles can roll away even when the key has been removed. recalling. the 2003-2004 model of the honda odyssey and pilot suvs and the acura from 2003 through 2006. on the received some complaints including fleet to the cause minor injuries. that is the latest from the fox business network. melissa: half an hour from the fed chief's news conference and fox business will bring his remarks live, but first we want to know what would you ask ben bernanke. lou dobbs is here with his take. what would you ask him? >> will will take to get unemployment to 6.5% because that is a new target for the fed. i don't know that in the history of the fed that they have ever put an unemployment target against specific monetary policy. melissa: a lot of times unemployment fall because people ditch the labour market, give up looking for job altogether. so is it really an attractive target? melissa: also implied that an impact on unemployment which i'm not sure they do. lou: congress has convinced them of that assigning two targets. it is a two target fed world will live in. not only is it their mandate to forestall inflation but also to forestall unemployment. they have been lousy up the ladder and done brilliantly at the former. now if they conflate these goals and specifically attach a 6.5% unemployment rate as a target for what they're going to do with asset purchase programs and interest rates, that is adventures in the 5 have ever seen it. melissa: wonder if ben bernanke will get into the political fray. he has a rat in previous statements about -- is now or never. lou: it is clear at least to me that he has been in mid vote for a weather as a conscious partisan or not but his policies have been designed to inflate the economy and render it cheaper the dollar. lori: you know ben bernanke knows what is best, the best deal, the best situation so if he is going to impose that upon washington today he will share that with us. lou: your words scare us all. when anyone in washington d.c. at the fed or the white house or in congress or the senate thinks he or she knows best we already have of problem because this is supposed to be a government of consensus and direction that is empirically based, operating for two goals, the national interest and the common good. melissa: i thought the role of the fed was to keep money sound, to keep the monetary system roll along. lou: so modern, so forward looking. there is something nostalgic in what you say because we have moved well beyond that. this fed right now is in charge of our fiscal future. melissa: these things as our guests have expressed that the economy needs to have the fed do what has been doing to going? lou: ben bernanke has been the essential actor of the last four years because we have had such inadequate leadership from the white house, such inadequate imagination and public policy direction, principal or otherwise partisan or otherwise creative or otherwise, that without him not much would have happened and that would have been absolutely disastrous. i know there are those naysayers -- [talking over each other] melissa: we have had that one before. you can see lou any time. 7:00, 10:00 p.m. eastern you can catch congressman dana rocker. look forward to that. lou: egypt and iran and syria and the obama middle east policy whenever it may be. lori: you're looking at costco. >> the largest u.s. wholesale retailer. you get everything in bulk and they obviously have a variety of different items but they came out with some numbers and you will see this stock is not taking off. however not far from the unchanged line, truth is there quarterly profit was up 30%. , sales rose 7% and membership revenue, up to the costco member, that rose 14% to $511 million. it seems when you look at the statistics and what the analysts have been expecting they came in with some very decent numbers here and right now the stock is virtually flat but that is a good one showing you the growth. lori: the most highly anticipated tweet, at the first message on twitter saying dear friends, i am pleased to get in touch with you through twitter, thank you for your generous response. i bless all of you from my heart. people follow up that tweet with six more under his twitter handle@pontifex. that is latin for bridgebuilder, eight different languages and already has 1 million followers. you should be able to tweak concessions. [talking over each other] lori: everyone for everyone to look at. [talking over each other] lot melissa: and report on what the companies texting coming up next. lori: not a happy holiday for retailers would crashing report for department store stocks. new movers in the trading session as we take a break. melissa: guatemala, to the united states. . comes to the immigration department, and jailed in guatemala, and did the country. and wanted for questioning in the murder of his neighbors. apple moving in on the living room, the tech giant testing designed for television and shibani joshi has a latest. shibani: the most exciting and clear idea what apple's vision for allen will play, the wall street journal, there's lots of talk. and some sort of accessory or is it going to be a huge flat screen tv that will take a centerpiece in your living room? report out today says it will be the centerpiece item that is going to be what apple is developing next year, it will come out and new prototypes under testing mode right now. it is all of the products, something exciting for the company. melissa: who plus surrounding its debut, and -- shibani: apple shares are down today. estimates for sales, came out revising lower is ipad estimates because of the dreaded cannibalization factor. this is what apple, its own worst enemy with new products and people save instead of buying all of its products in the portfolio we are going to take one or two of them. talk about ipad mini supply issues and people not buying the big ipad, there buying the small-lot that and that will affect the bottom line, when everyone is waiting for. to get above $700 or $800 they have been waiting for that for it while. lori: they will shortchange you and then you have to get that number 2 and over to apple for the next few years. shibani: probably going to forever. melissa: citigroup lowering its 2012 estimates on department stores. j.c. penney, nordstrom, coles and macy's being lowered, shoppers are not spending as much this holiday season. citigroup things warm weather has consumers shined away from cold weather merchandize. additionally online competition, the lack of must have gifts has dampened spending. with a tax increase living, consumers are exercising caution. do you exercising caution? lori: so much conflicting data on holiday sales. better than last year but not downgrading, all over the board. melissa: we will see how it settles a. everyone spends more and they plan to. lori: that is a no-brainer. melissa: without question. lori: are we there right now? melissa: coming up, gordon chan, author of nuclear showdown, north korea takes on the world joining me to discuss north korea's long-range missile test. this is the important part as if it weren't enough. reports that iranian officials were in attendance for the launch at 5:00 eastern on fox business. the fear is once they have this technology they start selling it to iran. lori: gordon knows best. melissa: we are 15 minutes or more away from chairman ben bernanke meeting the press. lori: as we compelling stuff. let's check the treasury market as we watch you of to the press conference 15 minutes from now. what our interest rates doing on the back of news? expanding q e, is it q e 4? quantitative easing forever. interest rates are higher, treasuries are selling off as the stock market risess. we will keep these historical interest waits for the time being, that is explicit targeting an unemployment and inflation. people feeling good about u.s. markets and people stopped for a out of fixed-income. there you go. business with market action, trends for today at least. melissa: dow trading 67 points and the nasdaq eight ntsb 500 up 9 points. good for 0.6% so markets in positive territory. you know how painful heartburn can be. for fast, long lasting relief, use doctor recommended gaviscon®. only gaviscon® forms a protective barrier that helps block stomach acid from sashing up- relieving the pain quickly. try fast, long lasting gaviscon®. at legalzoom, we've created a better place to handle your legal needs. maybe you have questions about incorporating a business you'd like to start. or questions about protecting your family with a will or living trust. and you'd like to find the right attorney to help guide you along, answer any questions and offer advice. with an "a" rating from the better business bureau legalzoom helps you get personalized and affordable legal protection. in most states, a legal plan attorney is available with every personalized document to answer any questions. get started at legalzoom.com today. and now you're protected. [ engine revs ] ♪ ♪ [ male announcer ] the mercedes-benz winter event is back, with the perfect vehicle that's just right for you, no matter which list you're on. [ santa ] ho, ho, ho, ho! [ male announcer ] lease a 2013 c250 for $349 a month at your local mercedes-benz dealer. she also likes ride her be. she knows the potential for making or losing money can pop up anytime. that's why she trades with the leader in mobile trading. so she's always ready to take action, no matter how wily... or weird... or wonderfully the market's behaving... which isn't rocket science. it's just common sense. from td ameritrade. >> so the market right now up to 65 points. we are seeing gold rally, market happened if it had said they will continue their quantitative easing, officially targeting unemployment. something we've long suspected but now they're coming out and saying it. ashley: the market doing a double take, not sure what to make of it. we will hear from mr. bernanke. the federal reserve ramping up the action to stimulate the economy. a new round of bond buying in the new year. tracy: the fed says the rates will stay low. the predictions on the economy are out. ashley: fed chairman ben bernanke addressing the press in about 15 minutes. what will he say about the fiscal cliff and so much more? it is all headed. tracy: it'll be interesting with the market when we hear some of the questions. ashley: there will be a lot of questions for him to answer, for sure. tracy: and what if people leave? going down to washington, peter barnes with breaking news. >> that is right. we have the latest economic projections right now from the federal reserve and they are very slight changes from the previous forecast in september. let's run through them starting with the gdp forecast, the fed is now projecting gdp for the year 2012 on th on the year wild up with 2013 around 2.7% growth and growth getting a bump reliably in 2014 and 2015. the unemployment rate sees it slightly better compared to september projections. now these unemployment ending up 17.9%. it is a project i prediction ab. 7.6% in 2013, and getting down consistently under 7% by 2015. on inflation, that looks slightly better in this new forecast, 1.7% for 2012, compared to the september forecast of 1.8. and then 1.7, 1.8, 1.9 going out 2015. under 2%, the fed official target. we have this handy dandy new chart they have been giving us which is a poll the 19 members, their thoughts on the appropriate timing of policy when they should start to tighten policy. two members believe policy tightening should begin next year, 2013. we begin in 2014, the majority, 13 of them believe it should start in 2015 and one believes the fed should wait until 2016, ashley and tracy, back to you. tracy: peter barnes, thank you very much. ashley: unemployment consistent. on the floor of the new york stock exchange as we do every 15 minutes. nicole petallides, the markets did a double take when we got this announcement from the fed but now moving nicely higher. nicole: we have that back-and-forth action as we got the play-by-play. in monetary policy remains much of the same, very accommodated from our fed head. with them doing just that, that basically says we are here for you and we are ready to back just about everything and give the opportunity for the market to continue higher. moving equities to the upside. that is the basis of what we are seeing today. the dow up 70 points. 25 of the 30 dow components a few minutes ago in the green. 25 of 30 names to show you. it is a broad-based rally. we do have the fed, we talked about that. a long winning streak for the dow. we have not seen that in nine months. let's take a look at the fear index. it had been higher throughout the day. it certainly was volatile during the lunchtime hour we were hearing from the fed. everybody seems to be taking a breather. back to you. ashley: all right, nicole, thank you very much. the dow up 65 moving higher. tracy: hearing more now from an bernanke and the surprise move to set a targe the target for te unemployment rate. what's do they want to hear? let's bring in our all-star panel. boy, i am sure you have tons of opinions. michael, i will start with you though. most of it was expected, what about this notion of setting it to a target unemployment rate? speak of it is very interesting. any polica new policy change fo. the fed really has to wear two hats. one hat is controlling inflation, the other is providing full employment and balanced growth and so on. what they are saying is they're changing the target away from inflation to unemployment and in doing so that means if you can expect a lot more stimulus, more inflation. they will try to give themselves cover creating potentially more inflation and going above the target range. ashley: can we call this qe4, what the fed did today? they are not selling short-term treasuries to upset the purchases, so the balance sheet is getting bigger and bigger and bigger. what do you think of this strategy? is likely the most creative head of my lifetime. he has done a pretty good job. we would be in worse shape with the financial fiasco of 2008 if ben bernanke had not been there. tracy: you were at the fed, my first thought when i heard it was tied to unemployment was what if people just leave, people leave the workforce and the number gets that low because tons of people are sitting at home collecting welfare checks. and then what? >> it is a difficult situation in that the unemployment rate isn't the best gauge necessarily tell you how the labor market is doing. the fed has added this qualitative threshold as well now that they're going to be following the labor market conditions in this depends on inflation and inflation expectations and that is why we saw it as early as we did. i don't think anybody was expecting it to be announced today. it was pretty clear officials were leaning in this direction, but nobody really expected them to announce it at today's meeting. ashley: more and more money being pumped in. bank reserves getting bigger and bigger, but what can be done to urge them to move the money through the system? obviously they will put money aside for when the rate starts to go up. nevertheless they are reluctant to push the money to consumers and businesses. what good does it do if we give cheap money and they are not passing it on? >> the reasons the banks are not landing. the main one, there are too many rules and regulations. in many cases they don't know if they are breaking the rules or not. excess reserves have gone from less than a tenth of a percent to 16%. we have not had anything like this since 1930. the excess reserves are getting stuck there. access rules and regulations, affect the fed has a trap by keeping rates low for so long, there's no place for interest rates to go but up. tracy: you can't blame them. ashley: stay right there, we are moments away from fed chairman ben bernanke taking questions from reporters and a lot of good questions he will have to answer, i'm sure. what will he have to say about the new bond buying program, the economy and more? tracy: but first, let's see how oil is trading in light of all this news up $0.95. $86.73 per barrel. we will be right back. ashley: welcome back, everybody. we're awaiting ben bernanke's news conference to set to start in a few minutes. of course we will bring it to you live as soon as it begins. the dow intraday for you. we hear from the fed, little back-and-forth, moving higher consistently. tracy: let's bring our panel back in. former analyst at the new york fed. what would you ask the chairman? >> i would ask him when he think the economy will reset itself. i'm of the opinion you will strike a deal with john boehner before the end of the year and he will cave on the 39.6% top tax rate, that will lift the market. he is under a lot of pressure. not only between the two parties but personally the new congress will vote on the next speaker on january 4. if he doesn't cut a deal, cantor has a lean and hungry look. ashley: he certainly does. what would you ask mr. bernanke this afternoon? >> i would probably ask him why the sense of urgency when you are trying to signal that you're trying to keep your foot on the pedal and stimulus policy talking about an exit strategy of switching to an economic outcome based approach to guidance rather than the current calendar, what was the current calendar based on the exit of the fed funds rate. it is surprisingly got a consensus view, and i like to hear the other members who probably are not on board were as convinced as the chairman himself. tracy: michael, i'm really hoping you will ask him what his favorite ice cream flavor is. >> i think we need to know how the world of federal reserve is going to get the unemployment rate down. nothing in their tools allow them to do this. it is a function of bad fiscal policy in particular government mandated health care which spot to drive the unemployment rate up again, not down and it's not that the fed has anything in the policy to be able to lower that. we will keep the pedal to the metal until the year 2025? until we regain employment 6.5%? who will not be able to add jo jobs, so they get themselves licensed for keeping unemployment rates down for ever. >> you're focusing on the unemployment rate, we raised the possibility of sparking a premature expectation of the fund rate especially if we wind up going over the fiscal cliff and something technical comes out in the unemployment rate drops for some reason. ashley: let's hear from the man himself, mr. bernanke. >> good afternoon. it has been about three and a half years since the economic recovery began. the economy continues to expand at a moderate pace. unfortunately however unemployment remains high. about 5 million people, more than 40% of the unemployed have been without a job for six months or more. millions more who say they would like full-time work an have only found part-time employment or stop looking entirely. the conditions in the job market now show waste of human and economic potential. return to broad-based prosperity will require sustained improvement in the job market which in turn requires stronger economic growth. meanwhile apart from some temporary fluctuations largely reflected swings in energy prices, it is likely to run at or below the federal market committee's 2% objective in coming quarters over the longer term. against a macroeconomic backdrop includes high unemployment and subdued inflation, the fomc will maintain the policy. today the committee took several steps. first, it decided to continue its purchases of agency mortgage-backed securities initiated at the september meeting at a pace of $40 billion per month. second, the committee decided to purchase longer-term secretary securities after the search to, current program to extend the maturity holdings is completed at the end of the year. in continuing its asset purchases, the committee seeks to maintain downward pressure on longer-term interest rates in the key financial conditions accommodated. therefore promoting economic growth while ensuring inflation over time is close to 2% objective. finally, the committee today also modify the guidance of future rate policy to provide more information to the public about how it anticipates it will react to evil the economic conditions. after discussing our decision to turn asset purchases. although the committee's announcement specified amount it pays in composition of asset purchases, did not give specific dates at which the program may be modified or ended. instead, pattern of future asset will depend on evaluation of incoming information in two respects. first call expect to continue asset purchases until we see a substantial improvement in the outlook for the economic price stability. in assessing the extent of progress, the committee will be evaluating a range of labor market indicators including the unemployment rate, payroll employment, hours worked, and labor force participation among others. because increases in demand and production are normally precursors to improvement in labor market conditions, we will be looking closely at the pace of economic activity more broadly. second, the committee will be monitoring financial developments to assess both the efficacy and potential drawbacks of the asset purchase program. the federal reserve asset purchases over the last few years has provided important support to the economy, for example by helping to keep interest rates historically low. the committee expects the policy tool to be effective and the cost and risk effect manageable. as the program continues, we will be regularly updating those assessments. if future evidence suggest the program's effectiveness has declined, or potential unintended consequences or risk become apparent as the balance sheet grows, we will modify the program as appropriate. more generally the committee intends to be flexible in bearing the pace of securities purchases in response to information bearing on the outlook were on the received benefits and costs of the program. unlike the explicit arteta criteria associated with the forward guidance about the federal funds rate, which i will discuss in a moment, the criteria the committee will use to make decisions about the pace and extent of the asset purchase program or qualitative. in particular, continuation of asset purchases is tied to our seeing substantial improvement in the outlook of the labor market. because we expect to learn more over time about the efficacy of potential costs of asset purchases in the current economic context, we believe qualitative guidance is more appropriate at this time. in today's statement, the committee also be tested the forward guidance for how it expects the target for the federal funds rate dependent future economic developments. specifically the committee anticipates exceptionally low levels for the federal funds rate likely to be warranted. at least as long as the ultimate rate remained up 6.5%, inflation over the time between one and two years ahead is projected to be no more than half a percentage point above the committee 2% longer run golf and longer-term inflation expectations continue to be well anchored. this formulation is a change from earlier statements in which forward guidance of the federal fund rate was expressed in terms of a date. for example, in statements the s following a september and october meetings the committee indicated it anticipated exceptionally low levels for the fund rate are likely to be warranted "at least through 2015". the modified for relation makes more explicit the intention to accommodate a stronger economic recovery in the context of price stability. a strategy that we believe will help support household and business confidence and spending. by tying future monetary policy closely to economic conditions, this formation of our policy guidance should make monetary policy more transparent and predicable to the public. the change in the form of the committee's forward guidance is not in itself imply any change in the committee's expectations about the likely future path of the federal funds rate since the october meeting. in particular, the committee expects the state threshold from plymouth will not be reached before mid-2015 and projects inflation will remain close to 2% over that period. thus, given the current outlook, the guidance introduced today is consistent with the committee's earlier statements that exceptionally low levels for the federal funds rate are likely to be warranted at least through mid-2015. let me emphasize the 6.5% threshold for the trade should not be interpreted as the committee's long return unemployment. the central tendency estimates of the longer run normal rate of unemployment is 5.2-6.0%. however, because changes in monetary policy affects the economy with a lag, the committee believes it will likely need to begin moving away from highly calmative policy stance before the economy reaches maximum employment. waiting until next unemployment is achieved before beginning the process of removing policy accommodation could lead to an undesirable shooting of output and compromise the longer-term employment objective of 2%. that's a statement makes clear, the committee indicates it will be fully consistent with continued progress with employment and staying close the committee's 2% objective over the longer-term. the modified guidance should provide greater clarity of how the committee expects response to incoming data, it by no means puts it on auto pilot. first a statements and notes they view the current low rate policy as likely to be appropriate at least until the specified thresholds are met. reaching one of those thresholds however will not automatically trigger immediate reduction in policy accommodation. if a employment were to decline slightly below 6.5% when inflation and inflation expectations were subdued and were projected to remain so, the committee might judge an immediate increase in a target for the federal funds rate to be inappropriate. ultimately in deciding when and how quickly produce policy accommodation the committee will follow a balanced approach in seeking to vacate deviations from a longer run 2% gold and deviations of the estimated maximum level. second, the committee recognizes no single indicator provides a complete assessment of the state of the labor market and therefore will consider changes in the unemployment rate within a broadethe broader context of r market conditions. for example, in elevating a given decline in employment weight, they'll take into the extent the decline was indicated with hours worked in opposed to increased in the number of discouraged workers of labor force participation. the committee will also consider whether the improvement of the oncoming freight maintains sustainable. third, they failed to protect inflation between one years and two years ahead of now in terms of inflation. the committee want to look through transitory inflections in affliction such as those induced by short-term variations in the price of internationally traded commodities and to focus instead on the underlining inflation trends. in making its collective judgment about the underlining inflation trends the committee will continu consider a varietyf indicators including measures such as median and core inflation. the use of outside forecasters and the productions to the metric and thi assistive tech models. they will pay close attention to models of inflation expectations to ensure that those expectations remain well anchored. finally, the committee will continue to monitor a wide range of information on economic and financial developments to ensure that policies conducted in a manner consistent with our dual mandate. it is worth noting the goals of the fomc's asset purchases in the federal funds rate items are somewhat different. the goal of the asset purchase program is to increase the near-term momentum of the economy by fostering more, and if financial conditions. the purpose of the rate guidance is to provide information about the future circumstances under which the committee would contemplate providing accommodations. i would emphasize a decision by the committee to and asset but committee to end asset purchases when that point is reach would not be titlist to tighter policy. that circumstance the committee would no longer be increasing policy accommodation, policy stance would remain highly supportive of growth. only at some later point would the committee began actually removing accommodations through rate increases. moreover as i discussed today the decisions to modify the asset purchase program and undertake rate increases are tied to different criteria. in conclusion, the fomc's actions today are part of our ongoing effort to support economic recovery and job creation while maintaining price stability. as i have often stressed, monetary policy has its limits. only the private and public sectors working together can get the u.s. economy from the back on track. in particular it will be critical that fiscal policymakers come together soon to a suit long-term fiscal sustainability without adopting policies that could derail the ongoing recovery. thank you. i will be happy to answer your questions. >> i have a lot of questions but i will just cough up two here. why are there different targets for q e and the funds rate. what has that achieved? secondly, what good is a target if you have to reference calendar dates in that -- you have to point out in the statement is not substantially difficult from the dates we set in september. the do that to make it clear that -- [talking over each other] another paragraph after that says it is not just targeted something else though it is not clear what targets these archie reference the calendar date and the next paragraph is not really targets. >> first, as i said, the asset purchases and the rate increases have different objectives. the asset purchases are about creating near-term momentum to strengthen growth and job creation in the near-term, and the increases in federal funds rate target, when they ultimately occur, are about reducing accommodations, two different objectives. secondly, the asset purchases are a less well understood full. we will be learning over time about how efficacious they are, what costs they may carry with them in terms of unintended consequences that they might create and we will be seeing what else happens in the economy that can affect the level of unemployment for example we hope to achieve. for that reason as i discussed in my opening remarks, we decided to make the criteria of for asset purchases qualitative at this time because we have a number of things to look at as we go forward. rate increases by contrast are well understood and we understand the relationship between those with reading greases and the state of the economy so we get somewhat more quantitative specific guidance in that respect. with respect to the date and the transition today we wanted to make clear the change in guidance did not happen to be the case that it doesn't change our may of 2015 expectation. going forward we will drop the date and rely on the conditionality and that is imported vantage which is it news comes in that economy is stronger or weaker, then financial markets and the public will be able to adjust their expectations for when policy tightening will occur without the committee having to go through a process of changing in a non transparent way. so that is beneficial. does that cover -- [talking over each other] >> mr. chairman, what prompted the committee to make the decision that this particular time to specify targets? and by taking an unemployment rate that is quite low compared to currently, does that shift the balance of priorities in terms of your dual mandate? more in the direction of reducing unemployment rather than inflationary pressures? >> very good question. we took the change today after a good bit of discussion, had a very substantial discussion of the threshold approach that -- had our last meeting and we felt it was ready to go, ready to put out. there are different views and aspects of the threshold approach, there was a lot of agreement that having more explicit connection between rate policy and the state of the economy was more transparent and more helpful to the public mandate based guidance, and therefore, a general view that at some point, we should switch to that kind of guidance, we do hope it will be more helpful and give markets more information about how we are going to respond going forward. it is 98 change in our relative balance, towards inflation and unemployment, by no means, first of all with respect to inflation we remain committed to our 2% water run objective. we expect our forecast as you see from a summary of economic projections our forecasts are that inflation will remain despite this threshold of 2.5 and inflation will remain at or below 2% going forward. and so finally the thresholds we have put out are entirely consistent with our long standing views on what the rate half has to be, what the path of interest rates has to be in order to achieve improvement in the labour market and keeping inflation close to target. both sides of the mandates are well served and there is no change in policy. it is an attempt to clarify the relationship between policy and economic conditions. >> given that your economic projections are important now, that you have specified these targets, is it difficult to put forward these projections now given the uncertainty over the fiscal cliff? how to sort of plastic are these? >> are you thinking of the s e p projections? clearly the fiscal clip is having an affect on the economy, even though we have not even reached the point of the fiscal cliff, potentially kicking in, it is already affecting business investment and hiring decisions by creating uncertainty and pessimism, we see what happens to consumer sentiment which fell because of concerns about the fiscal cliff. this is a major risk factor and major source of uncertainty about the economy going forward. i would suspect, although the participants don't make this explicit, but what they are sitting in their projections is the fiscal cliff gets resolved and some intermediate way, there's still fiscal drag not flags by the entire fiscal cliff so that is the underlying assumption that most people took when they made their projections but you are absolutely right that they're a lot of uncertainty right now and the fiscal cliff situation to be resolved in a way different from expectations you would see changes in the forecast. [inaudible] >> thanks very much, mr. chairman. could you talk about whether the decision to maintain the purchase of $85 billion a month represents are ramping up of additional easing of that policy because you are adding a little more to the side of the balance sheet, and also you talked about maintaining the asset purchases and substantial improvement in the labour market and you want to take a different approach but you also have a 6% inflation threshold. could you talk about what sort of evidence you see to make you change the pace or slow theepace of purchases? >> the first part of the question was is this an additional stimulus? >> this is a continuation of what we said in september. you recall in september we expressed dissatisfaction with progress in the labour market and at that point began a forty billion dollars per month of them be s purchases and we said we saw substantial improvement in the labour market and undertake additional asset purchases and that is what we have done today is follow for rue what we said we were going to do. relative to last month i don't think we have significantly added to accommodation, the reason at least in my view, many of my colleagues what matters primarily is the mix of assets on the balance sheet, what is important is the fact that we are acquiring treasury securities taking those out of the market, forcing investors in to closely related assets and that is where the stimulus comes from, not so much in the size of the balance sheet per se but the amount of stimulus is more or less the same, a follow-through from what we saw in september. in terms of criteria, what we have done is announced an initial amount of $85 billion of purchases, we are prepared to bury that as new information comes, and it is noticeably stronger, we would presumably begin a ramp down, level of purchases. the problem with a specific number is that there are multiple criteria in which we make this decision. we look at the outlook for the labour market which is important but we are also looking at other factors that may affect the economy, for example i hope it won't happen but if the fiscal clickers as i have said many times i don't think the federal reserve has tools to offset that event and we have to temper expectations what point accomplished and we will be looking at the efficacy and cost of our program and if we find we expected to be efficacious but it is not working as well as we hoped for various costs we had not anticipated, that will not be taken into account. it was not constructive because we don't know precisely what would be fine a substantial improvement but as long as costs and other concerns do not emerge we will be looking for something substantial in terms of a better job market [inaudible] >> peter cook, mr. chairman, if i could follow-up on your last response given the fiscal cliff is it possible if policymakers were not to agree to some sort of deficit deal and we were to go over the fiscal cliff the size of these asset purchases could grow in response to that and more specifically you calling the phrase fiscal cliff and i want your take on whether you feel it is the most appropriate language to describe what will happen at the beginning of the year. some americans may be alarmed, the you feel this is appropriate given circumstances, fiscal contraction that would come if there is no deal? >> the first part of your question, if the economy went off of the fiscal cliff our assessment, outside forecasters all think that would have significant adverse effect on the economy and the unemployment rate so on the margin, we would do what we could, we would increase a bit. but i want to be clear we cannot offset the full impact of the fiscal cliff. it is too big given the tools available and limitations on our policy tool kit. in terms of the terminology, people have different preferencess what they call things, the sensible term, the fiscal policies, providing support to the economy if fiscal policy is confectionary the economy will i think go off the cliff. it is reasonable to be concerned about this. i don't buy the idea that a short-term the send off of the fiscal cliff would be not possibly. i think it would be costly and we are already seeing costs. why is it consumer confidence dropped so sharply this week? why is that small business confidence dropped sharply? why are the market's volatile? why is business investment among the weakest levels during the recovery? i think all these things to some extent can be traced to the anticipation and concern about the fiscal cliff and we don't know what would happen, but there is certainly a risk that it could be serious and therefore it will be very important that most helpful thing that congress and the administration could do is find a resolution that on the one hand achieved long run fiscal sustainability which is critical, absolutely critical for a healthy economy, and avoids the railing which is in process. >> mr. chairman, i wanted to square up some numbers that you announce today when rate hikes start at 6.5%. the committee's assessment of the longer run unemployment rate is 6% or perhaps a bit lower, and in the long run funds rate, it suggests when the fed starts raising interest rates down the road it might have to move fairly quickly to get to some equilibrium funds rate. specifically, is that the case and more generally can you talk about what this framework that you set up today says about the exit strategy that you laid out some time ago on whether that is changing? >> good question. first of all, we don't have a precise estimate of the long run sustainable unemployment rate. the estimates that were provided in the summary of economic projections today as has been the case for a while is 5.2% to 6.0%. it could be less than 6.5% so that gives us some time. my anticipation is that the removal of accommodation after the takeoff point where ever that occurs would be relatively gradual. i don't think we're looking at a rapid increase but that depends on where inflation is and other conditions. the path we are basing these numbers on is one that assumes, first of all, as you have anticipated, assumes an increase in the funds rate first occurring some time after unemployment goes below 6.5% but it does not necessarily assume a rapid increase after that and what we sit in our statement is we would take a balanced approach. once we get to that point we may or may not raise rates at that point. we will look at the situation. but assuming inflation remains well controlled, which i fully anticipate, the rate of increase in rates would be moderate. this is consistent. the exit strategy that we put out is consistent with our statement today because the exit strategy was primarily about how we would normalize the balance sheet over time and at this time we have not made any changes in that and we believe some increase in the size of our balance sheet is consistent with that general sequence we laid out in the minutes of a year-and-a-half ago. that being said, if the balance sheet rose by enough's we may have to reconsider the pace, but i don't see any changes that would radically change the time to normalization or the time to exit. >> i will continue the two question trend. on the fiscal clipped it sounds like you would prefer a sensible balance of fiscal consolidation and support for the recovery but if people in congress can't do that in the next week to week the you think we are setting fiscal consolidation preferable to going over the cliff? and on the monetary policy actions today, can you give more color on how you set the threshold and what they were and what the alternatives were and how you waived various alternatives to similar policies? >> sure. i am hoping congress will do the right thing on the fiscal cliff. there is a problem with kicking the can down the road. it might avoid a short-term impact on the recovery, but it could create concerns about our water term fiscal situation. i don't want to see that. for the best interests of the economy to come to a two part solution, part i is to modify fiscal policy in a way that doesn't create enormous head winds for the recovery in the near term and part ii is to at least take important steps towards achieving a framework, at least by which perhaps further negotiation, the congress, administration can achieve a sustainable path for fiscal policy. these are very important. i don't think we could consider these negotiations a success unless both of them happen. [inaudible] >> i think they are equally important. on the threshold numbers, this is -- these numbers are based on substantial analysis done by staff both here and at the reserve banks, trying to assess under so-called optimal policy or best policy we could come up with, what would the interest rate half look like and how would it be connected or correlated with changes in unemployment and inflation and when we do that analysis, what we find is the best interest rate half is the best we can determine it based on models and analysis which is imperfect, has rates remaining low until the unemployment rate drops below 6.5% and projects we put in the 1/2% above the 2% goal as a protection against any problem with price stability but our projections for actual forecasts suggest inflation will not go there. inflation will stay around to% which is consistent with ponger-term objective. [inaudible] >> if we get important new information about the structure of the economy, it is possible, but i considered relatively unlikely and this is one of the advantages of this approach over the date based approach. informational comes in that the economy is stronger or weaker than we expected that would require a change in the date but it doesn't require a change in the thresholds because the data adjustment can be made by markets just simply by looking at their own forecasts, when unemployment will cross the line and behavior of inflation. >> back of ritter, robin. >> scott forin from cnn. on 60 minutes one of the things that happened was you visit your old home town and you talk a little bit about how the economy had affected people you grew up with and affected the people down there. there are a lot of regular people like that on the countryside wondering what really happens to them if we do go over the federal cliff, taxes go up, spending goes down. do they need to look for recession? our employers going to really cut back on the employment? what do people out there really need to worry about and prepare for? when it comes to actually going over the fiscal cliff if folks in washington can't get their act together? >> i come from a part of south carolina which has been economically challenged for a long time and remains so. certain parts of south carolina have developed pretty strongly, but the part where i come from, mostly agricultural, a little manufacturing have high unemployment rate, high foreclosure rate and people are having a hard time. i visited very few times since i became chairman. part of the reason we are engaging in these policies is to try to create a stronger economy, more jobs so that folks across the country including places like the one where i grew up, will have more opportunity to have a better life for themselves. that is extremely important and it is very important that we not just look at the numbers. it is easy to look at the unemployment rate and say it is your.1, every tenth means many people are represented there so it's very important to try to keep in mind the reality of unemployment, foreclosure, week wage growth, we always try to do that. and i want to -- always a delicate balance. you don't want to scare people, i actually believe congress will come up with a solution, i certainly hope they will. but as many analysts, not just the fed have pointed out, if the fiscal cliff was allowed to occur, certainly if it were sustained for any period, it could have a very negative affect on hiring jobs, wages, economic activity, investment, consequence of that would be felt by everybody, certainly by those in areas like where i grew up that are relatively weak economically no doubt with the greater brunch. it is urgent and important congress and the administration come to a sensible agreement on this issue. >> i had a follow-up too. and won't asked if we are on a bond bubble but obviously the new guidance you have given in the fomc statement is going to give a lot more clues to people who own bonds, about when they might start lightening up their bond portfolio and changing the composition of what they own. was concerns about information about bond prices and things happening in a big hurry in terms of some sort of a bubble popping, was that a consideration in adding this transparency? >> i wouldn't say was an important motivation for adding transparency. adding transparency has a lot of value, but it is the fact the greater clarity will help markets better predict how bond yields will behave. as we go forward in time as the economy continues to strengthen as we hope, as the exit comes closer for the federal reserve, you would expect longer-term bond yields to begin to rise, the more information we can provide markets about the conditionality under which the fed would consider, the better information they will have about the likelihood of bonds that allow for adjustments so that is a positive aspect of this communication. i would not say it is the major reason. the major reason is to give the markets can the public more transparency about what is determining the policy, but that is one potential advantage. [inaudible] >> robin harding from the financial times. mr. chairman, you said a moment ago the threshold there based on an analysis of optimal policy. in the optimal policy part, vice chair yellen wait out in her speech a few weeks ago it showed the first rise in interest rates occurring in early 2016 and rates rising very slowly after that. it has gotten policies that the fed is not following and you referred to a number of inflation forecasts in your introductory remarks. in that case how will we ever know that the inflation threshold has been hit? thank you. >> the kind of policy vice-chairman yeoman showed is indicative of the analysis we have done, a variety of different scenarios, different assumptions about malls and so on but the general character of that interest rate half, that it stays low until unemployment is little lower and rise high inflation stays very close to 2. in terms of inflation forecasts, the committee will on a regular basis include in its statement its views of where inflation is likely to be a year from now. currently we already say we expect inflation to run at or below the committee's objective longer-term. the intellectual exercise we will be doing is asking if we maintain low rates along the lines suggested by this policy, would we expect inflation to cross the threshold or reach that level. it is very important that the public, the media, the markets find our projections credible obviously. for that reason, we will be referring extensively to publicly available information such as various measures of inflation that i mentioned in my opening remarks, outside forecasts, break-evens from inflation protected bonds etc.. if our outlook deviates in any sense in a significant way from what all these things were saying, at a minimum it would be incumbent on me and the rest of us to explain that but my expectation is our projections will be broadly consistent with public views, public information. i think we could manage the credibility issue. just to be clear, the projection that matters for our determination is the one that the committee collectively comes up with. [inaudible] >> you have articulated more clearly than ever your commitment to reduce unemployment but you have also said you are not doing anything more to achieve that goal, you still expected to be three years away, you're disappointed with the pace of progress and inflation is not the limiting factor. what is the limiting factor? why is the fed not announcing additional measures to reduce unemployment? what would it take to get there? >> we took -- the question was if this was renew relative to september. september was the date where we did do a substantial increase in accommodation. at that point we announced our dissatisfaction with the state of the labour market and outlook for jobs and said we would take further action if the outlook didn't improve and what we have done today is really just following through what we said. looking at it from the perspective of september, up we have in fact taken significant action to provide support for the recovery and job creation. the reason -- one of the considerations i talk about is given that we are now in the world of unconventional policy that has both an certain costs and uncertain efficacy or benefits, that creates a somewhat more complicated policy decisions than the old style of changing the federal funds rate. there are concerns i have talked about in these briefings before that if the balance sheet gets in definitely large, there would be potential risks in terms of financial stability, market functioning, the committee take these risks very seriously. they impose a certain cost on policy that doesn't exist when you're dealing only with the federal funds rate. what we are trying to do is balance the potential benefits in terms of lower unemployment and inflation targets against the reality that as the balance sheet gets bigger, there is greater cost that might be associated with that and those have to be taken into account.
VietnamRepublic-ofNew-yorkUnited-statesJapanBangladeshGermanyEgyptSouth-carolinaIranDelawareHong-kong game for two. ♪ you may hate me but it ain't no lie. .todd: bye, bye, bye, is it true? what producer -- jillian: he probably will retire. todd: he'll be in the broadcast booth, probably making more money than he did as a player. good morning, you're watching "fox & friends first" on this monday morning. i'm todd piro. jillian: i'm jillian mele. security concerns of an insider attack on inauguration day prompting the fbi to vet 25,000 national guard troops. todd: david spunt joins us live in washington as armed protests begin -- as protests begin nationwide. >> reporter: washington, d.c. is a fortress right now. it will be through continue august raise, at least the day after inauguration on january 21st. this is the tightest security washington dc has seen in its history, no question about it. you mentioned the troops, there are about 25,000 national guard troops in washington right now, surrounding the city, more expected to arrive in the next few days. they're coming from all over the country, governors from all different states have cont them to washington, d.c. -- sent them to washington, d.c. according to law enforcement sources, they'll be screened multiple time. ryan mccarthy also of confirmed this in an interview with the associated press. he said troops will be heavily screened over fear of an insider attack. >> it's about guns, gates and guards at times as a visible deterrent. that's what you see in washington right now, the guns, gates and guards. what you don't see is the intelligence gathering effort on the part of the fbi and other partner agencies. >> reporter: but it's not just the nation's capitol under watch. federal prisons also on lockdown this week, capitol cities and capitol buildings in all 50 states under the microscope with governors calling in state national guards to keep things under control. several armed protests are expected over the next few days over anger that president trump lost telex and speaking of the president, he's the first president since 1869 not to go to his successor's inauguration on wednesday. the president will fly on air force one for one last time wednesday morning. he'll leave joint base andrews around 8:00 in the morning, land in palm beach, florida before president-elect biden becomes president joe biden. even when he's former president trump, the house, though, will transmit one impeachment article to the u.s. senate. there's a chance there could be a separate vote to keep trump from running for public office again. trump ally, senator lindsey graham, is begging incoming majority leader chuck schumer to call off the t senate trial. listen. >> if we embrace an unconstitutional impeachment of donald trump after he's out of office, it will destroy the party. the republican party wants to move forward. president trump's going to be the most important voice in the republican party for a long time to come. >> reporter: and then you have those house impeachment managers, the democrats over in the house who say they want to see the trial through. >> our plan is to go after every single vote. we want to make sure that every senator is standing up for this country, that every senator is considering the evidence against president trump and the fact that he incited a deadly insurrection and so we're optimistic that when we lay out our case, that we'll be able to convince folks. >> reporter: speaking of that case, there was some thought that the president's personal attorney, rudy giuliani, would represent him in the senate. giuliani said in an interview with abc news over the weekend that he's probably not going to be doing it because after all, he claims to be a witness. he gave one of the speeches before that riot over on capitol hill. also, talking about capitol hill and the senate, vice president-elect kamala harris will officially resign from the senate later this morning. back to you. jillian: a busy week ahead. i feel like we say that every week. david spuptd, thank you. todd: a republican supporter said the president should look ahead to 2024. >> if trump wants the republican nomination in 2024, it will be handed to him on a silver platter. i'll support him and i think the field will be mostly clear but for some people that have ambition that outsizes their political sense because with our base, with trump voters, i think the president is as strong as he's ever been. todd: other top republicans who could run in 2024, former un ambassador, nikki haley and vice president mike pence. a virginia man is the third person arrested near the capitol in three days. police say 22-year-old guy barry was carrying a gun without a license, carrying high capacity magazines and ammo. a woman was previously arrested fore impersonating a police officer. the fbi needs help identifying these men suspected of beating a washington, d.c. police officer. and a $15,000 reward is offered for information on this person suspected of planting pipe bombs during the capitol riot. parler is back, overnight the social media platform returning online. amazon shutting down the site, following the capitol hill riot. jillian: jackie ibanez joins us live with a message from the company's ceo. >> good morning. it appears a new internet company is hosting parler after being shut down by amazon. the company's ceo, john matze, writing, quote, hello, world, is this thing on. adding, we will resolve any challenge before us and plan to welcome all of you back soon. we will not level civil discourse perish. parler was shut down following the riot on capitol hill, tech giants blaming the free speech philosophy for helping incite the violence. tim cook opened he is open -- revealed he is open to letting parler back on the app store if they make changes. >> how did you decide to balance free speech with objectionable content. >> we looked at the incitement to violence that was on there .>> amazon claims it repeatedly notified parler that the content violated terms of the agreement but parler was unable and unwilling to moderate it. matze says amazon is holding the company's digital infrastructure hostage. >> if they believe that the social media itself was a problem, why did they shut off everything else too, so that development environment, they shut off our ability to work and our ability to even access our own code. >> reporter: big tech censorship extending to newly elected congresswoman marjorie taylor green, twitter suspending the georgia republican's account for violating the civic integrity policy. overnight, twitter took down the account of a left wing activist, charged participating in the riot. his youtube is still active. jillian: dave rubin says the left changed its views on how government and private business should interact and the power of big corporations is something our founders never anticipated. >> if you took a hysterical, leftist political machine, what was formerly a relatively centrist democrat party, a liberal party of, say, jfk, that believed there should be some government and some private enterprise and they should struggle back and forth which is what most old of school liberals used to believe, if you took that and shifted it to today's democrats which believe the democrat should do everything, give everyone things for free, take from some, give to the other, if you couple that then with the big tech layer, giant corporations with corporate interests, tremendous amount of money and an unimaginable power over the way that we can communicate with each other, a type of power by the way that the founders 250 years ago could have never imagined that there would be corporations that could have more power than the government. jillian: coming up, a biotech entrepreneur breaks down big tech's intervention and the potential long-term effects. todd: joe biden may cancel the keystone xl pipeline permit as soon as the first day in office. a note to that effect was reportedly mentioned on the list of executive actions. biden opposed the project because of environmental concerns. it would move oil from canada to nebraska. jillian: guatemalan security forces used sticks and tear gas to combat a large migrant caravan headed to the u.s. between 7 and 8,000 people are part of the caravan. members of the biden team are reportedly urging them to abandon the journey. todd: the u.s. calling on russia to release an opposition leader. secretary of state mike pompeo writing confident political leaders do not fear competing voices. president-elect biden's national security advisor jake sullivan tweeting the kremlin's attacks are not just a violation of human rights but an afront to the you human people who want their voices heard. he was arrested after returning from germany, after being poisoned with a nerve agent. jillian: the chiefs hold off the browns to advance to their third strait afc championship game. patrick mahomes left the game with a concussion. the coach said he is, quote, doing good. the bucs defeated the saints, tom brady getting the better of drew brees to head for his first nfc championship game. drew brees did not give any hints whether he would be back next season. >> i'll give myself an opportunity to think about the season, think about a lot of things, just like i did last year, and make a decision. jillian: and tune in next week when brady and the bucs face aaron rodgers and the packers on fox. todd: if that clip is any indication, you hear the kids in the background, he may decide i want to stay home with the kiddies. jillian: no word on when the article of impeachment will hit the senate but republicans are already split. the chair of the committee to defend the president, ted harvey, says president trump should demand a trial. he explains, next. todd: this morning, we honor martin luther king, junior with his niece, dr. alveda king, just ahead. ♪ if i could be you and you could be me ♪ ♪ for just one hour ♪ ♪ if we could find a way to get inside each other's mind ♪ ♪ walk a mile in my shoes ♪ ♪ walk a mile in my shoes ♪ ♪ well before you abuse, criticize and accuse ♪ ♪ walk a mile in my shoes ♪ >> we did a lot of good things throughout the trump presidency and impeachment is purely a partisan thing. if republicans go along with it, it will destroy the party. a third of the republicans will leave the party. todd: rand paul warning that millions of republicans could leave the party over a trump impeachment conviction. jillian: this as mitch mcconnell leaves it up to gop senators to decide for themselves, calling the pending trial a, quote, vote of conscience. todd: here to react, ted harvey. you say president trump should actually want a trial. why do you say that? >> well, i think what we saw in the house was a travesty, they didn't go through the process they usually do. they didn't have a committee hearing in the judiciary committee, they didn't bring forward any evidence. they just rushed it through and what i believe was an effort to get their pound of flesh of the president before he left office. that was nancy pelosi's number one goal. and now the trial will be thrown into the lap of chuck schumer who will have to deal with this after joe biden is sworn in. the president for all americans, as joe biden is trying to say, they're trying to show a face of unity. it's going to be very distracting when they're trying to impeach a president who just got 70 of million votes. i think the president should ask for a trial and force the democrats to come forward with the evidence to show that it was his speech that encouraged the riot, because that just doesn't play out when you listen to the actual transcript of the speech, where he said we need to peacefully and patriotically march up to the capitol. he was encouraging the supporters to be peaceful. and then you look at the fact that the actual breaching of the capitol started 15 minutes before the end of his speech and it was about a 30 minute walk from the white house to the capitol. so there's no way that the people who actually were breaching the capitol in a ridiculous and shameful way were actually inspired by the president. they need to bring forward the evidence that they have to say that he was the one that instigated it and they can't do that and i think the american people need to see what really happened that day and why the shameful behavior of hundreds of people were not because of the president. jillian: we're running a little short on time. i have two quick questions for you. the first one is how much influence do you think mitch mcconnell has over the senators right now? >> i think he's wise to say he's not going to be putting pressure on anybody. it's going to be up to their own conscience to vote and i think once the evidence is seen, the republicans in congress are not going to support this witch hunt as the president would say. jillian: and who holds the most influence in the republican party right now, do you think? >> the american people. todd: understood. all right. obviously a lot of the focus this week is going to be on the legacy of the trump presidency. what do you think the legacy is? >> well, i think what you're seeing by the democrats and the media is to try to do everything they can to tarnish the legacy of the president. but the fact that he appointed three u.s. supreme court judges, that will be conservatives and control the court majority for 30 or 40 years, that will be a lasting legacy here in the united states and then when you look at the peace deals where you have four arab countries that have finally recognized israel as a sovereign state, that will have lasting ramifications between jewish and arab neighbors for generations to come as well. there's nothing that the media can do to try to tarnish the president's legacy. that will last long beyond you and i are still on this earth. jillian: i guess you just wonder if the events of january 6th overshadow a lot of that to the american people. >> well, it breaks my heart because a bunch of trump supporters who went into the capitol have done a great deal of damage to the incredible things that this president has done and it breaks my heart for the president and it should infuriate everybody that's a part of this movement. todd: 100 years from now it will be troughing see how -- be interesting to see how history views this president. jillian: this morning we're honoring martin luther king, junior. todd: a look at his incredible life and legacy and messages of faith with his niece, dr. alveda king, next. robinhood believes now is the time to do money. without the commission fees so you can start investing today, wherever you are — even hanging with your dog. so, what are you waiting for? download now and get your first stock on us. robinhood. new year's resolutions come and go. so give your business more than resolutions... give it solutions, from comcast business. work more efficiently with fast internet and advanced wifi. make your business safer with powerful cybersecurity solutions. and stay productive with 24/7 support. make this year's resolution better solutions. bounce forward with comcast business. get started with a powerful internet and voice solution for just $64.90 a month. plus, for a limited time, ask how to get a $500 prepaid card when you upgrade. switch today. jillian: welcome back. today we honor the legacy of civil rights icon dr. martin luther king, junior. todd: his niece, dr. alveda king, joins us now with how we can keep his message of love alive every day. great to see you as always. how should we be honoring his legacy today and every day. >> i believe we should remember the words of my uncle, the reverend dr. martin luther king, junior. i never have to second guess. all i have to do is read his words, his sermons and remember. so i believe that if he were here today, he would encourage us as americans, as a one blood race, not separate races, as human beings here in america, to learn to get along, to communicate. because he says that we would perish as fools if we did not. jillian: i guess when people feel so silenced and when they feel like an outcast in their community and society, how do you heal that? >> the way that we heal is to begin to make individual decisions first. for me, for example, i decided not to argue, not to fight, not to debate. when people challenge me with any of my positions and my thoughts, my answer is first i love you. i'm your sister. and i insist on staying in that position. i do not insist on getting my own way. i explain where i am and i listen. todd: alveda, what would mlk's message of unity be to a congress and a country in such a divided time? >> i believe that he would advise the members of congress to be bipartisan, care more about the people than winning your own way and even being reelected. you can be reelected when people find out that you sincerely are interested in the american people, that is where we need to be rather than so politically polarized that we can only defend the position of our party. jillian: what would he think about what's going on today? >> i believe everything that's going on today with the he covid scare, the threats of violence and riots, people want something that is certain, especially the younger people, the generation of folks that are right here, right now on social media and all of those outlets and people really just want the truth. they're tired of the in-fighting, the arguing and the bickering and people are just absolutely scared with all the reports of people who are still getting covid and everything and now we're finding out even to get the vaccine we could still get it and all that kind of thing. so they're going to be looking to the politicians for answers, but i would advise people to look to god for answers. because our real help and our answers come from god and not those who are in political power. todd: alveda king, house on fox nation, you have a special honoring your uncle. it premiers today, appropriately. dr. alveda king, as always, a pleasure having you on, especially on a day like today. jillian: thank you. >> thank you so much. todd: still ahead, the nation's capitol a fortress, the fbi vetting national guard troops. a firsthand look at the preparations coming up. jillian: critics slam blake shelton, calling his minimum wage song tone deaf. how the country music star is responding, coming up. ♪ it's like a million dollar bill. ♪ you can make your one bedroom feel like a house on the hill jillian: good morning, welcome back. the u.s. condemns the arrest of a russian opposition leader. he spent the last five months recovering from a nerve agent attack in germany. todd: trey has details. >> reporter: good morning. condemnation for the arrest of alexei navali is pouring in from around the world, including both sides of the aisle in the united states. we know overnight u.s. secretary of state mike pompeo released a statement calling on the russian government to level the playing field for all political parties and release him. president-elect joe biden's incoming national security advisor jake sullivan tweeted his support, saying mr. navali should be immediately released, adding the kremlin's attacks are not just a violation of human rights but an afront to the russian people. he traveled to russia sunday after spending months in germany, recovering from being poisoned. navalni blamed vladimir putin for ordering it. the russian on of significance leader was immediately arrested after his plane was diverted on sunday to a separate moscow airport. he was able to kiss his wife good-bye before being taken into custody. russian officials say he violated the terms of a suspended sentence from a fraud trial in 2014, giving them justify case for arresting him. -- justification for arresting him. why did he return to russia? it has to do with politics. it's been difficult for opposition leaders in the past to retain relevance in russia. he said he wants to continue his fight not only against president putin, but against the entire kremlin who disagrees with his ability to do so. todd: opposition doesn't always turn out well for folks dealing with president putin. thanks, trey. jillian: the fbi announced they will run background checks on all 25,000 national guard members deployed to the capitol to prevent a potential insider attack. so what other security measures should we expect? homeland security analyst joins me now. thank you for being here. >> good morning, jillian. jillian: let's start out with that, how significant is it that we are hearing this report that the fbi is vetting all of the national guard troops out of fear of an insider attack? >> jillian, this is very significant, and i also preface this by saying this is the largest coordination in joint operation effort on u.s. soil between law enforcement, military and intelligence agencies, since 9/11. there's a big issue here with insider threat in terms of the belief that there may be some folks who may be aligned with other political views, but i'll also say preparation includes deployment of an oversight lead. there's a lot of stakeholders involved between fbi, the department of definance, the intelligence -- defense, the intelligence communities, the local law enforcement and we have to establish command and control on the ground. jillian: what else is going on behind the scenes and how important is it right now that social media sites are completely vetted and monitored to be able to see what type of chatter is going on online? >> it's very critical. law enforcement is doing everything they can to effectively look at all threats possible but this is not just the social media side of things. this really expands to all threat domains which include cyber, maritime, security, which include space, land air and sea assets to look at what additional risks may be out there. we're trying to make sure we have maximum coverage and make sure that our agencies are working cohesively to address these threats in any of those domains. this is a much larger military operation and the most important thing is the command and control aspect. we have a variety of threats that do exist and mitigating them using a surge capacity strategy with combined agency support is how we mitigate those threats in the field. jillian: i was talking to one of my friends yesterday, she lives in d.c., not too far from some of the zones that are completely blocked off. she's okay to get in and out of where she lives but she said it's nerve-racking here. she was like i've never felt anything like this. what is your message to the public? >> you know, i've served in two tours in afghanistan. i've been a part of multiple operations. never in my lifetime would i have anticipated that the american people would have to see any form of military deployment surrounding our capitol. my message to the people is that we shall continue to believe in democracy and that the principles that are the bed rock of our society are being guarded. but important for us to remember we are americans first and this process will go forward and we'll make sure that we'll do everything we can to serve the american public. jillian: absolutely. adam roosevelt, thank you for joining us. todd: a missing arizona woman found alive in critical condition. jessica goodwin vanished after calling into work. she was found three days later. a rescue crew tracked her down by tracing her phone records. she was air lifted to a hospital for treatment. the case is under investigation right now. and overnight, los angeles police calling attention to the city's deadly crime surge. the department labeling the stats shocking, tweeting 16 days into 2021 and homicides in south la are up 150% compared to last year. the city's top cop pleading for elected officials and the community to help stop the senseless violence. victims shot in that area, get this, up a whopping 742%. jillian: the incoming cdc director warning the pandemic will get worse before it gets better. >> do you agree with his forecast that it's going to get worse? >> unfortunately, i do. by the middle of february we expect half a million deaths and we still yet haven't seen the ramifications of what happened from the holiday travel. so yes, yes, i think we still have dark weeks ahead. jillian: the doctor says new strains of the virus may be resistant to antibodies but believes vaccines are still effective. the u.s. reports nearly 24 million cases with nearly 400,000 deaths. take a look at this, a florida man is celebrating his 90th birthday by buying this red corvette. the air force veteran, chuck cook, said he could not wait to get to all the car shows, his friends flocking to the dealership to help celebrate and to check out his new ride. cook made clear this beauty is just for fun and does need an suv to run around. todd: i love that. jillian: good for you. todd: what are you saving it for? go do it. have at it. enjoy life. time now, 36 minutes after the hour, finger pointing in the wake of the capitol riots. >> these people come over and take over the capitol. where was nancy pelosi, it's her job to provide security. todd: senator lindsey graham's frustration with speaker pelosi over the lack of security ahead of the deadly siege. want to make a name for yourself in gaming? then make a name for yourself. even if your office, and bank balance are... far from glamorous. that means expensing nothing but pizza. your expenses look good, and your books are set for the month! ...going up against this guy... and pitching your idea 100 times. no, no, no! no. i like it. -he likes it! ...and you definitely love that. intuit quickbooks helps small businesses be more successful with payments, payroll, banking and live bookkeeping. jillian: florida sheds a grim milestone with a record 1,600 coronavirus deaths last week, a 73% increase from the previous week. state health department data shows over 94,000 new coronavirus cases, this as over 915,000 in the sunshine state received their first vaccine dose while just under 92,000 have received their second dose. todd: los angeles county topping 1 million covid-19 cases despite strict lockdown measures. on sunday, the county recorded more than 11,000 new cases and 108 deaths. los angeles is the top hot spot in the nation in terms of cases. los angeles county reporting its first case of the new strain, physician discovered in the u.k. jillian: senator lindsey graham placing blame for the capitol hill riot on house speaker nancy pelosi. watch this. >> these people come and take over the capitol, the house and the senate, beat officers, defiled the seat of government, where was nancy pelosi, it's her job to provide capitol security. todd: carley shimkus here with how her office is fighting back. carley: lindsey graham wondering about the security failures and how they relate to house speaker nancy pelosi, like you said, her chief of staff responded to that moment from maria's show yesterday, saying this disgraceful attempt to shift blame for the mob attack on the capitol is absurd and pathetic. he need only look in the mirror if he wants to start pointing a finger. he has repeatedly cast doubt on results of a fair election and dangerously fanned flames of right wing quackery. lindsey graham went on to talk about the people who participated in the riots, saying they should be prosecuted to the fullest extent of the law. the president should not pardon any of them, guys. jillian: okay. so blake shelton has a thing or two to say, right? carley: he's getting backlash over his latest song, it's called minimum wage. some people are calling it incentive. take a listen to a little bit of the song. we'll talk about it on the back end. ♪ you can take my truck out of the driveway. ♪ like a cadillac. ♪ making a man feel rich on minimum wage. carley: could make a man feel rich on minimum wage, says blake shelton. some people criticize that. this twitter user says does anyone else find blake shelton's minimum wage song to be incredibly tone deaf to the country's state. shelton was asked about that by cmt. he responded saying whatever the backlash is just four or five people that probably don't know a thing about country music. they haven't heard the song or of read the lyrics, if they had, they couldn't feel that way about the song. he said it's a love song. he said times are tough and as long as you have love that's all that matters. todd: i bet the guy that wrote the tweet is a lot of fun at parties. an awesome act of charity. carley: talk about the ultimate pay it forward movement. wyoming multimillionaire foster freeze giving 400 of his friends, family, folks that he knows, $100,000 each and then he's asking them to donate that money to the charity of their choice. that's $40 million. he talked about the donation, saying if you could read just a few of the responses we get from recipients and friends who have been excited about distributing the gift, you would of understand why the term it is more blessed to give than receive is such a truism. a south dakota governor and all of her family members received those $100,000 checks. she says foster and lynn his wife are some of the most remarkable people i've ever known. the family is donating to five different south dakota charities. think of all the thousands of people that will benefit from this massive sum of money. jillian: incredible. carley: absolutely. todd: rich people aren't that bad. there you go. carley, as always, a pleasure. jillian: thanks, carley. todd: vice president mike pence and second lady visited troops in fort drum, new york yesterday. this would be their final official appearance as america's second couple. during his remarks, he thanked the troops for the past four years. >> i'm here to deliver a simple message to each and every one of you, on behalf of your commander in chief and every american, thank you for your service. and to the first brigade combat team, welcome home. jillian: the troops of the first brigade recently returned from afghanistan. it is about 15 minutes until the top of the hour. a new caravan pushing its way closer to the u.s. critics blaming the president-elect rhetoric for motivating the migrants. >> nobody is going to be deported in my first 100 days. todd: so is joe biden helping create another caravan crisis and will he be able to handle it. our political panel debates, next. new year's resolutions come and go. so give your business more than resolutions... give it solutions, from comcast business. work more efficiently with fast internet and advanced wifi. make your business safer with powerful cybersecurity solutions. and stay productive with 24/7 support. make this year's resolution better solutions. bounce forward with comcast business. get started with a powerful internet and voice solution for just $64.90 a month. plus, for a limited time, ask how to get a $500 prepaid card when you upgrade. switch today. i have an idea for a trade. oh yeah, you going to place it? not until i'm sure. why don't you call td ameritrade for a strategy gut check? what's that? you run it by an expert, you talk about the risk and potential profit and loss. could've used that before i hired my interior decorator. voila! maybe a couple throw pillows would help. get a strategy gut check from our trade desk. ♪♪ >> i will send an immigration bill to the united states gnats senate with a pathway to citizenship for over 11 million undocumented people in america. some of you are going to get mad at me with this, but nobody is going to be deported in my first 100 days. there will not be another foot of wall constructed in my administration. todd: joe biden promising that his administration will have one of the most progressive immigration policies ever. but with thousands of migrants making their way to toward the u.s. border right now, the promises will be put to the test. joining me to discuss, thank you for being here. amanda, first question to you. we're going to pop up on the screen joe biden's ten day agenda. the focus on immigration and two things that pop off right off the bat to me, canceling the travel ban and legal status for all undocumented immigrants in our country, all 11 million of them. is that putting america first, amanda? >> it's absolutely not putting america first. as a legal immigrant myself, what a slap in the face for those of us who waited our turn, some over two decades, waiting, paying legal bills to become u.s. citizens. joe biden turns around and says you got here illegally, you broke laws, we're going to reward you with citizenship. if we are nothing, we're a country of laws and those laws are not meant to be broken and that's what joe biden is doing in not putting america first. compare that to president trump, who when he found caravans were coming over in 2018, he fortified the border, putting 5,000 additional troops. he worked with lead toers of the central american countries to make sure that these people did not work their way up north and he secured our border from people who were trying to come here and be here illegally and he said he would prosecute them and guess what, they didn't make it here. so that is an agenda of putting america first, not joe biden. todd: a lot to unpack there. have at it. >> well, look, president trump thinks he's above the law by the way. and he has lied to us from the beginning. he started his campaign saying that mexicans were rapists and murderers, he told us he would build a wall and mexico would pay for it. he didn't build the wall, he put a fence where some barricades were and mexico didn't pay for it. the man has lied to us, he continues to lie to us. there seems to be a trump cult that wants to believe whatever the dear leader say. the reality of the matter is he failed, he failed us at the border, he failed us on immigration and he failed us in transition of power which has been a hallmark of american democrat civil we should stop saying president trump, president trump, president trump and hailing what he says as if it's true. he lies to us every day. we need to stop. todd: respond to that and then we'll get to the joe biden stuff. >> notice how he never mentioned anything about joe biden. we need to stop talking about president trump. if president trump did anything, he made sure that the caravans didn't make it over here to the united states. but what is joe biden doing? he is allowing people to break our laws, to become citizens. he is rewarding bad behavior and that is not what america is about. so look forward, not backwards. trump's gone after wednesday. todd: to that point, i want to look forward because the segment was supposed to be about joe biden. here's where we stand right now. there's a migrant caravan coming up right now. here is what the caravan has stated. quote, we recognize the importance of the incoming government of the united states having shown a strong commitment to migrants and asylum seekers. we will advocate that the biden government honors its commitment. here's a statement from a biden transition official. quote, the situation at the border isn't going to be transformed overnight. there's help on the way. but now is not the time to make that journey. did joe biden back himself into a corner here? >> no. president trump has created -- manufactured a problem at our bore of deer. he basically didn't -- border. he basically didn't deal with the refugee issue. he left camps of people at the northern border of mexico. he tones try to maximize this as a political win for himself to rally his base. todd: what about biden? >> i'm trying to explain. president biden has to deal with the problem that president trump has left. we keep talking about joe biden. he hasn't taken office yet. everything we've seen that's been a problem has happened under the leadership of president trump. i will look forward. joe biden hasn't taken the oath of office yet, yet you want to have him responsible for the problems that this administration created and manufactured. todd: not responsible. what's the plan? >> the plan is to clean up the trump mess that we see right now. you keep talking about his plan, his plan is to clean up the mess that president trump has left everywhere, including at our southern border. todd: amanda, do you see biden giving into the caravan or giving into not the caravan? >> i think that joe biden has taken a stance on this. he is pushing legislation for this week as i understand that pro-immigration groups and activists said is the most bold an aggressive legislation that they've seen. and so i worked in the senate for about a decade. this legislation is dead on arrival. you're going to have -- [ indiscernible ]. joe biden's plan is not going to happen. todd: i think clearly there's a discussion to be had here and we just had part of it. it's going to be interesting to see who wins out on this, the caravan for if joe biden risks upsetting his base by keeping them out. it will be interesting to see what happens in the first ten days. jillian: a big hour still ahead on "fox & friends first." gordon chan, nicole malliotakis and brian brenberg all live come urge -- all coming up. ♪ let's get it started. ♪ let's get it started. ♪ let's get it started. ♪ let's get it started. ♪ let's get it started. robinhood believes now is the time to do money — without the commission fees and account minimums. so, you can start investing today, wherever you are — even on the bus. download now and get your first stock on us. robinhood. jillian: good morning, it is monday, january 18th. a fox news alert. the fbi vetting more than 25,000 national guardsmen ahead of president-elect joe biden's inauguration. todd: we're live in washington with concerns of an insider attack. back in business, social media platform parler reappearing online with a promise to fight but big tech is not done censoring conservatives, the latest republican kicked off twitter. jillian: the battle of the ages, tom brady and the buccaneers crushing the new orleans saints. "fox & friends first" continues right now. ♪ all i do is win, win, no matter what. ♪ got money on my mind, i can never get enough. ♪ every time i step into the building, everybody's hands go up. jillian: tom brady doesn't always win. i recall a super bowl where he did not win. todd: you know what, mele? i will see your one super bowl where he didn't win and i'll raise you two. that took way a too long. this is a giant's mask. that's the most fun we're going to have all week. you just got all of our fun for the past five days. jillian: you're watching "fox & friends first" on this monday morning. i'm jillian
GermanyMexicoArizonaUnited-statesAfghanistanSouth-dakotaWashingtonWyomingFloridaVirginiaGuatemalaCanada january 21. here's a time line on what we know so far. 3:17 p.m. local time websites began to be affected. 3:3 p.m., millions of users at that point were unable to access various websites. by 4:00 in the afternoon, connections started to be restored. however, at some places in china it seemed like the internet was out for many hours. we've seen reports out for up to eight hours. our editor at large, cory johnson, with me now here on the set. part of the reason there may be such a discrepancy in the time is some of the servers in china may not have refreshed after eight hours in those second and third-tier cities. >> fundamentally, i think what happened the last 24 hours we had arguably the biggest shutdown in the history of the internet and that speaks also to the growth of the internet, when the internet was smaller in years past the shutdowns wouldn't have been such a big deal. but this is a huge deal for the chinese economy and also speaks a lot to the technology culture and what it means for the impact of technology in china, happening really today and people reassessing what that means. in china so many people rely on the internet, unable to get business done and unable to work and has had a big impact on a lot of people and companies in chi. >> obviously we know the great firewall in china has been erect for many, many years. we know facebook and twitter are still blocked. but what we're talking about here is every single dot-com address in the country, there have been a number of -- there has been a lot of speculation why this happened. some people saying it's a massive cyberattack and what played out in the chinese media and the chinese foreign ministry basically said, we were attacked. however, other experts are saying it appears as if the chinese government was trying to block a website but instead rerouted traffic to all -- to that particular website. >> every incredible source is saying it wasn't hackers attacking china but quite the opposite, it was china trying to use its sensorship tools to keep certain sites away and made mistakes in that process and rerouted traffic to places they didn't want the traffic to go at all and crashed the internet for the entire country. it's showing a great risk chinese businesses are facing, that the chinese government is inflicting on its own country and own economy by erecting this great chinese firewall. >> on that note i want to bring in a couple experts, jordan robertson who covers cybersecurity for us here at bloomberg news as well as mr. chang covering the collapse of china. you lived in hong kong for almost two decades and i lived there several years. what's your take on what actually happens here? >> well, i think essentially what we saw was the chinese sensors killing themselves. this is like a weapon of mass destruction. they've gotten so sophisticated, their tools are so comprehensive when someone makes a mistake it has nationwide implications. some people are saying the great 2003 blackout in north america was caused by a chinese hacker making a mistake, they did it to us and looks like now they've done it to themselves. >> jordan, you've got two potential theories here, that it was a massive cyberattack or the chinese government did it to themselves? >> there's an amusing aspect to the question. when we talk about hacks we think of external hackers but when i saw the report, it was the hack themselves. with the government creating this censorship it has created a weapon that can easily backfire and in this case it did. you enter the u.r.l. in the wrong line of some system within the centralized sensorship apparatus and out goes the internet. it's their own fault, really. >> is it possible in the united states, is the internet so centralized somewhere someone can make one mistake and this would happen? >> not in the same way. the internet is actually very fragile so mistakes like these happen all the time. there was a famous example in 2008 where pakistan was trying to block access to youtube and wound up sending 2/3 of the world's youtube traffic to pakistan where it was sinkholed. 2/3 of the world couldn't get access to youtube because pakistan was trying to block it. the underlying infrastructure of the internet is fragile and this incident exposes that. >> maybe more so in china because in one sense all of the traffic going into one of the most populous countries in the world is essentially being routed through one central set of rules and when those rules change as they did yesterday, this is what happens. i think what it highlighted, also, you saw it in wall street, you saw all the chinese companies that came to the u.s. to raise money and you see these stocks really selling off today. the list of stocks sold off this morning and was very aggressive initially. but a company y.y. down 5% and baidu down 5% and other companies, all down 6%. i think all this morning, with some justification, it isn't just nervous trigger fingers, this exposes the big risk chinese technology companies have because they're operating behind this great wall. >> you wonder, what are the implications of something like this. obviously u.s. businesses had major difficulties operating in china and the chinese government has effectively shut them out. but, you know, in terms of chinese companies, this is having a huge effect on them as well, especially today. >> well, certainly, because anybody who works in china knows there will be many times during the week where you will not be able to access a site. and you know, this is really related, i think, to the problems in the central government right now. this attack or this problem occurred at the same time where we had this report by the international consortium of investigative journalists about the offshore assets of senior chinese leaders. so there are coincidences in china. it's a big country. but i think these two incidences are actually related because they occur very close in time to each other. >> when you look at the chinese leadership, there's been a lot of discussion, are they going to be more conservative or open than their predecessors and there was hope they could be more open. certainly the events of the past year make it seem like they're almost moving backwards. is that the case? >> they're certainly moving backwards because under china's ruler that came into power in 2012 we've seen much more censorship, not just the internet but also expression. we have all these trials going on 6 anti-corruption activists and this is an important development because there was hope when ping became china's ruler and now there is no hope. >> when you look the way the internet is built in china, is there hope it can't be stopped, that the openness that's inherent in the way people communicate openly on the internet, that this is showing the limits of that and the chinese people, because they're starting to rely on it for business, for work, for commerce, as they can't -- gordon, let me ask jordan first. we've got gordon and jordan. but you know how much the internet is built. >> there is no centralized choke point in the u.s. like there is for china. despite that fact, there's an irony in this incident that the site they were trying to block, that the chinese government was trying to block, was a site that helps chinese users get around the great firewall. this shows there's a lot of interest in these technologies and a lot of internet users in china are able to circumvent the firewall. >> i lived there three years and it was standard, everyone had a v.p.n. or virtual private network and you easily could get around the firewall and use facebook, use twitter, for example. >> this is something the government has to address because you can't control the internet in this way forever. as more people want access to these services, they'll to reconcile what their values are in relation to the internet. >> does the chinese government think they can stall out the growth of facebook which has been incredible, the growth of twitter which has been so strong as well, not anywhere near so strong but that the chinese homegrown social networks will be the social networks of the future? >> right. >> or will the global reach around china, if you will, of both twitter and facebook, eclipse the growth of the chinese social network? >> we were talking to an expert earlier this week who says he thinks it's a little too late for facebook, even if they were let back in the country, these other social networks have grown so vast it would be impossible for facebook to take hold that kind of way. we have discussed this fact there are a lot of motivations for what the chinese government presumably is doing in terms of controlling the internet but one of them could very well be to boost up these, you know, chinese businesses, and they've certainly benefited from the chinese government shutting these other companies out, but at this -- you know, in a situation like this, you're seeing the backlash. >> gordon, let me ask you, do the chinese companies -- we see this with the problems that u.s. companies are having with the n.s.a.'s rules. do the chinese companies, the chinese entrepreneurs, have much pull with the central government in china? will they be able to raise their voices and say hey, you screwed up and ruined our business? >> they'll be able to do that but in the balance of power, clearly the party is much more influential. we've seen, for instance, all of the big v's, all these people on the twitterlike service really be humbled the last three or four months and many being paraded on china's central television and this was the idea of trying to control expression in china so essentially, yes, entrepreneurs are influential but certainly don't have that political power yet. the one thing that's really important, though, is that most chinese people want free expression and eventually they will prevail. >> i recently spoke with the c.e.o. of baidu, one the largest search engines in china, and he said we follow the law and don't censor things willy-nilly based on our personal desire to, we're following the law, point-blank. if we didn't follow the law, we would be shut down. jordan robertson covers security for bloomberg news and gordon chang, author. we'll continue this conversation after this quick break. also coming up, why is top talent such a top priority for tech companies? and how important are engineers in particular? we'll dig into the value of a good engineer with twitter's former head of engineering mike an ots later in the show. -- mike abbots later in the show. ♪ >> welcome back to "bloomberg west," i'm emily chang. we turn to our top story, what caused china's internet outage and just how powerful is the great firewall? with us from new york is gordon chan, author of "the coming collapse of china" who lived and worked in china for many years and cory johnson along with jordan. you mentioned some upcoming challenges at baidu and this company benefited from the chinese government control on the internet, companies like google leaving the country because they don't want to deal with censorship issues that come with operating in china. tell us more about these potential challenges coming for baidu down the road? >> we have to remember baidu was helped because the chinese government undermined google which was the dominant search engine and today google shares have fallen by a half or so and baidu is up. the problem is people's daily, the flagship publication of the communist party has been hinting about getting into the search market. i think its plans are on hold but if it does ever go forward, baidu will be at risk because bay shing will do to baidu to what they did to google before and that's a real risk for baidu. >> how active is the chinese central government in planning the businesses or helping to grow the businesses that are in china? and how could today's events, the events in the last 24 hours, change that? >> basically in the chinese central government, they've been very active in planning the economy full stop. clearly it has tried to make sure homegrown competitors will be able to develop sufficiently. >> planning the economy is one thing, right? every central government does that. planning the success of specific businesses with specific technology is a whole different thing. >> and they certainly do that because you see when foreign companies come into a market, they become too powerful, one way or another, they're attacked, especially we saw this with the pharmaceuticals, with tetra pack in packages and a number of other companies in the last six or seven months and that's really been to help local competitors. this is very much a part of what the chinese central government does. a lot of other governments do it as well but china is much more effective at doing this than other governments. >> on that idea of internet freedom, we in silicon valley think -- are very idealistic about the need for internet freedom everywhere. almost everybody i talked to who is an expert on china says look, the internet in china isn't going to become more open or liberal any time soon. they're not going to reverse their policies. in fact, it looks like it's only getting worse. >> we hear a lot here in silicon valley about the need of technology to expand free expression and expand freedom. we hear it from companies like facebook and google and a pretty self-serving argument and what is a mask for what is a tremendously profitable business even if it's incremental improvements we see in china from pressures that arise from things like outages, whether it's pressure from businesses or consumers, those are incremental changes that some point in the future might lead to -- >> to gordon's point the notion of freedom will prevail has been the central theme of u.s. policy towards china over the course of the last 80 years. so the notion it will prevail, we're about three or four generations into that and don't know the internet is making it faster. the chinese government is certainly trying to keep it from happening. >> when i lived in china and covered china, i had this conversation with so many different people and nobody is optimistic. they say that this could take decades if this ever happens. >> that's really a drag. >> it is. >> let me ask, jordan, in terms of the way the technology works, could the n.s.a.'s involvement in -- deep involvement in all aspects of internet traffic pose similar risks? or if not, why? >> any time you central control anything this risk occurs. the n.s.a., their big strategy is to attack the nodes where communication is centralized so the channels and the cables where communications flow. so they insert themselves at kind of the key points where our internet traffic goes. so potentially if something goes wrong in one of those operations, we could see damage to the global internet. it's a pretty wonky, obscure topic but that's where the n.s.a. really lives. >> we like wonky and obscure. what you're saying essentially is the n.s.a.'s approach is to be at every intersection. >> every important intersection. >> and chinese approach is to be on every street? >> they essentially want to be in the same place. the n.s.a. would love to be inside the chinese firewall at the place this error occurred and they may well be. the n.s.a. is kind of the equivalent we have in the u.s., it's not a centralized system of control but these are the centralized systems where all internet traffic travels from. >> is it possible the n.s.a. could have made a mistake like this? in the united states or wherever they are? >> if you're thinking about something like sabotage, if the n.s.a. were inside the chinese firewall and wanted to do something like this, it's really kind of a sexy proposition that something like this could happen. but any time you set up a system like this, this is the risk you run. >> i think we started all the conspiracy theorists talking just then. >> yeah, we're here to help. >> jordan robertson who covers security for bloomberg news and gordon chan, author. we're getting new details and will bring you anything new as we have it. coming up we'll tell you about software technology that could be the n.s.a.'s worst nightmare, speaking of the n.s.a., that is next. ♪ >> "bloomberg west" is brought to you by exxonmobil. >> welcome back to "bloomberg west." tonight on a special titans at the table, betty liu has an exclusive interview with two powerful men, bill gates and mike bloomberg. these titans are tackling the myth that poverty and disease cannot be eradicated. that's tonight at 9:30 p.m. eastern time and pacific here on bloomberg television. everyone is familiar with the n.s.a., of course, but what is tore and why is it a threat to the n.s.a.? tore is a free software technology that allows users to keep their online presence anonymous, making it difficult for the n.s.a. to track your activity. bloomberg news describes how it works. >> with the talk of n.s.a. and encrypted data, i you might wonder how to keep your online activity on the down low. there is a way. there's a software technology called tore, stand for the onion router, referring to the vegetable with many layers. tor is free software you can download on your p.c. or smart phone to anone mice your data. tor takes your data and bounces it around the world over several different data nodes. those nodes only know one thing, where to send your data next. that way no person or agency can figure out where the data came from or where the data is going. currently, about four million people use tor but tor isn't for everybody. first of all, bouncing the data around the world kind of slows things down. furthermore, tor isn't compatible for things like flash so watching video and cool online graphics is difficult if not impossible. tor drives the n.s.a. crazy because it's so darn good at masking all that online data. who does the n.s.a. have to thank for this dastardly data hiding technology? it would be the u.s. navy. much of the funding behind tor came from the navy, the state department and the pentagon. that's because tor can be used for lots of people for very noble purposes and been embraced by privacy advocates, disdents, and journalists. but anonymity has its benefits to people with far more nefarious goals as well and it includes drug dealers, gun runners and terrorists. kind of a rough crowd but if you want to keep yourself invisible online, there's absolutely nothing better than tor. >> bloomberg business week's sam grobart. it's time now for "on the markets" at 26 past the hour. i want to get straight to new york where alix is standing by. >> what you need to know, it's looking like an ugly day all across the markets. you look at the dow, off by almost 200 points, triple digit decline and s&p off by 20 points. and the nasdaq is faring -- fathering the best by all three, down less than 1%. if you look at the sectors within s apped p it's materials and energy leading the decline. we're watching area pharmaceuticals and hit three week highs diverging from the market after a report said they had been approached by three other farm companies and ariad told bloomberg the company does not comment on rumors. we're looking at american eagle and we have a switch, the c.e.o. robert hanson is out and have a downgrade as a result. we're on the market again in 30 minutes. >> bloomberg television is brought to you by united rent always. you're building the future. we're here to help. >> this is the early edition of "bloomberg west," i'm emily chang. catch us at our later time, 3:00 p.m. eastern and 6:00 p.m. eastern. for your bloomberg top headlines, ukraine is calling an emergency session of parliament after anti-government protests turned deadly. the parliament meets next week to try to come up with a solution. ukraine's president talked with u.s. vice president joe biden via phone today about ways to resolve the crisis peacefully. sales of previously owned homes rose in december, posting their first gain in five months. sales were up 1% according to the national association of realtors. in the meantime the labor department says first time jobless claims remained near a six-week low, rising slightly in the last week. and justin bieber's bail has been set at $2,500 by a miami judge. i think he can afford that. this after his arrest this morning. bieber was arrested for d.u.i., drag racing, and resisting arrest as well as driving with an expired license. police say the singer was not cooperative at first and admitted to smoking pot, drinking, and taking prescription drugs. well, it's been a war for talent in silicon valley especially for engineers which has led companies as big as google to start up perks like free food, unlimited vacation time to recruit some of the top talent out there. so what makes a good engineer so valuable? mike abbott joins us with more, former head of engineering at twitter and now you're investing your focus on enterprise, infrastructure, cloud computing, and you basically were the guy that took twitter from scrappy startup, and ready for primetime. i want to talk more about engineering in particular but first we've been covering this china story this entire show. when something like that happens, when an entire country's internet goes down, what happens on the back end? what are engineers actually doing? >> first of all, thanks for having me, emily. i think the first thing is depending on who the engineers are, they may be freaking out and saying, what is actually going on? >> right. >> i know actually when i first joined twitter the site would go down and we didn't always have a lot of visibility and asked why is it down? >> how would you find out why it's down? >> you need to provide the right instrumentation and people that collect the data to understand what's going on. what's the overall statistics on the environment? in this case, i don't have enough details to understand exactly what they have or not but typically going out and really seeing, looking at what kind of visibility can we get into the kind of current state of the system so we can root cause, what's actually gone, how do we get out of that state and furthermore, how do we do a postmortem so it doesn't happen again. >> put it in context a bit, when you were at twitter, what did you do to get out of the farewell? >> it was bringing in a lot of great people and augmenting the team that was there and would be the first and foremost, getting folks from google and other sites ahead, seeing that type of scale and many of the engineers as well as the engineers over there focused on getting the visibility and instrumentation into the overall infrastructure to understand what was going on. >> basically getting eyes and ears out there. >> and also sharing information between teams. i know when i joined and the site was down there was only maybe a handful of engineers who understood the complexities of the system. how can we decompose that information and get it to others so we can have a collective team to root cause the issue and solve it versus heroics by a handful of folks. >> we all know engineers are in demand and that there are not enough good engineers. what makes a good engineer? what can a good engineer do that a mediocre engineer cannot do? >> it's a great question. and it's hard to answer that question very specifically because it depends on what you're trying to build. but i think great engineers want to work with other great engineers, he or she, they want to make an impact on whatever they're working on. and they are working on an interesting problem and having a great impact and working with great people, they want to work at your company. >> do good engineers drive innovation in the sense that, you know, are they given a problem to solve or do good engineers come up with the problem to solve? do you get my point? >> i do. i think great engineers come up with solutions to address a problem. and i think in many great product companies, the problems, if you will, are outlined by the design team or maybe a product manager. i think oftentimes, at least in today's world, it's the design team. the design team may have a vision for a particular interaction and particular product and it's up to engineering to think through, how do i come up with realizing that vision or dream? now, there has to be a path, too, for engineers to be able to provide input to that innovation. one of the things we started at twitter to drive that was basically how do we carve out time for engineers to come up with ideas, not of which actually made it into the product but had an opportunity, had the knowledge for that innovation. i think great engineers love computer science and love deep problems and want to be able to have that quiet in silence, be able to work on the problems without dealing with a lot of other -- >> speaking of the relationship between engineers, product, design, at twitter just last week, the head of product left, we don't know exactly why but he said in a blog post-it was time to leave but there's been a lot of speculation that twitter has been a very difficult company to ship new product at, the twitter we all sort of love and know has been pretty much the same for many, many years and been difficult to make any changes for whatever reason, maybe users don't want it or maybe other forces in the company don't want it. what's your take on what happened there? >> well, i don't have a lot of the details but what i can say in most companies there's a center of gravity that exists, either in engineering, design, or product, and depending on where that center of gravity resides, there's a lot of other implications for the company. and i think with twitter the center of gravity has always been in product. certainly jack is a product person, ed is a product person, biz and jason goldman. it always sat there and it's difficult when you have a product so focused on simplicity when you have kind of this push to add new things. so we had this balance, i think a constant tension of how do we keep the service really simple, yet think thoughtfully how to extend it in ways that are meaningful for users. >> as an investors, you're working very closely with your portfolio companies. where should the center of gravity be and is it different in a startup versus a company as big as twitter now that has to make money? >> i don't think there's one answer where it should sit. i think oftentimes in consumer companies, the -- really needs to sit probably closer to the design and product because that's really what the main consumers love. >> then you have people -- the revenue team saying but we need to make money. >> i'm a big believer if you've got a great product and great service there's a lot of different ways to extract economics from the service. and i mean, the same way at twitter we rolled out and promoted tweets. that was done in a very deliberate, slow way. a lot of that technology was done way in advance of it actually rolling out but we wanted to be really careful about with not disturbing the user experience at the expense of just generating some revenue. having that discipline is really important. i feel like on the enterprise side, ooven times you look at early stage companies, that gravity is in engineering because they're targeting an oftentimes known, not always known, but problem in the enterprise and they're coming up with a different type of solution. and i think innovation varies between consumer enterprise. in enterprise you know the problem and the project manager in the enterprise company is representing the customer whereas on the consumer side, a lot of times you and i didn't even know we had that problem. you look at uber, like oh, wow, it's a fantastic service but i didn't necessarily know i had that problem five years ago but it was difficult to get back to new york. >> if i didn't have it, i'd be screwed. mike abbott, we're going to continue this conversation after the break and talk more about your investing focus in enterprise versus consumer companies. we'll have more with mike abbott after this quick break. >> welcome back to the early edition of "bloomberg west," i'm emily chang. back with mike abbott, a partner at kaufman and buyers and i want to talk to your area of focus which is enterprise focus. you've even said these are unsexy companies but how is investing in something more unsexy makes your job difficult or actually easier? >> as an engineer, it's more fun to look at things that are solving real problems, and regardless whether it happen to to be sexy or not. a lot of the things i look at are as a team and oftentimes it's teams of engineers with maybe one designer, maybe no designers. but does this group of folks have a vision around solving a particular problem or based on some trend and he or she wants to realize that. >> what are the trends in enterprise infrastructure? >> i've been spending time around a label called big data which i cringe when i say it, having started companies in that space. but there are a lot of things going on there where companies have invested in basically really efficient ways to store data and have invested around companies called analytics and now we're seeing applications emerge. >> how do you use the big data? >> how will i use it and there are two trends that are interesting there, one is the verticalization of applications ephir invested in zp recently in the health care segment. and when we built an app, there was not much data a system like that could be built on and today we have more information and i'm looking to see how does that stack get rebuilt or reimagined with the amount of information we're collecting. >> last year enterprise companies sort of became the popular kids on the block and you had companies getting attention with strong i.p.o.'s but towards the end of the year consumer tech companies had a rebirth, twitter went public and has been doing very well. what's it going to define this year in enterprise versus consumer technology? 25% in ably spend enterprise and 75% in consumer. i'm really bullish on this year. in the enterprise side one thing that's interesting is a lot of these large public companies have large cash holdings so i wouldn't be surprised if we see a lot of m & a activity but remains to be seen where and what strategy but we saw a lot of it in 2013 as well. on the consumer side i'm interested in this recent innovation of genome sequencing. i think there's applications in the consumer or more back office digital help but now we can start sequencing entire genomes for $1,000 and generating more data than we can handle but comes the same problem how do we extract knowledge from that data. >> and there have been problems running into the f.d.a. and will it prevent innovation in that area? >> if the trend were interested in tracking and saying how do we make the right bets? >> on the consumer side what do you think of snap chat especially in the context of twitter and facebook? is it a real threat? is it a fad or here to stay, this whole idea of the impermanence of information, not everything needs to be on the internet forever. >> i think the concept of ephemeral content it here to stay and snap chat has done a phenomenal job pioneering that. and when i saw snap chat i didn't understand the service entirely and it really is a communication tool and is around having these short-lived pieces of content. it's hard to say, is this a backlash to a lot of the long-lived content we have today? but i would anticipate you see other services both in the enterprise and the consumer around this kind of ephemeral short-lived contact. not everyone wants every piece of content to live forever. >> it is harder or easier to work at a company at snap chat where the data disappears? >> it's a different technical problem and interesting scaling challenges. i would imagine as an engineer it would be fun to work there the same way it's fun to work at twitter or facebook. but i think the product aspect is different. now you're thinking of the psychology of how long should you actually let people see it? are you capturing some of those metrics back to the service? >> interesting. >> and then you start leading into some policy and other questions. >> fascinating chat, mike abbott of kleine and perkins. thanks for stopping by. we'll be back after this break. >> dell was taken private late last year so what will the p.c. maker look like as a private company? c.e.o. and co-founder michael dell sat down with david kirkpatrick earlier today in davos. >> the product hardware part is still an important part. value is certainly shifting to new areas, though. the services and software, these are areas we've invested tremendously and done 30 acquisitions in the last five years. we built $21 billion enterprise business in these new areas and certainly as a private company, we're absolutely intending to focus more on those areas. >> david, before you jump in here with some questions for mr. dell -- >> when are you going to let me? go ahead. >> the michael dell ad on television now is a home run deep to left field where you went back and you went back to where all these companies actually started. >> it's beautiful. >> i had goose bumps and was oh, my gosh. >> it was good. >> i appreciate that. >> going to the shape of the evolving p.c. and computer industry, what do you have in your hand and how significant is this kind of device to where it's all going? >> i have our new eight-inch tablet. >> hold this so the camera can see it? >> is this a shameless plug or what? >> a shameless plug. here's the keyboard if you want to do that. this is the eight-inch tablet. it's also a full p.c. so it runs microsoft office and you take it with you and you come back to the office and attach it to a full monitor and take it with you. >> it's a small p.c. is this where the whole industry is going, then? >> well, you know, it's interesting, the -- i think the death of the p.c. has been talked about quite a lot. it turns out there are still a million of these devices sold every single day. >> you kidding? >> but price competition base in india is an example. this has been hugely successful. how do you differentiate here versus the person after mr. ballmer will do or apple is doing and what's the distinction of this product versus a more high-end apple or what microsoft is doing? >> our tablet business has really taken off in 2013. it doubled from first quarter, second quarter, doubled again second to third, third to fourth, about tripled, so there's certainly product differentation, and differentation in service. and of course the real issue is how do you integrate this securely in a company's operations, make it work. it's not just about the product, it's about software and services, understanding how it works within a company to really make people more productive. >> michael dell in davos with tom keene and david kirkpatrick. we'll have more "bloomberg west" after this quick break. ♪ >> welcome back to "bloomberg west," i'm emily chang. coming up on the late edition of the show at 3:00 p.m. eastern and 6:00 p.m. eastern, how can internet outages in china affect the i.p.o. market. we'll talk about risks it could pose to companies like alibaba preparing to go pacific at 3:00 p.m. pacific and 6:00 p.m. eastern. bloomberg tv is on the markets. olivia stern is watching the markets for us in new york. how do they look? >> stocks are moving a little lower at this hour. we did get some weak manufacturing data coming out of china overnight and perhaps is spooking investors and sparking a sell-off. they're weighing towards earnings data and one stock we're watching is mcdonald's, the fast food change posted a fourth quarter profit that is a little change from last year and missing analysts by 1%. shares are little changed at the home. alix, what stood out for me is that same-store sales missed estimates despite all the new promotions and products for mcdonald's. what stands out for you? >> that's the real issue. yes, they beat out earnings and were late on revenues but the real issues were on the same store sales. u.s. continues to be a weak spot and where they get a 1/3 of their revenue. overall globally it was same store sales were down .1% and looking for positive increase and remains an issue and boils down to not having the right innovation and product, not being able to woo those new customers. >> how important are these new products? we did stories on the mighty wings and mcwraps and stories on the fact mcdonald's were coming out with pumpkin flavored lattes. how is important are new products? >> they went from making $1.5 million a store to $2.7 million a store in the last five years and that is due to those new products. they're trying to get new people in, they want to make more money and currently their core base is working men. but at the core of it, where they make most of their revenue are the same old-same olds, burgers and chicken. it's hard to find this data. we did get some proprietary data and chicken and burgers represent sales and if you look at the breakfast menu, they get a bulk of their revenue and 18% are higher margins because eggs are cheaper to buy and not a lot of labor. you look at value meals, that's a huge driver for mcdonald's. you don't make a lot of money on your value meals and $1 to $2 and if people aren't trading up to buy more expensive burgers like the angus burger which they took off their menu. >> i want to bring it back to the mighty wings because i don't eat chicken but the mighty wings people were promoting heavily and people were excited they were timing the mighty wings for the beginning of football season but doesn't seem to have panned out for mcdonald's as a winner. why not and why is it hard to come up with a new product that works? >> 20% of their wings were stuck and left over with 10 million pounds of wings. from s&p capital they say they won't throw them out but maybe promote them. mcdonald's winds up buying really big chickens because they utilize a lot of the parts and the wings happen to be very large and why they wound up charging so much money, $1 a ng which was too expensive for most people. the issue how they're struggling with finding the right product, it's not just finding what you want to eat but they have to make it profitable. it can't be very labor intensive. that's a big issue. and import costs are a big issue as well. mcdonald's isn't very flexible because they're so heavily franchised and often difficult in implementation. >> my sources tell us they're facing stiff competition for burger king. >> and wendy's and dunkin' donuts. >> for a new rib sandwich. alix steele will be back with more. "money moves" up next. . ♪ >> welcome to "money moves." i am deirdre bolton. we show you what investors and entrepreneurs are doing, as well as what is going on in hedge funds, private equity, real estate, and more. today, privacy and security, two subjects addressed in a later -- latest nsa report. we will bring you the details. on
MiamiFloridaUnited-statesNew-yorkGordon-pointCaliforniaIndiaChinaHong-kongJordanPakistanSan-francisco our partners and allies as well as our adversies? i think mr. trump has to be very disciplined in terms of what he says publicly, he is going to be in a few days' time the most powerful person in the world in terms of sitting on top of the united states government and i think he has to recognize that his words do have impact and they can have positive impact or undercutting. >> do you think he understands the threat from russia? >> i don't think he has a fuel appreciation of russian capabilities and russia's intentions and actions that they're undertaking around the world and that's the responsibility of intelligence community is. >> he doesn't appear to be backing away from his feud with john lewis. the democrats are angry, with all of the jobs i am bringing back to the nation, we have to start making things here again win. >> also today, vice president mike pence coming to the defense of his boss donald trump after congressman lewis suggested he wasn't a legitimately elected president. >> for someone of his stature and not just in the civil rights movement, but in voting rights to make a comment that he did not consider donald trump to be a legitimate president i think is deeply disappointing. >> nbc's kelly o'donnell joins me here in the studio, and safe to say this is not going anywhere fast. >> it goes on such intention emotions on both sides for republicans an conservatives. they balk at someone by saying this election did not follow through freely and fairly in what was an extraordinary and contested year. on the other side, there is hard to imagine a figure who was more beloved by democrats than john lewis and he's part of the modern-day conversation. so when you have these sorts of situations and this back and forth that we've seen the president-elect enjoy engaging in, even past a point where even allies of his say enough, it doesn't go away and so i think that's been part of it. i think president-elect's use of twitter will be fun to watch in how it shapes policy or shapes the conversation. will it change at all once he takes the oath? >> so let's hear from some of the principles and first, listen to mike pence from earlier today. here it is. >> i believe the inauguration ceremony itself and this moment in history would greatly benefit if we set aside these baseless assertions about the legitimacy of the election and we look for ways to come together to work together and the president-elect actually in a tweet late last night invited congressman lewis to work with us to bring more prosperity, better schools and more safety to our cities around the country. >> i guess there are those who would hope or perhaps suggest things will change once he's president of the united states. so that gives him five days to put that together. what are the expectations? >> i think as past is prolog, there is little that that will happen. it's instantaneously which is quite different than being president-elect and being a candidate. that may shape some of that. when you hear mike pence say that in a tweet he invited congressman lewis, that is a favorable tweet. the president saying i can use all of the help i can get. that is sort of extending a hand and many people won't see it that way. so who has the more daunting responsibility of trying to bring about healing? democrats will boycott and say they won't go to the inauguration and won't work with him? do they have a responsibility? and certainly the president-elect and his team have a responsibility to bring them together. he's going without the honeymoon that we're accustom to seeing and that's a challenge for all of the things he wants to get done. >> thank you, kelly o'donnell. thank you for making your way to the studio. we appreciate that. i am joined by msnbc contributor and bob cusack, editor in chief at the hill. hi, guys. good to see you. >> hello. >> jamie, i want to get your view with john lewis, were you expecting a different response? this is the eve of mlk day. >> i think john lewis knew what kind of response he would get from donald trump. and donald trump walked right into his trap. it's not an accident that the most rer cil rights leades of his generation who isll living is having a fight with donald trump the day before martin luther king day. this is reminiscent of the way that democrats bated trump in picking a fight with the khan family. it's reminiscent of him picking a fight with alicia machado and former beauty contestant and they got what they wanted from donald trump which was an outlandish response. >> they're not going to attend the inauguration as a result of trump's comments to congress lewis. republican senators have for trump's ongoing and combative nature. he's taking on one of the most respected colleagues and someone they have to work with, too. >> yeah. some republican senators are certainly not very friendly with donald trump and lindsay graham and ben sasse from nebraska. if you look at the list it's up to 17 democrats who will not be showing is up for inauguration and not only not showing up, touting it and putting out press releases saying they're not going to go. that's highly unusual. he's got to unite the country and put out a well, thought-out statement on martin luther king day tomorrow and look at his speech on friday, is it going to be a uniting one or is he going to be talking about the media in that speech? it's going to be, to many, a surreal day on friday, but his biggest challenge is to unite the country. his approval ratings certainly need that, as well. >> let's get to the ongoing riff that donald trump has with the intelligence community. let's talk a listen to what cia director brennan had any contacts between the trump team and the kremlin during the campaign about hacking for democrats. >> if we had that type of information we would share it with the fbi. >> that's not a denial, sir. i wouldn't confirm or deny something on that on your program as much as i respect you, chris. >> there are a lot ways he could have answered this. is there any there there? >> i think that people are by and large moving on from the issue of whether or not russia interfered with the election because like the election itself, this is largely settled. people understand that russia had involvement in hacking into the dnc. people understand that they wanted donald trump to winners have us hillary clinton whom they saw as more adversarial and beyond that this becomes more background noise into what is going to be an extremely busy period of action on capitol hill and action with the supreme court nominee and action over the affordable care act. there is going to be so much going on that i think ultimately this becomes a side issue. >> so before we get to the issue of obamacare, i want to ask you, bob, to take a listen of vice president pence said about incoming national security adviser mike flynn was on the phone with the russian ambassador to the u.s. on the day the u.s. announced sanctions with russian interference on the election. whether or not that conversation had an impact. here it is. >> it was coincidental that the had a conversation. they did not discuss anything having to do with the united states decision to expel diplomats or impose censure against russia. >> do you take the vice president at his word or vice president-elect at his word that it was simply coincidental? >> sometimes perception is politics, when things are coincidental in politics, and i do think that this relationship between russia and the united states is not one we're talking about when a new president comes in. trump said in his press conference that he thinks that the relationship could sour, and that's also not reassuring to some, as well, like how bad would it get? i do think that pence is very good at going on the shows and trump can be kind of brusque in his tweets, but pence is very smooth on television, without a doubt. >> yeah. that's true. >> let's get to you, jeremy about the obama care votes. democrats rallying across the country today. they're certainly against the repeal. they're suggesting 20 million people are at risk of losing their health insurance as this congressional action is unfolding. is that the case or does it depend on how it all unfolds? >> well, i think the people who would be at risk of losing their health care are aided by the fact that republicans have not yet been able to agree on a plan to replace obamacare yet. absent that, it would be difficult to go forward with the repeal. you have republicans talking about repealing it, but setting a later effective date. meaning the law wouldn't go away until some time in 2018, perhaps. so you know, i guess, show me the plan, alex is what i would say before i could really answer whether or not people would lose the health care coverage, but of course, there is no plan at this point. >> how many democrats, bob, see or need to fix obamacare and is there a way to negotiate their vision into some version of a national health care plan? >> that's the thing to watch. these red state democrats, a number of them who are up for reelection in 2018 in states that trump won, what are they going to do? are they going to work with republicans on a replacement? there have been tinkerings with obamacare and some bipartisan, but will this continue to be a shirts a skins me democrats versus republicans on it? as far as replacement and republicans have to decide on tax policy which are bringing in a lot of revenue to the treasury. are republicans going to get rid of those tax increases? that's what's dividing them right now. >> guys, to both of you, what are your expectations to the speech on friday? jeremy, to you first. >> from what i hear, it is going to be quite conciliatory. i think it will be in the same vein, parts of it will be as far as donald trump's remarks on election night about how he's a president for all americans. i think his speech writers are looking very carefully at what presidents of both parties said, democrats and republicans are saying at what john f. kennedy said and they're looking at what ronald reagan said at his inaugural, and i would expect this to be a speech not -- not like his press conference the other day, i'll put it that way, alex. i don't think this is going to be a combative donald trump that you're going to see. i think it's going to be a more open and welcoming one. >> do you agree, bob? >> i do. i totally agree with jeremy. i think it will be shorter than normal. i think there will be a focus on protecting the homeland and isis. i don't think he'll get into partisan battles like obamacare. i think that they want to have this uplifting and honestly, after thecampaign, the country needs an uplifting speech on friday. >> apprecie for the chat. happening now, we're giving you live pictures from warren, michigan, that's where thousands are holding a rally calling to protect obamacare and it's one of 70 happening today. danny freeman is there. danny, what are we seeing there and what do we expect to come? >> reporter: good afternoon, alex. that's right. i'm getting a bit of deja vu from the primaries, actually. as you said, there are thousands of people out here in warren, michigan, to stand in rally for the health care, for the affordable care act. and we've seen star-studded democrats take that stage, and of course, the headliner, bernie sanders will be coming at the end of the rally and that's still to come. we at nbc had a chance to speak with senator sanders and speak to him about what he expects to come out of these dozens of rallies that are happening over the country. take a look at what he said to us. >> you're going to move to the privatization of medicare. you're going to make devastating cuts in medicaid and raise prescription drug costs for citizens and what are the american people are saying don't do that. >> reporter: as you can see, the targets are out for the gop. they've been rallying as much for the affordable care act as they are to replace and repeal in their words, in their statements. we did have a chance to speak to a bunch of people attending these rallies and bear in mind many of them stood in the cold for hours and it was 28 deges out just to get a front seat for this rally. take a look at what some of them had to say us to today. >> i don't believe that we have any chance of turning around anyone's minds like mitch mcconnell, but i think he has to know along with these republicans that we'll get them out of office in two years if they don't start helping the whole of the american people and not just the 1% rich. >> health care is a critically important issue. government involved in providing any sort of really good quality health care. >> reporter: now one thing i'll add, alex, is that elizabeth warren is holding her rally in boston today. after we spoke to senator sanders, was there one thing i tried to ask him, i asked him if he had an opinion or response to what congressman john lewis said to chuck todd about donald trump and the legitimacy of his presidency and senator sanders did not want to engage in that conversation and wanted to stick to health care today. >> staying focused. thank you very much from a very chilly warren, michigan. and the media concern of the south china sea and wll ask the next potential secretary of state about whether a few islands can pull america into war with one of the most populous country on earth. hey... hold on, i can explain. you better have a good answer... switch to geico and you could save a ton of money on your car insurance. why didn't you say so in the first place? 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are these headlines exaggerating the potential ramifications or not? >> no, i don't think they're exaggerations because there have been a conflict and struggle, some not, in the south china sea for more than two decades and this administration and the one before it have tried to manage it, but china is going in really bad directions and tillerson or whoever is the next secretary of state is going to have to deal with a challenge that is going to get bigger and bigger all the time. especially the seizure of scarborough in 2012 if we'll have to maintain peace and stability in the region. >> gordon, a lot of the headlines have the word war in them. that's not an overexaggeration? >> no. that's not an exaggeration. the chinese have been very clear that they want to control 85% of the south china sea. they see it as a territorial water and it is international water according to the united states and everyone else. for more than two centuries the united states has defended freedom of navigation and china threatens it. china actually seized a portion of the philippines, as i mentioned. this is serious because at some point the international community is going to have to confront this. this is sort of like crimea and eastern ukraine. this is different, but nonetheless, the principles are the same. >> what does this look like? what is a signal that's strong enough from the u.s. to disallow china from these islands? >> it's probably going to have to be some sort of economic sanctions or whatever. it's going have to be an increased u.s. navy presence in the south china sea. china's vessels have crowded that critical body of water where the's $5.3 trillion of commerce each and every year. the u.s. navy is rarely seen. this has given the chinese the idea that they can control this. china's neighbors are increasingly concerned not only the ones in the south china sea, but also japan and india which are now taking an interest in that body of water even though they are not contiguous states. so this is becoming a region-wide interest for big nations and the united states as well as china. >> do we have any idea where donald trump stands on rex ti tillerson's positions and how far he'd be willing to take it? >> i don't know. i don't think that trump has really thought through all of the implications of this because they are as serious as the headlines suggest. i think trump is more focused in on the trade issues with china. the south china sea, though, is something that can hijack trade and the other relationships we have with china because for many countries in the region they think it's very important and they can elevate the issue and of course, china itself could do something provocative that has to have a response. >> you've got to wonder if this might cling to this because the president-elect himself is drawing ire from china after telling the wall street journal friday, everything is under negotiation including one china. the one china principle is non-negotiab non-negotiable. is there a reason to be concerned about the entire trajectory of the u.s. relationship with china under a trump precedence. >> under a trump presidency or if secretary clinton would have one, we will see a much different posture with regard to china. under trump wooe seeing this in 140 characters at a time. under president clinton it would have been an inter-agency review and we would have seen long staples, but nonetheless, american policy toward china was unsustainable given what beijing has done especially over this century. and so there was going to be a change, and i think that it's important that we recognize that these issues are critical and at some point we can no longer avoid them, we can no longer injure a deteriorating situation. >> it sounds like we you will better buckle up. gordon chan, thanks so much. >> thanks, alex. protecting civil and voting rights. we'll ask whether she believes the next congress are listening to their concerns. tech: at safelite, we know how busy your life can be. mom: oh no... tech: this mom didn't have time to worry about a cracked windshield. so she scheduled at safelite.com and with safelite's exclusive "on my way text" she knew exactly when i'd be there, so she didn't miss a single shot. i replaced her windshield giving her more time for what matters most. tech: how'd ya do? 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[dad] alright, buddy, don't forget anything! [kid] i won't, dad... [captain rod] happy tuesday morning! captain rod here. it's pretty hairy out on the interstate.traffic is literally crawling, but there is some movement on the eastside overpass. getting word of another collision. [burke] it happened. december 14th, 2015. and we covered it. talk to farmers. we know a thing or two because we've seen a thing or two. ♪ we are farmers. bum-pa-dum, bum-bum-bum-bum ♪ befi was active.gia, i was energetic. th the chronic, widespread pain drained my energy. my doctor said moving more helps ease fibromyalgia pain. he also prescribed lyrica. fibromyalgia is thought to be the result of overactive nerves. lyrica is believed to calm these nerves. for some, lyrica can significantly relieve fibromyalgia pain and improve function, so i feel better. lyrica may cause serious allergic reactions or suicidal thoughts or actions. tell your doctor right away if you have these, new or worsening depression, or unusual changes in mood or behavior. or swelling, trouble breathing, rash, hives, blisters, muscle pain with fever, tired feeling, or blurry vision. common side effects are dizziness, sleepiness, weight gain and swelling of hands, legs and feet. don't drink alcohol while taking lyrica. don't drive or use machinery until you know how lyrica affects you. those who have had a drug or alcohol problem may be more likely to misuse lyrica. with less pain, i can be more active. ask your doctor about lyrica. welcome back, everyone. i'm alex witt here at msnbc world headquarters in new york. at precisely the half hour here's what we're monitoring for you. more than 70 rallies taking place nationwide all in an effort to save the affordable care act, medicaid and planned parenthood funding and it is being led byernie sanders and members of congress. sales of books of john lewis are skyrocketing since his back and forth with donald trump. his series titled "march" have been up 500% and his memoir, woet walking in the wind" that sold out. after 146 years the greatest show on earth is calling it quits. the owner of ringling brothers and barnum and bailey's circus is closing in may and the high-operating costs and prolonged battles with animal rights groups, particularly elephants have contributed to its demise. parts of the country's midsection are getting battered with a third round of freezing rain adding to treacherous travel conditions. that was first hit with a dangerous ice storm on friday and at least six people have died from weather-related crashes. morgan radford is in kansas and you were literally freezing out there. >> reporter: you saw me shaking. >> i did, poor thing. >> reporter: it's really cold. we're in day three of this storm and as you mentioned, six people have died and two overnight in kansas and that was after their cars spun out of control on the highway, and that's why we have kansas state highway police and we have the national guard that's been on standby here and that was since that storm began because alex, it's not just that freezing rain that came down. we saw a quarter of an inch in wichita. some places across the midwest seeing an inch of ice and it hits those power lines, alex, that can create 280 pounds on those power lines, causing them as they did in some places to snap. it's not just the freezing rain that comes down and it's also the aftermath and that's what 29 million people across nine separate states are recovering from this afternoon. to give you a sense of the scale of the storm, it started in the panhandle of texas and moved all of the way to washington, d.c., and that's a very large ice storm and typically ice storms aren't quite that size. so people in kansas are saying they were expecting it to be bad which is why they were prepared. take a listen. >> i personally did not expect it to be worse because it was too warm yesterday. this is what we have. it's still wet. >> reporter: and because they say they were getting prepared we saw them stocking up here at the gas station, filling up with tanks of gas. we also saw them in the goshry stores and stockpiling their non-perishables. that's kind of how people here have prepared for an ice storm of this size and they're saying even more winter weather could be on the way especially as this storm new moves out of the kansas area and moves north and east into tomorrow. >> it's only mid-january, can i ask about the city response? i know folks are trying to prepare themselves, but what's the city response been like? >> reporter: kansas, right here in the midwest, this was the bull's-eye of the storm that i mentioned and it was sweeping more than nine states. to give you a sense, we saw people outside and saw mulple trucks salting and making sure the roads are safe so that anyone out on the weekend and starting their workweek can get off safe. rallies are happening nationwide led by senator bernie sanders and democratic members of congress. participants are calling for washington to preserve the affordable care act, medicaid and planned parenthood funding and yesterday hundreds rallied in d.c. to call for the protection of americans' civil rights under the incoming trump administration. let's listen to a moment to ohio state senator nina turner. >> we have been here before! the only difference is we've got some company. we've got our gay and lesbians sisters and brothers with us this time. we have our hispanic, asian, native-american sisters and brothers with us this time! i think that's what martin luther king said we may not have gotten here on the same ship, but we are in the same boat right now. >> joining me right now, that lady, nina turner, an msnbc political analyst. it's always good to see you. i want to get right to it, the civil rights rally yesterday. what is your message to president-elect trump and his administration. >> thanks for that, alex, and i want to thank reverend al sharpton for leading that march. sometimes you have to remind the folks that it may look bleak, but opportunity still abounds and the message to the present-elec is that he shld hold true to his campaign promises. i know a lot of people are disappointed, but he won and he won the electoral college, and he will be sworn it as our president, but he made certain promises on that campaign trail. he said he promised to protect social security and medicare. he promised to help the working poor and the working class in this country, and there are millions of people who are depending on him to do just that. he can get it done. he must resist not doing those things, and if he does not do what he promised he has to be held accountable, but i am holding out some hope that he will do that. >> nina, do you think you have to have these rallies in large part because despite his promises there's been so much campaign rhetoric out there that people have trouble distinguishing between what he says on one level and what he says on another? >> absolutely, alex, but you have to be vigilant. even if it was a presidential candidate that folks support, you have to mold people in elected office accountable to what they say on the campaign trail and that's part of the divisiveness in the 2016 election cycle. people were in the words of fanny lou haimer, sick and tired of being sick and tired, sick of politicians making campaign promises and not following through. what they found in bernie sanders is that millionaires and billionaires cannot have it all and that the poor and working class in this country can't have it all. you have to hold people accountable and alex, there's been so much negative rhetoric. people feel like their world is coming crashing to an end and forgetting in part of what i was saying yesterday is we've been here before as a country, but one thing, we are a nation of congress and when when we unite on purpose and uplift things do happen, they change and all of the great accomplishments in this country from civil rights to social justice, economic justice and we have more work to do, no doubt about it. every generation has to advance the next, but we get it done and we get it done together. so, yes, we have to continue to get out there and let folks know the world is not coming to an end. >> i certainly do applaud your passion as you go about doing this, nina. i want to turn to the rallies today in part to protect obamacare. the wheels of repealing obamacare are set in motion with the votes in congress and they began legislation to do that. do you think it's too late to save obamacare as we know it? >> it's ner too late to fight, alex and our repubcans and sisters and brothers have been on a mission to repeal it. i think they voted a little over 60 times about, i want to hear and the american people want to know where is the replacement. they want to knock off 30 million people if they include the medicaid expansion off of the healthcare roles and it doesn't make sense that you would do that. this is not a republican issue or democratic issue. people's health, that is their wealth and that is the most important thing that they have and to be that insensitive and to be the so-called party of family values and where is the value and lives of folks and many of them will celebrate, the reverend martin luther king day, alex and one of the thing hes said about health care, of all of the injustices in this country, one of the most inhumane is that we don't provide high quality healthcare, he didn't say high quality, but the fact that we don't have healthcare for all in this country. so we need to think about what the reverend dr. martin luther king jr. said and i hope that the republicans would not repeal obamacare without having a robust replacement so that millions of people in this country from all walks of life, if they don't have their health they can't work, they can't go to school and take care of their families. it's just wrong, alex. >> it doesn't matter what party you affiliate with at all. >> no. >> let's talk about what happens a few days from now, the inauguration. what kind of message do you think he needs to deliver this to build trust among those losing protection under his administration. >> that he not only hears the cries of the people both those who voted for him and those who did t, but that he is going use the power of that office to not only heal and uplift, but to change this country. he promised to put trillions of dollars worth of investment and infrastructure. god knows we need that and that would put millions of americans back to work. he promised to protect social security and medicare. so he is going to have to get over all of this, the divisiveness that went on in 2016 when he is sworn in. he will have the power and how he leverages that power is how he is ultimately going to be judged. >> all right, my friend, former ohio state senator nina turner, thanks so much. >> stand up for us, it's a hash tag. it's a video and call on congress to make donald trump do the right thing, but what difference will it make? award-winning actress rosie perez joins me next. just like the people who own them, every business is different. but every one of those businesses will need legal help as they age and grow. whether it be with customer contracts, agreements to lease a space or protecting your work. legalzoom's network of attorneys can help you, every step of the way. so you can focus on what you do and we'll handle the legal stuff that comes up alonthe way. legalzoom. legal help is here. you represent us in congress. >> you are our last line of defense. >> so here's what we ask of our elected officials. here's what we demand. to the extent that trump pursues racist. >> sexist. >> anti-immigrant. >> antisemitic. >> we demand that you vigorously oppose him. >> with the inauguration just five days away, they demand the -- rosie perez, and asked her how the initiative got started. >> liz good afternoon arvis, ang documentary, and -- [ speaking spanish ] >> i appreciated the message of the psa of asking the american people to hold their elected officials accountable really resonated with me, and so i said yes. it was as simple as that, and it was done quickly and efficiently. >> you talk about the speed with which this particular video came together. you've got a lot of celebrities and people from all different walks of life, you have sally field and jeffrey ride and yourself and a priest and businessmen. how hard was it to just get it organized and put it together? were people saying yep, we're onboard like you did? >> 75% of the participants in that video were not celebrities. >> right. >> only 25% were celebrities. >> duly noted. >> we have rabbis and imams and retired police officers and lawmakers and activists. we have american citizens in that video. 100% of us, but of those 100% only 25% of us are in the entertainment business, and that was very purposeful because we wanted to make sure that we weren't accused, as we have been, that these elite trying to tell people what to do. >> you know what? to that point, what did you think of meryl streep's speech at the golden globes? >> i thought it was brave. people say what's so brave of standing up in front of an audience that is on your side? i beg to differ. it was the golden globes which means the world was watching. >> global. >> what do you want to see happen here? i know you say you want people to get involved and get up off the couch, but how do they say, i want to get involved with something other than just talking about it? >> they can go to government websites. find out who their elected officials are, bombard them with emails, with phone calls and letters demanding that they vote appropriately and when they don't let them know you will not have our vote come primary, and that's how we do it. that's the democratic process. >> yeah. >> and i want to impress upon people that policy really mraerts. you know, i came from abject poverty. i was a part of the ward system, the child welfare system and policy has always made my life either for the better or for the worse. working -- i got a paycheck and nk account at the age of 12, why? i'm dating myself. i know i look good, alex, thank you. as you do, but during the carter administration he had a program called cita which helped subsidize a young person's paycheck, you know? it said to the employers, if you employ this child we will help pay that child's paycheck, and because of that at 12 years old for someone who used to walk to school with holes in her shoes and for someone who used to go to school hungry i had money in my pocket because i worked hard for it because the government allowed me a chance. that's policy. that's why these matter, that's why our voice matters and that's why we have to hold our elected officials accountable. >> to which i say epitomizing the american dream, rosie perez. thank you so much for being an inspiration. >> thank you very much and thank you for having me. >> what president-elect donald trump needs to say in his inauguration address to help heal the divide with democrats. my next guests have an answer. te was almost always on my mind. thinking about what to avoid, where to go... and how to deal with my uc. to me, that was normal. until i talked to my doctor. she told me that humira helps people like me get uc under control and keep it under control when certain medications haven't worked well enough. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal infections and cancers, including lymphoma, have happened; as have blood, liver, and nervous system problems, serious allergic reactions, and new or worsening heart failure. before treatment, get tested for tb. tell your doctor if you've been to areas where certain fungal infections are common, and if you've had tb, hepatitis b, are prone to infections, or have flu-like symptoms or sores. don't start humira if you have an infection. raise your expectations. ask your gastroenterologist about humira. with humira, control is possible. sgljtsds oh sglrchlts donald trump's chief of staff critical of congressman john lewis for calling the president-elect not legitimate. >> putting the united states down across the world is not something that a responsible person does. and, so, look, i think, in fact, i think president obama could step up. the administration can do a lot of good by telling folks that are on their side of the aisle, look, we may have lost the election on the democrat side, but it's time to come together. >> former vermont governor, with a welcome to both of you my friends. i am going to start with you here. is priebus right? should democrats work together for the good of the country. >> the problem is not that he's wrong because under circumstances -- he's working for a guy that started his political career that said obama wa not born in the united states. there is a rule in politics, you don't punch down. when a congressman goes after you, ignore that. and, so, i think priebus is in a tough shot. he has no idea what the dignity of the presidency is about. i would leave this one alone, if i were them. the problem is if this continues after january 20th, nobody is going to respect this guy at all. >> so leaving this one alone, suzanne, but say you are one of trump's advisors and he's going after a civil rights activist right before martin luther king day, how do you stop it and how do you respond to questions about tweeting? >> i think you're right. it was right before martin luther king weekend and i think congressman lewis was very much aware of that fact. you don't punch down. he shouldn't have taken the bait. this was clearly chum for donald trump. and he is going to keep on tweeting. the one thing his advisors have been able to do is somewhat embrace who donald trump is and try and work with that and that's what they consistenty after to do. moving forward, after january 20th, we have to see what president trump will do and how if anything he'll modify his behavior. >> how long do you think the public is going to be tolerant of this rather unsettled confrontational behavior? we also had that combative news conference. >> half of the public is very frustrated and thinks it's wrong and the other are fine with it. so donald trump will keep doing what he's doing until it does not work for him. it worked for him to get the nomination. it worked for him to get the presidency. if it starts to be a problem, he wi modify to ensure his agenda gets through. until we see it is a problem for him, he's not going to change. >> what do you think, howard? >> i think that's probably true. although i think it's already a problem. you're at 30% in the kwinpy poll, after any inauguration, that's not a good place to start. so his polling people, which i assume he has, although he never listened to him, i have to be telling him to stop this, but he does have a political instinct. i think he does understand the way the wind is blowing. and my guess is what when these numbers come home to roost for him, he will change his behavior because i think suzanne is right, he does have an again dach -- agenda. the conservative nature of his cabinet appointees worry me, but let's see what he does. you can't predict what donald trump is going to do, so let's see what happens. >> but it is a much different thing to be a candidate, even much different to be a president-elect. friday night that all changes in a heart beat. >> it does change. and donald trump will not change his behaviors until there is a reason for them to change. and i think he'll be much more aware of how his words matter. whether it's on -- right now he tweets things and people say, well, that's not policy. that's just what he's saying right now. well, his tweets will become licy and what i'm particularly concerned abou is i the foreign affairs arena is how will they will interpreted around the world. >> you guys, if you saw president obama's farewell speech, he choked up at some point. it was quite indearing to the public. do you think donald trump has that? and how important is it for a president to show he's really moved by things? >> you know, i think that matters, but, you know, i think the real -- i think people want a direction. a lot of people voted for donald trump because they wanted a change, not because they love donald trump. and i think most of the people who voted for donald trump knew very well what they were getting. but they took the chance hoping for real chance. that's what he's got to deliver. we could talk about the millionaires and billionaires in his cabinet, but if he delivers change, he'll stay. >> thank you. that's a wrap for me guys. i'm not. thanks so much for watching. up next, chuck todd in "meet the press." do it again. there you go... i can do whatever you want. except keep your eyes on the road. now would be a good time to have new car replacement. so get allstate and be better protected from mayhem, like me. it's good to be in good hands. charge from an american c this sunday that stunning charge from an american civil rights icon. >> i think the russians participated in helping this man get elected. >> my exclusive interview with congressman lewis, the national debate his comments have already inspired and reaction this morning from donald trump's incoming chief of staff, reince prieb priebus. >> growing concerns with donald trump's coziness with vladimir putin. >> shod
New-yorkUnited-statesJapanPhilippinesTexasWashingtonVermontBeijingChinaBostonMassachusettsKremlin >> from president trump, a very different tone about the country his previous lee called an enemy. >> president xi jinping wants to do the right thing. >> what a change from candidate trump who repeatedly used china as a punching bag. >> we can't continue to allow china to rate our country and that's what they're doing. >> right now are not getting along with russia at all. we may be at an all-time low in terms of relationship with russia. spirit that is not what candidate trump thought was meant to be. >> are going to have a great relationship with cutin and russia. >> joining us now from reaction, doctor sebastian, the deputy assistant to president trump. we saw donald trump devolving on some of these issues but is it that also what he promised to make deals, the art of the deal to make america great again? >> there is no one better. i really recommend people read his book. it is the art of the deal. what we have seen is eight years of divisiveness of the obama white house dividing our nation against itself and dividing us against our allies and friends. in just 84 days, president trump has replaced divisiveness with the decisiveness, whether to do with the border, whether to do with manufacturing, weathers to do with nato or whether it's to do with our enemies and isis or in this case, mechanical weapons attack last week. we have changed the geopolitical reality in the world in just a matter of weeks. >> how did they do that? tonight's a big 21,000 bombs dropped on afghanistan, has that affected the geopolitical balance or at least the way the rest of the world sees donald trump? >> absolutely because it means that people now understand just how much the president means what he says. when he says unequivocally in front of the joint session of congress at cpap, when he says i am going to obliterate isis literally, when he says i'm going to wipe the islamic state off the face of the earth, it's not empty rhetoric. if you read the memoirs of secretary gates, of secretary panetta, it's stunning. obama's own principles talk about nsc meetings that last for three to four hours with nobody taking a decision. that was the last eight years. that was the reality of the red lines. along comes president trump, that's gone. we have a threat, we promise to deal with it, and were dealing with it right now. >> eric: doctor, talk about this in moab, the big bomb they drop today. was that on isis? i understand it was on isis but was directed towards isis and with that directed towards north korea or directed towards iran? >> let's look at last week. the cruise missile attack on the airbase in syria wasn't just about sending message about weapons of mass destruction and syria. it was a message about weapons of mass instruction anywhere, and is also a message about nations that sponsor mass murdering regimes. so you're absolutely right. this president understands that diplomacy without forced behind it is nothing. it's words, it's pieces of pape paper. statecraft and leadership are when you lose use these things to reinforce one another. speak >> eric: i'm sorry to cut you off, assad has said this is all at fabrication. they made up by the u.s. government to find a reason to bomb assad. trump says were not going into syria, but if assad does use chemicals again, will we bomb syria? >> we don't give our playbook away. you're my friend, but we don't do it. that's the last eight years prayed we don't telegraph in advance to the threats out there what were going to do because that's how you lose. that's a strategic. do you think assad is going to use chemical weapons again? >> eric: i think assad is crazy and i also think kim jong-un is crazy. will donald trump they use a preemptive strike? is not preempted but what would it take to use a strike from the u.s. in korea and the watters north korea? >> again, were not going to give our playbook away but i'll tell you one thing for sure, the assad regime as a state of other nations. other nations prop this nation up and keep it alive. those sponsoring nations are sitting down right now, i guarantee you that, and they're going through a very simple calculus in their minds pretty they're asking themselves where is my redline for how long i'm going to support somebody like this who uses chemical weapons on innocent women and children? that's a geopolitics. that's statecraft and the president has sent that message. it is not just about syria. it's about those nations who have kept cereal alive. >> you mentioned these nations, when president trump decided to launch 59, cox, he decided that while president xi jinping was at dinner with him. we'll get to dinner and a second, i have to drop missiles on syria. and that he direct his nato security council to vote no contest or no vote as far as sanction syria because of that meeting with donald trump at mar-a-lago? >> you'd have to ask the communist party of china. >> eric: what you think? >> i think those things are not unrelated to each other. look at the decision with regards to coal purchases. china is not an irrational act. it's you have to understand the chinese government is not illogical. they are perhaps one of the most strategic nations out there and as a result, they know talk benefit analysis, and they know what national interest means and they understand sometimes supporting somebody to the extent at which they undermine my interest is not a good idea. >> eric: has china become a better friend of the united states since they put putin in russia? >> china understands you can't undermine and subvert america the way you could in the last eight years. there may be things we can cooperate on and there may be lines that we draw in terms of how far we can cooperate, but that's fine. they don't have to be our best buddies who come with the question is -- >> it seems that the trump administration is got a little bit tougher with russia because of our relationship getting a little bit stronger with china. >> isn't that interesting? what happened to all the stories about russia? this is when you realize just how fake the fake news is. it's about american interest rate i can assure you one thing. president trump is a patriot and a pragmatist at the same time, and that's why you're seeing the decisiveness you're seeing today. >> eric: going to leave her right there. thank you very much. now his turn to nancy, former u.s. advisor and national security advisor to president clinton. she joins us from jacksonville, florida. he listens that back and forth with doctor, first of all your thoughts, did anything jump out at you especially the relationship between putin and trump and xi jinping from china and trump? >> first, nice to see you and thanks for having me. i think sebastian's right that the president is a patriot trying to do the right thing. but this pivot on all the things that we disagree is the geopolitical world moving to donald trump. it's really donald trump of moving towards reality and away from some of the campaign rhetoric that got him elected, but is not related to facts and is frankly not realistic. though i think it's a good thing that he is pivoting. i think is a good thing that he's recognizing that some of these things were wrong. i think it's a good thing. >> eric: 's ears donald trump pivoting to reality comes on the heels of 59 tomahawk's in syria and 21,000 palm in afghanistan. >> changing his position on nato, on china, getting away from china, the knowledge obamacare, health care thing. >> eric: some people said that was a problem with president obama that he didn't do things like this. are you agreeing? >> i think the action he took on syria was exactly right. it was a measured response to a second chemical weapons attack and i think that he is broadly been supported for that, and i applaud that. it's a bigger question than just one bomb. yes, i think that with the right thing but does that mean he's got a strategy for syria? what does it mean on russia? is a still thinking that russia is run by someone who can be our friend? what is it mean in terms of trying to lead in the middle east and have an american plan? you got to have a plan for going to use military orders, absolutely agree with sebastian. diplomacy does not work if you don't back it up with military force. >> eric: the call to the uss vincent the aircraft carrier 100,000 tons of diplomacy had towards north korea. they ran. nobody's talking about them. they have to see these maneuvers and say wait a minute, were not dealing with obama anymore. >> the iran deal is working, the nuclear weapons program is halted so that seems to be working. i think the trump administration has agreed to keep it going. the tougher problems are what are you going to do with north korea? it's a very difficult thorny problem the president from the first president bush have tried to deal with. it's a crazy regime. it's a very difficult problem. i think the president's right to try to get china to be the linchpin there to move it forward. but you need diplomacy in the world and yes you need it backed by force and presidents have figured out that out and i think the president needs some strategies that go along with this. he's got to listen to his advisors and come up with how are we going to do this? >> eric: how do you do that connect you with the u.n. ambassador. in north korea coming of three generations spread the founder of north korea rhea was kim jong-un's grandfather. what would it take to change power in north korea? you have to break up the whole family structure. >> you do. i think president trump has asked for broad wide-ranging issues, options on north korea from toppling the regime to trying to push military and trying to work with china. i think i've seen in meetings where people struggle with these decisions and you end up having to take the best of really awkward options, and i think that's what president trump is rightly trying to grapple with. >> eric: is that the united korean peninsula, one korea? or is china taking over? >> it is eventually one korea that's united and democratic, but that's a long way off and it's going to require much tougher diplomacy with china. in the broader picture, look where president trump is. is pivoting towards reality, putting force and diplomacy in a good thing. his problem and i'll just put this out there is he got elected with very extreme statements that did not relate to reality and how is he going to keep this intact? >> eric: a more extreme than dropping 59 tomahawk's in syria and a 21,000-pound moab into afghanistan correct thank you so much. when we come right back, the former trump campaign advisor was surveilled by the fbi for possible ties to russia. that man right there, carter page will be here to tell his story. stay with us. >> eric: and the personal story segment tonight, as the democrats love to remind you, the fbi has confirmed is looking into possible improper links between the russian government and the trump campaign. one thing that emerged as part of the investigation, carter page. he worked as an unpaid formal foreign policy advisor for less than a year. according to the report by the washington post confirmed in part by excuses catherine herridge, last summer at secret court gave the fbi permission to spy on page, an american citizen. page previously worked as an investment baker in moscow. he joins us now. thank you for joining us. let's get this right out front. why did you go to moscow? >> i was invited to give the graduation speech at new economics school. and i spoke in that university in moscow for many, many years, most of the top universities in moscow have spoken with on many occasions. >> when we were there, where you are representing the trump administration? >> i made that absolutely clear in every state. >> eric: it'd overlap with your tenure in the campaign? >> you talk about fake narratives, that was really something that was completely -- >> eric: you go over there and make some speeches as a professor and you end up meeting some of these russian people, operatives. >> i said hello briefly in cleveland, so that was nothing. >> eric: everything over in russia was incidental? >> less than incidental. >> eric: what about the russian banker that you knew in new york? >> there was his case against a few operatives that were here, and i happen to know one of the diplomats that was based here, and that -- i deal with diplomats all the time at the u.n., et cetera. >> eric: expand on that a little bit, so you bump into them in what capacity? >> in this example, one of my business partners from asia was speaking at asian society on park avenue. i happen to say hello to him and we struck up a little dialogue and i met him once for coffee, offered him some ideas, that was about it. >> eric: what time frame was this? >> this was 2013. >> eric: let's fast forward to when the trump administration became relevant. whether any meetings with any of the russians? >> there's always for example, may have seen hello to a few people at times, certainly never any negotiations. none of that discussion. why do you think you were unmasked? wire you surveilled and wire you unmask? >> it's interesting. the big "washington post" report this week. it goes back to just creating a false narrative, and i was laughing when nancy was saying to you that the president needs to get in touch with reality. the reality which the last administration created which is such a complete disaster that they needed to kind of find some new possibilities. >> eric: did susan rice -- who do you think went to the pfizer corporation to get for permission to surveilled you? >> i have learned all the false accusations that have come out against me that i'm not going to speculate. again, i'm very encouraged by all this new information that's coming out about some of these unethical practices and potentially illegal practices. such as false evidence. director carmi said politicians lie all the time not so many words but people can like the media and there's no law against that. however, when you introduce false evidence in a court of law including the pfizer court, that is illegal. let's see what happens. >> eric: you think there was some false evidence to surveilled you? >> certainly a lot of indication. for example, he relates letter last august citing that the dossier eventually would come out in january saying that i met all these sanctioned officials, et cetera which was completely false based on a private investigator that people associated with the clinton campaign hired. >> eric: did you work with him? >> i never met him. never had the opportunity. >> eric: why do you think your name was unmasked by susan rice? >> i'm not going to jump to any conclusions. i'm very encouraged that all of the lies that have been a drag on this administration are finally coming out into the open. let's see what happens. so many people have lied against me from the clinton campaign, many of their surrogates, many of the think tanks that have supported them, center for american progress, et cetera. let's see what actually comes out but i'm not going to speculate. >> eric: we heard about mike flynn being unmasked, we heard about carter page being unmasked. are there more names to follow? >> we shall see. i deal in facts, so i'm not concerned and we can cross that bridge when we get to it. >> eric: why did susan rice get involved with this, for what reason? >> i wrote my trade installer project at the naval academy doing research on information using information as a political weapon, the executive branch and legislative branch of governmen government. this was information as a political weapon. >> eric: carter page, thank you very much. next on the run down, syria's murder dictator is now denying he used chemical weapons. that's incredible. the truth about the butcher of damascus when the factor return returns. >> eric: the impact segment tonight, a stunning denial from syrian dictator bashar al-assad. last week, we were all sickened by the appalling images of children in syria gasping for air after there was a chemical attack but now assad is claiming he could not have gassed his own people because syria has no chemical weapons. >> definitely 100%, we don't have an arsenal. were not going to use it and we have many indications if you don't have proof because no one has complete information or evidence in. but you have indication. >> eric: joining us now for reaction in washington, former state department official and from the foundation of defense of democracies. let's start with you. so bashar al-assad says not only does he not have chemical weapons, all those images we've seen that probably inspired his tomahawk missile strike, he said those were all fabricated by us. >> your skepticism is accurate. the only thing i disagree with you about is that this is stunning. this is how assad operates pretty is in denial, he is a liar, he is a war criminal. he said many opportunities to leave syria and he probably never will let go and he'll end up in a ditch like saddam hussein or like qaddafi. but the missile strikes last week were really important because they sent a signal that the u.s. is no longer going to look the other way when he engages in mass atrocities against civilians. that's important but make no mistake, it's not going to be an easy effort and just one set of missile strikes isn't going to change the dynamic completely. it sends a message, it puts military options back on the table, which is what was missing from the negotiation. we now need to get back to the negotiation table with the military option as a leverage to get syria and assad. >> eric: where have you been all these years cannot government or having arguments with you when barack obama was president who, thinking that side of the story. >> in 2013, i thought barack obama should've done missile strikes against assad in. >> eric: might have saved us a lot of time and money. >> i fully agree. >> eric: to donald trump to the right thing by sending those tomahawk missiles into syria? >> absolutely. he did a number of things. he began to reestablish strategic deterrence in the world, very important not just assad but it ran, the north koreans understand that america not only has power, but has a determination and the will to use it in its best interests at various times. also, president trump was enforcing international law. a lot of times it's hard to say what international law is. is not one of those cases. the use of chemical weapons by assad violates the chemical weapons convention which assad subscribed to. >> eric: let me play little devil's advocate here. is bombing schools and hospitals with conventional weapons as well. i'm just playing devil's advocate. there are people saying if you're going to use that redline, why not use all the red lines that are already preestablished? >> the only reason is the use of redline, certain weapons that have been banned and syria agreed would be banned, agreed they would use, claimed they had given up, this is such a clear redline that if you don't enforce it, you're really saying it's a law of the jungle which is what we seen in syria and a lot of the middle east over the recent years. no laws whatsoever, no rules whatsoever. even the u.s. enforces some rules in the world where there are no rules because there's no international community to do it. the u.s. as it were no one it. >> eric: you bring up a good point but where's the u.n. in all of this? >> i read an article this week, you can justify this missile attack based on the u.n. doctor and responsibility to protect but the u.n. went missing on this. the u.n. has not been able to pass a resolution to the security council authorizing the use of force. the reason is because russia has blocked every single security council resolution related to syria. that's why unfortunately the u.s. had to act on its own, which is controversial under international law but in my view, it is justified because no one else would take action and we as a country and all countries have a responsibility to protect innocent civilians when mass atrocities have been happening as they have been for the last six plus years resulting in 500,000 deaths. >> eric: very quickly both of you. to strikes in two weeks, who was the recipient of the message, the strongest recipient of that message? >> assad number one, russian number two. >> what do you say? >> i would say north korea and iran and most importantly but it's a message to all our adversaries, all are enemies and all her allies as well that were back in the game, that's no longer what it spent in the last eight years. >> eric: you know with been left out? russia and china. i said russia is your biggest threat. you said assad. one quick final thought, what is the u.s. relationship with russia going forward? >> it's going to be a complex one. putin has very big ambitions. putin is the kind of guy who sees you either as a panther or a poodle. either a slave or master. is it possible that hopefully he sees that trump is not something going to roll over for him, he'll be more willing to have realistic discussions. he was to have a war report, can you keep that? i don't know. but his support for iran, whose rallying cry is part of the iranian empire, he needs to change on that. i think trump is going to be tough with him. >> eric: quick point, has been three turned from poodle to panther regarding donald trump to mexico we don't know what putin is going to do. assured, he doesn't like the missile strikes and is worried about what they're going to do next and syria but he is strong. he has a lot of military forces on the ground. he has a significant impact in pushing back the moderate rebels that we support. we don't know what his next chess move is going to be. but it's essential that we get him to stand down and get assad to step down. >> eric: this countries become a paper tiger, i would say that no longer the case. thank you very much. plenty more ahead as the factor moves along this evening. a lawyer for the man dropped off the united airlines flight said his injuries are horrendous. it will tell you all about that. and later, possible nuclear activity in north korea, that's not good. we'll analyze the situation. we hope you stay tuned for those reports. >> eric: the factor follow-up segment tonight, united airlines remains under fire for forcibly removing doctor david dao from a flight from chicago to louisville on sunday. today his daughter spoke up for the first time. >> what happens my dad should've never happened to any human being regardless of the circumstance. we were horrified and shocked and second to learn what had happened to him and to see what had happened to him. we hope that in the future, nothing like this happens again. >> eric: dao's attorney said legal action against the airlines is likely. >> if you're going to eject a passenger, under no circumstances can it be done with the unreasonable force or violence. that's the law. if unreasonable force and violence is used under a set of circumstances, the common carrier united airlines in this case is responsible. >> eric: joining us now with reaction from fort lauderdale, attorney mark aguilar and from los angeles. who is also a lawyer and but i believe you say united did nothing wrong so we did find that one guy. [laughter] >> i didn't say they did nothing wrong. i am of plaintiff's attorney, i exclusively representing victims of corporate conduct where they engage in unsafe behavior and her people all the time. that's all i do. as a plaintiffs attorney coming up to look at these cases and vet them and be very careful about the cases you take. there are a lot of alarms about this case. when i first thought on the news and i started reading about it and you read the transcript of the second dialogue between doctor dao and officer, it's unusual. first question is, who referred pieces to get off the plane when an officer asks you to get off the plane came back had doctor dao agreed to get off the plane as i think most citizens would do and have the dispute as to whether the airline was mistreating him or not treating him properly or whether they owe him money or don't owe him money handled after his off the plane after the plane can leave, then we wouldn't be here. we wouldn't read about his felony. >> eric: let me bring mark in. because i've got to think he let him speak for himself, would take his case given the opportunity. >> i think she was literally a knocked over his secretary to get to the phone to take this case if this guy called his attorney. i don't know how intellectually honest he's being. the only question is how big this check is going to be? united airlines and all the airlines do legally have the right to bump passengers. they don't however have the right to bump their teeth, their noses, and their heads. >> eric: he said it's a very big distinction here. this guy ended up missing a few teeth and a broken nose. >> absolutely. first of all, i am intellectually very honest and i would not personally take this case. i have the luxury of rejecting a majority of cases. i do. i'm not in it for the money. i minute to make the world a safer place. doctor dao unfortunately has a checkered past. he has a felony conviction. >> what does that have to do with anything? >> eric: counselors. you're muddying the victim here. >> unfortunately, you have to realize if this case goes to trial, 99% of cases are resolved. united is probably going to make the common sense decision to settle the case but if doctor dao and his attorneys are unreasonable wanting millions or billions of dollars, united can take this case to trial and at trial, a jury will more likely hear of his checkered past, of the fact that he has a felony for prescribing controlled substances -- >> objection, relevance. >> eric: let me get mark in here. >> i know how judges rule. >> eric: does the defense get this in and should they? >> they absolutely should not. when you hear it, you go that looks bad. that has nothing to do with whether they used excessive force in the situation. and they did. their stock is down over $2 billion because the court of public opinion and knows that this was handled improperly. this is the only attorney who somehow wouldn't take this case. i find that to be unbelievable. >> i agree they mishandled it, but it would come into evidence. if doctor dao made a claim that he is suffering to -- >> it's irrelevant. >> if he made a claim which he would that he suffered a psychiatric injury and, the defense will hire a forensic psychologist or psychiatrist that will go through every single stressor in this doctor's life in the last 20 years. below are at a big bad check is what's going to happen. >> that's true. i think united will and should settle this case. >> seven figures. >> legal commentary of what would happen when this case went to trial and why it's not necessarily an open and shut case for doctor dao's entitled for millions of dollars. i think doctor dao should have complied, gotten off the plane and we wouldn't be here. i told my family and friends what i heard about this. >> they shouldn't have treated him like a pinata either. >> eric: we need to leave it right there. if united just went ahead and doubled or tripled or quadrupled that offer, of 800 or whatever this would've all been solved. tanks so much. directly ahead, escalating tensions over north korea's nuclear program. will the u.s. take military action? expert analysis moments away. >> eric: thanks for staying with us. i'm eric bolling standing in for bill o'reilly. satellite imagery suggest north korea may be preparing for yet another nuclear test on saturday, a major national holiday there amid the rising tensions, correspondent greg cal caught travel to the highly isolated state. >> you're looking at thousands of citizens of pyongyang coming out and very well organized orchestrated event opening up a new neighborhood here in the capital. the idea by the regime is to get the semblance of order. it could be semblance of a functioning city despite the sanctions, despite the problems over the nuclear and missile crisis, they say they are moving forward. they say they are functioning and this is what we are saying. >> actually just a few hundred yards from where we were, north korean leader kim jong-un is cutting a ribbon on that government-backed building project. officials calling it a sign of the times against the united states and the sanctions them. as an advance of saturday's anniversary of the birthdate of the founder of this country, kim il-sung. he is the grandfather of the current leader, kim jong-un. now there are new reports of possible preparations for yet another detonation of a nuclear device by north korea to mark the day and missiles in the past have been launched to mark the date as well. >> eric: joining us now for reaction as gordon chan, former policy analyst and author of nuclear showdown, north korea takes on the world. and from brunswick maine, fox news military analyst colonel david hunt who is author of the novel without mercy. how worried should we be and take us inside the mentality of kim jong-un? >> within about four years, north korea will be able to make a nuke. they've already got three missiles that can hit the lower 48 states, they just can't put a nuke on them. but a kit they can put a nuke on their noto missile and that can hit the pan and chemical weapons. we talked about chemical weapons in syria since the mid-1990s, north korea has been helping syria on chemical weapons. >> eric: talk about the mentality of actually pressing the button. >> kim jong-un has basically all end of january,eshold of risk. there's been instances of instability. there have been the assassination of his older half-brother but there's also been a demotion of the minister of state security, one of the most important officials. there was a killing of five of his subordinates, ulcers of things indicating problems of the top of the north korean military. this means that this guy has a low threshold of risk, a very different risk calculus than we think you should have. >> eric: he's got a twitchy trigger finger so to speak. what are military options? >> there actually very limited. in the demilitarized zone, 15 artillery pieces and north korea all pointing 30 miles south of 10 million populated city called seoul korea. every word game we've done, i spent six years in korea, i commanded the dmc and had company on a staff doing terrorism for the olympics. every war game it's ever been done always ends up with the nuclear option because the artillery and the preparation for 50 years and north korea are massively expensive. i don't see the last five nukes that have gone off their who have very limited options, nonconventional. and the problem is is nuclear. >> eric: general keane said even if kim jong-un on this saturday's celebration of grandfather's birth or whatever this is honored, even if he does test a missile, and that shouldn't be enough for us to strike north korea. >> i just said that. the options are massively limited. every war game we have has staggering amount of casualties. the only way you're going to get out this is with nukes. as we just heard and we know, north koreans have nukes and the ability to reach seoul korea within three to 6 minutes of launching. >> eric: i think the colonel is saying we would have to wait for a nuclear strike on seoul korea or one of our other tokyo. >> when we saw a missile that was filled and ready to go, for the nuke was on top of it, we would take that out one way or another. were not going to allow that missile into the air. there's 25 million people installed, and north korea ends of the fourth-largest military, forward deployed just 30 miles away, this is going to be a tragedy of unprecedented proportions. this is basically going to be a couple hundred thousand casualties in the first two hours. >> eric: colonel, using the 21,000 pounds of moab bomb that was dropped on afghanistan had any effect on kim jong-un? >> no. that's the biggest weapon, a nuclear weapon. he is paid attention to a lot of things but this is a crazy man and the issue, it's a dark black community. we can't say in it. so the intelligence community is very blind here. a military option is limited. i don't think we're going to wait today to get nuked. i'm telling you that's the end result of our going to war with north korea. have to use nukes to get after stuff in these mountains. very difficult target. >> eric: what do you say cannot do things at any effect on the mentality of kim jong-un? >> uses on an underground network of facilities. no country has more military facilities underground the north korea. his father spent six weeks in a bunker during the 2003 iraq war because he was so afraid of george w. bush. i think kim jong-un is going to try to stay out of public for a little while because he understands that he has a low threshold for the use of force and is actually willing to exert american power for good. >> eric: one of the things that we say were not allowed to do and i guess legally were not allowed to even talk about doing as an administration, how do you get rid of be 12? kim jong-un, i'm sorry, do you get rid of him? you quietly have some operations to take him out? >> it's the problem with killing an individual in the document is not that difficult. the issue is having someone in place that's in your favor. and we've been terrible at that in my lifetime. we can kill leaders, we have. libby is a great example. we can take him out if that's what you want to do, but what comes after him is the issue and normally, we don't have a control over that. it's a risky proposition. >> eric: what does come after kim jong-un? >> you of the chinese military moving south to sort of try to get the nuke. also the archives. the chinese don't want to secede their relationship between beijing and pyongyang. also south korea and the u.s. moving north, that's an extremely dangerous situation because were going to meet someplace north korea and i do hope that they work this stuff out, but the chinese don't want to talk to us about this. >> eric: this is a scary proposition. thank you guys both. a quick reminder, two of bill's books are currently on "the new york times" bestseller list. old school, life in the same line as number one and killing the rising sun's number three and you can get either one for free if you sign up or become a billoreilly.com premium member. also there are still tickets available to see bill, dennis miller, and jesse watters onto her. the details on billoreilly.com. up next, paying to play shenanigans and corruption on a massive scale right in the halls of congress and insiders expose when the factor comes right bac back. >> eric: and our second personal story segment tonight, and eye-opening insider's account of the massive corruption in our halls of congress. joining us now from washington, republican congressman, the author of the book trina swan, how washington corruption is worse than you think. thank you congressman. how bad is it in washington? >> it's bad. we don't get the right answer because we have so many incentives to go the wrong way, and we need to send better people to washington, d.c., to represent us. number two, we need to change the incentive structure. >> eric: give us an idea of what kind of crime, corruption, and cronyism that's going on. >> one example is that in order to be on a committee or any committee, and a ways and means appropriations, you need to dues. you need to pay dues to a republican or democratic campaign committee and those dues determine who get bond. that's corrupt. to put that kind of pressure on people to pay $450,000 to be a chair the committee is the wrong thing, since the wrong message the american people. >> eric: i'm putting together a book a little bit along the same lines of what i find is that lobbying seems to be ground zero for a lot of crime, corruption, and cronyism going on in d.c. talk to us about how profitable it is to be a lobbyist in d.c.? >> i've never been a lobbyist but i'm sure they make a lot of money. they have a lot of money to give. >> eric: you know how profitable it is to be a lobbyist in d.c. >> lobbyists make a lot of money and they been a lot of money to members of congress to their campaigns for the national republican campaign committee, and they have a lot of influence in washington, d.c. >> eric: should we be closing that money flow, that pipeline of funds from corporate and special interests right into the pockets of people like yourself? >> there's two different kinds of donations. there are ideological donations that are made based on someone being a conservative or liberal, than there are transactional donations that are made based on someone voting for a certain bill. we should absolutely close in the leakage between voting a certain way on a certain piece of legislation and receiving campaign contributions. >> eric: is a big deal what you just recommended right there. your colleagues on both sides of the aisle might not like hearing that. >> i'm sure they don't. there are some of my colleagues and the freedom caucus and other conservatives that do like to hear that because we're here to do the right thing for the american people and everyone in congress should be doing that. >> eric: you said you're part of the freedom caucus. i did notice you believe on your point of view, you are pro-health care, looking at the paul ryan bill and you are in favor of that. is that right? >> right before the bill was pulled, i visited with the speaker and told him i would be voting in favor of that piece of legislation, that's correct. >> eric: why is that sir? the freedom caucus i understood was going to focus, what about the bill do you think was going to be beneficial to the american people? >> at the president made some moves that made the bill more conservative along with the speaker. i thought it was the first step in the right direction. i think the president should acknowledge the fact that he made a great nomination for the supreme court. he has picked a great cabinet. he has issued executive orders that have been really positive. >> eric: no doubt. i'm just trying to stay on his health care issue because i'm trying to figure out how did the bill become more conservative. it didn't seem like it was becoming a more economical to the american people. >> there was a work requirement put in for medicaid, that was a real benefit and a great first step and what needs to be done. we address an issue concerning existing health benefits that would have empowered the states to make changes and drive down the cost of premiums to americans. i thought those were good things. >> eric: are we getting close to the freedom caucus to be okay with the new health care bill? >> i would say about a third of them were okay before and i think will find another third that will be in favor of it as we continue down the road. >> eric: congressman, thank you for joining us tonight. if you want to hear more from congressman, you can check out his interview on the contribute in factor podcasts that's on billoreilly.com and itunes. keeping with the congressman's theme, you can preorder my book the swamp, washington's murky pool of corruption and cronyism and how trump can train it. the details available at eric bolling.com. up next year, just a week after voting itself in century city, michigan town reverses itself one week later. we'll have that strange story in a minute. >> eric: in the back of the book segment tonight, an incredible story in lansing, michigan. last night, that same city council voted to rescind its decision to make it a sanctuary city. they voted last night, to keep it that way. absent for last night's vote after also voting to make lansing a sanctuary city. ladies, thank you for joining us. you are in favor of the vote that went down a week ago. how did that switch to let's rescind that boat? vote? >> i wish i could tell you. there were to go council members that called a special meeting. they had their reasons and everyone came to the table again. i voted to keep the sanctuary city clause in the resolution. >> and i voted to remove it. >> eric: on why it was rescinded, your thoughts? >> i see this as an unnecessary controversy that was created over a specific word for political reasons in a local election year. >> eric: what are you talking about? >> this is a mayoral election year, we have a sitting council member member who is running for mayor and what disturbs me the most is all of us, regardless of our views on political issues, we need to be concerned about our first amendment rights right now. which is our freedom of expression. why does our government in d.c. trying to dictate words that we can use in lansing, michigan? >> eric: what is the word that she is talking about? >> the word "sanctuary." >> eric: it represents a policy. it's a policy, a political law enforcement policy. >> it's a policy that depends on which communities adopt them. the word is completely undefined as a political definition. he has suspended his list of sanctuary cities -- speedo demark >> the meeting was called over the word "sanctuary" >> this is about allowing illegals to find sanctuary -- i only have a few seconds. this is how the democratic process works. you are elected by the people to speak for them and if the people overwhelmingly say no sanctuary city, guess what? no sanctuary sanctuary city. >> the voters in lansing did not overwhelmingly say that. the majority of people that spoke -- >> eric: the vote went the other way last night. >> i voted with the people of lansing. >> as did i. >> eric: the room -- >> if you are referring to the chamber of commerce, the majority of them do not live in the city. >> eric: this is the end of the show, ladies, thank you very much. i am eric bolling, in for bill o'reilly. please remember the spin stops here, because we are looking out for you. >> tucker: good evening and welcome to "tucker carlson tonight" ." forget the explosion of a single tomahawk mission demark missile today. the u.s. dropped the mother of all bombs, that is literally its name. the most powerful explosion ever, the weapons used -- there are a lot, in contrast to the previous one. watch. >> everyone knows exactly what happened. what i do is i authorize my military. we have the greatest military in the world. we have done its job as usual. we've given them total
New-yorkUnited-statesMoscowMoskvaRussiaPyongyangP-yongyang-siNorth-koreaTokyoJapanDamascusDimashq ♪ ♪ heather: good morning, live from new york city. sunshine might appear in new york city but still really cold across portions of the east coast for another day this january on monday, you're watching "fox & friends", i'm heather childers, thank you so much for joining us. steve bannon doing a complete 180. the former white house chief strategists apologizing for the first lady -- or the first family i should say for controversial comments in a tell-all book called fire and fury. griff jenkins live in washington, d.c. about how the president is firing back about questions of mental stability, good morning, griff. >> good morning, heather, happy belated birthday, it seems sloppy steve may be campaigning for a new name, backtrack bannon. questioning his fitness for office firing back in news conference from camp david. i've had to put up the fake news from the first day i announced it -- i announced i would be running as president. this as bannon walked back comments from the first family. he's not disputing the quotes and he isn't formerly apologizing for them either but issued statement explaining criticism which was aimed at paul manafort which says not don, jr. i regret about my delay regarding don, jr. has diverted the president's accomplishments in first year of presidency, my support is unwavering for the president and his agenda. donald trump, jr., is both a patriot and good man, he has been relentless in advocacy for his father and the agenda that has helped turn our country around, bannon did not address the fight against ivanka. this as many as president's allies mike pompeo rallied to his campaign calling this ridiculous. >> the president is engaged. he understands complexity and asks difficult questions at cia so that we can provide him information, statements like mr. wolff on what we think about the president is ridiculous on its face. >> the president travels to atlanta to national college football championship. heather: i like your name for him, backtrack bannon. steve hilton, meantime host of next revolution elites can call president trump all they want but have voters to choose him to call him their president. >> here in america the establishment on a new effort to overturn the 2016 presidential vote. they are saying president trump is mentally unfit and must be removed using 25th amendment which is overnight replaced russia as number one topic of conversation at elite dinner parties. according to establishment proves the president is crazy, but the real world doesn't matter to elites, for them it's all about style and tone, not substance and results, donald trump offends the elites like a piece of art that's not to their taste. the close factories, the boarded up shops, in 2016 working americans put someone in the oval who did see all of that and whatever his mental state, he's achieved more for working americans in one year than predecessors did in 8 or 16, frankly. heather: another news we are following you, u.s. joining search for missing sailers off the coast of shanghai. look at that. 30 iranians were on board carrying millions of barrels of oil. all sailers rescued. the crash called an accident. ambassador to the united states nikki haley standing firm to disarm north korea's growing nuclear program despite the president being cautiously optimistic about potential negotiations with the rogue regime. >> there is no turnaround, what he has said, yes, there could be a time where we talk to north korea but a lot of things have to happen before that actually takes place, they have to stop testing, they have to be willing to talk about banning nuclear weapons, those things have to happen. but then asking for money and, quote, cheating their way through. delegations from north and south korea plan to hold talks, first time in two years, we will have much more on this story coming up. stay with us on that. >> but right now president trump heading to nashville today as immigration reform takes center stage at budget talks this week. todd pirro live with negotiations, where they stand. >> in a few hours the president will be speaking in american farm bureau convention in nashville, first time the sitting president has addressed the group in 25 years all this while host of issues top his agenda, number one on the list for now, dka -- daca, with potentially government shutdown, main obstacle to government spending bill. president trump has stressed that any plan on dreamers won't happen without a wall and while democrats reject that, they appear split over whether to force a government shutdown to get their way. >> we want the wall, we want to get rid of chain migration, very important and we want to get rid of the lottery system. in addition to that we want money for funding, we want additional border security. we all want daca to happen but we also want great security for the country. >> government shutdown would be a disaster for the country, so what we have got to do it seems to me is to pass the dreamer's legislation which protects and provides legal status to these young people, later on we have to work for a comprehensive immigration reform. that's what the american people want. the american people, in fact, do not want to spend billions of dollars on a wall -- >> while the trump administration has proposed spending $18 billion over ten years to extend the border wall with méxico calling for 316-miles of additional barriers by the year 2027, heather. >> additional 15 billion for security as well. thank you so much, todd. hollywood's biggest stars come together for golden globes in solidarity against sexual harassment, some taking shot as@white house, not entirely unexpected there. carley shimkus with fox news 24/7, siriusxm 115 here with the moments that everyone will be talking about this morning. so what did you think? you have to tell me what happened? i had to turn it off, i will be truthful here. carley: big niect for actors and actresses, seth myers didn't waste no time bringing sexual harassments rocking hollywood. >> marijuana is finally allowed and sexual harassment is finally isn't. [cheers and applause] >> it's going to be a good year. carley: calling out harvey weinstein and kevin spacey. harvey weinstein isn't here tonight because, well, i've heard rumors that he's crazy and difficult to work with. don't worry, he will be back in 20 years when he becomes the first person ever booed, they are going to do another season with house of cards, is christopher plummer available for that too? i hope he can do a southern accent because kevin spacey sure couldn't. carley: celebrities joining the conversation, many dressing in black, men to declare times up on a culture of silence. oprah winfrey won the life-time achievement award using her speech about women fighting to be heard. >> at this moment, there's some little girls watching as i become the first black woman to be given the same award. i want all the girls watching here now to know that a new day is on the horizon. [cheers and applause] >> carley: calling for her to run for president, nbc even joining the 2020 push on twitter tweeting, nothing but respect for our future president. that's for what the show was really about, the awards, of course, big winner for the night, hbo little lies, nicole kidman winning best actress for her role in the show, best actress to elizabeth moss. big screen three billboards outside winning multiple honors including best motion picture for a drama. so, of course, awards were handed out but overall mood of the night was somber given the ongoing conversation. heather: political as well. carley: not as political as people expected. a majority of sexual harassment issue. president trump jokes to be expected. heather: too late for me. that's why we need you. carley: i need a lot of coffee this morning. heather: appreciate it. airport finally opening terminal 4 after water break forcing evacuation and hundreds of flights already behind schedule from bomb cyclone winter storm, crews cleaning up the flooding that stranded thousands of flyers adding to the travel backup nightmare. port authority officers had to break up a crowd of angry passengers after virgin atlantic flight was canceled and if that wasn't enough, wings wings fromo international planes collided on the tarmac, lots of troubles flying. nfl players teaming up. new orleans beating my carolina panthers, but the lead now looking into whether the panthers violated the new concussion quarterback. newton took a big hit in fourth quarter and then getting checked on sidelines before returning, i was surprised that he returned. newton say that is the issue was with his eye and not his head and then there was the question rounding wall we won't get into. the jacksonville the jaguars holding bills for just field goal for 10-3 victory. first playoff win in decade. match-ups on saturday, falcons up against the eagles, sunday the jaguars and the steelers face off followed by the saints and the vikings. football. will the time is now 12 minutes after the top of the hour and the mainstream media quick to pounce on claims about the president's mental health. >> it raises questions about his mental capacity, ability to process information, his impulse control. >> if this book is to be believed it's frightening for the american people. heather: does this prove liberals don't care about the proof. blizzard of snowflakes in the stance, antifa to derail tonight's trip to college game. speaking of snowflakes disney under fire for the sassy kid shirt, wrong message to young girls? stick around for that. ♪ ♪ >> stable genius, like richard nixon, i'm not a crook. raises serious questions about mental capacity, ability to process information, his impulse control. >> he has put the question of competency by responding in way he has. >> it is quite frightening for the american people. heather: left media has gone from crying collusion to accusing president trump of being mentally unfit for office and the dramatic messaging is part of the fallout from the new book fire and fury, so when is enough enough? joining me right now radio talk show tammy bruce, thank you so much for joining us this morning. >> sure. heather: first of all, your reaction from what we just heard from members of the media. >> it's ironic they are speaking of the president's mental health and based on own hysteria over what they can't believe and don't want to deal with. our republic is based on ability to have dialogue, to have debate, to have even fights and all of that. politics is fight for power. this kind of accusation is meant to stop the conversation. it is like calling someone a racist or sexist or homophobe but now goes down to personal condemnation about someone's mental fitness. they also think that there could be a good avenue for this to use this when it comes to impeachment. like everything the democrats have done over the last generation, it's a bad idea and it will fail and the american people i don't think like it very much. heather: at this point glabbing anything to see what sticks. president trump responded to some of this and he was talking about, he said, that he is, quote, very stable, very stable genius who two greatest assets have been mental stability and being like really smart. >> this is what is always miss bid the left. they have no sense of humor. this is why comedians can't go on campuses these days. ridicule involves comedy. with normal person you see that, you smile, you know the president is being funny, he has interestingly dry sense of humor and he's trolling everyone on the left. so i love that response, but the other concern is too, when you say someone -- if someone is mentally ill, mental illness is nothing to be ashamed of and on the other hand, they are using to say it makes you dangerous and someone shouldn't be around anybody who -- heather: and make fun of him. >> and make fun of him. this is what the left does, it reveals actual nature. this will backfire and i think the president -- heather: the book itself has been discredited. >> well, yes, my column at foxnews.com deals with this. michael wolff is not denying, he has a history of having difficult relationship with the truth where you don't have scenes that are conveyed to the reader but scenes that are made up. so this is -- it's like the old fake but true from the left. heather: right. >> but you can't have that, this is a serious business and a bit of a panic, if you will, because of the president's excellent first year and the fact that this year is going to be good as well. heather: right, amazing what's become of journalism when this book is admittedly gossip even by the author himself is being used as platform on all of these mainstream media shows. >> he doesn't even know what's true or what isn't. it's about journalism, that the american people deserve better and the fact is is thank goodness that the president is the president and can get passed through all this and get things done. heather: the time is 20 minutes after the top of the hour. did cnn try to silence white house adviser. >> no. i think i've wasted enough of my viewers' time. thank you. heather: more from the fiery exchange and how the president is reacting this morning. heather: welcome back to "fox & friends first", what if donald trump never ran for president? well, outgoing new jersey governor chris christie think that is he would be occupying 1600 pennsylvania avenue instead telling ny.com in interview, quote, it's frustrate to go think to yourself, wow, if this guy were not in the race we would win this thing. christy says during the campaign that he met many people that told him they liked him but president trump had their vote, what do you think about that? new york city mayor de blasio is hitting the road, he will be traveling across america in support of progressive causes during next four years in office but deny that is this is preparation for a presidential run. according to new york post de blasio has traveled outside the u.s., udz the u.s. at least 11 times since taking office in 2014 and traveled outside the city at least 53 times but that doesn't include trips to al beeny and washington, d.c. brian ross heading back to nbc but with a different job following botched report about president trump and michael flynn. >> testify that president trump as candidate donald trump ordered him to make contact with the russians, which contradicts what donald trump has made at this point. >> starting a new gig, lincoln square productions, believed that he will hold same title as chief investigative correspondent but will focus on, quote, long-term projects. follows return no-pay suspension. and excitement for president trump's fake news award, so off the charts that we have to wait another week to find out who won >> it's all fake news, it's phoney stuff. fake news. [laughter] >> fake news. heather: president trump announcing the delay on twitter writing the fake news awards, those going to most corrupt and biased of the mainstream media will be presented to the losers on wednesday january 17th rather than this coming monday, the importance of these awards is far greater than anyone could have anticipated. so you have to wait till next monday. well, the time now is about 26 minutes after the top of the hour and daca for the wall, democrats using dreamers as bargaining chip but is that really their best option? our political panel on deck to debate that up next. >> i was so shocked to hear that -- that e doesn't believe in paying their female cohosts the same as their male -- heather: debra slams e news on their own show, the golden globe moment setting social media on fire. heather: 4:30 in the morning on the east coast. you're watching "fox & friends first". steve bannon doing a complete 180, now apologizing to the first family for comments on the tell-all book fire and fury where he called donald donald t. meeting with treasonous. and my support is also unwavering for the president and his agenda. bannon claims that his comentsz were aimed at paul manafort who is facing experience against the united states charges unrelated to the campaign. and then this happened, white house senior policy adviser steven miller defending the president against comments made in fire and fury, he got into a heated exchange with tapper, listen. >> changed the course of politics. >> i'm happy that you said that -- >> jake, no, no, you could be con descending. >> i'm not -- >> you're not going to give three minutes for the american people. [inaudible] >> one viewer that you care about and you're -- >> no. heather: a report that miller was escorted by cnn security and turns out the president was watching, jake tapper at cnn got destroyed by steven miller. watch the hatred and unfairness of the cnn. heather: president trump will be met with more than just sports fans as he heads to college football championship game, naac to protest with signs and bring white towels to create wave while the president is in packed stadium. trump supporters mocked opposition calling snowflakes but when we come together we create a mighty storm. we will see if that happens. let's talk about this, also happying this week, president trump wants to help dreamers only if democrats agree to help keep border safe. >> we want the wall. we want great security for our country. >> we believe there should be border security, real border security and help for the dreamers. >> what they want to do is take 800,000 dreamers and throw them, democrats have to hold the line. heather: what will it take to bring democrats to the table to negotiate daca? here now to weigh in former congresswoman hayworth and editor of cafe, james. i will start with you, what's the difference with many of these democrats who agreed to some of what's happening when it was the obama administration? what's the difference now, why are they not willing to negotiate? >> two things here, the first is that, i think, democrats want president trump to stick to promises during campaign which american people weren't going to pay a dime for the wall. heather: which he did say that méxico will still pay for it. >> the question is are they going to reimburse or payment plan, we are taking his word for it that this money is going to come and i think the american people would like to see the money first. that's thing one, the second thing is that's 18 billion-dollars for completed project. 18 billion-dollar few down payment for a project that's estimated to cost $70 billion and $150 million a year to maintain, what we are talking about here is holding president trump accountable and making sure that the american people don't have to pay that money when they were promised they wouldn't have to. heather: in terms of combining daca with border security and immigration reform? >> well, it's crucial. clearly the president is -- heather: he wants -- >> supported by the american public. this is a great opportunity for him to link the crucial as president clinton we said, we are a nation of immigrants but we are a nation of laws, what is crucial that we have border security and there's also broad american public support for the kind of security that a wall is crucial part of and, indeed, you know, the president has been very resourceful about getting foreign colleagues, nations to cooperate with us financially in way that is others have not. so i'm confident when the president says he will have contributions from méxico, they'll be there. heather: you were talking about 70 billion-dollar, 18 billion and additional 15 billion for added security measures, more money going to border patrol agents, that type of thing, that's what democrats agreed to before but the problem is combining with daca, is that the issue? >> no, that's not the issue. a couple of things, first, when we talk about the support of the american people, only about 39% fox news poll, 39% of the american public want to build a wall along the southern border which involves seizing land from u.s. land holders right now private land holders and u.s. states hold two-thirds of the land of the border. heather: overwhelming people do agree that something needs to be done about immigration, so democrats and republicans. >> well, donald trump made a deal with chuck schumer and nancy pelosi in september and excluded a wall and now turned around and said, actually, that was a bad deal, i want to make this deal instead. so, you know, the president may get golf course but you don't get do-over on a deal like this >> clearly, an element is protecting our borders. it will be combined with technology, it will be combined with all sorts of other measures but it is a perfectly rational thing that we have physical barriers as well. heather: also chain migration and visa lottery programs. >> these are separate issues, and it's important to know that the dreamers that are covered by daca, 83% of americans think that they should have a path to citizenship, fox news poll, and these are folks who serve in military, who work in businesses. heather: the president does not disagree with you. >> easy fix then, so if funding, set aside a border wall to put that to the side, you can get this done tomorrow, we can get it done today. health heat not really easy fix, though, they've had since october to get something done with march deadline. march deadline coming up. >> exactly. the march deadline is coming up. heather: that has nothing to do with p agreement. >> they did come to agreement initially and now he changed the terms. you set wall aside and you say that we will d the border fundit we talked about in september and make sure that the dreamers can stay which the american people want in part because they're part of our community and because kicking them out -- heather: nan, final word. >> he always promised that we will have a border wall. president obama himself when he was a senator supported a wall. so this is part of what the democratic party is also promised to the american people and it's incumbent upon them to cooperate with the president with the senate majority to get this done. heather: no matter who the president is. we will see if they come to agreement, right? >> i don't think that's the issue. i think that, you know, we are talking about donald trump keeping his promise and not sticking the american people with 18 billion-dollar bill for a wall they don't want. heather: all right, which he does say méxico will pay for. thank you so much for joining us this morning. appreciate it. the time now 20 minutes until the top of the hour and chant death to america in streets now iran is making sure it lasts for generations, brand-new lesson plan in schools aimed at avoiding a cultural invasion. a new weapon in the fight against addiction in america, how the postal service is stepping into to stop illegal drugs from crossing our borders. >> oprah, you will never be president. now we just wait and see. heather: it started out as a joke but could oprah be making a run for the white house in 2020? carley shimkus has the brand-new buzz from the golden globes. us. we push back. we even push each other. to challenge conventional thinking. find smarter solutions. that's what makes us one of the leaders in precision cancer treatment. forging ahead with technology that wasn't available to cancer patients just a short time ago. like advanced genomic testing. a diagnostic tool that lets us see cancer at the molecular level. then helps us find different ways to target it. and immunotherapy, a treatment that actually makes your immune system smarter. trains it to attack the cancer in your body. this is what we live for. giving our patients compassionate care by offering them more precise and less invasive treatment options than before. that's what makes us cancer treatment centers of america. we're not just fighting cancer anymore. we're outsmarting it. the evolution of cancer care is here. heather: welcome back, hollywood getting political at the golden globes and many now asking oprah 2020. >> i told some jokes about our current president at the white house correspondence dinner jokes about how he was unqualified to be president and somebody said that night convinced him to run. if that's true, i just want to say oprah you will never be president and hanks, where is hanks, you will never be vice president. now we just wait and see. heather: social media lighting up, carley shimkus with fox news 24/7, siriusxm 115 with all of the reaction. welcome back. carley: thank you, her name is still trending on twitter this morning. so many talking about oprah winfrey, could there be another celebrity in the white house in 2020, that's a big question. some people on social media say no way, never not happening, like jane who says, there are millions and millions of good people who are completely unqualified to be the leader to have free world, oprah is one of them. jill tweets just stop amazing speech, love her but let's not push celebrities to be governing. okay. celebrity in the white house right now. scores of other people say that oprah should run for president in 2020 so we will have to wait and see if enough people say to her, maybe she'll run for office, who knows. heather: remember the whole rumor about him running? carley: he is strongly considering it. heather: could be interesting in 2020. carley: oprah versus the rock. heather: involved e news and she wasn't shy about letting them know about that. carley: kat left the network, debra supported kat sadlel live on e news. i was shocked that e doesn't believe in paying their -- their female cohosts the same as their male cohosts, i miss kat sadler and we stand with her. carley: she was talking to e news when she said that. linda said wrong time, wrong place, very tacky. a another woman says never the wrong time to encourage the right thing. heather: thank you very much, carley, appreciate it as always. the time now 15 minutes until the top of the hour and president trump he says he's willing to come to the table as north and south korea prepare for historic diplomatic talks, why our next guest say that is military force could still be an option if we truly want a nuke-free north korea. underfilling your lattes just to save money, i suspected this. the grande ruling just revealed. ♪ running a small business is demanding. and that's why small business owners need more. like internet that's up to the challenge. the gig-speed network from comcast business gives you more. with speeds up to 20 times faster than the average. that means powering more devices, more video conferencing, and more downloads in seconds, not minutes. get fast internet and add phone and tv for only $34.90 more per month. comcast is building america's largest gig-speed network to give small businesses more. call 1-800-501-6000 today. heather: welcome back, fox business alert for you, be aware before you get mind the wheel, exploding takata air bags in millions of vehicles. tracee carrasco here with what we all need to know. >> really large recall, 3.3 million air bags that are being recalled because they're faulty. now, this has been going on for years and specifically we are talking about the 2009, 10, and 13 vehicles, toyota, honda, gm, ford, big list of these. now the specific model will be released sometime later once the automakers get all the information together. heather: let's move onto u.s. post office doing something very important. joining the fight to stop opioid crisis, how? >> they have been working with federal agencies, they have been working working with local and state law enforcement to try and intercept some of these dairnlts opioids specifically fetenyl. 880% in terms of those domestic seizures related to opioids. heather: this is something i suspected for a long time. starbucks underfilling lattes. >> this is a lawsuit and has been dismissed. a lot of people were complaining and what you suspected that they were not filling lattes all the way to the top and the foam was taking up too much space, there's not enough evidence here so we are tossing out the lawsuit. heather: only half filled. thank you so much, tracee, appreciate it. switching gears completely now. let's talk about the tensions escalating with north korea, u.s. ambassador to the un nikki haley say that is president trump is ready to talk when the rogue regime is ready to draw down. >> there is no turnaround, what he has basically said, yes, there could be a time when we talk to north korea but a lot of things have to happen before that takes place, they have to stop testing and banning nuclear weapons, those things have to happen. heather: as north and south korea are set to hold talks in over two years, what will it take to bring the u.s. and north korea to the table? here to weigh in author of nuclear show north korea takes over the world gordon chan, thank you so much for joining us. always a pleasure talking about this. >> thank you, heather. heather: on saturday at camp david, president trump said he's open to talks with kim jong un but he says that -- this is a quote, firm stance, also another quote that he's not messing around. what do you think about the possibility of bringing the two sides together? >> well u you know, the united states is always willing to talk as long as the north koreans have said that they nuclearize, give up arsenal, this is long-standing american policy. it goes back to the bush administration and the six-party talks and so i don't think that the north koreans are there yet. the president has a strong program of cutting off the flow of money to north korea so that north korea is in a position where it realizes it has no choice but to disarm. we can get there and we can get there without the use of force but it's going to take a little while longer for sanction's program to have effect. heather: that's our stance, before any talks with begin with us involved that north korea has to agree to denuclearize, but what about south korea, they don't agree with that, correct? >> well, south korea normally agrees with us but south korea's president moon jae-in is progrowth north korea and has nationalist point of view and if it were up to him he would throw hands of kim jong un but president obama and president trump preventing what he wants. very good diplomacy over the last year that we have been able to stop south south korea from g the other korea. heather: in terms of china and where they stand with historic negotiations or talks set to begin between south korea and north korea? >> well, beijing is very much in favor of any type of dialogue and so in the last couple of days we have seen global times and other chinese media outlets speak very favorably about these talks that will occur on tuesday between the two koreas. heather: i want to ask you this and i'm kind of throwing this at you because we weren't prepare toddies cousin it, you and i have discussed the north korean soldiers that have been defecting, have you seen the latest north korean soldiers that had antibodies of anthrax in his body, what are your thoughts on that? >> obviously the north korean military thinks that their soldiers are going to be fighting in an environment where there is anthrax and that's indication that they plan to use it because we don't plan to use it and the other thing is that american soldiers who were assigned in peninsula, 28500 of them have been vaccinated for anthrax, so there's a real serious deficiency and south koreans need to be prepared to fight in an environment where there has been anthrax and smallpox. heather: absolutely specially since olympicses are coming up. thanks, time now six minutes until the top of the hour and we will be right back. stay withe us. - ah, ah! (woman screaming) remember to water the tomatoes when you're done. - [narrator] sometimes hearing isn't easy. - lick a carp. looking sharp. - [narrator] but now there's a simple way to enhance it because now there's eargo plus. the virtually invisible hearing aide with amazing sound quality. designed with patented flexi fibers so they're suspended completely inside the ear canal. and so small that they're virtually invisible. just pop them in and tap each ear to find the right setting for you. a single nighttime charge will last you an entire day. - sauerkraut the slum lord. watch out for the skateboard. - ah! - [narrator] don't wait. call or go online now for a free sample pair to sample to experience the incredible comfort and invisibility of eargo plus for yourself. even when nothing else is. keep her receipts tidy,t brand vo: snap and sort your expenses with quickbooks and find, on average, $4,340 in tax savings. quickbooks. backing you. heather: you're watching "fox & friends first". it is monday morning, brand-new week. thank you so much for joining us. we certainly appreciate it as always. we have this to tell you about. professor coming under fire claiming that president trump may foresee extinction of the entire human race. yeah, dr. brandy lee, psychiatrist at the ivy league school, briefed lawmakers on psychological state and according to lee, public health emergency that needs to be responded to as quickly as possible. well, thousands of protestors flood iranian cities, regime is banning teaching english in elementary schools, officials say that learn to go language too early would trigger western cultural invasion. this comes as iran's government, the number one state sponsor of terror, by the way, cracks down on demonstrators. at least 22 people have died. finally, disney under fire for a cinderella inspired t-shirt, mom in london posting a picture of the shirt from the disney store saying it sends a negative message to young girls. the children's shirt reads shoes speak louder than words. the london mom said that disney responded to her on facebook and says it is investigating her complaint. what do you think about that? that wraps it up for 4:00 a.m. hour of "fox & friends first", "fox & friends first" continues right now. i will see you tomorrow. bye. ♪ >> serious questions about his mental capacity, ability to process information. >> i'm with him almost every day. we talk about some of the most serious matters facing america and the world, complex issues. >> mainstream media is going mental over president trump's fitness for office. the administration now firing back in the only way it knows how, by pushing the agenda to make america great again. >> good evening, ladies and remaining gentlemen, it's 2018, marijuana is finally allowed and sexual harassment finally isn't. rob: all right the golden globes getting into the issues and gett
New-yorkUnited-statesShanghaiChinaIranWashingtonBeijingWhitehouseDistrict-of-columbiaNorth-koreaRussiaSouth-korea tremendous success. it will be tremendously successful. it's my honor, and we will have a terrific relationship, i have no doubt. >> the old prejudice and practices... >> laura: for analysis, we have an all-star team in europe with gordon chan, author of the influential 2006 book. th me here in washington, mike pillsbury, director of the center of chinese strategy at the hudson institute. and a north korea expert and director of defense studies at the center for the national interest. and a fox news national security and foreign affairs analyst. gentlemen, we have a lot to get through. i had to stop myself tonight and i had to come alight, pinch myself. is this actually happening? we don't know what will ultimately transpire here but go back six months ago to last fal fall, you know, i was reading something you said, harry, that trump's language about rocket man. you are not a big fan of the blunt talk. that's what a level far. it was kind of fighting, rocket man. what he getting at? now six months later, eight months later, we are at this point where these two men are sitting down across the table. now they have their closest advisors with them. if it's true, again, if, if, if, old practices and old prejudices, you saw the script translated under kim jong un, if that'seally where we are, that could be the beginning of something really great for not just the united states, the korean peninsula, but for the world. >> i am hopeful but we have to be honest. this is step one of a 1,000 step journey. maybe 10,000 steps. where the united states and north korea have come from is remarkable. last year we were talking about nuclear war. koreans aren't throwing rockets across japan. they are not firing missiles potentially near guam. >> laura: they are not doing it because they felt like notdo. they have been doing they are t doing it because of donald trum donald trump. it is disgusting what we have seen from other networks tonight. it's because he had vision, much like ronald reagan had vision, that there's something possible, positively can do. it's going to take a lot of work but it's the art of the possible. he disrupted the old order and the old dinosaurs are freaking out. >> he is willing to take risks. a lot of other presidents and others wouldn't do that. that's why the american people voted for him. >> laura: mike pillsbury, the status quo was acceptable for decades with a few intermittent visits. madeleine albright with the hat. she came down again playing with a hat. she arrived at pyongyang. it was going to be exciting but it amounted to nothing. what's your take and we've seen so far tonight? >> it's breathtaking. it's a bit of a cliffhanger. we don't know what'soing to have a press conference at 4:00 a.m. our time. i'm going to stay apart. this could be the president's reelection now in the bag. from my point of view, from what i know, this is a very sophisticated strategy that's been worked out for almost 18 months now. mainstream media networks you referred to are trying to say it's a silly mistake or how did this happen. what we are seeing in these pictures is somebody coerced with military threats, exercises, massive sanctions, to come to singapore. it was our idea he come to singapore, not his idea. you are saying president trump be gracious to somebody he knows he has to keep bringing along for the fold dismantlement program. this kind of start, i think it's fantastic. d h gone much better,ow it given the enormity of the task ahead. >> absolutely. the pictures we saw, the footage here that the whole world is seeing. it's unthinkable both sides have been building, traveling to pyongyang, washington, d.c., without having a plan. now if they are trying to do is how to engage the world about it. i am very confident that what they have agreed on is going to be announced. of course you were mentioning the criticism. the criticism is because mainstream media, which i call opposition media. >> you rh. >> they didn't understand what was happening inside north korea and how our administration seize the moment. as he said, this is rational thinking. >> laura: this has been going on for months. let's go to chief white house correspondent, john roberts, live on the scene in singapore. you've been watching this unfold. what are you hearing? >> we been watching this not just today but over the last few weeks as well. things seem to be going well. the body language is good off the top. again, talking to white house officials added the meaning, the one-on-one, the first get to know you, let's shake hands and sit down and talk about where we are, where we've been and where we might be headed is the most important aspect of today. discussions going on right now with the expanded bilateral meeting that include secretary of state mike pompeo, chief of staff john kelly and john bolton who we know kim jong un isn't particularly fond of. focusing on issues of how they get moving with the process going forward. it is still an open question. it's about giving up nuclear weapons. the formula for north korea has been let's see if we can goad the united states into giving us some economic incentives. let's see if we can goad them giving us energy, other things. does kim jong un want to do that in exchange for completely denuclearized in denuclearized in, or is he trying to get a deal where he get something from the united states in exchange for a little piece of the nuclear program. the president has said he's not going to freeze in place the nuclear program. that's what's happened before negotiations between the united states north korea. the president said it's got to be rolled back and they have gone so far as to say it has to be complete. it has to be irreversible. and it has to be verifiable. those are three really, really big challenges when it comes to north korea. i don't even know if the president will be able to get a full read today on exactly what kim's intentions are but at the very least we have this historic moment where an american president is sitting down with the north korean leader for the first time. they do seem to be on the same page with some issues. mike pompeo has set on a couple occasions that in the two times he's met with kim jong un, he's been given personal insurances s he wants to denuclearized. we will see whether or not the and whether it is a stodgylasts enough and strong enough commitment that he will do the difficult work. to rollback and eliminate north korea's nuclear program. he has always seen this as the one way to keep his regime in place. the one way for his regime to survive. now president trump is offering him an alternative. we will find out if he takes it. >> laura: it is important for the u.s. to open a dialogue with north korea even if no deal instructed let's get some context on sites major developmenmeone who was covered so much like these before. "fox news sunday" anchor chris wallace who is also in singapore. i don't know if you can hear john roberts there but she is saying the idea that we are going to see kim jong in come out and say okay, we are going to denuclearized. like it's all going to be great, that's kind of pipedream but he's never dealt with some of my prtrump before. this is a new ball game, new president with a new set of priorities. a different way forward which i think has rattled the old order. i think they are rattled by him. they don't know what's going to happen next. they are unsettled by it. >> listen, i think the optimism and the caution are both warranted in this case. good evening to you, where it's good morning here. i'm the one hand, it's almost surreal to see these two men who just months ago were lobbing verbal icbms at each other. little rocket man, standing ther, shaking hands, meeting, a certain level of courtesy, diplomatic approach to each other. it's stunning. you are quite right, it's a dramatic change of the order that we've seen, the diplomatic order we have seen over the last 50 years. that is not to be minimized in any way. it's a major accomplishment. on the other hand, i think it's well to keep in mind that kim jong un has given up nothing at this point. he has not given up a single nuclear bomb. he's not given up a single icbm, not any of his nuclear infrastructure. yes, kind words. yes they are meeting and talking about process but he hasn't given up anything. we have to rember this is a country, north korea, that is made deals before, obviously with different presidents but has backed off on all of them annege on all of them. it's easy now looking back on the ragan-gorbachevummit and saying it change the world and ended the soviet union brought t that was not clear after the first summit and especially the second summit which seemed to end in failure. this is an encouraging start and i agree, very positive in the sense that months ago we were talking about a hair trigger towards a nuclear confrontation. at this point, there's been no actions taken by north korea in terms of denuclearizing. as they used to say during the reagan years, the devil is in the details. >> laura: ben rhodes earlier tonight on another network, msnbc, he was very concerned about a lack of, i guess, a piece of paper and pencils and pens. let's listen. let's watch. >> right now the only person who will know what is discussed is donald trump. will he tell his own government what's been discussed? will it be accurate? will he try to make himself look better? >> donald trump, kim jong un, probably not the two most trustworthy people in the world. they are the only ones who know what was discussed besides the interpreters. that's the whole reason why you always have somebody. >> i have bennett assuming the interpreters had a dual role, . >> laura: one guy is torturing people and the other guy, the americans, they are the same and they're going to spin it to their best reputational advance advances. >> i think it was ronald reagan who said that if he could walk on water, some of his critics, the headline would be "reagan can't swim." there has seems to be a look oe dark cloud in the silver lining. it's absurd andn addition, whatever happened in the 45 minutes, the fact is they are having a meeting, not full national security teams but a lot of their top advisors. i think we should be helpful. remember where we were a few months ago and president trump was threatening fire and fury. there was a sense, as i say, that we were on a hair trigger and president trump went to some of his top advisors and said maybe we should pull all the u.s. dependence, thousands of them come out of south korea because it's such a dangerous situation. we are a long way from there. and that is all to the good. again, we haven't really seen any firm commitment. of denuclearization.the question does it mean kim jong un is going to give up his entire nuclear arsenal? what is he going to demand and return in terms of the u.s. pulling back, taking down its nuclear umbrella. yes, we don't have nukes on the south korean mainland but we have them in the planes that fly from guam. we have nukes on ships and submarines in the area as part of our nuclear umbrella to protect south korea and japan. a lot of people in the u.s. don't want to do that given up. one thing that concerns me, the opening meeting on camera when the president said it's a tremendous honor to be here with you and a terrific -- i think were going to have a terrific relationship, look, i shouldn't be giving advice to the president but i don't think we should be giving away too much. kim gets a lot by just having this meeting. it does boost his prestige. >> laura: that his trump. he's going to pat you on the back, body language, domination. he's a lot taller than poor old kim jong un. trump is like, it's going to be great. we'll get you and in-n-out burger. whatever. that's the way trumpets. he is not like madeleine albright in 2000. she said it's a great pleasure to meet you. nobody was freaking out when she said it was a great pleasure to meet kim jong il. >> here is the concern i have. the main reason, even for all the rhetoric, the main reason kim is here, if he didn't suddenly decide he wanted to be a jeffersonian democrat, is because of the maximum pressure that goes far beyond anything any previous president had done in terms of tightening the economic screws and getting china to go along. i wonder, given the fact that kim and president moon of south korea now have a relationship, that we understand that the chinese now are not as tough on the sanctions that they were forced to impose on north korea. the president may say i'm not giving you anything until you start to denuclearize. as the, will the maximum pressure regime weekend? because kim is on the world stage and things have been normalized. >> laura: that is a cautionary note and the smart one. i think that's what they said, trump is going to be easy on china after he had that pageantry in beijing and he is enamored with president xi and then he comes home and says we are going to do these tariffs. he is hard to predict but it's a cautionary note. chris wallace, thank you so much from singapore. great reporting. let's get back to the panel. gordon, we have to get to you. we brought up the issue of china of course and i think back to the korean war. by some estimates, china lost 900,000 casualties in the korean war. in a lot ochinese blood spilled on the korean peninsula. they have been thwarting sanctions, even those luxury gifts you pointed out. the luxury gifts tha xi gave to kim jong un and his family. you are not supposed to do that. all the banks in china helping north korea out. they haven't been unhelpful, correct? >> if you look at china let's say two or three years ago and compare their behavior now, it's much better now. the problem is, you go back two or three months, maybe four months, china's sanctions have deteriorated. the important thing here, laura, is that president trump has created a momentum. this momentum i think is pushing him in a directionmay not want to go but nonetheless, he is being forced there. that's the result of skillful diplomacy on the part of the president. president trump started out by saying his number one foreign policy goal was disarming north korea. we hadn't heard of president say that before. because of that, we've seen over the course of his 500 or so days, essentially a focus on north korea. that's why we are at singapore right now. that's actually fantastic when you think about what we've done, not only the threats but the maximum pressure sanctions whict north korea's international payments by half. >> laura: we kept hearing about obama's pivot to asia. if i i heard about that one moe time, and what did we do? we were stuck in the middle east, socially reengineering our own military, doing all the stuff with obamacare. radical charges on courts but we never did pivot to asia. in fact, china got stronger and stronger and stronger. mike has written an entire book about this. now we are cautiously optimistic that he is at the table. kim is at the table because he's out of money. his people are starving. he wants legitimacy. he wants legitimacy on the world stage. who knows if he's going to be able to denuclearize or has the appetite for it but he's going to do something. it's going to be a gradual delocalion for a gradual lifting of sanctions, don't you think? >> i'm going to be the debbie downer. someone has to do it. history screams at us to be cautious. i think the trump administratio administration, we are going through the steps, trying to see with the north koreans are going to do. even if kim jong un does agree to some sort of denuclearization, we know the north korean playbook. cheat, lie, break the agreement, parallel programs and say they are going to do this. >> laura: you don't think pompeo knows their history? they are not going agree to anything that is reciprocal, verifiable. we will know in six months. >> i think we will know the next few days. remember we can't keep negotiating forever. were going to come to a crossroads. there's two choices. some sort of war which millions of people will die or were going to continue max pressure 2.0. that's the better way. speak to kris' concern that we are going to go soft on the region, i don't see that. we have to take out a quick break. thanks to all of you. we go back to singapore in a moment to get the latest from ed henry. >> laura: history in the maki president trump, kim jong un just wrapped up their historic summit, and trump is trying to succeed where so many presidents have failed and put an end back to the hermit kingdom's nuclear program. let's get the latest from chief national correspondent ed henry. >> good to see you. here on the ground in singapore, one thing top trump officials have been talking about is the fact that previous administrations have tried the same thing over and over again and it left us in this position where when donald trump took office, north korea was closing in on the ability to miniaturize nuclear warheads that they could then attach to missiles and potentially reach the continental u.s. that's why these talks are so urgent. one thing trump officials say they find frankly amusing is that when a top north korean official in the oval offi we could go to hand deliver the letter from kim jong un to president trump, there were stories in "the washington post" and elsewhere with former cleansing officials questioning why they had done such a photo off. for kim jong un and his regime. trump officials say they tried it that way. they can said we can't do photo ops. we can't do direct meetings, can't keep pressing sanctions. none of their ways worked. what's fascinating i now they are at the negotiating table, at least a long way to go, as has been noted by the pa i can tell you something new that secretary of state mike pompeo told us a short time ago before these talks commenced which is thahey are not, inside the trump administration, going to pull back on the crippling sanctions that have put kim jong un in the corner, pushed him to the point of potentially going broke. they are not going to pull back on the sanctions until they have a commitment to denuclearization. he may never offer it. but they are insisting they are going to take a tough lin in fact i can tell you mike pompeo added that if kim jong un does not take this opportunity, they may increase u.s. sanctions against north korea which have already been crippling. the bottom line is, you put that toer with what president trump was saying before the summit can weather this is a once-in-a-lifetime opportunity for north korea, and if they don't take it, the opportunity will never be there again. it raises the stakes big time. >> laura: thank you. america has stunning, breathtaking history of diplomatic failure when it comes to curbing north korea's missile program. since 1985, u.s. administrations have tried and bar goes, sanctions, treaties, appeasement. no combination of sticks and carrots has ever worked. why could it be different this time? let's go back to the panel here to discuss it. mike, you want to address a point how things go behind closed doors and how we talk about them as members of the media. i want you to touch imap but i want you to touch on the one end on point that trump made. he basically said you have one shot at this. and this is it. is it bluster or is at the way he feels? >> it's in the context of the military exercises, military threats last year, the extreme sanctions, perhaps other things. we don't know about yet. there's a kind of intimidation of chairman kim. he is 34 years old. he is very poised. he is calm, touching president trump's arm the way president trump tos his arm. on the service, there is this mild camaraderie. as a government official, i look ide.his in terf the media chris wallace and the others, they have no idea what is going on in that room. for all we know there is close to a walk out and back to the tables and even military threats. or it's the opposite, that they have a schedule for dismantling, they have specific things. first stop the plutonium reprocessing. then the underground uranium enrichment facilities. in the case of nixon and mao and later with gorbachev and reykjavik. the documents were kept secret for 30 years. scholars only found out, this was the deal. it's not a premature commentary, going out on a limb, these journalists who think they know it's going on. they really don't. i have a hunch we're going to learn more at the press conference. but only as we begin to see when we'll be the first dismantlement. there have been two small steps already. blowing up of the tunnels with the press nearby. it wasn't a hoax. >> laura: it was already kind of collapsed? >> that strange story about the missile testing facility being disabled right is not right to say nothing has been done. >> laura: i want to touch on what bill richardson and a christian preacher who was held in north korea, we have the preacher. kenneth bay brought up the issue of human rights. let's watch. >> i would love to see president trump talk about the human rights issues happening in north korea. i was rescued by the american government here for the people living, 25 million people living in north korea. the human rights are violated every day. especially with the religious freedom they do not have right now. >> laura: eht prison camps, devastating torture reported. is it going to be mentioned in the press confere think? how much emphasis will be put on it? >> let me say our concerns as americans for human rights in north korea is not going away. this is a desert. we are at the appetizer of the negotiations. we need one layer after another. one thing is to address human rights. they have missiles directed at us. another thing, to put pressure. when, it's a question of strategy. what is happening right now is the first stage created the rst stage is to get a commitment. as it happened with yeltsin. we want to reduce the nuclear weapons. the entire soviet union. we have a model in front of us. i think we are at the appetiz. >> let's not forget one thing. it's one year ago today that otto warmbier came home brain-dead. we need to keep his family and him in our hearts and in our prayers. we have to remember that the millions of people that have died under the kim regime. we can't forget that. i actually talk to a north korean defector. he called kim jong un hitler. he called his family three generations of hitler. the united states has to deal with people like this. that's the reality of international politics. >> laura: hundreds and hundreds of thousands more can die if we don't solve this problem. >> the initial reason for why the north korean dictator started lobbing missiles and then came to the table of negotiation, something has happened in north korea. the civil society of north korea has not responded. >> laura: state media for the first time has openly reported today that their leader kim jong un, talking with trump to denuclearize and find peace. that is in state media. is that significant? i think it is not nothing. fantastic conversation, as always. stay with us. we have more from this historic summit currently underway in singapore. the latest when we return. >> laura: two mor players not part of the talks between the united states and north korea today. china wants a say in any deal. north korea has been dependent beijing. russia fears a summit could ct its reputation as a major dealmaker in east asia. according to an online piece by former russian diplomat. let's ask experts how china and russia may react to any deal. we welcome victor davis hanson. michael malice, biographer and author of the book "dear reader." and gordon chain. gentlemen, there is so much i want to unpack. much has been made of kim jong un's affection for his grandfather. where his grandfather was in conversations with jimmy carter in '93. he died three weeks later. he looks heavy. he looks like his grandfather. how does that play into this, and your reaction on the russia-china issue? >> kim jong un is doing a throwback to his grandfather, very much revered to this day even by refugees. one of the greatest people who's ever lived, they think. when kim jong il took over, he launched a campaign called let's eat two meals a day instead of three. even his clothing is a throwback. i have the same suit kim jong un is wearing. i got in north korea. optics are a function of the regime. anything he can do to challenge his grandfather's energy, and by law, only a descendant of the great leader can be the north korean leader which another reasons why he had his older brother assassinated. you have to stick with what you have. >> laura: victor davis hanson come on madeleine albright was there in 2000, she made a quick pilgrimage to the memorial for kim jong un's grandfather. that's a great leader, that's how they refer to him. do you mind commenting on the china-russia concern in the deal, any deal that might come out of this. >> russia hasn't had any international quote since it squirmed into syria when it was invited in by the obama administration. it's going to try to repeat that, punch above its weight and wiggle in. it has a border with north korea, offering some type of triangulation. north korea wouldn't be nuclear if it wasn't for china. it wants a nuclear north korea but not a nuclear war. a pit bull on chinese leash. it is perplexed. it's even scared maybe. seems impossible to imagine that maybe north korea might gravitate away toward china. as far as the iranians, that's interesting because this is their pipeline for nuclear technology, north korea and china. the conventional wisdom says if you walk away from the iran deal from you can't cut a deal with north korea. the opposite is true. >> laura: victor, victor, victor are you saying the experts were wrong? trump is going to blow up the world six months ago. the economy was going to tank. we are going to go into a global depression. the iran deal was going to screw up anything we try to do. so everyone watching notes, the experts in this region for the most part on the other cables have been wrong about asia for decades. much to the detriment of the unitedtes of america. >> i think trump was sort of like the apple commercial where the athlete throws their hammer in the screen and it shters everything because he wasn't beholden to the conventional false wisdom. one thing we have to do, laura, we can't go back to the status quo. the status quomp inher a terrible condition of missiles pointed at us that might've been nuclear tipped. what they -- once they made that decision to appoint the missile, trump says you not only lost the missile, you lost your entire nuclear program. i think he can do it. the other thing is, we are going to get medieval pretty soon because these sanctions are really biting. i don't think trump will light up. >> laura: he's not going to. it's going to be maximum pressure. gordon, i want to play something for you. former chief of staff, cia, dod under obama. all of this is unfolding tonight. history in the making. we will see what happens but still historic. this is his take away. let's watch. >> the spectacle of seeing the american flag along with the korean flag, dprk. it is jarring. it is somewhat disgusting. it's a debasement of the american flag. >> laura: a debasement of the american flag. because we've never had conversations diplomatic or otherwise with regimes or countries who have had human rights violations and even threatened us, never happened before. i cannot believe this man was a chief of staff for a major u.s. federal department. your reaction. >> not only have we had conversations with countries like this, we have given state visits to their leaders. we have had a chinese visits. clearly we have got to talk to north korea. it's much better than the alternative. president trump's maximum pressure campaign. largely responsible for getting the north koreans here. if we have to have our flag next to theirs as we talk to them, so be it. the important point here right now is that president trump is talking about a relationship with the north koreans. that is going to scare the chinese and the russians as well because it means that we can then have one more friend in asia, and china will have one less friend. by the way, that one less friend, north korea, is china's only formal ally. this undercuts the narrative of china being the global hegemon, u.s. in terminal decline, that the chinese will rule east asia, all of that goes out the window in one summit. if you have to have the the amn flag next to the north korean one, it's a small price to pay. >> laura: that is a boneheaded comment. i'm sorry. we had to play that for you. michael, when you go back and we are talking about a lot of different aspectsf this whole regime, relationship, part of the world very complicated. when mao tse-tung was looking at how north korea and the north koreans were developing and they were going to the old stalinist ways. they were abandoning marxism, leninism. it was the cult of personality. i know victor hasritten about this, as has gordon, as have you come at the cult of personality. to some extent with this young man, his grandson. we can't look away from that dynamic either. >> there is site gigantic statue in north korea of kim il son. when they put it up, it was plated in gold on the chinese government said we are a communist regime. who should be plating idols in gold. north korea is a function of the personality cult in their literature, they attacked the idea that a personality cult is a bad idea because in their perspective it's onlyhe leader who bestows political life onto the population. it gives kim jong un some leeway in the fact that since the leaders, the ideas are law, he's free to contradict him self and everyone will applaud him. new play that clip earlier of ben rhodes, if you can't pronounce kim jong un when correctly, maybe you shouldn't be flapping your jaws. >> trump is playing the good cop because he's got realists like pompeo and bolton. he doesn't have to play the bad cop. he is much better that role. that's new. nobody in the trump a did, trying to coerce u.s. banks to violate u.s. law. >> laura: fantastic. got it. good cop-bad cop. we are more coming up. dennis rodman. ...and a grand banquet hall. this is not just a yard. it's where memories are made. the john deere x350 select series with the exclusive one-touch mulchcontrol system. nothing runs like a deere™ save $300 on the x350 select series™ tractors with the purchase of a mulchcontrol™ kit. save $300 on the x350 select series™ i'm trying to manage my a1c, then i learn type 2 diabetes puts me at greater risk for heart attack or stroke. can one medicine help treat both blood sugar and cardiovascular risk? 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>> laura: come through a dynastic situation? okay. let's look at the media's role in this dlomatic chess match. dan bongino and chris hahn. chris, have at it. the dynastic situation, 34-year-old has more experience with these matters tha donald trump. kim jong un is wearing a pair of dependents at this meeting. that's my view. he's holding it in. this guy is willing to go to the mat militarily to denuclearize the peninsula and stop the missile tests. rocket man and he called him an old man six months ago. now he's across the table with trump with john bolton who he said he would not meet with. your reaction. >> i don't know where she was going. honestly, i have been a pundit for 20 years now. sometimes you've just got to talk and i guess that's where shwas going with the comment, trying to make something happen on tv. look, i think moseople hope the summit goes well. did the united states comes to an agreement where north korea denuclearize's and of course we welcome them back into the family of nations. plus we secure the borders for our allies in south korea and in japan. and we see some action on human rights in north korea. that's what i'm hoping for. if that comes out of that, i will say yay, mr. president. >> laura: we heard from bill maher that he hopes an economic collapse that would devastate american families, he wants it to get rid of trial. in the hollywood elite, when they were flipping off the president last night at the tony awards, in new york, flipping off the president. they are all giving him a standing ovation, robert de nir de niro. this is where they are. the elites on the left want this president to fail. to hell with nuclear war. i think half of them are okay with that. >> it's bizarre. wasn't robert de niro in "dirty grandpa?" i mean this when i say, i know this may sound bizarre. we should really be thinking dinero and bill maher and nancy pelosi for her comments about the economy. you hear it, and uli, they can't be this dumb but they are. each time they say this, you can chalk up thousands of more people who are realizing what the democrats really are and what they have been. in addition, this is a two prong win. we win thousands of voters who see trump as a reasonable alternative and secondly they lose thousands of customers for their movies like "dirty grandp grandpa" ." laura, i know dad has "-- dan has "godfather two" on a loop. >> laura: we liked "rainman." i will take rainman 'political analysis. that's right. it was dustin hoffman. oh, goit's late. chris, you know your cultural references. let's play for you, to have fun, have a little fun, dennis rodman was on cnn tonight and he was very emotional. let's watch. >> donald trump is going to do a great job to reach out and make sure our hands are always open. protecting everything. i can't even go home. i had to hide out first 30 days. i couldn't even go home but i kept my head up high. today is a great day for everybody. tokyo, china. it's a great day. >> laura: if he doesn't work for the cia and isn't under deep cover, he should be. >> i don't know what he's talking about, hiding. there was a special about his trip to north korea. he called into howard stern that next day. he is emotional because people have been critical of his trip. maybe he will get some vindication. >> laura: he is just another character in this new world order under trump, dan bongino. >> we live in the stupidest of times sometimes. dennis rodman is on cnn as some kind of subject matter expert. i watched him play basketball. he was great. his resume on international nuclear disarmament talks, i am reasonably confident it's quite thin. i am not sure cnn -- [laughter] >> he is one of the few americans that actuay sat down him. it is true. >> there aren't a lot of americans who have been there and sat with the guide. this guy has done that. >> one of the greatest rebounders of all time. he has done that. >> if there is a a to z list of celebrities, i am a y. dennis rodman is maybe y plus one. that's not saying much. >> dan, dan, . >> laura: i would rather have dennis rodman then then aflac or something. i think chris is right. he's been there. he has a personal relationship with kim. >> that was an intervention on camera. >> laura: what was that? the sunglasses. what's going on with the sunglasses. i don't understand the sunglasses. >> hannity just did the whole show jet-lagged live on tv. that's no excuse. he did a whole hour. i'm not buying the jet lag excuse. >> hannity has not spent as much time in the paint as dennis rodman. >> laura: all right, i am calling foul on our entire conversation on rodman. i think dan is right. let's go back to chief white house white house correspondent john roberts in singapore for the very latest on what he's hearing about the upcoming working lunch between donald trump and kim jong un. i want to know what's on the menu. i'm getting hungry. talking about appetizers earlier, in-n-out burgers. come on. give us some flavor. >> one thing i can tell you, i don't know what's on the menu but there is very good food here in s. one update, larry kudlow, chief economic advisor, the white house put out a statement saying he suffered a mild heart attack. he is in good condition according to his doctors and will make a full and speedy recovery. the most important thing right now, the big unknown for the u.s. delegation. his kim jong un sincere about wanting to give up his nuclear weapons program? secretary of state mikepeo was twice told in person by kim that he is sincere. i asked the president about it on the south lawn of the white house and again in a press conference in the rose garden. do you think kim is sincere? the president said he believes he is. giving up the nuclear weapons would go against everything north korea has been doing for the last few decades. the president believes, at least on the surface, that kim jong un is willing to do that. just in case the president has reminded all the way along that there are sanctions are going to remain in place for north korea and another package of sanctions that's ready to go if north korea decides to bailo of these talks. we heardalk about it when he was in quebec, saying it was the one shot. it's an opportunity that's not going to come around again. the unspoken part, it's not going to work well for kim if he doesn't come to the table. this president has made it very clear he's not going to tolerate a north korea that has a nuclear weapon that can be mounted on an intercontinental ballistic missile and fired at virtually any city in the united states. we will hear more about this when the president has a press conference this afternoon at 4:00. it's going to be one of the more fastening press conferences i've ever been to. >> laura: my goodness. thanks so much. we will be back with final thoughts on this historic day and night. stay there. i wanted to fight back. my doctor and i came up with a plan. it includes preservision. only preservision areds 2 has the exact nutrient formula recommended by the national eye institute to help reduce the risk of progression of moderate to advanced amd. that's why i fight. because it's my vision. preservision. try areds 2 + multivitamin. >> laura: you want to lock this on fox news. there's going to be an amazing press conference at 4:00 a.m. eastern. you can get up for it. it's going to be incredible, historic. the two of them will stand side-by-side. the question is whether they will leave representatives behind even when the president's wheels up coming back to the united states. no one else could have pulled this off. so far, cautiously so good. we pass the baton to shannon bream and the fantastic "fox news @ night" team for continuing coverage of the singapore summit. >> shannon: we're going to have some red bulls. we'll make it it two hours. thank you. fox news alert. historic summit between president trump and north korean leader kim jong un is underway in singapore. the eyes of the world are watching, as we are awaiting a working lunch between the leaders and their teams. hello and welcome to "fox news @ night." i'm shannon bream in washington. we've got special extended coverage for you of the first-ever historic summit between a u.s. president and a north korean leader. here's what's happened so far. president trump and kim jong un met a short while ago together alone with only their translators. shortly after, they were each joined by their closest advisors to continue the conversation.
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