Transcripts For FBC Varney Company 20150205 : vimarsana.com

FBC Varney Company February 5, 2015

That took on enemy fire was false. A lot going on. We will cover it all. Varney and company is about to begin. Oil and gas, first oil coming back after the big drop yesterday. 50. 77, it is up over 2 bucks. This number will hit you directly in your wallet. 2. 15. This is up 0. 09 in two days. Ed butowksi is here. The gas dropping party over. The dropping party might be over. We are still lower. Use a weird analogy the party is still going on a keg of beer are empty because things have changed. There has been the fallacy, all that money will be saved and given to the economy. All the Economic Indicators prove that is not true. Whenever the number is, and other expenses including taxes. Tom you start looking at the personal consumption numbers which are down, retail sales what are people doing with suppose the gas savings . Sounds like theyre just keeping it in their bank account. They could be keeping it in their bank account the realities things cost more money. In 2014 people would be led to believe prices only rose 0. 8 . Everybody knows the cost of living went up substantially more. It did not go to the economy. When the president stand up and says this money is now in their pockets tom we have turned the page, mission accomplished. As we trade in the futures markets you see them overextend on the downside, probably around 60 is where we end up. Tom oil prices are all over the place. We are 5 bucks before where we are, oil right now. The question is does anybody really know . You have the dollars involved, the refinery strike involved, demand involved, there are a lot of moving parts to this oil story. A lot has to do with global demand. Futures markets trade based on Global Market and you see flowing in shy and, you see europe not moving anywhere but south so there is a really good just as strong an argument that oil goes lower as you do oil going higher and as individual investors need to stay away from other accentuating or overdoing on one side. Keep a balanced portfolio because you dont know which factor will play into this. Great depression stories are out there and on the flip side you have incredible inflationary pressures so you are not paid to play, you dont know so be careful. Tom always great to see you. We get the big jobs report tomorrow and we will hear a lot of cheerleading if the Unemployment Rate which is at 5. 6 to down again but the head of gallup, check this out, saying we have been saying on this program for years now that the numbers dont tell the real story. The ceo of gallup takes a step further. This is what he said. There is no other way to say this. The official Unemployment Rate which cruelly unfair rates the suffering of longterm and terminally unemployed as well as depressingly unemployed amounts to a big lie. Monica crowley. So good to see you. I you surprised . We have been reporting this here but the general public buys into these numbers. The Unemployment Rate has been publicized for a long time originated under president obama, gained political strength as a statistic for political purposes under this president. Every time the official numbers comes down there could be made real rejoicing out of the white house they put out a statement where in the economic recovery. The reason they dont feel an economic recovery is the same reason the head of gallup was pointing to which is that numbers of false number. The actual Unemployment Rate is somewhere between 9 and 11 . If you factor in all the people who want permanent work and cant find it, the longterm unemployed who have given up. In politics as in life, perception is always reality and the perception is for people on the ground living this economy that it still stinks. Tom it does. We talked about this yesterday with mary kissel but it comes down to that is why the november Election Results are what they were because people have stopped believing these nice political dont know what you want to call them. Government reports come out and who are you going to believe . You or your eyes . The government has lost credibility in terms of presenting these numbers and they are shot through with seasonal adjustments that are adjusted later and so on. The American People are living this every day and they know the numbers not right. Tom it matters economically because these parttime jobs that are not counted differently from full time jobs, wed need fulltime jobs to get enough money into coffers but nobody did into the weeds like we do. The weeds are lower paying jobs people want fulltime jobs dont have them. Bill hemmer of fox news gave this Program Credit for talking about this while he interviewed the gallup ceo. We view this lot from our colleagues at fox business and Stuart Varney has been talking about this 3 years. Those fulltime unemployment jobs will never come back until Free Enterprise and the spirit of entrepreneurship gets back in. That is going the wrong way. That is a big challenge. This is a big story. Gallup is well regarded they are not considered right wing left wing, they are just considered good data. It would be nice to get this from the head of gallup six years ago, five years ago. Now is a little late the president has been reelected and one thing he has been pointing to our obama policies, epa regulations, wet blanket sitting over the economy and job creation. People dont know why but that is what is going on. We have a triple digit rally under way. The dow has finished higher the last three sessions. So far it is four in a row so the dow is up 152, not bad. We were above 18,000, we almost hit 17,000 and we are back 17,825. Disappointing profits at Green Mountain and it lowered its sales outlook. A big winner today after pfizer announced it will buy the drugmaker for 16 billion in cash and shares hitting a record high on 35 jump. Now to the fight against isis, Jordans King Abdallah a former general, special forces commando when his dad was the king is putting his military fatigues back on and ordering air strikes against isis targets in response to the murder of the kidnapped jordanian pilot. They will take the fight to isis with or without the support of the United States. It is unclear they are going to get any support. Listen to this exchange between jos fairness and ed henry. Seemed to be suggesting the white house was not aware the king was in washington in large part to get more support from the administration and congress for weapons. The administration is standing squarely behind the people of jordan and the king and we are supportive of any efforts to strengthen his National Security and his ability to make tangible contributions to the broader campaign. Tom lets bring in concerned veterans for america ceo i guess you cant even call that a strongly worded statement. That is about all it is. What did josh earnest just say . He said nothing. That is why jordan feels like it has to go with the without america. Think about that phrase, with without americans we will take on isis, the greatest radical islamic threat on the planet today. Such a galvanizing moment where jordan saw the sheer brutality many of us have seen for years and got an opportunity to build a Real Coalition. Airstrikes are great, they had some impact on isis. What we need are. On the ground from muslim countries in that region his see isis for the threat that it is jordan, egypt, saudi arabia turkey but it will require American Leadership to be that Coalition Including American Leadership on the ground and you are not seeing that. Tom that is what a lot of people say. Especially people who dont want to get involved. That is their work, they can clean up their garbage they can do it themselves. Others are saying if we dont do something this is germany 1940 all over again. We have to do something. Is islamism like nazis or communism this is what we are facing. Is easy to say it is their fight except in that region a look at iraq and isis had to do they blame . The americans to topple saddam greeted the environment, surge and left, now isis has come from iraq to syria to iraq we have to be part of putting those pieces back together but doesnt mean we go alone or do alone. It will require as to cobble together a Difficult Coalition that currently does not exist. Airstrikes will not do it. American leadership is the essential ingredient to a Real Coalition and this white house refuses to carry that mental which is why you see a country like jordan saying if the americans arent there we have to do it ourselves. Stuart tom they got a million refugees in their country but this whole business of showing leadership overbear really feels strongly like the white house is kind of like these unemployment numbers and Everything Else they say isis is being defeated al qaeda is being defeated yet the map shows isis is continuing to grow and take more cities. Such a disconnect between the words at the podium and actions on the ground. That is what our enemies see and what our allies see and why our Coalition Never formed because they heard the right rhetoric but never saw the action and that is why our enemies are emboldened. 8 here in this rhetoric in washington but they dont see any action so they are emboldened to continue whether it is isis or Vladimir Putin in the ukraine or al qaeda in yemen launching even more aggressive attacks. They are not seeing any change in policy, they are not seeing American Leadership and taking advantage of it. Tom thank you very much. Here is a look at the rest of the big headlines we are covering with lauren simonetti. Frantic audio from the cockpit of the plane that came crashing out of the sky and tie one. As the pilot warning mayday, injun flameout in the left engine before the plane banked sharply left, clipping that bridge and crashing into the river below. 32 people dead. 11 missing and amazingly 15 have made it out of live. With the planes black box found investigators get a better understanding of what exactly happened. The driver of the suv fat was plowed by the metronorth train tuesday night is identified as 49yearold mother of 3 alan brody. Five of the trains passengers side. They were killed when brodys suv stop on the track and a train traveling 58 miles an hour was unable to stop. Service was restored today. Meanwhile a cyberattack that the nations second Biggest Health insurer and from. The name behind potted the Blue Cross Blue Shield plans hackers stealing tens of millions of customers and employees did including Social Security numbers and in comes. Anthem has created a web site with more information about the breach so we have another one. Tom obama supporter Warren Buffett says we should build the keystone pipeline. Is it time for the white house to listen to to ambassador john bolton is next on that. Later this hour one of the stars of the popular netflix show orange is the new black on the future of how we watch television. Gets her kitchen back. You listen to me. Whatever you think you know you dont. The future of the market is never clear. But at t. Rowe price we can help guide your retirement savings. Our experience is one reason 100 of our Retirement Funds beat their 10year lipper averages. So wherever your longterm goals take you we can help you feel confident. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. Call us or your advisor. T. Rowe price. Invest with confidence. Dow jones industrials, up 148, 14, 17,820 on the numbers. Look at shares of microsoft coming up on one year for the ceo and stock is up another 12 3 . Stocks done well over the past 12 months up 16 and that will make Stuart Varney very happy because he likes to proudly proclaim he is a shareholder. Cme Group Closing some futures trading pits in new york and chicago. From the cme in chicago what is going on . Technology replacing the open outcry . It is a sad day when i started here in 1983, every exchange was as crowded as this one, very raucous and a lot going on and as efficient as it seemed it was very eat fish and. Unfortunately technology has taken hold and made trading far more efficient and profitable for the exchange too. That is why you are going this way. You can get more done in a short time so that is what we have going on. The question is the fact that the human needs to be there when you get something that blows up. That is the question i had a discussion with partners of mine. There are times when the exchange or the computer has gone down and could fill up with traders trying to get things done. I am sure they have a contingency plan. It is nice to have his involvement. You have a human happens to be behind the screen. Tom we got the chairman and ceo joining fox business this afternoon at 4 00 eastern john after the bell. You want to check that out to see what he has to say. Warren buffett says it is time to start dragging our feet and built the keystone pipeline. Warren buffet. Listen to what he said to liz claman yesterday. It disturbs a lot of people in nebraska. Of farm with water going through, that is always a problem with pipelines. Nobody is going there is a lot in the backyard problem but by and large keystone should be done. Tom how about that . Former investor to the u. N. Ambassador, is this ever going to get done at least in the next two years . Not in the next two years. This has nothing to do with economic rationality. Whether it is jobs for constructing the pipeline, taking advantage of all of north Americas Energy capabilities building our Energy Infrastructure allowing more exports of products to the rest of the worlds to make the u. S. Canada and mexico strategic player in oil markets, this is about the obama white houses hatred for carbon. Is what it boils down to. They are not going to change. They are playing domestic politics and it will be interesting with Warren Buffett as a big supporter of Hillary Clinton is this an issue where she will finally show daylight with the president . Tom every excuse they could make including wall street journal for the president to task. Easing for nbc is trying to convince us that this is canadian oil that has nothing to do with us. 40,000 jobs in the United States to build the thing, the oil that comes through the pipeline can go a lot of places but ranking out on the canadians is a pretty cheap shot. We have got combined energy and Oil Natural Gas capacity in north america that is unbelievable and those canadians may be foreign but are on the same team as we are. Tom it fixes global crisis. Before you go, King Abdallah has been of fighting man. He is a real leader unlike the present occupant of our white house. We should do more to support him. I am more pessimistic than a lot of people. I dont think this barbaric killing is going to change the president s mind one bit. Tom King Abdallah ha st. Gone for leaders hy why are going to give more humanitarian assistance to jordan. Slicken ukraine, we are three years behind where we should be in supplying them with military assistance. We will get a little more but this is just creeping along. Isis continues to consolidate, control the territory it has and when we decide to do something about them this lackadaisical strategy is going to ambassador john bolton, good to see you. Another major cyber attack, this one, 80 million people, the second largest Health Insurer in the country. One of our good guy hackers is next. Can this kind of hacking be stopped . At ally bank no branches equals great rates. Its a fact. Kind of like shopping hungry equals overshopping. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Tom now lets take a look at cybersecurity stocks. All green arrows on every one of them. Splunk. Fire eye, cyberpark, going higher on the news about the big attack on Anthem Health care. As many as 80, 80. 80 million customers may have had names, addresses, Social Security numbers and other security information compromised. You can go a long way in hacking. Lets bring in founder of parameter securities. David, this stuff is just getting bigger and more common. It seems like all of us have had somebody weve done business with who have had our data hacked. Heres the thing to understand. Its not getting bigger. Were just noticing it. We have if this has been a baseball game, its Little League against the new york yankees, and were the Little League. The problem is we are finally starting to understand that hackers are coming after us that were not as secure as we think we are, and a lot of the Bigger Companies now have the technology to actually maybe not stop the attack but to detect it. Tom well, what ive heard from a lot of people in your business, and part of it is i kissed off at one point to just people always complaining about the fact they dont budget enough for the i. T. Department. Theyre not buying enough security. Whats your take on it . Are they going cheap . Companies not spending enough on security . I think the budget is a big issue, but you know, you

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