>> i'm charles payne, stuart's going be to be back tomorrow. here is the story, the nation still jolted by the terrible jobs report. millions of looking for work, but 30,000 chicago teachers, well, they're walking off the job right now. their union refuses to budge on merit pay. and this is a major story, with huge economic impact for our nation's third largest city, and also don't forget the political impact as well. chicago is the president's home town and its mayor, his former chief of staff. so, will the unions demand president obama's support and then there's this. the obama team continues to bash bain capital and calling for 150 million dollar investment in a private equity firm dedicated he solely dedicating businesses and

jobs overseas. this is monday, september 10th and we'll be right back with the company. david asman is with me and nicole petallides on the floor of the new york stock exchange.

>> it's monday, september 10th and here is the company. david asman along with nicole petallides from the floor of the new york stock exchange. now, guys to the big story. nearly 30,000 chicago teachers are on strike today, that means 400,000 students are out of school this morning. it's the city's first teacher walkout in 25 years, the heart of the issue, the unites won't agree on a merit pay system. what to you make of that. >> they're getting a lot-- i used to teach in the chicago schools, a junior high, cabrini green, that's not there anymore. charles: a housing project, oh, my. >> one of the reasons i'm not teaching now is because of my experience in chicago, the whole system was so corrupt, it was

such a racquet. surprise, surprise, it's chicago, right? but the school system i didn't want to become a member of the union. i was going to be forced to be a member and one of the reasons i pulled out. so many politics that intercede in what's happening in the school system there, in anything that happens in local politics in chicago, but one thing that's bothering the teachers a lot. so many people are fed up with the school system they're going to charter schools and of course the teachers hate charter schools, they can hire nonunion. charles: and the charter schools in chicago. >> the only schools open in chicago now. charles: why do people like charter schools? there's a meritocracy. and truly academics and everything is second and third. >> because everything is a rocket in chicago or most everything, some of the teaching methods, i don't know if it's changed. this is a long time ago, 30 years ago. let me explain some of the teaching methods we were forsed to use in order to maintain our federal grants, the teachers

knew was wrong and they knew it was bad, but we were force today use it because that way, the school system kept getting the grants and charter schools don't have to do it. they're judged on the basis of scores, not on the basis of what materials they use. maybe that has one thing to do with why the parents don't like the public schools here. charles: well, yeah, a lot of reasons and charter schools on the rise big tile across the country and we'll talk about it more. now to the november elections, president obama, he pulled ahead of mitt romney in fund raising last month. in august raised 114 million dollars, governor romney raised 111 million dollars, the obama campaign says that's more than 1.1 million people donated to their campaign in august with an average donation of $58. by the way, president obama says he needs more time and bill clinton says no president could have fixed this economy in just four years, really? what about ronald reagan? art laffer, reagan's former economic advisor, he's next. what do you think he's going to

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from the opening bell. this promises to be a big week after that huge disappointment on friday, and everyone's wondering what the fed's going to do and everyone is wondering what's going to happen in europe after the big news there with the money printing machine. so, the stock market probably is the opening, but believe me, stomachs are tightened and people are really, really anxious to see what happens this week. and the. [bell ringing] opening bell is ringing and we're drifting more. the big board now, the dow off 5 points and down just slightly in a tight trading range. kraft, their outlook disappointed last week and some analysts are saying, not so fast. where are they opening? >> the stock is up over 1% and last week, a big loser with the number one loser on friday and it's the number one loser for the month of september and gave the outlook for 2013. now, they're going to be spinning off the north american grocery business and they have

an international business and everybody was nervous about the projections for 2013. let me tell you what's going on this morning, i could tell you, citigroup, rbc capital, jeffries, steeple nicholas are coming out in droves, basically talking positively so putting them on the saying that the selling was overdone and the pullback was a buying opportunity and upgraded to outperform and the weakness was overdone and so the guidelines, that selloff on friday, they like it. charles: well, we've seen sort after change of mind pretty much a lot recently with wall street. nicole, thanks a lot. now, democrats argue that president obama needs another term to fix the economy. here is bill clinton from last week. listen to this. >> no president, no president, not me, not any of my predecessors, no one could have fully repaired all the damage that he found in just four years.

. charles: not even me. art laffer former reagan economic advisor and art, i guess when he says no president, you must have really sat up pretty straight there. >> it was pretty weird what he said. you know, many of the parsing words, fully repairing all, every single thing that was wrong, but basically, it's not true. and bill clinton reminds me of sort of that cut up in class that you remember in high school. we had one in my high school, he had a whoopee cushion that he sat in the back, i don't know-- and bill clinton -- do you remember the charlie brown, what a clown, the coasters song. bill clinton is that, a lovable character, but he's wrong. charles: the mass media take him as opposite, as some sort of almost unbiased oracle who saved america's economy and would be the best person the president leans upon in this kind of stuff. >> he was a great president when he was president i voted for him

twice, but he's not correct on this. reagan did a great job in '83-84, we had growth 5 1/2 range quarterly and '84 huge growth rates and coolidge post world war i depression there and bill clinton did a great job as well. i mean, jack kennedy did a great job, too. charles: so, art. >> no one as bad as obama. charles: and what is the difference then? what is the difference between obama and kennedy and ronald reagan and harding and all of the others despite what bill clinton had to say about history were able to step up to the plate and turn it around? >> and even bill clinton himself, by the way. saying no, you can't tax an economy into prosperity, charles, it doesn't work that way. you know, government spending is taxation, pure and simple. they don't create resources they redistribute that. what you see with obama he's put in the wrong economy, all the across the board. he's a great guy, he really is,

but he's wrong. clinton, reagan, harding, coolidge, kennedy did the right thing. kennedy's tax cuts were spectacular, his one term was called the go-go '60s and he didn't finish one term, but was a legend in great performance. reagan, the roaring 80's and then the roaring 20's and bill clinton did a spectacular job. he cut the capital gains tax, he got rid of capital gains taxation for owner occupied homes, and welfare reform where you actually had to look for a job to get welfare, he cut the tax on people between 65 and 72. who had to lose 50 cents in social security benefits for everything, he was just great. sorry-- >> art, this is david asman. one of the knocks comparing reagan to what's happening now. economy took off in '83 once the tack cuts kick in like gang busters, but a huge drop in the tax rates. nobody is suggest, even romney

is not sucking suggesting such dramatic cut. will it be like the reagan era. >> romney is suggesting 20% tax cuts on income. and huge level tax cuts, getting rid of estate tax and i think that romney is talking taxes, phenomenally. i don't know if it's the same. we were in in office, tax rates were much, much higher and a larger kick when you cut a high tax rate than a low tax rate. charles: art, you guys i've got to tell you, i think your economy, that reagan dealt with was tougher than obama's economy, and i think that he laid out the perfect prescription for it, you know what if we did move away from pure politics that would have been the right medicine this time around, art laffer, thank you. >> david, charles, can i just commend david asman. i had no idea david, you worked in cabrini green, i'm from chicago, god bless you.

charles: next time you're in new york you can show the physical scars to prove it. >> thanks, charles, bye. charles: and uncle sam stakes in aig, what are the shares. >> they are he' down 18 billion dollars so they're selling the u.s. treasury department, right? this is all our taxpayer dollars remember when aig was saved back in the financial crisis, so, they will he' be now not having that majority and move into a minority stake, a minority share and so, right now, it's down 1.8% for aig. so, it's big news every time they sell off some of their, the treasury's holdings were aig, it makes news of course, because those are our taxpayers dollars. charles: thanks a lot and also big news, back to the chicago teachers strike and 400,000 students out of school because teachers unions will not agree to merit pay and this is after mayor rahm emanuel offered them a big raise. a former investment banker and joins the company.

carol, tell us about business, how hard is business going to be hit by thfrjts well, charles, i think it dehe pends how long this goes on for. if this is a one-day thing, i don't think that anybody believes it would be. it's sort of the same as an emergency day, but if this goes on and on and on, it's going to hurt businesses and working families and they're going to find alternative care and they're going to have to pay money in some cases for alternative care so i think that's one of the big issues that a lot of the working families are having frustration were in chicago. charles: i read a lot of social media in your neck of the woods and the mexican families, they feel any days their kids miss is a huge opportunity to catch up in the system and everybody across the board is being hit by this. and one of the big challenges, you have to realize the kids got back to school. in some cases four weeks, in some cases it's been one week, so there's a disruption in the learning process, and that becomes something that the

families are having frustration about, in addition to the additional burden from their own pocket books, and just having that jockey their schedules. they're going to have work extra hours and alternative arrangements and while everybody has a lot of respect for the teachers, i think a lot of working families are having a lot of frustrations around the situation. >> well, now, it's interesting, you say everyone respects the teachers, i know, and one of the big teachers involved in this, let's do this, let's dance. and major union delegates, let's go on strike and this cannot be popular with people in the city. >> it's certainly not a popular stand. you know, first of all, you have to remember that the teachers work for the families and their property taxes are the ones that are paying for them. and when you're in an economy, the families are struggling to find work and struggling to have some collapse of folks, the teachers asking for more pay and making demands and shifting the

burden back, it's creating a lot of frustration and i feel like there's an empathetic support for the teacher and respect them as teachers, but certainly saying it's not fair, this isn't the time to do it and if you're that close on making a decision, have those negotiations, but don't go on strike and i think that's a big piece of the frustration. >> 16% raises offered over four years and close on benefits and all of this over the notion that they don't want any meritocracy in the system which is ironic i'm sure they have to grade the students on some sort of meritocracy system. thank you very much. we want to hear from you, send your e-mails we love your opinions varney@foxbusiness.com and we'll read them live on the air as they come in. and right now i have the honors of trying to find seven stocks that might be be up. nicole mentioned kraft, kraft is up a little bit this morning. a lot upgrading it rbc saying it's probably oversold.

royal bank of scotland, scuttlebutt they may be able to settle the libor situation, huge settlement would mawall street breathe easier. this guy is out and the stock goes up. when you you leave the firm and the stock goes up. barron's a nice move, tesoro. and transocean rig agreed to sell shallow drilling wells. unchanged. and this oil and gas company reported earnings of 3%, obviously, nice environment fob in that business and finally, regis financial added to goldman sachs conviction buy list. in all of these regional banks, happen to look pretty good this morning. okay, how big was president obama's convention bump? and can mitt romney swing the electoral map in his favor? one of our top democratic

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morning and gas prices pretty much flat over the weekend and national average for a gallon of regular, 3.82. and diesel holding at 4.11. >> and jump in for a second a look at the price of gold down about 9 bucks because the dollar is firming because a lot of whispering going on maybe bernanke is not going to do buy buying in the thursday fed meeting, maybe extending the low interest right to 2015 instead of bond buying. charles: or no matter what he does, it may not work. but the dow fdown. and obama a bump in the polls, 47 and mitt romney at 43. 47% of voters likely vote for him. and the fox news contributor, helping to break it down and also to help us break down the conventions. pat, first of all, what do you make of a bump, is this traditional or great news that the white house-- >> no, this is a little bump. it's much smaller than we were

on the campaign insiders speculating because they jam these things so late, but romney got no bump. basically they he got nothing out of the republican convention except for his favorability. obama got a small bump up, but more importantly he got a bump in his job approach. more than the rate you're showing there, the fact that he's as high as 52% on friday and saturday, both gallup and rasmussen, the highest since january of 2011 after the deal they made in congress. this is-- these numbers are still 50% on sunday. if the numbers hold, this election, and romney is in deep trouble. there's no doubt about it. romney campaign miscalculated themselves. >> they sit there thinking if they do nothing, he will be defeated people don't like the record. what they've done, allowed him to make the case that while you know, it's a choice election not referendum and romney hasn't filled in the blanks and it's a

problem with-- >> they he need to get-- the numbers fully digested by-- >> no, we will get this. the fact is even today the republican party has not a single spot up on-- their response rate, i have to tell you, their inability to respond in an instant communication environment is amazing. charles: i agree, i agree. >> and this job thing, the real-- >> 45,000 jobs created in june. did can you imagine that and 45,000 and almost 175,000 in food stamps and everybody in the country should know this. >> it's a matter here are the facts, folks, you don't have to he wi embellish them. and unemployment situation, 11.2%, and this is a disaster and they don't know how to-- how drop out of the job market. >> i wofer been out right away, 24 hours, here are the facts folk, look at this, 386,000 people leave the work force, the unemployment rate is a joke.

we have, you know, you've got a real 11% based on the participation rate were the same. 15% rate of unemployment, of the-- >> the numbers are hugely ugly. >> let me say the other thing, charles, what romney is not do is make an urgent case there's a crisis coming in the country and he has answers for it. he's running like he's running for city council. charles: do you think though is that his fault or is it-- >> it's his fault. charles: or the handlers. >> this is the most insular campaign in american history except perhaps-- the notion that he's got a tin ear and sort of-- >> and i watched yesterday on meet the press. charles: i thought he was good on the interview. >> i thought he was terrible. charles: really? >> charles, he was flat as a pancake and he was, there has no urgency, there was no sense of crisis coming in the country. and do we continue this it's going to be a disaster. and that's what the anxiety that the country feels. i keep saying winter is coming folks and you better understand

that, because people feel it. >> does he looks like he's running scared? >> no, it looks like he's running bored. charles: i tell you what, that's the sound bite of the week probably and it's only monday morning. thanks a lot. running bored. you know what? that might be a bumper sticker for someone. we appreciate it. and now, one of the big concerns going into week one of the nfl season, those replacement rounds, it isn't such a bad joob and this union fight is a major economic story, too. and who better to talk about this than lori rothman, that's right. she didn't miss those regular rounds, look at lori, how was the game? ♪ [ male announcer ] let's say you need to take care of legal matters.

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>> for the first week of the nfl season was plagued with replacement refs. there were no disasters and bad calls that cost the team a game. no injuries or fights as a result of these inexperienced refs failing to maintain control. does this mean that the unions won't be in a rush to renegotiate the contracts? >> first of all, i thought there were a lot of bad calls as i was switching around a lot of coaches on the sidelines, pulling their hair out.

charles: more than normal? >> i would say-- the classic games the patriots versus the giants in the pre-season and coughlin, the giants' coach a little crazy anyway, going to have a heart attack, and-- >> and yesterday though it felt like the games went really well, no one really-- >> went well for he me and i like the jets and they won. charles: with an about the unions, if you're a union guy you're sitting this saying golly, there wasn't any real disasters and we might be in trouble. >> i bet there's a lot of pressure and the coaches, i saw some bad calls aim he a sure the coaches saw a lot more bad calls than i did and i'm sure they're pressuring. >> talk about monday morning quarterbacking. i couldn't resist. the first time in a nfl game, a woman as the line judge. shannon easton, called the lions and rams game and helped with players in a shuffle. charles: get rid of the union

and a woman gets a shot. >> imagine her trying to get the 300 pound players. >> she did it. charles: everything went off without a hitch. if i was in the union i'd be nervous. and we heard obama bashing romney for months now, new at ten guess where the obama administration wants to see an investment worth 150 million dollars end up a blockbuster story and we ever it for you next. i'm so glad you called. thank you.

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♪ >> try this on for size. the obama team trashes pain capital. the white house is working hard to endorse a $150 million investment in private equity in dubai. the only goal is to develop business and jobs overseas. more on that in just a moment. market up and down and under high pressure all morning. off five points on the dow. lori rothman braces us with her presence. david asman is still here and, of course, google petallides. how is this not working out? nicole: it is down 2% this

morning. it has some accelerated selling since we last spoke. this one-time offering is the largest one-time offering. it will move their stake from being a majority to a minority. that is it for all of us. charles: absolutely. thank you. the obama administration is encouraging investment and private equity in dubai. the corporate is pumping a 150 again dollar investment with that dubai private equity firm. it is solely focused on creating jobs and boosting business in the arab world. lori: in making money for us back here in the united states.

everyone knows alternative investment vehicles, this is where you make your returns right now. this is not the first time they went to do this. >> that is one of the main target we put our investment into. that administration is trying to pump energy, to try to pump cash, if you will, right directly into that arab spring. egypt is really unstable right now. they look like if i was a betting man, i will put more money on them than any other particular party. it is a very risky bet. [ talking over each other ] charles: the premise, of course, private equity is a bad thing in the first place. we want to help them, the muslim

brotherhood, how could you do this? lori: institutional investment. it is one of the best ways to make barely a double-digit return in this climate as you know all too well, charles. >> what is good for the goose is not necessarily good for the gander. charles: before people used to be sheepish about this stuff, now it does not matter. why has that happened? like an administration say one thing and do something else over and over again. >> the romney campaign is not being as aggressive as they could be. what did he say, they are running board? [laughter] they are not running as good as the democratic side is. lori: the romney campaign has been very measured.

they were able to attack and capitalize. [ talking over each other ] charles: i am not sure if it is working. let's bring in former manager at bain. your reaction to president obama's private attacks on private equity in the story, of course, about the private equity firm in dubai. >> the private equity firm in dubai has me scratching my head. i do not get it. one of the differences between liberals and conservatives is, i think conservatives recognize how difficult it is to hold on to equity. it is very fragile. we take a different and sacred view of it. we realize we need much more of it to grow our economy and jobs.

that same respect is not always there on the other side. they think all you have to do is cut another job and things like that. charles: listen, you had a head start, some kids who went to public school and eventually work for bain capital. you also owe, there is some sort of major debt owed. >> the funny part about that is, of course, we stand on the shoulders who gain before us. who do you think paid for the sidewalk in front of the business. charles: we have had this aig story today. this bailout, particularly, at the banks, it felt like that may be a turning point for americans. every time a profit, it goes into their pockets. every time they had a loss, everyone had to share in the loss. you think that is when they had

to be open to the suggestion that there is a problem in this country. >> the banking situation is very misunderstood. they face default risk and default. they will make unproductive loans. i know not that that is what happened. charles: whenever they are making a bunch of money, they celebrate. whenever it may lose a lot of money, everyone is shelling out. should these banks be able to go outside of business? >> would have a 30% drop in real estate that you cannot have everything go out of business. $1.5 trillion. that is with $15 trillion. charles: romney is running a

very bored campaign. he seemed disinterested. he has no passion. maybe that works well in the board room. do you think something will click with this guy, some sort of spark, a flash of genius, if you will. >> i think it is all coming down to the debate. we will see. i think he is an excellent debater. by putting all your eggs on that that, you are taking a chance. i will agree with you on that. lori: someone suggested we will get a lot of flash and charisma from the president and the substance romney will bring and the campaign will be lost. >> i think it is hard to defend economics at business. they are complicated. they do not lend themselves well to sound bites and taglines and things like that. charles: there were a lot of democrats defending.

they came and cut even bill clinton came in and defended romney's role at bain capital. why not just use the democrats own statement regarding bain and capital regarding going against the rhetoric against it. >> i also think the people who are supporters of private enterprise, they are already on this team. what you are trying to get his swing vote. charles: before we let you go, i want to say, are there any more unintended consequences? it seems everything is so mapped out these days. i think it is an excuse. >> i think there are tons of unintended consequences all the time. every time we try to regulate something. every time we try to subsidize a bill. there are tons of things that affect us down the road. charles: absolutely.

thank you. students are out of school as teachers refused to agree on merit pay. we have to talk about this some more. this is chicago. people die there every day. there are murders. right now chicago is in the midst of a gigantic crime wave. shootings are up 100%. murders are up. this is a thing i keep hearing. we have to address gangs and keep kids off the street. a lot of kids are going to be in the street's. >> let me quote someone from the 1930s, a strike of public employees would cause a -- this is unthinkable and intolerable. the guy who said that is fdr. he said they do not have the right to strike. the person on the other side of the negotiating table if somebody who is unrepresentative , the taxpayer. charles: this gets us back to

the wisconsin situation with collective bargaining. if you are in the government, you are in a no-win situation. we saw what chris christie did in new jersey. the unions are typically on his side. i don't know. lori: i think the president is in the worst spot. does he stand up for this union because the unions are already kicked off at him. then he is a former chief of staff. i think it is a pickle for the president. charles: over keystone, eta, all regulations and other things. he needs their support 100%. there is no way this will last 19 days.

>> no. chicago is in the midst of falling apart. look at the state of illinois. wisconsin had all of these restrictions on public sector unions. indiana had all of these restrictions and they are doing much better than the state of illinois. illinois also raised its tax rates while the neighbors did the exact opposite. a lot of businesses are flowing out of illinois right now. charles: big government versus pro big government. lori: last thing i would add are the particulars of the situation. they wrapped up negotiating at 10:00 o'clock. the deadline was at 12. the teachers just threw up their hands and said enough is enough. the issues are not paid. it seems they agreed on the big stuff. [ talking over each other ] charles: by the way, guys,

anyone out there after friday's jobs numbers, i look in the 16% over the next four years, most americans would be happy with that. let's go back to nicole. michael kors is a real loser today. why? nicole: they have the right when the lockup expires and they can then sell. well, they are selling. shareholders are selling off. some of the managers selling off. you can see it is down about 3% right now. it is about 20 million shares. this is what was estimated. 10% of all the outstanding shares. it went public back in december 2011. it did well. it is up over 100% this year. charles: michael kors has been a grand slam. this is not necessarily a man bites dog. apple and google hitting highs again. nicole: you love tech.

both apple and google are heading new highs. apple at an all time high. we are waiting on the new iphone five, of course. google with their android operating system doing so well. charles: nicole, thank you so much. making the government now a minority shareholder. is the judge happy about this? that is right, he is back. we missed him so much. especially his last. [laughter] [laughter]

charles: the dow jones industrial average down 16 points. government cannot agree onbudget cuts. i mentioned that. ben bernanke may also print money, but the more they see, the less it helps. gold down today. some people betting he will not announce new printing operations after all. gas prices holding steady. international paper's among the biggest losers on the s&p 500 this morning. aig also a loser today.

the government is selling some of it steak and the stock. the judge is back. he never wanted to own aig in the first place. is he happy? we will make money. he has to be happy. you will hear that last. that is next. [laughter]

♪ charles: for the first time in decades offshore drilling has become.

let's take a look at where shell is trading right now. the u.s. government is selling $18 billion of aig stock. that will reduce stock pares stake in the company. will this encourage more. all rise, the judge is here. every time i hear that the bailout works, i cringe. i know it is up for all of it. >> you make a great point. very successful industrialists and strong believer in the free market who points out the problem with this. the problem with the government failing businesses out is businesses take their eye off the ball which is to produce a good or service as inexpensively as they can.

instead it goes to how can we please the government. that is the only reason aig is here today is because the government printed money because it did not have money and nationalized aig. as charles cook would say, how does the government decide who to nationalize, who to save and who to let free-market forces control. charles: you can also argue, if i know how it works to get filled out -- >> it should never have gotten in aig in the first place. you are also right when you say this, the democrats will now say, and some republicans to, look, the government made money off of aig. [ talking over each other ]

charles: i am so glad you brought up the fed to. how about the debasing of the currency in order to create the bonds. our currency has been so debased over the past four years. some of it is because of the financial crisis, but some of it is what of the fed has been doing. >> last week when joe biden said gm is saved and it is now making a profit. has he forgotten that money has not been paid back? lori: just because the company enters into bankruptcy, it still continues to operate. this has been my beef. i know i am taking the conversation to a new area. >> no, lori, i don't think you are. charles: the free market could have handled this. it should have handled this.

[laughter] that are apples and oranges. here is the thing, though, general motors is in trouble. they have to take a loan out for their pensions. everything that supposedly worked, we have to do again. if that worked so well, why do we have to do it again? >> who is general motors biggest customer federal government. >> where do they get their cash from? >> a printing press. >> we need a new value set pushing the engine of the federal government which is what the free market regulate value. charles: we will have to leave it here.

that is what november is all about, by the way. judge, we love you and we miss you. glad to have you back. president obama was in florida over the weekend. will voters accept the white houses positive spin on the jobs? former florida senator will join us next. >> today we learned after losing over 8000 jobs a month when i took office, business once again added jobs for the 30th month in a row. [ cheering ] i've been a superintendent for 30 some years at many

different park service units across the united states. the only time i've ever had a break is when i was on maternity leave. i have retired from doing this one thing that i loved. now, i'm going to be able to have the time to explore something different. it's like another chapter.

>> if we continue this, it will be a disaster. that is the anxiety of the country. i keep saying winter is coming and you better understand that. charles: that was during our last hour reacting to mitt romney's slip in the latest polls. remember you have to tune in every day at 9:20 a.m. eastern time for farney and company. the dow is kind of fighting back

here. let's take a look at gold. still down seven dollars. 17.33. not a big change in gas prices over the weekend. the national average still $3.82. he still holding out $4.11. president obama attacked mitt romney's plan. on friday in new hampshire, the president defended his administration for creating jobs. >> today we learned that after losing 800,000 jobs a month when i took office, business once again added jobs for the 30th month in a row. a total of 4.1 million jobs. charles: only 96,000 jobs were created last month. just 45,000 in june. many people give up looking for jobs altogether.

senator, you know, he did not bring up jobs at all, but what do you make of the convention and how the president is faring since then? >> charles, the reason i think he did not bring up jobs is we are in a very difficult economy here and florida. we still have nearly 3 million people out of work. when i talk to small business people, they do not know when the next shoe will fall on them. whether it is obamacare, dodd-frank -- it is not surprising to me that the president does not want to talk about jobs. i think floridians are optimistic to talk about what mitt romney and paul ryan have to offer. to me, the most important thing is to have a job. that is all people in florida want to hear about. charles: on that note, though,

at least with the republican convention, romney was criticized pretty widely by not having any details. he threw up a number geared you know, what is his plan specifically because a lot of people do not know? >> what i heard is he wants to repeal obamacare, which is a big deal. it hurt job creation to have obamacare. if you have 50 employees or more and your health insurance does not meet the new obamacare standard, you get taxed $200 per employee as an employer. we are the number one small business state. 99% of our businesses are those small businesses. they are looking at their employees and policies and if that will find them $2000 per employee, they are not likely to hire.

i hear that every day from business folks. charles: senator, would it be a shock to you, if we come to some sort of dumb juncture in this country where the job situation is not as important as some of the things they talked about at the democratic convention. is the country and particularly down in florida, is this message resonating? >> that is what the democrats are preaching. they are preaching we will all go on this journey together and the government will be your partner in this journey. that is just an un-american story. this is a land of opportunity. what opportunity means is you are given the chance to succeed. not guaranteed something less than success. i do think it is a turning point

election. we do have people on some kind of federal assistance. i am talking about welfare or food stamps or medicaid. that is a lot of folks. there is a great divide. this will give the opportunity to focus on creating jobs. a fair and flatter tax system that is more predictable. so business people can feel like they can hire again. that is what we need in this country to get back on track. charles: thank you a lot, senator. we appreciate your time this morning. president obama did get a pretty nice bounce from the convention. are voters paying attention to jobs? we will get a read on that next.

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♪ i can do anything ♪ i can do anything today ♪ i cano anywhere ♪ i can go anywhere today ♪ la la lla la la la [ male announcer ] dow solutions help millions of people by helping to make gluten free bread that doesn't taste gluten free. together, the elements of science and the human element can solve anything solutionism. the new optimis charles: let's get right to the markets and talk to dan in chicago. dan, it looks like ben is going to do something with respect to printing some money this week. does anyone think it is going to do any good? >> that's a really good question. i think the expectation is that they are going to do something. that's true. i don't really understand what they think it is going to do, though. because realistically the ecb had to do something because they had to do something because

their borrowing costs were way too high and this will have a positive impact on that. with us our borrowing costs are still real low. the one obvious effect the ecb was trying to get we don't really have here nor do i think it will lower the borrowing costs. it will be interesting to see if it actually works. charles: it is interesting though because i guess you could argue at least it is working with the stock market because a lot of people are saying listen earnings don't necessarily justify where we are, corporate profits. it's been an amazing run. so some assets are maybe beginning to inflate which could be ben bernanke's ultimate goal to spark something of a wealth effect, so people start opening up their statements from their brokerage firm. they start to hear that the house is worth a little bit more. maybe that virtuous cycle begins. do you think that might be the mindset? >> well, i think that is the mindset. i'm not exactly sure that's going to work. i think that is the mindset. realistically the market is up 12 1/2% since the june lows and up 7 1/2% since the ecb first announced their bond buying

purchase idea. realistically that's a percent a week since they started doing this. the expectations have been very good for the market. the problem is and you have a steady stream of relatively negative economic fundamentals. today was the same. pad news out -- bad news out of china, italy. realistically we're slipping in the fundamentals. can we push up the market too much and could that cause a problem later is the real issue? charles: dan, we will find out. thanks a lot. we appreciate it. president obama is getting a nice bump in the polls following the dnc. gallup say ifs the election were held today, 47% of likely voters would pick president obama. 43% would go for mitt romney, that despite friday's dismal jobs report. our next guest is joining us now from the institute for public opinion. how do you explain this? was the convention that great, that eye opening that this is the reason for this? >> well, i think look the democrats had a better convention than the republicans in terms of a consistent message, at least through wednesday night with bill

clinton's speech. i'm not sure thursday with obama's speech contributed much to any momentum. so the campaign really returns back pretty much to the way it was with a slight advantage for president obama than it was before the two conventions. but the jobs report has an impact on this because, you know, although voters' views are somewhat burnt in already on the economy on both romney and obama, it is certainly i think limited the duration and the size of any bounce. i think we move on. the campaign now returns -- both campaigns to battling over the economy. charles: we have less than 60 days. will it come down in your mind then to just these -- to the debates and probably more than anything else the first debate? >> oh, i think the first debate will be absolutely critical, but let's not ignore the final jobs report that will occur on the friday before election day. because that will sort of set the final momentum, the final move. but the debates are going to be critical, particularly the first one on october 3rd.

and the question becomes you know from the romney side are you better off now than you were four years ago and from the obama said is the country better off now than it was four years ago? and that seems to be the real tension between these two campaigns and their messages about the economy. david: lee, how long does it usually take for job figures to sink into the calculations of these polls? is it instantaneous? will we have to wait for the polls that are done monday or tuesday or what? >> well, you know, i think the whole thing of the conventions and the job report will take some time. you know, people aren't necessarily bouncing back and forth. most voters already have picked sides so it is not a question of, you know, it comes out, 8.1, but not as much job creation as people had hoped, that doesn't move a lot of people but it does change the campaign dialogue. we move on from there. it sort of closes the chapter on the -- the conventions and as charles indicated moves ahead

now thinking about debates. >> it seems that we have gotten a little bit of a break on the attack ads, one side to the next, vice versa, back and forth. at least during the convention. how effective arehose from your polling? >> i mean, look, everybody says the negative ads, you know, they have had enough of them and all that. but they are effective. when you are talking about two campaigns, you know, want to keep the negatives -- the unfavorable scores high on your opponent. you know, obama obviously trying to make this a choice. mitt romney trying to make this a referendum on obama's failed leadership on the economy. so, you know, the ads do contribute to all that. at some point, probably the last weekend, we'll see the campaigns both go positive to try to talk to the american people about what they would do either president obama in a second term or the details that people have been calling on mitt romney to provide particularly on the economy. charles: that will be a moment one weekend before the election. all right. perhaps the biggest union fight

since the protest in madison wisconsin. the voters in michigan will decide whether union bosses can veto legislation? what? our favorite top union watchdog and works for a group in michigan and he's going to join us next.

ally bank. why they have a raise your rate cd. tonight our guest, thomas sargent. nobel laureate in economics, and one of the most cited economists in the world. professor sargent, can you tell me what cd rates will be in two years? no. if he can't, no one can. that's why ally has a raise your rate cd. ally bank. your money needs an ally. >> it's a flat day for the markets. right now the dow jones industrial average off 7 points.

there seems to be some internal conflict in the market over whether ben will or will not print money. many people are convinced though that he will. but with today's drop in gold, it seems that some are betting that he won't. the richest man in france wants to move to belgium. he wants dual citizenship. he's the head of a company which is behind louis vuitton. everyone assumes he's doing this because of the france president vows to raise tax rates to 75%. he denies it. lindsay lohan tweeted to president obama asking him to cut taxes for celebrities of people who think they are millionaire but really aren't. she's speaking out of self-interest. we will come back in 90 seconds to talk about that and more. i have the most commonype of atrial fibrillation, or afib. it's not caused by a heart valve problem.

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charles: it's our big story today, 25,000 chicago teachers are on strike. the union is strongly opposed to merit pay. joining us now is our next guest. vince, you know, listen you deal with unions all the time. this one, though, i think is dangerous for unions in general, but certainly the teachers union. david asman pointed out these guys are paid probably better or more than any other teachers in the country. they've been offered a 16% raise, and at the beginning of the school season, they would step out on a strike. this is dangerous for them, suspect it? -- isn't it?

>> they just put -- they denied 400,000 students a day of education and for what? they have already gotten concessions that would amount to a 16% pay increase, would cost the school district over 400 million dollars, a school district by the way which is over -- [speaking over each other]. charles: hold on one second. we have got something. do not go away. we have to put you on hold for one second. because we have to go on the campaign trail. we have got jeff flock and jeff flock has a very special guest with him, and we've got to get over to him right now. jeff flock from a ford plant in flat rock, michigan with a special guest. jeff? jeff: you are going to love this story charles because it is a story of success for ford, bringing jobs from mexico where they make the fusion now, they are going to make it here at the flat rock assembly plant. mark fields is with me here on the fox business network. big day for you. you have taken this plant over from mazda. it is a success story.

>> it is a great day for ford because we are opening basically the flat rock assembly plant. it is part of the ford manufacturing system. we had a great joint venture here with mazda for many years. and now it's a full ford plant. that's what we're celebrating today. jeff: you are strong enough to take it over yourself. not only make the mustang which you have been making here. that's the fusion right behind you there. they make it in mexico; correct? >> yes, and this is going to be the u.s. production home of the fusion because we expect a lot of demand. jeff: can you make this car as efficiently and cheaply here in the u.s. as you can in mexico? >> well, one of the reasons we are putting it here is we have got a great workforce here, dedicated to quality and between our plant here and also mexico, we think we're going to make a big -- [inaudible]. jeff: on the economy, how do you feel about it right now? who are you voting for for president by the way? >> the economy overall, the auto industry is coming off a good month, good fundamentals, growing every month, and the elections, well, we'll -- i will let that for all the political experts to talk about that. jeff: does it even matter to you? would you just like to have it over? >> we want to focus on building

great cars and trucks and bring them to customers. jeff: i tried. mark fields always good to see you. >> good to see you. jeff: thanks, man. let you go to all the other folks here. interesting look at this charles today, just got unveiled up there, flat rock assembly plant. it had mazda -- it was a joint venture with mazda, it is now all ford. there's good news in the auto patch. charles: mark fields answer about politicians makes him sound a little bit about a politician. the ford fusion is hot and that's a great story. thanks a lot jeff. we appreciate it. jeff: thanks. charles: we had to interrupt vincent. vincent, you were in the middle of discussing the chicago teachers strike. they were offered a whole bunch of money. they already make more than all the teachers in the country. it seems the main problem they don't want to be graded on merit. they don't want to have to be accountable for the progress of their students. >> that's right. it's teacher evaluations, that's the main sticking point. that's why they put 400,000

children -- denied them a day of school today. they have already gotten tons of money, tons of concessions. i mean they have an absolute sweetheart deal, a deal that the school district of chicago really can't afford right now. so really makes you scratch your head to figure out what are they doing? charles: there's a lot of people out there would who would love a job period and then 16% over four years. here's the next story, vincent, this debate up in michigan they are going to union bosses veto power over legislation? >> can you believe that? yeah, you are talking about probably the biggest fight since -- biggest labor fight since wisconsin. unions are trying -- are proposing an amendment to the constitution that would -- [inaudible]. essentially it would make government union contracts have the power of the constitution and therefore be allowed to supersede laws. basically every little constitutional bargaining session would turn into a mini constitutional convention.

charles: wow, absolutely amazing. you can't make this stuff up. we appreciate your time, vince. >> thanks for having me on. charles: okay. how important is israel to the business world? we have a prime example right here in the center of america commerce. that's next. hmm, it says here that cheerios helps lower cholesterol as part of a heart healthy diet. that's true. ...but you still have to go to the gym. ♪ the one and only, cheerios

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charles: israel is always a lightning rod politically. but it's also become crucial place for investing, especially in pharma and high-tech. adam shapiro is live at the innovate invest israel conference in manhattan. adam, newscorp chairman and our boss rupert murdoch is speaking to kick this event off, huh? adam: he did kick the event off. he did speak to the people who have gathered here. actually quoting from the book of isaiah israel a light unto all the nations. and also talking about that economically news corporation mr. murdoch said began investing in israel over 20 years ago and it's paid off tremendously for its satellite processes. but the other issue that mr. murdoch was talking about is kind of the theme that you will hear from different speakers here as to why invest in israel. it has to do with the economic potential, foreign direct investments from the united states, close to 11 billion dollars in 2011. mr. murdoch said that look the path to global competitiveness runs through israel. even quoted warren buffett who

said if you are going to the middle east to look for oil, you can skip for israel. if you are looking for brains, look no further. so coming up, we're going to be speaking with different people from israel today as to why you may want to consider investing in israel. for instance, we will speak with the chairman from israel natural gas. you can't invest directly in that company, but israel's on the verge of energy independence and exporting natural gas. they have partnered with british petroleum, noble energy. we're going to talk about the opportunities for an investor in that as well as israel no longer being dependent on gas supplies from egypt. that's been a very big political hot potato. also speak with the israeli finance minister about investment in israel. about the companies which have already started doing that. apple will be opening a research and development lab in israel come 2013. they are already there. microsoft. the the big names, cisco is there. intel is there. but you also have johnson & johnson, general electric, several very large companies already investing in israel. and we're going to talk with the

financial minister about tax policy, corporate tax rate charles of 12%. imagine that. charles: absolutely love it. by the way there's a whole lot of homegrown success stories there too. thanks a lot, adam. staying on israel, a lot of people are angry about that debacle at the dnc last week, jerusalem and some of the anti-hamas wording was taken out and then put back into the democratic platform. >> i'm going to read between the lines then. i think i got it. >> i think that we can state very clearly, regarding obama's policy he is not a friend of israel. you cannot be a friend of israel and to them not to build strong capital or not to do what they have to do to defend themselves. charles: you get the feelings the israelis are really mad at the president right now. >> displeased with the president. he was clear to say americans are friends to israel. you are talking about this thriving economy israel has. it's fascinating.

adam outlined it for us. don't forget about iran with the nuclear bomb just months away. i mean, breathing down israel's back. is the economy in israel strong enough so that they can go at it alone? charles: i don't know. taking jerusalem out and some anti-hamas language dovetails with some of the stuff that's gone on with benjamin netanyahu and the white house. david: but the president didn't know anything about it. charles: of course. highlight reel is next. [ male announcer ] let's say you need to take care of legal matters.

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charles: here it is, the highlight reel, roll it. >> every time you hear the bailout word, i cringe. >> oh look the government made money off of aig. the taxpayer prospered. charles: setting us up for another great bailout, another saving of gm. for all the talk of this wreckless behavior, i mean there's nothing to stop me. i i'm like the