going to bring in a piece of the new year countdown over times square. get ready. right now get ready for the willis report. we will see you tomorrow at 5:00 p.m. in. ♪ rich: hello, everyone. tonight on "the willis report," what will be the dominant story in 2014? a warm with the biggest impact on the economy and your money. they will tell you tonight. also, your new warning over credit and debit card fraud and new year's resolutions, why we make ann break them. we begin with the most consequential news stories for the new year, what will dominate the national conversation next year and hello will affect what is going on in your world, joining us tonight, by cali in

your friend, and the "wall street journal". i want to talk a little bit about the fed. will they keep their eye on inflation, how much, what is the risk? we assumed that the taper and will continue, but can they pull back or can they go in the of the direction? >> they absolutely can. they could decide to keep that taper on hold. if we start seeing the economy falter. increasing quantitative easing. they keep their eye on inflation. as a result that means that they could continue this stimulus going with the quantitative easing.

short-term interest rates very low for quite awhile. rich: looking to move the conversation toward unemployment insurance benefits, increasing the long-term. also looking at minimum wage. what can a real logistical accomplish? >> inequality, distract attention from obamacare. a big front page article. the poll extremely well. it is a relatively low intensity issue, as people are you going to lose jobs, the support goes way down. i don't think this issue has a magnitude of obamacare and the direct effect on people with

cancellations and higher premiums. rich: highlighted in issue, it seems like then move on to the next. >> of employment is tougher. they point to the poor state of the employment market, for five years after their session. it will be tough for republicans not to buckle on the one. rich: when you go beyond this, where do we go after these initial flights. after those are finished, where does congress turn next and the ministration to turn? >> a bit of a cognitive dissidence is a tough message to say the labor market is horrible. and there for we have to rate -- ways the minimum-wage.

the truth this it is a tough order right now and it accentuate its the failures of how the highlight his economic policy. there is some chance the you might get some deal on corporate tax reform might be open-minded for that. that will be the issue that dominates for the next year. and then we can continue to push for repeal. the democrats running for reelection. basically all in on obamacare. that creates a a real friction. rich: if obamacare in 2014 was not as bad as 2013, are they in a difficult position by next november? you remember is unlike

republicans are dead in the water because of the shut down. none of the anyone remembers. >> this is the political risks hammering home the problems with obamacare. it is still unpopular in the abstract and majority of voters. republicans may have traction. the website pucks their run the risk of losing that. rich: if things look better for obamacare that is good news for the democrats, we will go for it would put off for a year the mandates on employers. as we move closer to that date and the year progresses, i believe that businesses will

start pumping plans. the 5 million people who lost insurance this year, it could be timed to next year if employers start pushing people into these -- into the obamacare exchanges. >> we talked about some of the administrative changes that you and i have made throughout this year, what did they do next year? is there room for more administrative changes, and what could they be? >> they constantly stretch the bounds a possible. there's no reason to believe they will continue to do it next year. while steve is right, you do have read state democrats are very nervous and made a show of force and that the partial suspension of the individual mandate next year, and i think it may be politically vulnerable because it is a very opposition to be in to say one segment. it will apply to everyone else

who could not afford insurance up to this point. as democrats are on the firing line, those red state democrats in november. they have a real interest in getting as much political coverage as we can. rich: it starts january 1st. the coverage starts. the perception, with the administration is trying to say is that over 1 million people have gotten coverage. to we know what the back in system problems, the communication between the website and the insurance company if these insurance companies have the correct information and coverage is going. >> that is a big question. some percentages misstep. rita know how big a percentage. we also don't of the compooition of these people that have signed of so far. if it was a good story for the of ministration, a good mix of old and sick plus in grand healthier, we would presumably know about it. that tells me you are getting

the most motivated, older and sicker people which means the insurance people may be at risk in not working. >> i would jump in an ad, it is not just the back office issues on the other are not the end of the correct information to whether or not the customers, the patients know what they have bought and what their policies cover and don't cover. as you know, these policies a lot of hospitals and doctors are being excluded more and more. the game that they have coverage with they don't. >> you want to jump in? >> we have been talking about the politics of next year. the big unknown is obviously what will happen with this u.s. economy. i am pretty bullish. we could see three to 4 percent growth which is the big political eraser. a growth rate of over 3%.

things will look better for this administration. his approval rating will rise notwithstanding all of these problems with obamacare. and rosie but because of anything and we're doing in washington but i rosy about the economy because washington is not done much to bell which is good news for the private sector. american companies have a lot of money on the balance sheet. it. rich: well, that is a perfect segue. want to highlight once you get a next year taking more time off, more than 230 days not in congress. next year even more scheduled timeout because of the midterm election. the entire house is up for reelection. they will spend some time at home campaigning. the immediate better sales pitch. voters prefer cockroaches and technical back to congress

usually these polls finds americans dislike congress and like their congressman's to take it with a grain of salt. thank you much for joining us. still ahead, hackers starting your cell phone in 2014. a new report on the latest security threat. we will tell you about ransomware and what is. will the rally continue into 2014? that is ahead. ♪

♪ >> why don't we swap information ? >> it's a family name. a pretty well known bear hunter. >> here's my driver's license with my name. ♪ rich: that is how it happens. one of the number one weekend movies this year was also is

successful year friday thieves to hit millions of target shoppers over the christmas holidays. a new report says we can expect new types of attacks in 2014. with us now, scott montgomery. release the new report. the of all is as soon, my phone, pat, drug is safe. is it? >> it is interesting. we are now carrying a lot more high peak connected devices that we ever had before. we tend to treat them like that are desktop counterparts. it is a mistake. if you are connecting to someone's house but the you don't own, how the no that they're protecting the data?

the answer is, you don't. so i would say that the devices can be secured, but they're only as secure as the weakest link in the communication chain. rich: can your iphone get a virus? >> there is already know where -- malware. we talk about his bike. it is not that android is not necessarily secure. a great attacker and cyber criminal goes to where the interest is. there is so much interest in the android platform that people are developing malware specifically for that platform and one thing that we have seen in particular is called ransomware where the

attacker will hold your data hostage until you pay ransom. rich: how does that work? , steve have to pay to be your information back? >> is like a thing as to what you pay depends upon the value of the information that you pay for. if you have sensitive for critical information on your mobile device, then the ransomware author will ask for more. the way it they do that is by informing you through your device. hey, we are going to hold this data for ransom until you perry. here is now. rich: what is the best way to protect yourself? >> that's a great question. we cannot do security tasks on behalf of others. we cannot be have of ourselves. another point in the threat prediction report is about social media.

i think a lot of times people think that even because they're sharing something only with the private friend via a mechanism like facebook or twitter that there is going to be no public repetition. the moment you hit san doorpost, you begin to lose control over what happens the information. the same can be said about the critical information like account numbers, social security number, driver's license, birth date. the moment you hit post or send, you begin to lose control of that information. we can be more vigilant about where we post that information or about posting in at all. rich: when you think about the pc or a virus that you can get on a pc, are we seeing that type of movement toward devices, different types of malware, similar where they can steal your pass word and things like that? >> that is a great question. a lot more malware in the form

of the applications themselves. i would give you a functional example. people use social media in tandem with delivering malware. you may get an e-mail that says, you one youtube last night. let me assure you, you were not. but john q. average viewer is not. the attacker will use something titillating survey you will want to click on it. when you do will deliver something in the form of a malicious application or will change one of your existing applications into a malicious for asian of that. rich: thank you so much for joining is this evening. a much appreciated. coming up next, the market soared higher. what is the chance of another big year for stocks. the faa making a critical decision on gems -- drrnes. ♪ welcome back. how is everything?

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♪ rich: making your gerriwillis.com work for you in 2014 after a great run for stocks this year. what about next year? we have predictions that to the break. ♪

♪ rich: a fox business alert. a fiery train derailment which sent a fireball of smoke billowing into the air that appears to be the result of a train hitting crude oil hitting ed green car. the incident happened earlier this afternoon, and the smoke could be seen for miles. residents were told to stay in

their home as a precaution, no injuries reported. all stocks go higher or stall in 2014? joining yes, chief strategist. let's say i sat out 2014. >> the consensus has been it will be affected year. my base case is that we will be seven to 10% 30100 in the s&p. the united states is well on its path that energy independence.

the multiple could easily get to 18, 2100. rich: what drives the economy in 2014 and why? >> and not want to make that kind of prediction. 2014 will be as good as any other year for buying stocks as long as you buy good businesses and do not overpay. added that the that it is necessary to predict market direction. i think it is necessary to remain disciplined and not over pay. rich: how do you remain disciplined? you have o do some predicting. >> you don't have to do any predicting, not on the stock market. if you're spending time on the stock market, you're not spending time on what a good businesses. discipline means i refuse to overpay, buy something which is too expensive, i refuse to buy twitter for 65 times earnings when it makes no money.

rich: what are you looking at? >> the fact that this market has been driven by an improvement in sentiment. you will go down as having the biggest p/e multiple n.a. not recessionary year for half a century. that is huge. investors have to be wary because much of the move in the market over the past couple of years is not because corporate earnings have gone up, although they have made slow progress. is because people are willing to pay more for a dollar's worth of earnings. it is important to find good businesses that are selling at attractive prices. armature for this year is that very, very powerful and could last a lot longer. the thing that worked in 2014 pro we will in 2014.

rich: increasing to come up with population growth. >> of think it's coming. >> we have been exporting jobs for a couple of decades for a lot of reasons. not the least of which is we of the pro-growth tax policies in place. it will not fuel job growth. rich: it looks like corporate tax i will not give much in congress. >> i'm seeing something on both sides of the aisle. max bbucus being appointed to it china. seen by many as a way to kill tax but you're right.

>> it is important. we get down around amid low 20's we are a lot more competitive. and that capitol would flesh more into the united states. rich: what do you think about as far as without corporate tax reform, the think tax reform is really the type of catalyst that people say it is? >> well, it's a question of who knows for the average your out there that dividend is tax favored you can get long-term capital gains treatment which is

very important. rich: to you feel as the markets are concerned about the fed pulling back? the most interest rates will rise. how fast it happens, that is what the fed is trying to control. and elsie inflation on the horizon that will fuel the concerns. we have done the overall economy. still more to come, more advice for your money in the new year and what is the real reason behind the ears resolutions. why do we make the men break-in?

we will be back. ♪

the and we are me. he is allies. research editor and analyst and a principal cio. i want to talk with you first, dan. what you think about that? >> well, i don't like companies that don't make money. and i don't like companies that trade for exorbitant multiples of earnings when i really can't understand how they are worth that much. it is a profitable company and

when it trades for 50 or 60 times would make than a year, have have to scratch my head and how can it possibly be worth a spot. >> the thing that social media never get to a point where it's worth investing in a absolutely. and not in that business. in 2007 you might have been part of it. that would would eventually doxy. it was almost guaranteed to

happen within that space. there will be good business to do coming out of that and you can wait. you can afford to wait. you are looking? >> well, we believe the entry points are the greatest future way to determine this and we very much paid attention to the price we pay in the u.s. market, one area is the big information-technology companies and the ones that are selling at low multiples and the companies that have grown over time, but are now left for dead. these are the ibm and cisco's get these on the field, anywhere from eight to 12% and we think that this is a really good place to be looking. and sort of common sense.

these are trading in the market and yet order for the market to go forward from here, we need to have capital investment on the part of america. >> you are shaking your head on. >> these are legacy companies. out of ammunition. so talk to the division heads. they have nowhere delaunay can't cut costs any more. and i think that earnings will be flat for years to come. >> it is simple math. they have strong cash flow. the thing is over the last 10 years, their earnings have grown at double-digit rates and have been very friendly. during that time they have repositioned their assets and only 15% of their businesses, it 85% is from software and services and they will be a big surprise story over the next five to 10 years. >> i totally agree. ibm has had its ups and downs over the years. and they have been excellent acquirers of businesses.

they have written this rather brilliantly overall up to this point. and i really think that we should expect a very good surprise out of both of them and i totally agree. >> i'm not yet. i'd rather focus on the future. it's a growth industry and that's where i want to be. >> some of the top resolutions and why some of them are so hard to keep. and then, thousands of new laws and regulations are going into effect in just two days. single loco. ♪ single loco. ♪

rich: you make them and you break them. getting behind those failed new year's resolutions. and how many people actually go through with their new year's resoluttons? would you say that most people do or do not? >> most people do not follow through. but the idea of making resolutions is great. but if you don't have the follow-through, it really becomes words and a lot of disapppinted self blame. but if you haven't followed through today, tomorrow is a new day and you can get yourself back on track. >> some people are setting themselves off for failure. they say, okay, lose weight and get organized, and enjoy life to the fullest. stay fit and stay healthy. so many people pay for

memberships and they don't show up. it's not bad to fail? >> well, first of all you have to really be serious. you cannot just say that i'm going to do what i would like to do. someday i'm going to do it. you have to be serious and when i say this to people all the time, don't make 5000 resolutions cannot make to resolutions and write them down on a piece of paper in your own writing. and then you have to ask yourselves what are some of the things that i actually have to do to ensure that my resolutions are going to come about. you are self-monitoring yourself and if they are just things that we are going to talk about, they are going to go by the wayside within a couple of days. >> what are the best resolutions that are achievable and good for

people and should people shoot higher name high? should they be something ask women what is the best way to go about it? >> each person has to decide for herself what is really a priority. and as we were talking before we went on. so many people that i know and that i have known once upon love. like falling in love with the lottery. i will say to them, okay, what is your plan? what are you going to do this year in order to be able to meet mr. or mrs. right? are you going to go to book signings and museums or will you put yourself out there. and if you put yourself out there, you're going to increase the probability of hopefully

falling in love. but there has to be a plan and not just a plan of talk. >> it seems that most people have a plan of talk. and you really -- if you really have the motivation come he would have done it on june the third whatever you reached that. and it's arbitrary. >> you're absolutely right. and the idea of beginnings, it excites all of us. and this is a new day. tomorrow is going to be new year's eve. and so people are serious. they can achieve virtually anything. but there needs to be a plan of action. and then there has to be a commitment for the follow-through as well. >> so what is the most interesting resolution for new

year's that you have ever heard and the best success story? >> falling in love. what could be better than falling in love. and figuring out what is it that i need to do to meet someone special and of course everyone talks about losing weight and getting themselves in better physical health. so i say to them, what is your plan. and we don't necessarily need to join a gym in order to get ourselves in a good physical place. we are going to have to watch the cards and that means that we need to read the labels and we need to self monitor ourselves. and you have to be self disciplined. if you have too many goals, that is a sure recipe of that it is not going to happen for you. so take a couple of priority areas in your life. make this year the year of

action and follow through and commitment and it's amazing what you will achieve. rich: what is yours? >> well, i have art fallen in love. so that's working and continuing to improve everything. and i was absolutely destroyed by a 14-year-old woman. [laughter] >> i'm going to make a plan of follow-through. rich: thank you for joining us. okay, we mostly hear about celebrities misbehaving. today we will tell you about the celebrities who have been good this year. the top five celebrities of 2013. ryan lewis and contributions to the free and equal initiative. and number four, paul walker. and we are widely devoted to helping those with natural

disasters. a number three, beyoncé. she just dropped her new secret album and headline a concert for change this year. and wonder action raised over $2 million to help people living in poverty across africa nd the united kingdom in the most charitable celebrity is taylor swift. she tops the list for a second year for her contributions to charity here and at home and abroad. and up next, unique laws in the new year coming to a state or city near you. ♪ ♪ ♪

rich: from tanning beds to giving birth. the reach of government expands in 2014.

rich: a train collision sets oil rail cars ablaze. a plume of smoke rose above castleton, north dakota earlier this afternoon. the result of a train hitting the green car. several explosions were reported and residents were told to stay in their homes as a precaution. no injuries are reported as of yet. and there are several thousand new laws coming to pass. here with all the details is mr. shapiro. thank you for joining us this afternoon. the first question on all of this, is 2013 -- when it comes

to these laws, are we seeing this trend? >> there's a lot of states that enact this legislation will be going in the first of the next year and that is nothing new. and some of them are legislators grappling of what to do with new technologies and drones in illinois and the police use them for. and it's a mixed bag. rich: what about his illness is not disclosed by the lemon law for pets? >> well, it is creative. we would have to do a study to see which states have that and what effect that has on the treatment or the markets. but it sort of makes sense in

terms of consumer protections and preventing fraud. >> there is another one out of oregon, i believe, where a woman gets to keep the placenta after giving birth. it's like, hey, be my guest. but, you know, those are kind of just -- those are a comical and anecdotal type of thing in the things that really harm the public and harms society and prevent us exercising our rights and freedoms are occupational licensing and other types of private services or needing to have a license to braid hair or

be an interior designer and these laws do crop up from time to time. organizations like the cato institute fight against them. but they pop up and it's kind of like black a mole. these color colorful experimentations are very interesting. rich: what about the dc council commission? where would the technology fit in? especially now when it's everyone entering into areas of business that were usually reserved for places that were under the control of the local government. and i'm just saying up shop now. >> well, internet and smart phones enable and facilitate types of comments that were possible otherwise.

this is a way that the model works. and the existing services, which are a cartel, they feel threatened and just like a limited number of licenses, it helps keep prices artificially high and protectionist measures were beaten down this year and in some places there are restrictions against this and other types of consumer innovations that promote commerce and individual liberty. rich: what you think about the argument that we are under regulations and they are under less regulations? >> the solution is not to have this. have less regulations. rich: now it is time for the stories you are clicking on. keeping potential buyers out of the market.

in the second last trading day of the year. stocks ended mostly flat and the dow jones was up slightly, hitting a new record. the nasdaq was down just a fraction and so is the s&p 500. stock market on track in the late 1990s. 2014 will be the yeaa of the drones over american skies. the faa announcing six sites around the country will test the drones for wide commercial use in the military, many from amazon.com as well. in a private equity bidders. blackstone is investing $200 million. and those are some of the hot stories on fox business.com. we will be back with some final stories after the break.

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rich: finally tonight, if there is one area in which congress excels to make getting to the bottom of something. and just a few hours ago, demanding a congressional investigation and the data breach at target stores. and others in congress expressed anger among airline passengers. congressional committees held 1700 hearing this year, perhaps there will be fewer investigations next year as we mentioned. spending that extra time, saying that we need to continue investigating. that is ever tonight "willis report." thank you for joining us. i'm rich edson and for gerri willis. just with your recording device

and you can't catch us live. ♪ ♪ >> "the new york times" over a year later reignites the already debunked argument that an anti-islam video sparked the deadly benghazi terrorist attack. and today the state department jumped on board with approval that was whitewashed. i'm lori rothman in for lou dobbs. and the mako. ♪ ♪ lori: good evening, everyone. "the new york times" under fire. benghazi is said to have no connection on