ignore fact last bit of it doesn't fit his knowledge is astonishing to me. he kowtowed this deal we made and how we're better off yet americans don't feel safer and while these talking about this, we have not iranian regime holding on to our sailors. charles: neil cavuto, take away. neil: if you could work as a little harder i would get a little annoyed. thank you very much. about the markets in and out of session lows. oil and out of 13 year lows, add it up and get concerns about the recovery the president was pumping last night. a lot depends on how these candidates gathering here in charleston, south carolina, did big debate on the fox business network. how they portray what the president portrays? suffice it to say they do not see eye to eye when it comes to the pace of this recovery or whether it could be sputtering out. keep in mind on this young year

the dow is north of the 1100 points. some people say it is a correction that could easily move into a bear market territory. it is anyone's best, the former economic adviser to ronald reagan what he thinks republicans have to say to presented different image on how they would shepherd this suddenly rocky economy. what do they got to do? >> there are things you have to do to get a bull market and a strong economy, lower rate broadbased flat tax, spending restraints, minimal regulations, free trade. those are the key is. when i listened to obama last night i was very depressed hearing him say the economy is spectating, wonderful. we are 21 million jobs short of where we would be at the employment of the population of bill clinton, $10 million short of where we would be with george w. bush. those are serious bad numbers, there has been no recovery in this economy.

he says the health care of this country could never be better. than he says we are winning the war and i freed cuba and oil is great and isn't it wonderful we have free gas or whatever he said. these are all just misrepresentations in my view and what he does is says all the good things like we have better labor relations because of right to work, wants to have a minimal wage, all these ridiculous thing this, but i will be happy when the obama is over. he has the government answer for every one. nonstop. neil: i know what they're doing. i am kidding. you can wine and moan about me all you want. the fact of the matter is i shepherded a recovery, seen millions of new jobs, cut the

unemployment rate in half, can talk about the pace of this recovery. that is well and good but almost seems to be throwing it back at republicans, you deal with what i had to deal with coming in and tell me things are not markedly better. how do republicans get away from sounding like they are winding? how do they do that? is it tomorrow with the debate they have to do it? >> i don't know but this is the single worst recovery effort and the reason it is the worst recovery ever is what he has done. we would have a booming jumping economy if he had not put in a lot of these things the fact our facts, how they seem cheerful and bouncy and not whiny i don't know. that is why i am not running for president. i sound whiny. neil: we mentioned ronald reagan, you worked closely with him and reagan's appeal was he would find an upbeat positive way to portray new vision for america, new day for america, these are criticized for

criticizing each other. is the dominant theme tomorrow in those debates here. what will they have to do to close the deal? >> before reagan won denomination it was a very bitter debate going on on the republican primary in 1980. john anderson was so angry at ronald reagan that he actually ran as an independent in the general election. they were calling reagan all sorts of names. he is a good counterpuncher as well. he is perfectly good what they are doing now in this primary season. you line up behind a candidate and we go and take on the democrat. the policy prescriptions of prosperity in america once again. reagan was great at that but i go back and look at his speech and just give them. neil: good seeing you, thank you

very much. and and and renegade republicans, not that simple. they agree? >> i do agree. and there is a schism. of the goes with an establishment candidate they think it is a schism, on the foxbusiness.com web site talking about a potential bankruptcy and restructuring of the republican party into this nomination. whoever the nominee is, and the establishment people are going to be sore if it is trump and trump supporters will be superus for it is someone like marco

rubio or possibly bush or john kasich. neil: does the party comport itself well when nikki haley and the republican response also jumps on donald trump preference in him to extreme positions and language and divisive talk about the muslims of and all that. is the party building a bridge to those sides that really like what donald trump is saying and risking shooting himself in the foot. >> you may know this better than me. she worked on that with the republican national committee in assuming that she did, i don't think it was fair to donald trump. if that is for an independent editorial is asian, i think that is systemic of what is going on right now and i would say to the trump strategist if you are going to get the nomination try to build a bridge to her and other people like her in the party because you will need the entire party to win the presidential campaign. it is superhard for republicans have become president in the

united states, it has been ceded to the democrats, you got to wait your way through florida into states like north carolina, up into ohio, you are going to need the establishment part of the party to do that. neil: i will never doubt you when it comes to that but if i am donald trump thinking i pledge my allegiance to this, said i would stick out as a republican and these guys come back at me and did the radar, without naming me in a speech are you afraid he takes that and maybe says wait a minute, all is not nice under the tent? >> i think he is too smart for that, he has proven to be a brilliant strategist throughout this campaign and my guess is he will deal with it being benign, eric from was on the show this morning with maria bartiroma saying they thought comments were benign, that is a smart strategy for him then going ballistic on her and my guess is as he gets close its what he

thinks will be the nomination he has to reach out and create an olive branch but you are right. i can see why he would be sore at that. certainly this is an issue for the republican party. you have a civil war going on, we can't be in denial about it. neil: all right now, jamie wine scene is a good political reader and what issues could percolate or be dominant in the media debate tomorrow and one that came out of nowhere, literally in the last week or so is this whole issue as to whether ted cruz is an american citizen, ted cruz insists born to an american mother in canada citizenship is there and he has and fulfill the obligation. donald trump said you know, he is not natural born, maybe this should be adjudicated and senator john mccain, rand paul and a host of others saying we

are not so sure. how big a deal is this? how much is it cutting into ted cruz's momentum? >> trump thinks it is a big deal, two hours ago he tweeted he doesn't know how ted cruz can continue in the race with these questions hanging over his head. is uncertain how that is going to affect ted cruz specifically in iowa but we have seen in the recent des moines register poll 15% of respondents said it affected the way they fought ted cruz. focus group reported by an eyewall reporter said six of 27 people in the focus group said it could be a problem. those amounts like small numbers in the}depending whether they're leaning towards ted cruz or not they could make a difference. donald trump is not moving away from this issue as of now. neil: what is interesting, i can only posit that if the ted cruz were to survive it doesn't seem like the huge issue but i am no

lawyer but this has been settled, but maybe not, to provide an element of doubt that if you are on the line should it be ted cruz, donald trump, marco rubio, they are positing out there with all the question marks, democrats may take this to court, do you want to risk that? even though it might be much ado about nothing, just to provide an element of doubt, is that what is going on here? >> exactly right. they are trying to lay seeds of doubt in some of voters, it is too missy if he wins the nomination, the whole thing, republicans taken away from them through a lawsuit. i interviewed donald trump over the summer in august and asked about the time, whether he has concerns about the present eligible become he said he talked to all the lawyers and they have no problems anymore. only now when he emerges as a real threat in i was suddenly donald trump has concerns again so it seems convenient for donald trump to have these

concerns when he didn't have them several months ago. neil: none of them did originally became an issue when ted cruz was doing better in the polls but that is the way politics works. thank you very much. we should let you know, we were chatting here the house has gone ahead and approved that measure to toughen sanctions increase some, these tougher sanctions were put together prior to the iranians seizing ten of our navy sailors. they have been released and you can only imagine what the appetite would have been for more and tougher sanctions as a result of that. we are told to john kerry, secretary of state, the beginning wave of sanctions will be lifted, so there is one view from the administration and another from congress. i think they call that a fight. more after this.

>> i will take a behind-the-scenes at the big debate, special guest greg gut felt, don't miss it.

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liberty mutual insurance. neil: increase it was confusing 9 might have an unspoken, sanctions against iran, might have mentioned north korea, it was not my fault. it was mined any time i can blame a producer. a quick update on where this stands. how to get this sanction thing lifted. i want to get in on this issue of what to do with refugees, the president once again put syrian refugees once again front and center. who better to get into that,

lieutenant colonel alan west. and keep up the pressure, with north korea and the refugees. the administration does not want to get too tough yet. and that is that americans angry all over again. and remember when we heard about this iranian nuclear deal. any violation of provocation there would be immediate snack back sanctions. that was a false narrative. there is nothing like sanctions and the iranians knows this. they know what they do with the listing missiles tests which was not supposed happen for eight years, even the boarding and seizure of my two navy vessels,

there was no response from this administration. the iranians with the release of this video with sabers kneeling on these assault boats with their hands above their heads in the position of surrender they have an incredible high ground and we are not doing anything about it from this administration's perspective and we recently -- neil: what was weird about it is it had the uss pueblo field in the late 16s, they captured one of our ships and held on for months. this was settled very quickly, they were released, we don't know under what conditions, no apologies and we apparently admitted to getting in that space, i don't know what the details are but if we did wander there, the iranians justify doing what they did? >> these are the questions that i have. i found it unconscionable that both of the engines on both of these broke down.

if that were the case they should have issued a mayday warning and an aerial coverage to make sure they were not approached by an iranian missile -- vessel. we need to ask what are the rules of engagement the sailors had? i don't think it was necessary to allow themselves to be boarded by another nation and be put in that type of position. the most important concern i have is iran held those two assault craft for a little over 24 hours. what type of technology did they exploit, what type of lessons did they learn from our equipment to include our satellite communications because that is an even greater danger and threat as we move forward. neil: thank you very much. we have been telling you we had donald from pure about this whole thing, he kicked up some controversy about slapping the

chinese with big tariffs. we never made those remarks, then we got some pressure from the new york times, that is when he was meeting with the editorial board, he has since said he would be in favor of a much lower tariff. the fact is republicans are seizing on an opening here and one no doubt they will raise tomorrow night in the debate. if you didn't hear there's a big debate. it is where i am standing. not exactly where i am standing with that would be kind of weird because they would all be standing outside and it would be dark. i digress. the first debate of the new year and fox business is doing it and we are happy to be doing it, the fireworks are going to be starting a little early. stick around. tucson.

blew an amp.but good nights. sure,music's why we do this,but it's still our business. we spend days booking gigs, then we've gotta put in the miles to get there. but it's not without its perks. like seeing our album sales go through the roof enough to finally start paying meg's little brother- i mean,our new tour manager-with real,actual money. we run on quickbooks.that's how we own it. neil: what did the donald say and what did he mean the duties that he really never talked

about a 45% chinese good, only telling the new york times editorial board it was time to get tough on july and here come the new york times editorial board to release the transcript of said meeting with mr. trump to say he most certainly did say a 45% tariff on chinese goods to send the chinese a message. dialed that back a little bit, but jo lin kent, not sure how far he dial it back, what are you hearing? jo lin: check this out. he is trying to walk back that 45% tax on all chinese goods, obviously not great for the american consumer. he tried this on you and this is what he said yesterday. >> everyone focusing on china, they are saying -- >> i am just saying we have to take a tough stance on china. i don't even know where the 45% came from but i said that is the equivalent of what they have done with respect to their devaluations. 9 has to pay a price if they

don't start behaving. they are killing us on trade. jo lin: we know exactly where the 45% number came from. the new york times provided us at fox business with a transcript of trump with the editorial board. here is what he said. i would do a tax, let me tell you what the tax should be. the tax should be 45%. that would be a tax, and equivalent to the some of the kind of devaluations that they have done. cannot believe we haven't done this yet. soaked from is saying trade is the only leverage the u.s. economy has against china. economists across the board disagreeing with that statement and defeat the purpose, on the campaign trail jeb bush telling that not 45% at tax resulting economic retaliation because china imports of lot of soybeans

from iowa. neil: thank you. to ohio senator robb portman and what he makes of this. may be a smaller tariff but something to send the chinese a message, 45% is off the table. what is wrong with letting the chinese know we are not going to deal with these games you play? >> important we let the chinese know the we don't appreciate they not only devalued their currency but subsidized products and sell products below their costs. we have ways to deal with this under the laws that are currently in place and we should enforce the more aggressively. on the currency issue he raised an important one because that is not something where we should raise tariffs or otherwise enforce what are the rules, not just by us but the international monetary fund. as you know i am a former u.s. trade representative but i have taken a lead on currency in this

issue because it does affect trade and 45% -- neil: i note that, and i hear you on that, it might be mr. trump's sense that he went too far, you are backing john kasich in this presidential feels, is there some wisdom to what donald trump is saying in the big scheme of things that china is in the enviable position it is because we buy so much stuff from them, always on defense with china and maybe they should be reminded of that. >> no question. it is a very healthy trade relationship. it was indicated by number one purchaser of soybeans around the world but we got to be sure it is fair and a more level playing field is something we ought to insist on and use aggressively our anti-dumping and be sure they are not unfairly trading over a year subsidizing their stuff or selling it below cost and on currency we ought to make it part of trade. i do agree with that and do it

in a way that benefits both countries including our consumers and i think we can be tougher without going to a 45% tariff with no basis. neil: you have been supporting john kasich, he has an impressive track record and a lot of other governors would you agree or disagree with their accomplishments have had accomplishments. they have little to show for it in polls. what does he have to do to not be the next one to sector, stumbling or stumbling out of the race? >> john is my governor. i have known in 25 years, i have seen what he did in the u.s. congress where he pushed through the balanced budget back in the 1990s, first-time since neil armstrong walked on the moon and we had a balanced budget, having had one since. that is a good accomplishment and people want to know what you have actually done. as a voter i want to know that lizzie here on of rhetoric in political speeches but what has

he accomplished and the record in ohio is something -- neil: you told them what he accomplished. he has said what he accomplished and just like jeb bush told the world what he accomplished and chris christie tried to tell the world what he accomplished and it falls on deaf ears. >> i know more about the ohio story. it is not just in the past, it is going on right now. we have gone from 48 in job creation to top ten under john kasich and he did inherit this huge deficit, ted strickland left in a real mess and the cleanup, $8 billion deficit, unprecedented for ohio and the $2 billion surplus, you and talk in terms of what is happen now which is important too. there are other people with great accomplishments who are running, good presidents, a lot better than hillary clinton but john, coming from ohio i have seen it firsthand and people do care about that. neil: always good talking to you. >> good luck tomorrow night. your normal professional

hard-hitting questions. neil: keep your expectations low. i am kidding. always good seeing you. and again the senator--the two sides, you can talk to which other, nothing wrong with talking to each other. we told you what the president said last night. so the picture being at the debate and to counter what the president said but you have to come across as not being wined and negative and saying everything is pathetic and awful. that is a delicate balance, isn't it? how republicans can thread that.

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he's more hardcore. so your sleep goes from good to great to wow! only at a sleep number store... find the lowest prices of the season, going on now. save $600 on the #1 rated i8 bed. know better sleep with sleep number. >> you may have heard. you may have a ticket already. the powerball jackpot is one and a half billion dollars. if there is no winner tonight, there will be another lottery on saturday for $2 billion. i always think that is funny. maybe no one else does. all right. you have something about regulations, connell. what is going on?

connell: i don't even know what character you are doing. that is how bad that was. describing to be more money, more problems. period i do have something on regulations. thank you very much. let's see what obama had to say on that subject. here it is. >> i believe it is like our economy. i think they are our outdated are outdated regulations that need to be changed. there is refuge that needs to be done. >> it sounds like a good idea. one of the more popular lines last night. this president has been to the regulations for the better part of two terms. the federal register online. taking office in february 09.

new regulations added. the republicans all standing up. the republican predecessor was much better on the issue. 31,000 plus. any president, he or she, republican or democrat really starting to cut to the tape. >> 2 billion. >> dillion thing. you really have a ticket. >> well, you are on a need to know basis. [laughter] i like these people. i have one, apparently, for a whole group. if i win and i share with the group -- connell: you are out of here. neil: i want to go to the former minnesota governor. governor, i want to ask you, the

tip that for republicans is to focus on more themes. very much in the weeds on these issues. what do you think? you do the million-dollar jester. the pinky finger and thumb. you close the dog and hurt your hand. it is just the small pinky finger by your mouth. more people know what you are talking about i am trying to help you. thank you. >> i have not done that. thank you very much. >> you cannot see me because you do not have a monitor.

neil: i saw you. go ahead. [laughter] >> that sounds like doctor evil. >> keep us safe. getting a good paying job. the problem republicans have is they get into the weeds. if we are going to talk about growing good paying jobs, you should talk to the people that provide them. get the government off my back. more job opportunities. the details become glassy odd. absolutely, republican should be talking about a pro- job growth agenda. >> to your point, it is amazing. a man and woman, yes, taxes are important. we want them to be less than they are now. how difficult it makes their jobs.

>> set aside the big-company ceos. most of it comes from small and midsized companies. go talk to those entrepreneurs. they say get the government off my back. every time i turn around, there is a new rule, a new regulation. i want to be an entrepreneur. the president, when he first ran, going through the budget and getting rid of necessary expanding, he has never really done that. it is up to the republicans to identify those regulations and articulate them in a pro- economic growth way. neil: governor, you have always been a great guest. have you been able to do doctor evil, you would have been in the white house now. >> the doctor evil portrayal is the ticket.

i will consider that. >> a great sense of humor. >> austin powers. wayne's world. >> i do not think you can get into some of the others. really, i think it is a waste of time. governor, always good seeing you. hillary clinton is out with something that republicans say sound like doctor evil. she argued that it is only a little bit in their fair share. this seems like a moving target. it is moving again. live from charleston. the next big debate. we are here. join us after this. ♪

neil: all right. lots of differences. on the other side, democrats are fighting over who to tax and how much. how much they want to control spending. dagen mcdowell here to get the latest on hillary clinton's plan to target some very rich folks. dagen: i would not use the word fairy, neil. i a lot and new hampshire higher. what do you do. that is exactly what hillary clinton is proposing. we already know about this 4% surcharge. you are the know about the 30% on those people making more than

2 million. now, she wants to raise the estate tax. reduce the exemption. they would have to pay some state tax. why do we care about that? that money has already been taxed as income. she is the most changed in capital gains tax rules. their goal is about half a trillion dollars. ask yourself this. you go back to 2013. 400 wealthiest americans are paying the highest tax rate they have since the 1990s. how is that money been spent? you have wages that are not growing. household incomes that are not budging. the lowest it has been in about four years. that is the question. this is the ideological divide.

do you believe that the government knows how to spend your hard-earned money better than you do? i do not make a million dollars. i do not make 2 million. what if your kid ends up making that much money. again, is it the government? this is how southerners act. do not make us mad. >> we play scratch tickets that dismiss. [laughter] >> we have a great guy. every republican candidate wants to be his friend. i am sure it is because he is a great guy. nothing to do with the fact that he has a very thick wallet. stick around. you will meet him. ♪ hi.

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neil: every time i have foster freeze on. he is a power broker. he is very modest. even with his considerable wealth and considerable influence. a powerful connector in this party. row publications will be at tomorrow. back and forth among democrats. coming up with ways to raise more money. get more money. not so in cutting more money.

i always wonder if they extend the effort. we may be on our way. what do you think? >> it is not rich. let's make $28 million. for the 1%, that has kind of gone away. obviously, looking at ways to get higher taxes. a fair share argument. we lifted it again. with these medicare related health packs. now we are looking at it again. that is a moving target. it worries me. >> when you ask people of all economic levels, they believe a fair share. the whole idea of fairness really is not -- it is how you

use the rhetoric. why would we be better off if bill gates was making less than half the money? they pay a higher rate. a defined rate. you know what i'm saying. >> you are not going to like what i am going to say. a tax payment from the government. the microsoft products. apple. this goofy telephone. how many calories in an oatmeal it will tell me. neil: how many calories in my oatmeal. cr 32.

neil: you have some time on your hands. war on the rich. i think it would deliberately go if you are hillary clinton or bernie sanders. there they are. it is nothing about you, the common man. how do they answer that? >> i came out with $800. cut my hair. scrub the floors. so do kids close. a big moment. look at all the wealthy people. starting with very humble beginnings. >> there is definitely a populist divide here. the rich really go to the system and push this gap to the

extremes. he talks about the republicans holding the message of the job creator. he does poorly in iowa. then what? just one percentage point. low-fat milk. she was in iowa winner last go round. we do know that they moved on to the ted cruzandonald trumps. what do you do? >> let me tell you why donald trump is so successful. you go on a two-week vacation. you have two raccoons in your basement. you call the exterminator guy.

you don't care if he has alcohol on his breath. or if he has plumbers crack. [laughter] he is appealing to the idea that they just want the problem solved. the raccoons in the basement -- could you imagine? >> i mention to rick early on. he encouraged me to donate to other candidates. anyway. that is what he said. do you think you will go to you and say, i am sorry, it is time for you to move on. i think you will he will go for as long as he possibly can. carrying his own bad. i think rick -- neil: when was the last time you did that? neil: i am kidding.

always good to see you. lovely wife. >> i have a little secret. we have been married for 54 years. you have to keep romance in the relationship. she goes on. [laughter] charles: they give very much. continuing with coverage from beautiful charleston. next. ♪

neil: welcome, everybody. we are in charleston, south carolina. doing it about six weeks ago.

that now with a wider array of issues. here to get to how the candidates are preparing for that. if you were waiting for it and waiting for it, the top two as we head into the fox news debate. these two have been traveling with each other back and forth. that is kind of erupted. on the cruise side of things. the toughest attacks on donald trump. donald trump, i am quoting here, embodies new york values. donald seems to be getting a little rattled. trump fired back at an event in iowa. ted cruz's pro- ethanol. he also said that he had been courted by the millionaire class.

it goes back to an issue earlier today. hounding over the last seven or 10 days. the citizenship. donald trump set out this tweet a little while ago. sadly, there is no way that ted cruz can continue running in the republican primary unless he can you race doubt on eligibility. those two have been friendly over this cycle. there is a real friendship between marco rubio and jeb bush. bush has not held back either. jeb bush saying earlier today that there are leaders running to the challenge. there is also a rubio super pack.

it hit rubio for a fashion choice. ♪ ♪ >> rubio is here in south carolina. the criticism of him being a first-term senator. he has the experience and it is not his term to way. >> they are criticizing boots. i believe saying boots. [laughter] look at that. it puts me into shame. that seems silly.

keep in mind. these are friends. he is getting hit on fashion. it is certainly interesting pair. ripping me on my shoes. all right. what do you make of all of this? all of this other stuff. >> it seems to be getting a little silly. >> this is silly season right here. this is really making or breaking for some of these candidates. john kasich, chris christie, competing. there is not a lot of room between them. they really have to break out of the pack.

i cannot think he is comfortable doing this sort of stuff. everyone take a chill pill. we get close to a caucus or a primary. >> it is interesting. going after donald trump on the campaign trail. you have to super pack and remember they are not going to coordinate and go after rubio. we saw an earlier debate. he has been told by strategist to come after me. it is not working. right now, bush is trying to save his campaign. his supporters think that taking down rubio is the way to do that. it does risk making bush a little bit petty. running not that great of a campaign.

he says he is focused on his own campaign and also focusing his taxon trump. it just does not really bode well for the governor. neil: i think you are very young, but that was a great song. these boots are made for walking. [laughter] i know what they were trying to say. thank you very much. you are right. on that i

number one, number two, i don't think they are fair. the campaign only if you let sit. i do not think anybody takes it seriously. senator mccain was born outside of the united states. born in a territory in the united states.

where obama was born. none of it was raised in a timely fashion. no evidence that he is not a native born citizen. i think you talk about things like that when you cannot talk about issues. >> thank you very much. >> congratulations. neil: thank you very, very much. we look forward to it, senator. >> around the corner. oil in and out. this may come out tomorrow. some say it is a reflection. back at session lows. the dow down to 150 points. the dow has careened this year. closer to 1200 points.

very little dipping. into a bear market. more from charleston, south carolina, right after this. ♪

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>> he is to live currently doing this for political gain for seven years. why is everyone so mad at everyone. because of you. chair mac. >> that is senator rubio earlier

today. a fine line to talk about the divisive congress. in fact, he, according to the senator contributed it. you know, i was thinking marco rubio. he is certainly a very smooth debater. how does he sees on that skill? not only, maybe two smooth. two good. >> there was always that problem. it was really good here and you take that attitude where he is, because it is about that. that is a big issue. i wrote a piece in the "wall street journal." beginning in 2012. the only way the president could win if we divided the country.

that is when it really -- neil: you have been through administrations. it has been the case for some time. someone promises to stop it. george bush tried to stop it. >> somebody has to raise that as part of their narrative. part of their bigger message. you win or lose, i will rise above. i will talk about what we all believe in. criticizing where we are. someone who does, i will not make any attacks personal on my opponent. maybe that is too far. it is about what we agree about. he was trying to say about last night. one thing we all agree upon. how angry they are. that is the problem. how alienated they are from

washington. someone who spoke to them and said, yes, we can change that, which is what he was trying to do, rubio is the kind of person that has that skill. >> donald trump, comments about his language. he said that she is weak. asking for a hell of a lot of money. i am wondering if he is back at war. whether he would not have done that. started war with him. >> describing them. i like nikki haley's speech in general. i think that really scored highly. talking about charleston. that was great. making those references to trump.

looked, that speech was not just hers. it is probably -- neil: that is what donald trump is going to say. i do not like it. >> i have not heard that this morning. she said whether she wrote the speech or not. that is the question. >> is the message the same? >> there is one thing if it is her speech. if it was a speech that she was doing in reference would help the establishment. >> i talked about a great speech six or seven years ago. he wrote every single word. sometimes they don't. after your debate, do you finish

grilling them tomorrow? i will tell you. i will reveal this. looking at numbers for that. >> much better today than yesterday. yesterday, you are awful. >> sharp as a tack. >> all right. one of the best. i want to take a look at one of the markets that day. we have the stock in and out of session lows. a lot of it has to do with concerns that things are slowing down. developing big deals in the like. moving on to that $30 level. proving a real tough job. remember what they say. it gets below $30. good. more after this. ♪

at ally bank no branches equals great rates. it's a fact. kind of like reunions equal blatant lying. the company is actually doing really well on, on social media. oh that's interesting. i - i started social media. oh! it was my...baby.

neil: all right. he does not have anything about it. normally suspicious of characters like that. we are here to get his handle on what they have to talk about. going on chatting during the break. all the numbers that the economy is improving. the president is right about that. fielding that recovery. the job. the quality. and then this other that shows nine out of 10 american counties are not doing that well. they still have not recovered from the recession. they seem like whiners. how do they avoid that? >> you and i have talked in the past. the past year and a half or so. not focusing on the employment rate.

that really tells a story. >> right. exactly. it is a record low. >> that will require the republicans to come out with a proposal that drives business. it drives business investment. you have to deal with the corporate tax system. the problem, i think, so far, there is less concrete visible plans in the message. a lot of hyperbole in the message. the candidates have been up here. talking past the issue. it can sound like whining. the president last night talked about $2 gas. the study you referred to basically says, yes. the counties that are in energy states have done well. they will not do well for $2 gas. the economist would like you to think that that benefit in the other areas -- neil: i think when they talk

about tax cuts, they always frame and in a way. it sounds like that. let's say you are talking about that. i think you are better off with your money then the government is with your money. they do not do that, effectively. almost apologetic if they look at defending your rights. >> right. a big government. small government argument. it used to be an easy and clear message for republicans. they are scattered right now, frankly. it makes it even harder for them to be on message. the economy should be the one topic. the one issue that you can get clarity on. >> did donald trump declared that? >> i think that you have so many extremists in the party. that is the problem.

>> are you supporting any? >> i am underwhelmed. i would back probably the republican nominee against hillary clinton in this election? >> look. i have a lot of concerns about him. he tweets when, you know, macy's stock goes down. that just blows my mind. neil: it is always good seeing you. beautiful. beautiful area. >> welcome to charleston. neil: i want to tell you about my hotel. i digress. the former hostess ceo. we have a lot more after this. this may get to be a subject in the debate tomorrow night. we have had a rather official start to the new year. down here. a market well past correction territory. market averages. well into their market

territory. the s&p 500. two thirds of the stocks are at least 25%. more and more off their highs. what can they do. after this. ♪

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neil: all right. you could see what is going on with oil. it is slip-sliding away and so are markets here. jeff flock with the very latest. i think they're trying to find a floor and they can't i guess. what is going on? reporter: inventory report, neil, very bad. we were up almost a dollar. last trade up three cents. intraday, 10:30 when the inventory report came in and that's when it fell out of bed. but you know, we want to look for a reason to be positive about oil. are there reasons? yes. remember your interview with harold hamm, remember what he said? a lot of traders picking up on that. >> recently we got export ban lifted. we see a bright new future and basically making a market of choice here in the u.s. we have a tremendous industry ahead of us, tremendous opportunity for growth. we've doubled production in the past.

we can do it again. reporter: oil companies could be positive for job growth. aspen institute put out a study because of u.s. oil exports we could add 1.4 million jobs in industry. could reduce the federal budget deficit. they put out a report, because of oil export ban lifted potentially $1.4 billion in reduced federal spending thanks to increased revenues from drilling on federal lands, oil and gas leases. those could all be positive. you're looking for a reason to be an oil bull right now, and there is not too much of them out there, that is some ammunition for you, neil? neil: all right. thank you, jeff. very, very much. jeff flock in chicago. with me right now, is the guy very instrumental in getting the house to make sure that iran

lives up to an agreement that is still kind of specious but it doesn't get away with pulling any shenanigans. chairman royce has been applaud ing finance with iran terror financing act. congressman ed royce joins me now. what do you make of this? the fact that the administration effectively said sanctions will effectively be lifted. seems we're talking past each other. the parties talking past each other. seems we're doing that in the middle of iran doing wild things, including capture of 10 navy sailors as we're chatting. what do you want to do with iran right now given all these latest actions? >> what we want to do is hold the administration to the original argument we made. look, we disagree giving iran $100 billion plus. but the administration early on said, don't worry, we're not going to lift the sanctions on

their icbm program or for their support for terrorism. that will still be held in place. what we're saying right now we see you instead buckling to iran. we see you instead of pushing back, constantly backing down. we need more backbone out of the administration. what the administration should be saying -- neil: follow-through, sir, as you're talking, you know this better than i, that vote to sanction iran didn't happen, not a mater of whether the vote even happened, it didn't even get the chants to happen. apparently there was concern about why it all fell through but obviously there is a mess on house speaker paul ryan's hands. if it never does come up for a vote and administration is pushing to make sure that doesn't come up for a vote, then what? >> right. it will come up for a vote when we come back into session but the point that i want to make is this. you do not want to reward the

ayatollah now that he is developing and increasing his icbm program. there is only one reason to create and mass produce intercontinental ballistic missiles and that is to deliver a weapon on to another power. he is still saying death to america, death to israel. and at the same time in case there's any confusion on our part in terms of their intentions, they took another hostage a couple weeks ago. you saw the footage that iran released where they show our young sailors on the decks of those ships, their hands up behind their backs. they're on their knees. that is the footage they're putting out along with that threat and they're announcing that they have not only been successful in overthrowing the government of yemen, but they're going to overthrow the government of bahrain and of saudi arabia. this is the conduct as we speak in terms of what iran is doing and what the president should be doing is saying we're not going

to release to you $100 billion in relief right now. now the president hasn't come to his senses here on this issue but it is incumbent upon us to better educate our allies and public in terms of what's at stake because of what we've got if the region is expanding shia crescent which is a threat to the jordanians. we met with the king yesterday to speak with him about this. a threat frankly to israel and so forth. neil: all right, congressman, thank you very much for wading through this. again to the congressman's point, it is not that this bill has been rejected, they just didn't have the time, they pulled it because there was no vote in time parameters i guess to vote on this. they had to vacate the vote. which means i guess they will attempt to do this again but it is a clumsy start. we'll have much more after this.

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and seek immediate medical care for unexpected signs of bleeding, like unusual bruising. pradaxa may increase your bleeding risk if you're 75 or older, have kidney problems, stomach ulcers, a bleeding condition, or take certain medicines. side effects with pradaxa can include indigestion, stomach pain, upset or burning. don't just go with the flow. go with pradaxa, the only blood thinner that lowers your risk of stroke better than warfarin and has a specific reversal treatment. talk to your doctor about pradaxa today. reporter: so what is happening now the oil crisis is turning into a fiscal crisis and that is not wall street saying that. that is the energy department. we're talking state tax hikes may occur where the oil patch is suffering. alaska, north dakota, texas, oklahoma, west virginia, wyoming are the state has the energy

department is saying or are experiencing a fiscal crisis from the oil price plunge. oil prices are down 72% since mid 2014. already alaska is considering enacting after 35 years a state income tax. also oklahoma is declaring a revenue failure where the state may need to dip into rainy day funds to keep up state spending. we'll follow the story as the state tax crisis occurring in the oil patch in the united states. back to you, neil.

neil: we're off over 200 points as oil slipped into negative territory. this has built up a head of steam, up 13% for highs of the dow. don't hold to the exact percentage. takes 20% from your highs to get you into bear market territory. we're well into correction territory. broader market actions already visited that, including russell 2000 well into market territory, almost half, 2/3 of the s&p five hupp stocks are 25% or more off their highs. a big catalyst for this has been slip-sliding oil which some interpret to be indictment against the global recovery which ain't recovering. we have a big rubio donor joining us now, a big romney

donor. frank, i don't remember the markets volatility or very angst-ridden pace as we starting the year come up in the president's remarks last night. they might tomorrow in the big debate. should they? what do you think? >> well, certainly something that is on the mind of the average citizen but the president's comments last night didn't cover most of what american citizens are interested in. he kind of polished the apple a little bit, didn't he? he made it look a lot better than it really is. he gave a wonderful speech. that is all it was, a speech. i wish our reality would be reflected anywhere close to how he presented it. neil: you know, i had a chance to talk to a number of democrats while i've been here on air, off air, people can bemoan the volatile start of the year to the market, we're appreciably off the level at the time. meltdown when president obama

assumed office and we will continue to be. that is something they will pound again and again and what the president mentioned halving of unemployment rate tofy%. what do you think of that? >> there is a lot of people not even calculated in the field of unemployment, aren't there? as a businessman myself and as a proponent of supporting small business, anybody in the business world knows that regulations have increased dramatically. it is a lot more difficult to operate in this world today because of just the tremendous influx of regulations put upon us through various agencies by this administration. it makes it very difficult for him he really believes in the health of private market based on what he's done to these private markets it is hard to believe he really wants to support them. a lot that he doesn't understand about how to run a business. neil: well, all right, i won't get into particulars whether president is up to speed on that stuff. you think marco rubio is.

you could have selected anyone. of course they're knocking on your door. why rubio? >> hey, look, a lot has been said about why do people that have resources put their money behind candidates and what is all about that. first i'd like to say this. i don't see myself, i think you introduced me on your show as billionaire. i don't see myself as a billionaire. i'm a farm boy from -- neil: how about a guy with lots and lots of money. >> all right. i'm a farm boy, that is what it is today. i'm same boy i was growing up, milking cows by hand, chopping wood for my mother's cook stove. my dad made $300 a month working for railroad. i went to school, got education. now i have a business worth a few billion dollars according to analyst, yeah, i got, they will say i'm a billionaire, i'm the same farm kid i was. i'm the same guy. the reason i like marco rubio is

because that is who he is. he, yes he understands private markets. he grew up, his mom and dad grew up, he grew up with a mom and dad were struggling to make ends meet. he struggled to make ends meet. he made something out of his life. i support him because he is certainly one of the brightest or the brightest candidate out there. he is a, somebody who will bring this nation together. he, he understands things. not only is very bright. but he is able to articulate his message. listen to him, if he can get exposure he will be president of the united states. he will do a really good job. neil: does very well in these debates. pat caddel said he thinks he does best in the debate. he hasn't been able to close the deal. he has two people in front in national polls. talking about donald trump and ted cruz who might be fighting over this separate issue whether ted cruz is native-born american

be that as it may, marco rubio says it's a nonissue to him. are you worried that your candidate, senator rubio can punp in front of those two guys? >> if marco rubio was getting kind of press the frontrunner is getting he would be in front also. he will make tremendous advantages as he gets exposure in various states and gets out in front of people. that will develop. my job, i feel, as an american citizen that cares about, you know, i've been a great recipient of the american dream. and marco rubio is a proponent of keeping this nation healthy in a way that little guys like myself can get ahead in life. and i believe he is best equipped to do that. so i think as he gets his message out, people will see who he is. he will gain in the eyes of the average american. he is a champion of the little guy. and he is going to take care of -- neil: have you seen, have you

seen these jeb bush ads on him? the nancy sinatra flip-flopping ad with her songs? i love that nancy sinatra song but i don't know talking about his boots is the way to go? >> isn't that a classic? that's, you know, they have criticized his boots. i mean that is how good he is. there is not much to criticize about this man. neil: there you go. >> they're trying to folk fun at him. neil: i hear you. boots were fine for ace tin powers. >> immigration is right too. thank you. neil: always good he see you. frank vandersloot. when we come back charlie gasparino, donald trump, expecting a hit from the president of the united states. that happened. i don't think he expected the hit from one nikki haley in the republican response. he is responding right now. charlie next. month here.

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neil: you know i was always excited to come to charleston, south carolina, from the big debate and it isn't really fun and get rip-roaring having a great time until charlie gasparino is in town. he is in town and i'm loving it. charlie made notice of something we picked up on last night. one thing for the president of the united states zing donald trump and he is not liking it. no he is not. the republican establishment, even brass at rnc, they know if trump doesn't implode somehow, maybe the polls are not indicative of how people are going to vote, if this is just a fad, people still talk about

that, we'll see what happens. neil: six-month long fad. >> we have new hampshire where he is polling very well. if it is not they are actually talking about his role at the convention freaking out about it. what do i mean, freaking out? they're having discussions at top of rnc. you should ask reince priebus about this, this is perfect question, what happens, what do you think donald's role will be at the convention even if he loses? what they're internally conceding he will have to speak. he is probably going to have to get a good time. they're worried about whether he will curse or not during his convention speech. neil: like giving you a prime-time speech. >> you notice i'm not asking any of the questions. neil: why, peggy noonan wrote about this, what is just wrong embracing whatever popularity he has, focus on the positive here? obviously there is a concerted effort for the party, maybe they did run nikki haley's speech by, his impression, and fair one, i

pledged my loyalty to you and then you guys do this to me? >> he is winning according to the polls. they're going to have no choice. neil: he is obviously angry. he made note nikki haley took money from limine says that about everybody. they all did take money from him. i think gop establishment is in a very tough bind. they obviously don't want him to be president or their nominee. they, would rather have him than hillary. even if he polls, if he continues to do well and he doesn't win, he will have an impact on this party. he will speak at the convention. neil: rather than fear it, embrace it? >> if you notice the rnc is not really doing it. it is usually surrogates for the rnc. there is a little bit of difference between reince priebus, that is good question you should ask him and nikki haley. neil: do you think nikki haley's speech was run by or written by the party establishment? >> i think it was run by.

neil: i am making -- i don't think the establishment wants to do that, doesn't want to be caught doing that, doesn't think it is wise to do that. >> i think these guys coordinate a lot, yeah, yeah. this is like a fortune 500 company, the rnc establishment. used to having their way all the time. neil: they must look at late poll numbers that show he does beat hillary. >> and beats everybody else. their conundrum right now, even if he loses, does this guy have to be part of the show? remember, conventions are a show. neil: sure. >> they're actually talking about that right now, that he probably has to and he probably has to have a very, i don't know about prime time but a very -- neil: they get higher ratings. >> we get the ratings. they might -- neil: if they have a lot more people watching that convention. >> these guys are all these tight, i don't want to say the word, they're like, very guys worried about every aspect of that convention. it's a show. neil: let me ask you about the ted cruz stuff whether he a

citizen or not. is any of that resonating? one thing it was donald trump but then senator john mccain, rand paul, others, saying well, we don't know. they want to plant a seed of doubt. >> they don't like him either, the establishment, we should point out. those two guys hate. from a legal standpoint. i run it by lawyers. it doesn't matter. it is nothing. neil: but it is meant a plant a seat of doubt. >> ted cruz is doing well quietly. he has a lot of outside vote. he does two things as we said on your show about two or three weeks ago, "the times" point out he has compelling argument who bring out republicans who stay home in the past, missing republicans, we were first to report about that. "times" has it on page 1. he can attract voters. he get as lot of establishment money particularly in the south. he is a force to reckon with. so the establishment will hit him with everything they got. i make one other point. you are a diva. the world should know this. you made your staff scope out

whether the starbucks here has pumpkin spice lattes. neil: i did not? i did not. >> what? neil: you can't fathom that they love me. they love me. guys, how much do you love me? >> love you. neil: that wasn't forced at all. >> that was, that was drunk behind the bush. you gave him a beer before. neil: they just volunteered this no one does that for you. >> no one volunteers for you. neil: i like you. >> you're my only friend. neil: do you like gaspo. [booing] >> you're my only friend. who likes me? donald likes me. neil: of course he does. >> jeb bush likes me. i think. neil: should we go to starbucks after the show? at my same hotel. don't ask. long story. >> different rooms. different rooms. neil: he and i both scoped out gym. hated it. >> i got my speedo though. there is a pool. stuart: there is. oh, boy. censors are calling and legal

department is calling. what is going on? more from charles from south carolina. i told you things would get fun as soon as charlie arrived. so did the lawyers. stick around. ♪

neil: all right, we got a major selloff on the corner of wall and broad, down 234 points. if oil is slip sliding a way, it must be slip-sliding away for a reason, and one of the more popular reasons the economy is slowing down here and everywhere. that is what happens for a economy run on for a long time, 73, 74 months. maybe it is sputtering out and deadline is approaching and reaper is here. bulls say it is opposite, great buying opportunity. we're telling you for the guys

on wall and broad they do not see quite that way. i have a feeling that could be very big debate topic, trish regan. that and some other things. trish: i have feeling too. you and i should know. see you thursday knight. welcome to a special edition of "the intelligence report" live from charleston, south carolina. i'm trish regan. we have a day away from second fox business debate i will be hosting along with san doctor smith and neil cavuto and maria bartiromo tomorrow night at 6:00 p.m. the president is trying to reassure the nation that our economy is strong and our nation is secure. >> the united states of america is the most powerful nation on earth, period. [applause] period. it's not even close. trish: the president went on to down play the threat of isis and