tv FBN AM FOX Business September 30, 2016 5:00am-6:01am EDT
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nicole: breaking news this morning, investors increasingly nervous over the health of deutsche bank and concern that hedge funds are cutting down business. good morning, i'm nicole petallides. >> and i'm lea gabriel in for lauren simonetti. any any hi, lea. let's take a look at u.s. stock market futures. dow futures down 33, s&p down 4, nasdaq down about 12. nicole: as deutsche bank drops, we are seeing mayor averages abroad in germany down 1.1%
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incident dax doubt o down 1.3%. oil prices this morning are pulling back. 47.32 the barrel. >> world leaders including president obama in funeral of shimon peres. we will have the latest of that. nicole: transportation nightmare after a deadly crash in hoboken, new jersey. we will have the latest in the story. >> that's bad news for the new york yankees. bengals with 25 sacks of the quarterback. nicole: 5:01 a.m. in new york. friday september 30th, we welcome you to fbn:am, latest breaking news and what to expect on the day ahead. another day of losses on wall street as sell off drag down the
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give you a report that basically bloomberg printed out last night that about ten hedge funds that sue businesses of deutsche banks have moved or reduced financial exposures, okay. you mentioned yesterday off 6.7%. more than $11 and 50 cents. this morning we have seen the impact overflow here. the ftse down 81 points. so it really is a situation where, you know, this is the contagion that's affecting total global markets right now. >> germany said it won't bail out deutsche bank, do you expect this if things gets worse? >> it's got to. this to me is a lehman moment. nicole: there mean there's contagion then? >> yes, it is.
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when we had brexit -- nicole: greek exit. >> greek exit, the dax, ftse, the cac quarante and spanish and italian market were contagion or fear of contagion with those banks. now, that didn't really happen. this is something that is happening and one of thehings that we are looking at, angela merkel is really talking very tough here but angela merkel is skating on very thin ice as we have seen with the migration and immigration process, she's getting hammered right now. there's talk that she may not run for reelection. nicole: right. >> deutsche bank is affecting all of the global market right now. nicole: bill, thank you so much. for the short-term at least there's jeters on wall -- jitters around the world.
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leash to trade. thanks, bill. >> breaking news this morning, president obama is in gentlemen are you -- jerusalem and delivered one of the eulogies. >> i could not be more honored to be in jerusalem in the funeral of shimon peres that showed us that the heart was an idea. >> president, died early wednesday of complications following a stroke. he was 93 year's old. that peace process has, of course, since collapsed.
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nicole: thousands of people who used new jersey transit to get to work suspended after a train crashed into the station during the morning rush yesterday. in fact, killing a 31-year-old woman who was standing on the platform and injuring more than 100 people, the national transportation safety board is investigating the cause and the safety of the scene. >> the canopy of the building is on top of the controlling car and water has been leaking all day so there may be some structural challenge and weakness. additionally because of the age of the building, there is the possibility of asbestos, there are concerns of that as well. nicole: train's engineer has been released and cooperating with investigators, commutest should expect to use buses and other forms of transportation and plan to leave extra time for
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travel and also heavy crowds as well lea. >> it is official, nicole, hurricane matthew, fifth hurricane of atlantic hurricane of the season. wind gust of 89 miles per hour. matthew poses a danger to jamaica, eastern cuba and badge ooms. potential u.s. impact later next week still remains unclear. we will keep an eye on that. nicole: ceo of wells fargo grilled by members of the house panel over sales practices that included opening up of 2 million fake accounts, peter barnes has the latest. peter: john stumpf professed accountability after getting blasted in the senate last week. foregoing $41 million in stock bonuses giving up salary during internal board of directors investigation and won't get a bonus this year, but for lawmakers from both parties that's not enough.
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if the buck stops with you and you apologized and you also have to admit that criminal activity was going on in your bank, then you should be fired because it stops with you. >> again, congressman, the board has that power, and my energy right now to lead company forward. peter: wells fargo's troubles are far from over. >> we will make sure that those betrayed by wells fargo are not forgotten and on their behalf a committee has launched in-depth investigation, mr. stumpf of your bank's activities. today's hearing is just the beginning of the investigation. it is not the end. peter: wells fargo's problems got worse when federal regulators announced the bank is paying $24 million in fines and payments to settle allegations about auto loans it made the military service members and
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illegally repossessed ability 400 cars while some personnel were away on active duty. back to you in new york. nicole: thanks so much. for more on this congresswoman member of house financial services committee will be joining us right here on fbn:am later in the show. >> we are looking forward to that. now in the race to the white house with less than six weeks of presidential election, hillary clinton and donald trump intensifies attacks on each other. blake berman has the latest in washington. blake: donald trump and hillary clinton have somewhat been crossing paths. both have spent part of the last two days in new hampshire and iowa. early voting in iowa started thursday, there clinton implored supporters to get out to the polls and continued to control trump in the form of his recent foe mark cuban. at the debate the other night one of my well-known supporters mark cuban was there in the
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front row and he really, i think, unsettled my opponent. [laughter] >> but i will tell you, mark cuban is a real billionaire. blake: trump trouted out a phrase, he says clinton is button-paid for by special interest and would put oval office up for sale and cozy with wall street. message three words, follow the must be. >> everything that you need to know about hillary clinton sometimes referred to as crooked hillary can be understood with a simple but very important phrase, follow the money. blake: trump unveiled a new phrase, the fbi immunity 5 referring to the immunity deals handed out in the investigation into clinton's handling of classified material at the state department. trump added of clinton quoted here, they probably gave her immunity too. back to you in new york. >> all right, thank you, blake. hillary clinton will be campaigning in florida today.
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donald trump will be in michigan. nicole: let's get you caught up on global market action overnight that we have been watching overnight and in asia, only the shanghai composite in china gained a quarter of one percent. nikkei down one and a half. going right to europe where the deutsche bank story is front and center. now we are getting the worry. some of the hedge funds pulling cash, some of the positions there. those are running up and moving to record levels and looking at the german dax in particular down 1.1%. i will note that stocks are coming up off their lows, deutsche bank had been down 8% and then down 5%. right here at home dow futures are down 32. s&p futures down 4 and watching commodities close rally in oil on opec deal or possible deal, that has fizzled and we are now seeing oil down 54 cents at 47.29 the barrel as gold gains
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almost 4 bucks at 13.29 a troy ounce. >> coming out a abysmal year for hedge funds. we will tell you how barnies fits into the hench-fund picture. lady gaga's major gig, whether he explain. checng u.s. stock market futures ahead of the opening bell. lots of red on the board this morning, dow futures down 32, s&p down by 3 and a half, nasdaq down by 12. you're watching fbn:am, first look at morning markets and breaking news. stay with us.
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>> it is 5:15 a.m. here in new york. let's get you caught up on what's is happening now. concerns over the health of deutsche bank, germany's largest bank continue to rally. let's check u.s. stock market futures ahead of the opening bell. all red arrows on the board, dow downs futures down 31 points, s&p down by 4, nasdaq futures down by 13. in the meantime world leaders are gathering in israel to mourn death of shimon peres, president obama among the leaders attending the funeral. tens of thousands of commuters are waking up to a transportation nightmare in the northeast all following a deadly
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train crash in hoboken, new jersey. handles 50,000 travelers daily many head to go new york city. nicole: let's take a look at the headlines of today's edition of the wall street journal. hackers, in fact, army of cameras and dvr's for massive internet attacks, we are talking about security experts say hacking shows vulnerability of millions of smart devices in homes and in businesses connected to the internet. coca-cola to produce bottle dunken doughnuts coffee, long been dominated by joint venture between pepsco and starbucks. package delivery drones are likely years away from federal approval, aviation authorities and advisers say the technology to get the packages to the homes of the individuals including you and i won't really get don't
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until around the year 2020. let's keep an eye of shares nsp semiconductors. u.s. chip maker is in talks to buying in a deal worth more than $30 billion. taking a look at shares, closing up slightly yesterday and also cosk -- cosco warehouse club. that follows a move to switch away from american express to new deal with visa-branded credit cards. down over a percent. >> it is a different story when it comes to hedge fund. adam shapiro with details. adam: the numbers don't lie, hedge funds have been losing large amounts of money and this goes all the way back to 2009.
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s&p 500 running 6.2% but the 2.9 trillion hedge fund industry, each average return for the first half of this year is barely 3%. as a result hedge funds are cutting fees, the funds which are famous for the 2 and 20 pricing model have cut managing fees to average of 1.5% and their performance to an average of 17.6%. the industry was shocked monday when richard perry sent letter to investors announced plans to close but berry say it is fund's assets under management fell 60% in the last two years as investors withdrew funds. other firms facing hard times include europe's asset management which announced it would no longer charge
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management fee on new capital. returned 20% in investors in 2008, three straight years of losses and expect today pay $3 billion in redemptions, thank you. >> thank you to adam shapiro. nicole: thanks, adam. baltimore orioles tie but bad news for new york bankies. five sacks on the dolphins quarterback. also in football news. [music] nicole: she's not a football player but are rejoicing at the announcement of major gig. let's check out u.s. stock market futures, stocks under pressure and we are taking dow futures down 31, s&p down 3. people are greating spooked over
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this year's super bowl in california she is set to release new album joanna next month and fox will broadcast the super bowl. >> everyone is looking forward to that and her performer. now the world of sports, baltimore orioles climbing into a spot. 4-0. the new york yankees defeat boston red sox 5-1 completing a three-game sweep. red sox david ortiz given standing ovation, happened when he walk today home plate on final game in the bronx. the 40-year-old is retiring after this season. and in football aj green had 73 years, touchdown. 22-7 victory of miami boll fins. home quarterback was sacked 5
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times and canada beat team europe. the canadians won best of three finals 2-0. 16 consecutive wins on the international stage since losing to our team the u.s. at the 2010 vancouver olympics. nicole: in asia mostly down arrows, one exception shanghai composite in china gaining a quarter of 1% and then we have the nikkei down one and a half percent. hong kong down and kospi 1.2%. in europe stocks coming off lows. deutsche bank worries there. some funds have been pushing money out and some worry. we will talk to bill who will elaborate for us a little more. right now ftse down 1% and german dax down one and a quarter percent. financials are having down arrows this morning and watching the dow which is down 35 points
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right now and we are going to be watching obviously the month and numbers as well. looking at oil in the commodities oil down after a couple of days of rally at 47.18 a barrel. >> coming up world leaders gater in israel for funeral of shimon peres, we will have the details. stumpf gets slammed and we will talk to congresswoman carolyn. you're watching fbn:am, first look at morning markets and breaking news.
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nicole: breaking news this morning, investors increasingly nervous over the health of deutsche bank amid concerns that hedge funds are cutting back business with germany's largest bank. stock was down 8% in germany right now down about 5. good morning to you, i'm nicole petallides. >> and i'm lea gabriel in for lauren simonetti. futures are under pressure again today checking u.s. stock market futures ahead of the opening bill, all down arrows, dow futures down. nicole: we have arrows getting spooked from the deutsche bank story. in london 1% losses there. after two-day runup for oil now
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we are seeing pull back. 47.18. >> leaders gathering in israel for funeral of shimon peres. we will have the latest on that. nicole: tens of thousands of commuters are waking up to transportation nightmare after deadly trash in hoboken, new jersey, we will have the latest on that story. >> in sports baltimore tied but bad news for yankees. nicole: well, good morning, everybody, 5:31 a.m. in new york, friday september 30th, we welcome you to fbn:am, first look at markets and latest news and what to expect on a busy day ahead. another day of losses. more than 1% we should say. also weighing of investors mind the health of deutsche bank,
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hedge funds pulled billions of dollars and shares of deutsche bank had been down as much as 8% in europe this morning and for this year down about 40%. back once again is bill, head at learn to trade, bill, we talked with you earlier and you talked about not only deutsche bank but also the contagion that could happen. can you explain that a little more? >> as we mentioned earlier, the simple fact as we all know the person sitting next to you on the train has a cough, you come down with no, pneumonia and it was called brexit in those days, it looked like greece either would be thrown out or would leave the european union. at that time, okay, although the basic stock market was healthy the contingency, contagion, if you look at the spanish indices, italian indices, the dax, cac
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quarante and ftse the biggest losers at the time were the banks and same thing here now. all of a sudden this call is now -- cough is now pneumonia. >> how concerned are you about the stability of deutsche bank right now? >> very much so and i'm going to get technical here, okay. in the post lehman brothers situation before bank bailed out lloyds bank they are called contingent convertible bonds and if -- before it was bailed out by the bank of england in 2009 the lloyds bank were trading at 53 on the pounds, 20.23%.
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the deutsche bank bonds are yielding 15%. put this in context. so this is really going to be a situation. these bonds now will start affecting the regular bonds here which will put more pressure on the bank trying to raise capital. nicole: more pressure on the banks trying to raise capital. ceo has defending the bank saying they have liquidity and the like. we will see what happens today. beyond that, what are you telling investors as far as financials overall. we have the fed later this year in december, there were thoughts that they might raise rates, the whole financial sector, do you stay away from it? >> well, let's just go back, when began this year, was talking about four rate hike this is year. there were probably contingencies, growth in china,
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the oil price going to 100 and several other problems. nicole: and now? >> right now, believe me, if net yellen is not having nights with being hawkish, maybe because of the deutsche bank crisis now. nicole: all right, bill. >> what do you make how they're handling this? the head calling perception issue. >> i'm not going to get involved in politics. deutsche is having real problems right now and a situation where they will try to resolve it themselves but they do have the capital if need to survive the situation but germany, the european union must recapitalize the bank. they must. nicole: they have to step in. thank you so much. >> thank you. >> breaking news this morning, president obama in jerusalem today to attend the funeral of
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former israeli leader shimon peres, delivered one of the eulogies, take a listen. >> i could not be more honored to be in jerusalem to say fir -- fair well to my friend shimon peres who showed us that justice and hope at the heart. >> peres was israel's ninth president. he was 93 year's old. peres shares nobel peace prize. the peace has then collapsed. nicole: train service in and out of hoboken in new jersey has suspended during morning rush yesterday killing a 34-year-old
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woman who was standing on the platform also injuring more than 100 people. national transportation safety board is investigating the cause and also the safety of that scene. >> the canopy of the building is on top of the controlling car and water has been leaking all day so there may be some structural damage and weakness, additionally because of the age of the building there is the possibility of asbestos so there are concerns about that as well. nicole: ntsb says the train engineer has been released from the hospital and cooperating with investigators. commuters should expect to use buses and other forms of transportation today, plan to leaf extra travel time, anticipate heavy crowds. >> hurricane matthew has become the fifth hurricane of atlantic hurricane season. the hurricane is packing wind gusts of 89 miles per hour and
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sustained winds of 30 miles per hour. right now danger to jamaica, cuba and bahamas. we will be watching that. nicole: no doubt. the ceo of wells fargo grilled by members of the house panel over sales practices that included the opening of over 2 million fake accounts. peter barnes has the latest. peter: well, john stumpf processed accountability before lawmakers over phoney account scandal after getting blasted in the senate last week. foregoing $41 million in stock bonuses giving up salary and won't get a bonus this year but for lawmakers from both parties that's not enough. >> if the buck stops with you as you came out here and said, i apologized, the buck stops with me and you have to admit that criminal was going on in your bank, then you should be fired because it stops with you. >> again, congressman, the board
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has that power, and my energy right now is to lead the company forward. peter: congress is making clear despite $185 million in funds wells fargo's troubles are far from over. we will make sure those betrayed by wells fargo are not forgotten and on their behalf that committee has launched in-depth investigation, mr. trumpf of your bank's activities and let me be clear, today's hearing is just the beginning of our investigation, it is not the end. peter: wells fargo's problems got worse when regulators announced the bank is paying $24 million in fines and payments to settle allegations about auto loans it made the military service members and i legally reprocessed about 400 cars while some personnel were away on active duty. back to you in new york. nicole: thank you peter barnes, congresswoman, a member of the committee will be joining us
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right here in fbn:am in a few minutes. >> in less than six weeks to presidential election donald trump and hillary clinton intensifying attacks on each other. blake berman has the latest from washington. blake. blake: donald trump and hillary clinton have somewhat been crossing path. both spent days in new hampshire and iowa, early voting in iowa started thursday. there clinton implored supporters to get out to the polls and continued to control trump in the form of his recent foe, mark cuban. at the debate the other night one of my well-known sporters mark cuban was there in the front row and he really, i think, unsettled my opponent. [laughter] >> but i will tell you, mark cuban is a real billionaire. blake: in new hampshire trump trotted out a phrase he has just brought up, clinton is bought
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and paid for and would put oval office for sale. his message three words, follow the money. >> everything you need to know about hillary clinton, sometimes referred to as crooked hillary, can be understood with a simple but very important phrase, follow the money. blake: trump unveiled a new phrase the fbi immunity 5 referring to the immunity deal handed out into clinton's handling of classified material at the state department. trump adding of clinton quoted here, they probably gave her immunity too. back to you in new york. >> thank you, blake. hillary clinton will be campaigning in florida today. donald trump will be in michigan. nicole: we are countg down. let's get you caught up in global market action overnight, in asia shanghai composite up a quarter of 1%. the nikkei to the downside -- i'm sorry down one and a half
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percent. hong kong down 1.9% and kospi dropped as well. deutsche bank close to 5% as we speak under pressure taking financials along with it. german down 1%. cac quarante down and london ftse down 1% and right here at home u.s. stocks are coming under some pressure here as we are wrapping up the month of september, dow futures down 17, s&p futures down 2. checking commodities, we did have oil rallying on opec deal but today giving some of that back. gold gained 5 bucks and here is how the dollar is against the other key currencies, watching the u.s. greenback against the yen, the pound and the euro and, in fact, we are seeing strength in the greenback as all the currencies are dropping. the 10-year treasury yield, yield drop in last trading days and hovering around 1.55% roughly. wells fargo ceo john stumpf faced another day of grilling by
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u.s. lawmakers over growing scandal at the bank. stumpif testified yesterday among those asking key questions with carolyn maloney. >> did you dump the stock after you found out about the fraudulent accounts because it seems that the timing is very, very suspicious and it raises serious questions? >> i didn't, i did not sell shares at the time because anything related to -- >> but your forms say you did sell shares. >> today i share four times as many shares as required. >> did you sell the shares or not? >> i sold those shares and with proper approvals with no view about anything that was going on with sales practices or anything else. nicole: joining us now by telephone congressman carolyn, good morning to you, we are so
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happy for you to join us this morning. so what are you hearing and what did you learn from yesterday? >> well, i've learn that had the -- the investigation is ongoing, the justice department has started an investigation and three states, federal agents have started it in north carolina and i think it's in north carolina and new york and i believe new jersey but in the event, there will be more hearings. one question that i ask mr. stumpf for which i didn't get a clear answer is he has said that he will go back to 2009 to review all of the account and to make the customers of wells fargo whole if in anyway their accounts were abused. in the senate last week he had to go to 2011 and graciously extended the review before 29
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but refuse td -- refused to commit to extended it back further but when i presented it with evidence that wells fargo was endangered in some of the illegal practices prior to 2009 he still didn't clearly commit whether he would go back to 2007 or before whenever any illegal evidence was presented. so today i'm going to be writing him and trying to get a clarification because i submitted to the record a court case in montana where six employees were fired and according to court documents the illegal activities that they were fired for doing which they say they were ordered to do went back to 2008. so we need to clarify that. i think the hearing, nicole, brought more questions than answers but i want to make clear that this is not a threat to the safety and soundness of our important financial system.
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>> congresswoman, for many about accountability in terms of how back they would go. they would leave no stone unturn and make it right for customers. it sounds that you weren't quite satisfied with that answer. let's talk about the stock selloff. he has morn four times the shares required, what's your response to that? >> well, i -- i submitted information that in reading documents my office and i found is really something for law enforcement and others to review. to me wells fargo is and was a great company. it has a lot of great people that worked there. it was one of my favorite companies. i am upset about allegations and quite frankly i thought mr. stumpf's answer was affirmative that they would go back to wherever they found it but when the press covered it,
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they said he didn't, that's why i feel like i have to write the letter. nicole: you want to get clarity. i want to jump in here. i don't have much time. you talked about stock selloff calling it suspicious because there were complaints at the time and there was something that he also going forward, is this a wells fargo problem, how should shareholders, investors, americans, how worried should they be about what they are seeing there? >> it's not a threat to the financial system as the downturn in 2008, to the overall but it is an abuse, a very serious abuse of customers. i am stunned that customers could not count on their account being protected, what i don't understand how they got away with it in the first place. it's clearly illegal. why didn't they have reviewer oversight to make sure that the accounts of customers were protected and one of the biggest abuse that i'm hearing from the
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people that i have the privilege of representing is the danger or the credit scores because when they took out credit cards and they didn't pay fines and fees, lowered their credit scores and that's a danger. main point is you don't want this to happen again. you want to make people whole gain, you want to understand how in the world it happened in the first place and i don't know how you correct it if the law clearly states it's illegal to do in the first place. >> congresswoman maloney, going back to the question of accountability, do you think that mr. stumpf needs to resign and what would that do with the stability of the bank? >> i'm sure the bank has a deep, deep, deep leadership group but personally i think he should resign. i think the credibility of the
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-- of the bank is severely damaged. we are not talking about an isolated case, we are talking about an alleged 2 million false accounts, false accounts that were created from their existing customers and that hurt their existing customers. now there was a lawsuit filed recently and a number of lawsuits coming in from their employees saying they were forced to do illegal activity. nicole: i want to move over to something else. there were those who did illegal activities and some forced to do illegal activity and those who were honest. now we are hearing about deutsche bank abroad. any thoughts on deutsche bank and we have been seeing the stocks to the downside, worries about liquidity? >> i don't know. i was very focused all day yesterday -- nicole: of course. >> on the hearing we had.
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we were in recess. we all stayed for this wells fargo hearing. it was important. it was shocking not only to their customers but also the entire country that that type of abuse took place and so widespread. nicole: representative carolyn maloney, thank you for dedication to americans and putting in the time to ask the key questions. thank you carolyn maloney. >> thank you. >> coming up in baltimore the orioles tie up the wild card race but that's bad news for the new york yankees. in football cincinnati bengals with 5 sacks of the dolphins quarterback. in football news we will have more. [music] >> lady gaga little monsters rejoicing on announcement of major gig.
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lady gaga was picked for half time show. the grammy winner will take the stage on february 5th in houston. lady gaga sang the national anthem at this year's super bowl so beautifully in california, she's set to release new album joanna next month. >> now let's take a look at the latest of the world of sports. baltimore climbing into a tie in wild card race with only three games left. orioles beat the blue jays. but with baltimore in victory the new york yankees have been eliminated from playoff contention. meanwhile red sox star david ortiz giving a standing ovation by fans at yankee stadium. it happened when he walked home plate to if i believe day at bat. in football aj green had ten catches and a touchdown. the cincinnati bengals to
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victory of the miami dolphins. sacked 5 times and hit eight times and in hockey canada beat team europe to win hockey. canadians won the best of three finals 2-0. nicole: let's get you caught up in global market action overnight in asia we have seen worries of deutsche bank weighing on asian stocks in nikkei in particular. so it's been mostly down arrows there as well as in europe and here in the u.s. now here are the questions, we asked you yesterday, do you still own a blackberry. >> you wished you did. nicole: i sure do. i don't but the new blackberry which runs on android is promising. jim from florida said they still make blackberries, thanks for sharing our thoights, --
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>> happy friday and thanks for joining us here at fbn:am. nicole: to take you through the next several hours mornings with maria is beginning right now where maria bartiromo certainly taking a look at those bank stocks, deutsche bank and wells fargo. maria: thank you so much. good morning, everybody, happy friday. i'm maria bartiromo and it is friday september 30th, here your top stories 6:00 a.m. on the east coast. the nu tsb on the scene of the deadly train crash in hoboken,
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new jersey that killed a young mother and injured over 100 commuters. we have the latest this morning on the investigation as well as the debates of costly train control system. remembering shimon peres, president obama and leaders from around the world attending the funeral of the former israeli president and nobel peace prize. we will take you to juries lem this mourning. stomping for voting hillary clinton where he was behind in michigan. clinton will hit in swing state of florida. >> hillary clinton has received $100 million in contributions from wall street and hedge funds. she and bill were paid $150 million for speeches and if she ever got the chance, she would put the oval office up for sale. >> one of the things that we have found
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