senate. that is it for us tonight and we thank you for being with us. executive director of frontier service group, eric prince, david and gop nevada chair amy and the pastor among our guests. if we don't make a deal with congress, most likely i will do that. i would actually say i would. i can't imagine any reason why not. because i'm allowed to do it. cheryl: president trump doubling down on his power to declare a national emergency at our southern border. we'll tell you where he may pull billions of dollars from to pay for it. it's not mexico. lauren: investors were reassured as jay powell spoke about a strong economy. futures not doing too much, futures up by 15, nasdaq futures relatively flat. cheryl: oil prices up for the tenth straight day, about to tie the longest winning streak ever.

we're up by nearly 1%, $53.11 on the contract. lauren: in europe, stocks opened higher and investors watch a vote on britain's plan to leave the european union, that may fail. cheryl: there's green mostly in asia. nikkei is up nearly 1%. decent day there. cheryl: on the heels of saying iphone sales in china are weak, apple may have some scratching their heads. "fbn: a.m." starts right now. cheryl: it is 5:01 a.m. in new york. it's friday, january 11th. good morning, i' cheryl casone. tracee: i'm tracee carrasco. cheryl: a lot of investors are thinking you're what? tracee: is that the right move,

apple. cheryl: good morning, tracee. great to have you here. breaking news this morning, president trump is moving closer now to declaring a national emergency to build a border wall. he toured the border and he spoke exclusively to fox zeus the law is very clear. we have the absolute right to declare a national emergency. this is security stuff this is a national emergency. tracee: the president will host a round table discussion on border security this afternoon. blake berman is at the white house with more. >> reporter: complete state stae in washington, d.c. thursday president trump took his message to the southern border. he visited a border town in texas, speaking with law enforcement. he says he continues to weigh obtaining broader wall funding by declaring a national manage saint says his lawyers have told him he can do it. >> if we declare a national emergency, we have a tremendous

amount of funds, tremendous. if we want to do that, if we want to go that route. again, there is no reason why we can't come to a deal but you have another side that doesn't care about border security, the democrats which i've been saying all along, they don't give a damn about crime. >> reporter: that would face legal scrutiny. today, 800,000 federal workers will miss their first paycheck and democrats say i the presidet is to blame. >> the president is treating these hard-working workers as pawns, to extract 45* billion $n from american taxpayers. >> reporter: the president announcing thursday that he will skip his visit to the upcoming world economic forum in switzerland because of the partial government shutdown. back to you in new york. cheryl: well, today is the

first day about 800,000 federal employees will not receive a paycheck. but some relief may be on the horizon. the senate passed a bill yesterday to provide back pay to federal workers when the government shutdown finally ends. tracee: some businesses are offering relief to those workers including free meals, discounts and zero interest loans. at&t said it will waive late fees. bank of america is offering personalized financial assistance and many restaurants in the d.c. area are giving away free meals. cheryl: well, now to trade negotiations. chinese president's xi jinping top trade aide is set to visit washington for more talks. steven mnuchin said the government shutdown will not delay the plan. >> the current intent is that the vice premier will most likely come and visit us later in the month and i would expect that the government shutdown would have no impact.

we will continue with those meetings, just as we sent a delegation to chai. cheryl: officials say the higher level talks are scheduled for january 30th and january 31st. tracee: federal reserve chairman jay powell reassuring investors once again that the central bank is flexible and moving slowly when it comes to raising interest rates. cheryl: we get more now from our very own edward lawrence. >> reporter: good morning, cheryl and tracee. the market listened as the federal reserve chairman spoke. his message meant to calm volatility. he signaled a possible pause in rate hikes to let the economy grow. >> the good thing is, we're in a place we can be patient and flexible and wait and see what does evolve. we're waiting and watching. >> reporter: powell outlined the strength of the u.s. economy with unemployment under 4% and inflation just around their 2% target. his view on the biggest threat to our economy comes from outside influences. powell wants to see how the global economic slowdown will impact the u.s.

at the moment, it's not, but powell acknowledged it makes the markets very nervous. >> we see the financial markets expressing a view of concern about downside risks, really associated with global growth and with trade. so how do we put those two different signals together? i think we're actually in a good place. >> reporter: this was a signal that the federal reserve has seen the volatility and wants to reassure the market they will adapt monetary mo policy going forward, including unwinding the balance sheet. he said he will not turn down an ini have station to meet the president trump and added a short-term government shutdown will not impact the economy. if the shutdown lasts long-term it will show quickly in economic data, affecting the data the fed uses to set the policy wit poli. the fed may not get gdp and retail sales numbers that it needs. cheryl: taking a look at shares of macy's, the stock posting the

biggest one day loss ever yesterday at the company slashed profit and sales forecast because of weaker sales in mid-december. holiday shopping time. sales didn't pick up again until the week of christmas. macy's plunging nearly 18% in yesterday's trading. shares of kohl's falling nearly 5% after reporting a slowdown in holiday sales growth. l brands said same store sales in december were flat from a year ago. tracee: we'll talk more about that later. breaking news this morning, an official in poland said a huawei executive has been arrested there on suspicion of espionage. polish state tv says the chinese man is a director at huawei in poland. he is one of two suspects who have been taken into custody. they could face up to 10 years in prison. cheryl: former nissan chairman carlos ghosn indicted on two additional charges on financial misconduct overnight.

this brings the number of charges against him to three. he had already been charged for underreporting earnings by $46 million. he's been in detention in tokyo since back in november. his lawyer says the 64-year-old had a fever but he's now feeling better. tracee: breaking news this morning, apple reportedly planning to introduce three new lcd iphones this fall, despite the struggling 10r sales. the wall street journal says apple will unveil new camera features including a triple rear camera for the highest end model. apple is speaking with l cd this year but is considering dropping the lcd models next year. cheryl: federal reserve chairman jay powell offering more reassuring words to investors on interest rate hikes this year during comments at the economy club of washington, d.c. powell says he is concerned about rising u.s. debt. >> i'm very worried about it.

from the fed's standpoint, we're really looking at a business cycle kind of length, that's our frame of reference. it's a long run issue that we definitely need to face and ultimately will have no choice but to face. cheryl: mark hepensal joins us now with his thoughts on these comments. he did seem to kind of ease market fears, that, look, they are going to be data dependent and the they are going to take more of a doveish stance on interest rate hikes for 2019. did you like what you heard from the fed chair? >> well, the commentary yesterday from fed chair powell was different than the talk that he gave post the december fomc press conference. so, yes, that was much more market-friendly language coming out of federal reserve chairman jerome powell yesterday. he did emphasize the gradual and patient yesterday which to me is code for the fact that he's going to take a pause with rate hikes moving ahead after five consecutive quarters of rate hikes. so yes, much more

market-friendly behavior from jerome powell yesterday and so the markets have reacted favorably as a result. cheryl: he is being criticized by some market watchers, analysts and even editorial pages and financial newspapers tore being a bit of a flip-flopper. he's new to the job. do you think he's struggling to kind of get his messaging out to the market? >> well, he did admit yesterday at the beginning of the interview that he really needed to work on his communication skills, as chair of the federal reserve. i think he's in the process of trying to work on those communication skills. i think the performance at the december fomc press conference did throw a curve ball to the markets as i expected no expecte itch commentary amid uncertainty in the global economy china in particular. i think in some ways he is learning on the job.

cheryl: i guess that happens to everybody. i want to read comments from one of our contributors here, gary, on fox business. he kind of said -- he goes there were a lot of questions a that weren't asked yesterday, he said it was too cutesy of an interview. he said there's nothing cute about $22 trillion in debt. he said this is a balance sheet that's being tightened if you will and unwound, that's got real assets behind it, -- that's got no real assets about it. do you agree? >> well, i think david rieu rubenstein did touch on some soft subjects like why he goes by jay as opposed to jerome powell. but there are some tough questions that i think he did answer yesterday. so i think it is a balancing act and i think david did try to make the fed chair reasonably comfortable during the interview yesterday. there are some tough longer term

questions that are resulting from an extended period of monetary accommodation and if you look at some of the challenges across the eurozone where negative interest rate policies are still in place, more than $8 trillion of bonds with negative interest rates, they're now in the midst of having to pull back on that policy as economies are slowing, especially in germany, which was one of the you few bright spots for the eurozone economy. cheryl: sha is somethin that t gary brought up as well, we need to look at the fact we have a global market slowdown. what is normalization? are we going to get normalization? that question not asked by david rubenstein. maybe we'll get another chance. mark, it was great to have you on the show this morning. appreciate it. tracee: can we get six days of gains this week? let's take a look at how u.s. futures are shaping up this morning. dow futures unchanged, s&p, nasdaq down just slightly. are we headed to a new retailize age after macy's holiday blues sent other retail stocks

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tracee: macy's issuing a stark warning of weak holiday sales, sending the stock plunging.

shares were down nearly 18% yesterday. so is this a macy's problem or a retail problem? moody's lead retail analyst charlie o'shea joins us now. good morning charlie. >> good morning. good to be back. tracee: i want to ask you, macy's chief executive said the holiday season began strong, particularly during black friday, cyber week, and then what happened? what happened to sales? >> i think a lot of retailers got caught up in the early promotion cycle. i think that we had amazon come out early. we had walmart come out early. they're in a pitch battle for market share. both of those companies were promoting early and often. and it's hard for any other retailer to compete with that. and one of the things that i think we all need to be mindful of is the fact that during the holiday, we put out a 5 froe 5%% sales forecast at moody's. we didn't expect a lot from the department stores.

costco and target so far have posted really strong numbers for the holiday. tracee: is this a macy's problem? is this a mall problem? were people not going to the malls? >> that's going to be an interesting dynamic to follow. the mall traffic is definitely down. and it's affected more of the in-line mall retailers than it a has the anchors. i think from macy's perspective and kristina, our department store analyst put a piece out on this yesterday, i think there were one-off issues going on with macy's during the holiday. they had fulfillment issues. they got caught early with promotions. and when you promote early, you don't leave a lot to do later in the season. and the most important week is obviously the week before christmas and at that point you want to be selling more goods closer to full price than having to discount to clear inventory. and that's always a problem for retailers. tracee: you think they shouldn't have been offering all of those discounts right out of the gate, was that kind of where they went wrong?

>> i think we saw a lot of heavy promotions early and especially over the thanksgiving weekend. one of the things we pay a lot of attention to is what happens after that weekend. if you're 60 off that weekend, and then you're 70 off right after, you've got a problem. if you're, say, 40 or 50% off over the weekend and then you can drop down to 30, your promotions were effective over the weekend. we saw several retailers -- i'm not going to name them all because there were several that were promoting heavier after black friday and that's a problem. that means that maybe you didn't clear enough inventory out. maybe you over-shot and that can be a problem that can permeate itself throughout the entire season. tracee: having not gotten numbers from walmart, best buy, amazon, those are big ones still. what are you expecting there? are they going to be disappointing? we know consumers spent. but where? where did they spend? >> i think they spent exactly

where you just said. i think we're expecting a very strong holiday out of walmart, very strong out of amp son. when you look at the numbers costco posted, those were really, really good. and when you look at kind of the barbell in retail, we expected the strong guys, the guys at the top of the food chain, to drive holiday spending this year. we've already seen an indication of that with target and costco. i think best buy will have a solid holiday. and i think amazon and walmart will be probably the top two performers this holiday. tracee: he very good. thank you for joining us this morning. cheryl: well, obviously retail stocks and a lot of other stocks in focus this morning. futures right now pretty flat open, folks. dow up 8, s&p and nay nasdaq slightly lower. coming up, remember when then president obama apologized for america and he said this: >> i've come here to cairo to

seek a new beginning between the united states and muslims around the world. cheryl: mike pompeo ripped the obama administration's middle east policy during his visit to egypt. and if you are one of the few who share their netflix password, you're going to want to stick around. we've got bad news for you and your free loader friends. you're watching "fbn: a.m.." ♪ that's what you get when you let your heart win. ♪ whoa, whoa. you're gonna love if ythe best of geico.ercials, it's geico's all-time greatest hits back on tv for a limited time. and if you love the best of geico, you're gonna really love voting online for your favorite. you can even enter for a chance to appear in an upcoming geico commercial.

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cheryl: welcome back. let's take a look at what's happening now. futures pointing slightly lower on your friday, dow down 8, nasdaq down 9. a u.s. military official says

the united states has begun with drawing troops from syria. this is mike pompeo -- this as mike pompeo tornado the middle eastoured the middleeast to ass. he launched a stunning rebik stf president obama's speech. >> he told you they need a new beginning. >> i've come here to cairo to seek a new beginning between the united states and muslims around the world. >> the good news is this, the age of self-inflicted american shame is over and so are the policies that produced so much needless suffering. cheryl: pompeo speaking in the same spot president obama spoke two years ago. president trump's former personal attorney michael cohen will testify in front of the house overnight committee before going to prison. he pleaded guilty to breaking campaign finance laws by orchestrating payments to

silence a former playboy model and adult film actress to say they had a sexual relationship with the president. cohen sentenced to three years in prison. tracee: goldman sachs could be liable for $5 billion for its role in a malaysian bribery scandal. they helped race $6.5 billion for the fund that was used for bribes to government officials and to pay for a lavish lifestyle. they are under scrutiny from malaysia regulators and prosecutors. jayljamie kloss has been found alive. a suspect has been taken into custody. she was found in gordon, wisconsin, about 70 miles from where she was last seen. authorities are holding a press conference at 11:00 a.m. eastern. shocking video shows the moment a bus driver spots an infant running around on a freeway overpass, you alon alone in the. the driver jumps out to rescue the baby, less than a year old.

the child was left outside by his mother who may have been suffering from a mental health crisis. the baby has been reunited with its father. cheryl: that's so scary. what 3-year-old doesn't run away. tracee: thankful for that bus driver. cheryl: let's take a look at futures once again. not a lot happening, dow down 6, s&p down 2 1/4, nasdaq down 8. still ahead, president trump telling fox that he's on the brink of declaring a national emergency over the border wall. >> if we don't make a deal with congress, most likely i will do that. the law's 100% on my side. cheryl: the law may be on his side but is congress? how would a national emergency play out? chick-fil-a reveals the best selling item of 2018 and in a real shocking twist, chicken is not number one. you're watching "fbn: a.m." ♪ i'm on top of the world. ♪ i'm on top of the world.

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i don't see a recession. i would say if you asked me what am i worried about, the prince principal worry is slowing glow global growth. the question is how much does that affect us. cheryl: jay powell trying to reassure investors that the economy is on solid ground and interest rate hikes may be on pause. tracee: investors were listening to the fed chair, u.s. futures taking a look, down just slightly, dow futures down by 5. cheryl: we'll take the low key futures this morning many oil prices up for the tenth straight day, about to tie the longest winning streak ever. we're at $53.01, up about 0.8%. tracee: in europe stocks open higher as investors watch a vote on britain's plan to leave the

european union, that may fail. cheryl: a little bit of a change in those markets. stocks in asia all in the green. japan's nikkei gaining nearly 1%, the best performer there. tracee: if you ever shared your netflix password with a friend or relative, you might want think twice. "fbn: a.m." continues right now. cheryl: 5:31 a.m. here in new york. it is friday. it's january 11th. good morning. i'm cheryl casone. tracee: good morning, i'm tracee carrasco, in for lauren simonetti. never shared my netflix password. cheryl: smart move, it looks like. we'll have that story coming up in a little bit. first torques the big news on what's happening at the border. president trump moving closer to declaring a national emergency as shutdown negotiations with democrats yield no progress. >> democrats have refused to listen to the border agents and

they say this is a manufactured crisis. >> i have never been more depressed about moving forward than i am right now. i don't he see a pathway forward. somebody's got to like give some energy to fix this. cheryl: let's bring in broad blakeman, former white house deputy. lindsey graham, quote, unquote, depressed, he's the one person that seemed to be trying to actually work out a deal between the two sides. is this where we're at now and this is it? >> not quite. i think the president's laying the predicate by which he could call a national emergency if it comes to that. i think they're holding out for a deal. i know people are working behind the scenes. the question is will the democratic leadership be as forthcoming with a deal as seems to be with their underlings. democrats and republicans want a deal. it's a question of what the leadership is capable of producing. the president has been more than willing from day one to

compromise. he's at $5 billion. the democrats are at 1.3. there is a crisis on the border. it's not manufactured. it's real. all you have to do is ask the people who are affected by death and destruction and disease and using public benefits for illegals, sanctuary cities. so the president's going to solve this. the question is how. cheryl: i'm not so sure -- you said he's willing to compromise. it doesn't sound like he is. that's why he is willing now seems like from what we heard from him last night and at the border yesterday that he's going to go another way, a national manage civil that's not compromising of. that's using a presidential power because he didn't get his way with congress. neither side is willing to compromise. i think that's pretty obvious, brad. >> i think the president has said time and time again, he is willing to compromise. cheryl: on what? he said i want a wall or if you don't give me a wall, forget it, he walked out of the room on pelosi and schumer. >> pelosi said you're not

getting your wall, you're not getting security. the wall, technology, personnel, there's a host of things we need to secure the border. when your adversary says you're not getting a dime, one cent for the wall, what do you do? you end the meeting. you say if you want to make a deal, here i am. the president is not going to limit his options. he has to solve a crisis, the same as we solve a crisis when we have a natural disaster. this is a human disaster. this is a disaster right happening at our border that we're allowing to occur unless we fix it. cheryl: both sides said they do support border security, it's just the issue of the wall and the amount of money that goes towards it. a lot of this seems to be semantics at this point. i think investors are watching this and they're frustrated. when you're in the business world and the boardroom, you've got to work together. nobody's working together. peggy nepegpeggy newnana just wp

ed on this. it seems that the president's son-in-law, jared kushner, he says let's take back the rhetoric, maybe the emergency declaration is not the best way forward and the president doesn't seem to be listening to him. what do you make of that? >> i think time is running out for democrats. we have a crisis with the government that's self-inflicted by democrats by not making a deal. we have a partial government shutdown. we have a crisis at the border. we have to solve both. government's main job is to prevent harm, not respond to it or cause it. i think it's up to the powers that be to solve problems. the president will solve it one way or the other, either by agreement or it's going to be by edict. the choice is the president's at this point, how are we going to solve this. cheryl: what are the effects, depending on what decision he

makes. we'll talk about that next week i'm sure. brad, it was great to have you back on the show. thanks for coming on this morning. tracee: earnings season kicks off next week with some of the big banks reporting on monday. joining us with a preview, capital director of strategy, good morning. >> good morning. tracee: first off, what can we expect? we've seen some of the major the banks losing ground since october. what do you see happening? >> well, the thing about the banks is they're highly correlated with the stock market unless there's a reason for them not to be. so right now they're just trading along with the s&p 500. watching the xlf, it has to clear $25. there's a little bit more heightened volatility in the options market ahead of these earnings but it's mostly looking bullish. and i think as long as the s&p can hold kind of the 25, 78 area, we're looking at 26, 56 as new resistance for the s&p 500 and all of this is determined of course by all of the news

happening with china, the government shutdown, et cetera, and actually pertains to the fed comments as well. tracee: going back to that a little more, what kind of impact do you think all of those things happening right now, the fed, rising interest rates, the trade war, what will have that impact? >> well, the thing is that as long as there's health in the credit markets, the banks are going to do fine. the markets are going to do fine. the risk that the fed has with the balance sheet is over-shooting. if they over-shoot, it's going to be very impossible to service the record amount of debt in the system and powell said yesterday that was one of his big concerns was the record amount of debt. as they're tightening, as they're raising interest rates, which of course they haven't announced when they're going to hike again and they said they would be flexible, but they're still pulling that $600 billion off of the balance sheet this year unless otherwise told something different. so in that case, that's going to put a lot of pressure on the debt markets and it's going to make debt a lot harder to

service and in that, you put a lot of risk in the credit markets. you see risk in the credit markets, any major defaults, banks are going to hurt. otherwise, they're going to follow the stock market. tracee: what do you say for investors? is it a time to be cautious? is it a time to buy? where do you go from here? >> tread lightly. even though the overall market volatility is down, we still are in an increased volatile place with the news and everything like that. so i think that you tread lightly and watch the overall markets. as long as the xlf can put $25 in the rear view mirror, that would be great. and as long as the s&p 500 trades above 2500, you're good in the bank stocks. tracee: all right. any other things looking forward to this next earnings season, what do you think this could indicate moving forward overall? >> earnings are just huge, right. it's one of the things that the stock market is baking in, as far as the economic growth maybe decelebrating, how much it's going to decelerate and i think

any surprises to the downside are going to be very hard on equities, such as retail was sort of yesterday, but watching earnings is going to tell us how the tightening from last year really affected the markets. tracee: thank you, francis, for joining us. >> thank you. have a great day. cheryl: well, the airlines sector also losing altitude yesterday following a profit warning from american airlines. it wasn't just the retailers. the company said revenue for the fourth quarter and 2018 full year profit going to come in lighter than expected. american blaming lower than expected demand on its domestic market. delta airlines warned about lower than expected fourth quarter revenue last week. taking a look at shares of american airlines' parent company, it fell more than 4% yesterday. tracee: a new a.i. technology can track down users who share accounts and passwords for streaming services such as netflix, amazon, prime video and hbo go. a u.k. based company unveiling

the software at ces, saying it can combat the rapid rise in account sharinging between friends and families. the company says technology will allow streaming services to take steps to address the problem after detecting account sharing. cheryl: for the record, my parents now have their own netflix account. there was some sharing for a while. i'm going to own up to that. let's talk about this chick-fil-a announced its best selling item of 2018. it isn't chicken. waffle fries took the top spot. they said the waffle fries are the tastiest way to eat a potato. soft drinks took the number two spot. the top selling chicken item, chicken nuggets was at number three and then the figure fill lay chicken sandwich was number four. tracee: i agree with the waffle fries. five days of gains for the stock market, can we go for six? take a look at futures, starting to fall a little, dow futures down by 29, s&p 500 futures down by 5, nasdaq futures down by

15.5. tennis star andy murray rocks the tennis world with his latest announcement. and tim tebow makes his announcement that has nothing to do with baseball or football. you're watching "fbn: a.m.." ♪ love me, love me. ♪ say that you love me. ♪ leav need me, need me. ♪ say that you need me. ♪ i don't care about anything but you. gather new insights, leave your data protected on-site, and put it all to work with ai. the ibm cloud. the cloud for smarter business.

cheryl: comb back. before we get to the big weekend coming up for the nfl, there's big news from the world of tennis on two fronts. tracee: jared max is here with the details. >> we're about to lose one of the best players in the sport because of injury. unfortunately, not a happy friday for all. andy murray, a three time grand slam champion, announced this upcoming australian open may mark the end of his playing career because of a hip injury. >> i think i can kind of get through this until wil wimbledo. that's where i'd like to -- that's where i would like to stop, stop playing. >> andy murray is only 31 years old. he hopes to be able to make it to wimbledon, but after that he would be retiring. scathing news for tennis yesterday p. spanish police raided 11 homes,

arrested 15 people connected to an alleged armenian gang run match fixing operation. 28 pro tennis players implicated, including one who played in last year's u.s. open, unidentified. we do know a spanish player, who was provisionally suspended if december, is alleged to have served as link between crooks and willing players. they say the suspects bribed players to guarantee predetermined adults, used identities of thousands of citizens, people's credit cards used to make these bets. cheryl: complicated. >> the onion will continue to peel. cristiano ronaldo has been subpoenaed to give a sample to police after allegations of rape in 2009. oracle park is the new name for the giants' home which has been calledpaccalled pac bell, at&t d

now oracle park. tim tebow is getting married. yes, tim tebow off the market, he gotte got engageed. do we have a new coach for the cincinnati bengals? there is word that they want to hire zach taylor. the rams are still in the playoffs. they're going to make their 2019 debut tomorrow. they'll be against the cowboys. big game. l.a. is really good. tracee: everyone in l.a. is very excited. cheryl: l.a.'s a good team. it's going to be really good. >> we'll also have the eagles and the saints. cheryl: saints, wow, they've had a heck of a season. >> if the eagles beat the saints, free miller lite for eagles fans. they haven't announced which bars.

tracee: it's what they need. cheryl: another tough game will be the eagles and saints. >> if the eagles win, i think they're probably the team to beat now. so we'll see where that goes. cheryl: nick foles is playing? >> he's back in there, showing why he was the super bowl mvp. tracee: thank you, jared max. you can catch sports reports on fox news headlines on sirius xm channel 115. cheryl: taking a look at futures, we've had five days of gains. that may change today. dow down 26 in the premarket, s&p down 4.5, nasdaq down 15.5. coming up, amazon wants to become the next digital ad giant. how it's taking on facebook and google as well. and what happens when two young teenagers confront old technology? yes, that's a rotary phone and two teenagers. wait until you see this. you're watching "fbn: a.m.." ♪ breakdown, go ahead and give it to me. ♪ breakdown, honey, take me

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cheryl: welcome back. let's get you caught up on what's happening now. we have had five days of gains, that may change this friday. the nays dashin nasdaq is down 3 and-a-half. alphabet is facing a lawsuit over allegedly mishandling a sexual misconduct case. they allege the board has caused damage to the company, resolved around the handling of misconduct allegations against a former executive who received a $90 million exit package. amazon is launching a new free streaming service. it will feature big name shows like the bachelor, even gil

giligan's island. kamala harris is teasing a 2020 white house run. >> are you going to run for president? >> i might. >> might? [ laughter ] cheryl: okay. the california democrat reportedly is going to announce her campaign later this month. her name has been out there for months as one of many democrats considering a presidential bid. and then there is this. watch how these teens struggle to figure out how to use a rotary phone. >> we are so dumb. what do you do with the holes, though? >> that's a great question. >> we are so dumb. cheryl: what are the holes? is that for the dialing? these illinois teens got four minutes to try to dial a number. they eventually figured it out but they did run out of time.

tracee: i feel old. cheryl: yeah. tracee: coming up, british parliament set to vote on the deal to leave the e.u. next week. how the brexit vote could rock the markets, that's next. ♪ it's finally friday. ♪ i'm free again. ♪ i start my he moto motor runna wild weekend.

cheryl: the drama continues. the wall street journal says next week's brexit vote in

parliament is going to fail. jane foley, the senior currency analyst joins us now. well, good morning. this could be a big market event if this plan is rejected next week. how bad is this going to be? >> well, the market of course is anticipating that it will be -- it will fail. in fact, this vote was supposed to take place in december but theresa may postponed it on the hope she could muster up some support for it. nothing much has really altered since then. it appears it will fail. what the market's beginning to think is what will happen then. it might mean the chances of a no deal brexit -- the market is beginning to think theresa may would perhaps push back the start of brexit. so there could be a delay. tracee: talk a little more about that. what are the chances of a hard brexit, britain leaving the e.u. without a plan? >> well, it would appear that they would be quite significant,

if theresa may can't get a deal through, because the e.u. has continued to say there isn't another deal, this is the only deal we're going to negotiate. what other options are there? interestingly, most market forecasters aren't predicting that. there's a significant risk. it would appear there is no real appetite in the u.k. for a no deal brexit. therefore, this is why the market's beginning to assume that instead article 50 which says the u.k. will leave on march 29th will indeed be pushed back. so the prospects of a delay do appear to be growing. cheryl: let's talk about the aftereffects of all of this. basically the journal's point this morning was that britain is spinning its wheels. how long into the year can this go, jane? i mean, especially if the entire thing is pushed back. >> well, everybody here is just bogged down really with brexit uncertainty. i think most people want some sort of clarity one way or the

other. if article 50 is pushed back and postponed, it's difficult to know how long that would be. if it's a year, i think many people in the markets would breathe a sigh of relief. there would still be uncertainty about what's going to happen then. there is a prospect the labor party, the main opposition, want to call a general election. that's a possibility. and of course there's also the possibility there may be another referendum. a lot of uncertainty with whatever happens next week. cheryl: jane, thank you so much. we want to let our viewers now, ashley webster from fox business will be on the ground all next week covering brexit for us. tracee: let's send it over to dagen mcdowell and say good morning to you, dagen. dagen: good morning, tracee and cheryl. we'll see you shortly. good morning to everyone. i'm dagen mcdowell, in for maria bartiromo. it's friday, january 11th. your top stories at 6:00 a.m. eastern. it is day 21 of the partial government shutdown over border wall funding. now tied for the longest shutdown in the history of the

country. one more day, it will be the longest. president trump visiting the mexican border yesterday where he told fox's sean hannity about the importance of border security. >> the law is very clear. we are the absolute -- we have the absolute right to declare a national emergency and this is security stuff. this is a national emergency. dagen: we'll have the latest as white house officials are said to be looking for other ways to fund the wall. wall street off to a sliept a sy lower start this morning. futures are showing a little bit of red across the board, a 3 point loss on the dow futures, after the blue chips put up 122 point gain yesterday. all the major market gauges gaining about half of 1%. the markets are on their longest winning streak since early october. in europe, we have a little bit of selling to point out in france and germany. the ftse 100 up ever so slightly

and asian markets finishing higher overnight. oil, meantime, heading to the plus side. the price of crude on its longest upward swing since january of 2010. it was in a deep bear market and then, boom, soaring. plus, miracle in wisconsin, missing 13-year-old jamie kloss has been found alive. she was kidnapped and her parents murdered last october. details of her remarkable rescue. more trouble for carlos ghosn, the new charges the former nissan chairman is facing, that'that's straight ahead. lindsey bell, former republican presidential candidate, steve forbes, fox news contributor and former economic advisor to president obama, robert wolf, welcome one and all. you want to get to it, you ready to get to it, talk about the shutdown and who is to blame? >> the focus is on the shutdown. but the real focus