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tv   Cavuto Coast to Coast  FOX Business  January 8, 2020 12:00pm-2:00pm EST

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iranians. all in all, pretty well-written speech. whoever did that. stuart: measured, calm, not bellicose. >> called for others to move away from the iranian deal, what was left of it. stuart: good stuff. stocks up. oil down. neil, it is yours. neil: look what is happening in the markets, folks. as stu pointed out the dow wants to chase a record like other two major averages have, particularly s&p 500. if you were to have for seen that, a little more than a few days ago, when we first took out this general, you would probably have a lot of people scratching their heads and probably kicking yours. but that is exactly what is going on here. oil is below $60 a barrel, after flirting with $70 a barrel. this might be the reason for the latest move. take a look. >> our great american forces are prepared for anything. iran appears to be standing down
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which is a good thing for all parties concerned, and a very good thing for the world. as we continue to evaluate options and in response to iranian aggression, the united states will immediately impose additional punishing economic sanctions on the iranian regime. neil: we have not heard a response as yet from the iranian regime in response to the president's remarks. earlier this morning the response to the attacks that were leveled at this american facility in iraq was that there would be more to come. we go to the cow guy, scott shellady, on the impact of all of that. how do you think this is sorting out thus far? always risky to come to any conclusions before we know what happened, but what do you think? >> there still could be, we'll probably still have some scares. who is kidding who. i was up every two hours last night checking markets to try to
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build a picture for myself coming in today. this is dramatic turn around from last night at 10:00 a.m. central. it's a pressure cooker. we took a lot of pressure off. i don't think the pressure is totally off, yes. we haven't heard anything from the iranians. we haven't heard anything from democrats either. there is a lot to flesh out here. seems as though from the time being we have taken pressure off the pressure cooker. we might have taken exit ramp here so we haven't really heightened things. i think that is good. markets tell us they like that. look at the vix. vix under 13 before i got in the chair. everything is telling us they're pleased with the outcome. we might have averted something that doesn't mean it is over. neil: referring to the volatility index which measures a sense of fear or lack thereof. are markets ahead of themselves. what do you think? >> sometimes they get too buoyant and over their skis. what will be truth serum, earnings, see how they come out.
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walgreens down hard today. that was a little bit of a surprise. we'll need to see real economic numbers. non-farm payroll on friday. we need to see real economic numbers on friday. bolster stock prices where they are. i will say all this as i sat in the chair, we talked about the headwinds. headwinds were china trade, "brexit" and usmca. you know what? those things have turned around. they have been a tailwind so far in the first few days this year. they look to be going that way the rest of the year. if that is the case, it will be hard to beat. these markets look pretty good. neil: you talked about the employment report due out on friday a good telegraph indicator for that, not all the time but a lot of time, private sector job growth, adp survey, surprisingly strong 202,000 jobs added. estimate was close to 145, 150,000. what do you think of that? >> i'm glad. i think the conundrum, neil, we're not seeing a ton of wage inflation. we're not seeing employers fight
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for employees i would have thought with 3 1/2% unemployment rate. something is going on, we're not getting same out of the exhaust. there is something up. i want to see more this year how, maybe wage inflation is so elastic it will fling back into play here. we're going to see a lot of inflation all of a sudden. to date, numbers we're seeing as far as jobs created, unemployment rate, we're not seeing it come through. i'm waiting for that. when it comes an issue. that something inflationary that the fed will look at. that could change the picture rather quickly. neil: thank you my friend. always good catching up with you. >> all right. neil: president wasn't without upping ante a little bit here, threatening still more sanctions to bring the iranian regime back to the bargaining table so to speak. former uss cole commander on that. commander what did you think about that? we didn't expect the speech to
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include a mention of more sanctions. what do you think? >> i think it was a very measured response that gave the president flexibility to up the anti-saying hey, this will not go unanswered. you don't fire missiles at us and do nothing. while at the same token, deescalatory move that gave us off-ramp hoping the president would take. clearly he took it. when you look at it, oil markets calmed down. prices are going down and by the same taken this is what energy independence gives you. it gives you national security flexibility how to deal with complex issues in the middle east because we, the united states are dependent on that oil anymore. neil: commander, we are hearing reports for this raid on this american military base in iraq, iranians did not use any of their proxies. they didn't want to risk anything using their proxies. what do you make of that? >> i don't think it was a risk. iranian government and mullahs
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themselves felt they needed to send a signal from inside of iran. it was very, very concerning to them that they would farm this out. they wanted to make sure their people understood that iran itself was going to respond to killing of soleimani. so therefore it was absolutely appropriate that they did it for messaging internal to iran but same token they did it in a manner that did not result in u.s. casualties which would have caused us to the clear the decks. we would have had wider conflict on our hands. neil: you reminded me in the region, just like negotiating with the chinese, about saving face or each side got something from the other but it doesn't remove reality that iran is not a very nice player in that region. it is already threatened repeatedly to do something, anything in the strait of hormuz to disrupt energy traffic so what do you think? >> well, neil, to say that there are not nice player is the understatement of the year.
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i think you have to look at it. they are a brutal, ruthless regime that has done anything they need to in order to remain in power for the last 40 years since 1979. they will execute and kill anyone not only in iran, throughout the region and the world. let's not forget. hezbollah is very active in the triborder area in latin america. they bombed the jewish center in argentina. they continue to go after to target israel. they are within the government in lebanon. so they will do whatever it takes to remain in power. the question i think for the united states now is going to be the long-term view. iran today is where north korea was 15 years ago. if they continue to pursue the bomb, what is the path that we and our allies around the world are going to have to put in place to prevent them from getting it and are we willing to live up to the full consequences of that decision? neil: any messages for north korea in any of this? >> i think the message is very, very strong. i think north korea understands
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that the united states is going to do what's necessary to safeguard our national security. again north korea is the only nation that has ever threatened off with offensive use of nuclear weapons. kim jong-un understands even though the deadline passed at some point he needs to come to the negotiating table or we'll be in the position we'll not allow them to have nuclear missiles with minute miniaturizs at top of them and reaching united states and china has to start participating in that process. neil: house is getting set to start 1:00 p.m. senate, 2:00 p.m. mike gallagher will be at the one p.m. briefing. he will take time to join us now. thank you for joining us. what do you think of the say this seems to be sorting out? >> i think this is massive victory for president trump and entire national security team, if this is all there is. when the dust settles, and it is still settling all we have
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iranians lobbing some ballistic missiles in the desser, beating their chest at home. meanwhile we've taken most important terrorist organizer, commander, arguably the deadliest, dangerous man in the world off the battlefield? hard to interpret that anything other than massive victory for the president. huge meaningful step to restoring posture in the middle east. that is a good thing. if you're interested in reducing our force posture over the long term. neil: congressman, do you have any update? i know nancy pelosi after word of the attack last night wanted to push back this vote on limiting the president's war powers. i believe until next week. any update on that? >> no update, but i think it would be wise for them to take a step back. consider they introduced this draft before they even reviewed any of the intelligence surrounding the attack t wayne until 4:00 p.m. last night the "gang of eight" got briefed. i think that is profundly
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irresponsible as is the rhetoric you're hearing coming out of all democratic presidential candidates. elizabeth warren suggested on "meet the press" this weekend this was all part of a wag the dog effort to distract from the ongoing impeachment trial. bernie sanders suggested that killing a terrorist, qassem soleimani and abu mahdi muhandis let's unite americans, republicans and democratses around the basic prince, if you kill our fellow americans we'll come after you and we'll not sit idly by while you threaten our people. neil: thank you very much, congressman. appreciate it. >> thank you. neil: the corner of wall and broad the dow at session highs, 70 or 80 points from all-time highs. s&p 500 is at an all-time high. nasdaq is at an all-time high. gold is giving back earlier gains. oil for a while.
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neil: all right. president hopes to resolve the situation with the iranians. what isn't clear what nancy pelosi will do reining in the president's war power responsibilities. she kicked that off until next week. forget about the impeachment process where that goes, will reining in of president's war powers go in let's get fallout from supposed end to this crisis from charlie gasparino. we have iona political science
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professor judy and "wall street journal" associate editor john bussey. john begin with you, end with you, will there be appetite to do the war powers thing next week? this did not have the semiending it appears to have today, it might, what do you think? >> this had been an issue before the congress for many administrations. neil: absolutely, absolutely. >> not just this most recent round. look the president's speech set the tenor for what his administration's view of iran is. it didn't seem to be much of a change. we're going to continue to try to contain them is what he said. we're going to ramp up economic sanctions as well. it didn't answer any of the questions that the democrats have been come playing about. why did you strike when you struck? you said there were imminent threats. what were the imminent threats? there was no discussion of that. i think we're at status quo. i'm not sure with impeachment underway that the congress has appetite for another political
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argument with the president over this particular issue. i think it will probably focus on the impeachment proceedings. neil: what do you think? >> i think when donald trump acts the way he acted today was presidential, measured. if there was one thing people worried about, can he manage his way, if you think about the markets are ultimate determinant. if trump was crazy, everything that democrats say he is, markets would not be up whatever they are up 200 points. i know it is a snapshot -- neil: but markets don't like escalating wars. >> they like measured and management. prom donald trump came out and said they could manage the good case. he gave the good case why soleimani could be killed and situation with iran how we'll manage this thing. when somebody can articulate management skills from the bully pulpit, it's hard for nancy pelosi to compete against that or any democrat. by the way, john's right we've been talking about it for years. if you look at for years nothing
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ever happened. the president has wide powers. they couldn't rein it in under obama. couldn't rein it in under bush and that, donald trump, you will not win against. neil: even during the carter administration, they tried to rescue the hostages, congress was all over him for the failure. >> yeah. neil: they did surprise with threats of new sanctions against the iranians. he didn't spell them out but it was sending a message to iran, that makes me wonder what iran's response is going to be? >> two things surprised me. when he first came out to the podium, he said iran will never have nuclear weapons. and during, as long as i'm president. he mentioned he would indeed increase the economic sanctions. to me, that suggests that we are in the same place we were before this latest round of incident. which is, how do you then insure against iranian nuclear weapons which are 10 months, a year out
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at this point and, increase those sanctions. but what is their off-ramp. how do you bring them to the negotiating table? i don't think i heard from the president how that is going to happen, that is what i would like to see but how do you get them there? >> okay. it will be very hard to get them there through sanctions. what i think is impressive about him is that we are back to square one. i mean you know did not ramp up the war. neil: in other words, back to where we were? >> we'll manage this thing. we'll screen you with sanctions. if you screw -- >> how did we manage it, if in 10 months they indeed have a nuclear program? he has drawn a red line -- neil: they're not going to honor -- >> i think it is a very important point. the unfortunate thing we're back to the status quo which is untenable one, if you think about it. the markets if i have affirmation to the latest nanosecond to the moves.
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market is not relieved there is not all out chaos. markets are up. wait for iran's real response. neil: what do you think it will be? >> it will be what we've seen all along. neil: great satan? >> not the rhetoric so much, neil as the efforts in yemen. neil: none of that changes though. >> i don't think it does. i don't see either off-ramp articulated by -- >> i agree. the risk remains. if these proxies that they can't control or do control if one of them acts there is a lot of risk out there. neil: they use those proxies, they can use those proxies for this attack. >> this attack, neil, was epsodic. we got month ahead of us. neil: exactly. >> what is the alternative? what is really the alternative? is the iraq, iran deal that obama crafted the alternative? they were flouting it. they were going to build a
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nuclear weapon under those circumstances. i don't understand what the alternative is, if you take out one of us, we're going to come back. we're manage you and your economy? neil: to be expected satisfactory out come we could hope for? >> i don't know. if you think iran -- neil: john basing what they're seeing in the markets. >> he is right it is epsodic i think there is lot more in this. people thinking about it over the weekend. is there a case to be made that the obama iran deal was working? and i have not, listen i read a lot on it. i have not seen it. >> but i would just say you know the best outcome short-term but does nothing to address the long term. i'm not sure we're any better off than we were prior. the risk remains. neil: do you think a deal can be had where we enter into negotiations with iran and we try to solve this once and for all or is this impossible? >> i don't want to say it's impossible. i sure hope it can happen. i don't see the president,
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administration saying publicly how you get there. if you think about the markets. if anybody watching markets think the short term risk, that may have diminished a little bit. ask sheldon adelson of a long term risk out of cyberattack comes out of iran $40 million later. this is real risk. >> again -- neil: that won't have -- >> that won't have fingerprint. >> will we play ball with despotic regime 30% of the population controlling 70%? that is essentially you have. you have religious zealots. neil: that won't change. >> will we, we're going to enter into deal with people like that. >> if we don't deal with them, talking about regime change. the president hasn't said that. >> he actually has. he actual has, with sanctions. >> he has inside he wants to overturn the regime. >> he doesn't have to. >> he said he wants to work with them. i'm asking how do you get to the next step? this is good short term outcome
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but how do you get the long term -- neil: john, end with you, looking at markets, more oil markets, they were running up in participation, american energy independence notwithstanding we have to worry there will be another conflagration in the middle east. >> yeah. neil: decidedly less of that fear today, which is accurate, last week or this week? >> probably this week, right? the iranians don't want to escalate. americans don't want to escalate. that is good for particular view, needs for the market and of pricing. what happens, down the road? maybe the tensions are such, charlie has a point. how does this, what are the alternatives? and the continued tension, the continued containment effort will have a price as well. there will be conflicts between the two nations which is probably going to pressure oil prices on upside. >> their economy is in shambles. neil: oh, it is. >> it is only going to get worse. neil: the benefit of this, like
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ayatollah khamenei 40 years ago, a great distraction for a horrific economy. >> if they want to go do tit-for-tat -- neil: the new term is quid pro quo. >> play that out for a second. we don't know, his economy is under immense pressure. we saw protests taking place against the regime were all about last week, but what is the endgame there too? neil: all the protesters that were killed. >> how does a economy in really rough shape, how does the central power maintain power? >> usually the way through saddam hussein did it. literally the flipside. >> they try to find something to focus attention on which is the united states. increased tensions. rallying cry. >> if you get in the mud, what just blew me away, i was not against the iran deal obama crafted at first, give it a shot. if you notice they didn't live up to most of it. they were doing stuff
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clandestine. soleimani was spreading terror throughout the world. neil: we'll see what happens. i think people are just relieved for the time-being. we have the dow up a little more than 200 points. 22 of the dow 30 component are up. apple in and out of $300 a share. exception to otherwise bullish sort of a rule here. boeing, again in trouble. after this. most people think of verizon
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neil: welcome back, everybody. take a look at boeing's stock right now. is down 1 1/3%. been down 2 1/2%. it is trying to pare its way back here. it began overnight that reports ukrainian operated boeing 737, not a max, crashed and killed all on board. jackie deangelis has the latest. reporter: good afternoon, neil. the stock is trading down four
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bucks after you see the market turned around. this is after the crash. it was a 737, the 800, not the max jet that kept planes grounded last year. the 737 crashed in tehran, iran, overnight t was operated by ukraine international airlines. 167 passengers, nine crewmembers onboard. ukraine's president says everybody has perished in the crash. the cause of the crash is not known at this time iran has said it will not release the black box to boeing. it will be difficult to find out more without having that piece of equipment. in a statement boeing said this, quote, this is a tragic event. our heartfelt thoughts are with the crew, passengers and their families. we're in contact with the airline customer, stand by them in this difficult time. we are ready to assist in any way needed, end quote. now the plane was serviced on january 6th, as far as we know. a spokesperson for the airline
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said there was nothing wrong with the plane at the time. iranian news agency were reporting there were technical problems with the plane. a lot to uncover with the crash, neil. neil: do we know, jackie, we don't know the timing of all of this, this dem craig there be no commercial air traffic in and around iran, was this in spite of that, after that warning was issued, do we know? >> it is my understanding it was just after that but right now the two were not related. so there are some theories potentially there was more to this but more investigation needs to be done as well. neil: jackie, thank you very, very much. meanwhile iran's supreme leader issuing new threats but so far no response to the president's response to these developments and the threat of new sanctions after this. this piece is talking to me.
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neil: oil retreating from 8-month high right now. it had been soaring overnight, and in a abroad, when you look at brent crude, all of that dissipated. jeff flock, phil flynn at cme with more. gentlemen? >> five dollar move in oil, guys like you love that stuff. >> i do. i remember days we would wait a whole year to get five dollar. we got one in less than 24 hours. >> we were up $3 and down 2.
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>> exactly. >> who is making money. >> a lot of people are losing money on both sides. people are realizing last night was probably overreaction to the news. they should know that by looking at previous events. for example, iraqi, iranians allegedly attacked the saudi oil fields oil prices went up to $67. >> came right back down. >> came right back down. >> here is the other thing, we had surprise build, i'm looking at numbers, surprise build, we had a lot more oil than we thought. >> right. >> how can they come up with the estimates, how can be it so wrong, they expected a draw of 3 1/2 million barrels? >> exactly. >> it turned out to be a build. >> this time you blame it on the weather to a certain degree. when analysts are looking at numbers, they look at expected refinery runs, imports, exports, you name it. we saw a huge drop in u.s. oil exports last week. fog in the houston shipping channel. it was shut down. >> one off. >> one off. >> should go back next week.
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>> phil, neil, continues to be an oil bull long term. >> yeah. >> you think it is going up. >> i am. >> why? >> bullish on the u.s. economy. bullish on the global economy. the world still runs on oil. it is a good thing. >> okay. find oil. neil: very profound, gentleman, thank you very, very much. the president is saying that the world needs to work toward a new iran deal. >> the time has come for the united kingdom, germany, france, russia, and china to recognize this reality. they must now break away from the remnants of the iran deal or jcpoa. we must all work together toward making a deal with iran that makes the world a safer, mo peaceful place. neil: all right. we've not gotten response from iran on that overture or offer.
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former navy seal team six commander david sears. what do you think to the offer, they're up for that, what you do think. >> they're definitely not going to say that like that, neil. it will take time to get them back to the table, i do believe the sanctions, this is game-changer in reality. we're not back to square one like one of your guests said, soleimani, hundreds of thousands especially from the syria, blood and death on his hands is dead an gone. this really affects iran. the response to this much president trump's response to this this whole sequence of events really reset the table in a favorable way i believe towards the trump administration that hasn't existed since the reagan administration. neil: what do you think if we knew that soleimani's successor, his whereabouts, would we take him out as we did his predecessor? >> i think it depend on what his actions are and what we can tie
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to him. soleimani was in a little bit after unique position, he was designated terrorist by the obama administration. he was under multiple sanctions from the u.n., all torts of other entities as well. so the justifications and his track record already existed to make it a perfectly legal, legitimate target. i'm not sure his predecessor will carry that same mantra with him for a while. neil: that leads to be very careful where he travels where he goes. dave sears, thank you very much. appreciate it. >> thanks neil. neil: dow up 196 points here. we're 80 points away from record territory. s&p 500, nasdaq in record territory, apple, apple is over $302 a share. some news with apple, that is linked to something that is nothing to do with its overall business, after this. fore he coe damage.
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♪. neil: all right. they say, if you create something maybe you will define a need for that something. a new samsung tv rotates, allowing you to play vertical videos. okay. liz claman in las vegas at ces with more on that. liz, i don't get it, i really don't get it. liz: you're not a youtuber, neil? neil: that's it, all right. that's it. liz: this is the sero. this is really for the millenial generation. it means vertical or new in korean. look at the sero tunnel at samsung. samsung always has the biggest food print here at ces 2020. it goes to vertical or portrait mode watching sports or football it is horizontal. if you need to throw in a instagram photo or go to
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portrait mode all youtubers want, you want the big black bars on the side, with a touch of a remote, it immediately rotates. let's emerge from that logan's run type fun snell. i take you over to the actual availability much how this works. so, you're watching tv, correct? got this remote in my hand, neil. all you do is tap it, and what happens is, it starts to go vertical. again, this is millenial part trick type television set. the remote is apple or android phone. if you have a galaxy phone. tap it on the side of the great many. it will all sync all your instagram pictures or youtube, tiktok, i know you're into tiktok, neil. it instantly goes in there. i want to show you, neil, do you have have a favorite artist? got a favorite artist?
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neil: who is responsible for adele's pictures? who is responsible for that. >> dogs playing poker. you can pick your artist, called the frame television. part of the lifestyle television suite they're introducing at samsung. boom, you have that on the wall. you don't have to sit there watching dr. pimple popper. i know you love that one too. this is very hot ces. every year it is very big. we're expecting record breaking crowds. we're talking about gadgets. i know you love robots. let me show you a couple robots we've seen here. lg has the chloe. they unveiled it last year. now what they have here, getting a lot of attention, robotic restaurant. it will make noodles, it wail make coffee. it has robotic dish walker, no more, you have to hear, neil, i cooked. you have to do the dishes. that is incredible. we'll talk to lg in 3:00 p.m.
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eastern "claman countdown." this is absolutely cute. the load box. you need a companion, neil. i know you do. a little robotic pet made by a japanese company called groove x. it reacts to your moods. i know you're such a nice guy, you will come up in a bad mood, like the your kids put your phone in the microwave. someone told me that actually happened. it will wag its tail to be friends with you. there are all kinds of robots. we like the rotating television, when you think about it, it is very cool. it is new way at samsung. not available yet. no pricing yet. really for the youtube, tiktok generation. they want the portrait mode, neil. i know you do too. neil: i don't get it, liz. take it from me, this internet thing is going to be big. it is just going to be big. look forward to your show. continue to a great job there. she is getting, forget 10,000
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steps, like 100,000 steps. lockdown yet again. fbi is seeking apple's help unlocking two iphones for the pensacola base shooter. to former fbi director, bill daly. fbi is worried about this, are you? >> shooting in san bernanadino couple years ago, fbi went through same petitioning of apple. went through a one-time code. not looking a code unlock anytime they want anywhere. it was meant to be just for this specific investigation. in san bernanadino they got a court order. apple refused to comply. eventually the bureau hired actors, paid beaucoup bucks they were able to break into the phones this is instance i think where we have this kind of clash between law enforcement, technology, and need to get information and the information perhaps in these phones would
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help understand whether this person acted alone or the people he communicated with, any other plans afoot. there are a number of things very important to the national security and personal security that may be on these phones or any other future phones. neil: you always hear the argument, phil, privacy advocates say it is slippery slope. what might be done now to help track down details and timeline of a killer, opens itself up to law enforcement spying on people? >> well, certainly that is always a concern. i think all the concern for us as citizens, that it is not done in some kind of a willy-nilly fashion without the proper protocols but in cases i know when the bureau asked for this information they're asking for them to unlock them on one-time basis, not provide them a source code or programing or, some super code, super user. it is really to give them access for these particular instances. it is something that will have to be tested in the courts because this is not, only time it will happen and i also
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suggest with other companies an technology companies like apple, work in markets not as free market as are, they are confronted with same questions an issues by those governments and how will they respond especially if their business is at stake in those locations. neil: bill daly, thank you very much. i appreciate it. >> good to see you. neil: carlos ghosn breaking his silence for the first time since his escape from japan. >> not very difficult to come to conclusion. you're going to die in japan or have to get out. modern utility for modern obstacles. lease the 2020 nx 300 for $359 a month for 36 months. experience amazing at your lexus dealer. whoh no, that looks grossit. what is that? you gotta try it, it's terrible. i don't wanna tray it if it's terrible. it's like mango chutney and burnt hair.
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>> i'm here to shed light on a system that violates the most basic principles of humanity. i'm here to clear my name and to pronounce clearly and emphatically something that was
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interpreted as heresy in the japanese judicial system. these allegations are untrue and i should have never been arrested in the first place. neil: you know this guy is going to be the subject of a movie. former nissan chairman carlos ghosn defending his decision to leave japan in robert ludlum circumstances in 2 1/2 hour news conference today. judge andrew napolitano was watching every moment of it. he is the star of "the liberty file" on "fox nation." what did you think? did he comport himself well? >> i thought he made a compelling case for his innocence. in japan as criminal defendant he must approve his innocence which we don't have here. the government must affirmatively prove your guilt. he boasted he will do it and succeeded doing it. showed resolutions adopted by news scene, signed by board
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members to have the fund's cues he was having if it were a crime in japan. stated differently, the nissan executives who hated him succeeded in corralling the machinery of the government in japan and weaponnizing it against mr. ghosn. he is correct. this is a civil dispute between the former ceo and those succeeded him there is no criminal behavior here. what did they do to him? locked him up in a room for 13 months. every single day he said confess, confess, we'll let you go. they would never have let him go. that was a lie. he was able to see see through it, when lawyers managed to give him documents that he to the documents. the state seized them. neil: is this happen in pan. japan's conviction right is
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99.4%. there is no conviction right like that in china or russia. neil: prosecutors, said something to the effect we don't pursue classes unless they're ironclad. >> that is true they do say that. they have the power to do types of things i've been summarizing which is so ailian to our tradition. when he says there is no due process he is not exaggerating. there is no due process. neil: you know what i kept worrying about watching the press conference, someone would seize him there, put him back in the little black box and back -- there is no extradition, getting him from lebanon is that where he is? >> yeah. neil: back to japan but could other countries get involved? >> let me tell you your fear he might be seized is realistic one. he will look over his shoulder the rest of his life, even if he stays in beirut. even if he has bodyguards. if he is kip understanded brought to means to a japanese court, court under japanese law,
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american law, whether situation was in america, doesn't care how he got there. neil: let me switch gears if you indulge me. we're getting word right now. we were looking at a bunch of congressman heading into a briefing. first the house, then the senate later on, or vice versa, i don't know. they will be updated on this. the administration is going to argue taking out soleimani was something that was based on a imminent threat. what do you make of it all? >> only two-ways that the constitution, president took oath to uphold the constitution. constitution authorizes two-ways federal government to kill. one is declare war. only congress can do it. the president can use the military to kill the country we declared war. other is process or jury trial. neither took place here. if we allow presidents of the united states to kill people in foreign countries what he fears they might do, he is not a president. he is a prince. why madison clearly separated the power to decide who to kill
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from the power of who does the killing. neil: reinforced by the fact he killed plenty prior? >> so, was that act of vending vengance or effort to stop killing in the future. neil: even if they have proof he might go after more americans, more iraqis not enough. >> not justifiable under international law. if he can killer iranian in iraq, can the president of chain kill official of mexico visiting texas because he somehow offended people in china? there would no end. neil: isn't there a distinction here, a guy i know a top general in iran and all of that, so sort of like a high-ranking figure akin to our maybe even secretary of state, defense secretary, top general, do we make a distinction like that. >> yes we do. neil: a butcher is a butcher? >> two executive orders signed by two republican presidents ford and reagan, prohibited killing officials of a foreign government which we have not
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declared war. neil: so what was the distinction with usama bin laden. >> osama bin laden was not head of a government. neil: what is distinction of this guy. not head of government. >> an official, an official. this guy is the equivalent of the head of cia, head of the military. neil: both killers? >> yes, yes. but, bin laden did not operate within any law. this guy operated within iranian law as horrific as that is to us. that is why ford and reagan said can't do it, unless you declare war. the declaration of war is key. that means there is broad national consensus in favor of doing it. it is not the president doing it on his own. neil: we'll see what happens. by the way, on that very issue, nancy pelosi is pushing off a debate and a vote on limiting the president's war power responsibilities for next week. she did so after hearing of the attack last night. we'll have more after this.
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iran appears to be standing down which is a good thing for all parties concerned. the fact that we have this great military and equipment, however, does not mean we have to use it. we do not want to use it. american strength, both military and economic, is the best deterrent. to the people and leaders of iran, we want you to have a future and a great future, one that you deserve, one of prosperity. neil: all right. whatever you make of the president's remarks, they were calming enough to get some buying going at the corner of wall and broad. markets are high -- at their highs, in and out of them now, when the president said iran is
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standing down and so will he, saying his sanctions that are coming up against tehran, the administration officials now are briefing the house lawmakers on what precipitated the taking out of suleimani, the top general of iran. we just saw a few minutes ago nancy pelosi walk into that same gathering. hillary vaughn with the latest from the white house. hillary? reporter: neil, we just saw secretary of state mike pompeo walk into that meeting on capitol hill, where he will brief house lawmakers on the missile strikes that occurred, hitting military bases in iraq last night. last hour, the president sending a message of de-escalation to iran, urging a path towards peace and offering iran an off-ramp to work on common interests with the u.s., like taking out isis. president trump's response to iran's attack last night taking economic action against the country, announcing a new round of economic sapgnctions to puni iran, saying he wants nato
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partners to become more involved in the middle east in the near future. >> the united states will immediately impose additional punishing economic sanctions on the iranian regime. these powerful sanctions will remain until iran changes its behavior. our economy is stronger than ever before and america has achieved energy independence. these historic accomplishments shade our strategic priorities. reporter: while congress is getting briefed right now by secretary of state mike pompeo, along with him is also defense secretary mark esper and cia director gina haspel. house democratic caucus leadership this morning signaling there is no timeline for a war powers resolution to hit the floor, but that's still an ongoing discussion. >> donald trump may have been an arsonist that lit a fuse that could plunge the middle east into a catastrophic war, though
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he's trying to pretend as if he's the firefighter. reporter: democrats both in the house and senate say it's important for them to send a message to the president through this war powers resolution letting him know that it is still their sole authority to declare war, even though the situation with iran appears to be defused for now. neil? neil: hillary vaughn, thank you very, very much. with us now, the former navy pilot, former deputy assistant defense secretary under bush 43, peter brooks. you know, peter, i have been scouring the wires here waiting to see any iranian response to the president's remarks, none thus far, but on the threat of sanctions to come, additional ones, how do you think they sort that out? >> well, it's going to be tougher on them. i think that the iranian economy contracted, what, 10% last year? and i think it's expected to do the same under existing international sanctions. and i think that additional
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sanctions on the part of the united states is going to make it even tougher for this regime to meet the basic needs of the iranian people. but they have an opportunity, as you saw the president say. i mean, people say there's no strategy, the trump administration has no strategy towards iran. i don't agree with that at all. it's always been based on diplomacy. we are going to make it tougher on you through maximum pressure until you come to the table to talk about the things that concern us about the iranian nuclear deal and your international behavior. the iranians have refused to walk through that door. the president left that door open today in his comments at the white house. neil: so you know, the iranians were talking a lot about the equivalent of an eye for an eye, tooth for a tooth. i don't know whether this attack on an american military base in iraq was that, but i'm wondering whether they're done and this will achieve that. what do you think? >> here's how i see it. first of all, i think they made a strategic calculation on this attack last night. thankfully, no americans were hurt, nor iraqis.
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i think that they decided to miss targets that they thought would cause casualties, send them in the direction of u.s. forces. they sent them into interesting parts of the country, into the kurdish part of the country and the sunni part of the country but not into the sthoohiite par the country which would probably help preserve relations with iraq. and i think they had to send -- they felt like sthethey sent a message to an external audience which would include iraq and the united states and to an internal audience, the iranian people, who are very unhappy with the regime. they have been protesting for weeks and months about the inability of the iranians to provide for their basic needs. now, i'm not clear, he wouldn't let down our guard, neil, in terms of iranian actions. they could continue provocations to try to get out of the stranglehold this maximum pressure strategy has put them in, especially pressuring the
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europeans, but i also am worried about the fact that kata'ib hezbollah was with suleimani in that air strike and they may try to retaliate against u.s. interests in iraq. there's a lot of things to worry about and our intelligence services are certainly working overtime to make sure that we know if something is going to happen. neil: peter brookes, thank you. take a look at what's happening at wall and broad. they are worried about followup action on the part of the iran or anyone else, they have a funny way of showing it. the dow up over 200, all-time highs reached on the 2nd of this year. the s&p 500, nasdaq already at records. gold easing back a bit, oil easing back a bit. again, the havens that they were little more than 24 hours ago, not so right now. alan nuckman on all of that. what do you think of this reaction? >> i try and take a very
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complicated situation and simplify it by doing, by just focusing on the price. if you factor out the fears and focus on price, we got a lot of signs of stability. you talked about the stock market making a full comeback. really interesting the way we sold off last week and rebounded that even before last night, we were within half percent of the all-time highs. we had a flush out last night, that was more of a test and rejected the recent lows but look at everything else. gold had a blowoff top. oil had a blowoff top. the vix is at 13 and interest rates which are a safe haven rallied overnight but are now negative. so everything is showing signs of stability. neil: so looking at this reaction, you know, we are kind of back to where we were before we took out this general, which is a middle east that's still a mess, a middle east that's always volatile, but a middle east that for the time being, has kind of reined in iran. but we are back to earnings and back to fundamentals.
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>> exactly. talk to me about price. that's what's the focus. the markets usually have it right. what was really important is we held this 3200 level in the s&p, we traded between 2800 and 3,000 from i think it was may to october, so that targeted 3200 on the upside. that's now a support floor and on a weekly basis, look for that to hold. you talked about the fundamentals. next week we start with earnings. looks like we will possibly have positive earnings growth which we haven't had in many, many quarters and that's going to be an amazing focus for the stock market to continue this rally run. neil: all right. let's get a sense of what companies are expected to do. i know there's been a lot of optimism about earnings picking up pace. i think year over year, about 8% for the year. is it your sense that that's right? any uptick in oil prices could hurt that math a little bit but what do you think? >> well, oil price here, we are at $60. traded between $50 and $60 for
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the longest time, had the breakout and now have come back to the base level. remember, we were at $70 not so long ago in oil so this is not a real constraint on the market and from my opinion as a trader, higher oil prices are a sign of economic strength. i think it will be a positive sign that some of this global growth worry and that overhang has slowed, if you can see oil prices continue to move higher because that's a belief that the global economy's coming back. i look at oil as a positive when it rises and i'm looking for stocks to continue to do what they're doing. the president has a vested interest obviously in our stock market and he's going to do everything he can and will do anything to keep it moving to the upside. neil: you have been prescient on all of the above, so thank you. we hope you are right on all of that. we shall see. alan nuckman from the cme. meanwhile, the dow and its impressive performance, it would be even more impressive, walgreens is one story but really, the story is boeing. if not for boeing alone, we just
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might be in record territory there. after this. [ applause ] thank you. it's an honor to tell you that liberty mutual customizes your car insurance so you only pay for what you need. i love you! only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ most people think as a reliable phone company. but to businesses, we're a reliable partner. we keep companies ready for what's next. (man) we weave security into their business. (second man) virtualize their operations. (woman) and build ai customer experiences. (second woman) we also keep them ready for the next big opportunity. like 5g. almost all of the fortune 500 partner with us. (woman) when it comes to digital transformation... verizon keeps business ready.
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neil: all right. the weird thing about that plane crash in iran is that the country is refusing to hand over the black box of the ukrainian jet itself to boeing. fox news correspondent dan springer has the latest details. dan? reporter: yeah, neil, that's very unusual. there's no firm evidence at this point suggesting the rocket attack launched from iran four hours earlier played a role in the deadly crash, but a lot of questions are being raised by the information that has come out and the threats made in the last couple of days. within hours of the 6:00 a.m. crash in tehran, officials from iran and ukraine said the cause was a mechanical problem, but
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ukraine has since backed away from that statement. iran has not. it's also saying it will not turn over the flight's black box to boeing which built the plane. the ukraine international airlines flight crashed just six miles from the tehran airport. flight tracker data shows it climbed to about 8,000 feet, then lost all contact. on monday, iran's leader rouhani seemed to threaten a terrorist attack in a tweet. in response to president trump, saying he had 52 targets in iran picked out, rouhani tweeted those who refer to the number 52 should remember the number 290. never threaten iranian nation. 290 refers to the number of people killed in 1988 when the u.s. navy accidentally shot down an iranian passenger jet. months later a terrorist attack brought down the pan am flight 103 over lockerbie, scotland. but terrorism is less likely when you consider most of the victims were from iran. 82 of the 176 passengers, 63
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were also canadian and none were american. some are speculating it could have been iran that shot down the plane with its air missile defense by mistake. now they are trying to cover it up. the plane's fuselage was in small pieces, suggesting to some either extremely high air speed or an air explosion. iran's transportation minister told his state-run news agency there was a fire in one of the plane's engines but there was no communication from the pilot supporting that. as for iran withholding the black box, the u.s. state department issued a statement today saying quote, we will continue to follow this closely and stand prepared to offer ukraine all possible assistance. the united states calls for complete cooperation with any investigation into the cause of the crash. boeing says it is ready to assist but the company may get shut out by iran and i tell you what, this plane, this 737-8 has been a very safe, reliable plane since it was introduced back in the 1980s.
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so it's a very reliable plane. there have been some fatal crashes, but to suggest that this was a fire in the engine and no communication from the pilots to the ground is hard to believe. neil: yeah. that's a very good report. we also know that it got a good clearance on the 6th, just a couple days ago, right? reporter: that's right. it had routine maintenance just a couple days earlier. so nothing showed up in that routine check. neil: amazing. thank you, dan, very much. dan springer in seattle, the home of boeing. so what really happened here? so much we don't know. pilot navy aviation analyst trying to put together what little he can glean. we were speaking during the break. this happened roughly two minutes after takeoff. did you learn anything? what was happening in that two minutes prior? >> i was analyzing the flight data before your show here and looking at the air speed, everything appears normal. the plane climbed at a normal ascent rate, the speed appeared
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normal. normally in previous crashes, you will see altitude and air speed fluctuations like crazy. everything here looked normal. also, just shy of that 8,000 foot, where contact was lost, usually you will see the air speed going down. in this case, just everything ended. there was no communication. that 737, you can climb on one engine. if you have an engine failure or engine fire, that airplane can climb normally on one engine. so if that was the case, the pilot should have had time to contact air traffic control or make some kind of distress call but nothing happened, so basically, just shy of 8,000, everything was lost. neil: so you have originally the iranians and ukrainians saying this appeared to be an engine related issue or something to that effect. the ukrainians have since said no, no, we can't say that just yet. what do you make of that? >> the timing is very suspicious. it's almost like getting struck by lightning. to have two such major events
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happen so quickly and so close together is very strange. you know, i just can't figure that out. neil: talking about two events, the crash of this and then the heightening hostility? >> that's correct. and the key here is those missile defense systems that they possibly have, similar to our patriot missiles. if one of those went astray or one of those wasn't programmed properly or whoever was at the controls there did something wrong -- neil: do we know the timing was similar to the attack on this compound in iraq? >> yeah, it was close. i don't know the exact timing of it. but i mean, they were on guard. nobody knew what was going to happen the next day so i'm sure those batteries were staffed and manned with the anticipation that possibly something big could have happened today from the u.s. and it's very interesting. neil: yeah. let me ask you as well about i don't know whether it's before or after the accident, it was highly recommended that all commercial traffic cease in the area of iran and iraq.
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i noticed the faa has similarly extended that to iraq. but obviously, planes are still flying. now, international carriers can do whatever they want, right? >> that is correct. u.s. flight carriers have to abide by the federal regulations because they are certified by the faa. that is very common for the faa to do in any kind of war situation or even any kind of civil major disaster like volcano eruption. the faa simply is protecting the air space and protecting the aircraft that fly in that air space. so there really should be nothing inferred from the faa putting that directive out. that is common place. that happens all the time. neil: will anyone else ever see this black box? >> it's interesting, i think the pressure obviously is going to be put on iran. typically the ntsb will get involved in major developing countries' investigations as well as boeing. so i mean, the more they keep this black box secret, i think the more it pretty much makes iran look bad. neil: all right.
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thank you very much for that, kyle bailey. again, this happened two minutes after the plane took off from tehran. so much we don't know. waiting to find out more to this point. boeing stock down a little more than four bucks. if not for that, we would be touching record territory for the dow. we are still within about 80, 90 points of that. boeing is a big contributor why we're not there yet. meanwhile, move over, ford and gm. tesla now the world's most valuable automaker. amazing. after this. our retirement plan with voya gives us confidence. yeah, they help us with achievable steps along the way... ...so we can spend a bit now, knowing we're prepared for the future. surprise! we renovated the guest room, so you can live with us. oooh, well... i'm good at my condo. oh. i love her condo. nana throws the best parties. well planned, well invested, well protected. voya. be confident to and through retirement.
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neil: all right. well, investors are chomping on grub hub shares. see what i did there? anyway, they are surging on reports that the company's exploring a possible sale, this whole delivery of food and everything has gotten to be all the rage. grub hub a leading player in that category. we will keep you posted. meanwhile keeping you posted on tesla, simply on a tear, reaching new heights right now.
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the company is now the most valuable car company in the u.s., bigger than ford, bigger than gm. to chief investment strategist keith fitz-gerald. now i know why elon musk was dancing. he's probably feeling that and liking that because so many had dismissed that he would ever see a day like that. what do you think? >> oh, i think you are spot-on. any time you tell elon musk something can't be done or it's impossible, it's an invitation for him to go try. i think he's actually justified to be dancing onstage. neil: yeah, but there are some people like myself who shouldn't. i will leave that alone. what do you make of the fact that whether it's tesla, but so many of the car companies that are going electric in a big way, norway now 42% of the vehicles, electric. china in this deal it has with tesla to do pretty much the same, not in percentage terms, all the major auto companies were showing ford, gm, toyota,
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volkswagen, electric vehicles, lineups that are expanding. is the demand there to match all that? >> i don't think the demand is. i think this is one of those circumstances, neil, where it is the tail wagging the dog. clearly we are going to need to make that shift at some point in human history. whether or not it's now, whether it's got the immediacy, i don't know. what makes musk so distinct, it is musk himself who is the pied piper in this movement. that's what gives the stock such imagi magic. neil: if i can step back quickly, what do you make of the relief rally, whatever you want to call it, from the developments in the middle east and iran, maybe the tensions easing a little bit or maybe they are getting ahead of themselves? what do you think? >> i think the markets are probably reacting about normally, which is a strange thing to say because i remember, for example, when the soviets went into afghanistan, i remember a lot of other conflicts in the course of my professional career, this strikes me as different. we've got a lot more leverage, a
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lot more awareness that the business case for these companies that continue to plow higher is good, despite the fact we've got political rhetoric, we've got a complicated situation in the middle east. so this is an affirmation of normalcy. neil: if i can talk about facebook, its vice president put on the wire talking about the 2016 election and he's convinced that a lot of the facebook ad campaigns actually helped donald trump become president. what did you make of that? >> well, you know, i'm chuckling because i think he's in firm command of the obvious. what's he trying to achieve by making that statement now? that to me is very suspicious, especially given the fact that facebook's posture is one of hey, we can't control that. we can control advertising but we don't have anything to do with political stuff or hot potatoes. neil: i read in between that, there's division in the ranks on this. like there's almost a mutiny going on about how far facebook goes in this area, right?
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>> well, that's certainly my read. i talked to a lot of folks on both sides of the fence and my sense is there is a growing divisiveness within the company. then again, though, you are seeing that within amazon, within google, within a lot of the silicon valley companies that are confusing business with social posturing. neil: keith, thank you very, very much. >> my pleasure. neil: all the major market averages are up. two of them, two of the major ones, nasdaq and s&p 500, in record territory. not so, the dow but we shall see. a lot really depends on iran and its official response to the sanctions the administration wants to increase on them. after this. this is the age of expression.
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neil: we are getting a lot of e-mails in reaction to our guest, the pilot aviation analyst kyle bailey about what exactly brought down this ukrainian airliner that was lifting off from tehran and two minutes later, crashing, all 176 aboard killed. he raised the possibility that some unexpected catastrophic development two minutes into that flight led to this. among those being bandied about, the iranians themselves accidentally brought it down in the middle of that missile attack on this u.s. compound in baghdad. there's no way to know that because they're not sharing that black box. if and when they find it. but it does raise a lot of questions.
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trey is in baghdad with the latest. i want to throw this at you. let me ask you about that. what are you hearing on this plane? reporter: look, neil, a lot of questions in baghdad after many developments last night. we saw those ballistic missiles fired from iran but when it comes to this plane, you have to realize whenever all this information is going around, whether it is iran, iraq or the u.s. troops that are stationed across iraq at iraqi bases, there are missile defense systems and there are preparations for the possibility of conflict escalating. the iranians certainly had different missile defense systems ready to go. we don't want to speculate about whether or not this plane was shot down but i will give you some information that we have been able to confirm about airlines who are trying to maintain their safety records for the region and ensure that there aren't any sort of accidents. we do know that royal jordanian, egypt air and additionally, some other european airlines have
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stopped all flights into baghdad out of concern that planes could be mistaken as targets. again, we do not know if this was the case with this ukrainian flight that took off from tehran, crashing shortly after takeoff, but that is certainly going to be a question for many people in the region as they try to put together the pieces about what exactly happened last night. to describe a little bit of the chaos that unfolded as we got that news in, just before that, we saw those 15 ballistic missiles fired from iranian territory towards that military base in western iraq that does house american troops. according to defense officials speaking to fox news, 15 ballistic missiles were fired in total. ten of them reached their target at the al-assad base and four of them failed, one of them landing in the northern iraqi city of erbil. you have all this information flying around and the big question tomorrow, what does it mean for relations between the united states, the iraqis and the united states and the iranian iranians? we saw the president earlier saying he would like to extend an olive branch to the iranians to try to work out some sort of
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deal and work together moving forward. we didn't hear any condolences from the president there specifically about that airline crash but again, it's a very difficult situation for the americans, as they are preparing for the possibility of having to respond militarily to the iranians. the iranians now today are not only dealing with the fallout of the attack on that iraqi military base that housed american troops, but also trying to understand what exactly happened last night and there are a number of theories flying around as to what could have occurred, whether it was an accidental shooting down of this plane, whether it was engine failure or some sort of technical issue. this is certainly going to be something that boeing is going to try to look into but as you mentioned, the iranians say they will not hand over the black box from that plane so it's a difficult situation when all the facts aren't initially going to be on the table. neil: do we know for sure whether americans were given a heads-up about this imminent attack? reporter: it appears according
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to defense officials who have spoken with fox news, the americans were given a heads-up in a nondirect way. so it appears the iranians actually gave the iraqis a heads-up, according to iraqi prime minister abdel mahdi. he was given notification and immediately protested the strikes, calling it a violation of iraqi sovereignty. it appears the message was delivered in an effort not to put any iraqi lives at risk and create a further diplomatic crisis between iran and iraq. that point, the iraqi forces notified some of the americans. one point we heard out of the pentagon today is that the department of defense already knew based on some of the information and intelligence that the americans do follow in the area that the iranians were likely going to fire ballistic missiles. for outside viewers who aren't really seeing all this information and intelligence first-hand, it was a major,
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major development because in the past, we have seen iranian proxies attacking american forces with rockets and smaller weapons within iraq. firing ballistic missiles from iranian territory definitely racheted up the tension but as the president noted, american forces were prepared for that so they were likely able to go into bunkers and be underground to ensure that they weren't going to suffer any casualties. additionally, it does appear the iranians weren't looking to completely escalate and unravel this entire thing into a larger conflict, but they knew exactly where on the base they were targeting. it's difficult to say whether or not their missiles had the right precision guidance to be able to strike exactly where they intended them to go, but again, no casualties so that's a very positive development out of the middle east. neil: trey, be safe, my friend. thank you again. let's get the read on this from the former secretary of the army. van, if it was calibrated to the degree that the iranians wanted to make sure we at least had an indirect heads-up, that would
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seem to defeat an argument, the reason for the markets to advance, that the rising hostilities have ceased. do you buy that? >> we've got a good early warning system, no question, as the president noted, but something i heard today from a real student of open source intelligence who looked at a lot of data over the last ten hours, and the word that i got from him was that we did get a heads-up, the iraqis of course got the heads-up and we got a heads-up from another country that the iranians communicated to another country. they were obviously looking for a face-saving measure and they wanted to be sure we didn't retaliate. neil: so if i could switch gears, i'm still confused over why the iranians are not sharing that black box for this ukrainian jet crash. it could just be spiting us and not helping an american aerospace company like boeing. i get that. but a lot of signs don't point to just mechanical error. i'm hearing this from guests who
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have appeared on this very show. what do you make of it? >> it doesn't make any sense. of course, ukrainian airlines has revised their statement three times now. no, it's -- people i have talked to believe that if they had to bet, the iranians probably accidentally were behind this. neil: so if that is the case, they've got multiple tragedies to deal with, whether they were behind this or not, with the crash, 176 dead, and then the series of earthquakes that happened soon afterwards, they are hurting right now. >> they are hurting big-time right now. that's why the president said his goal is to get a better nuclear deal with iran. i think the way he does that, i'm glad to see he's going to have increased sanctions today but there's even more we can do. they are feeling the heat. the ayatollah and hefnchmen who rule the country, there's a disconnect between them and the people.
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the president talked about them killing 1500 protesters. they have detained 12,000. they are running out of space in their own prisons, threatened to put some of these people into elementary schools. they have got real problems. as soon as these protests began, around the middle part of november, what did the regime do? shut off the internet. there are things we can do right now to, i believe, and a lot of cyber experts believe this, things we can do to keep the internet up and running for the people of iran. let's dust off the old ronald reagan playbook like he communicacommune communicated with the people of poland. let's have some farsi speakers communicate with the people of iran. that's how we get a better deal. maybe we just might have the outcome in iran like you had in poland. let's keep the heat on and help the people of iran to get a better deal and maybe topple that regime. a lot is going on inside iran. the iranian military has even
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put together recently a psychological warfare handbook to educate their folks on how to break up these protesters and these crowds. they got problems. neil: they do. to put it mildly. van hipp thank you very, very much. some relief going on at the corner of wall and broad. that, you know about. some relief affecting the rest of us, all of us. u.s. cancer deaths are now falling at a record rate. the good news, you're not hearing that you should be hearing and you will, after this. at fidelity, online u.s. stocks and etfs are commission-free.
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and when you open a new brokerage account, your cash is automatically invested at a great rate. that's why fidelity leads the industry in value while our competition continues to talk. ♪ talk, talk neil: all right. i told you earlier if not for boeing, we would be a lot higher on the dow. if not for walgreens, we would be in record territory. the one-two punch are those companies hurting. in walgreens' case, it's disappointment over a 25% drop in profits in the latest quarter. deirdre bolton has more. hey, deirdre.
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deirdre: hey, neil. i'm right in front of this walgreens, as you can see right here in times square, and you mentioned the earnings disappointment but there's really a larger strategic shift that's happening. years ago, when we went and got prescriptions filled, people would buy household items, candy or gum or shampoo or paper towels. that is no longer the case. more and more consumers are shopping either getting all of those things from amazon or from walmart, so walgreens is really facing this retail pressure, if you like, and that's certainly one of the biggest drawbacks, what showed up in that earnings, disappointing earnings quarter. it has tried to keep foot traffic there. they have this partnership with fed ex so if you go to pick up a package or drop one off, they are still trying to get that foot traffic business but it really didn't move the needle enough. from a second angle, they are under pressure from insurance companies that are actually paying walgreens and other competitors such as cvs less for filling prescriptions so that's difficult, too, almost to the
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point where people are saying you know what, maybe this company should be taken private. but it would be such a large ticket, such a big amount to finance. most analysts saying it would be about $70 billion in combined structured debt and also equity. that would actually be the biggest leveraged takeout ever, if it happened, and normally when private equity firms do this, they do this because a company is growing, there's a growth trajectory, and walgreens for the past few years actually has seen declining profits. so there's a lot of strategists saying maybe it would make sense for walgreens to be taken private but there may not be a private equity firm to do it or one that can find partners. also just want to mention one other dark cloud that's really hanging over walgreens. it actually was responsible, according to some results, for about 20% of opioid products that were sold in the height of the crisis. so it is the one lone standout in a federal case.
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it's going to be going to court sometime this year as a defendant but the plaintiffs are alleging that essentially, walgreens was just filling these prescriptions for these highly addictive pills with absolutely no oversight and no checks or balances. back to you. neil: thank you very much, deirdre. meantime, we are keeping an eye on australia. we have not forgotten those wildfires going on there. and the concern that this spreads way beyond just australia. we will explain. she wanted to move someplace warm. but he wanted snow for the holidays. so we built a snow globe. i'll get that later. dylan! but the one thing we could both agree on was getting geico to help with homeowners insurance. what? switching and saving was really easy! i love you! what? sweetie! hands off the glass. ugh!! call geico and see how easy saving on homeowners and condo insurance can be.
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a kohler walk-in bath provides independence with peace of mind. neil: all right. we are getting word right now that apparently, this is coming from our john roberts at the white house, that the u.s. and iran exchanged messages through a swiss intermediary. this was soon after, after the
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missile strike. obviously the markets are responding favorably to these developments. not only the details here but the idea that things appear to have calmed down. "making money" host charles payne on whether that lasts. what do you think? charles: i think so. you know, today, believe it or not, there was other news and adp jobs report, 202,000. you know, we'll see friday, i think friday morning we will be talking about the u.s. economy and can it keep going, can it start to really rebound, because a lot of these issues we had last year seem to be behind us, at least temporarily. neil: you know, you always remind me, that has been the backdrop here, despite these fears that rise and fall, legitimate fear, let's face it, going on in iran and iraq and all of that, but has this dissipated for you? you have to focus on the fundamentals, on how earnings are looking, how the consumer is looking, all of that. the backdrop remains pretty solid, in your eyes, right? charles: the economic backdrop
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here, not only remains solid, there's an argument that we are really accelerating in this economy, driven by that strong consumer, households getting married, having kids, the old-fashioned american growth from the bottom up. it feels pretty good right now. you never know what could come out of left field but right now, it feels like that's on the back burner and we can focus on the united states. neil: thank you, my friend. see you in about eight minutes. in the meantime, some other good news to share with you. some promising developments in the fight against cancer. cancer deaths in general are dropping to their lowest level on record. to fox news medical correspondent dr. marc siegel. pretty good news. is that across the board with all cancers? >> yes, but some are more effective than others. i want to tell you how great this news is. it's three million less deaths from cancer since 1991 than we were anticipating. 29% decrease. in the last year alone, we are seeing 3% less deaths from cancer. the largest decrease on record. why is this -- neil: what's behind it? >> why is this happening?
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it's mostly lung cancer. mostly because we are getting early detection, we have immunotherapy to offer now that we didn't have before, we have better treatments across the board, personalized medicine and the number one elephant in the room, less smoking. the impact of smoking being cut down to 14% of americans, over the years, has decreased lung cancer deaths dramatically. we also, this is very exciting, have new treatments for melanoma. so melanoma spreads, we figure it out, give immunotherapy and are saving lives on the melanoma front. the problem we have is colon cancer, breast cancer, people that are overweight are more inclined to get fat-driven cancers. that we still need to work on. but overall tremendous improvement. neil: this is why i wanted you on remote because i can't suck in my stomach that well. let me ask about the singer adele. she's been losing a lot of weight and has been getting criticism, what is she doing that's got them all upset? >> first of all, we are big
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fans. we are not about to criticize her too much. i will be careful here. i like everything about this diet. it's got kale in it, love kale, it's got green tea, apples, fruit, dark chocolate. it's got blue berries, turmeric, a natural anti-inflammatory. one thing i don't like in it, red wine is allowed. i love red wine but i can't go on tv and say red wine is -- neil: she's losing a lot of weight so it looks like healthy stuff. right? >> it's healthy but you have a big calorie restriction at the beginning, the first week, which i'm not a fan of. but i love the foods in this diet. here's the theory. there's a gene in the brain, the sirt-1 gene that causes skinniness, directly. this gene says skinny, skinny, skinny and these foods turn it on. i don't know if i believe that but i like the foods. neil: it hasn't visited my body. let me ask about this. you warn your patients just eat
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sensibly and exercise. that's what it comes down to, right? >> that's what i think. i like intermittent fasting where you don't eat at night or much on weekends. got to exercise regularly, cardiovascular exercise, small portions and not a lot of carbohydrates. a glass of red wine occasion occasionally. neil: skinny or not skinny, adele good, right? >> she's magnificent. neil: more after this. listening and observing are critical skills for scientists at 3m.
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one of the products i helped develop . . i envisioned what it's like for babies to have diapers around them. that's what we do at 3m, we listen to people, even those who don't have a voice. at the end of the day, we are people helping people.
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neil: australian firefighters working around the clock to get some control over these fires. some days are better than otherses. fox news's kitty logan with the latest. reporter: there has been brief rest fight for firefighters on the east coast. cooler conditions, thunderstorms and rain that has given opportunity for some people to
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assess damage to their properties. estimated 2,000 homes have been destroyed and 26 people are known to have died so far. countless wild animals have been killed. koalas are heart hit. they can't out run the flames. as much of survival as much of their habitat has now been destroyed. amidst all this, the prime minister, australian prime minister, scott morrison is facing fierce criticism all around handling of the crisis, many calling on the australian government to take real action over climate change. wildfire season is devastating for australia. high temperatures, below average rainfall sparked a drought and it is not over yet. there are still 100 fires burning and coming up there is more hot weather forecast, more windy conditions. that is still could spark new
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fires. back to you. neil: kitty logan, thank you very, very much. before i hand things over to charles payne, a big development from her magi at this's kingdom across the pond, nothing to do with brexit, having to do with harry and megan, duke and sussex apparently leaving royalty and many reflections and discussions we choice to make a transition, starting to carve out a progressive role within this institution. we intend to step back as senior members of the royal family, work to become financially independent while fully supporting her majesty. particularly with your encouragement we feel prepared to make this adjustment. they have not indicated where they are going to go, what they are going to do. they are technically in the royal family but to the actively involved with her majesty. please accept our deepest thanks
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for your continued support. charles payne follows market implications for all of this. no doubt they will seek his financial advice. this is big development. harry and megan stepping away from the royal family and day-to-day pressures there m. charles: market dropped 20 point as you read that. neil: neil: not surprised. >> somewhere an avocado stock is going through the roof. neil: touche. charles: good afternoon. i'm charles payne. this is "making money." markets are on fire showing more resilience after being roiled last night after iran's attack on u.s. bases in iraq. >> our great american forces are prepared for anything. iran appears to be standing down. charles: president trump facing one of the greatest tests of his presidency. i will go in depth i think this is his moment. plus

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