team fox coverage begins, gerri willis of the fox business network. gerri, today's lost was the ninth worse lost. >> it went to paris. france worries overnight would lose a.a.a. credit rating. s&p said no, we are not taking that away. the focus changed to french banks. they sold off. what will be the impact on u.s. banks? our market got crushed. >> shepard: as a lot of our viewers probably might expect, gold hit another record today. traders didn't shy away from oil, either. >> no, no. oil popped as well today up to 82 bucks and change a barrel. not to worry about demand. gold bursting through the previous high. $1,801 today. it settled at 1784. people are looking for a safe haven out there. >> shepard: how real, gerri, are concerns about the possibility of a second u.s. recession? >> well, very real, indeed. keep in mind that the economy doesn't have to go into recession just because we have a stock sell off. one of the biggest sell offs offer in 1987 did not result in the economic retrenchment. but the big worries behind these moves today is lack of

jerry willis and host of the willis -- gerri willis and host of the willis report graces us.l happen? >> we are starting to get some markets saudi arabia saturday night opened 5%, ended 7%. israel stock exchange opening down dramatically. we are worried about a cascading of markets. asia, europe trade down and we open tomorrow morning and may follow suit. that's what we are worried about and watching. we'll be talking this tonight. >> heather: one of the phrases used earlier with reference to israel said it opened with investors dumping stocks like hot potatoes. should we expect more of the same? >> s&p downgraded our debt, as you know. treasurys critically important used by professionals, individuals. when standard & poor's said that investment wasn't as good as it used to be it introduced nervousness into markets. they don't like when they can't predict what is happening next. some folks will be selling. maybe it will be an overreaction and in a couple of days we'll build back. we have to wait and see. >> heather: immediate reaction versus a long term consequence, what do w

. >> gerri willis live in new york city. let's start with the down grade the u.s. debt and now fannie and freddie. what does this mean to all of us? >> those u.s. treasuries still the best house on a bad block. federal government only paying 2% and change for its debt. that's low low low. freddie and fanny also downgraded. look, they operate on the basis of taxpayer dollars. don't know how they will do in the future. it's amazing they even had a aaa rating to begin with. >> shepard: bank stocks got hammered. bank of america lost 1/5. morgan stanley off 14%. what is happening there? >> well, bank of america sued by a.i.g. over bad mortgage investments. morgan stanley saying and this is from morgan stanley itself saying this credit rating cut will hurt them, will make life harder for the bank. so the entire seq. for sold off. all banks doing worse here. bank of america doing very bad, indeed. >> and gerri, as wild as the stocks have been commodities including oil, which is way down and gold which is way up have been making major moves. >> right, oil down and dramatic

gerri willis from the fox business network is with us now. that doesn't sound like a big deal but i guess it was. >> it sure is a big deal. the first response from that report from the fed was hey they say the economy is weaker than we thought. we believe it's weaker than we thought. so they sold off. good news here though interest rates will stay lower through 2013. what you saw was the biggest dissent we have ever seen from the fed. three of the fed's governors saying i don't agree with that. we should talk about when we should raise rates. big dissent. that was a surprise. >> shepard: after mauling it over a bit, investors after selling off seemed to think it was a buying opportunity. >> they sure did. 640 point change in direction. a really big rally. shocking, surprising. as many as stocks rose on the new york stock exchange for every one that fell. there was 12% profit increase for these companies that has been baked in and that's one reason why people were looking for value here. these stocks are not trading on their fundamentals. they

gerri, thank you. >>> monday-thir -- friday -- monday-friday, the willis report, 5:00 eastern time, don't miss it, gerri will have a full wrap as we move throughout the day today. thank you. >> thank you. martha: let's hope it's better by the hoim gerri comes on later today. keep an eye on the markets. >>> in the meantime, a case of vandalism that has spiraled into a life threatening situation for one man, he's an ohio business owner and he believes that union organizers are responsible for shooting him in the arm outside his own home, after they trashed his property. john kings owns a nonunion electrical company, a successful one in michigan, and he says he woke up in the middle of the night at his home and he caught somebody, he saw movement, he went out, saw somebody trying to slash his tires and scratching scab on the side of his car. this was a picture taken in the driveway. that's when the suspect then pulled the trigger on him and police are in the middle of investigating this case. we have seen escalating labor conflict in this country, at the same time that the influence of union

gerri willis, stephen moore, thanks. we'll see what the federal reserve says after their meeting. what do you think? how concerned are you about the great stock drop yesterday? log on to fox news.com/"america's newsroom", take your daily poll, vote online now, we'll bring you the results later in the show. bill: that is remarkable -- that was remarkable in new york yesterday. we had such a drop and so few were talking about it once you left work. it was almost like we've been there, we've seen it. >> alisyn: i think that's what it is. bill bi-it's bad. don't remind me about it. alisyn: i think we've gotten used to the roller coaster ride, and let's hope today that the ride -- that the roller coaster cart chugs up the hill. bill: what a shame that we've gotten used to it. okay. we'll see. open for business. >>> now to four days, and a key republican straw poll in the first caucus state of iowa. there is a name not on the ballot that could become a big story on saturday and karl cameron has that -- and carl cameron has that. it must be iowa! what do you expect from rick perry, the t

and now to gerri willis on the fox business network. now that the deal is signed, what do the markets appear to focus on? >> fundamentals. the economy, as you mention and focused on what the economy will do. u.s. treasuries are rallying, that is go news if you are worried about the credit rating. people are bying treasuries. one of the big three credit ages is saying we will not downgrade but we have yet to hear from s&p and moody's. the numbers you mentioned, the commerce department numbers are bad, consumes are not spending, the worst news in 20 months. that is something people really watch. >>shepard: we used to talk about the economy and we reminded it is 70 percent of the entire economy is consumer spending and the white house says it will turn attention now become to creating jobs, something, frankly, we have heard before. >>guest: many, many, many times and it has counted the number of times obama has said he is switching back to jobs, some 14 times. the unemployment rate is 9.2 percent and the big jobs number is on friday and it

we'll hear from neil cavuto, charlie gasparino and gerri willis throughout our show to help us understand this. bill: and all of this a very unhappy birthday president for president obama. how did the white house react to what happened yesterday? here's the press secretary, jay carney, well before the 500-point close when the dow was at this point when the question was asked, the dow was down about 300 points. >> stock market took a steep dive today which, i'm sure, you saw. any reaction to that? >> well, no. i don't have a specific reaction to the market. markets go up and down. bill: all right. now, president obama was going to -- well, he'll speak later this morning. in all likelihood, he will address the jobs picture, the economic picture, the jobs report that came out. is the white house doing enough? how many more bullets does it have in its gun to fire at this economy? our political panel weighs in on all of that. a great debate coming up for you, fair and balanced w a great team here on "america's newsroom." alisyn: is this double dip recession we've been fearing? some economists

and now gerri willis is with us and says the agencies are responding. >>guest: they have no final decision but s&p 500 might downgrade us if they don't like what they these but the deal is not final so they are not saying. and moody's could give a "negative outlook," on the rating meaning we could come back and downgrade you later. and a third company is not happy, either, and would like to downgrade us and will look at the devil in the details in all the details of the spending and savings and see if they like what they see. >>shepard: markets start new jersey started in positive territory. >> you can expect mortgage rates and interest rates to go up if with get a downgrade. >>shepard: a little bit of a recovery in the last few minutes and we will see how it ends. thank you, gerri, with her program at 8:00 east days eastern, and 4:00 in oxford, on fox business network giving you the power to prosper. and a lot more of the debt ceiling deal politically and economically. stay tuned. [ female announcer ] this is not a prescription. this is kate. [ kate ]

joining me with reaction are the co-host of the five eric bowling and from the fox business network, gerri willis. no truth by the way that sean was seen at jfk with a suitcase full of cash and a one-way ticket to the case pan islands. things are not that desperate yet. become to the president's assessment this has always been a aaa nation and always will. >> it all has been, women it always be? absolutely not. s&p is looking at the fact that our gdp, 14 trillion our total debt four -- 14 trillion, not sustain able. we have to get in. fighting s&p is a recipe for disaster. >> right not responding seriously to what they are telling us about the economy eric? >> i would like to differ with my colleague gerri. i think we are aaa. if there is any way to be a quadruple a, we will be. >> how can you be quadruple a when you've got 15 trillion dollars worth of debt? >> credit rating agencies are supposed to rate your ability to pay the interest on the debt you have. we have around 29 billion dollar interest payment, per month. we take in as a country 175 to 200 billion dollars, per month. which means we

gerri willis tops the news tonight live in the new york newsroom. are the markets back to focusing on jobs or lack thereof. >> you bet they are. you mentioned one report. there is another the adp report that the payroll's report actually showed improvement for july up 814,000 jobs. when you look for all important job's report we are expected to gain 85,000 jobs from july. the unemployment rate will stick at 9.2%. that is not good news. we need at least 150,000 jobs added a month just to keep pace. if you really want to dig your way out of this unemployment debacle, you have to add something like 400,000 jobs a month. so we are way behind. >> shepard: what about the credit downgrade or the possibility thereof. are we out of danger. >> the most negative credit rating agency standard and poor's and s&p has yet to way. in they sort of boxed themselves in here. they say they want a credit downgrade if we don't cut more than $4 trillion. we have not agreed to do that still waiting to hear from s&p. moody's and fitch, however, keeping us at a a.a.a. credit

gerri willis of the fox business network is with me to put that into perspective gerri, why is morgan stanley saying this? >> it makes a whole lot of sense. after seeing what's going on in europe, those markets selling off overnight, those worried about the debt there, there was talk that france might get an s&p downgrade t. hasn't happened but even the efforts from angela merkel from germany and sarkozy from france, coming together, talking about what happens next, there's no fix and our products, a quarter of our manufacturing products go to europe, worry that if europe falls into recession we will, too, morgan stanley basically said hey, we think there's a possibility, a big possibility, of a global recession, not for one year but for two years. megyn: how will we see that here in the snuns we're already suffering under 9.1% unemployment, we're talking about the housing numbers and so on. how will we see the united states further impacted if that happens? >> well, we're already seeing all the signs of a recession. we've seen our stock markets sell off, treasuries are selling like h

and we'll see you on the willis report later today on fbn. >> thank you. bill: thank you gerri. alisyn: we have breaking news, speaking at this hour is britain's prime minister, at the house of commons, in front of parliament, and he's vowing to bring rioters to justice after his country's worst unrest in decades. there's david cameron, addressing a recall session of parliament and saying that police have made 1200 arrests, and will continue going door to door, tracking down more suspects. this violence appears to be simmering down, nearly a week after a deadly police shooting sparked all these protests. those turned into riots and then spiralling out of control in london, and cities around england, four people died in the chaos, one victim's father is peaking for peace. >> last night, we lost three church members of our community. they were taken from us in a way that no father, mother, sister, brother, should have to endure. today, we stand here to plead with all the youth to remain calm for our communities, to stand united. alisyn: police say the 21-year-old yim and two other

gerri willis is anchor of the willis report and joins us again.f all, who do we have to thank for this? we would like to say thank you. >> we have a big market sell-off. gas pricing down. crude closing below $85 a barrel that is good news. for folks who are buying gas week to week and paying a whole lot, that means gas prices are going down. my sources are telling me, 10-15 cents, maybe as much as 25 by labor day. a little hope that are dealing with 9.1% unemployment and food rising higher and higher. >> heather: definitely in the summertime, you expect gas prices to go up and holidays you are traveling, it can happen that way. do you see this trend continuing after labor day? >> i'm not sure. we're seeing prices come down a little bit here as we go into labor day which is good news. if you are going to be driving on the holiday, beyond that it's anybody's guess. >> it's translating to other areas. when people hit the road, does that mean we have more positive outcomes in other areas. >> it's a good thing. people spend money. there are other thing

. >> gerri willis said. thank you very much. we don't have a lot of time but i want to go to the audience and bring you in. let's take a round of three questions. keep statements to a minimum. let's go right to the questions. identify yourself by name and organization. of the question is directed to a specific panelists feel free to direct it to them. otherwise we will assume it is for the panel. we will go to this gentleman. >> thanks. i am matt schuler from inside u.s. trade. question for the panel. kind of polluted to in mauricio's remarks. in the past couple weeks brazil came out with its own new industrial policy and i am wondering, it seems this policy is aimed at supporting these industries that have been impacted by cheap chinese imports. i want to begin an assessment from the panel as to whether you thought this policy would be a good idea and the second part would be whether you think we will see more policies like this in latin america, either aimed at supporting domestic industry or using a trade policy as a way to p

gerri now with her two cents anchoring the willis work. you talked about this during commissioner.ot $50 million but if someone has $50 million to put in with the bang of america they say, thank you and ... >> you pay us for the privilege. >>shepard: it is cheaper in the shoe box. >>guest: right thousand for big people. not you and me and normal human beings but if you want to put a chunk of money, the g.d.p. of istanbul not bank, that is what is happening. that is already happening this europe. >>shepard: since you have been speaking we are down 40 points off 440 for the day, the kind of sell off we have seen in the past where it is not about fundamentals or corporations just announcing earnings, and they may loads of money but this is a flight to liquidity. people are getting out of gold and financials and pulling money out of the market and we are collapsing. >>guest: cash is king. people want to be liquid so they are not exposed. you described how gold is down. on a day like today you would expect gold to be higher because it is usually safe. the one good news treasuries, u.s.