versus the u.s. dollar this morning, the news taking toll in the u.s., futures turning lower but now expecting higher open in the broader averages, the other major indices higher across the board after declines yesterday, dow industrials, down 206 points, almost 1%, the s&p down 20 and nasdaq at the close yesterday almost down 1% 65 points lower n asia overnight, markets mostly higher, with the exception of japan, nikkei average down quarter percent, best performer hong kong up 1.75% in hang seng index overnight, we are watching the price of oil, crude oil on decline, oil back down to 66.06 a barrel, well, facebook fallout, bombshell report, mark zuckerberg and sheryl sandberg share the company's crisis, decisions sparking controversy, we will go behind the curtain

there. earning season rolling on, this morning we will wait for wal-mart, we will bring you the wal-mart numbers as soon as they hit and that may very well set the tones. all the stories coming up, deidra bolton and morgan ortegus. >> good morning. >> happy to be back. >> it's a slowing-global economy, people are wondering what that means, i think still pretty strong. maria: yeah, still pretty strong. the signs of slowdown keep coming up in different areas whether it's oil or apple or revenue warnings, we will talk about that this morning, joining the conversation texas congressman roger williams is here this morning, herman cain along bob wright, ge, obviously down 50% this year, people's

corporation founder chairman and ceo don pebbles. investors are watching negotiates, two of british prime minister theresa may cabinet members have resigned after may won backing of brexit deal yesterday. joining us right now chief investment officer ben phillips. >> thanks for having me, maria. maria: what's your thought on slowing economy and manifest in market volatility? >> i think it's a valid concern, we see china disrupting supply chain, and so i think that's what's driving the markets right now, we are seeing mid western ceo's saying they can't get certain components they sourced from china for two decades, we saw -- pardon my german. we are seeing the issues where they are starting to spark up and it's strategic on china's

part where they are putting pressure. >> do you think it's complicit agreement with the people is backfiring, the consumer class was in power and trade deals and tension with us in china seems like that's breaking. >> the chinese, you're talking about? >> yeah. >> they are starting to feel the pressure too, you are seeing reflected in china stock market, we think there's more to go if this continues to escalate, we think u.s.-risk assets aren't off sides here. there's a chance that u.s. stocks see downturn here if we don't reach some sort of agreement, positive momentum at g20 at the end to have month. >> what's the timeline of chinese leadership? decades, centuries, but a lot of troubling economic signals there -- >> yeah. >> auto market declined for the first time in decades basically since economic reform came to china.

>> yeah. >> how much pressure is xi jinping under to get deal with donald trump this month? >> he didn't think tariffs would escalate this quickly and thought he could look trump first presidency and 2020, he had seen the pressure turn up. >> we heard from vice premier making comments, xi jinping basically leadership weakening, pr weakening. >> vice president said that he's meeting with pence later this month. that's a precursor to g20 meeting, if that goes well and you see positive talks, you know, they haven't been talking since july. maria: are you seeing the flows react to any of this in terms of flows in your business? >> flows in our business, we are seeing they haven't really picked up so they've stabilized. maria: what's the sentiment from investors based on your business. >> our understand asking investors are concerned that

china is the biggest risk, now, that's a change, there was a survey, 68% of the individuals surveyed in invor conference said china and global trade is biggest risk to u.s. markets, it's become consensus, it is the biggest concern in the markets. >> sure, every time we talk about it and there seems to be risk where u.s. and china aren't on the same page dwoa see market selloff, that's been the pattern for the last 6 months, actually back further. >> how do you price given political uncertainties all around the world. those of us following brexit we see the jocking with europeans and brits pretty intense, how do you price in the massive geopolitical risks that are going on around the world? the u.s. is stability now? >> well, we have seen in data from bank of america is that hedge funds have reduced their risk, we are see derisking, they

further derisk in october we saw rotation starting, momentum names, some rotation in more defensive names, we are seeing that start to occur. maria: does that make sense to you, allocation shift further into fixed income as rates rise? >> we run policy etf, catalyst. >> what policy would drive markets in the new year? >> health care is one that will continue actually split congress, repeal and replace is gone, health care is biggest overweight, defense appropriations, makes sense, defense spending coming up with geopolitical escalation makes sense that defense might spend further. be aware of china global trade. three areas. maria: when you say health care, let's talk a bit about that, what might happen in this new congress and what sectors of health care will get impacted? >> well, it's really continuation of the aca and

obama build-out, expansion, medicare medicaid expansion driving this, it's good for aca insurers, they had a bad day but rallied after midterms, they have been going up and down, our view a selling, they are up 30% plus year to date, profit taking their probably, but hospitals are in better shape too now because they have an expanded payer debt, they have lower bad debts. last component of that that we like is the health tech, it's about improving efficiencies, driving better patient outcomes which ultimately lower costs for the whole system, we like the whole trifecta in health care. >> even for midterms health care was the number one issue, i was surprised that came from our own internal data, more important than taxes and more important than economy, health care much more than any other issue. >> as it relates to defense spending the president's office

management proposed significant double-digit increase and we are seeing democrats in the house saying that if you want any amount of defense spending that you will have to offset it with domestic spending, therefore any sort of talk about the deficit and 17% that we added in the past year, is that just debt in the next 2 years? >> washington has showed fiscal we straint. >> on either side. >> our view that it continues to be the dollar for dollar increase. even if it's 700 billion in defense spending, that's a strong number historically, if there's any sort of escalation anywhere in geopolitical world that will cause increase defense spending, we think, it's a pretty good outlook for defense and we agree with you dollar for dollar increase. maria: markets are not word about the debt, doesn't seem. >> not yet, one day they may wake up, we will pay a trillion dollars, trillion dollar deficit

this year. maria: breaking news, saudi arabia saying 11 suspects have been indicted in the murder of jamal khashoggi, saudi prosecutors requesting death penalty for 5 of the suspects, morgan ortagus, your reaction? >> world leaders have made it clear to saudi arabia that someone would be held accountable. nobody thought it would go all the way to crown prince. so far u.s. intelligence agencies are backing that the crown prince was involved here. i don't think we will ever know the truth. that's what this administration wanted and what the world wanted. maria: so now -- is this supposed to be the issue that allows us to move forward and beyond this issue with saudi arabia? >> i think so, something that i would keep my eye on, maria, many national security democrats have called for saudi arabia to end war in yemen because of

human atrocities there. the reason that we have a war in yemen is because iran is for a t the houthis. so that is something that to watch closely, you are starting to see democrats move away from saudi on yemen and they will continue to hold the murder, jamal khashoggi murder that perhaps we don't need to sell this amount of weapons to saudi arabia. maria: final word from you, would you put money to work in this market? >> we are cautious, more on short side and looking to raise cash. maria: are are you short? >> we are not short in portfolio currently but look potential adr's, u.s. companies that are exposed to supply chain, we will watch how the g20 plays out. maria: that's where the conversation should happen between the president and president xi, facebook under fire this morning, shocking new report details how the company's

top executives dealt with the russia meddling controversy. fallout coming up. snapping out of it, oil ending 12 session losing street, we are back down below $60 a barrel. we will take a look next.

maria: welcome back, vice president mike pence and russian president vladimir putin shaking hands at summit in singapore, lauren simonetti in headlines now. lauren: world leaders crossing paths as the vice president address association summit, putin telling reporters he discussed the trump administration's plan to exit nuclear arm's treaty who says they also discussed relations

with iran, discussions now underway for president trump and putin to meet on the sidelines to have g20 summit in argentina, that's at the end of this month, we will take a look at this, shares of pg&e, california's biggest utility, dropped over 20% yesterday alone, the company stock is now down just about 50% over 5 days, residents suing utility for negligence blaming for wild fire, the death toll continues to rise in northern california where the monster campfire has now claimed at least 56 lives and desperate searches underway for missing people, authorities say more than 130 people are still unaccounted for, nearly 9,000 homes have been destroyed. well, politics left at the door during last night's 52nd annual cma award, instead a night of celebration and remembrance.

garth brooks opening with tribute to victims of shooting in california. >> 12 individual that is we lost far too soon at the borderline in thousand oaks, california, tonight let's celebrate their lives, let music unit us with memory. lauren: brooks led audience in moment of silence as names were put on big screen, big winner keith urban, urban gave emotional acceptance speech, listen. [cheers and applause] >> baby girl, i love you so much. i'm shock beyond shock. girls at home, i love you, thank you for supporting daddy. lauren: other winners including casey for album of the year, carrie underwood for best female artist.

politics not there. maria: that's good, that was a good show. lauren: great show. maria: nice to see politics not involved in country music. >> great talent, performers were there. yeah, good night out. >> i was in nashville on tuesday so there was so many people in town. it was great, i went to charity event tuesday night in nashville with a lot of country music song writers, such a great town, i want to move there. >> wow, amazon is putting -- >> they were talking about that. everyone is buzzing about that. maria: meanwhile amazon move to virginia and new york city really getting a lot of backlash, what do you think about that, james? >> at first i wondered like why would you pick new york city, you can probably go anywhere you're the most admired company but then i thought if you can have new york without the tax burden, well -- maria: yeah. >> how do i get that gig. >> $3 billion of tax breaks, why, why is this not just going to lower rates for everybody?

maria: yeah, is the criticism from the alexandria ocasio-cortez's warranted, macy's didn't get tax benefits, what do you think about that? >> well, if she was saying let's not give the break to one company, let's lower rates for everybody that would be fine, she wants to redistribute it, she wants unionization of amazon's workforce, she opposes new neighborhood long island city, i don't know why people should be opposed to the economic development. >> they are building in an area that was considered a zone, redevelopment zone. >> it doesn't mean -- >> it's true. i've been over there, it's beautiful, honestly. that's my biggest regret not buying real estate. >> there was people on the right, though that came out against the sort of criticizing as well calling it corporate cronyism. it wasn't just the left.

it'll be interesting -- >> but he will have a helicopter >> poor guy. maria: we will talk more about that, when we come back crypto crashes, takes shumble, why they think fortnight is key for recruitment numbers, back in a moment.

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streak ever after president trump called on opec and saudi arabia to lower oil costs while keeping productions steady, joining us right now price future group analyst phil flynn, phil, good to see you this morning, thanks for joining us. the selloff in price of oil, bear market territory, first give us 30,000 feet, what is going on with oil? >> you know, i basically think that president donald trump is dictating policy in opec and i think that a lot of this drop has to do directly with him. he got the world's oil producers all geared up for the iranian sanctions that never really happened and on iranian oil exports, he pulled the rug under them and raised production and the market got caught, everybody thought we would have a shortage and now they think there could be oversupply and the other thing you can't discount a little bait is weak economic data coming out of europe, you had weak data in japan, weak data in germany, so there's a

concern that we are going to see a global slowdown for the demand for oil. maria: right, because oil typically, you know, indicates that, indicater for the global story and you mentioned the president, dierdre, he tweeted out this week, hopefully saudi arabia and opec will not be cutting oil production, oil prices should be much lower based on supply. what did you -- i know you covered oil? >> yeah, we were talking about the supply issues and phil, yesterday, of course, you were saying that traders seem to be moving on this idea of oversupply, right, like we are producing record, we talked 11.6 million-barrels last week, saudi arabia is pumping, russia is pumping, so all of that was keeping prices low, it's $56, new psychological barrier is that what people are looking at? >> i do think there's a danger, dierdre, you look at where we were a month ago, we were worried about undersupply and all of a sudden we flip a switch

a month later and we are talking about oversupply, you to be really, really careful here because of volatility that oil producers don't make decisions that are too rash. i'm very disturbed because i keep hearing people use the word oil glut. we don't have an oil glut, we had one in 2015, supplies were 50, 60% above normal, we had a huge build in crude supply overnight according to american petroleum institute, almost 9 billion-barrels, that only puts 2% above year average, globally they are barely above average so if we are wrong on this economic slowdown and producers cut back too much, we could be undersupplied going into winter. >> phil, james freeman, wall street journal, speaking of that undersupply possibility we've read a lot in the last year about bottlenecks getting u.s. oil to refineries, pipelines in

permian basin, can you give us status report on bottlenecks in u.s. production chain? >> we are starting to see some of them lift a little bit, we have a new pipeline come on just last week, really in an anticipation to replace iranian oil that they didn't have to do, we expect in the fourth quarter of this year, we will see that open up quite lightly, i have to caution everybody, if this oil price continues to fall, there's going to be less incentive for the companies to get rid of these bottlenecks because they're having a very difficult time making money at these price levels, we have to be careful, you know, i know donald trump wants to tweet down the price of oil because it's good for the economy and that's a great thing but he has to remember if he tweets it down too far it will hurt energy producers. maria: what are you expecting in terms of the price here knowing that, you know, the supply is there from the u.s. and this is not an overnight story, this is

going to continue, you know, showing that there is supply from the u.s. and there is supply elsewhere, i'm surprised that the iran sanctions did not move the market the other way. >> i agree with you absolutely. listen, u.s. energy story, it's changed the shell producers, the problem is -- is that the drop in price could actually increase supplies quite dramatically and the u.s. shell producers, why they've done great job raising production at historic level, they are not good at raising very quickly to meet surge in demand. if they we get surge in demand we still have tight market going forward. maria: we will leave it there. phil, good to see you. >> good morning, thank you. maria: we will take a short break, border battle heats up, first wave of asylum requests expected today as more troops line in the border, coming up we will take you there. the new report on how facebook top executives dealt with controversy as stocks and

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the pursuit of allergy-free peanuts. and mobile payment reaching new markets. this is strategic investing. because your investments deserve the full story. t.rowe price. invest with confidence. maria: welcome back, good thursday morning, thank you so much for joining us, i'm maria bartiromo, thursday november 15th, your top stories right now 6:31 a.m. on the east coast, markets are higher this morning, take a look, futures indicate gaiting gain of 40 points in dow industrials, up 36 on nasdaq this morning, half percent higher this after markets finished lower yesterday, take a look at the damage at the close, dow jones industrial average gave up 200 points, s&p was down 20 points, three quarters of a percent and nasdaq also down almost 1%, 65 points lower on nasdaq yesterday. in europe markets are mixed, cac quarante is down 20, dax index

down 5 points. overnight asia, mostly higher, nikkei average down quarter percent but chinese market did well as did hong kong, hang seng up one 3 quarters percent. tension at the border, first request of asylum expected today, we have the latest coming up. worries over ge, general electric's mounting debt, we will talk with bob wright later this hour. plus crypto crunch, bitcoin breaks the psychological 6,000 barrier, we are taking a look at crypto currency as bitcoin is lower. why the u.s. army is turn to go fortnite to help boost its rank, stories coming up. first story half an hour, new crisis on facebook, headline reads this, delay, deny and deflect, how facebook leaders fought through crisis, the story

details how ceo mark zuckerberg and coo sheryl sandberg dealt with abusive content. >> the wall street journal even publishing that facebook employee morale just in a year has gone from the 80's to the 50's. i think the company is struggling and we were talking about this, the fact that it is gone from a tech company which is how it was built to a grown-up media company, so i think what we are seeing really is teenage angst, they are having a tough time on issues that are not easy, that's their job to do, going forward i feel like facebook needs to buy and develop another company, their success right now brand wise is coming through instagram, whatsapp, messenger, i think the overall parent brand probably has to step back a little bit, get organized internally and move forward with another --

maria: they didn't see themselves as media company initially, james. at this point that's one of the most powerful companies in terms of media. people get their information from facebook and twitter and other online -- >> whether they want to be or not they are media company. >> the challenge -- they have been treated under the law since the 1990's more favorable way than normal media company which is why, i think, they can expect some changes if they are censoring viewpoints they don't like, on this times story, i think we should keep in mind here that "the new york times" and other media outlets like hillary clinton enjoy russian interference as the decisive event of the 2016 election. maria: right. >> the fact that facebook didn't wanting to along with that highly questionable narrative i don't think should be held against them. >> right. >> they have a public effort in washington to give people perspective.

you recall a lot of that effort was to say -- was to show people how small a percentage of their overall business and traffic, sort of bogus russian boot messages were, i think it's absolutely valid for them to point out the facts which did not necessarily support the narrative being promoted by democrat senators like warren, et cetera. maria: they we wanted to tie donald trump to it also, obviously no evidence of that. >> i think the question is not when -- is regulation coming but what kind. facebook, google, everybody knows that it's on its way, me, dagen, many others have called for the social media companies taking more self-regulatory approach which might be, you know, too late at this point but i think what might be in facebook's favor like many industry that is we are looking at is divided congress, can you get the democrats in the house and senate republicans on the same page as it relates to regulation, i think that that's

a tough call but that would have to come in broader package as it relates to election security at large. maria: that's a good point r democrats going to go along with this. new interview he reiterates comments likening facebook to cigarettes how addictive they r interesting analysis there, james, in terms of regulation, is it the fact that they are incredibly powerful that they are going to be forced to get smaller or is it the fact that they are censoring conservative ideas which we know they have done? >> yeah, it's amazing that times' story, apparently there was intern allback lash when zuckerberg said, no, we are not going to sensor donald trump's tweets. i mean -- >> facebook post. >> no tweets, facebook posts. a media company should not be in the business of doing, right, so -- maria: the fact that they said that shows so much.

>> it's interesting. i really think to me the danger is regulation here because i worry that you do get a bipartisan deal with facebook and the other social media giants that basically puts up barriers to new competitors, freezes the market as it is. i don't think we -- as any problems as people may see in facebook i don't think a federal regulator is the answer, i think what you want is keep pressure on them not to do what they appear to have been doing in terms of limiting conservative voices. maria: maybe competition comes in and that fix it is issue. >> senator graham and others have sort of said consistently in line of questioning that they question is facebook a monopoly, something that you will see senate pursue that line of questioning against them and don't forget -- maria: look at google. google does 90% of all search, when you're looking at monopoly. >> not just facebook, that's a great point, maria.

i do think something we should watch when the mueller report does finally come out, i think there's probably going to be a pretty significant part of the report on social media at least that's what has been reported, who knows what the mueller report will actually say but that might drive the conversation again to have social medias come back before congress if it's mentioned. >> i think it's public opinion and competition that will keep the companies in line, i was in dc when mark zuckerberg was testifying in front of congress, technology is changing so quickly, whatever regulation, let's even just say for argument sake you can find the perfect amount of regulation, by the time you implement, the needle would have already moved. >> yeah. >> do you take the stance that's, for example, in germany, where you have hate speech and then you send people to jail over hate speech. until we are ready to ignore the constitution and do that, i think it should not -- self-regulation makes more sense than government regulation. maria: kanye west posting photo on twitter yesterday showing him

singing karaoke with mark zuckerberg. >> you remember when kanye went on big rant asking zuckerberg for a billion dollars on twitter, so maybe he finally got the money. maria: yeah. >> i have $53 billion.i sing well. maria: short break, when we come back michael vaenatti, attorney and critic of president trump released from jail, arrested yesterday on domestic violence charges, we will talk about that and bring you details on it next. plus bitcoin comes tumbling down, crypto currency crashing under $6,000, so far bitcoin has lost more than 60% of its value this year alone, back in a moment

maria: welcome back, stormy daniels attorney michael avenatti out on bail after being arrested for domestic charges, lauren simonetti with the details. lauren: avenatt, lawyer for stormy daniels is denying those charges. >> i have never struck a woman, i never will strike a woman, i am looking forward to a full investigation at which point i am confident that i will be fully exonerated.

lauren: avenatti arrested after confrontation with los angeles apartment with unidentified woman, posted 50,000-dollar bail and facing felony charge but let's see if he gets due process after kavanaugh, the first wave of kavanaugh -- caravan begin to go arrive in tinl woon, some actively trying to get appointments with border officials in order to make case for sanctuary all of this as jim mattis and kirstjen nielsen visited the border, mattis defending the deployment of thousands of troops there. >> it's very clear that support border police, border patrol is necessary right now. lauren: close to 6,000 troops on the border with more than 7,000 expected as the migrants get closer, the defense secretary emphasizing that he doesn't expect troops to come in direct contact with migrants adding that the only military personnel who will be armed are the

military police. and major fallout from a credit crunch at general electric is being felt across wall street, ge used to have a aaa rating but now, yeah, bonds have tumbled, ge selling parts of the company to raise cash, reduce debt, also announcing plans in the week to sell part of its stake in baker hughes. and this, the army is getting into force, failed recruitment goals, it's looking other ways to raise interest with today's youth, the army is interested in having soldiers represent the branch in competitions as a way to get the brand out there and once again to connect with young players, maria.

maria: all right, thank you so much, michael avenatti out on bail this morning. so a woman filed a criminal complaint against stormy daniels' lawyer, she was bruised, black eye, felony domestic violence is what she charged, james you wrote article that stormy daniels might be embarrassed by him. >> he deserve it is presumption of innocence but this is the police report on the injuries to the woman involved here, right, i was wondering if pl avenatti had become embarrassment to stormy daniels, maybe it's time to take the question mark off there, right, i'm not sure where mr. avenatti goes from here if potential clients if pornography industry are not willing to tolerate behavior, perhaps el chapo is in the market for legal services. >> of course, he says this was

fabricated to hurt reputation, we have to say presidential bid for 2020 is off. >> i guess what he's saying, we are suppose today think that this is conspiracy that involves the city of los angeles, the da's office, los angeles police department. maria: he said to have kicked woman out of la apartment on tuesday and he was running after her saying she hit me first. her face is all bruised. >> there's a terrible woman, a woman who has gone through something terrible and as you said everybody deserves presumption of innocence but whatever the woman has gone through today, doesn't matter political affiliation or avenatti is planning our doing, the woman deserves support. maria: she denied any incident took place and she defended avenatti, we will keep following that. coming up, pieces of some of history's famous artist will go to automobile -- auction tonighl

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evening long. ooh, so close. yes, but also all... night through its entirety. come on, all... the time from sunset to sunrise. right. but you can trade... from, from... from darkness to light. ♪ you're not gonna say it are you? maria, the eyes of the art world will be in new york city tonight, phillips auction house taking bids from pieces of famous artists of all time. joining me phillips from auction house, edward, thank you so much for joining us. let's talk about what's on the block, some of the most-talked about pieces, number 16, let's talk about what you're seeing this evening. >> well, i think the probably most important that we are selling tonight. we have great works warhol but a particular favorite of mine actually because the drip

painting series that he did, one of iconic of all 20th century art works. maria: what will this fetch tonight? >> 16 and $20 million. it was bought by nelson rockefeller in 1950 and gifted to the museum of modern art in brazil that are selling it with us. maria: contemporary art, assess the value today. >> i think it gets stronger and stronger and stronger. maria: really? >> yeah, i think in fact, even in new york this week we've had a series of sales, contemporary art and you can see the change taste. maria: when you see the stock market where it is, do you think the art world mirrors the stock market in some ways? >> there is a correlation. maria: there's correlation. >> absolutely. maria: let's look at the john piece, what can you tell us

about the painting and how important is this one here? >> well, i think one of the great century artist, this is particularly flamboyant and optimistic expression of his art, it was painted in 1945, at the end of the second second world war, there was new hope -- maria: interesting. >> this is a -- it's a much more optimistic and upbeat work.ther. another iconic european painter alberto, what makes this piece interesting? >> well, i think one of the most undervalued areas of 20th century art is italian art, it really was very distinctive, very important group of artists, burri, they used objects to

create canvass, on this one he's used wood panels, wood staple to canvas and used blow torch to create sort of energy and has 3 dimensional quality to it. maria: very interesting, who are the buyers at this point? has the market changed in terms of foreigners coming in and looking for interesting and important pieces as we look look, you mentioned this, the market is having eyes on this one too? >> yeah, i think we've seen over the last 20 years waves of new ultra wealthy buyers. maria: china, russia? >> russia, china, middle east, from india and we have seen them come in waves and they've all had significant impacts in the market when they arrive but now the market is most stable, most sensible and predictable than it's been for a long time.

maria: and warhol continues to gain lots of interest across the world. >> i think warhol is recognized, if not the greatest of the artist, if not the greatest. maria: teller as warhol? >> warhol himself as we know was shot in 1960's and although he recovered, the wounds from that particular attack, eventually led to his death and so this picture of this gun is particularly poynant and i think in the discussion in america today that image of that gun really does raise so many questions and warhol is known for showing a mirror on society and i think when he created in '81, '82 he's still asking us

today in 2018, you know, what's going on there. maria: isn't that fascinating? >> yeah. maria: this one really just has worked and resinated throughout the years. >> yeah. maria: continues to do so. do you think this will go for what? >> it's a really superb example of the series. warhol's technique was to screen print and many of his images have multiples and this is a really exceptional example of this particular series. maria: just fascinating. any changes that you want to remark on on the market over the last couple of years, how it changes, particularly contemporary art? >> i think it is now truly global. it's much more stable than we've seen for a while. there are less crazy prices, much easier to read, it's a really stable solid market right now. maria: we will be watching the

auction, edward, thank you very much for coming in. good to see you, still ahead, flying you in style, best of america's biggest airports, next hour right here mornings with maria, stay with us. . . . ♪ the greatest wish of all... is one that brings us together.

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all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. maria: welcome back. good thursday morning, everybody. thanks so much for joining us. i'm maria bartiromo. it is thursday, november 15th. your top stories night now. walmart is reporting earnings momentarily. the estimates call for earnings of $1.01 a share on revenue of $125.5 billion. stock is down half a percent going into the numbers. as soon as the numbers hit the tape we'll bring them to you. it could be a market mover. britain's future in the european union hanging in the balance. two cabinet members resigned overnight because they don't like the deal that theresa may announced last night with britain exiting the e.u. she backtracked a bit, speaking before parliament in the last hour. >> what we agreed yesterday was not the final deal.

it is a draft. it is a draft treaty that means we will leave the e.u. in a smooth and orderly way on the 29th of -- maria: markets in europe this morning are lower across the board. the fq100 is down just a point right now. the cac is down 18 points, and the dax index in germany down just 10 points, a move lower. futures back in the u.s. take a look, we're looking at a higher opening for the broader averages, the dow industrials set to open up 100 points. the nasdaq is up 42 points this morning. we're looking at a firm opening after declines across the board yesterday. yesterday's performance for the dow industrials, they gave up 206 points at the close, almost 1% lower. looks like we'll make it back today. nasdaq was down yesterday at the close, a 55 points, almost 1%. we're looking at a reverse at

least at the open this morning. in asia overnight, markets mostly higher with the exception of japan. saudi arabia taking action, the kingdom indicted 11 people connected to the murder of jamal khashoggi. prosecutors are recommending the death penalty of five of those people. we have the latest developments this morning. stay with us on that. oil prices back on the decline earlier, now we're looking at a mixed market. crude under pressure after snapping a 12 session losing streak yesterday, although oil right now sitting right there at $56.29 a barrel, up fractionally. all those stories coming up this thursday morning. joining me to break it down, deirdre bolton, james freeman and the national security analyst morgan ortagus. thank you for joining us. >> big news on saudi arabia. i think that's something that we'll see, i mean, it's not going to keep a lot of critics happy but i think the kingdom is trying to hold people

accountable and i think they have hopefully learned a lesson on this act. maria: they're trying to keep the crown prince out of it. >> he's had a preco difficult po years, when it comes to yemen, the blockade of qatar. one of the positive things is that we could have conversations. maria: walmart earnings are out. revenue is a miss. the revenue coming in at $124.9 billion, that's down from $125.5 billion on the revenue estimate. the earnings are above estimates, at $1.08 a share versus an estimate of $1.01 a share. james free man freeman, new dats leaving the u.s. at risk should the slowdown persist and now we get numbers from walmart, your thoughts on these numbers. >> it's a little discouraging.

because we've seen the heart of the global he slowdown, you see for example cars, not doing well anywhere around the world. in the u.s., still a strong economy but the weak spots would be cars and housing and i would have thought the retail consumer was pretty strong. if you don't look at cars and housing, spending up, obviously confidence up. so now we don't know if this is a walmart specific issue, but discouraging to see the revenue miss. maria: the revenue's a miss but they're raising guidance for the full year and the earnings are above estimates. >> i think sometimes that productivity and that's really the company just kind of shrinking margins. i look at sales. and we during the earnings season saw a lot of companies say exactly this, so they were exceeding as far as sales went but when you have this kind of earnings or rather missing on sales is what i mean and every-executing on earnings, it

shows as far as competitive -- they're not gaining anywhere and i think that is a longer term story we'll have to watch. jay powell saying the economy is full steam ahead but we are watching global slowing growth. maria: that's sort of the major story that we're all covering. joining the conversation, roger williams is joining us this morning, herman cain is also here. bob wright is here as g.e. continues to tumble and the founder of peeble's corporation, don peebles weighs in as well. joining us now is bob drbul. thank you for joining us. what's the take on the trading desk, what's the take from investors this morning or over the last six months a year in terms of the idea that things are slowing down. >> generally what we're seeing from consumer spending is still pretty healthy. i think there's definitely concerns ons the future but when you look at how the retailers

are managing the business in this -- the bleeped of physical and dig -- blend of physical and digital, it continues to evolve. many good retailers are navigating it well. walmart's one of the best, i think. maria: how has the retail story been this week? we had home depot, we had macy's, now we have walmart. >> i guess we focus on walmart for a second, we'll come back on the others. from walmart's -- 3.4% comp, this is a company if you go back a year or two, three years, people were always skeptical they could do what they're doing and e-commerce was up 43%, so 3.4, a little below what we had, we were estimating at 3.5, but the e-commerce piece of it is a big piece of the puzzle and these guys are in the game. they're really doing a great job with the execution, the management's put a good strategy in place. i think they're in a good position. maria: you have to be tough to compete with amazon. >> do you see this as amazon

versus walmart online? you see a lot of other competitors rising up. or is it really just these two titans with walmart maybe finally having its online game together. >> i think generally this is a global battle that's underway and it is amazon versus walmart. and i think walmart has clearly positioned itself as a strong number two. i'm not convinced over time that walmart will ever overtake where amazon is on the e-commerce side. but you are definitely seeing this mix of physical and digital and walmart with the jet acquisition, with the flip card acquisition and you go back to amazon with the whole foods acquisition, you really are seeing this play out and it's a -- >> sounds like the revenue miss doesn't bother you. >> not in the very -- 3.4, 3.5, they seem like they're executing quite nicely. the e-commerce piece accelerated throughout the year and i think will continue to accelerate in q4. they had operational missteps last year that i think they corrected going into the holiday

season. this is just a very well positioned retailer. >> walmart, their app is actually pretty -- i know they're trying to compete with amazon. i think their app has been pretty great. i'm a prolific amazon user. are you seeing many converts from amazon to the walmart app? >> look, i think there's room for both. i don't necessarily know if they're converts from one to the other. walmart continues to remind every time we see them that there's no prime membership fee. you can p shop on walmart for free. >> that's a good point. >> they really focus on it from that perspective. they built up their marketplace. there's 70 million skus on the site. they're doing a great job on segmentation and integrating it with the stores. their plan is to continue grocery delivery, grocery pickup, that's one of their core excompetencies. >> maria: what are your expectations for the fourth quarter? black friday is now a week away. can you believe that, black friday is next friday. what are you expecting from the next couple weeks?

>> i think what you're seeing right now is many retailers are trying to get a jump on the holiday season. so some of the black friday specials are already available. it will be very competitive. it's always very competitive. maria: starts earlier and earlier. >> thanksgiving evening or thanksgiving afternoon and then cyber monday, in terms of all the strategies, it's very competitive. it's a always very competitive and unth i think the big intereg thing to watch this year is toys are up for grabs because of the toys r us piece and amazon did a catalog and walmart always has a great position on the toy business and, you know, we're watching that very closely. there's a lot of dollars up for grabs. maria: are you expecting a good fourth quarter in terms of spending? >> yes, we are, absolutely. i think when you look at if unemployment rate, you look at the wage growth around the u.s., consumers are benefiting from that. oil and gas is dropping as we speak. maria: that's true. that's a good point. >> home heating oil, there's definitely pressures, but from the macro perspective, consumer

spending, consumer sentiment is very, very healthy and we're pretty optimistic around what we're going to see this fourth quarter holiday. >> speaking of toys, who do you think is going to pick up the majority of the toys r us business? >> every retailer that sells toys is pushing like crazy for their share. i just think the ones that have been winning in toys are going to continue. i think amazon, they did a catalog for first time ever. maria: it's a big opportunity. >> it's a big opportunity. >> even walmart and target, they widened some alleys and aisles so that people can really navigate better and look around. >> increase the scare footage allocated to it. a lot of retailers are there. some companies are doing the lego exclusives, some brands are more available in terms of distribution. so i think the category's there. electronics is always a huge piece of it as well. it just feels like it's going to be hugely competitive, it's going to be a great time to be a consumer because of all the

competition. maria: we're getting october's retail sales numbers in about an hour and-a-half or so. is it priced into the market at this point that things are going well, that we are seeing a strong consumer still? >> i think so. the retail stocks have actually been pretty good this year and -- maria: even with that swoon in october. >> that's right. they've actually held up quite nicely. when you look at the macro elements, there's a constructive story to tell. the other side of it is that inventories appear to be very well-managed so it will be competitive but you won't have a lot of like massive clearance sales from that perspective on supply/demand. maria: i'm glad you mentioned inventories, good point. >> macro economy, consensus now for a good, not great third quarter. you don't make gdp predictions but at least the consumer piece of it sounds like we may get a surprise to the upside. >> i think so. i think the consumer is in great shape. this whole year, looking into it, the energy prices is a big factor as well. when you look at job creation,

you look at wage growth, you look at some of the other expenses that are going, the consumer should be in a very strong position heading into next year. maria: is the apple debacle an apple story specifically to apple? because p dan niles was on the program a couple weeks ago. he was worried about inventories at apple. you saw what they're doing with unit sales, they'll give us less transparency. when you see apple take the dive it's taking, you have to wonder if it's indicative of something bigger many you don't think so? >> my colleague downgraded the stock yesterday and i think -- i tell you his theory is they've had average selling price benefits and if units become weaker, the average selling price won't be enough because they're lapping the increases last year. and so he's more concerned in terms of what he's seeing from the upside of this stock. >> there's another supplier this morning talking about the iphone 10s and one of the component pieces.

we have the lie lumentum news earlier in the week. neither confirmed they were talking about the other. it was one of our biggest partners is anticipating a slowdown. maria: that's interesting. apple's a story that you have to watch because of the size and the popularity. just to be clear, you would buy walmart here? >> yes, absolutely. long-term. maria: even the valuation looks good to you. >> the valuation is at a premium. i think when you -- if you look longer term, what they're doing, this is a company positioned to win over the next five years in a very strong basis. i think they're executing well, they're building a great ecosystem globally and i feel like they're ahead of the curve in terms of this blend of physical and digital. maria: we'll leave it there. great to have you this morning. saudi arabia takes action, the details as the saudi kingdom indicts 11 people connected to the murder of jamal khashoggi. and the very latest this morning

as two british cabinet members resign. back in a moment. ♪ i love the way. ♪ the way you love. ♪ can i get some help. watch his head. ♪ i'm so happy. ♪ whatever they went through, they went through together. welcome guys. life well planned. see what a raymond james financial advisor can do for you. and all through the house 'twas the night before christmas not a creature was stirring, but everywhere else... there are stores open late for shopping and fun as people seek gifts or even give some. not necessarily wrapped with paper and bows, but gifts of kind deeds, hard work and cold toes. there's magic in the air, on this day, at this time.

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maria: welcome back. president trump just tweeted this, he says the white house is running very smoothly and the results for our nation are obviously very good. we are the envy of the world. any time i think about making changes the fake news media goes crazy, seeking to make us look as bad as possible. very dishonest. the saudi government its seeking the death penalty in the jamal khashoggi case. lauren simonetti has the details. lauren: top the top prosecutor recommended the death penalty for the five suspects in the killing of jamal khashoggi. he was killed in istanbul. this after a member of the saudi

royal family, the global ambassador, said this to you, maria, in a special interview last month. >.maria: a month ago, a brutal murder of jamal khashoggi where his body was dismembered, is mohammed bin salman for real or is he lying to us about the modernization plan. >> as for the jamal khashoggi incident, he was not only my friend, he was work with me. -- he was working with me. i would like to express my condolences to his family, to his wife, ex-wife and to his children and the family, because jamal was a reformer. what took place in that saudi consolate was clearly horrific, despicable and tragic and i believe that saudi arabia is going to get to the bottom of it but you have to give us some time until the investigation is done and made public by the

government of saudi arabia. lauren: experts say the saudi government's move appears aimed at distancing the case from crown prince mohammed bin salman. british prime minister theresa may lost a key member of the cabinet, the brexit secretary resigned, saying he cannot support the u.k.'s withdrawal agreement with the european union. the working pensions secretary also resigned. the announcement just hours after may had secured the backing of the cabinet for the deal. there is widespread speculation that furious conservative members of parliament could attempt to unseat theresa may. >> the brexit talks are about acting in the national interest. and that means making what i believe to be the right choices, not the easy ones. lauren: the british pound falling sharply, trading down 1.5% against the u.s. dollar today. we'ror just about.you may have t

toxic is oxford dictionary's word of the year for 2018. there was a 45% increase in the number of times toxic was looked out. it was a standout choice for word of the year. poisonous, very bad, harmful, i can think of a lot of toxic things this morning. maria: toxic, word of the year, a situation with michael avenatti this morning. >> you know, it seems like that word is often used with toxic masculinity, which i've been a skeptic of that term but now you brought up michael avenatti and maybe that's the appropriate -- maria: he's out on $50,000 bail, $50,000 bail. he had a domestic violence arrest last night. his ex-wife was swoleen with a bruised face. he says i've never struck a woman. >> he says this is being done to damage his reputation. maria: we will watch that.

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maria: welcome back. futures this morning indicating a pretty good open this morning, dow industrials up almost 90 points right now, the s&p is also up a third of a percent. the nasdaq with a 42 point move, up 2/3 of 1% right now. a firmer opening is what we're expecting. volatility is hitting the markets big time lately. the dow jones industrial average more than 6.5% from the high of the year, hit just last month as you can see from chart. the s&p 500 down almost 8% from its highs. joining me right now is chairman and ceo and president of

principal financial, dan houston. it's great to see you this morning. thank you for joining us. first a word on the volatility and really what it's reflecting. we were talking during the commercial break, the broad economic story is pretty good. >> it's very solid. across a lot of the metrics, an economy that can grow at 3% and maintain that, it's healthy. there's more clarity on tax policy, regulations have been rolled back. small to medium size businesses feel optimistic about the future. maria: do you think that was because of the tax cut plan? the regulatory rollback? what is driving the better tone? >> a lot of it is certainty. there was a lot of uncertainty about tax policies, uncertainty about regulation, would it change and the fact we rolled back some of that regulation is probably creating a business environment with more certainty about where i can make investment as a small business owner. maria: do you worry, dan, that the democrats have now taken the majority in the house, that maybe we could see them try to

stop or slow down the president's business friendly agenda including the rollback in regs and lower taxes. >> you look back and there's a he degree of paralysis. maria: so it's a good thing? >> it depends. attend of the day we've found a good balance between regulation, tax policy, i think trade is an area that's creating uncertainty today. so hopefully what the divided congress can do is get around to getting a better trade policy in place so we with get back to business on a global base business. maria: from your insurance business, the business climate you say is strong. >> it's strong, yeah. i mean, you look at the number of new people coming into the workforce, we're one of the largest 401-k plan providers, we're seeing that in-plan growth measured by participants. people are referring more, they're contributing more to the 401-k plan, they're saving. and in spite of all of this market volatility, people have a tendency in qualified plans to leave their money for the next 30 years.

and again, that's a large stable source of capital for this country. maria: the 401-k has been so critical in terms of creating wealth for a person over the long term. i mean, it really is. >> it's enormous. maria: tell us what people miss in terms of retirement. because even with the 401-k and your company match, people don't have enough money in retirement, to save for retirement. >> it's three things. the first thing is they don't save enough. they have a tendency to want to save as much as the match is, 50% match up to 6, they put in 6, the company now is putting in an additional 3, that's 9. that's still short of what you need. here's a good rule of thumb. you've got to save over the course of a working career, 35 year working career, save 15% of your income and you'll replace 85% of your income at retirement. you would have enough money to provide $85,000 a year in monthly or annual income. that's the sort of degree. maria: save 15% of your annual

income. >> today. maria: i've got that. >> replace 8 a 5% of the future. we still have people who are not participating. they're eligible for workplace savings programs. but for whatever reason they're not getting enrolled. that's some of the legislation that's been very helpful because this auto enroll, auto elect, auto escalation, allows employers to go ahead and enroll you and increase your contribution up to some maximum which is typically about 10%. and then the third is these target date funds. you're dealing every day with market volatilities and the equity markets and fixed income and foreign, but most people 35 to 45% of 401-k savers today choose some sort of lower cost target date fund. it may or may not be risk adjusted. individuals who are in those sorts of strategies tend not to try to get too upset about the market volatility. their dollar cost averaging in. maria: before you go, let me ask you, dan, in terms of the fees, in terms of the regular ry

environment right now, what will you do in terms of the race to the bottom for fee. >> fees are coming down in active and passive strategies. most plans make the choice of having a combination of both. we offer all of the both in terms of passive and active strategies. but i think, again, as you look at the sheer size of this market and the growth of the assets, the strong players like principal will continue to thrive in this marketplace. maria: we'll leave it there. it's great to see you, dan. >> good to see you. maria: thanks so much for joining us. dan houston joining us. general electric's credit crunch, the stock continues on this huge downward trend. the stock is up just a fraction this morning as you can see there. the company's mounting debt is sending ri ripples throughout business. we'll talk to the former vice chairman, bob wright of ge. stay with us. ♪ money, get away. ♪ investment opportunities firsthand.

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maria: welcome back. good thursday morning, everybody. thanks so much for joining us. i'm maria bartiromo. it is thursday, november 15th. your top stories right now. retail earnings this morning, jc penney reported moments ago. the reterrell beat on earnings per share but missed on revenue. the stock is down 10%. take a look at jc penney shares. the company reported a loss. we were expecting a loss but it was a loss of 52n 52-cents a sh. they lost money but it wasn't as bad as some thought. revenue was a miss at $2.65 billion versus an estimate of $2.81 billion and look at this stock right now, down 10% at $1.10 a share on jc penney. walmart earlier with a mixed report, also missing on revenue but beating on earnings per share. the company is raising the full year guidance and the stock of walmart up 3/4 of 1%, that's a dow component. that's going to help the dow this morning as you can see, markets are looking strong, take a look at the markets here with the dow industrials expected to

be up about 100 points this morning, a third of a percent higher. the s&p 500 is up a third of a percent and the nasdaq with a gain of 48 points this morning, better by 3/4 of 1% this morning. this after a tough day yesterday. take a look at the close. the dow jones industrial average lost 206 points yesterday at the close, almost 1% lower. s&p 500 was down 3/4 of a percent and the nasdaq with a decline of 65, down almost 1% as well. european indices this morning mixed. we had a lot of news on brexit and theresa may. the fq100 is up 11 points. the dax index in germany is up a quarter of a percent. asian markets finished mostly higher with the exception of japan. the best performer was hong kong, hang seng index up almost 2% overnight. extreme weather, a nor'easter is set to bring the first snow of the season to the northeast. today, going into the weekend. meanwhile, a storm in mississippi leaving two people dead, dozens of others injured

in a bus crash. we have the latest there as well. flying high, the wall street journal is ranking the best airports in the united states. we will tell you which one took the top spot. the home bar of the future, how k eurig wants to branch out into cocktails. we'll bring that to you as well. all of those stories coming up. the top story this half hour, a credit crunch for general electric. the wall street journal is reporting how the industrial giant's debt woes are spreading across the rest of the market. the company's recent woes has the bond price sliding alongside the stock. things have only gotten worse here. stock is now 50% this year alone and it is sitting at $8.32 a share joining me right now with reaction is the former vice chairman of ge and the founder of the suzanne wright foundation. bob wright is here. what a disappointment ge those be for you. >> listen, i think i have to say

larry kulp is the new ceo and based on the interviews i've seen him have and how he conducts himself, i think he's a great choice. and i think this is the perfect person, a perfect person to take on this situation. he had a smaller company that he built into a huge company. he did some odd 30 acquisitions in a 14-year period. allegedly he never took a write-down, that's almost incredible. and he's nuts and bolts guy and what he's doing now, he has to do, he has to go through every single business area and make sure that the ones that are earning, that are providing earnings are doing it at their very best and he may be able to, if he's able to find some assets that he can sell to other people, that don't have current earnings. so it's like diamonds, selling jewelry. but valuable to somebody else but it's not providing any cash

to you right now. he needs cash from his businesses and there's so many businesses to choose from. maria: and they're jewels. look at the jet business, it's a jewel of a business. >> that business generates cash. you don't want to sell that. maria: exactly. >> you don't want to sell right now health care, if you sell a business, it's a one-time hit. you get the money but you're going to have creditors that will want that money. so he has to plan very carefully, if he sells something, how he's going to cover pension, how he's going to cover creditors and -- but the trick is, he has to get all of his operating businesses working very well and generating income by the month, by the quarter. maria: one of the worst acquisitions probably was the almston deal, no question, right? >> it's a question. it came along at the wrong time but the real problem i have with that is that they had tremendous

liabilities that were on the balance sheet right then and they didn't address those. they had a pension liability that was getting growing. they had this health care -- maria: did they not know that. >> of course they knew it. they somehow buried it in their minds that they could take it another day. they spent $53 billion on buying back stock and buying altsram and doing this industrial software program that doesn't generate any money. maria: you ran this company a along with jack welch and you ran it really during the glory days. the stock was at 59 and 3/4 on your watch. it's incredible to see this company go from a market value of $600 billion at the high to, what, $80 billion right now. i mean, people are commenting about it. a couple weeks ago i spoke with barry diller. he was looking at ge versus other industrial giants,

particularly as relates to the sale of nbc universal. here's what he said. can you imagine if ge waited to sell nbc universal to comcast for today, valuation would have been much different. >> ge is a whole other story. when you see the rise of all of these other companies in this last period and you see the year by year destruction of the greatest industrial company created, ge, it's quite an amazing -- you can parallel it. maria: what do you think happened? >> i want to make a point. i know barry diller pretty well i knew jack welch very well. they both pay a lot of attention to the balance sheet. barry is very good at acquiring but he constantly wants to know how much cash have i got, what are our liabilities. maria: that's his success. >> that's been his success. maria: that's what jack did. >> jack did the same thing. jack did a lot of things. but he had a lot of good people

around him. larry bosett was there for many years, really smart people that are very attentive to the bleste sheet. that history seemed to disappear in the last two or three years. maria: in a 20 year period, were they not as focused on the balance sheet and knowing where the cash was, how much cash would be left with these acquisitions. i don't know what happened. it's an incredible fall from grace. >> have you to think maybe. there started to be outside interests and hedge funds were coming in with a lot of suggestions and that puts a lot of pressure on you. they want that stock price up. maria: yeah. >> buying back stock when you don't have the money to do it is a way to increase the stock price but it's not a way to help the balance sheet. maria: can it ever go back to its glory days? >> these businesses we're talking about, health care and aviation and power are never going to go away. and they're global businesses. that's one of the things that people don't recognize that great asset of ge is they're all

over the world. most of their employees are outside the united states. these are loyal people. they're skilled people. that business is -- larry just has to get them all firing at the same time for getting his cash. he has to do it day by day, one at a time. it's not easy. i think he's capable of that. maria: we'll watch the situation. let's fast forward to what you're doing right now. today is world pancreatic cancer day. and you've got your tie on. >> pancreatic cancer tie. maria: the goal is to raise awareness to encourage others to take action. you founded the suzanne wright foundation, inspired by your wonderful late wife suzanne. talk about what's been done in terms of pancreatic cancer. you started haarpa which is basically modeled after darpa. >> it comes from darpa, yeah. and first of all, i'll say there's been a lot of research money put into pancreatic

cancer, probably a billion dollars over the last seven or eight, nine, 10 years, and the problem is the mortality rate is 91.5%. and that's the same mortality rate as 50 years ago. so this is like the basketball team that has great players, but they can't win any games. and the scoreboard in health care is mortality. and that's -- so there's been a failure to address that, unwillingness or unable t do th. harpa is designed to come in and tackle things like early detection which is critical. people get detected with pancreatic cancer and 85% are stage four. it's gone to the liver and there's no surgery that can be done. maria: how do do you early detection? >> en endoscopic examination ise best way to do it. it's not in the standard of

care. colonoscopy was not in the standard of care 25 years ago, now it is. endos's copic is the only way to see the -- examine the pa pancrs and the liver statement at the same time. there's also blood test that can be done. there's lots of things. what harpa does, it pulls together people that have great ideas but for some reason or other generally couldn't get it financed correctly or couldn't finish it on time. you pull it together and work on a time schedule. it's the motto is fail fast. in other words, get this thing done fast or let's move on. maria: now that you're on it, i think there's a lot more optimism. i know what you've done for autism. i know you're on the same goal with pancreatic cancer. >> everybody i talk to thinks it's a good idea. there's institutional

resistance. the actual change is -- this is a change to take this from the department of defense and put it over there, but that's what's killing it, institutional resistance. maria: thanks for joining us. we'll be right back. kevin kevin kevin kevin kevin kevin kevin kevin kevin kevin trusted advice for life. kevin, how's your mom? life well planned. see what a raymond james financial advisor can do for you.

i never thought i'd say this but i found bladder leak underwear that's actually pretty. always discreet boutique. hidden inside is a super absorbent core that quickly turns liquid to gel. so i feel protected and pretty. always discreet boutique. maria: welcome back. president trump just tweeting on the mueller probe. here's what the president said. the inner workings of the mueller investigations are a total mess. they have found no collusion and have gone absolutely nuts. they're screaming and shouting

at people horribly threatening them to come up with answer this want. they are a disgrace to our nation and don't care how many lives they ruin. these are angry people including the highly conflicted bob mueller who worked for obama for eight years. they won't look at all of the bad acts and crimes on the other side. a total witch hunt like no other in american history. that from the president this morning. a powerful storm hitting much of the east. lauren simonetti has the details. lauren: this is a storm outside, right, not at the white house. icy conditions are ongoing from the ohio river sall valley to nd atlantic. there's heavy rain in georgia and the carolinas. it's expected to dump 5 to 8 inches of snow from central pennsylvania to upstate new york later today. as the storm blasted parts of the south yesterday, we have this tragic story. two women were killed in a tour bus crash on an icy road. more than 40 others were injured in the crash. the alabama bus was bound for a

mississippi casino. it overturned on a highway near memphis. and a new survey on the best airports in the country. coming in at number one, denver international, soaring in the rankings for reliability, value and convenience and the first ever wall street journal survey of the 20 largest u.s. airports, coming in second place orlando, florida, then phoenix, atlanta, and dallas/fort worth. they looked at items from the length of the security line, wait times, to yelp ratings for food. speaking of food and just in time for christmas with the family, hidden valley is debuting its new ma numb bottlef ranch dressing. it hold 2 liters of ranch dressing. it is available for $25. kfc wants you to look finger looking good. it's launching a collection of chicken themed clothing, partnering up with the brand human made. you're looking at some of the

items like a 1970s style racing jacket selling for about $400. are you kidding me? and this, this might be my favorite story of the day. keurig is shaking up something new for the new year, a cocktail or a beer at the bush of a button. the drink works home bar is a collaboration between keurig and anheuser-busch. you insert a bo pod into the machine and can serve up a drink. the bar costs $300. the pods are $4 each. they're making deliveries to florida and california next year and they will expand from there. they merge with dr. pepper in january to create a beverage p giant and those shares are up about 79% this year. i'll take a mojito. maria: a lot of good stories. lauren: where do we begin? maria: thank you so much. remarks? >> keurig. i'm into that more than the kfc

clothing. maria: coming up, a fortnite loss for the chief's star quarterback, hilarious details, back in a minute. [ phone rings ] what?!

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maria: welcome back. lebron james passes one of basketball's all-time grates and it helps the lakers with another win. jared max has the details in sports this year. lebron is in six wins in seven games for the lakers. last night a game of milestones for lebron. >> lebron drives, is fouled, count it, 38 per game and freeflow throw away from -- free throw away from passing will chamberlain. >> lebron passes will

chamberlain in all-time scoring, 44 points, most by any laker since kobe. lebron is within points of michael jordan for fourth all time. when it comes to honoring the wounded warriors, nobody tops the dallas mavericks. they hosted their seats for soldiers night. an idea was born from neil and jamie hawks who donate courtside seats to say thank you to those who fight for our freedoms. at half time one serviceman delighted the crowd with a dunk, check this out. boom. and also lee greenwood at half court sang his anthem, god bless the usa. american airlines flu 100 wounded soldiers to dallas. mavericks beat the jazz by 50, worst loss ever from the jazz since they moved from new orleans in the '70s. seattle seahawks take on the green bay packers tonight.

we're not going to see the color rush uniforms we've been seeing on thursday nights. the seahawks will go back with their more traditional uniforms. who is that guy wearing patrick wha mahomes uniform? he is a big fan of fortnite. he reasonly don't killed in the video game by a gamer who was dressed in patrick mahomes university. on twitter he wrote not sure how i feel about that one. maria: thank you, jared. jared max, catch sports reports on fox news headlines 24/7 or sirius xm1 s 5. when we come back, the fallout over facebook, details on the shocking report about how executives handled the technology giant's data scandal, that's next hour, right here, "mornings with maria," back in a moment. ♪ here i am, baby, signed, sealed, delivered i'm yours. ♪ (vo) 'twas the night before christmas

and all through the house not a creature was stirring, but everywhere else... there are stores open late for shopping and fun as people seek gifts or even give some. not necessarily wrapped with paper and bows, but gifts of kind deeds, hard work and cold toes. there's magic in the air, on this day, at this time. the world's very much alive at 11:59.

. maria: welcome back. good thursday morning. thanks for joining us. i'm maria bartiromo, thursday,

november 15 your top stories right now just before 8:00 a.m. on the east coast britain future eu in the balance this morning two cabinet members resigning because they said they did not like the deal theresa may announced last night she did he haved it speaking about parliament this morning. >> the brexit talks are about international interest, and that means -- and that means making what i believe to be the right choices not easy ones. >> markets not a major reaction from equities ft 100 up 15 points, quarter of a percent the cac quarante if a paris down 18 dacs in germany up 20 points the real move was the british pound it was do down 1/2% on use versus dollar volatile lower this morning, futures looking good we are expecting a higher opening for the broader averages we are well off the highs of the morning right here, dow industrials up 35 points, had

been up 90 points, a fractional gain expected at the the start of trading to the dow s&p, and the nasdaq right now gain 26 points almost one half of a percent, that after declines across the board yesterday take a look at markets 4:00 yesterday dow industrials down 206 points almost % s&p down three quarters of a percent nasdaq down 65 almost one% lower yesterday agency well on nasdaq the close in, asia overnight markets most higher best hong kong tseng tseng up one and 3/4% saudi arabia taking action indicted 11 people connected to murder of jammal khashoggi prosecutors remember death for five of those people facebook fallout a report have zuckerberg cheryl sandberg face crisis over the last year some decisions are sparking controversy this morning, retailer earnings in focus walmart higher take a look up better than% same-store sales

beat expectations company raised full year guidance that is moving the stock not the same story for jc penney down 10% right now same-store sales missed expectations company reported another loss for the quarter of 52 cents a share, this thursday morning joining me to break it down deirdre bolton "the wall street journal" assistant editorial page editor james freeman national security analytical morgan ortagus, good morning. >> good retail story all this week you mentioned same-store sales at walmart the thing you want to look a the. >> yeah because we were trying to get a read on we have seen this global growth slowing, how is u.s. doing u.s. seems holding up better, while those -- revenue numbers from walmart didn't quite might expectations that was basically because of international sluggish growth in the u.s., very healthy 3.4%, same-store sales growth.

curren translation issues message from wall mortar generally, problems overseas in terms of slow growth u.s. very healthy. >> el-erian made interesting comments as relates to that president meeting potentially with -- xi jinping of china to talk about trade deal mohamed el-erian indicated as global growth slows down puts u.s. even more prime position into talks, with china, and he seem to think we have continued upper hand in dispute. >> u.s. best game in town look around the world. >> -- i share. >> even better than that, we have unemployment here record lows, we have wage growth for the first time in a dictated where we saw 3. % number we haven't that in ten years great for unskilled labor means average uservice consumer has to be feeling better we have gasoline

prices, really pretty attractive i think 2.592.69 gallon based on what we have seen drop of oil as we go into holidays so that should bode pretty well for retailers, who are well positioned, and i liked what guess said from debuti guggen heimer worried about revenue miss. >> not at all same store seas in u.s. cranking saw it with digital properties. >> made an investment, in digital they have bricks-and-mortar to back it up. >> important to note that it is indicative of the u.s. economys consumer versus what we are seeing in terms of weakness all that coming up this hour top story getting back to work, congress returning for a lame-duck session, with lawmakers facing battle over budget deadline for continuing resolution to fund federal government december 7 you bordered wall major point of contention, newly about elected house minority leader kevin mccarthy

pushed bipartisanship yesterday. >> we understand we have a divided government we have a divided nation. our goal is to unite us this is opportunity to help continue america to move forward. >> we will work with anybody across that aisle if they are there to work to move america forward. >> and congressman mccarthy won overwhelmingly yesterday to be are minority pleader of gop in new congress joining me texas congressman roger williams good to see you thanks very much joining you -- >> thank you good to be here. >> what do you think can be done lame-duck session next siekz weeks new congress. >> i think there is a lot of hope that we do have are able to reach out get some things done i know yesterday, i was talking to some might have colleagues in other side about infrastructure, about the military, about energy that sort of thing i think there is an opportunity to get some things done i am a business guy, i would like to find common ground, and do them, move america forward i think a good time to do is that. >> of course, do you two appropriations bills to deal

with in before the spending deadline tell me about that, and what you see, getting accomplished. >> well, of course, we funded 70% government already got to get homeland security funded by december 7, i hope we can get that done because we do need to move forward on the wall, support of thes border security without the having a cr that ends up having a lot of things in it that sometimes get put in year-end that are not aed a van contagious see if we can get government fundeded. >> i am glad you mentioned board wall first wave asylum seekers at u.s. mexico border. >> neilson at board. >> there is all sorts of steps in the news that sort of thinged sort of thing cons

strait on what sxharm if you read that stuff you will go nuts you know what i mean you know what your mission is here you got to deploy on short notice to nontraditional location, do your jobs you focus on doing that. >> congressman what about that mission, how should border officials be handling asylum requests. >> interesting question the fact of the matter is border patrol renotified by military folks from honduras offered asylum in mexico turned it down, they have been offered job opportunities interesting what the mission is to back up border patrol this is unique from being texas at border former secretary of state i understand what happens down there, we've got to be very careful but at the same time it is interesting folks want to come to america, the first thing they want to do wreak

t break the lay we are land of laws good to decide how it is handled do it right way i think we will do that they have guilty towns you come is between through the ports of entry not between ports of entry to come into this country. >> numbers sketchy what is congress willing to do in terms of providing money for border wall the president -- >> i think that, you know that is what we're talking about here come by december 7 i think we are we all understand, that this is under president's called it invacation you have people coming to america don't have america at its -- at benefit. so i think we just need to -- we need support, support border patrol fund homeland security get thank you ball get it built going to be an issue we face for a long, long time. >> new congress, you know we have heard a lot about investigations, that your colleagues on left want to raise, for the president they

want tax returns et cetera are any investigations or pressure on the president going to stall, delay, or reverse his business friendly economic agenda? >> we'll i am a business guy the economy is great right now you talked a lot about it already this morning so i hope not i hope i hope that the democrats will understand we got a great economy we have beginning to build our military back, there is no point in taking steps back to attack this president election 2020, he got elected i am on financial services as you know, maxine waters chairperson i hope we go forward with what is going to help not hurt economy of this country. >> and, yesterday, of course, kevin mccarthy elected house er minority leader what are you expecting from have in terms of leadership new year. >> i think great leadership i am supportive of everyone that won posters yesterday all friends of mine i any leader mccarthy has great agenda great vision, we will follow it the truth of the matter is we've got to do is continue to

sticky with what we do best less government low taxes cut regulations that sort of thing to the get away from message sell our message i think we can go better job selling our conservative message that is something i will be talking about next two years sell our position. >> you are right 4.2% economic growth second quarter 3 1/2% economic growth third quarter you would have thought that you and colleagues would have spoken more about this during this election season. >> well i agree totally it is like i accommodate from retail bunged sell your product don't downplay opposition what we have done with the jobs more jobs people i have been in business 50 years i have seen 21% interest this is a great time to be in business start a business regulations reduced we need to sell that position, i i mean people on the other side have more money in pockets they have got more opportunity we need to sell that position not play defense to -- >> is tax cuts 2.0 dead or you do you think it can move. >> i think it can move i think we have to sell it get support

earn support show how tax cuts work other side talks about tax cuts result of or result of the deficit, we are spending too much we've got to address that that is a whole on the issue spending deficit i want to address next year. >> all right. we will leave it there, congressman good to see you this morning thanks very much get your hands on debt certainly has become a bigger conversation congressman roger williams. >> britain's exit from eu latest was to british cabinet members resign coming up. >> facebook under fire new report how executives at xhaenld intelligent giant date scandal what decisions they made, back in a minute. ♪ ♪

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>> saudi government is now seeking the death penalty?

khashoggi case. >> prosecutor refugee death penalty for fif sucks ordering carrying outside killing after prince al-waleed member of the saudi royal family global investors said in exclusive interview last month with you maria. >> a month ago, a brutal murder of jammal khashoggi, where his body was dismembered, is mohamed bin salplan for real or lying to us about this modernization plan? >> for -- >> the incident, i know we have done jammal not only my friend he was working with me -- me and a lot of tenants -- i like to give my condolences again for family for his wife, ex-wife and family, because, jammal was -- what took in consulate clearly

horrific. and i believe that saudi arabia is going to get to the bonl of it but please to have you give us sometime, until investigation is done public by the government of saudi arabia. >> experts believe to move is -- zhangs from crown prince mohammed bin salman. >> brexit turmoil for theresa may, secretary dominic, resigning fai cannot support uk deal from eu hours after theresa may secured the backing of cabinet for the deal now faces a tough task getting the agreement approved for parliament. >> we can choose to meet we can risk no brexit at all or we can -- or we can choose to

unite support the best deal -- >> getting hammered british pound falling sharply, to california shares of at the largest utility there pg&e continue to get whacked now down 6% in premarket trading on top of a more than 20% fall yesterday if you are keeping track the company stock down 50% in five trading days california residents suing company for negligence gaming it for deadly wildfires death toll on rise 56 deaths blamed on camp fire more than 130 people still unaccounted for, as crews continue rescue operations nearly 9,000 homes destroyed. >> facebook news for you delay deny deflect "new york times" describing facebook, russia election meddling recent data ep scandals at company

facebook under fire from congress, and consumers, the "the wall street journal" says leadership turmoil, plus critical media coverage of the company causing employee morale as well as stock price to plummet. facebook feud with apple continues, ceo zuck zroushlg told managers to use only aed drivewayed phones because operating system has more users than apple's tim cook was critical of facebook and their privacy. check out kanye west tweeting this following a karaoke session with zuckerberg and other friends what are they saying i want -- backstreet boys, keep singing, wall street needs to hear you stock down 18% for facebook this year. >> thank you so much the amazon effect details how company next headquarters will impact house of market taking a look then washington and your wallet break down how the economy is impacting your pocketbook retail sales in 10

minutes' time stay with us. ♪ ♪ s

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. maria: welcome back we are putting a spotlight on new york city arlington virginia experiencing a surge in real estate job markets, following amazon's decision to split the its second headquarters evenly between cities amazon promising to invest 2 1/2 billion dollars in each location create 50,000 new jobs across headquarters joining us to talk about that people corporation founder champagne ceo don we love having you on what do you think. >> first of all, i think we

are ought to be mindful new york city, spent two billion dollars, to get 25,000 jobs, and virginia spent 500 million, so get 25,000 jobs, nashville spent only 100 million to get 5,000 jobs we have to pay four times as much to induce them to come to new york city first place i think going will stimulate economic development housing 57,000 unities a boon, 25% affordable, but would be the be easy you already have the city council for the district complaining about the fact that he wasn't consulted amazon not going through normal land use process would take five years to get anything built. >> do you think too much of allure to get them here did locales spend too much money. >> virginia are great value, and nashville a great value, new york city, new york state had to do it i credit governor cuomo doing a good job get

them here they had to be here, and i think says a lot about america's most important city, to have amazon here, and so it is just indicative i give you numbers because indicative of what failed policies have done, to make new york city so uncompetitive, when it comes to attracting business when it has the best intellectual capital in the country. >> great point. >> as you know i have not for given you for decision not to run for mayor of new york. >> me too. >> i like to believe you would have cut a better deal you are saying new york has no choice it is that horrible that if you want new development, you have to do this. maria: a five billion dollars. >> cost of living expensive quality of life p diminished tax burden significant only way this would have gotten done andrew cuomo doing it creating a general plan, so that amazon won't have go through all the community group meetings, all the meetings necessary and hearings to get land use

approved. >> why not just cut rates for everybody instead of doling out favors to billionaires. >> great point especially since everybody -- lost salt deduction. >> the challenge is a priority about quality of life right now, there is not one the city is on automatic pilot that is, you know got glitches in it so really run haphazardly no need to residents pay as much taxes get poor services i agree amazon, says something about coming to new york says about new york that we are still competitive, we are still thank you know capital technology, you know in terms of what we bring to you know, country, so i think very important i thought it would have been a black eye to the city and you know, if we didn't get amazon or portion of. >> it why you said this week amazon new york city home is opportunity zone for trump taxbreak you say all you have to do is look at skyline from

manhattan you can see billions of dollars private investment already long island city does not strike mean as high on list to estimate economic development. >> that is not the president's fault, by the way, i am quick to creative him on other things. it is up to states city to pick these opportunities zones based on census tracks where politics goes in who do you think lobbies politicians developers. >> what is sense of real estate right now what goes walk us through through what is going on in new york. >> top end of the residential market incredible shape, the high end luxury condo market is soft, volume down significantly. there is an oversupply more coming, there is exceptions to the rules, headlined buildings even headlined binds not fully selling out tough market ahead people bought last five years want to relocate most are going to have challenges, to sell so going to slow market down. >> indicative of the country. >> no. nashville on fire.

florida second wind thanks to no state income tax same thing tennessee, and places like charlotte, raleigh-durham, other areas that are lower tax virginia, i mean doing very well. >> quick before you go your reaction to the midterms what is going on in florida right now. >> i think -- >> recounts. >> i think bill nelson is going to lose, he is going to need to call it a day. i think scott will ultimately win that i thought i always thought that -- change in the senate i would have liked to have seen another democrat run. >> you didn't like nelson. >> i just didn't i think time has come and gone nofrng he is effective he can't make a compelling case why he needs to be reelected that was biggest problem i think gillum running for governor made extremely compelling case if you are a democrat on liberal side i mean he made a compelling case. to be elected i think that that was a big surprise to me, i am surprised, also, that was

even close for nelson i think going to be surprised when he sees all votes 20,000 didn't pick in broward county didn't pick a senate candidate that isn't a mistake they said you can't vote for rick scott definitively not voting for you. >> there you go, great to see you. >> thank you so much, joining us there check on state of consumer retail sales next. (toni vo) 'twas the night before christmas, and all thro' the house. not a creature was stirring, but everywhere else... there are chefs, bakers and food order takers. doctors and surgeons and all the life savers. the world is alive as you can see, this time of the year is so much more

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maria: welcome back, we got a beat on retail sales maria bartiromo thanks for joining us thursday, november 15 top stories right now 8:31 a.m. east coast weekly jobless numbers claims up to 216,000 estimate was 212,000 retail sales he bigger story up 8/10 of a percent versus estimate 5/10 of a percent october haring from retailers all week this morning we get a

better-than-expected number, of up 8/10 of a percent markets higher off highs of the morning dow industrials up 24 points s&p 500 up one and a quarter nasdaq up 17 points here for futures, where seeing weekly jobs number a retail sale not having a big impact, deirdre bottom of theon i wonder if market viewer better-than-expected expected retail sales number more indication maybe federal reserve keeps raising rates. >> i think from what chairman powell said last night doesn't seem getting a lot of pickup seems telegraphed yet again, the rates will go higher in december, then also said we seem a pretty good peas longer term two risks one global growth threatening global growth then through effect of the tax cuts he wonders to which extent gone tax page december 2017 so reading

between lines but we are going to do december rate hike then given what those two other factors do to the equation, think about what happens next year. >> wonder if that is why market losing steams james all we have heard all morning all week is the fact retail sector in u.s. particularlys consumer is real strong. >> it is strong i think you are going to see consensus that that fourth quarter in growth is good but not great, maybe now moving toward great category in some forecasts, these are healthy happy about the optimistic u.s. consumers what we have seen in surveys now showing up in sales data. >> consumers have many reasons right to be -- almost record low unemployment, wage growth, low prices at pump all good indicators what is coming to the holidays. >> look at oil strip out autos glean lower 3/10 of a percent

stripping out as go autos to keep in mind as well. >> -- totally independent would i say if a rate hike in december you will definitely here choice tweets from the president, not been quiet about his opposition doing so still i think theme of this morning we've talked about is despite a global slowdown and massive geopolitical risk around the world u.s. economy is still -- bright shining city on the hill. >> for sure you know we got philadelphia federal reserve index philly fed index lower than estimates, so we are getting a level of 12.9 for the month of november virtual reality versus estimate of 20 philadelphia federal reserve index. >> manufacturing underpinnings we need to look at clearly lower-than-expected to your disappoint futures coming don, you know i think sometimes the market reactions to all macroheadlines has been so extreme, the second that we talk about trade tensions, we get some really big sell-offs

cbo index volatility high especially october one of the kraidziest months very long time a lot was in reaction, you can say, maybe argument for overreaction but in reaction to some macroconcerns, particularly trade and what that does to manufacturing maybe why getting that philly fed index lower. >> weaker than expected we bring in former republican presidential candidate herman cain good to see you. thank you for joining us. >> hello. >> got to get reaction on midterms new congress first talk about numbers, the economy looks good in u.s., you had retail sales up 8/10 of a percent% estimate 5/10% about manufacturing questionable what is take on trump economy right now? >> my take is prosperity continues. of course, we are going to have a few ups and downs blips good thing a lot of people analyzeing these macrotrends,

but good news is, if it is all good that is good news, the jobless numbers consistent with trend we have been seeing six, seven, edit, nine, 10 months not new news good news retail sales number you indicated beat expectations a little bit jobless numbers don't bother me, i believe this indicates, that the fundamentals are sound rather than for stock market fundamentaled sound relative to business optimistics consumers let's not forget they have a meeting median income over 60,000 dollars for the first time in a long time. and they are going to spend some of that money they may holed some back but fundamentals are sound these fluctuations i think indicate people who are in the short term game rather than long term game. >> herman james freeman here "the wall street journal," given your background in

restaurants retailing, with a lot of restaurants pressure politically or marketplace having to raise wages, what do you see happening here next couple years just really accelerated automation robust hiring hard to find workers right now? >> you are going to see some more accelerateds automation as you indicated also seeing some restaurant companies pay their employees more because they have more money to pay with. the fact the retail sales did what it did means people are going to eat out more if businesses restaurant turz have more money they are not unwilling to pay what workers more i think are going to see a balanced combination of more automation as well as paying more money in order to be able to keep best employees. >> i know there is a piece in the washington you post feel strongly about, called trump's big 2020 problem, the economy

could be in recession the article points out how many analysts are preking slower growth increased volatility will lead to recession what you are saying this morning you are disagreeing with that, because of the numbers, that we are talking about, today, and over the last several months. >> i have one word for that article. >> bull feathers i say on your show you figure out exactly what that means. here why is that article is bogus. the fundamentals if you look at everything and the trends last nearly 21 months we have had this president he fundamentals are good are sound. they are getting he stronger, the consumer has more, the jobless scene some people are getting better jobs some people getting promoted in jobs, and because the unemployment rate is at as low as it is, low, low, as you know, people are they are

getting promoted, because if the businesses have the money to pay people more, for a better job, greater productivity we are going to do it don't need government telling them how to run their business that is the fundamental difference between this administration, the trump administration, and the previous administration so i think predicting or trying to scare people and talking about a recession, that is scare tactic not working on business community those are the ones going to determine that this prosperity continues. >> mrcain two biggest domestic policy issues in midterm elections health care and immigration, do you see any sort of deal done for daca, the wall or any sort of he reforms repeal and replace obamacare tall order with democratic congress do you think the president can get something done. >> i think the president has a chance to get something done,

but i don't believe that the democrats are sincere about getting something done. they have 8 years to get something done on daca didn't do it they had 8 years to get something done on immigration they didn't do it just left that problem laying out there, and now they want the president to pull a rabbit out of the hat! democrats' idea of compromise is do it our way i think the president republicans going to run into significant barriers trying to work across the i'll optimistic but mark my words democrats going to dig in heels they are not going to want to give in ones no significant issues they are big issues this is why the president and republicans have not been able to get anything done on those issues up to this int pop because they are determined he they don't want it anyway other than their way i wish them well. maria: do you think anything gets done in new congress next two years? >> no. >> nothing. >> it is gonna be i am sorry.

>> it is okay just want to no what president's business friendly agenda is reversed voted or nothing gets done that is good news? >> the business friendly agenda of this president that is already in place cannot be reversed, because the house can only legislate has to go through senate they are going to be able to change regulations that have been rolled out they are not going to be able to change tax cuts that are already in place. and we've seen the benefits of it, not only in businesses numbers that you just referred to, but article in the washington examiner that you shared with me that said that in the last 12 months 878,000 new millionaires have been created under this administration great news that is great, great news for the prosperity that we are enjoying and i believe we are going to continue to enjoy it.

nose millionaires didn't fallout of the sky the government trying to tell you how to build a business at any time do it contrary to what president obama said they did do that! they built those businesses they took risk, and they are now reaping rewarding might be few little things they are able to get done but the democrats are going to try to posture it as there is a big win for them, and no-win for the president. i don't think that tactics going to change, 878,000 new millionaires. >> i propose you are right nothing will happen that means no big infrastructure spending big spending on anything else one would hope. >> we will see that could be a policy mistake trying to look for something they agree on agreeing to some one, two trillion-dollar infrastructure package. >> we need a big infrastructure package, but i don't want to make predictions

the president is willing to compromise on infrastructure if you gets the wall what democrats don't want make it appear as if president trump helped to cause something big to happen that is overriding strategy that is why i am not optimistic i'm normally optimistic but not optimistic that they are going to want to work for a substantive solution to any of these big problems. >> we leave it there, we will continue to watch the bull feather story this morning nice new word there thanks so much herman cain joining us there we will be right back, stay with us. only half the story?

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. maria: welcome back british prime minister theresa may, works to save brexit two quit overnight the host of "varney & company" to weigh in. >> good morning, maria. this is a constitutional crisis in the making of on the other side of the pond, trter prime minister appeared before parliament offered country and her partied, three choices, number one, you can just leave europe period just quit walk away done. hard exit you can do that choice number one, number two, or you can healthcare no brexit deal whatsoever and stay in eu or number three, you can agree to the deal i just negotiated as in theresa may just negotiated hard choices all around it is

somewhat unlikely trying to pick words carefully here whether her conservative party and the government of great britain will accept the deal just negotiated. if they don't quivering whatsoever that is a constitutional cries britain faces general election maybe reefrjtd on brexit a mess reverend um on market. >> seems a negative but not a strong negative, we will see how that works out. >> so far impact on currency, right certainly overnight, and expected to continue. >> british banks, selling off big time. >> i know a lot more we'll see you will in 10 minutes' time top of the hour 9:15 aim eastern after "mornings with maria," first of all, a mixed bag retail earnings j.p. penny walmart reporting gerri willis with in a good morning to you.

reporter: good morning you are right amid that look at walmart 1.08 per share beat 1.01 comp store sale up 3.4% higher, some, raising eps outlook for the year very good news for walmart e-commerce sales growth 43%, oe. marketers saying company will have share of e-commerce sales surpass apple this year number three behind amazon ebay, amazing, flip side of the equation jc penney losses less than expected 52 cents a share virtual reality 56 cents a share estimate revenues disappointment the stock selling off as you can see, trading 1.06 per share down 13%, same store sale fell 5.4% ceo saying they want to restore jc penney's to sustained profitable growth but a lengthy process, best

news, expect annual free-cash flow positive, new google assistant features turn on bedroom lights read weather news turn coffee maker on good news right you have android phone google assistant do all of this, program it in advance have to be smart technology back to you. >> thank you gerri coming up hitting the world in top rated car kelly blue books best buy award winners maria is on the plaza. >> baby you can drive my car ♪ ♪ yes, i am gonna be a star, baby you can drive my car, cause baby i love you ♪

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maria: coming from outside fox plaza right now looking at the best buys of 2019 in in auto sector kelly blue book with 2019 best buy awards picking "top model" cars, in 14 different categories joining me winning models executive editor michael, great to see you. thank you for joining us what goes into coming up with this award what are you looking for. >> actually our team we've got 10 people men and women on team, start beginning of the year looking brand-new cars come out we immediately start driving these things more than 300 models on market right now. >> wow. >> driving the cars, and by the end of the year we've got 50 fine lifrts we vote talk about residual values picked 14 best categories. >> very good metrics first car winner best new model 2019 volvo xc40.

>> this is all new vehicle, unlike most vehicles you see in the past most boxy they dropped all that this is stylish, fun, exciting kind of sporty look a up ify, 2019 turbo charge four cylinder a really, really -- variance. >> gorgeous what this is about. >> this gets -- people buy cars based on character, perce percent. >> he personality. >> 2019 lexus es very luxurious. >> 2019 brand-new platform wider longer more spacious. >> i like it. >> let's check it out. >> he is kort model, look how he gorgeous, all luxury but a sporty interior exterior wheels. >> nice. >> never see -- knee

personality fun the price in starts 34,000 dollars. >> what about the volvo. >> starts 34,000. >> this one 40,,000. >> there is fifth year in a row motivating five years foert f-150 top pickup truck i could have guessed that f-150. >> 13th generation aluminum body over a steal frame, super durable, reliable workhorse get this luxury just as well appointed almost as lexus. >> interesting that ford is this is the jewel bread and butter not even doing the vehicles they used to -- >> best owned vehicle in america five years now best-selling vehicle. >> not best-selling truck about why is s150 so popular doefrgs the best payload

towing capacity comfortable roomy works. >> thank you so much, 3 1 degrees on the plaza we'll be right back.

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>> big thank you and fantastic panel this morning thanks very much for joining us have a great day everybody. stuart varney coming to you from the top winner of the luxury car, the lexus over to you. take it away, stew. >> you look in it and good morning to you. [laughter] buy it okay. good morning everyone. constitutional crisis looms in britain all about the u.k. leaving the european union got her cab met to agree to a deal then her minister in charge of brexit resigned another cabinet and two secretaries resigned. her government could fall. general election may be required a second brexit referendum is possible. that has not helped our market.