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tv   Countdown to the Closing Bell With Liz Claman  FOX Business  January 9, 2015 3:00pm-4:01pm EST

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put a lid on that thing and turn on the heat. jeff flock, thank you so much. [laughter] that is all we have for you. i hope that you are making money today in spite of all the serious events going on. the market right now down 145. "countdown" starts right now. liz: thank you very much, melissa. breaking news out of france, french president francois hollande saying that the nation should brace itself, quote, france will still see more threats. here's what we know. three gunmen have been killed by french police and one suspect still at large after one gwen were holed up -- gunmen were holed up at two separate locations. one hostage was rescued at one location, and these two brothers -- the muslim terrorists whose wanted posters had been beamed to all parts of the globe -- were shot dead. simultaneously, police killed gunman iowa -- amedy coulibaly. four hostages killed in the
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shootout. the saga began on wednesday when kouachi brothers stormed the offices of french satirical magazine charlie hebdo in paris killing the people including a muslim police officer, right there, who had begged for his life. the gunmen managed to escape by car causing one of france's biggest manhunts ever. a 26-year-old female suspect right there on the left of your screen still at large. hayat boumeddiene is wanted in the murder of a policewoman outside paris on thursday. she managed to escape in the chaos surrounding the grocery store shooting earlier today. with the backdrop of breaking news, it's the last hour of trades, so let's start the countdown. ♪ ♪ liz: breaking news, i'm liz claman, along with the rest of the world investors have been
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paying close attention to the developments in france. right now we are off session lows, but we are looking at a broad-based selloff. at one point the dow jones industrials was down 221 points. the session low came at that crucial moment around 11:16 a.m. eastern time which was roughly the same time we received word that french police and special forces had engaged and killed three gunmen in separate hostage sites in france. major european markets finishing lower today, germany's dax finishing down nearly 2%. the big question today is whether other terrorist sleeper cells are out there ready to attack. we just got a warning from britain's mi5 that syrian-based terrorists are planning to carry out attacks in the u.k. we bring in james conway, former fbi special agent who managed counterterrorism investigations here in the u.s. he is now global intel strategies president. welcome, sir, and thank you for joining us. >> good afternoon. liz: this was home groan terror
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coming -- home grown terror coming from the muslim community in france. from jersey city to detroit, we have pockets like that. please be honest with our viewers right now, what happened in paris, could it happen here, and what do we do to prevent it? >> well, absolutely, it could happen here. i think the french have a more grave situation when you look at their demographics. upwards of 10% of the french population is islamic, and many of them are disenfranchised, angry young men who come from algeria and some of former african colonies. their situation is different than ours, and it is a much more volatile situation. particularly in the wake of what we've seen in the last two days. but, yes, we here in the united states, we have a significant counterterrorism threat also here based on our demographics, and some of what we are doing and what we're not doing from a policy and lawmaker standpoint
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in the united states. liz: what are we not doing that we need to do, james? this is at fever pitch at this point. >> we're not establishing a tough enough counterterrorism posture in this country. we have individuals that are traveling to the battlefields of iraq and syria with u.s. passports. they will become much more hardened. they will come pack with trade craft -- come back with trade craft including kidnapping techniques, automatic weapons techniques, bomb-making techniques, and they're going to return to u.s. soil. we need to pull their passports as soon as they leave the united states. we need to charge them under u.s. law for material support of terrorist activity. we need to get tough, and i know that the immigration and the border security issue constantly comes up, but we have literally hundreds of thousands of individuals that come from special interest countries, and that's the word in the intelligence community. we call them special interest aliens. they come from countries that support or have a significant presence of terrorist organizations. those people have been captured and deported, and they have never left the united states.
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they remain on u.s. soil. liz: yeah, it really does sound that we need to be way more vigilant on this, this point. but i agree with you, i do think france has a different situation. for people who don't know the history, back in the '70s and '80s they allowed massive influxes of muslim communities. they wanted less expensive labor, they kept them in the outer areas, and they didn't assimilate. here in the u.s., listen, they've had honor killings in cleveland with muslim families. >> sure. liz: you don't even have to step foot outside the nation to have that psychology. >> no. here in north america, ottawa, a hatchet attack in new york, the subway threats in new york, washington d.c. look, we've been lucky in this country. there have been over 75 acts of terrorism that have been thwarted in the 11th hour by the united states by the good work of the local police, homeland security and others.
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but that threat exists and continues to exist in, in my view, is going to grow. particularly with what is going on in iraq and syria and those fighters, those freedom fighters that have left u.s. soil, left western nations and are traveling there and fighting on the battlefield and becoming much more hardened. liz: luck with a lot of effort on behalf of many police departments and the> thank you. liz: former fbi counterterrorism expert. we are going to get you any breaking news, i promise you that, that's related to this story as it becomes available, so don't worry about that. we do have the other important headline for the markets today. the very last jobs report of 2014, this was good news. it wrapped up the best year for jobs growth in 15 years. so first to the part where we
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talk about lots to cheer about in december, north of 200,000 jobs. actually, ended up being 252,000, expectation was just about 240,000. that's the lowest unemployment rate since june of 2008. a couple of upward revisions for november and october, but the red flags are still in place. most disconcerting? sag significant wage growth. in fact -- stagnant wage growth. also on the worry radar is the labor force participation rate sliding to new lows. this was bad, but this was a new low not seen in nearly 37 years. and, of course, the so-called skills gap in the u.s. per sixtily weighing down the recovery. which way will the markets tip as we kick off a new year? who better to ask than u.s. labor secretary tom perez? welcome, mr. secretary? >> it's always great to be with you, liz. happy new year to you and your listeners. liz: and to you too, sir. we had solid numbers but, oddly, the wages looked a little more stagnant than any had hoped.
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why are we seeing job growth which i guess intuitively you would think if people with hiring more, we would have seen wages tuck up a bit. what is going on there? >> i think it's important not only to look at last month, but to look at last year because that gives us the trend data. and as you correctly point out, last year was the best year we've had since 1999. we see three million jobs created last year, we see an economy where the growth is broadly based. construction had a great month last year and a very good year. the average person on an assembly line's working 42 hours a week. the job growth that was best was in business and professional services which are by and large very, very well-paying jobs. so we're seeing that prosper by, and when you look at -- prosperity, and when you look at the remarkable drop in the unemployment rate, we haven't had a drop in the rate in one year since, you know, 10, 20 years. and what's helpful to know for your listeners is that the
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unemployment rate went down precipitously primarily because more unemployed people found work. that's really important. and -- liz: well -- >> and your correct though, liz, the unfinished business you've put your finger on as you always do which is we need to make sure we have shared prosperity, and we need to make sure that, you know, there's too many people who are working hard and haven't gotten a raise in years. we had the wage issue from last month, you're correct, the month before was a very good month. last year overall we had slight real wage growth. but slight real wage growth is not enough. liz: right. we need to see more. mr. secretary, let me jump in because you brought up two things. construction numbers, very good. i'll talk about housing in just a minute if you can deduce any positive moves from that, but first, you also mentioned full-time workers. well, you said 40-hour workweeks plus. obamacare, the full-time definition of 40-hour minimum,
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the house approved that definition versus a 30-hour minimum. this matters when it comes to people and companies providing health care. my question to you, in your opinion, will the bill that defines full time as 40 hours a workweek, does that bother you? i've always thought 40 hours was full time, but does it bother you? because it doesn't seem the president wants to go in that direction. >> well, you know, we've had a lot of conversations, and i've heard to opponents of the affordable care act say the affordable care act is a job killer. we now have a few years of experience, and we've just had our 58th consecutive month of private sector job growth. folks have looked at the affordable care act and its impact on job creation, and we've seen that despite the protestations of the folks who oppose the ea ford bl care act, it's not a job killer.
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there are a number of things that we'd love to improve about the implementation of the affordable care act. and, you know, the problem is, you know, most of the opponents what they really want to do is just repeal it. and now we've had ten million folks who have gotten access to health coverage including many folks that i've met. and one guy in tennessee who got his coverage on march 1st, had his liver transplant two weeks later. it's changed his life. so, you know, when i hear the, well, the affordable care act's a job killer, just because you say something, you know, 20, 30 times, as some have said, doesn't make it true -- liz: and, indeed, you know, as we talk about this last year, strongest job growth in 15 years, those are the statistics. quickly on keystone, the pipeline. of course, the house approved it once again today. it's created about 40,000 jobs just for the construction. in the end, it would have about, i guess, 50 jobs to operate. but why does it make sense to fight keystone on behalf of the way that the administration
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looks at it? >> well, it's interesting. my understanding is that the direct construction jobs that are created are something like 4,000. to put that in context, last month there were 48,000 construction jobs created. so when we, when we talk about the job boom that's going to result from the keystone pipeline, you know, i've taken a close look at that as the labor secretary, and i haven't exactly seen a job boom. when one month we've got 12 times more jobs created in this sector than the entire project, it's not exactly a job boom. liz: okay. >> the president's been clear about the process and the executive authority and things of that nature. so, you know, we're going to continue to move forward with -- liz: okay. >> -- our efforts to continue to grow the economy and create jobs. that's the conversation we're having. and 2014 was a great year for job creation. i think the keys to creating jobs in 2015 are things like,
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you know, transportation infrastructure which would create oodles of jobs. liz: yeah. well, let's see if we can, we'll see if we can fix our bridges. we know we need that. secretary, we must go. i apologize. >> okay. liz: with all the breaking news -- >> no, i totally appreciate that. our prayers are with the people of france. take care. liz: you couldn't say it better. secretary tom perez live from d.c. closing bell, 47 minutes away. we're coming down closer to the flat line. that is the good news. in the meantime, as we promised, we're following all the breaking news still unfolding out of france, including the search for that female suspect who escaped a shootout with french police today. and herb life punch -- herbalife punching back against bill ackman. charlie gasparino rushing down
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here with exclusive details. all in just a moment. you cannot miss this installation of the ongoing drama of herbalife v. ackman. and last year was just a banner year for car sales which, actually, helped the company hook its wings to harmon. no surprise, shares up 19% over the last year. we've got the ceo on what he's coming up with next for your car. you're gonna love this one, trust us. ♪ ♪ you total your brand new car.
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for a free quote today,call liberty mutual insurance at see car insurance in a whole new light. liberty mutual insurance. ♪ ♪ liz: developing news on the markets as you see with the dow jones industrials down about 107 points and the s&p down 9, the s&p had been down double digits earlier today, coming up off the floor, but now in the red for 2015 what is driving this dip when just yesterday we were higher? is it the fear of the fed, economic data or very frightening headlines overseas? or are the markets just feeling that ripple effect of the tragedy in paris? traders at the new york stock exchange, cme group and the nymex. guys, we're going to whip through this. keith bliss, right off the bat i have to ask you, you know, the paris situation really frightened the markets for a moment.
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does this move forward tomorrow, or do we just forget about it when it comes to the investor perspective? >> yeah. i don't think it will, liz. you know, it'll just roll right off the backs like a lot of the terrorist situations we've been dealing with, quite candidly, over the last 13 or 14 years. we'll shake it the markets maye skittish about other things, particularly with global growth, the deflationary pulse is beating strictly through all the major economies right now, but as far as the situation in paris, certainly we're all pleased it got resolved, we're sad that it happened, but i don't think it'll have an impact on the markets going forward. liz: jeff grossman, looking at oil today it was very interesting, you have to tell us what happened in the 2 p.m. eastern hour just before the close, turned to the upside and then closed downward, lower in the aftermarket session. what's going on in the psychology of oil traders? >> it's very tough to really discern what's going on here because it's a very, very nervous market. everyone -- liz: yeah, but to turn positive, jeff, that was strange, wasn't
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it? >> oh, not really. listen, i think this market has found a bit of a base here. in fact, i think the shorts who have been in control for the last three to four weeks here without any problem have really not had any sort of day of reckoning. this market now may have run out of strong sellers, weak longs, and if nothing else i've been talking about, it seems to be the case where the market may have found a bit of a base here. and, again, with a little geopolitical uncertainty and the like, i think this market if nothing else is looking for a little bit of a place to go a little higher here and still in the gap -- fill in the gaps. liz: oil just for you who haven't heard the price is at $48.30 a barrel at this moment in the after market. chris, best trade to make right now with about 40 minutes left in the session, i guess to position yourself for next week? >> you talking to me, liz? liz: chris. >> oh. >> yeah, i would say a good trade for next week if you're
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really concerned that there's going to be a ripple effect with more issues over in europe, you know, you buy yourself some s&p puts. i mean, that's the best way to protect yourself against the big surprise. and with the market at these levels, they have 100, 200, 300 range in the dow is not that significant. a 5% move is 900 points. so we're going to get into an environment where we're going to be volatile, and if you're worried about the downside, you know, buy those cheap puts. that's the only thing that can help you sleep at night if you're long stocks. liz: we have been telling people that from the floor of the cme, a lot of the traders there. thank you so much. a very busy day of breaking news. we appreciate you coming on. 39 minutes before the closing bell rings. oh, yes, we're talking about frigid temperatures at the moment. what do we have as we look forward to one of the biggest football games around? freezing football prep, we go to jeff flock to prep us. >> reporter: no kidding, i'll tell ya, it is crazy out here, liz. i'm in the legendary lambeau
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field, and you think i'm cold? look at these guys, i've got a picture for you, look at these guys washing the windows in the sky boxes. it's -20 wind chill out here. we'll have the full report on the sunday game, ice bowl ii. stay tuned.
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♪ ♪ liz: football fans braving frigid temperatures this weekend for what could be the second ice bowl of the century, right? green bay hosting the packers/cowboys game this sunday -- >> go, cowboys -- liz: no, no, getting lambeau field ready has been quite the feat. look at all these people trying to move the snow. will this rival 1967's ice bowl? jeff flock live at lambeau field in green bay, i'm all for green bay right now. >> reporter: it was incredible that watch that ice shoveling this morning, people coming in. talk about job creation, that was job creation this morning. $10 an hour come in and shovel the stadium out, and look,
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they've shoveled it out. all the ice is out of here now. i think dave's able the get a shot with the camera getting strung up for the game on sunday on fox, by the way. you talk about the second ice bowl, compared to the first one, i want to show you the statistics, the conditions then. it's not going to be that bad, thank god. -14 actual temperature back in 1967 with -37 wind chill. incredible. it's only going to be about 18. 18? balmy by our standards. maybe not so for the football players. and if you look at the forecast, today, tomorrow and the next day it's moderating, but it's still going to be pretty cold to play out here. look, if we come back live to this stadium, this is just legendary. and they don't build 'em like this anymore. lambeau field, you know, it's, it's just got so much history there, and they didn't screw it up like they've screwed up soldier field in chicago with a modern design. here you sit on nice hard benches with just a little number on it, you've got salt
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that's going to be at your feet, you know? there's puddles of water. this is real football. this is the way to really enjoy a game. liz: yeah. there's a run on hand warmers, i bet. you know, those little salt packets -- >> reporter: i've got one in my pocket. >> go cowboys. liz: charlie says -- >> reporter: cowboys, my ears. >> jeff, you like the cowboys, right? take the cowboys and the points? >> reporter: i like the bears. >> take cowboys and the points. liz: cowboys on the points, mr. flock -- >> add the points, not on the points. liz: that's what i said. >> you have no idea what you're talking about when it comes to this. liz: what can i say? jeff, it's great to see you, stay warm. i'm now going to gouge out charlie's eye with this pen. [laughter] >> she knows nothing about football. liz: i know i like the browns, that's all that matters to me.
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wait! activist investor bill ackman throwing the punches this week, taking a beating. it's down about three and a third percent, just a second ago it was, now looking to get regulators involved. herbalife is doing offense instead of defense, speaking of football about which i know nothing. >> well, yesterday we reported they were planning some sort of counteroffensive. they've in the past talked about filing some sort of civil suit against ackman for libel for attacking them. remember, he thinks they're a pyramid scheme, he's shorting them, thinks it's a massive fraud. he's been at it again. he apparently had a meeting with them, canceled it and went on cnbc to attack them. liz: this behavior's very interesting. >> a lot of people say he's right. by the way, he's been more right than wrong lately on herbalife, but this is what we do know about what herbalife is trying to do in terms of their counterattack and the reel aspect. -- legal aspect.
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they are trying to prod regulators to going after ackman, to file some sort of stock manipulation chargings. i don't know how they get there, to be honest with you. but i do know they are prodding regulators, sec, even the justice department to go after him to say that this guy is doing stuff, leaking stuff, going after the company, saying stuff to move the stock and to profit off of that. now, how they get there, i don't know. i will tell you this, i'm dubious about this. i know they're trying it. there's no doubt in my mind they're trying to get the regulators to -- the record of stock manipulation charges against short sellers has been pretty thin, you know? listen, regulators, particularly at the sec, view short selling as a necessary ingredient to keeping the markets safe -- liz: he went to d.c., he got special access to certain congressmen, i mean, ackman has gone beyond the call of duty to -- >> he apparently had some whistleblower on the payroll or something along those lines. a lot of crazy stuff.
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listen, they're making the case. whether that case happens or not, i can't tell you. just from my standpoint watching this stuff, and i cover this like baseball, you know that. i have no horse in this race. the, you know, people for years said steve cohen is guilty of stock manipulation, things of that nature. they never got him, okay? now, i'm not saying he is, i'm just saying people said that. these cases are difficult to make, and regulators like shorts. they think it's sort of a hedge on the market against all the promotions, the sleazy penny stock no promotion that goes on. guys like ackman, for better or worse, keep the markets safe, and they think it's their first amendment right. i'm just dubious. i know they're pushing. if it happens, yet another leg to this incredibly crazy story involving a company that, to be honest with you, it's not the biggest company in the world. you know, we're not talking -- liz: $33 stock right now. charlie, thanks. it's good to see you. >> good to see you back. liz: glad to be here.
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>> can't wait to do davos with you. liz: can you believe i'm taking this guy with me? >> we going to party? what are the swiss jails like? >> i speak german, not french. >> so they shoot you. [laughter] liz: thank you, charlie. we shall see you later. think you only get first class sound in the privacy of your own home? you obviously haven't been in a car with a harmon stereo system. the ceo joining me with what he says are personalized areas in one single vehicle so four people can be listening each to their own music. and what's the catalyst that'll verge trigger a rate hike in this year? our team of experts standing by to break down what they belief is the secret recipe. ♪ ♪
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so ally bank really has no hidden fethat's right. accounts?
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it's just that i'm worried about you know "hidden things..." ok, why's that? no hidden fees, from the bank where no branches equals great rates. ♪ ♪ liz: i'm fresh off the plane from vegas where i was at the consumer electronics show which was literally exploding with new innovations in every single corner of the 15 miles of display space, 15 one company in particular turning up the volume, harman international, the company behind more than 25 million automobiles in landmark locations like madison square garden audio and all of the big arenas around the world providing you your super bowl halftime entertainment, they're the ones who make sure you hear it properly. to now hear what this company is drumming up for 2015, harman international chairman and ceo dinesh dinesh paliwal, and
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behind you is really representative of what has been so wonderful for harman. you've got a consumer division, the automobile division, but talk about how great those sales this past year have affected your business, dinesh. >> it's been a pretty good ride, liz. first of all, good to be on your show. i wish you were here live, but we're going to do the best anyway. liz: right. >> it's been a good industry pick up, and i think our innovations in audio as well as connected car, safety/security has really made the difference, and we are seeing tremendous expansion in those categories. besides the innovations like individual sound zones is a major breakthrough in the industry, and that's something i'm so excited about. this has been a request for many years from the industry. now you can make confidential phone calls from the rear seat while a driver is not distracted or your kids could be listening watching movies, and your
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parents could be doing their own things. so that's truly connected and freedom and liberty and without sacrifice. liz: so personal audio zones within a very small space because i have to tell you, dinesh, and you know my family, my daughter wants to hear nicki minaj, my son wants taylor swift and liz, of course, i want to hear the eagles because i'm of that era. how good is it really to have different zones with everybody just sitting there? >> you know, i think this is very practical way of doing and going about -- that doesn't mean you cannot be listening to the same thing. my family's like yours, they all want to do their own thing. so i think this is the freedom. places like america, china, people are sitting in the back, in the backseat and spend sometimes 10, 12 hours a week, that's a very productive time to make confidential phone calls and what have you, and you don't want your fellow passengers to be part of that.
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so i think this was a need, and i think we're filling a big, big need here. and this will also have implications in hospitals and hotels. you generally check in in a five-star hotel and you say give me higher floor so i won't have the noise in my room. this will solve in, many industrial problems. liz: dinesh, you have been at the forefront of high-tech audio, and you are known as one of the smartest ceos in technology. look at the stock. over the past two years, up 103%. for harman, har ticker symbol. have fun in vegas, i'll see you next year, okay? i promise. >> thank you, liz. and have a great day. thank you. good to be on your show. liz: anytime, dinesh. dinesh paliwal. we have the closing bell ringing in exactly 20 minutes. 2014 was the best year for employment since 1999, but was it good enough to convince the
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federal reserve to raise rates this year? our experts break down the needed recipe for a rate hike. that's next. and while the markets close at the top of the hour, we are always on call for you. this is what you do, go to very easy. sign up for claman on call. we will deliver the biggest headlines of the day including the late-breaking stuff directly to your smartphone. ♪ ♪ want to know how hard it can be... breathe with copd? it can feel like this. copd includes chronic bronchitis and emphysema. spiriva is a once-daily inhaled... ...copd maintenance treatment... ...that helps open my airways for a full 24 hours. you know, spiriva helps me breathe easier. spiriva handihaler tiotropium bromide inhalation powder does not replace rescue inhalers for
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call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance. ♪ liz: breaking news, the hunt is still on for the female terrorist who is still on the loose in france. listen, this issue that has just happened over the past 48-72
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hours is not just a french problem. a warning from the head of britain's mi5 today that syrian-based terrorists are planning to carry out attacks in the u.k. with us now to detail the situation here, senior fellow at the center for strategic and international studies, is thomas sanderson, an expert in central asian terrorism and overall, mr. sanderson, as you look at this situation, what should we all be thinking about here in the united states? >> well, i think what we need to think about is that all of these incidents -- france, sydney, ottawa, attempts in the united states in times square, over detroit -- these all offer a menu of options that demonstrate the art of the possible for any would-be jihadist, either foreign fighter who's returned or home grown extremist who's been self-radicalized. it gives them a sense of what they can do to heed the call from isis or al-qaeda or others that say to attack those
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that are attacking muslims. now, that's one thing we need to be concerned about. liz: it looks as if they've quelled this particular situation, but the president of france, francois hollande, came out today and sum my said we should expect -- simply said that we should expect others will try to do the same thing once again. clearly, this is just putting a band-aid on a much worse situation. is that correct? >> absolutely. all they're doing today is treating the flare-up of the symptom of going on a tactical mission here to free hostages and to kill or capture the individuals, which they end up killing them. now, again, this is going to be very inspiring to young men and some women as we've seen today who are locally marginalized and radicalized, but also driven to seek a purpose or mission by what they see happening in syria, in mali, yemen and other places. liz: right. listen, aside from a few lone voices in the muslim community,
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they're pretty invisible and silent. you do not see major countries, muslim countries coming out and decrying this. a few people here and there are saying something. isn't in the true issue here, that there is silent appreciation for what these murderers have done? >> well, there are certainly some individuals who appreciate what has happened, but there are also many, many others who are simply afraid to stand up, afraid to speak. ask finding credible -- and finding credible, high profile voices around the world who are willing to stick their necks out, literally, to stand up and say this is wrong, this is not how islam is, nor should it be, it's very difficult for them to mount the courage to stand up and say that. liz: right. which, in essence, leaves the rest of us and many people in the united states and elsewhere saying, well, this must be how muslim relations are. >> which, of course, is terrible, and that certainly does not help the situation. but muslim communities do need to stand up and say this does
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not represent us, does not represent me and stand against it. liz: thomas sanderson, senior fellow at the center for strategic and international studies, we thank you very much. >> you're welcome. liz: now to the biggest economic story in our country. december capped off the best year for employment gains since 1999, well before the financial crisis. is the data enough to convince the fed it's time to raise rates? and if not, what is the recipe? what are the ingredients for a rate hike cake, and what are we currently missing? here to break down, our panel, our star panel, austan goolsbee, university of chicago professor, former chairman of the council of economic advisers, michelle gerard, director and senior economist, and peter kenny. right off the bat, michelle, i'll begin with you as that rbs chief senior economist, what do you think is the recipe, and what might be missing at this point for the fed to simply say let's raise rates? >> well, what's missing is evidence that progress is being
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made not only on the inflation front, but also -- sorry, not only on the employment front, but also the inflation front. we've seen the labor market strengthen, the unemployment rate come down to levels that the fed has indicated it needs to see before hiking interest rates. what isn't happening is inflation moving back up toward its 2% target, and, in fact, the earnings figures this morning were very disappointed, an outright decline in wages, the inflation numbers are moving in the wrong direction. i think that's the factor that continues to puzzle the fed, and i think it's what could, ultimately, end up delaying a bit the beginning of policy normalization. liz: inflation, it's an interesting thing. it means the ability for prices to rise. some people would say i don't want to see rising prices, but when you don't have rising prices, people don't buy things, and we don't have a healthier economy, correct? what do you think are the recipe
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ingredients that we need to see before the fed will pull that rate hike trigger? >> okay. first of all, if i made it, if i made a cake for you, you do not want to be eating it. [laughter] i don't know that you want to ask me about a recipe. [laughter] liz: okay. >> we've had a strong year for employment, but we haven't seen much progress on trying to get even very modest inflation. people say, well, i don't want the price of anything to go up, but if you get in a deflationary environment where the people who owe debts are having to pay back greater and greater shares of their income on that debt, you see in europe and you see in other places where you're in that kind of environment, it's actually very unhealthy. i think the recipe that's needed -- the fed is on path to start tightening, they just don't want to go too fast, and they want to convince themselves, a, that we are truly in the free and clear in the u.s. and, b, that china and
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europe are not going to blow up in our face. liz: well, with a cup of employment sugar, we've got a certain double cup of what's really been good, and that's the stock market, peter, that's your bailiwick, isn't it? the markets look healthy enough, certainly, but do you think that's enough for the fed to look and say, well, now we've gotten people out of less risky assets and into equities at this point, where would you be investing? >> clearly, we had a fairly decent year last year given the fact that we've had several years where we've seen strong double-digit gains for the broad indexes. last year we saw that again. this year we started off with a lot of volatility and, of course, being driven by many of these themes. today the market's down again, i but it's recovered from its lows of the session. clearly, low interest rates, improving consumer confidence, most every major data point is pointing towards continued improvement in the economy, and the one lawyer of the economy that has been a bit of a laggard
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has been home building, single-family home building. i suspect that area will be an area of strength, a sector of strength -- liz: you would say go into those areas. >> i love that sector of the economy and that market. liz: okay. we've got your home builder picks which are some exchange-traded funds. you've got to believe, i don't know if you can see this, michelle, but peter can afford these very fancy tortoise-shell glasses, consumer spending is possibly doing pretty well. isn't consumer spending a crucial, crucial aspect here? >> oh, it's so crucial. i mean, obviously, it's, you know, 70% plus of the u.s. economy. and i think you're exactly right. that's what's really shown a real step up in terms of the strength of growthin the last couple of months. we had a great holiday shopping season, and i think the stage is set for continued strong consumer spending. i mean, gasoline prices, of course, helping. but even away from that these stronger employment numbers, the stronger income growth that
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contributes to that, obviously, all of that has made us very upbeat about the consumer sector going to 2015 and even before we had the icing on the cake -- liz: okay. so we're keeping with the cake theme but, austin, i always ask you what is that one black swan? ten seconds, then i'll ask peter kenney. >> well, i'd say there are two. on the u.s. side we're doing well, but i think pitching our whole hat back to consumers are going to start spending a lot of money, and we're going to start building houses again is not necessarily the sustainable approach that we would want. but i still think europe and china remain the black flies in the cake or however you want to -- [laughter] think of to it. there's a big danger of poison -- liz: peter, your black swan. >> one black swanker deflation. liz: listen, it's great to have all of you, austan goolsbee, michelle gerard and peter
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kenney. we're six minutes away from the closing bell. we're following the selloff which does not look nearly as bad as it did earlier. i dow off its session lows, it's a big weekend for football on fox, but what about the sport that's never without ice? hockey, one of my faves. the greatest and oldest hockey rivalry taking place just a few blocks from here, harvard v. yale. game ambassador of harvard v. or yale hockey legend mark messier here on fox business live. we're excited. stay tuned, hope you are too. ♪ what am i thinking about? foreign markets. asian debt that recognizes the shift in the global economy. you know, the kind that capitalizes on diversity across the credit spectrum and gets exposure to frontier and emerging markets. if you convert 4-quarter p/e of the s&p 500, its yield is doing a lot better... if you've had to become your own investment expert, maybe it's time for bny mellon,
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go to i'm sure you know what this meeting is about. yes, a raise. i'm letting you go. i knew that. you see, this is my amerivest managed... balances. no. portfolio. and if doesn't perform well for two consecutive gold. quarters. quarters...yup. then amerivest gives me back their advisory... stocks. fees. fees. fees for those quarters. yeah. so, i'm confident i'm in good hands. for all the confidence you need. td ameritrade. you got this. liz: we're climbing back down but not the lows of the session. good to be back. david: good to see you again. a little jet lag, but a lot of news is popping from foreign to domestic. liz: nicole petallides has watched every tick of the tape today at the new york stock exchange. what a seesaw day on wall street, nicole. what's the feelings there as we
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finish out the session? is. >> you know, we had two great days, but today we pulled back so much coming in, you had the two days, also we watched france very closely, you have the jobs report which appeared good and the headlines that the wage growth was weaker really gave it all back. you saw selling across the board, all ten sectors lower. david: nicole, it looked like oil was going to rally, but it's come off of its lows, but it is still ending down. how about oil stocks? >> you know, down for the seventh week in a row for oil, and those names such as chevron have been the laggards, halliburton down 1%, valero down 2.7%. liz: retailers were seeing red today, i'm wondering if there was a common theme as to why. >> certainly something the quarterly results, there are some big moves here, bed bath and beyond down 6.7%. however, some of the retailers earlier in the week doing great, so so it's a mixed bag. david: and, unfortunately, financials, the worst performing
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sector -- >> and underperforming this year too. david: yeah. all right. there are the bells. looks like we're going to -- we're off of the lows of of the session, that's the best we can say. liz: indeed. "after the bell" starts right now. ♪ ♪ liz: a brutal ending for . liz: a brutal ending for two deadly hostage situations in paris today.. david: a female gun wielding accomplice is on the run. james, i got to ask you first of all about what might happen? because of course, we're all on tenterhooks whether something else is going to come down over there, we have the one terrorist apparently on the


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