tv Maria Bartiromos Wall Street FOX Business November 7, 2020 10:30am-11:01am EST
interesting pick. carlton, ben, reshma, good ideas. thank you so much. to read more, check out this week's edition at barron's.com. don't forget to follow us @bare louis vuitton's online. -- barron's online. ♪ >> from the fox studios in new york city, this is maria bartiromo's "wall street." maria: happy weekend to all. welcome to the program that analyzes the week that was and helps position you for the week ahead. i'm maria bartiromo. what a week it was. legal ballots over the election are heating up. i'll be speaking with a key player in the 2000 bush/gore florida recount, former florida secretary of state katherine harris is coming up. but first, top newsmakers in this week's edition of "the week's talkers."
watch. you think something switched, something changed in terms of sentiments, that we got more claire few -- clarity? >> mainstream media, they've suppressed the reality over the bidens. maria: there were 138,000 ballots dropped in the middle of the night in wisconsin all for joe biden, not one for trump in that 138,000. >> president trump won an overwhelming victory on tuesday night with certifiable, verifiable legal it votes. the fact is the president was reelected. maria: i know that you're supporting joe biden, i get that, david, but how do you know there's no evidence? >> i think it's a fair point that we don't know. maria: your reaction to what we saw in our streets across the country last night. >> i think it was mostly peaceful, but this is just the warmup. today has been declared a national day of protest, so you're going to have hundreds of protests throughout the country. maria: congressman-elect,
congratulations to you. >> maria, i gotta saw that still sounds a little strange to me. i'm not exactly sure how hi feelings are right now, but i'm so honored and so humbled by the trust that western carolina's placed in me. maria: a big week on markets, stocks surging this week on the likelihood of a divided government. the blue wave failing to materialize. the dow's second best election week in history. but there are some senate races still up in the air this weekend, two in georgia likely headed for a january runoff, so it is possible we could see a 50-50 split where a potential vice president harris would cast any deciding vote, joining me now to talk about that is stephanie pomeroy and anthony chan. great to see you this weekend. thank you so much for being here. steph gnu, let me kick it off
with you. if the democrats win those seats, will we see a decline in the market on the expectations of those progressive policies moving in? >> yeah, well, i mean, obviously the market has gotten really excited about the prospect of a divided government. and, you know, frankly i don't even think that that's such a compelling argument because the republicans are already talking about caving. you know, mitch mcconnell is softening to the bailout for the states which was sort of their line in the sand on this second e wave of covid relief. so, you know, i have zero confidence that the republicans really hold the line on some of this, you know, countercyclical economic policy. but even if they do, i think what we come down to is in 2016 the markets had a rationale for going up. it was based on probably the most sweeping pro-business agenda we've seen since ronald reagan in 1980. the rationale today is naked
stimulus. it's not based on any kind of pro-benefit policy. it's a hope that we don't repeal all of the work that's been done, but it's really a wager on short-term fiscal stimulus monetized by the fed. so i think that that's very shortsightedded on the part of the market. and i also think there's a long-term -- we can talk about this maybe later -- a long-term issue about selling progress on putting a check against china which is a huge long-term issue for the u.s. geo politically and economically. and that's all going to come to a grinding halt which i think, you know, has a real, has real consequences for u.s. hegemon gnu in the years to come. maria: you really make some excellent points there. certainly, i agree with you on china. in terms of republicans holding the line, we'll see if we
actually see them roll over, then you're saying maybe we could see some of those policies get through. are you talking about joe biden's plans to talk about $4 trillion, stephanie? >> well, hopefully, we would never see anything that dramatic. i think the republicans would balk at s&p some of the extreme policies, green new deal, getting rudd of fracking, but i wouldn't rule out them coming to the table and saying, look, we're come together on infrastructure, and we'll pay for it by nudging up taxes on the wealthiest, you know, 1% or 10% or whatever, you know, i don't rule that out. and i think the markets are getting overly excited and confident that they've got this all figured out. and, you know, if it's biden, there's no harm going to be done. i'm not sure that that's true, but more than that, the fact that there might not be harm done isn't as compelling a backdrop as trump's agenda which
was positive. we were creating economic growth. here we're just talking about limiting economic damage. so that, again, from these valuations, i mean, we've never seen a market at these valuations, strikes me as a very dangerous setup for the financial markets moving forward. maria: yeah. all really important points. meanwhile, on friday we got the jobs numbers a little bit better than the expected, anthony. what was your reaction to what we saw for jobs in october? wages going up as well, 638,000 jobs added to the pay rolls in the month of october. >> well, maria, that was a great number for the employment report. and, by the way, it gets even better because if you look at the household survey that's used to compute the unemployment rate, not only did it go down to level that no one imagined, but you increased 2 million jobs there. usually i look at both surveys, and i see the truth isesome in
the middle. so you've got the 2.2 million and the 638,000, so we're looking at a number that's about 1.4 million jobs. now, that's great news. the only fly in the ointment is we still have more jobs to create, another 9 million if you look at the household survey from the pre-pandemic and another 10 million if you look at it at the establishment survey. so we have a lot a a lot of jobo create. at this pace if you're looking at the 638,000 jobs, another 15 months to get there. what we saw with this report is really the last remaining remnants of the bipartisan stimulus package that was passed which is why we need another one. and i'm confident that we will see both political parties signing on. it may not be as large, but they will sign on. and in terms of the equity market, they've got to love this
because if you have a divided government, that means some of the things that stephanie pointed out that she's concerned about are not going to happen. like, for example, an increase in corporate taxes. that was going to reduce. let's face the facts, the stock market is not red, it is not blue, it only looks at green dollars, and this means higher corporate profits, higher stock prices. maria: yeah. well, we'll see, the point stephanie made is there will be a negotiation for an infrastructure package. but i want to get your take the on housing expect consumer which has been so strong. let's take a short break, and we've got a lot more with stephanie and anthony when we come back, plus, by interview with a central figure in the bush/gore legal challenge, former secretary of state from florida katherine harris on what she's seeing this time around. before nexium 24hr, anna could only imagine a comfortable night's sleep without frequent heartburn waking her up. now, that dream... . ...is her reality. nexium 24hr stops acid before it starts,
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mavens president stephanie pom soy and chief economist anthony chan. guys, i want to look further into 2021 now as we look at what's going on in terms of the legal aspects of the results of this presidential election. we know that the federal reserve is going to be there and continue with these rates at rock bottom levels. anthony, give us your take on housing and the consumer, two areas, probably the best areas of the economic backdrop so far. >> yes, maria, those are the two best areas. and for housing, we know that housing benefits from a lower but longer strategy pursued by the fed. but, of course, jay powell has basically hinted if you have a divided government and the size of the stimulus package is going to be smaller, they will offset that with increased actions. so what you're going to have a is a lower for longer policy being replaced by a lower for even longer strategy, and that's going to be very positive for housing because housing benefits from extremely low interest
rates. and for the consumer, as you start to recover -- and, of course, this latest employment report shows you the economy's already begunking to improve and will continue even more after you get greater progress on the therapeutics and vaccine -- guess what? consumer spending, as you start to create jobs, will, in fact, not disappoint the economy and be a strong performer. maria: yeah. but that's all contingent on an economy that stays open. stephanie, we may very well see lockdowns. look what's going on in europe right now. you've got a lockdown in the u.k., in france, in germany. give us your take, stephanie, on longer term what does 2021 look like from your standpoint? >> well, as you know, biden talked about shutting it back down again. that's anathema to the economy and the markets. it would be the worst with thing and would, obviously, put a stop to all the progress that we've made thus far in clawing our way back. but i guess my point would be i
think at the end of this whole covid episode, employment will still settle at a much lower level than it was prepandemic. we already know a lot of businesses are fundamentally going to change and be less interested in going to movie theaters and having conventions and that sort of thing, more people working from home. there has been structural shifts as a result of in that will limit -- this that will limit some of the recould have in employment -- recovery in employment. and i would also note, this may get a little wonky, but going into this pandemic employment growth was running well ahead of where it normally does relative to corporate profit growth. and normally the two of those move together, you can barely distinguish one from the other in terms of a chart of both. and this time what you saw was corporate profit growth really kind of sidelining and employment growth continuing. one might argue there was a little bit of excess employment going into the pandemic that i
it kind of just bolsters that idea that maybe we're going to settle at a higher level, the unemployment rate when all is said and done and we finally do get through, this but the vaccine creates its own issues x. this is sort of the irony of the backdrop for the markets right now. they're so focused on fiscal stimulus and the fed staying in there and keeping a cap on the interest rate from all of this, you know, massive fiscal stimulus that we create a problem where if we get a vaccine and the economy opens, then the rationale for the fed to continue to hold down interest rates is removed, and it makes it much harder for them to continue this massive qe without looking like they're just nakedly monetizing the government account. so that could create a real obstacle to the market. ironically, you know, reopening the economy and getting back to business could create an issue
where rates start to go up, and the fed has to step away, and the markets wouldn't like to see that whatsoever. maria: well, it's certainly something to think about as we've sort of gotten into this position of expecting rates where they are. finish great to talk with you both this weekend. thank you so much, stephanie pomboy and anthony chan. quick break and then getting the count correct. former florida secretary of state katherine harris, a key player in the 2000 florida recount, discusses the current election battle amid claims of voter fraud. that's coming up, stay with us. >> i think there's going to be a lot of litigation because we have so much evidence, so much proof, and it's going to end up perhaps at the highest [ thunder rumbles ] [ engine rumbling ]
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♪ ♪ >> people know what's happening, and they see what's happening, and it's before their eyes. and there are many instances which will be reported very shortly. there's tremendous litigation going on, and this is a case where they're trying to steal an election. they're trying to rig an election, and we can't let that happen. maria: the president vowing more legal action against battleground states over what he says is fraudulent ballot counting. i spoke with the former florida secretary of state, katherine harris. she was there during the 2000 florida recount. here's what she says she's seeing now. >> i find it rather extraordinary that perhaps republican workers are being excluded, that there's not the transparency that the kind of verifications are not being insured and that you have governors, secretaries of state, attorneys general stating that they're sure biden will win. as an elected official, you must be more pure than peter's wife. you might have your preferences,
but you must follow the law. maria: exactly, katherine. so, i mean, you know, this is just chipping away at the trust in this process in america. i mean, these are the kinds of things that happen in banana republics. can you compare what went on in the year 2000 and why, you know, you had transparency there but you don't feel like you have transparency here? >> we didn't have a constitutional crisis in florida. we had a close race, and our laws are sufficient. i tried to pass laws when i was in the senate, but no one had the political will. we did so after the 2000 election, and now for 18 years we've had amazing elections with security and people feel it has integrity. so we've gone from the whipping boy to the top of the class. and as the model now, there's so many opportunities for these other states to follow them, and they've e chosen not to. maria: do you think that these lawsuits will be able to get to the bottom of it?
will the trump campaign be successful in identifying fraud if there is? >> well, certainly they must be successful, and the law -- we had, the rule of law is so important in the united states. and those judges should be impartial, the law should be followed. one of my biggest concerns is that as you saw in norman coleman's u.s. senate race, they tabulated the ballots in one fashion, and when it came to absentee or disputed ballots, they went to another standard such that the al franken could win by 327 votes. laws in each state are complex, and they're going to attract lawyers. but the most important aspect is that the uniform standards continue across the board and trump holds them to account legally. maria: tell me how you believe this plays out. >> well, for 36 days the american public was patient with us, and the rule of law prevailed. so i'm hoping that these elected
officials in each state will allow transparency, will follow the law and follow the uniform standard and not change the laws midstream. and i think that's extremely important and that the security of these bah ballots is -- ballots are guaranteed that more ball on thes aren't just appearing. i don't understand how 138,000 ballot toes solely voting for biden could appear. that's statistically impossible. is so i know that trump has a great team, and i know that they're going to fight to insure the integrity of the law. no matter what side of the aisle you're on, you want to insure that the president of the united states, the more important role in the -- most important role in the world, is successful in terms of the legalities. maria: exactly. now, what you just referred to, the 138,000 votes, so in wisconsin the board of elections said in the middle of the night or, look, we're going to stop down and resume tomorrow. the president made comments, everybody went to sleep, and
then in the middle of the night, two in the morning, 138,000 ballots showed up. every one of them for joe biden. zero for president trump. i mean, you just said it's statistically impossible. how is this allowed to stand? where did these 138,000 ballots come from? and they're all joe biden. >> it doesn't make any sense, maria. and so more than half the country is standing by questioning what is going to happen and hoping that our laws will survive. if it has to go to the supreme court, then so be it. maria: you know, this is the reason that we need to see accountability, and this is the reason -- >> yes. maria: we need to hear from bill barr and john durham after what took place in 2016. because if we don't have accountability to make sure that the cheaters, the fraudsters, those people who decided they wanted to wiretap unlawfully
wiretap innocent citizens like they did with carter page and others, that they are brought to justice so that people could actually trust in the system. where is bill barr, where is john durham? because the more days that go on that we don't have accountability, the more what you're saying will take place and deepen. people do not trust the system, and that's exactly what the case is in places like russia, where civil, qatar -- brazil, qatar. the list goes on. this is america. and this is disheartening, katherine. >> it certainly is. maria: is there anything that can be done other than what the trump campaign is doing? what else should be done? >> i think the people in each state need to do their best to hold those elected officials accountable. certainly if there's pressure exercised in each state, maybe they'll pay more attention. and then we have to follow the legal process. it has the play out. maria: my thanks to katherine harris. don't go anywhere, more "wall street" right after this.
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maria: welcome back. that'll do it for us for this weekend. thank you so much for joining us. join us next friday on the fox business channel, 9 p.m. eastern for another edition of "wall street," and i'll see you this week over on fox news for "sunday morning futures" on the fox news channel. kevin mccarthy, lindsey graham and former new york mayor rudy giuliani along with trey gowdy, my special guests. catch the show live,10 a.m.
eastern on fox news. smart -- start smart every weekday for "mornings with maria" right here on fox business. thanks so much for being here, i'll see you again next time. ♪ ♪ ♪ gerry: welcome to the "wall street journal at large." well, we're in overtime in the presidential election. now, joe biden does seem to be edging closer and closer to being anointed president, but it could be a good while yet as there are legal challenges and results that suggest the race could still be on a razor's edge. one thing is clear, however, americans shockingly ignored the instructions they've been cheerily given by pundits, pollsters, pop stars and others and, of course, the media to deliver a biden blowout.