This is a rush transcript from "Sunday Morning Futures," October 26, 2014. This copy may not be in its final form and may be updated.
MARIA BARTIROMO, HOST: Good morning.
Can we keep the lone wolves at bay?
Hi, everyone.
I'm Maria Bartiromo.
This is "Sunday Morning Futures."
Two attacks this past week sparking new concerns about homegrown terrorism. We will talk to a member of the Senate Armed Services Committee about how we can stop this problem in its tracks.
Enjoying these cheap gasoline prices?
Are they about to get cheaper or rise sky high again?
A member of the Saudi royal family will chime in on OPEC's plans and what it means for you the next time you fill her up.
Plus, the CEO of Johnson & Johnson is with us today to talk about what the midterms could look like for your health care coverage, the economy and retail prices. Also, his company's plans for a new Ebola vaccine, as we look ahead on "Sunday Morning Futures."
Radical Islam terrorism in Canada and here in the United States sparking fears of future so-called lone wolf attacks. And that has lawmakers calling for solutions.
David Vitter is a member of the Senate Armed Services Committee.
Senator, good to have you on the program.
SEN. DAVID VITTER, R-LA.: Great to be with you, Maria.
Thank you.
BARTIROMO: Thank you so much for joining us.
So what can or can't lawmakers do to stop this lone wolf scenario in the U.S.?
VITTER: Well, obviously, Maria, it's a difficult problem.
First, I think we need to recognize we are at war. This isn't just a law enforcement issue. We are at war and we need to continue to go on the offense. Being on the defense will never defend all of the targets that are in our society.
Secondly, I think our borders and -- and homeland security are very, very serious concerns. Obviously, that alone won't protect us, because some of these folks could be citizens. But I think our southern border is a much, much more serious problem, really a crisis now, in part, because of this aspect of the situation.
BARTIROMO: Now, I think you make a great point. And that -- and that's what I really want to get into with you, because we can talk about protecting the borders, but what about the idea that there may very well be people here in America that are Americans that -- that are choosing to go this route?
So stay with us, Senator.
VITTER: Sure.
BARTIROMO: A lot to talk about with you, Senator Vitter.
First, though, let's get these recent headlines renewing concerns over homegrown and lone wolf terrorism here in North America.
How do we stop the radicalization of people born and bred on our shores?
Fox News senior correspondent, Eric Shawn, joins us with that angle -- good morning to you, Eric.
ERIC SHAWN, FOX NEWS SENIOR CORRESPONDENT: Good morning, Maria.
And good morning, everyone.
You know, 9/11 was a complicated attack that took years of planning. But now, a terrorist just has to pick up a hatchet or a gun.
You know, terrorism here at home is not new. Back in 1954, Puerto Rican nationalist terrorists opened fire in the House chamber on Capitol Hill and wounded five Congressmen.
The next decade, the Puerto Rican separatist successor, the FALN, bombed and killed its way into infamy.
Also in the 1960s, the Weather Underground, the Symbionese Liberation Army, they all engaged in a violent struggle against American values.
Well, now the radical Islamic terrorists have picked up that fight and walk among us.
Zale Thompson, who was shot to death last week after attacking four New York City police officers with that hatchet reportedly defended ISIS and he called for a revolution against his own country.
Reports say he wrote on Facebook, quote, "America's military is strong abroad but they have never faced an internal mass revolt. Helicopters, big military will be useless on their own soil and they will not be able to defeat our people if we use guerrilla warfare." terrorists have been called lone wolves before, but that turned out to be wrong.
In 1990, El Sayyid Nosair assassinated extremist Rabbi Meir Kahane in a New York City hotel and he was prosecuted as a lone gunman. But it was several years until authorities realized Nosair was actually a member of an insurance terror cell headed by the blind sheikh, Omar Abdel Rahman. Rahman's followers then went on to bomb the World Trade Center back in 1993. And now the calls for jihad and the threat are only stronger.
Thompson, who had the hatchet, like the Tsarnaev brothers in Boston, who allegedly bombed the marathon, may not be direct members of the terrorist group, but ISIS and Al-Qaeda don't need them to be. You know, Al-Qaeda's jihad magazine is named "Inspire" and that is all that is necessary to spur the so-called lone wolves to their murderous actions -- Maria?
BARTIROMO: All right, Eric, thanks very much.
More now with Senator Vitter on this subject.
And, Senator, how worried are you about this lone wolves in the U.S.?
VITTER: Well, I think it's very real. And we need to be on guard about it. We need a full law enforcement and -- and intelligence response. We need major organizations and particularly in places like New York City, infiltrating terrorist cells and terrorist networks so we can get the best intelligence possible.
BARTIROMO: In terms of these -- these attacks in Canada and then the hatchet in the US...
VITTER: Right.
BARTIROMO: -- did that spark new concerns, do you think, about this lone wolf scenario?
VITTER: Well, not brand new, because, Maria, this phenomenon is not brand new.
BARTIROMO: Sure.
VITTER: We've known about it. We've known about the threat. But clearly, it highlights the significant danger and it does increase attention on it.
BARTIROMO: Well, what -- where are we in terms of the fight against ISIS, Senator?
You know, we've been talking for so long about the airstrike campaign.
VITTER: Yes.
BARTIROMO: Is it working?
VITTER: I don't think it is. I think it's largely window dressing, unfortunately. I don't think we have a comprehensive approach, a comprehensive strategy. And I think we need a new resolution in terms of military force for a couple of reasons. One, constitutionally, because we're talking about a whole another country, in part, Syria.
Second, practically, to really engage Congress and the American people and have a full discussion and debate about this so we get to a comprehensive strategy that can work. I don't think we're there yet under President Obama's leadership.
BARTIROMO: Do you think that the strategy changes after the midterms, that we, in fact, do see boots on the ground after the midterms?
VITTER: That's largely up to President Obama as long as he's in charge. I would doubt it. I don't think he's ever going to get to American boots on the ground leading the way.
I hope where we get is a recognition that airstrikes, not a huge campaign, is not going to be close to doing the job and we need to engage our allies much more fully and get some boots on the ground. I'm not -- I'm not advocating Americans leading the way or -- or taking all of the sacrifice by any means.
BARTIROMO: Let's talk about the midterms for a moment, sir.
How are in a majorly tight race.
How do you see it playing out?
VITTER: A great chance for Republicans to pick up the Senate. You know, it takes a net pick up of six seats for Republicans to get the Senate majority. There 10 or 12 very, very competitive races. All but two are currently held by Democrats. So it's very, very possible. And, of course, one of those very competitive races is here in Louisiana, my Democratic colleague, Mary Landrieu, against a Republican congressman, Bill Cassidy.
BARTIROMO: Yes, and do you think it's all about turnout?
What -- what are you expecting in terms of turnout in Louisiana?
VITTER: Well, I really think Senator Landrieu's only shot is to completely rev up the sort of Obama turnout machine. I think under any normal turnout scenario, any traditional metric, she's going to lose, probably in a December run-off. It's going to go to a run-off in December.
So I know they are very, very focused on turnout.
BARTIROMO: And -- and if the GOP takes the Senate, what's the number one priority in terms of policy changes that you'd like to see?
VITTER: Repeal ObamaCare. Now that would be vetoed by President Obama, but I think it's very important to move forward with that, the House and Senate together. And then also look at specific reforms after that veto that can make a difference in the next two years before the next presidential election.
BARTIROMO: Senator, good to have you on the program this morning.
We'll be watching.
VITTER: Thank you, Maria.
BARTIROMO: We'll see you soon.
Senator David Vitter joining us.
Those midterm elections just over a week away.
The CEO of one of the largest health care and consumer products companies is with us today, Johnson & Johnson will join me on what could happen to your bottom line, depending on which way the Senate goes.
I hope you'll follow me on Twitter, @mariabartiromo, @sundayfutures. Send me a Tweet. Let me know you'd like to hear from Alex Gorsky, CEO of J&J, as we look ahead on "Sunday Morning Futures."
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. Could Ebola soon be a remnant of the past? My next guest's company has just announced plans to test a vaccine in humans this January and could have a quarter-million doses available by the springtime. Alex Gorsky is with me. He is the CEO of Johnson & Johnson.
Alex, good to have you on the program.
ALEX GORSKY, CEO, JOHNSON & JOHNSON: Hey, Maria. It's great to be here this morning. It's hard to believe that we were just talking a couple days ago. I think it feels like a couple of months.
BARTIROMO: It's true because there is so much going on.
GORSKY: So much going on.
BARTIROMO: What a big announcement Johnson & Johnson made this week. And that is the idea that you could actually have up to a million doses of an Ebola vaccine sometime in 2015.
GORSKY: Absolutely. And we think this is a critical first step in the war against Ebola. You know, as I mentioned earlier this week, we've been working on this, actually, for some time. And as often is the case with science, you know, it's a little bit -- you have a hypothesis; you test it out, but our scientists have made a lot of progress by taking a very focused approach with one of our vaccines produced out of Crucell and combining it with another company's vaccine, and so what you're able to get is, kind of, a one-two punch or a prime boost approach.
And what we've seen in the early testing is that not only do you get an immediate response, but we have the hope that it's also going to be one that's more persistent and more potent (ph) over time.
Now, we still have a lot of testing to do, and we're going to be starting that soon after the first of the year.
BARTIROMO: What has been the big challenge, or the biggest challenge in terms of getting a vaccine on the market?
GORSKY: Well, you know, there's always a lot. You know, first you've got to make sure that you've got the right approach and you have something that really works. And, you know, these viruses, they're difficult. And while we've been working on it since about 2004, it was just recently, frankly, where our scientists had the insights to take this new approach.
And then, of course, the other big challenge is can you get your production and your capacity up soon enough to help address the problem? Because, if you have a vaccine but it's not available, that creates other issues.
So because of a technology that we invested in several years ago called the PER.C6, we think we can have about 250,000 doses available by about June of 2015, and then on a continuous basis, through the remainder of the year, about a million doses.
BARTIROMO: Wow, OK. And then it's getting the vaccines to those who need it in a timely manner.
GORSKY: Exactly. You know, that's another very important step in the chain. And we're working with the World Health Organization. And I personally have had conversations with CMS, the FDA, CDC, the NIH. You know, our scientists have been working hard. And, obviously, it's going to take a very comprehensive approach and a lot of partnerships to make that happen.
BARTIROMO: All right. Let me move on. We've got the midterms about a week away. There's a lot of expectation that the GOP takes the Senate. What would you like to see if, in fact, that were to materialize, in terms of policy priorities on the part of Congress?
GORSKY: Well, as you can expect, Maria, right now we've been really focused on Ebola, as well as a lot of other issues. But, like many large multi-nationals, particularly those in health care, look, it's about the economy. What can we do to make sure we're doing everything we can to push the economy forward?
So whether it's broad tax policy so that we make sure that we've got, you know, a consistent approach and something that really is much more comprehensive, we think it would obviously be in everyone's best interests. What are the other things that we should be doing about education, to make sure that we can get the great scientific minds in this country that we need to help fuel our future, as well?
BARTIROMO: You have a business that really -- I would divide it into three parts. You've got the pharmaceutical business; you've got a huge consumer products business, Johnson & Johnson products; and then you've got the medical device business.
GORSKY: Yes.
BARTIROMO: In terms of the Affordable Care Act and ObamaCare, what has been the impact of the medical device tax, the anticipation of the tax? How has that impacted your business?
GORSKY: Well, it's still early days with the Affordable Care Act. And I think the really good news in America is that about 8.5 million people now have access to insurance. But now we really start the challenging work, we think, associated with it. How can we make sure that patients are going to get access to high-quality care with good value?
And so what we've seen is, you know, there -- we're faced with the issues in the economy over the past few years, which did temper some of the things like hospital admissions, surgical procedures. We haven't seen those come back to previous levels yet.
Whether or not we can say that's due to the Affordable Care Act or, frankly, just broader economic issues is difficult, but I think what's going to be important now is we work forward, that we continue to focus on patients and that we also continue to create an environment, frankly, where innovation is rewarded so we can do things like Ebola or get after Alzheimer's or other cancer conditions.
BARTIROMO: Of course. Well, we just heard Senator Vitter talk about, look, they want to repeal Obamacare. Would you like to see changes to this legislation if in fact we were to see the balance of power shift in Congress?
GORSKY: Well, as I said earlier, I think now, as we start the true implementation of a lot of things, we are going to have to make sure that we address some more of the details of the plan. You know, so, for instance, we have got to make sure that we don't forget about, you know, the quality of care at the same time while we're focusing on value. We've got to make sure that, while people may have insurance, that that translates into more than just marginal care.
So those are the kind of things that I think will work themselves out in the coming weeks.
BARTIROMO: Let me ask you about the economy. We really do get mixed data, very much a debate in terms of where we are in this recovery. You have got a huge consumer business. What are you seeing from the consumer right now? How would you characterize things?
GORSKY: You know, I think the consumer, frankly, remains a little bit measured right now. You know, we haven't seen the consumer area come back with really strong growth rates, in most cases, in the United States. However, on a global basis, this is probably one of the strongest markets that's starting to return now.
You know, we're seeing probably 2 percent or 3 percent. But if you go to areas like South America, Brazil, Venezuela, you know, after a lot of things down there, we've seen it slow down somewhat. We still see strong growth in China. We're seeing about 10 percent growth in that market. And of course in Eastern Europe right now, things have also been somewhat tempered, as well as the rest of Europe.
So, you know, we remain cautiously optimistic. But, you know, consumers have definitely gone through a lot over the past several years. And we haven't seen them completely return to their previous buying patterns.
BARTIROMO: And you can't look at the U.S. in isolation. You've got to look at the rest of the world...
GORSKY: Exactly.
BARTIROMO: ... and the impact.
GORSKY: You know, a company like Johnson & Johnson now is very global. In fact, almost 60 percent of our sales are now outside the United States. So while we're very proud and obviously a significant American company, we're very global in nature.
BARTIROMO: Absolutely. Alex, good to have you on the show today.
GORSKY: Maria, great being here. Thank you so much.
BARTIROMO: Good to see you. Alex Gorsky, CEO at Johnson & Johnson.
Oil prices have been headed lower, but OPEC is planning a big meeting in a few weeks. Could it mean a turnaround? A member of the Saudi royal family is with us next, as we look ahead on "Sunday Morning Futures."
(COMMERCIAL BREAK)
BARTIROMO: Saudi Arabia joining the U.S. in the coalition as a member to defeat ISIS. Joining me right now, Kingdom Holding Company founder and chairman, Prince Alwaleed bin Talal, one of the largest investors in the world.
Prince Alwaleed, it is good to see you. Thank you for joining us.
PRINCE ALWALEED BIN TALAL, CEO, KINGDOM HOLDING COMPANY: Hello, Maria. It's nice to be here, pleasure to be with you, always.
BARTIROMO: So let me begin with the fight against ISIS, Prince Alwaleed. What is your reaction to the coalition to destroy ISIS? And what has been Saudi Arabia's role in it?
ALWALEED: Well, we have seen how the world coalition was assembled under the leadership of Mr. Obama, whereby Saudi Arabia, UAE, Bahrain, Qatar, and Jordan are all now under the leadership of the United States fighting ISIS in Iraq and Syria, with certain other international countries.
And we hope that this will bear fruit eventually by not only degrading and (INAUDIBLE) them, but by eradicating them completely.
And as for your question about Saudi Arabia's role, Saudi Arabia has announced publicly that it is taking place in the continuous bombardment on a daily basis of those terrorists renegade people in Iraq and Syria.
BARTIROMO: Do you think ISIS can be defeated?
ALWALEED: I think the question is not whether ISIS can be defeated or not. The world has no choice. This is not really an Arab-based situation or a U.S.-based situation. This is an international community situation whereby ISIS has to be not only defeated, but eradicated completely.
BARTIROMO: Prince Alwaleed, what do you say to those out there who say that Saudi Arabia has had a history of supporting and funding some extremists, particularly in Syria, for example? Do you believe Saudi Arabia should take some responsibility for ISIS even being formed?
ALWALEED: Well, the whole world has to take responsibility, not only -- I mean, there is no doubt there are some Saudis, like there are some people in the United States, like in Europe, in some other Arab countries, who really are (INAUDIBLE) and support these terrorist groups.
But rest assured, Maria, that Saudi Arabia right now has enacted laws not only they're talking, but also they're following their words with deeds.
BARTIROMO: Prince Alwaleed, let me turn to the price of oil. You have obviously been very vocal about this. Oil prices are down sharply. This year, you called the decline a catastrophe for the Saudi economy. And you have been criticizing some of the comments and the actions made by the oil minister of Saudi Arabia.
Tell me what's happening.
ALWALEED: Yes. And, Maria, I'll say this again, my criticism of the minister of oil because when the price of oil was $100, he came publicly and said that at $100 this is a (INAUDIBLE) point where producers and consumers are happy and satisfied.
Well, guess what now? Now it's $80 and we're hearing nothing from him right now. And what happened (INAUDIBLE) early in the price of oil meltdown is a confluence of events on the supply side, on the demand side.
On the supply side, we've seen oil production and gas production (INAUDIBLE) increasing, exactly as is happening in other countries in the world. Fracking in the United States now is going up, let alone some other countries in the global (INAUDIBLE).
On the demand side, you've seen now indication that China, although they're growing 7.3 percent, but that 7.3 percent really is somehow below what was expected. Japan also is teetering on the verge of recession.
But the straw that broke the camel's back two weeks was when surprisingly, Germany announced that they're revising their growth projection from 2.1 percent to 1.3 percent.
So all of those matters on the demand side triggered the idea, the concept that oil demand will not be as high as expected.
BARTIROMO: Do you think that the oil-producing countries should cut production, keep production stable? Is there just too much oil in the world and that's what's causing the price to go down?
ALWALEED: Clearly, the position of Saudi Arabia, United Arab Emirates, and Kuwait is not to cut the production, because rightly so, if they cut their production right now, some other countries will increase their production and take the market share from them.
In late November, there is a meeting of OPEC. And I believe the discussion of the production will be raised over there, because, you know, Saudi Arabia, and UAE, and Kuwait somehow can uphold more time whereby the oil prices (INAUDIBLE).
But Russia, Venezuela, Iran, and some other countries cannot do that because their countries are even more dependent on oil than Saudi Arabia.
BARTIROMO: Prince Alwaleed, the final question here, you are one of the leading investors in the world. Full disclosure, you are one of the leading investors in 21st Century FOX, which is the parent of the FOX News Channel.
The markets have been jittery. A lot of volatility on these worries about the global growth story. I know you met with the president of France while you were in Paris this week.
What's your take on the global slowdown?
ALWALEED: We had a private dinner with President Hollande (INAUDIBLE), with senior -- and leaders of the top sovereign wealth funds in North America and the Far East, Middle East, and even (INAUDIBLE) was represented there also.
And clearly there were a lot of jitters and reservations and worries. And President Hollande was very specific, saying that we need to be pushing for growth above 2 percent, between 2 and 3 percent.
But clearly this cannot happen unless there is done a concerted effort with Germany and other members of the European Union.
BARTIROMO: What are you seeing from your holdings? You own real estate and hotels, including the one that you're at right now, the George "Cinq" in Paris, all over the world. Are you seeing weakness from that standpoint?
ALWALEED: Yes, we see stability, but clearly, our eyes and always open to the fact that you may have some weakness whereby some of these investments could be impacted.
But so far, we have not seen any indication, frankly, speaking of any weakness because we have seen that there were enough (INAUDIBLE) there were some improvements after the major crisis over the 2007-2008 period.
BARTIROMO: Prince Alwaleed, good to have you on the program today. Thank you so much for your insights.
ALWALEED: A pleasure to be here, Maria, always.
BARTIROMO: We will see you soon, Prince Alwaleed joining us this morning.
Well, radicalized and out to kill, what is driving these lone-wolf and home-grown terrorists? And what can we do to stop them? Our panel starts there as we look ahead on "Sunday Morning Futures." Back in a moment.
(COMMERCIAL BREAK)
BARTIROMO: Thank you so much, Eric.
A gunman goes on a rampage and kills a Canadian soldier before he is shot by parliament's sergeant at arms.
Here in New York, a hatchet-wielding attacker strikes two NYPD officers before being shot. The suspect, a covert to Islam.
These are not the first lone wolves we've encountered since 9/11.
But what is driving them and how do we stop them?
We bring in our panel right now.
Ed Rollins is former principal White House adviser to President Reagan. He has been a long-time strategist to business and political leaders and he is a Fox News political analyst.
Jon Hilsenrath is chief economics correspondent with "The Wall Street Journal."
And Judith Miller is an adjunct fellow at the Manhattan Institute for Policy Research. She's a Pulitzer-Prize winning author and journalist and a Fox News contributor.
Good to see everybody.
JON HILSENRATH, THE WALL STREET JOURNAL: Thank you.
Good morning.
BARTIROMO: Thank you so much for being here.
ED ROLLINS, REPUBLICAN STRATEGIST: Good morning.
JUDITH MILLER, ADJUNCT FELLOW, MANHATTAN INSTITUTE FOR POLICY RESEARCH: Thank you.
BARTIROMO: So let's talk about these lone wolf attacks
Are you more concerned today about the possibility of an extremist on the streets of New York?
ROLLINS: Well, I am. I think there's going to be a lot of crazy people and I -- I've portrayed them as crazy people because they're not -- this isn't an organized structure go out and, you know, take an ax and kill a cop. But there's going to be more and more of these people who think this is their way to -- to stardom or heaven, whatever the case may be.
So I think we're going to have more and more of those incidents and I think they're going to basically both people more and more every day.
BARTIROMO: And it's not a -- and it's not about religion. I mean it -- it's about hiding. It's almost like you're hide -- they're hiding behind...
ROLLINS: Right.
BARTIROMO: -- some ISIS strategy.
What do we do about it?
MILLER: Well, it's a...
BARTIROMO: What...
MILLER: -- we do what we're doing, which is, you have to be very, very proactive. You've got to watch for people who fit a profile that mean they may make trouble. And here in New York City, I have to say, the NYPD has been doing this for a long, long time and they've been very successful, thwarting 17 attacks.
This is ISIS's M.O. They like to inspire the individual to act at home. I am less worried about this than I am the actions of a concerted group of individuals getting together.
Yes, it's going to be difficult. Yes, there may be some individual acts of violence. But I think what you have to worry about is individuals like this acting as a group, getting their hands on a really deadly weapon. That's the major concern.
BARTIROMO: Right.
HILSENRATH: And, Maria, I think you -- you have to ask yourself, if these are one-off incidents, is this something that we need to be, as a nation, very alarmed about?
The -- the real worry, I think, is when you get groups together and do something like fly airplanes into -- into big giant buildings.
MILLER: Right.
BARTIROMO: Right.
HILSENRATH: I mean that's really what we have to worry about. The one-offs, you know, we have -- there -- there are a lot of crazy incidents that have...
(CROSSTALK)
ROLLINS: The only thing is terrorism is terrorism. And basically people in this country are very concerned because of cable television and all the other stuff that we have 24 hours in our day. And not every city has the tremendous capacity that New York City has.
So you do this in Des Moines, Iowa or you do this somewhere else, and people are going to start worrying and be very, very concerned, as they should. And we also have to be very supportive of the police actions that sometimes may be more overly aggressive, because obviously some guy is coming at you with an ax...
BARTIROMO: Right.
ROLLINS: -- you're not going to be...
MILLER: Right.
ROLLINS: -- be trying to disarm him.
BARTIROMO: Well...
ROLLINS: You're going to shoot him.
BARTIROMO: -- well, let's go to the source. I mean in terms of ISIS and this strategy to defeat ISIS, where are we in this?
I mean, clearly, the debate rages about boots on the ground.
But how would you characterize the strategy so far?
ROLLINS: There is no strategy. I mean I think at the end of the day, we are -- we are doing a minimum bombing. We're basically -- the Iraqi Army is getting a little bit better but there is no strategy. There is no ally. There is no game plan. We're -- the CENTCOM chairman or general this week said it's going to be at least a year before we can basically gets troops -- their troops on the ground, not even our troops.
There's still a big debate in Congress. This is an enormous cost and Congress hasn't begun to deal with the cost.
MILLER: Yes, and that's not going to be solved by a midterm election.
BARTIROMO: Yes.
MILLER: You know, we have a basic division in this country over people who don't want to see any American boots on the ground exposure versus those who say if you do not deal with this problem now, it will only get worse and worse. The president's stated goal of destroying this organization cannot be chieved -- achieved with the assets that he's allocating to it. His own military says that.
So, Maria, I would say too little too late, as usual with this president, unfortunately, on foreign policy.
HILSENRATH: I just wanted to connect a couple of dots with ISIS in Iraq and these domestic events that we're seeing here in the US. In both cases, here we had problems that we were hoping would just go away, that we could take our troops out of Iraq and then leave it alone and...
BARTIROMO: Yes.
HILSENRATH: -- and then do...
(CROSSTALK)
HILSENRATH: -- you know, in the U.S., there have been all these worries about -- about surveillance, about civil liberties, and, you know, these NSA programs. And I -- and now, when you start seeing domestic acts like this crop up, you -- you have that debate again.
In both cases, I think, you know, you have to say, these problems that we've been dealing with for more than a decade having gone away.
BARTIROMO: Right.
HILSENRATH: And the -- and the tensions they're creating in American society aren't going to go away either.
BARTIROMO: Right. And that is also underlying the -- the feeling, the sentiment out there. It's -- people are nervous. It's just another thing that's sort of, you know, weighing on investor minds, on consumers out there, because we don't know what's around the corner and we don't have the confidence in the leadership of this so-called strategy.
ROLLINS: Well, I don't think there's ever been quite, you know, you're the expert on terrorism. I don't think there's ever been quite an - - as organized a terrorist group out there today that are really looking for long-term.
We talk in terms of a 30 year war. A lot of it's going to be actions here. It's not going to be the wholesale that we worry about, but it's going to be a lot of these individual acts and this -- you know, I've always worried about shopping malls, things like this at Christmas that can create, once again, terrorism is making people fear and that they can easily do that here.
BARTIROMO: And -- and you're right about ISIS. I mean this is probably the most well funded terrorist group that we've ever seen.
All right, we'll take a short break.
We've got to get into the midterm elections, a week away, guys,
So stay with us.
Well, let's get a look first, though, at what's coming up on "MediaBuzz," top of the hour, Howie Kurtz -- Howie, what have you got?
HOWARD KURTZ, HOST, "MEDIABUZZ": Hi, Maria.
We're going to look at the president, the midterms and Ebola, but I've also got an extended interview with Bob Woodward, talking about the passing of Ben Bradlee, his legacy, pro and con, and also the lessons of Watergate, how when he and Carl Bernstein were knocking on doors, trying to piece together that criminal conspiracy it wasn't always apparent that they were going to be able to tie this to the Nixon White House and the parallels to journalists, in his view, investigating the Obama administration today.
BARTIROMO: Terrific.
We'll see you in about 20 minutes, Howie.
Thanks so much.
KURTZ: Thanks.
BARTIROMO: Howie Kurtz, top of the hour on "MediaBuzz."
We've got nine days to go until the midterm elections. With candidates digging in for the home stretch, are we any closer to a look on the Senate majority?
Our panel tackles that as we look ahead on "Sunday Morning Futures."
Back in a moment.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back.
Countdown now -- nine days away until the midterm elections.
Take a look at how tight this race for the Senate is according to the Real Clear Politics Polling Average. This might not be decided next Tuesday.
Bringing back our panel right now, Ed Rollins, Judy Miller, Jon Hilsenrath.
All right, let's navigate these races, guys.
What do you think?
ROLLINS: There are four races that are going to make the difference here. Two are Democrats, two are Republicans. One is Iowa, which is an open seat. We have a great candidate there, Joni Ernst, (INAUDIBLE) Republicans. And the other one is -- is Colorado. We win Colorado and Iowa, then I think we're -- we're going to be a majority.
But two we have to worry about is Georgia, which is dead even and -- and the incumbent in -- in Kansas, who's Roberts has had some problems.
So all those -- three out of four go one way and the one I talked about last week, the New Hampshire race is now a dead even race.
BARTIROMO: And -- and that -- everything you're saying, we have to include the fact that we -- the Republicans can't lose any seats.
ROLLINS: We can't lose any seats.
BARTIROMO: Yes.
ROLLINS: That's -- that's what we have to worry about, the Georgia and the -- and the Kansas. Those are our seats.
MILLER: Well, I want to think about why ABC might not be covering these midterms with all of these close elections, with so much at stake.
BARTIROMO: Right.
MILLER: What is it that we've had zero stories in the prime time evening news, zero?
And, in fact, NBC, CBS, the three leading broadcast networks that reach 23 million people, the disparity between 2006 and now is dramatic. Six to one stories on the midterms.
BARTIROMO: That really is extraordinary.
MILLER: That I really amazing. And some people say it's because there's a liberal bias in the media and this time...
BARTIROMO: Do you think?
MILLER: -- the Republicans may take over. You know, I don't like the liberal bias explanation, but in this case, it's kind of hard to come to any other conclusion...
BARTIROMO: Right.
MILLER: -- that there may be something to that here.
BARTIROMO: Yes.
HILSENRATH: And, Maria, when you look at prediction markets, where people place bets on who they think is going to win, they're pointing to a Republican taking over the Senate. And for me, the most interesting thing here is how does Obama respond?
What is -- you know, in -- in the past, we've seen, you know, for instance, you know, Clinton deciding he's got to work with the Republican Congress.
BARTIROMO: Right.
HILSENRATH: Are we going to see Obama kind of sticking with the I've got a pen approach or is he going to decide, if he sees Republicans in the House and the Senate that it's time to work with them?
BARTIROMO: Well, it's a -- is his legacy important to him?
(CROSSTALK)
ROLLINS: I think it is. And that's a very valid point.
BARTIROMO: Yes.
ROLLINS: And the truth -- the truth of the matter is this president is a liability. Historically, presidents always don't do well on the sixth year. But this president is a liability. This president is as much a liability to these Republican -- Democrats running as -- as Pelosi was in 2010. And you see numbers dropping, dropping, dropping and it's the president's approval rating that's -- every candidate is running away from him. And I think...
BARTIROMO: Yes.
ROLLINS: -- to a certain extent, it is an -- it is a repudiation of him and if he wants to reform himself, he has -- he has to do something (INAUDIBLE).
BARTIROMO: Yes, and nobody wants to see all politics as usual. We've got talk about Hillary Clinton's comments, when she was at a rally this week, saying don't let anybody tell you that business creates jobs. Trickle down economics has failed spectacularly.
Is this just politics as usual?
I mean do you think this is going to resonate with people?
ROLLINS: If -- if this -- if this is her policy, she's going to get clobbered, because it's not true. First of all, her husband had a great successful creating jobs and it was -- it was a combination of business and the infrastructure...
BARTIROMO: Of course.
ROLLINS: -- and -- and so any -- any candidate that wants to run saying business is not creating jobs, government is creating jobs, when the big drop off in jobs has been government, particularly the state and local.
BARTIROMO: Right.
ROLLINS: So I think she'll get killed if she uses this.
MILLER: I think we're just seeing Democratic Party politics here.
BARTIROMO: Right.
MILLER: I mean I think we're seeing fear of Elizabeth Warren, fear of anyone coming at her from the left. She's going to make a few of these statements.
But look at her record. This is a pretty centrist politician.
BARTIROMO: Yes, but I mean are people going to fall for that?
I mean do you think this is going to resonate with voters or are they going to see it for what it is and that is politicking?
MILLER: I think people are going to see it for what it is.
BARTIROMO: Yes?
MILLER: But I think it will also resonate with the left-wing of her party. At least she'll inoculate herself somewhat. This is the vaccine against the attack from the left.
BARTIROMO: Yes.
MILLER: (INAUDIBLE).
HILSENRATH: You know, as -- as Judy said, I haven't seen the -- the full context of this quote. But to the extent you're taking a shot at trickle-down economics, we've been running -- the United States has been running a trickle down economic policy for the last four years, or the last six years, actually, since the financial crisis.
Low interest rates, push up asset prices, push up the value of homes and push up stock prices. That's benefiting the wealthy.
BARTIROMO: Make the rich richer.
HILSENRATH: And we hope that they're going to turn around and spend money.
We have a trickle down economic policy in action today (INAUDIBLE).
BARTIROMO: Right. Right.
But I mean and -- and more than that. I mean the -- the idea that business creates jobs and then that will trickle down throughout the economy has worked. So I mean she's saying that it's failed spectacularly. She's obviously referring to the financial crisis in 2008.
ROLLINS: And any candidate that runs as an anti-business candidate (INAUDIBLE) and I think you're absolutely correct in your -- your assessment of those -- of the far left. The only way we're going to get this economy moving again is going to be by business reinvesting in this America, taking all that cash they have, reinvesting in America, creating jobs and all the rest of the sort of stuff that they do.
And I think anybody that -- that's what makes -- capitalism is what makes this country go.
BARTIROMO: Yes.
All right, let's take a short break.
I've got to get to the economy and those European stress tests. We have the details. how is the economy doing?
We've got the first look at the third quarter GDP out this upcoming Thursday.
Our panel will make some predictions on the economy as we look ahead on "Sunday Morning Futures."
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. Our panel is with us, Ed Rollins, Judy Miller, Jon Hilsenrath. They're talking about this being the most expensive campaign ever?
ROLLINS: Ever. This will end up being a $4 billion or $5 billion campaign, obviously targeting these states. You cannot buy commercial television any more. You have to go in and pay, not the political rate, the full rate, to get it. I mean, it's just unbelievable, wall to wall, but you can't get away from it.
BARTIROMO: Look, obviously, the economy is going to be on the minds of voters as they go -- in the midterms -- as they go into the election coverage in 2016. We did get the European report card. We've been waiting for these stress tests to come out. John, navigate this for us. Europe's report card is in; 25 banks failed the so-called stress tests that the European Central Bank has -- we've got -- 25 banks failed to prove that they had big enough capital buffers at the end of 2013. It's a shortfall of about $31 billion. Some are saying 13 banks failed, but 25 do not have the capital.
HILSENRATH: Right, 13 haven't yet raised enough capital; 12 others failed, but they were in the process of raising capital. So there's a couple points I'd make. First of all, it's the Italian banks that stand out here. So we have to see how Italian markets do when they open tomorrow. No German banks failed, but a number of Italian banks failed. That's one.
The other thing I'd say is this really -- for American viewers, this really demonstrates to me how far behind Europe is. We did stress tests in 2009. We actually did, as a nation, something very unpopular. And, in a bipartisan way, we put capital into very weak banks and we got our financial system on an even keel again, and got -- it's been a disappointing recovery, but we got a recovery going. The Europeans are five or six years behind in that process.
BARTIROMO: OK.
MILLER: I think the centralization of control over the banks is really important in Europe. And this is an absolutely essential step long overdue. Mario Draghi has been pushing and pushing this. Even so, we had, you know, nine Italian banks that couldn't raise this capital. I'm amazed that some of the banks, Spain, elsewhere, did as well as they did.
BARTIROMO: Well, we'll probably see assets for sale. These guys are going to have to raise more capital. We've got the GDP out this Thursday. What are you expecting? How would you characterize the economy today, Ed, ahead of these midterms?
ROLLINS: You know, I think it's steady. I think it's, sort of, meeting the projections, which are low projections, but it's meeting the projections. I don't think it's going to have a single impact on the election, though. I think the people -- the voters out there don't feel it's doing well.
BARTIROMO: And you are looking for a 3 percent number?
HILSENRATH: I think we're going to get a number for the third quarter which is 3 percent or more. And it's important to say this will be the fourth time in the last five quarters that we've had growth in excess of 3 percent.
The American economy is in better shape right now than I think people feel or people realize. We saw that in the stock market last week. We took a big hit. It bounced right back up and stocks are off to the races again.
BARTIROMO: Well, once we saw the 10-year yield break 2 percent, a lot of people told me -- money managers, traders -- they felt that was the bottom over the near term. They said, if you're going down to 1.8 percent on the 10-year bond, you're either -- you know, the economy is either sinking or this is a fantastic place to actually buy in. And that's exactly what happened. Markets bottomed and rallied from there.
MILLER: And a lot of people were predicting that wouldn't happen and that we were going to have another dip, and so far, so good. But until people start feeling it, I just don't think we're going to get the kind of growth that Jon is hoping for and that, you know, Ed may not be, depending on his political calculations...
(LAUGHTER)
ROLLINS: I'm an American. I want good growth.
(LAUGHTER)
HILSENRATH: It's a slow grind back. We're feeling it very slowly. It's been a long time coming, but it's coming back very, very gradually.
BARTIROMO: Beginning to get some traction. All right. The one thing to watch for the next couple of weeks is next on "Sunday Morning Futures." Stay with us on the panel.
(COMMERCIAL BREAK)
BARTIROMO: And we're back with our panel. The one big thing to watch for this week? Jon Hilsenrath, what's our one thing?
HILSENRATH: Well, the Fed is having a policy meeting and they're going to be announcing the end of this program called quantitative easing. It's a sign that they think the economy is finally getting back on track and they can stop pumping all this money into it.
BARTIROMO: And you do think that the Fed will be out of the bond- buying business by Wednesday?
HILSENRATH: They're going to be out of it. The question is whether they can stay out of it. If the economy sinks again, they're back in.
BARTIROMO: Ah, that's a good point. Judy, what's your one thing?
MILLER: I'm watching the Ukraine, where they're having today special parliamentary elections. President Poroshenko needs a strong majority to do the things that he's promised to do that he hasn't delivered on, like getting rid of corruption or at least minimizing it a little bit. And the other person watching that race is Vladimir Putin...
BARTIROMO: Vladimir Putin, for sure.
MILLER: ... who is going to have a tough Ukraine to deal with, or a country he can continue manipulating.
ROLLINS: Just to follow up on that thing I'm watching is Putin made the most vicious anti-American speech in probably 30, 40 years this last week. He went three hours. He attacked us, called us every kind of name there was. And I'm going to watch to see if that's just one bad speech or one long-term strategy.
BARTIROMO: Look, I think the sanctions are actually hitting, and they're having a big impact.
Guys, thank you so much. Good to see everybody. We appreciate it, Ed Rollins, Judy Miller, Jon Hilsenrath. That will do it for "Sunday Morning Futures." Thank you for joining us. I'm Maria Bartiromo. I'll be back tomorrow morning on "Opening Bell" on the Fox Business Network. That's 9 a.m. Eastern. Take a look at where you can find FBN on your cable network.
Content and Programming Copyright 2014 Fox News Network, LLC. ALL RIGHTS RESERVED. Copyright 2014 CQ-Roll Call, Inc. All materials herein are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of CQ-Roll Call. You may not alter or remove any trademark, copyright or other notice from copies of the content.
Get all the stories you need-to-know from the most powerful name in news delivered first thing every morning to your inbox