Kasich has his sights set on New Hampshire; Exclusive: Queen Rania on perception of Muslims in US

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John Kasich has his sights set on New Hampshire

Ohio governor speaks out about his campaign strategy

This is a rush transcript from "Sunday Morning Futures," January 24, 2016. This copy may not be in its final form and may be updated.

MARIA BARTIROMO, HOST: Good morning.

The attacks and rhetoric on the campaign trail becoming more fierce as we get a new look at where the presidential candidates stand today.

Good morning, everyone. I'm Maria Bartiromo. Welcome to "Sunday Morning Futures."

We'll have much of the focus is on Iowa this morning. One candidate has his eye on the prize in New Hampshire. Ohio Governor John Kasich will join me explaining why in moments.

Plus, the price of oil steering a wild ride for the markets and your money.  What is next for the markets and your investments? You will hear see the president of a leading wealth management company.

Then, she's one of the most influential women in the Middle East, the queen of Jordan sits down with me for an exclusive interview. Her message for America on their perception of Muslims and her call for action to help Syrian refugees -- as we look ahead this morning on "Sunday Morning Futures."

And the presidential race heating up as we inch closer to the Iowa caucuses and New Hampshire primaries. New Fox polls this morning out showing the latest standings. Donald Trump expanding his lead in Iowa now with 34 percent support, distancing himself from Senator Ted Cruz who is now in second place with 23 percent.

Senator Marco Rubio, the only other candidate with double digit support in third place with now 12 percent. Trump also in the lead in New Hampshire with 31 percent there. Ted Cruz in second with 14 percent. Rubio right behind him with 13 percent. Ohio Governor John Kasich in fourth with nine percent.

Governor Kasich has been spending much of the week in New Hampshire. He will be there through Tuesday as the majority of his competition campaigns in Iowa.

Joining me right now is Ohio Governor John Kasich.

Governor, good to see you. Thanks so much for joining us.

GOV. JOHN KASICH, R-OHIO, PRESIDENTIAL CANDIDATE: Thanks, Maria. Good to be with you.

BARTIROMO: Congratulations on these latest polls. You've obviously been focused on New Hampshire. What's the strategy from your standpoint, why is New Hampshire so important as all of your competitors are focused squarely on Iowa?

KASICH: Well, we have now seen up here, Maria, I guess that would make eight polls and in six of them I'm running in second place. And there was a poll that came out of Boston among independents that essentially showed me tied among independents with Donald Trump.

So, we feel good about it. We got a lot of momentum up here. New Hampshire is 1.2 million people and you can see them all and by the end of today, I will have finished my 75th town hall meeting, which is really pretty staggering and we have a tremendous ground game. Gordon Humphrey, the former U.S. senator from here, says it is the best ground game he's seen in nine years.

So, it's important for us to do well here. Everybody says what's "well"?  Well is where people like you on the 10th of February say, wow, you know, Kasich, let's talk about him. And then we would be off to South Carolina where we're already building.

So, it is important for us to do here. Our town halls are growing. We're having a lot of fun and, look, what I tell people is, yes, we have problems, but they all can be solved if we can just get the people who hold public office to be Americans before anything else.

BARTIROMO: How important are these big endorsements? Chris Christie getting a big endorsement in New Hampshire. The union leader there, Sarah Palin getting behind Donald Trump. How important are these big endorsements that make the headlines?

KASICH: Well, I have three newspaper endorsements last Sunday and received two more since. In fact, I got one today from "The Valley View News".

I think these local endorsements from the papers does matter. I'm not so sure how much out of state endorsements mean, Maria.

You know, what's interesting about New Hampshire and what I love about it is they don't really care if you're rich, if you're famous, they don't care about any of that. You know, you go in, they look at you, they take the measure of you and frankly when we get to Election Day, there is going to be probably 25 percent of the electorate who's going to walk into vote who are still undecided.

But I can see how much more serious it is today. I mean, we're only, like, 15 days out, but right after Christmas, you can see people saying this more and more seriously and focusing. I think that's a big reason why we have been rising up here.

BARTIROMO: For sure. People are focused on the issues. I want to talk to you about those issues in a moment.

Governor, stay with us. A lot to talk about with you this morning in terms of the news events of the day.

First, though, let's get a look at that, into the state that holds the first primary in the nation, New Hampshire, FOX News senior correspondent Eric Shawn joins us now looking at that.

Good morning to you, Eric.

ERIC SHAWN, FOX NEWS SENIOR CORRESPONDENT: Good morning, Maria. And good morning, everyone.

The fate of Governor Kasich and his rivals in New Hampshire will in turns out not be in the hands of dedicated Republicans or Democrats there. It will be decided by the state's undeclared voters. And there are more of them than members of either of the two major parties.

From the moment after midnight when those first votes from Dixville Notch roll in, the nation watches New Hampshire. That the state holds what some consider an open primary, meaning undeclared voters can cast ballots in either the Democratic or the Republican contest. All they have to do is temporarily register as a Democrat or Republican at the polling place.  Then, unregister the very second after they cast their ballot.

New Hampshire's long time serving secretary of state is Bill Gardner. He says the fact that there are so many undeclared voters is all part of the state's New England independent Yankee Spirit.

(BEGIN VIDEO CLIP)

BILL GARDNER, NEW HAMPSHIRE SECRETARY OF STATE: It gets wilder and wilder.  That last week and that last weekend, and people want to vote on Election Day. It's the tradition.

(END VIDEO CLIP)

SHAWN: And there are 229,000 registered Democrats in the state. More than 260,000 registered Republicans.

But look at this, the vast majority of voters are undeclareds, more than 383,000 of them, or about 44 percent. And polls right now show more than one-third of the undeclared voters do favor Donald Trump.

But a new FOX News poll shows of Republican voters, just over one quarter, or more than anyone else, would not vote for Trump in November.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Of the undeclareds, the fairly high percentage are one party or the other party. So, what are the number of truly independents?  It's much, much smaller than the number of undeclareds, much smaller.

(END VIDEO CLIP)

SHAWN: Well, in 2012, 90 percent of the undeclared voters actually cast their ballots in the Republican primary. It certainly is a defiant streak that so well fits the official state motto, "Live free or die" -- Maria.

BARTIROMO: Thanks so much. Eric Shawn with the latest there.

And we are talking with Ohio Governor John Kasich this morning.

More with you governor. New reports this morning that Michael Bloomberg may very well enter the presidential race. What do you think about that?

KASICH: Well, Michael is a smart guy. He was a good mayor of New York.  He says he'll spend up to a billion dollars.

I mean, we'll see what kind of a message he has, but, you know, I like him.  I think he'll make it all a lot more interesting and I will tell you this - - if he jumps in, of course, we'll be talking about a heck of a lot of issues which are really important. So, we'll see and, you know, we just don't know.

You know in politics, Maria, anything can happen. And it always does.

BARTIROMO: Governor, what do you think is the most important issue for voters now. I feel like since the last debate it has gone back and forth between the economy and national security. What do you think voters care most about right now?

KASICH: Oh, well, look, what they care most about always is the pocketbook. Now, national security, of course, has risen.

I was with the auditor of Iowa and she asked me that question. I said, "What does your daddy do?" She said, "Well, he's a hog farmer." I said, "What do you think the first thing she does in the morning?" She said, "What do you think? Check hog prices."

So, it's always about economic security. And, Maria, the other thing that I believe is the biggest issue in our country today is never give up. I mean, you get knocked down, you got to pick yourself up and hope.

You know, In my town halls we have an absolute ball. I mean, people laugh, we have a lot of serious information out there, but a lot of people have left saying, you know, I didn't feel that good coming in, but I'm leaving and I'm more hopeful. I'm really proud of that.

Because these problems can be fixed. You know it and I know it. It is not hard to fix Social Security, just have the will and the guts to get it done.

BARTIROMO: Yes, we're going to be getting some important economic data upcoming this week. What do you think is most important in terms of truly moving the needle on creation of jobs, Governor, as well as growth, getting economic growth to higher levels?

KASICH: Three things. Common sense regulations, we're not, you know, just hitting people over the head, less taxes and more clarity and finally, some fiscal discipline. It is always those three things, right? You don't want to over-regulate, you want to reduce taxes and you want to have, like, you know, sanity when it comes to fiscal policy.

Then the ground is not moving under the feet of the entrepreneurs, and you've been a great reporter on all of this, and you know that when companies or investors, people, entrepreneurs are nervous, they sit on their wallet. We can't have that anymore. And all three of those things are what exist in America today. Clean that up and you're going to see economic growth.

BARTIROMO: And then there's national security. The Obama administration now authorizing air strikes against ISIS in Afghanistan. Defense Secretary Ash Carter announcing the U.S. and six other countries have agreed to intensify the fight in Iraq and Syria as well.

What is your plan to take down ISIS?

KASICH: Well, look, I just think they're moving piecemeal. It is not going to get the job done. I mean, we're going to have to have a coalition just like we had when we fought Saddam Hussein with both Arabs and West going and taking care of this. And we have to be in the air and on the ground. And as we settle it down, we have to turn it over to the regional powers.

And I predict to you, Maria, the map of the world is going to look much different by the time things sort of settle down here. You know, the Westerners put together maps where people didn't fit together, and you're going to see a redrawing. I think it's just inevitable. We'll see.

But I think it is just too piecemeal and we're going to have to move quickly after we have a new president, especially if I happen to be that president.

BARTIROMO: Governor, we'll be watching. Thanks so much. We appreciate your time this morning.

KASICH: Thanks, Maria. Thank you. You did a great job at the debate.  Great job.

BARTIROMO: Thank you so much, Governor. Appreciate that.

KASICH: All right. See you.

BARTIROMO: Governor John Kasich there.

Amid the deep chill, Wall Street heating up on Friday. Stocks rallying as oil prices recover. First big rally of the year. We'll talk about it with the president of U.S. Trust, Bank of America Private Wealth Management.  Find out what he thinks about this $2 trillion in losses for market value.

Stay with us. Follow us on Twitter @mariabartiromo, @sundayfutures. Stay with us as we look ahead on "Sunday Morning Futures."

(COMMERCIAL BREAK)

BARTIROMO: Welcome back.

Wall Street capped the week on a high note after the massive damage all year with stocks rallying on Friday. Overall, the market is off to the worst start to a year in history ever with investors increasingly nervous about the economic slowdown.

We're going to talk about that right now with Keith Banks. He's the president of U.S. Trust, Bank of America Private Wealth Management.

Keith, good to see you. Thanks so much for joining us.

KEITH BANKS, PRESIDENT OF U.S. TRUST: Good to see you. Thanks.

BARTIROMO: So, on Friday, we saw oil rally up to above $32 a barrel.  That's important because oil has been such a weak spot.

BANKS: It has.

BARTIROMO: Why is oil so important to the stock market?

BANKS: Well, I think it's important for a couple of reasons. Number one, when you're in a downturn in the markets, people get hyper-focused on the things that aren't working. Manufacturing hasn't been working, oil hasn't been working. China hasn't been working.

But oil is interesting. Right now, oil -- if you look at high yield bonds, there is an 85 percent correlation with movements in high yield bonds and the price of oil, normally 23 percent. And for the S&P, the correlation is about 50 percent, which means and normally zero.

So, people, we got to break the link between movements in oil prices in the minds of investors and both high yield and stock prices.

BARTIROMO: Because you can't imagine that oil is going to go that much higher given the supply, right? Waiting on oil from Iran. You've got the American shale companies producing more.

So, you would think oil is going to stay at relatively low levels.

BANKS: Yes, we do. I think what you have to do this is define the bottom.  I think people are worried, you're hearing stories about $14 oil and you know, it just -- it gets crazy.

So what we have to demonstrate is -- and $30, Maria, was a very important psychological level. And it represented 12-year low for oil.

So, as long as people can see some stability, even at levels around $30, I think that's enough to begin a stabilization process in the broader market.

BARTIROMO: What kind of year are you expecting? The first three weeks of the year that we had the worst opening to any year ever, does that suggest you're going to have a tough year for stock prices?

BANKS: Not necessarily. We had a confluence of things that were quite a series of issues that got people focused on negative side, right? China, oil, as we talked about, currency, worries about the broader economy because of the weakness and manufacturing.

So, we think it is going to take some time to get a footing here, but we think we can because we do not believe the U.S. is going into recession.  We do not believe global growth is going to tip over into recession. And as we get more indications of that, that you'll see continued growth in the U.S. and globally, and you see it through earnings, I think all of these things will ultimately contribute to the markets moving higher.

As we put it in recent report we wrote, this too shall pass, but it is going to take time, there will be more volatility and there could be some more downside in the process.

BARTIROMO: And this is important because that's exactly what oil is telling us. Oil at low levels is indicating a slowdown on the global economy. Is it going to hit the U.S. as hard as some people think? Now, you are in the looking for recession, but a lot of people are.

BANKS: Yes, we are not. I think a lot of what oil is reflecting is China, and concerns about what will the growth rate ultimately be in China and, again, we think that number or that range is 5 percent to 6 percent.

If you think it's going to be three percent to four percent, that's a different story. It's different story for global growth, different story for oil prices, but we don't see that.

Importantly for the U.S., China only represents about less than eight percent of exports. So, it's the indirect impact if it does, in fact, slow global growth.

BARTIROMO: That is important.

So, what are you looking for in terms of U.S. growth and how does that impact U.S. earnings?

BANKS: So, we think the U.S. can grow somewhere in the two percent, 2.5 percent, maybe higher than that. We have thought and continue to believe that earnings in the U.S. will come in somewhere in the 5 percent to six percent range.

Now, originally, we thought there would be no ability for the multiples to go higher, because it's at 17 plus times, you're near peak levels. But now with the forward earnings at less than 15 time, we think there is a valuation underpinning, and if you see 5 percent to 6 percent earnings growth, which we do think you will, that can set the stage for price appreciation of 5 percent, 6 percent, and maybe around 2,100 on the S&P 500 and throw some dividend yield.

What's interesting, Maria, is 55 percent of S&P 500 stocks today have a yield higher than the 10-year treasury.

BARTIROMO: That is.

BANKS: So, again, you're seeing certain things just tell you we're getting closer, may not be there yet, but these are encouraging signs.

BARTIROMO: And people like to invest in companies that pay out dividends, so that's a --

BANKS: Dividend payers and dividend growers, I think critically important, along with strong balance sheets.

BARTIROMO: Keith, good to see you.

BANKS: Always good to be here.

BARTIROMO: Thank you so much for your insight. Keith Banks, president at U.S. Trust.

One of the most influential women in the Middle East takes a stand against ISIS and the negative comments about Muslims. My exclusive interview next with the queen of Jordan, Queen Rania, on "Sunday Morning Futures."

Stay with us.

(COMMERCIAL BREAK)

BARTIROMO: Welcome back.

Secretary of State John Kerry this morning calling on at least 10 new countries to take in Syrian refugees, asking donors to pledge at least $10 billion in the humanitarian effort.

Secretary Kerry at the World Economic Forum in Davos, Switzerland, that is where I caught up with Queen Rania, exclusively, the queen of Jordan, to get her take on the Syrian refugee crisis.

The perception of Muslims in America and the fight against ISIS.

(BEGIN VIDEOTAPE)

QUEEN RANIA, QUEEN CONSORT OF JORDAN: The two things I would like people to understand is that, first of all, Islam in no way condones the actions of these extremists. Those barbaric savage acts that we've been seeing on TV, the public beheadings, the rapes, the slavery, the mass murders, there is nothing in Islam that condones those kinds of actions.

Now I know that some people say there are verses in the Koran that refer to violence, but I would say that there are such verses in the bible as well.  And, you know, if you take something out of context and manipulate it to serve your agenda, and, you know, these people are not bound by any morality or any constraints, so they say whatever they want. But there really is nothing in the holy script that actually condones these kinds of actions.

The second thing that I want people to know is that those people do not represent the 1.6 billion Muslims around the world, who just want to live in peace and get on with their lives.

So, as a Muslim community, although we have to all stand up and confront them, and confront them aggressively, at the same time, we can't bear responsibility collectively, for their actions. And, you know, looking around the world, it's kind of unsettling to see how much people associate Islam with hate and violence and, you know, these people when they commit such atrocious acts and they attribute them to Islam, it provokes a feeling of mistrust and that's something that we don't need.

You know, sometimes you feel there is Islamophobia. I want people to remember that these groups have killed more Muslims than non-Muslims and they targeted more Muslim cities than to have targets in the West. So, for example, like 10 years ago, they targeted three hotels in Jordan and killed dozens and we see every day countries like Egypt and Tunisia and Libya reeling under the threat of those extremists.

So, you know, they are operating under the false banner of Islam. They are nothing to do with faith and everything to do with fanaticism. And we have to stand up and can confront them.

We also need to understand though we need to confront them very aggressively, militarily, in the battlefield, that this is also an ideological war. And you can't kill an idea with a bullet. The only way you can kill an idea is to propose a better one. And that is what we need to do.

We need to recruit young people who speak the language of the Internet, to offer a counter narrative and to expose them for who they truly are -- a group of people who are outlaws, who are morally bankrupt, who are -- who have no faith, and who have nothing to offer except -- that's why they resort to fear, because they have nothing to offer.

BARTIROMO: There is a debate going on in terms of technology companies.  What should technology companies do in terms of tracking the bad guys, ISIS, other terrorists?

QUEEN RANIA: The Internet was very effective in trying to fight child pornography and issues like that, you know? So, we have to -- we have to use the same kind of strategy to find this menace, which is threatening the entire international community. And, you know, non-state actors like ISIS are much more nimble at using technology and adapting than state institutions.

So, that's why we need to have private sector, we need to have young people who can just help us to identify the credible voices and amplify them and expose these people who they are.

BARTIROMO: So, which brings me to the Syrian refugee crisis and tragedy.  Jordan has taken in many refugees, more than 1 million.

QUEEN RANIA: We have 1.3, that's 20 percent of our population. And 90 percent of them do not live in camps. They actually live in our towns and cities, which has placed a tremendous amount of pressure on our infrastructure, both social and physical, on our economy. We have schools that have become crowded, our clinics, our social services, really reaching a breaking point.

And Jordanians have really shown a lot of heart and hospitality and generosity. But we're reaching a point now where kindness alone is not going to solve the problem because Jordanians' patience is running thin.  We don't have -- I think there is a misconception sometimes in the West that Jordan is a resource rich country like the rest of the Arab nations, we're not. We import most of our energy needs and we weren't in an economic situation before the crisis.

BARTIROMO: What about the idea of creating safe haven on the border of Syria for the refugees, which is something that is being talked about in the U.S. right now?

QUEEN RANIA: You know, the most important thing that we need to secure is a cease-fire in Syria. So, that the political process can start moving.

With regards to having a safe haven, it's difficult to have that if there is no cease-fire.

BARTIROMO: In the meantime, one of the reasons for this raging debate certainly in America is because there are reports and people believe that ISIS has, in fact, infiltrated the Syrian refugee flow. And then you see the events in Cologne, Germany, where, you know, those women were attacked by a thousand men who they believed to be Syrian refugees.

What do you say to those people who say, look, I understand we want to be taking them in, but how can we knowing all of this?

QUEEN RANIA: You know, what happened in Cologne is reprehensible. You know, it was a despicable, unacceptable act. And I hope that the perpetrators of those actions will be brought to justice and my heart goes out to all the women who had to experience that, and to really any woman in the world who experiences violence because I think everywhere in the world there is so much more to do to protect women against such crimes.

But at the same time, what the -- what doubles the effect of what they do, not only do they hurt these women, but they tarnish their reputation of all of the other Syrian refugees who as we all have seen have taken treacherous journeys, risked their lives and the lives of their children on flimsy rubber boats just to seek some kind of safe haven because what they're escaping is so much worse. And they didn't do all of that just so they can go and break the law in another country.

And the German leadership and people have shown tremendous compassion and courage in dealing with this crisis. But what I find heartening is a lot of the Syrian refugees themselves have participated in protests against what happened in Cologne, condemned them, and when we talk about how many of them have been infiltrated, I think we need a lot of vetting, a lot of screening, but to just assume that all of them are terrorists is also depriving the vast majority of hope.

BARTIROMO: What is the sentiment of the people in Jordan to America right now? How do people feel about America? I mean, you know, there is a debate about the strategy as it relates to our foreign policy, because of drawing a red line and not following in Syria, not supporting Egypt and then pulling out of Iraq. So, that's sort of in the backdrop.

And then there is the whole conversation about the Muslim faith.

QUEEN RANIA: Well, I think people are not very clear about what the strategy of the U.S. is in the Middle East. And I think the vast majority of Jordanians just feel like, you know, we need support, that we're having to shoulder this burden, this humanitarian burden, one of the worst humanitarian crisis of our time, truly human tragedy.

And we feel that it is a crisis of such exceptional scale, that requires exceptional responses. And I think that vast majority of Jordanians would like to see more engagement from the international community to help us deal with this issue. And now, it's an election year in the U.S., and I think everybody is waiting to see what is going to come out of it.

(END VIDEOTAPE)

BARTIROMO: And for more of my conversation with Queen Rania of Jordan, be sure to tune into "Mornings with Maria" on the FOX Business Network tomorrow morning at 6:00 a.m. on the FOX Business Network. Join us for more of Queen Rania.

Donald Trump says he has most loyal supporters, but his analogy of just how loyal they are raising eyebrows this morning. We'll tell you about what he said next on "Sunday Morning Futures" with our panel. Stay with us.

(COMMERCIAL BREAK)

SHAWN: From "America's News Headquarters", I'm Eric Shawn. Here are some other stories making headlines at this hour.

East Coast digging out now from that big snowstorm. It is being blamed sadly for costing at least 20 lives, from car accidents, heart attacks from shoveling and hypothermia. New York City lifting the travel ban this morning, 26.8 inches of snow piled up in Central Park, that is the most recorded there since 1869.

Over two feet of snow blanketing the Washington, D.C. area as well.  Airports there are expected to remain closed again today. But West Virginia was hit hardest by this blizzard with over 40 inches of snow in some areas.

Meanwhile in Thailand, a large chunk of metal washing up on the beach, it could be from that missing Malaysia Airlines Flight 370 that vanished two years ago. But officials say it has to be examined and tested first.

I'm Eric Shawn. Now, back to "Sunday Morning Futures" and Maria.

(MUSIC)

BARTIROMO: All right. Thank you, Eric.

Republican presidential frontrunner Donald Trump once again explaining why he will win the nomination. The billionaire businessman pushing the limits in Iowa yesterday. Listen to this.

(BEGIN VIDEO CLIP)

DONALD TRUMP, R-PRESIDENTIAL CANDIDATE: They say I have the most loyal people. Did you ever see that? Where I could stand in the middle of Fifth Avenue and shoot somebody and I wouldn't lose any voters, OK? It's like incredible.

(END VIDEO CLIP)

BARTIROMO: Meanwhile, The Des Moines Register announcing their endorsement of Florida Senator Marco Rubio for the Republican nomination citing its belief he can chart a new direction for the GOP.

I want to bring in our panel on all of this. Ed Rollins is former principal White House adviser to President Reagan. He has been a long time strategist to business and political leaders. He's a Fox News political analyst.

Judith Miller is adjunct fellow at the Manhattan Institute for Policy Research. She's a Pulitzer Prize-winning author and journalist and a Fox News contributor.

And Alan Colmes, host of "The Alan Colmes Show", nationally syndicated by Fox News Radio.

Good to see you.

ED ROLLINS, FOX NEWS POLITICAL ANALYST: Good morning.

BARTIROMO: Donald Trump using such an analogy at such a moment in time where we're seeing mass shootings all the time. It just --

ROLLINS: He's right in one sense. Whatever he says doesn't matter. If he did shoot someone in Times Square, the police would arrest him and throw him in jail, beneficial to New York but not the entire country.

The critical thing that's happened here is now has better than a third of the vote everywhere and Republicans are starting to see him as their nominee and they're getting more comfortable with it. The only challenger he has right now in any state is Iowa, where obviously Cruz is very competitive race.

Even if it stands wait it is today, they both walk away probably 10, 11 delegates. My sense is right today, watching thousands of people lined up to see Trump's event there, his voters are going to turn out. If more voters turn out than traditional, which is 120,000 the most that ever turned out, the biggest vote was Mike Huckabee's 41,000, if he exceeds that, he knows there is real movement coming.

BARTIROMO: So, you don't think it hurts him at all?

ROLLINS: I don't think that comment hurts him at all. I think it just all part of the -- I wish he hadn't said it, he shouldn't have said it.

BARTIROMO: Yes.

ROLLINS: I think it just feeds in the whole thing that Donald is going to say outrageous things and nobody is going to care.

BARTIROMO: Wow.

Judy?

JUDITH MILLER, MANHATTAN INSTITUTE FOR POLICY RESEARCH: I agree. I think that what is truly astonishing is this week we saw the Republican conservative establishment try and take him down, "The National Review" cover against Trump and Michael Gerson's eloquent, eloquent attacks in "The Washington Post" about Trump, Michael Gerson, speechwriter for Herbert Walker Bush, who said that these views are extreme, obscene and immoral, and it doesn't make a difference what he says, because Trump has 6 million Twitter followers.

BARTIROMO: Wow.

MILLER: Six million.

BARTIROMO: Can he win the general election?

MILLER: I don't think so. But --

ALAN COLMES, "THE ALAN COLMES SHOW": You know the kind of thing you saw him say, the thing you expect authoritarian narcissist to say. He's the Teflon Don. He can say whatever he wants.

The establishment is now kind of getting used to the idea. But what does that say about the Republicans? What do they stand for? He's not a conservative. He's not really a Republican. So, what do the Republican Party truly stand for if they're just going to glom on and suddenly accept that this guy could be their nominee.

BARTIROMO: Ed, what do you think of that?

ROLLINS: The interesting thing in our new Fox poll, which has at the top - - he talks about the most important trade, the most important trade is being perceived as the leader, which he is, and willing to say things that they think are honest.

BARTIROMO: People are tired of the political correction.

ROLLINS: Experience is way down. It is like seven percent with the other two like 22 percent, 25 percent. So, he's hitting on the notes they want to hear.

MILLER: And you're seeing on both sides.

BARTIROMO: People want to hear leadership, Judy.

MILLER: They do, and they also want change. They may not want home hope, but they do want change. And that's why you see Bernie Sanders on the left, Donald Trump on the right. All of the traditional benchmarks of what counts doesn't matter.

BARTIROMO: What do you think about the idea that Bloomberg is now considering a run? Is it too late for Michael Bloomberg to enter this race?

ROLLINS: It is too late for Michael Bloomberg to enter this race for the simple reason -- and I have great respect for Michael Bloomberg -- you have to win -- 270 is the magic number. You have to win electoral votes. There is no place he can win. There are 40 states that have voted exactly the same way, blue or red, for the last 15, 20 years.

There's no Republican state in the South that's going to go to him.  There's no Democrat state, the liberal state goes against Hillary. She ends up being the nominee. So, he may get 8 percent, 9 percent of the vote, I doubt any more than that.

COLMES: He would help elect Donald Trump because he would take more votes away from a more Democratic or liberal candidate. And I think that makes - -

BARTIROMO: OK. So, you think he helps Donald Trump?

COLMES: He helps Donald Trump, absolutely.

BARTIROMO: Because he takes votes from Hillary.

COLMES: Or whoever the nominee.

MILLER: And he wants to do the opposite. The only way this scenario makes sense is if Sanders and Trump are the nominees, and yet even though he toyed with this, an independent run, in 2008, he didn't do it then. I don't think he's going to do it now. Even though I would volunteer for him, because someone who lived in New York during his --

ROLLINS: You don't have to volunteer. He's going to spend a billion dollars. So, don't volunteer.

But at the end of the day --

BARTIROMO: You would volunteer. You're supporting Bloomberg.

MILLER: I think he's the kind of independent-minded person who in a normal year would be appealing to many more people.

ROLLINS: The problem is we're an angry electorate out there. Both sides.  He's not an angry man.

What do you think Donald Trump? Donald Trump will, first of all, power over him. He would belittle him. He will basically knock him around like he has Jeb Bush. I don't think it will be a good thing for Michael Bloomberg.

BARTIROMO: Well, we'll see if that would go over well, because people like the job that he did as mayor of New York.

ROLLINS: That's New York City.

BARTIROMO: You're right, New York City, OK.

COLMES: The Electoral College really, can he get the electors?

BARTIROMO: Exactly.

COLMES: Not the popular vote. It is the electoral vote.

BARTIROMO: OK. Let's check in with Howard Kurtz on "MediaBuzz." See what he's working on for the top of the hour.

Howie, good morning to you.

HOWARD KURTZ, "MEDIABUZZ": Good morning, Maria.

While you're talking about Trump, I've got an interview with the Donald coming up on "MediaBuzz". He talks about his general election strategy would be, if he gets that far. He says he's getting greater respect from the press now than he used to. He responds to the criticism of Sarah Palin after her endorsement and also an interview with the other guy who is giving Trump a run for his money, Senator Ted Cruz, talking about partisanship and the media, the birther flap, New York values and all of that.

So, a special edition of "MediaBuzz" coming up for you.

BARTIROMO: All right. We're looking forward to that. We'll see you in about 15 minutes, Howie. Thanks so much.

KURTZ: Thanks.

BARTIROMO: Meanwhile, we'll take a short break. Then Bernie Sanders giving Hillary Clinton a run for her money. She's calling him out on the campaign trail. You got to hear this one. Our panel will react and tell you what to watch for as that battle heats up.

That's next on "Sunday Morning Futures." Back in a moment.

(COMMERCIAL BREAK)

BARTIROMO: Welcome back.

A war of words heats up between Hillary Clinton and Bernie Sanders. The two candidates taking off the gloves, as we head closer to the voting in Iowa and New Hampshire. What can we expect in these early voting states?

Our panel is back. Ed Rollins, Judith Miller, Alan Colmes.

Let's talk about what's going on between these two. It is a surprise to a lot of people that Bernie Sanders is giving Hillary Clinton such a run.

ROLLINS: Well, right today, if the election were held today, he'd win Iowa and he'd win New Hampshire.

BARTIROMO: Wow.

ROLLINS: And he'd win New Hampshire big. It's obviously is an end of the nomination process. But it's a big stumble.

My sense is he started off and generally didn't want to attack her. She didn't want to attack him. They just want to have their issues.

I think because it is so important and everyone is now telling Hillary to take the gloves off and go hammer him, that's what he's doing.

BARTIROMO: And did she do a good job? I mean, what do you think?

ROLLINS: I don't think -- I think it doesn't make a bit of difference. I think she has not -- it is not her finest methodology. She's much better being very lawyerly, very articulate, and she clearly when she's swinging for the fences, trying to knock them down. That's not very good --

BARTIROMO: We know she doesn't like to campaign in first place, Judy.

MILLER: No, she doesn't this is so deja vu all over again, as great Yogi Berra once said. I mean, it's such a replay of the last time she went up against the candidate who stood for hope and change. And look at what happened to her there. There is a kind of pathetic quality to this.

Plus, the Sanders extraordinary Simon and Garfunkel ad, which has almost none of him and none of him speaking, which is a good thing, and it plays to all the warm fuzzy feelings we have about the country. He's very powerful on the campuses. I see this all over again.

BARTIROMO: Young people, yes.

MILLER: Yes, just --

BARTIROMO: The problem again -- she has the same problem with Barack Obama.

MILLER: Exactly. And all the media has missed it. We have almost all underestimated the Bernie Sanders appeal.

BARTIROMO: Can Bernie Sanders be the candidate?

COLMES: He could be the candidate. He also could win. He could certainly beat Trump. I think he would be the next president. I think he could.

(CROSSTALK)

BARTIROMO: You don't think Trump can win a general election because Bernie Sanders can win the general election?

COLMES: No, because Trump can't win with Hispanics, can't win women, can't win with blacks. But a Democratic can. And you need those groups in order to win. In a general election nationwide, you can't win with the people Trump has already turned off.

BARTIROMO: What do you think about his 90 percent tax rates?

COLMES: Well, not 90 percent. First of all, he says not 90 percent.

BARTIROMO: Ninety percent?

COLMES: He says no, it's not 90 percent. It's only on the -- it is on the last amount of money you make. It is not -- Trump would have you believe that they're going it take 90 percent of everything you make. You know that's not true. We talk about the top tax rate that applies to the last money one makes, only beyond a million dollars, so, in taxable income. So, it's not going to happen.

BARTIROMO: That's going to impact small business, not just people making a million dollars. Ninety percent tax rate is outrageous.

COLMES: It's on top amount of money you make. It's progressive tax system, the less money you make, the smaller your tax rate is going to be.  It's not 90 percent.

(CROSSTALK)

BARTIROMO: Ninety percent for some people and to small business.

ROLLINS: Once he get beyond Iowa and New Hampshire, there's no -- he's not going to be a southern candidate. He's not going to attract African- American support.

Where there is a danger, though, and Judy raised an important point, Democrats can't win without young voters. The critical thing is for Barack Obama, he attracted young voters in both campaigns, even though he's a drop off last time.

Young voters today decided that she's not the candidate of the future.

BARTIROMO: Right.

ROLLINS: That he may be.

And if they lose some of those, certainly, this is where Bloomberg may be important, if Bloomberg gets in, some of the disaffected Sanders people may make you choose him.

BARTIROMO: It's funny that she's calling Bernie Sanders the establishment.

ROLLINS: Right.

MILLER: Absolutely. And she is -- she is just so -- to us, she's -- people who are older, she is a competent, basically pretty conservative Democrat. To younger Americans, she's a --

BARTIROMO: She moved all the way left in this campaign, Judy. I don't know if you could call her a conservative.

MILLER: Compared to Bernie Sanders? She's very conservative.

COLMES: Militarily, very conservative. Certainly in the military issues, and the issues of war, she's to the right of Barack Obama.

ROLLINS: If Bernie Sanders becomes the nominee, Ronald Reagan's record of the campaign I ran in 1984 will be in Jeopardy. He could lose all 50 states.

BARTIROMO: You know what's so important about Bernie Sanders I think is the fact that he's pushing Hillary Clinton so much to the left. And that's the issue.

COLMES: He's helped her had a more populist campaign.

BARTIROMO: Sure.

COLMES: Which is I think very helpful the country, especially given what the Republicans are doing, which is they are way over to the right.

BARTIROMO: All right. We'll take a short break. The U.S. stepping up its fight against ISIS. Meanwhile Defense Secretary Ash Carter says boots on the ground are needed to defeat the terrorists. We'll look ahead. We'll bring you those comments, next, on SUNDAY MORNING FUTURES.

(COMMERCIAL BREAK)

BARTIROMO: Welcome back.

Defense Secretary Ash Carter saying that U.S. boots on the ground are needed in the fight against ISIS.

We're back with our panel right now, Ed Rollins, Judith Miller, Alan Colmes.

And he's meeting with a broad range of defense ministers in the next couple weeks to try to get them to also put boots on the ground, but he specifically said U.S. boots as well, Ed.

ROLLINS: Well, the only way you had the coalition that are going to come in is if U.S. leads. He's one of the most able men to lead the department for a long, long time, and my sense is people ought to listen to him.

Every single major general, what they think about the Iraq situation, has argued that you need boots on the ground, and I think he's just echoing that.

BARTIROMO: But, you know, this whole idea of getting the coalition to join the fight and do more, Judy, a number of Middle Eastern countries say we will join the coalition but Assad has to go in Syria.

MILLER: Right, but "The Financial Times" just reported over the weekend that Putin actually sent an envoy, a very senior military intelligence guy, to Damascus to try to persuade Assad to step down, and he refused. He said he wouldn't do it. I don't think these talks are going to go anywhere and I think the administration knows that.

That's why Ash Carter is talking openly about boots on the ground, because there is no alternative.

BARTIROMO: So -- I mean, can we have this coalition without taking the head of Syria down?

MILLER: We have to, because he ain't going anywhere. Ed is right. No other country is going to join our boots on the ground or coalition unless we put more of the stakes.

COLMES: When are we going to learn our lesson? When are we going to stop doing this? We're going to take Assad down and replace him with what?  Country after country, we'd had boots on the ground. We'd send in military. We replace leaders like we did in Libya, like we did in Iraq, it's a disaster and we're not prepared for what's going to happen.

BARTIROMO: What are you saying, no troops on the ground?

COLMES: Of course not. In fact, Rand Paul is the only one who has it right on this.

BARTIROMO: Defense secretary has said we need boots on the ground.

COLMES: He shouldn't have boots on the ground. We shouldn't be there. We have no business being there, and they're not a direct threat to the United States.

And time after time after time, we have the longest war in the history of in the country and spending trillions doing this and destroying how many lives. It's an outrage. And nobody it seems on the political scene, maybe Rand Paul, is talking about how we don't belong there in the first place.

BARTIROMO: So, just let ISIS do whatever it wants to do.

COLMES: Not necessarily, but we could certainly help --

BARTIROMO: Let the bad actors --

COLMES: They're not an existentially threat to the United States.

ROLLINS: Rand Paul is certainly not finding any support for that position as he travels the country.

BARTIROMO: Yes, go ahead, Ed.

ROLLINS: Assad is not going away. The examples you laid out are the people who did surrender and move on at our request. Didn't have good lives afterwards, so my sense is, why should he give up his power? And he still has plenty of power.

MILLER: He's not going to.

BARTIROMO: A quick break and the one thing to watch in the week ahead.  Stay with us.

(COMMERCIAL BREAK)

BARTIROMO: Thank you for joining us.

I want to thank Ed Rollins, Julie Miller, Alan Colmes for joining us.

Most important things in the week ahead, you got the Fox News debate on Thursday, the GOP candidates and, of course, FOMC meeting, Federal Reserve will talk on Wednesday.

That will do it for us. Have a great Sunday, everybody. I'll see you tomorrow on the Fox Business Network.

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