♪ >> good morning, everybody welcome to "squawk box" here on cnbc we are live from the world economic forum in davos on our final day of coverage here i'm becky quick along with joe kernen and andrew ross sorkin. and take a quick look at the u.s. equity futures. yesterday was a mixed day for the markets. the dow and s&p were higher. nasdaq was off, but this was a fractional decline this morning dow futures indicated up once again by 63 points s&p up by 10 points. nasdaq up by 42. we have to talk about the dollar and the action yesterday joe sat down with president trump. in those comments the president talked about how overall he is in favor of a strong dollar. he expects to see the dollar picking up steam, picking up speed as the u.s. economy continues to power higher. all of that went into action and the dollar picked up substantially. big turnaround from earlier this week after secretary mnuchin indicated sometimes it's not bad

to have a weak dollar. we'll talk about all of this coming up. big interview in davos >> historically just something that is usually not said by administrations or treasury secretaries. in reality, in the short-term, currencies will fluctuate. that's kind of what mnuchin was saying >> bob rubin thought all of these things, they would just never say the it publicly. >> this might not be the first time that this administration voiced things that other administrations didn't voice >> mike allen is with us, too. >> it's not something where you want to add thoughts to it >> i don't want to revisit the last administration, but we her defense of israel and we saw the way the administration actually -- >> stuck to their card, too. >> exactly

so they say -- what would you rather have, someone that smiles at you and says we love israel, then behind their back, netanyahu is ready to pull his hair out -- he doesn't have hair i had the opportunity to sit down with president trump. we talked about trade, the dollar and his message to this crowd, the economic forum crowd in davos >> mr. president, welcome to davos. >> thank you very much >> thank you for agreeing to come on cnbc and "squawk box." appreciate it. >> i've known you a long time. >> you've known me a long time >> we've done many of these, because bit different position >> a few more people around, too. >> the america first president comes to davos you know when you say davos, you know a lot of people think globalists >> yeah. >> elitiselitists what will you say when you address not just the globalists and the elitists but everyone, what will be your message? >> so, when i decided to come to

davos, i didn't think in terms of elitists or globalists i thought of lots of people who want to invest, lots of money, and they're all coming back to the united states. they're coming back to america i thought of it much more in those terms. after i said i was going, there were massive stories about the elite, globalists, planes flying in it's not about that. it's about coming to america, investing your money, creating jobs, companies coming in. we're setting records every week, every day. we're setting records. you can see apple with $350 billion. most people thought they meant 350 million, which would build a nice plant i spoke with tim cook. i was very honored by it you remember in my campaign i used to say i won't consider this great unless apple starts coming in and investing big money doing the plants >> you moved a little -- >> but so many companies are coming in. >> yes but you moved towards -- i saw

macron saying globalism doesn't solve problems suddenly other countries are saying, you know, we need to take care of our own country to some extent. it's almost like the differences between america first and davos, i think there's plenty of room for it >> there's lots of room. we love global but we love home. we have to take care of our home we have the disadvantage of having spent about a month ago 7 $7 trillion in the middle east $7 trillion. that's a big disadvantage. and we're still there. and i've beaten isis -- we've done a good job. but it's such a shame. >> let me tell you -- >> it's a sad thing. >> let me tell but the difference of davos this year. >> go ahead. >> we've done three three-hour shows, we have about eight guests per hour. that's like 50, 60 guests. they are more optimistic this year -- and there's global growth >> sure.

>> but the one thing most are bringing up -- then i want to tell you about, if you didn't see jamie dimon and lloyd blankfein, the potential for gdp growth those guys might know what they're talking about. the tax plan has been brought up almost without exception in a positive way by not just the ceos but by leaders from other countries even maybe they need to look at things, maybe they need to invest in the united states now because it's a better environment for business >> that's why i'm here to a large extent i think the tax plan has been even better than we thought, joe. what did happen that nobody considered is that at&t started. but they immediately followed, hundreds of companies are giving thousands and thousands of dollars to workers, now you have almost 3 million workers receiving thousands of dollars nobody thought -- that was not in the plan. >> even starbucks. >> starbucks >> even starbucks. >> yesterday disney and others >> so dimon said --

>> the ones who are not doing it, those employees are going how about us guess what they'll be doing it, too >> jpmorgan ceo, jamie dimon not only did he say 3% was possible, he said we could get to 4% in 2018. lloyd blankfein, and i pressed him a little, i said that was not the outcome, the election that you were, i think, hoping for. now that you have seen what's happened to the stock market, up 40% since election day, how businesses are going, confidence, are you happy with the outcome? he said he couldn't really say i'm happy with the outcome, but he did >> that's okay >> no but he said i don't think the stock market would be where it is. i don't think gdp would be where it is. maybe the polarization would be less, but he to concede that the benefits probably outweighed any of the downside. >> that was lloyd. >> that was lloyd. >> and jamie has become very

positive >> jamie and lloyd said 3% is possible long-term which we have not heard from all the economists >> i think it will be much higher than that i said -- let's see what happens, because, as you know, we're getting a report very soon we'll see what that is i just happen to ask what we were doing, because, you know, if you look at the real numbers, had i not won, had the democrat won, i will be nice, the democrat i say won, i would consider their last quarter my first quarter. because i just got there so let's say the first quarter of '17, you had a 1.2 gdp. okay 1.2. in the fourth quarter, which is the obama quarter, you had a 1.8. before that, you had a 2. 8. 2.2. you weren't doing very well. it was the worst recovery, i guess they say ever or since the great depression but the worst recovery okay

now, in my first quarter, which i considered to be the second quarter, because i was there now long enough to have made an impact, don't kid yourself, regulations are just as big as the tax cuts >> right >> i cut more regulations than any president in history and i've been here for one year. you can take their term, whether it's eight years or 16 years in one instance, but you can take anybody you want, in one year we cut more regulations by the way, there's going to be regulation, but they're good, solid, sane regulations. but in quarter two, 3.1. in quarter three, as you know, we had 3.2 but in quarter one, which is the obama quarter, you had 1.2 we were going in the wrong direction. >> the hurricane -- >> had the democrat won, the stock market is up almost 50% since my election. had the democrat won i believe wow have been down 50% that's the direction we were

headed >> the -- >> you know a lot of that, regulation it was staggering. you could not do anything. you couldn't build they approved immediately the two pipelines. >> can we talk about the year? the year -- all these things that you have pointed out, but you have beeen dealing -- negotiating in government rather than the private sector. it's been lovingly referred to as the swamp by certain individuals. >> it's difficult. >> is it difficult are you approaching it differently now? would you give -- what would you give yourself in terms of dealing -- negotiating with the government versus business what grade for the first year? >> a lot of people have given me an "a. somebody gave me an "a" plus i got the biggest tax plan in history approved don't forget, not just a tax plan >> doe you do anything differently now -- >> one second. i got rid of the individual mandate. the most -- the biggest part and the most unpopular thing in obamacare, which really repeals

obamacare, can't live without the mandate, that's where the money came, very unfair to people, and we did anwar ronald reagan tried to do it 40 years ago. everybody has been trying to do anwar and i got an wwar done the money is pouring in we probably take in $4 trillion from overseas, would never have been able to be here >> can we talk trade real quickly. >> yeah. >> we had somer panels, washing machines, i'm not sure where it goes from here i'm not sure how china reacts. >> whatever it is. >> they're grown-ups i think they understand that maybe we had -- >> it's time >> we had some legitimate -- right. you will stick with bilateral or would you ever do -- would you ever go back into multilateral tpp, would that everen possible ever be possible to look at that

again? >> i like bilateral, if you have a problem, you terminate when you're in with many countries, like tpp, so you have 12, you don't have that same -- you don't have that same option. somebody asked me the other day, would i do tpp here's my answer i'll give you a big story. i would do tpp if we had a much better deal than we had. the deal was a horrible deal the deal was a horrible deal nafta is a horrible deal, we're renegotiating it i may terminate nafta, i may not. we'll see what happens nafta -- i told stadiums full of people i would - >> are you opening up the door to reopening tpp or -- >> i'm only saying this. i would do tpp if we were to make a substantially better deal the deal was terrible. the way it was structured was terrible if we did substantially better deal, i would be open to tpp >> that's interesting. would you hand -- >> are you surprised to hear me say that >> yeah. i'm a little taken aback >> don't be surprised.

no the deal was a bad deal. like the iran deal is a bad deal >> maybe not nafta can you give me an indication of which way you're leaning a lot of ceos on here, they all seem to acknowledge that it's 30 years later, there's a lot of changes that make a lot of sense, but not to abandon the deal >> joe, we have a trade deficit with mexico. mexico $71 billion a year right? we have a trade deficit with canada of a substantial amount of money i have a number, they keep arguing. i won't say it i won't tell you it's $17 million, okay? we have a trade deficit with canada we have a massive trade deficit with mexico. we have to do something. >> are you leaning towards staying in or would you really - >> i always said during the campaign, as you always notice and said a couple times, i've fulfilled a lot of what i've said i'm only here a year i think i have four years, maybe another four years we'll keep going, and see what happens. but we have a $71 billion trade deficit with mexico. we have to do something about it we can't have that will it be renegotiated?

we're trying now with bo lighthauser and the whole group. i think we have a good chance, we'll see what happens >> the way that the shutdown finally was -- you know, was ended. >> yeah. >> i get the feeling that senator schumer is taking a lot of flack from his the far left flank. i feel like he's been burned, which makes me worry about when we go back in two weeks -- >> he made a mistake in shutting down he shouldn't have shut down. the people of this country wharwant security and safety. what will happen on monday with daca will you stay with cotton or move further to -- >> i think cotton and purdue and the people that i've been dealing with, cornyn, these are great people these are people that really have shifted a lot they have really shifted a lot i think they're willing to shift more so am i >> you said 10, 12 years for

citizenship for th d.r.e.a.mers >> we'll see if they make the right deal these are people with strong opinions on daca, immigration generally. i happen to think they're largely right. we're going to try to make a deal on daca we have a good chance of making it what we need is we need the wall, we need security we need security at the border we have to stop the drugs from coming in we need safety and a strong military. we need almost more than ever before we've been in war. so we needed it then but we need to be sure that our military is properly funded. and it would be really great to get rid of the -- you know, we'd like to have a regular budget. >> will you ask for 25 billion, mr. president? did chuck schumer offer 1$1.6 billion -- >> sure, he took it back >> how much did he agree to? >> he didn't really take it back you see numerous senators on the other side, they say we would give the wall in two minutes if we could solve daca. everybody wants to solve the daca problem it should have been solved by

pr president obama, especially when he had the house and senate, it could have been involeen solved. he did an executive order, that was no good. it wasn't me, the courts were not upholding that executive order. you have to do it through congress i want to solve the daca problem. i will consider that a great achievement to solve the dhaka problem. it's been out there for a long time these are good people. these are people who should be able to stay in the country. we will solve the daca problem we also want to solve a tremendous problem on the southern border, which is crime. we need a wall we need the drugs to stop flowing in they're coming in like -- they're coming in less now than they were because we have strong -- we have great bore eh

patrol agents, but we need a strong border. to do that you need a wall they did agree to a $25 billion wall, of which i'll have a lot of money left over i don't need $25 billion to build a wall we will build a great wall, have a lot of money left over and spend it on other things, we need great security. yes, senator purdue, senator cotton, cornyn, this one, that one. we have tremendous support to get something done tremendous, joe. i think something will get done. >> i want to ask you a davos question because we're here and i don't know, i even get taken over by this whenever we're here, we talk about wealth disparity, income inequality not just globally, but everywhere >> big problem >> big problem a resurgent united states, a strong growing united states makes a world of difference, not just for the united states but for the world in general i'm wondering if you did -- if you were able to keep gdp or if

the united states grows at 3%, 4%, and we have the coffers, we can do a lot with 3%, 4%, it's totally different than when we don't have money >> different country >> do you have a way of addressing the skills gap and education? as a business person, you sovr probl solve problems >> we need vocational schools. >> will that be something? >> it's a big factor for us, but i want these big companies coming in, toyota's coming in we talked about apple apple coming in with a big presence many companies -- chrysler is coming in, leaving mexico and coming back to michigan. how good is that when is the last time you heard that without me being here, without what we've been doing, including regulation, by the way i happen to think regulation is as big as the tax cuts, okay i think the tax cuts are incredible, but i think the regulations, the cutting of regulations, because the businesses couldn't even -- they couldn't do anything they were totally bound. would have to get 16 different approvals from 15 different

agencies joe, it was impossible to do business i think you know that maybe better than anybody. the cutting of the regulations was ever bit as important as what we did with the tax cuts. but you put them both together, we have a dynamic country again. i mean, everybody is talking i just came out and some really wonderful people said davos has never been like this this is like walking into the academy awards, except we have more photographers >> the journal this morning, lead editorial -- they gave a lot of credit to the trump administration for where economic growth is right now but then they said why would a cabinet member bring up the idea of a weaker dollar when things are going so well? i'm wondering whether you saw the secretary mnuchin's comments yesterday. do you agree with those? were they taken out of context >> let me tell you, i think they were taken out of context. i read his exact statement i will tell you where i stand, which is ultimately very important. number one, i don't like talking about it because frankly nobody

should be talking about it it should be what it is. it should also be based on the strength of the country. we're doing so well. our country is becoming so economically strong again, strong in other ways, too, by the way, that the dollar is going to get stronger and stronger and ultimately i want to see a strong dollar. right now it floats. it's your great reserve currency, there can never be anything close to it there is nothing close to it there never will be. ultimately the dollar, because our country is going to get so much stronger economically, if you look at what's happened to our country over the -- look, i've been talking about this with you for 25 years, trade it started with japan. morphed into china now china, japan -- it's everybody. everybody is taking advantage of our country. they have ripped our country off. you look at what they do i saw something on motorcycles today, with a certain country,

why should i say but they sell motors cycles into our country, no tax. we sell motorcycles into their country, harley davidson, the greatest, right? we sell into their country, 100% tax. won't happen the word reciprocal is the most important word with donald trump when it comes to the subject that we talk about and the subject that cnbc covers so well especially you, by the way because i don't agree with all of your people but that's okay. reciprocal i want reciprocal. if they're going to charge us 100% for a motorcycle, it should be 100 pshsz t% the other way, you mention a at the border for everything coming in, i'm a free trader, totally i'm a fair trader. i'm all kinds of trader, but i want reciprocal. when china is charging us a fortune to send products in, and making it impossible for the product to get there -- many

other countries, also, not just china. china is the biggest we charge them nothing to sell their stuff here it's not fair. when you use the word reciprocal, everybody understand there's a. if th s that you are already seeing it. >> we'll have to end it there. last question. will we have another shutdown? will you move more to the center on immigration >> i don't think the democrat also shut it down again. every poll says they made a mistake. i don't want to say schumer got badly beaten why would i do that? i won't say he got badly beaten. you look at what happened. the people want security they want daca taken care of more importantly they want security they wanted the border strong. they want to have a strong border they don't want to have ms13 coming into our cities you know how many of these people we're getting out these are horrible, horrible human beings they came here as horrible human

beings joe, it sounds terrible. they don't shoot somebody. they cut them up into little pieces because it's more painful. i don't want them. we are taking them out by the thousands. bri t by the thousands we don't want them coming in we will take care of daca nobody wants to take care of daca more than myself and the republican party the republican party is unified at a level that -- paul ryan called me the other day, he said i have to tell you, mr. president, i've been here a long time i've been a part of the republican party and watching it for a long time. for many decades i've never seen the republican party unified like it is under your presidency that was paul ryan and i thought that was a very nice statement very nice statement. i think mitch mcckoconnell actuy feels the same way we want to do what's right we will solve the daca problem and i don't think the democrats would want to pull another

shutdown but we'll get it solved. if we need more time, we'll take more time. i want to get the problem solved correctly. >> all right thank you very much. >> thank you very much >> thank you for sitting down with us, mr. president >> we've known each other a long time >> we have i appreciate it. looking forward to the speech. >> thank you very much >> i think a lot of people will be watching. >> good. i hope so. thank you, joe appreciate it. >> all right now, joining us -- this is murphy's law i -- when you listen, you didn't hear my income inequality question you didn't hear it >> i heard it. i saw the starbucks piece. >> that was you. >> i knew -- what do you think of -- that i think about i >> touching. >> isn't that nice mike allen joins us. he's chief executive -- executive editor at axios. you didn't hear it your ifb went out? >> i read it >> you read it wouldn't you know that your ifb

would go out >> just at the moment. fr >> as i was doing the davos question mike, have you been surprised by the reception of the president over here? he said academy awards when i walked out yesterday there was a gaggle they were saying my name i thought someone i knew was in the crowd. it wasn't. it was -- they were -- they knew what was happening andrew, they asked me what i was wearing. >> who are you wearing >> i e. vvalentino? >> no, zenya what are you wearing, mike >> old navy. very classy. >> you're a keen observer. overall impressions? >> first, that was the best line, when he said this is like the academy awards, only more cameras. i was asking how cocky he was -- >> i said i've known him a long time he hasn't changed. if he's slipping or what,

getting more cocky, he's pretty consistent with the way i've always known him to be >> so what we've seen here is both he and davos are going through stages of grief together last year was the scream everybody was terrified of him this year, they're grateful for the tax cut. they're curious. a davos official told me it was the most interest in them than anyone since brangelina was here ten years ago. >> my gosh this is interesting this morning. we've all been waiting to see what he's going to say when he addresses this crowd as you mentioned, it's kind of two worlds colliding between the davos elite and the more populist america first president. he gave away some clues with this conversation that he had with joe ahead of all that that's what -- that's what we have to wonder was we're going to expect from him when he speaks in about an hour and a half >> the signs are he'll be very well behaved >> very measured >> one of his close people says when he is overseas he tends to stick to the prompter more than

elsewhere. but this was a great preview this morning a white house official told me it will be a businessman making a business case for america he will say there's never been a better time to invest, build, hire in america. he will say this is what we've done we're proud of it. y'all come >> right apparently last night he had to do a dinner with european ceos and made the argument if the united states is winning, you're winning because we, the u.s., are the buyers that that is -- >> you sort of know that this is the engine of the global -- we always have been. that's why when we had hear about global synchronous growth and it's used to say it's not really the united states, it's global, it's all intertwined global growth, a lot of times, is the driver -- the driver is u.s. china saying they're consumers now. saying they're 70% -- they're nowhere near that.

they have more people, but we consume stuff -- >> a lot has been made of the tpp comment. >> yes >> i'm curious from you, since we have not talked about it on air. >> yes >> were you stopped in your tracks do you think there's a possibility that something happens? do you think he was just-- >> a lot of things were swimming in my head i didn't immediately think we just did the solar panels, washing machines, posturing in front of china china was the happiest country around when we didn't go into tpp. i think that was pointed out to trump. that just gives them the catbird seat in asia when you don't go tpp. that was like maybe we will do tpp. >> meanwhile -- >> we'll do tpp. >> the rest of the countries have renegotiated tpp and are ready to move forward. >> on cnbc.com it said it's difficult to get a redo on that but the tone was significant he's coming here, he's not trying to talk like he does when

he's in michigan or wisconsin. a great line he had, a sense of the tone, he said we care about home, we're proud of home. we have to take care of home what a gentler way that is to make the point then that america first. >> apparently last night there was another meeting with the u.s. ceos where he literally talked about ripping up nafta, there was noway to renegotiate it >> they were all taking pictures with him >> right >> foreign leaders i saw trudeau, netanyahu there you know, the waters didn't quite part, but it was crazy over here. >> coming here for a decade, this is something different. >> people love power >> they do >> they love to suck up. this is perfect. >> it is when we come back, we'll talk taxes we'll talk with bob moritz he will tellus what h us what h to hear when president trump

addresses davos in about an hour's time. when you look at the mercedes-benz glc... with its high-tech cameras and radar, contemporary cockpit, 360 degree network of driver-assist technologies and sporty performance what's most impressive about the glc?

all depends on your point of view. lease the glc300 for $449 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing.

you know what's not awesome? gig-speed internet. when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. welcome back to "squawk box. big companies have been paying bonuses or hiking wages as a result of the gop tax reform bill it was a topic i discussed with president trump here in davos.

>> i think the tax plan has been even better than we thought. what did happen that nobody considered is that at&t started. burr th hundreds of companies are giving thousands and thousands of dollars to workers and now you have almost 3 million workers that are receiving thousands of dollars nobody ever thought it >> even starbucks. >> yeah. even starbucks yesterday disney and others. >> so dimon said -- >> the ones who are not doing it, those employees are going how about us guess what they'll be doing it, too >> you're welcome. pricewaterhouse coopers released their 2018 ceo survey. joining us is bob moritz of pwc.

i might be anxious if i was not sure to pay out bonuses. i would be feeling a little bit -- we spoke to citi ceo mike corbett. what will happen there >> there was no answer >> no. >> you need to, as a ceo, if you think it's going to be competed away and advantages, you really for shareholders, maybe it's not a good time to do that that's why they're anxious >> absolutely. you have anxiousness across every single stakeholder the ceos, boards, management teams, society at large. ceos are grappling with what's next amazing optimism in the economy. their optimism to deliver on that positive but not as good you have social issues to deal with. technology usually disruptive you have a benefit coming from tax what do i do with it it's a strategic issue what do you tell clients >> think strategy, not tax where do you want to deploy over the next five years? how do you want to invest?

think about talent, regulation what do you make of the decision by so many companies to do this? what do you think is driving it? >> i think you have organizations that are individual in nature i have to think about my work force. where it's appropriate, i have a work force in the masses, fget them the thousand bucks. >> i talked to a ceo who said there's a social issue here. if next quarter we start showing remarkable profit margins, some employees will look at us and say what's going on here this is crazy. getting ahead of it, do it this way now. but he also said it will get competed away recently we do it once, call it a day, we move on. then there's a larger question of what sg dodoes that mean in of the trickle down longer term. >> employees not only askinging that question but consumers as well, but also what do governments do everyone is saying you can say

what you want about the president, he's getting results. i wish i could get results in my country. now other countries are saying if we need tax reform -- >> then do we get into a terrible race? >> absolutely. race to the bottom >> the big issue is what this means beyond one-time bonuses and issues like that the journal digs into how this is rippling across businesses. some companies are saying now i can build a factory in the united states versus europe, where it makes more sense. they can really plow money back into it. there are examples of companies across the board doing that. >> you will see more of that over the next 12, 24 months or so this is the first step this is what you'll probably hear from the president today. i'm only starting. so regulation, taxation, infrastructure, huge opportunities for the u.s. companies. >> bob, this first wave, there's some part of it that's bubbling up from the white house. >> absolutely. this is an issue of how do i

market the wonderful things that have come out of the administration and there's pressure in terms of what else is the world doing interesting conversation with a couple ceos last night one ceo specifically, i wish my administration has done what he's been able to do by the way, he's done more for me in my country than my own administration >> these other countries have to move fast. because if they -- if they want to compete, and you'll make a ten-year plan and decide you'll build a factory which is maybe not a ten-year plan but a 50-year plan, if i knew in my home country that the tax rate was coming down, then it becomes much more complicated as to whether you invest in america or keep the money >> i think you have two issues there. one is the indecisiveness of them and the reality is can you get consensus? that's why europe is lesser now in terms of the political correctness, as a result you don't have the confidence in those economies now at the level do you in asia and the u.s

>> philosophically, i think -- i wonder if you agree with this. so we agree well, slow but steady for eight years 2% you don't have to change that much on the margin to grow faster if you leave capital, the idea with economists is that capital is treated better in the private sector, for whatever reason, there's accountability people minding their ps and qs if it doesn't go to the government, instead the private sector is left with a pool of money to do what it does, take risk and deploy capital, if it wasn't for the deficit that the government comes up short, would do it all day long >> absolutely. >> you have to decide whether there's going to be crowding out of -- and interest rates go up because of a trillion and a half i don't see it with the growth we did 10 trillion i don't think we got much for it for a trillion and a half i'm ready to roll the dice

>> let's do more of it and how do you get that capital, those dollars that benefit into the smaller enterprises versus the bigger enterprises >> then you bring the repatriated money back some goes for taxes, but not all of it not 35%, where it would have been. suddenly you use that. it seems all good. whether it doesn't last or not -- it's a one-time thing, andrew >> trickle down is huge. the question everyone is worried about these other issues the concern now is sounds great. but will i hit a cliff and fall off that cliff quickly >> how much resistance do you get from clients >> there's always resistance the capital markets are large. you have a debate of how do you make it beneficial to everybody. >> they're playing us out, bob thank you. mike, we'll be back in a second. coming up, more reaction to the interview with president trump. we'll talk to ken rogoff we'll try to get him to not start wandering and think being chess moves which is difficult

sometimes. later, mary erdoes will join us that's coming up hey, what are you guys doing here? we've been helping you prepare and invest for retirement since day one. why would we leave now? because i'm retired now. so? we're voya. we stay with you to and through retirement... ...with solutions to help provide income throughout. so, you'll still be here to help me make smart choices? well, with your finances that is. we had nothing to do with that, uh, tie.

or the suit. or the shirt. voya. helping you to and through retirement. tomorrow, it's a day filled with promise and new beginnings, challenges and opportunities. at ameriprise financial, we can't predict what tomorrow will bring. but our comprehensive approach to financial planning can help make sure you're prepared for what's expected and even what's not. and that kind of financial confidence can help you sleep better at night. with the right financial advisor, life can be brilliant. what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create,

not just wealth, but things that matter. morgan stanley a little to the left. 1, 2, 3, push! easy! easy! easy! (horn honking) alright! alright! we've all got places to go! we've all got places to go! washington crossing the delaware turnpike? surprising. what's not surprising? how much money sean saved by switching to geico. big man with a horn. fifteen minutes could save you fifteen percent or more. each day our planet awakens but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward.

it's simply a matter of following the signs. they all lead here. cme group - how the world advances. i'm a free trader. totally. i'm a fair trader. i'm all kinds of trader. but i want reciprocal. when china is charging us a fortune to send products in, and making it impossible for the product to get there -- many other countries, also, not just china. china is the biggest we charge them nothing to sell their stuff here it's not fair. >> all right let's take a deeper look at some of president trump's comments to

joe about taxes, trade and the economy. these are all comments the president made last night. he will address the world economic forum in about an hour and 15 minutes this gives us insight into what he will say. here to join us is ken rogoff, also our guest host this morning, axios' executive editor mike allen thanks for joining us. >> thank you >> everyone wants to know if president trump was coming here with an america first agenda that pushes out other countries or if america is open for business what did you think of the comments we heard so far >> definitely been open for business, come to america. it's almost like seeing other leaders come and they see the business people here, see the money, invest in me. that's a big theme when leaders come here. i wasn't expecting that. it's straightforwardment. >> a lot of mixed comments when joe pushed about the trade issues the president said i may be interested in tpp.

>> that blew my mind and phenomenal if that's true. that opened up japan a heck of a lot more than opening up vietnam. >> do you think it's true? was it just -- is it a sop to everybody here what's going on? >> you're asking me to read his mind, i can't. i hope he means it he should. >> is there a way, is it even possible for us to do it at this point? the other 11 countries moved forward with a plan that they hope to have put in place -- >> if he says i want in, they'll tear up the script and let us in no question about that >> all right the other issue has to be nafta. what we think is coming. he made comments about how he wants fair trade, he would like to be a free trader. we also knows there big hurdles to get over with nafta he made some comments in conversations with american ceos last night that suggested that it's going to be a heavy lift in order to renegotiate that nafta

agreement. >> i can't tell the difference between when he's playing to his base and what he actually means. i think his bark is bigger than his bite my goodness, if we tore up our trade agreements and went bilateral, his beautiful stock market would collapse, our companies getting a lot of profits. listening to other peoples here, the europeans, the asians, they're terrified when he says that when he puts a tax on solar panels, what's coming next i tend to think he's playing to his base i hope i'm being realistic and he's not doing that. >> i was trying to get for nafta -- i would have taken 51-49. he didn't give me anything i believe this is stick negotiating. and i think in the back of his mind he's trying to get the best deal possible. >> another thing that shocked me is when he mentioned vocational training wait, we'll pay for vocational training and he moved on to

another topic. i hope so. that's something germany does. >> i'm told he might talk about that the idea of skilling unskilled workers. >> i was opening up the door for him to use -- he thinks -- he fixed a skating rink it was like five years, he fixed it in a month and a half or something. he thinks he can do the skilling gap. he thinks he can fix education -- >> we're comparing fixing a skating rink to -- >> no, but he's ready to use his -- what he thinks is his business acumen to fix education and the skills gap i wondered how he would do it. we haven't figured out a way yet. >> i honestly think when i hear the dialogue, the idea of bernie sanders saying let's put everyone in college, we have to have a future, digital disruption in the education industry i teach at a university, the lectureses don don't look that different today than in 1990 1990 doesn't look that different

than 1950. it's time to change it we could educate more people and close the skills gap >> will you be allowed back at harvard after saying that? >> i don't know. it's certainly never predictable. >> we have to run. i'm hearing the music. let's do this more back in new york thanks >> thank you coming up, jpmorgan's mary erdoes will be here to talk about the markets and economic growth, which everybody here seems to think will pop more and more reaction from joe's interview with president trump from the "wall street journal's" greg ip. that's leading up to the president's address to the political and business leaders gathered here in davos, switzerland. we'll bring you that speech live u'ound 8:00 a.m. eastern time. yore watching "squawk box" live in davos. back in a moment

the stock market is up almost 50% since my election had the democrat won, i believe you would have been down 50% that's the direction we were headed >> dow surging to another record high on thursday after strong results from caterpillar and 3m. so much optimism here in davos

joining us to talk about the markets and the global economy is mary eradus, jpmorgan's asset and ceo. >> glad to be here. >> there's a remarkable sense of optimism, is that a wrong way to describe what's happening here >> no. it's spot on i mean, it's -- it is unquestionably bullish on absolutely every front, and the only thing that people have found to worry about is that people aren't worried enough, and that's the whole talk, which is why don't we find things to worry about. and, you know, i sit and think about what's the whole point of coming to davos? the point of coming to davos is you bring together the world's leading ceos, policy makers, central bankers, philanthropists and post the financial crisis, you're trying to figure out a way to make the world rebound in

a homogeneous manner without huge boom/bust cycles like we've had before and they've done it they've done it quite remarkably and coordinated and in a way where we continue to have very long, strong expansion global gdp growing at over 3%. global unemployment at a 40-year low. 90% of the countries in the developed markets in expansion naryury territory. places like russia, brazil, india, mexico all continuing to grow, and so it's a very exciting time to think about what they've done. they should be celebrated for it and what people can do to take advantage of the markets. >> in the last ten years everybody is worried at davos. then the question becomes, is this a contraindicator that's the other thing whatever the feeling is at davos, a year later, two years later you look back and go, i don't know, maybe that was the high sign. >> mary, this is your thing,

they're worried that they're not worried. how much trepidation is there about the fact that everyone you say here is optimistic on every sector >> well, just because people are optimistic doesn't mean they're not realistic, right they're looking at the significasignals. look at the united states of america. you have had a strong market people are worried, are the markets too high we've crossed over 400 days where we haven't had a 5% correction we will have a 5% correction that's normal. that's the ebbs and flows of the market all of the worry and the hand wripging, my fear is it causes people to walk away and say, oh, i should stay in cash or i should be out of the markets and that's my greatest fear is for people who are sitting in cash and are out of the markets, they're basically short the equity markets and they're short the bond markets and they're short the private equity markets. that's a dangerous place to be >> they feel like they've missed out to this point. they're waiting for that pull

back and then they'll jump in. >> psychology doesn't generally allow you to do that the time you think i'll just wait a little longer. >> when you go home and have your monday morning meeting with your team and they say, what happened in davos, what are you going to tell them what's the lesson that they're going to call their clients and tell them? >> it's hugely optimistic. people are excited to continue to invest. that you shouldn't miss out on these investments. you have to be thoughtful, do your risk management, asset allocation, et cetera, you have got to not be afraid of these markets. >> what are you going to tell them about investing internationally? so many guests have said great growth in the u.s. but actually there might be better growth in the emerging markets, other places. >> for sure. >> is that still the case or is there something shifting here? >> no, but it depends where you start, right if you're in bonds, the first thing you need to do is get in stocks and that's generally in your home country. so where you start and then where you go but if you're fully invested and

you already have plenty of investments in the united states, s&p 500 exposure, you want to be thinking about europe if you're already exposed in the developed european markets, you want to be thinking about the emerging markets you want something illiquid in the private investment arena where you don't have to worry and you continue to compound them over time. >> mary, the millennials are going to be the biggest voting block. they're going to take over a lot. they're going to be the world eventually i'm just -- i see these disturbing numbers about millennials that would prefer living under a socialist order, the economy. 40, 45% think it might be superior, just hasn't been done right. do you think they'll chip away at that? do you think the bernie sanders wing of the democratic party will lose credibility as you can see what the capitalism may

benefit a lot of people and may be the only way to lift people out of poverty than any others >> there's millennials that also want to stay at home and live with their parents but that will change, too. >> 42% i'm not going to blame the last eight years, but corporations, capitalism and you're vilified is it possible that suddenly it becomes okay to say, wow -- >> look at what's happened in the united states of america look at your adjusted market we've had the tax reforms come out. you've finally made the u.s. competitive on a global scale. >> look at the way we're portrayed. it's a tax scam. >> those companies have done exactly what you want them to do they have given money back to the shareholders they are giving money back to the employees. they are investing in capex to give more money to the clients that is exactly how capitalism is supposed to work. >> mary erdoes, excellent point. >> coming up, president trump's comments to cnbc

, i'm just surprised it means in my kitchen. so that means no breakfast? voya. helping you to and through retirement. we've been preparing for this day. over the years, paul and i have met regularly with our ameriprise advisor. we plan for everything from retirement to college savings. giving us the ability to add on for an important member of our family. welcome home mom. with the right financial advisor, life can be brilliant. with the extra third rowr... of seats. they think it's theirs. look at them, they have no idea! it's not theirs. it's mine. mine. mine. mine. the new lexus rx 350l with three rows for seven passengers. are you excited about your baby sister coming?

experience space for the unexpected with the rx l, part of the rx family. experience amazing at your lexus dealer. ronoh really?g's going on at schwab. thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms... again. and online equity trades are only $4.95... i mean you can't have low cost and be full service. it's impossible. it's like having your cake and eating it too. ask your broker if they offer award-winning full service and low costs. how am i going to explain this? if you don't like their answer, ask again at schwab. schwab, a modern approach to wealth management. hey, what are you guys doing here? we're voya. we stay with you to and through retirement. so you'll still be here to help me make smart choices? well, with your finances that is. we had nothing to do with that tie. voya. helping you to and through retirement.

good morning and welcome to a special presentation of "squawk box" live from the world economic forum in davos, switzerland. this hour, president trump speaks to cnbc before he speaks to the global ceos and world leaders gathered here. joe kernen's interview with the president is just minutes away it's friday, january 26th, 2018, and "squawk box" begins right now. good morning again, everyone welcome back to "squawk box"

here on cnbc i'm becky quick along with joe kernen along with andrew ross sorkin let's take a look at the u.s. equities futures they have been in the green once again across the board checking out some of these things yesterday it was a mixed day both the dow and s&p 500 closed higher the nasdaq was down. dow futures continued to open up by 70 points s&p futures up by 30 points. here's what's in our headlines we'll get a look at fourth quarter gdp in 90 minutes' time. the consensus is a 2.9% annual growth rate and the government's first look at the final three months of 2017 we know that this is a very important number it's one that people have been awaiting if it's a number above 3%, then that will be three quarters in a row of 3% plus growth for president trump. if not, it will be two quarters and then stepped back. by the way, this is all happening as the president is going to be addressing the world

economic forum here in davos the economy, of course, had had a 3.2% rate. honeywell is reporting earnings. profit of 1.85 a share for the fourth quarter that was a penny above what the street was expecting revenue beating the forecast they're reflecting a lower tax rate computer maker dell may be returning to the public market multiple reports saidel is exploring a variety of options including further acquisitions or going public. dell has been dealing with shrinking profit margins and cost savings that didn't pan out followed by a deal to pro viet emc. >> ran into michael dell. >> he's loved being private since he took the company private not dealing with shareholders, not worried about anybody like a carl icahn coming in and telling you what to do with the company that would be a pretty big about face. >> saw him at -- >> are all these things off th record >> yes >> you can say where you saw him. >> we did see him. >> this is serious stuff,

interviewing the president, and serious subjects we're going to get to that i couldn't help notice, there was some serious hair on that interview. did you see that -- >> yours or his? >> both! you know what we have in common? ropecia. if i don't use the product, we're not going to endorse it. are we allowed to do it? >> you just did. >> he thinks i'm going to need it. >> i was going to leave mike off camera >> no. no anyway >> i endorse hats. >> that's right. >> this may be the weirdest lead up -- >> i told you serious things when you look, you'll see what i'm talking about. >> it's always about him. >> he has no sense of humor about his hair >> i think -- >> definitely has no sense of humor about his shape. >> let's get to it i had the opportunity -- i don't

either anyway -- it's like this i had the opportunity to sit down with president trump, and we talked about, as you may have seen already or not watched now, the dollar and his message to the crowd at the world economic forum. here it is >> mr. president, welcome to davos. >> thank you very much. >> thank you for agreeing to come on cnbc and "squawk box." i appreciate it. >> i've known you a long time. >> you've known me a long time. >> and we've done many of these, but a little bit different position. >> little bit different position. >> as a developer. >> few more people around. >> couple others. >> the america first president comes to davos you know when you say davos, you know what a lot of people think, globalists. >> yeah. >> elitists. what will you say when you address not just the globalists, elitists, when you address everyone what will be your message? >> when i decided to come to davos i didn't think in terms of elitists, globalists, i thought of lots of people that want to invest, lots of money, and they're all coming back to the

united states. they're coming back to america, and i thought of it much more in those terms. after i said that i was going there were massive stories about the elite and the globalists and the planes flying in and everything else. it's not about that, it's about coming to america, investing their money, creating jobs, companies coming in. we're setting records every week, every day we're setting records. you see what's going on. apple now with $350 billion most people thought they meant 350 million which would build a good plant i spoke with kim cook. i won't consider this great unless apple starts coming in and really investing big money doing the plants they're going to do a lot. but so many, so many companies are coming in. >> yes absolutely some are saying that globalism doesn't solve problems suddenly other countries are saying, you know, we need to take care of, you know, our own country to some extent

so it's almost like the differences between america first and davos, i think there's plenty of room for you. >> there's a lot of room, and we love global, but we love home. we have to take care of our home we had the disadvantage of having spent as of about a month ago $7 trillion in the middle east $7 trillion. that's a big disadvantage. and we're still there, and i've beaten isis. we've done a good job, but it's -- it's such a shame. >> let me tell you -- >> it's such a sad, sad thing. >> let me tell you about the difference of davos this year. we've done three three-hour shows. we've done 8 guests an hour. that's 50 or 60 guests they are more optimistic this year there's global growth. >> sure. >> the one thing most are bringing up, then i want to tell you if you didn't see the jamie dimon, lloyd blankfein, i want to tell you what they say about potential for gdp growth

they might know what they're talking about. the tax plan has been brought up almost without exception in a positive way by not just the ceos, the leaders from other countries, you know, they need to look at that. maybe they need to invest in the united states now because it's a better environment for business. >> that's why i'm here to a large extent, that's why i'm here i think that the tax plan has -- has been even better than we thought. what did happen that nobody considered is that at&t started, but they immediately filed suit. hundreds of companies are giving thousands and thousands of dollars to their workers now you have almost 3 million workers receiving thousands of dollars. that was not in the plan. >> even starbucks. >> even starbucks. yesterday disney and others. i mean -- >> so -- >> by the way, the ones that aren't doing. >> yeah. >> those employees are going like, how about us guess what they better be doing it, too. >> jpmorgan ceo jamie dimon, not

only did he say he thought 3% was possible, he said we could get to 4% in 2018. lloyd blankfein, and i pressed him a little, because i said that was not the outcome the election that you were, i think, hoping for now that you've seen what's happened to the stock market up 40% since election day, how businesses are going, confidence, are you happy with the outcome? and he said -- he couldn't really say i'm happy with the outcome. >> no. >> no, but he did. >> that's all right. >> no, but he said i don't think the stock market would be where it is. i don't think gdp would be where it is. maybe the polarization would be less, but he had to concede the benefits outweighed -- >> that was lloyd. >> that was lloyd. >> and jamie's become very positive. >> lloyd said 3% is possible long term which we haven't heard. >> i think it will be much higher than that so i said -- and let's see what happens because, as you know, we're getting a report very

soon, so we're going to see what that is, but i just happened to ask what we were doing because, you know, if you look at the real numbers had i not won, had the democrat won, i'm going to be nice, the democrat, i say, won, i would consider their last quarter my first quarter because, you know, just got there. so let's say the first quarter of '17 you had a 1.2 gdp, okay 1.2. in the fourth quarter, which is the obama quarter, you had a 1.8. before that you had a 2.8, a 2.2. you had -- you weren't doing very well and it was the worst recovery i guess do they say ever or since the great depression, but it was the worst recovery okay now in my first quarter, which i consider to be the second quarter because i was there now long enough to have made an impact, and don't kid yourself, regulations are just as big as

the tax cuts, i've cut more regulations than any president in history and i've been here for one year you can take your turn whether it's eight years or 16 years in one instance, but you can take anybody you want, in one year we've cut more regulations by the way, there's going to be regulation, but they're good, solid, sane regulations. in quarter 2 we had 3.1 in quarter three, as you know, we had 3.2. in quarter one which is the obama quarter, really the last obama quarter we had 3.2 >> there was the hurricane. >> had the democrat won, stock market is up almost 50% since my election had the democrat won, i believe you would have been down 50% that's the direction we were headed and you know a lot of that, regulation it was staggering. you could not do anything. you couldn't build i approved immediately the two pipe lines.

>> we talked about the year -- all these things that you have pointed out, but you've been dealing, negotiating now in government instead of in the private sector and it's been, i think, lovingly referred to as the swamp. >> yeah. it's difficult. >> is it difficult and have you learned -- are you approaching it differently now would you give your -- what would you give yourself in terms of dealing, negotiating with government versus business what grade for the first year? >> well, a lot of people have given me an a. somebody gave me an a plus look, i got the biggest tax plan in our history approved. >> right. >> don't forget, not just a tax plan >> have you learned anything did you cou did you do anything -- >> joe, wait a second. the biggest part and most unpopular which really repeals oba obamacare because it can't live without the mandate, very unfair to people and we did anwar anwar, ronald regan tried to do it 40 years ago. everybody is trying to do anwar

and i got anwar done as part of that same bill so on top of the biggest tax cuts, great reform, and the money is coming in i mean, the money is pouring in. we probably take in $4 trillion from over seas that would never have been able to be here. >> can we talk trade real quickly. >> and taxes. >> so we had solar panels, washing machines, i'm not sure where it goes from here. i'm not sure how china reacts -- >> whatever it is. they're grown ups and i think they understand -- >> it's time. >> -- we have some legitimate -- right. are you going to stick with bilateral or would you ever do -- would you ever go back -- ppp, would that ever be possible to look at that again? >> i like bilateral because if you have a problem, you terminate. when you're in with many countries, like you're in with t.p.p., we had 12, you don't have that same option. somebody asked me the other day, would i do t.p.p here's my answer i'll give you a big story. i would do tpp if we made a much

better deal than we had. thedeal was a horrible deal. nafta's a horrible deal. we're renegotiating it i may terminate nafta, we may not. we'll see what happens i tell stadiums full of people -- >> you -- are you opening up the door to reopening tpp? >> i'm only saying i would do tpp if we were able to make a substantially better deal. the way it was structured was terrible if we did a substantially better deal, i would be open to tpp. >> that's interesting. >> but you -- are you surprised to hear me say that? >> yeah. >> don't be surprised. a deal was a bad deal. like the iran deal is a bad deal. >> maybe nafta, maybe not nafta. can you give me any indication which way you're leaning because there's a lot of -- a lot of the ceos that have been on here, they all seem to acknowledge that it's 30 years later and there's a lot of changes that make a lot of sense but to not abandon the deal. >> joe, we have a trade deficit with mexico.

>> right >> mexico, $71 billion a year, right? we have a trade deficit with canada of a substantial amount of money i have a number but they keep arguing, they keep saying that's -- i won't say it i won't tell you it's $17 million. we have a trade deficit with canada we have a massive trade deficit with mexico. have to do something we can't continue this. >> are you leaning towards staying in or -- >> i've always said during the campaign, as you have actually said a couple of times, which i've always appreciated, i have fulfilled a lot of what i've said i'm only here a year i think i have four years and maybe another four years, okay >> we'll see. >> we'll see what happens but, joe, we have a $71 billion a year trade deficit with mexico we can't have that so will it be renegotiated we're trying now i think we have a good chance, but we'll see what happens >> the way that the shutdown

finally was -- you know, was ended -- >> yeah. >> -- i get the feeling that senator schumer is taking a lot of flak from his flank, from the far left so i feel like he's been burnt which makes me worry about when we go back -- >> he made a mistake in shutting down he shouldn't have shut down. people in this country want security, safety, they want their military -- >> what's going to happen on monday with daca >> the process. >> will you stay or will you move further to -- >> i think cotton and purdue and goodlad and the people that i've been dealing with, cornyn, these are people that really have shifted a lot. they've really shifted a lot, and i think they're willing to shift more and so am i. >> you said 10 to 12 years for citizenship for the d.r.e.a.m.ers. >> we will see if we make the right deal i think they will. these are people that have very strong opinions on daca and/or immigration generally and, yeah, i happen to think they're largely right.

look, we're going to try to make a deal on daca we have a good chance of making it what we need is we need the wall we need security we need security at the border we have to stop the drugs coming in we need safety we need a strong military. we need all those more than ever before we've been in war so we needed it then. we need to be sure that our military is properly funded and it would be really great to get rid of the -- you know, we'd like to have a regular budget. >> will you ask for 27 billion >> we're asking. >> did chuck schumer -- >> we agreed to 25 billion. >> he took it back you know. >> how much did he agree to? >> he didn't really take it back if you see numerous senators on the other side, he said we'd give the wall in two minutes if we could do something with daca. everybody wants to solve the daca problem it should have been solved by president obama. it would have been easier to solve it, especially when he had the house and the senate they could have solved it in a day, but they didn't solve it. he didn't solve things and he did something that he didn't have the right to do you understand, he did an

executive order and that was no good by the way, it wasn't me the courts were not upholding that executive order you have to do it through congress i want to solve the daca problem. i will consider that a great achievement to solve the daca problem. it's been out there for a long time these are good people. these are people that should be able to stay in the country. we're going to solve the daca problem, but we also want to solve a tremendous problem on the southern border, which is crime. we need a wall we need the drugs to stop flowing in they are coming in like -- well, they're coming in less now than they were because we have a very strong -- we have great border patrol agents, great ic e. -- we have great people and they're doing a good job you see what's happening it's much better but we need a strong border and to do that you need a wall. they did agree to a $25 billion wall of which i'll have a lot left over. i don't need $25 billion that's what i do

we'll build a great wall and we'll have a lot of money left over and we'll spend it on other things but we need great security and, yes, senator purdue, senator cotton, cornyn, this one, that one, we have tremendous support to get stuff done, tremendous, joe, and i think something will get done. >> i want to ask you a davos question just because i'm here i don't know how you're going to take this. whenever we're here we talk about wealth, disparity in income inequality, not just globally but everywhere. >> big problem. >> big problem a resurgent united states, a stroger growing united states makes a world of difference not just for the united states but for the world in general i'm just wondering if you were able to keep gdp or if the united states grows at 3 or 4% and we have the coiffeurs, we can do a lot with -- >> different country. >> do you have a way of addressing the skills gap in

education? as a business person you solve problems now you're -- >> we need vocational schools. we need community colleges -- >> will that be something? >> oh, i think it's a big factor for us but i also want these big companies coming in, toyota is coming in, we talked about apple. apple is coming in with a very big presence we have many companies chrysler is coming in, leaving mexico and coming back to michigan how good is that when was the last time you heard that and without me being here and without what we've been doing, including regulation because i happen to think that regulation is as big as the tax cuts, okay? i think the tax cuts are incredible but i think the cutting of regulations because the businesses couldn't even -- they couldn't do anything. they were totally blocked. they had to get 15 approvals from 15 agencies hey, joe, it was impossible to do business. i think you know that maybe better than anybody. the cutting of the regulations was every bit as important as

what we did with the tax cuts. you put them both together and we have a dynamic country again. i mean, everybody's talking. i just came out and the really wonderful people said davos has never been like this this is like walking into the academy awards except we have more photographers here. >> the journal this morning, we had an editorial, they gave a lot of credit to the trump administration for where economic growth is right now, but then they said, why would a cabinet member bring up the idea of a weaker dollar when things are going so well? and i'm wondering whether you saw the secretary mnuchin's comments yesterday do you agree with those? was it taken out of context? >> let me tell you, i think they were taken out of comments i read it. i'll tell you where i stand, which ultimately is very important. number one, i don't like talking about it because, frankly, nobody should be talking about it it should be what it is. it should also be based on the strength of the country. we are doing so well, our country is becoming so

economically strong again and strong in other ways, too, by the way, that the dollar is going to get stronger and stronger and ultimately i want to see it stronger right now it flows, with ybut is your great reserve currency. there is nothing close to it there never will be. but ultimately the dollar, because our country is going to get so much stronger, if you look at what's happened to our country over the -- look, i've been talking about this with you for 25 years, trade, starting with japan, morphed into china now it's china, japan, it's everybody. everybody has taken advantage of our country. they have ripped our country off. you look at what they do i saw something on my tore cycles today with a certain country. but they say motorcycles into our country, no tax. we sell motorcycles into their country, harley-davidsons, the greatest, right? we sell them into our country,

100% tax not going to happen. the word reciprocal is the most important word with donald trump when it comes to what the subject we talk about and the subject that cnbc covers so well, especially you, by the way, because i don't agree with all of your people, but that's okay, but reciprocal i want reciprocal. if they're going to charge us 100% for a motorcycle, it should be 100% the other way, too you know, when you mention a tax at the border, 10% tax on the border for everything coming in, i'm a free trader, totally i'm a fair trader. i'm all kinds of trader, but i want reciprocal. because when china's charging us a fortune to send products there and making it impossible for the product to get there, and many other countries by the way, not just china, china's the biggest, and then we charge them nothing to sell their stuff here, that's not fair when you use the word reciprocal, everybody

understands that if they do it to you, you do it to them, and everybody understands it, joe. you're going to see a lot of that in my administration, and you're already seeing it. >> we're going to have to end it there. will we have another shot now? will you move more to the center >> i don't think the democrats would shut it down >> no. you look at every poll and -- >> i don't want to say schumer got badly beaten i'm negotiating this you look at what happened, the people want security they want -- and they want daca taken care of, but more importantly, they want security. they want the border strong. they want to have a strong border they don't want to have ms-13 coming into our cities you know how many of these people are getting out these are horrible, horrible human beings, and they came here as horrible human beings joe, it sounds terrible. they don't shoot somebody, they cut them up into little pieces because it's more painful. i don't want them -- we are

taking them out by the thousands, by the thousands. we don't want them coming in but we're going to take care of daca nobody wants to take care of daca more than myself and the republican party, and the republican party is unified at a level that -- paul ryan called me the other day and he said, i have to tell you, mr. president, i've been here for a long time, i've been part of the republican party and i've been watching it. for many decades i've never seen the republican party unified like it is under your presidency that was paul ryan, and i thought that was a very nice statement. very nice statement, and i think mitch mccconnell feels the same way. we want to do what's right we're going to solve the daca problem. we need a little more time we'll take a little more time. i want to get the problem solved correctly. >> all right thank you very much. >> thank you very much. >> for sitting down with us. >> we've known each other a long

time. >> we have, and i appreciate it and we're looking forward to the speech. >> thank you very much. >> i think a lot of people will be watching. >> good, i hope so thank you, joe appreciate it. >> we have a lot going on. first, we're going to sneak in a quick break here and get reaction on that interview right after the afore mentioned break. later greg ip will be our guest take a look at the dollar, the president saying comments made by secretary mnuchin this week about a weaker dollar were misinterpreted secretary mnuchin is saying the same thing now saying taken out of context. we'll have more on that and his comments about tpp when "squawk box" returns time now for today's aflac trivia question. what was the initial name of warren buffet's first private jet? the answer when cnbc "squawk box" continues

and a gentle wave-like motion... liberate your spine... aflac! and reach, toes blossoming... not that great at yoga ya but when i slipped a disc, he paid my claim in just one day. so he had your back? yup in just one day, we process, approve and pay. one day pay. only from aflac we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. and at $4.95, you can trade with a clear advantage. wow! record time.s. at cognizant, we're helping today's leading life sciences companies go beyond developing prescriptions to offering subscriptions with personalized, real-time advice

for life-long, healthy living. honey? you almost done? nope. get ready, because we're helping leading companies see it- and see it through-with digital. and made it liberating. we took safe and made it daring. we took intelligent, and made it utterly irresistible. we took the most advanced e-class ever and made the most exciting e-class ever. the 2018 e-class coupe and sedan. lease the e300 sedan for $569 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. oh good, you're awake! finally. you're still here? come on, denise. we're voya! we stay with you to and through retirement... ...with solutions to help provide income throughout. i get that voya is with me through retirement,

i'm just surprised it means in my kitchen. oh. [whispering] so that means no breakfast? i said there might be breakfast. i was really looking forward to breakfast... i know. voya. helping you to and through retirement.

>> what do you think i should call it? >> your chopper. >> what should i call your chopper? >> we have to think about it >> choppers don't have -- >> so do planes. >> i don't know. >> tvtf. >> joining us to talk about the president's comments, fred kempe. >> the axios blade that's a cool one. fred, for you, was tpp sort of -- was that -- did that cause you to raise an eyebrow? what do you make of this >> yeah. super interview. >> thank you >> the tpp is interesting.

this is the first time he's said anything about tpp i talked to a japanese official. he said they left 20 items out of tpp that were u.s. requested items. those items are ready to go. they understand that the president likes wins and this could be a win it's been negotiated they're ready to go. they could add them on it wouldn't be that hard to do, but he said the problem is the u.s. is involved in nafta and korean negotiations so how are they going to squeeze this in. >> what are those 20 provisions? is there an example of one or two things that we would definitely want? >> clearly things like agriculture, things that are very much in the u.s. interest. >> market access >> things that were not in the overall interest of the tp 11 because it had more to do with what the u.s. wanted in their markets. >> on nafta we heard there was a 6:00 p.m. meeting with the ceos. there was this exchange where president trump says, you know, i think we probably have to rip up nafta completely. i have other guys here who think

we can actually think about a way to renegotiate it. i think i'm probably right but i'm going to let them do the other thing. what do you think? >> i got a good readout from the reception he was at. this was trump at his best the stage management is amazing. it's about the rolling stones is about to come on, you had warmup acts of macron, merkel, modi. >> he gets the last word >> none of them had made the news that xiening ping made from last year. he's going to sell america so it's going to be not make america great again but america's back so he's going to give you all the numbers. you're going to have the gdp number which is 2.9% at the reception he talked about that he said you're going to really like my speech. >> i heard he actually talked about it as being 3%, just straight up. >> well, what he said was we can do 4%, we can do 5%. so, yes, he said -- somebody said is it going to be 3%?

he said real close and so -- >> by the way, does he have those numbers in advance or not? >> who knows, but -- >> i heard he joked about 7% too. >> he did talk about nafta he did talk about nafta in that group as well. that was the one thing that threw them off he seemed quite ready to rip them off he thought he wouldn't get the deal he wants without doing that. >> back to tpp for a second. when it was happening there would be -- it turned out -- into bipartisan opposition and it was bipartisan demagoguery. i really think it was. most of the tariffs that were coming off were things that would benefit us, tariffs in other places there was a group of democrats and republicans that were clear thinkers scratching their heads saying this makes no sense it's always been that way. if you do get out of the demagoguery, i could see him, you know, leaving the campaign rhetoric behind or having the -- you know, weird to see trump and

bernie sanders on the same side of things and come out as the -- you know, on the free market guy and say i want -- i could see it happening. do you think it will do you think this really will happen >> i'm not sure how quickly it will happen, but what he's essentially said to his negotiators is he's not going to throw his body in front of it. don't forget, wilbur ross is talking about the trans atlantic trade investment partnership they've never disavowed that was it a bad deal? he has to say that and just change a few things and now say it's a good deal >> this is the dumbest thing he could have done if he's trying to stand up to the chinese. >> right. >> to come back to it. and then he could over time bring the chinese into it is what the japanese official said. don't forget, he's rounded the issues of a lot of things. nato was obsolete. pulling out of iran, we haven't entirely done that as he's come more into his administration and had his cabinet members in place, a lot of the sharper edges of what he said in the campaign got rounded

off. tpp was right away, right out of the block. it was more domestic political than it was international. >> they wanted to bring that up because he said, here, i've got something for you, then he did it they wanted to bring that up he wanted to bring it up >> yeah. >> so over all you would say that other nations, leaders of other nations and advisers are kind of listening to this saying, hey, not what we thought was going to happen a year ago and maybe there are a lot of opportunities for us ultimately? >> look, there's a lot of group think in davos, and group think last year was, oh, this is a disaster and so subliminally trump's coming here, things didn't turn out the way you thought it was going to anyone in business is either coming out even on the tax cuts or coming out a lot better, so that's all right the deregulation, they like that there are a lot of civil society activists who really hate trump here the question for me is how will they be in the hall, will they

be respectful the way davos players are usually respectful. >> i've heard some people claiming there's people making posts -- did you hear about this they want to do posters that say s-h-i-t hole, i'm from one of those countries. >> you weren't there >> i was on making -- >> no. all right. all right. you see like you knew firsthand. >> i heard rumblings that there were people -- >> i talked to the africa -- i talked to the african ceo who actually send the letter i said, are you going to stand up with other african businesses and do the distinguished walkout you talked about he said, no, no, the letter was saying we're going to boycott, some of us are not going to come so you're not going to stand up? there isn't going to be a demonstration? and he just went back to, look, we want to send a message. we wish trump would take back some of what he's allegedly said but it seemed to me that he was walking back from any sort of

visible upsetting demonstration of any sort. >> to your point about these ceos think things are better than they expected, but when you're in the bar, when you're in the hallways, they still talk about him as if he's kind of loco they're grateful they haven't changed their view of him >> so i won't mirror back to you everything you just said, but the fact of the matter is they don't like his demeanor. they don't like the way he talks. if you look at the edelman trust, it's way down on the united states, but then they say, but look what's going on. >> yeah, right >> look at the outcome. >> thank you >> it's better for me, and there's a lot of complacency i actually really worry about it there's a lot of complacency about the global economy, there's a lot of complacency about where we are in the stock market people are feeling really good trump much to the surprise of a lot of people are here biggest delegation the u.s. has ever had here. the other thing the people are saying is the cabinet members

and delegation is all over the place. they're participating in dinners, they're participating in workshops they're rolling up their sleeves. they're working on initiatives here you're hearing the positive feeling that i -- talking to people at the bar, et cetera, you wouldn't have expected. >> fred, thank you. >> thank you. >> it's great to see you in the meantime, folks, let's get you caught up with some of this morning's top headlines. two economic data reports are out an hour's time from now. we'll be getting the first read on fourth quarter gdp as well as december durable goods orders. gdp is expected to show 2.9% rate that will come out just as president trump is addressing the delegates here at the world economic forum that will be something to watch, too. also, colgate shares are under pressure this morning. the consumer products company matching estimates of quarterly profits of 75 cents per share.

the worldwide growth remains challenging, that's why that stock is down by about 3%. starbucks shares are falling in pre-market trading today starbucks did beat expectations by a penny when it came to quarterly earnings, but the revenue missed forecast. it would be at the lower end of the prior forecast for 2018. starbucks shares down, wow, 4.8% starbucks ceo kevin johnson will be coming up on "squawk on the street." coming up when we return live from davos, coming off of joe's interview with president trump, greg ip is going to join us to break down his comments on trade, the dollar and so much more we will be back in a little bit. starting at 8:00 a.m. eastern time we will have special coverage of the president's address in davos very busy morning on wall street right here in davos. back here in a minute.

tomorrow, it's a day filled with promise and new beginnings, challenges and opportunities. at ameriprise financial, we can't predict what tomorrow will bring. but our comprehensive approach to financial planning can help make sure you're prepared for what's expected and even what's not. and that kind of financial confidence can help you sleep better at night. with the right financial advisor, life can be brilliant.

i had the opportunity to sit down with president trump, as you probably know by now, and we talked about trade, the dollar and his message to the crowd at the world economic forum here's the president on tpp and

nafta. >> i like bilateral because if you have a problem, you terminate. when you're in with many countries like with tpp, so you have 12 if we were in, you don't have that same -- you know, you don't have that same option. >> right. >> somebody asked me the other day, would i do tpp? here's my answer i'll give you a big story. i would do tpp if we made a much better deal than we had. we had a horrible deal the deal was a horrible deal nafta is a horrible deal we're renegotiating. i may terminate nafta, we may not. i tell stadiums full of people -- >> so you might re-enter -- are you opening up the door to reopening tpp? >> i'm only saying this. i would do tpp if we were able to make a substantially better deal the deal was terrible. the way it was structured was terrible if we did a substantially better deal, i would be open to tpp. >> that's interesting. would you hand -- >> are you surprised to hear me say that >> yeah, i'm a little taken

aback. a deal was a bad deal. like the iran deal was a bad deal. >> maybe nafta, maybe not nafta. can you give me any indication which way you're leaning a lot of the ceos that have been on here, they all seem to acknowledge that it's 30 years later and there's a lot of changes that make a lot of sense but to not abandon the deal. >> joe, we have a trade deficit with mexico. >> right >> mexico, $71 billion a year, right? we have a trade deficit with canada of a substantial amount of money i have a number but they keep arguing. they keep saying that. i won't say it i won't tell you it's $167 millio -- $17 million, okay? we have a massive trade deficit with mexico. do something we can't continue like this -- >> are you leaning towards staying in or would you really go -- >> i've always said during the campaign, as you know, as you have actually said a couple of times, which i have always appreciated, i have fulfilled a lot of what i've said. i'm only here a year i think i have four years, and maybe another four years

we'll see what happens. >> i'll tell you -- >> joe. >> yeah. >> we have a $71 billion a year trade deficit with mexico. we have to do something. we can't do that will it be renegotiated? we're trying i think we have a good chance, but we'll see what happens >> all right let's talk more about the president's comments joining us right now is greg ip, the chief economics commentator at "the wall street journal. great to see you here. >> thanks for having me. >> let's dig into this when it comes to the trade deals if this is a precursor of what he's going to say when he addresses the crowd in 15 minutes' time, that's quite a bit more open than people had anticipated. >> there's two donald trump's, there's conciliatory donald trump and confrontational donald trump. when he's in the united states in the campaign mode you often see the confrontational donald trump. i think the signals we've seen from him in the interview and officials this is more

conciliatory mode. that's the tone you'll see this afternoon. i think it will be encouraging, uplifting to the spirits here who have been worried for the better part of a year where the united states is going where i think the issue is, has the substance changed? does this reflect anymore substandbility >> that is going to be the fundamental question we may all walk out of here and then -- feeling great in terms of this new sense but is it really a new sense is it a pivot? >> i don't think it's a pivot. we've heard no hint notwithstanding the nicer packaging and conciliatory tone, i've not seen any change in substance. >> one of the points where you are seeing change in substance, the advisers are saying you mess with ours we mess with your stock market that is resonate they've rolled it out on a few issues the one thing that works with him, that's why we may actually see a substantive softening. >> the change in substance that

you'd most like, would it be less of a gains in the stock market a lower gdp than 3%? would it be -- which of the -- which of the much-needed changes are you planning for the most? >> well, let me -- rather than say what i want, let's talk about who all -- >> you don't want it to be on your show? >> i see you and andrew both hoping, god, maybe there are signs that things could improve, but probably back to the same old trump once he goes back -- >> they're talking about -- >> i know. i know i know. >> sensibilities get ruffled a few times. let's just focus on -- there's some good things happening that haven't happened in a long time. >> in the economy, absolutely. >> what else do you care >> what happens with trade what happens with tpp? >> the worst case scenarios with trade deals. the substance of that over the last year has not needed to be changed. >> joe, just for a moment, that's partly because they were ramping up, all right? they were going to give nafta a try. the fact that they haven't come to the breaking point doesn't mean we won't. when i talk about substance, i mean specifically on nafta,

let's take two issues which are the crux of the dispute. do we change the origin on autos? those are the red lines from mexicans and canadians so far there's been no flexibility on either side. >> you don't know nafta, we don't know whether it's, you know, negotiating and posturing all with the -- just trying to get what he feels is a better deal for america we don't know yet. until he says we're out of nafta, i'm not going to believe we're out of nafta. >> there's a false dichotomy there, joe there's no dichotomy between saying i want the best deal for america and negotiating and posturing. the differences are profound differences. i believe negotiating is going on saying he wants a better nafta doesn't get us one inch better to having a better nafta. >> do you disagree with what he wants? would you disagree with the american position on that, nafta now and what we're negotiating for? is that what you're saying what are we asking for what we're asking for is wrong

>> all trades are a negotiation is like any transaction. both sides have to walk away feeling like they have -- >> u.s. auto industry has a problem. >> the canadian, the reason they did free trade is they felt they were being hit unfairly by u. 167s. ain't dumping. a nafta deal without a mechanism to correct the problems is not worth it to them now that they have the world trade organization as a backup, the domestic price would be very high for the canadians to pay. >> you've always been our resident fed watcher for so long how do you think they're thinking about it, about this economy? this optimism and how fast or slow they're going to have to react to all of this i was with a ceo last night who was very optimistic, by the way, about the next year, 18 months, but who said i think we're building a bubble. we're doing what we should be trying to avoid. >> so i think there's going to be two issues that they're going to be watching carefully

one will be the real economy knowing their models and their thinking, i'm guessing they've probably upgraded their forecast for u.s.gdp for 2.5 to 3%. that does not mean they have to take rates through the roof. that means one extra rate hike that means we move up 2% no economy tank the because of 2% interest rate hike. i don't think it kills the stock prices remember, the reason that we're eight or nine years in this business cycle with years we are is because inflation is so low inflation is a slow moving phenomenon that's not going to change. >> is there any dislocation in all of this that worries you i was talking with a banker last night, corporate buying yields versus treasuries. >> yeah. >> there's something so off about that. >> i was talking to a banker earlier this week. he was worried about leverage, you know he's saying that deals are doing a lot more with debt because debt is cheap and equity is expensive. they're still doing the deals. and i think what the fed worries

about is that their low interest rate policy is not showing up in an over heating economy with lots of inflationary pressure and wages, it's showing up in asset prices they've seen this movie before they're sort of back in that dilemma of this doesn't end well what do we do? we can't raise interest rates because the stock market is high. >> jamie dimon was here earlier and said, look, you don't see the debt levels you saw in 2006. >> yeah. >> there's nothing. >> yeah. you see big movements in asset prices you don't see the leverage and the excess growth that's associated with that unless it's hidden somewhere like it was ten years ago when we don't see it until the tide goes out. >> the ecb and the fed ex try kating themselves. if you want something to worry about where people say i'm worried because there's nothing to worry about, we assume they could do all of this stuff and, you know, juice everything up, get everything going, trillions of dollars when they unwind it's going to be, they did their work, now we unwind if i was going to worry about anything, that would probably be

it. >> can i add one other thing though >> yeah. >> bank of japan, they're going to start retracing and pulling back as well we have two of the big three central banks this year beginning to pull out. >> one eventually. the third one eventually has to as well. greg, thank you. yeah, we've got to hit some hard something or other >> speech. >> see you a little bit better >> when we come back we're going to wrap up the hour with the president's comments on the state of the republican party and hear from our guest host mike allen about what he's learned from davos also coming up at the top of the hour, our special coverage of the president's address to the world economic for rim rum you might take something for your heart... or joints. but do you take something for your brain.

with an ingredient originally found in jellyfish, prevagen is the number one selling brain-health supplement in drug stores nationwide. prevagen. the name to remember. yes or no?gin. do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online.

>> that's why paul ryan is almost certainly heading for the exit >> we broadcast it prote protestations with quotes around it high note with the tax cut every day having to answer for and defend donald trump. there's nothing paul ryan would less rather do. >> mike, you saw the generic republic, you saw it go from 17 to 6 so at this point in time you're saying if things continue as they are, can you change your tune from now and november

>> of course. >> you could >> it would just be more specific i will tell you that republican operatives think things are baked in it's very difficult to overcome at this point. now that was before some of the poles started to move up. >> we had -- we had some of those republican operatives on the show, a lot of them. >> touche, but what's very rare is to see it away this early. >> mike allen, thank you we're going to take a break and then the president's going to come back and talk to the world. >> republicans were losing for a long time. i think they like winning a little bit they might not feel totally comfortable, but i think they like winning i don't know when we return, our special coverage of the president's address to the world economic forum. all the globalists and litists d usill carry his speech live, an, and have the immediate reaction "squawk box" will be right back. >> thank you

hold together. a little to the left.

1, 2, 3, push! easy! easy! easy! (horn honking) alright! alright! we've all got places to go! we've all got places to go! washington crossing the delaware turnpike? surprising. what's not surprising? how much money sean saved by switching to geico. big man with a horn. fifteen minutes could save you fifteen percent or more. and made it liberating. we took safe and made it daring. we took intelligent, and made it utterly irresistible. we took the most advanced e-class ever and made the most exciting e-class ever. the 2018 e-class coupe and sedan. lease the e300 sedan for $569 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. i thwell wait. what did you meetthink about her? it's definitely a new idea, but there's no business track record. well, have you seen her work? no. is it good?

good? at cognizant, we're helping today's leading banks make better lending decisions with new sources of data- so, multiply that by her followers, speaking engagements, work experience... credit history. that more accurately assess a business' chances of success. this is a good investment. she's a good investment. get ready, because we're helping leading companies see it- and see it through-with digital. good morning and welcome to a special presentation of "squawk box" live from the world economic forum in davos, switzerland. this hour, president trump speaks to the global ceos and world leaders gathered here. it's friday, january 26th, 2018,

and "squawk box" begins right now. ♪ ♪ ♪ good morning welcome back to "squawk box" here on cnbc live from davos yeah, a year's passed. we're in davos, switzerland. wilfred says davos davos. i'm joe kernen along with -- who would know better than davos man along with becky quick and andrew ross sorkin 14 years or something for you, right? >> no, i think maybe 12 or 13. >> president's on stage. >> yeah, we're looking at live pictures inside the congress center here in davos president trump about to address the world economic forum he is being introduced by we we

executive. >> the professor. >> yeah. we will bring you to the event live as soon as it actually begins while we wait, let's take a look at the markets this morning. yesterday we saw both the dow and the s&p closing higher this morning as we've been watching it's been looking like the equities future markets. the boards have been up across the board. dow futures look like they would open up 56 points. that's down from up 70 that we saw earlier this morning s&p futures still hanging in there up by ten points the nasdaq is up by 36 points above fair value also, take a look at treasuries. we have seen treasury yields climb higher in recent weeks and right now it looks like the ten year is yielding 6.43% so pushing higher yet again and the dollar, this has been a huge story all week here from the world economic forum earlier in the week treasury secretary mnuchin really concerning currency markets and

dollar holders when he said that a weak dollar actually is good for the u.s. he walked back those comments and yesterday in speaking with joe, the president himself said that he is in favor of a stronger dollar and that he expects to see the dollar picking up steam as we have seen the economy here and the u.s. continue to build. with those comments we saw the dollar pick back up. this morning it's down, but you can also see what's been happening in europe. markets there up across the board. looks like the biggest gainers the cac is up 1% macron has been one of the le leaders talking about all of these. you can hear the background applauding as the president is being introduced also, take a look at gold because as the dollar picked up yesterday, the gold lost some of that rally that it had been seeing take a look at the gold market right now. let's check out the wti because that market had been higher with the weaker dollar. it looks like it's up 8 cents to $65.59 again, gold prices at this point just with the pull back that

we've seen, 1,350 and it looks like that is down by about 1%. again, it had seen some gains on concerns about the dollar initially. >> again, this is -- schwab has been doing this. joe, the dollar comments by the president in his interview with you were things that had been written up across the board. at one point they thought mnuchin's comments were coordinated to go with the tariffs that were coordinated. you have to remember these are outsiders from washington. >> it's like treasury secretary 101 but nothing is as usual, really i look at exactly what mnuchin said and it does violate, you know, the letter of the law. >> the spirit of the law was -- >> i think the president was happy/unhappy with the comments? >> i don't get the impression he was at all. >> he said specifically he

thought they were taken out of context. >> short term currencies fluctuate. long term with what we're doing. rates are going to go up >> greg, if you've been watching -- >> the only thing that would cause the dollar to continue to weaken would be, you know, the bugaboo that everybody is worried about with protectionism. >> or it's a retaliation story. >> right >> protectionism. >> not just that though, other markets -- other economies have been much stronger than we thought. >> with four interest rate hikes it's hard for the dollar. >> as we await the president, greg ip, what do you think you've followed every treasury secretary over the last couple of decades you never heard this kind of language before. >> i've heard similar. you remember paul o'neill, he thought i'm tired of repeating this strong dollar mantra. contrary to popular misconception, we do not have a strong dollar policy we have a policy of a strong economy. nobody listened to the second part of that steps and the dollar tanked.

he learned there's a mantra for a reason the forex markets don't do nuance i think steve mnuchin had a moment to learn. we at the journal had an interview. he was rock solid on i have no point on where the dollar goes he made the point that the impact is interest rates and the fed is independent. >> it's hard to imagine with german rates at 50 basis points that you're not going to see capital in flows to our bond market here at 2.6%, right >> yeah. but correct me if i'm wrong, maybe you've been hearing this as well, one of the big surprises in the last month or so is the weakness of the dollar virtually everybody looks at those. tax cuts, strong growth. the dollar should be going up. it's going down. i think that's one of the reasons why these comments have the impact that it did. >> randall >> randall wayne of forbes, your take on all of this as we await the president? >> i think the key word i'm looking for today is bilateral

i think if you had a drinking game, how many times does he say bilateral? you've already seen it in the twitter feed i had a bilateral meeting with netanyahu. i had a bilateral meeting with may. this is a multilateral group if there ever was one i'm curious to see what kind of flag he's going to plant here to talk about his view of the world which is as the deal maker. >> we have some early comments if he sticks to the teleprompter and prepared remarks, he says i am here for america first, i am the america first president but i am also here to say that does not mean america alone this is every nation want to go do the best for their own people first. >> that's the way he's always approached business. i want 101 deals i want to win. win, win, win even if somebody else loses >> are you expecting any protests anybody standing up and screaming, other people walking out? what do you think will happen? >> you're hearing about it the question is how will he react? he's used to protests.

>> hope springs eternal for those demonstrations, andrew let's head inside the congress center and listen to the president's speech to the world economic forum. >> thank you very much it's a privilege to be here at this forum where leaders in business, science, art, diplomacy and world affairs have gathered for many, many years to discuss how we can advance prosperity, security and peace i'm here today to represent the interests of the american people and to affirm america's friendship and partnership in building a better world. like all nations represented at this great forum, america hopes for a future in which everyone can prosper and every child can grow up free from violence, poverty and fear over the past year we have made extraordinary strides in the u.s. we're lifting up forgotten communities, creating exciting new opportunities and helping every american find their path

to the american dream, the dream of a great job, a safe home, and a better life for their children after years of stagnation, the united states is once again experiencing strong economic growth the stock market is smashing one record after another and has added more than $7 trillion in new wealth since my election consumer confidence, business confidence and manufacturing confidence are the highest they have been in many decades. since my election we've created 2.4 million jobs, and that number substantially. small business optimism is at an all-time high. new unemployment claims are near the lowest we've seen in almost half a century

african-american unemployment has reached the lowest rate ever recorded in the united states, and so has unemployment among hispanic americans the world is witnessing the resurgence of a strong and prosperous america i'm here to deliver a simple message. there has never been a better time to hire, to build, to invest, and to grow in the united states. america is open for business, and we are competitive once again. the american economy is by far the largest in the world, and we've just enacted the most significant tax cuts and reform in american history. we've massively cut taxes for the middle class, small businesses to let working families keep more of their hard-earned money.

we lowered our corporate tax rate from 35% all the way down to 21% as a result, millions of workers have received tax cut bonuses from their employers in amounts as large as $3,000 the tax cut bill is expected to raise the average american's household income by more than $4,000 the world's largest company, apple, announced it plans to bring $245 billion in over seas profits home to america. their total investment into the united states economy will be more than $350 billion over the next five years. now is the perfect time to bring your business, your jobs and your investments to the united states this is especially true because we have undertaken the most extensive regulatory reduction

ever conceived regulation is stealth taxation the u.s., like many other countries, unelected bureaucrats, and we have -- believe me, we have them all over the place, and they've imposed crushing and anti-business and anti-worker regulations on our citizens with no vote, no legislative debate and no real accountability in america those days are over i pledged to eliminate two unnecessary regulations for everyone new regulation. we have succeeded beyond our highest expectations instead of two for one, we have cut 22 burdensome regulations for every one new rule

we are freeing our businesses so they can thrive and flourish we are creating an environment that attracts capital, invites investment and rewards production america is the place to do business, so come to america where you can innovate, create, and build. i believe in america as president of the united states, i will always put america first just like the leaders of other countries should put their country first also but america first does not mean america alone. when the united states grows, so does the world american prosperity has created countless jobs all around the globe, and the drive forex lens, creativity and innovation in the

u.s. has led to important discoveries that help people everywhere live more prosperous and far healthier lives. as the united states pursues domestic reforms, to unleash jobs and growth, we are also working to reform the international trading system so that it promotes broadly shared prosperity and rewards to those who play by the rules. we cannot have free and open trade if some countries exploit the system at the expense of others we support free trade but it needs to be fair and it needs to be reciprocal because in the end unfair trade undermines us all the united states will no longer turn a blind eye to unfair economic practices, including massive intellectual property

theft, industrial subsidies, and pervasive state-led economic planning these and other predatory behaviors are distorting the global markets and harming businesses and workers not just in the u.s. but aroundthe globe. just like we expect the leaders of other countries to protect their interests, as president of the united states i will always protect the interests of our country, our companies, and our workers. we will enforce our trade laws and restore integrity to our trading system only by insisting on fair and reciprocal trade can we create a system that works not just for the u.s. but for all nations as i have said, the united states is prepared to negotiate mutually beneficial bilateral trade agreements with all

countries. this will include the countries in tpp which are very important. we have agreements with several of them already. we would consider negotiating with the rest either individually or perhaps as a group if it is in the interests of all my administration is also taking swift action in other ways to restore american confidence and independence. we are lifting self-imposed restrictions on energy production to provide affordable power to our citizens and businesses and to promote energy security for our friends all around the world no country should be held hostage to a single provider of energy america is roaring back, and now is the time to invest in the future of america. we have dramatically cut taxes

to make america competitive. we are eliminating burdensome regulations at a record pace we are reforming the bureaucracy to make it lean, responsive and accountable, and we are ensuring our laws are enforced fairly we have the best colleges and universities in the world, and we have the best workers in the world. energy is abundant and affordable there has never been a better time to do business in america we are also making historic investments in the american military because we cannot have prosperity without security. to make the world safer from rowing regimes, terrorism and revisionist powers, we are asking our friends and allies to invest in their own defenses and to meet their financial obligations. our common security requires everyone to contribute their

fair share my administration is proud to have led historic efforts at the united nations security council and all around the world to unite all civilized nations in our campaign of maximum pressure to denuke the korean peninsula we continue to call on partners to confront iran's support for terrorists and block iran's path to a nuclear weapon. we're also working with allies and partners to destroy jihadist terrorist organizations such as isis and very successfully so. the united states is leading a very broad coalition to deny terrorists control of their territory and populations, to cut off their funding and to discredit their wicked ideology. i am pleased to report that the coalition to defeat isis has retaken almost 100% of the

territory once held by these killers in iraq and syria. there is still more fighting and work to be done and to consolidate our gains. we are committed to ensuring that afghanistan never again becomes a safe haven for terrorist whose want to commit mass murder to our civilian populations. i want to thank those nations represented here today that have joined in these crucial efforts. you are not just securing your own citizens but saving lives and restoring hope for millions and millions of people when it comes to terrorism, we will do whatever is necessary to protect our nation we will defend our citizens and our borders. we are also securing our immigration system as a matter of both national and economic

security america is a cutting-edge economy. our immigration system is stuck in the past. we must replace our current system of extended family chain migration with a merit-based system of admissions that selects new arrivals based on their ability to contribute to our economy, to support themselves financially and to strengthen our country in rebuilding america we are also fully committed to developing our work force. we are lifting people from dependence to independence because we know the single best anti-poverty program is a very simple and very beautiful paycheck to be successful it is not enough to invest in our economy. we must invest in our people when people are forgotten, the

world becomes fractured. only by hearing and responding to the voices of the forgotten can we create a bright future that is truly shared by all. the nation's greatness is more than the sum of its production the nation's greatness is the sum of its citizens,le values, pride, love, devotion and character of the people who call that nation home from our first international g-7 summit to the g-20 to the u.n. general assembly to apec to the world trade organization and the world economic forum, my administration has not only been present but has driven our message that we are all stronger when free sovereign nations cooperate for shared goals and they cooperate towards shared

dreams flepd this room are some of the remarkable citizens from all over the world you are national leaders, business titans, industry giants and many of the brightest minds in many fields each of you has the power to change hearts, transform lives and shape your country's destinys with this power comes an obligation, however. a duty of loyalty to the people, workers, customers who have made you who you are. so together let us resolve to use our power, our resources and our voices not just for ourselves but for our people to lift their burdens, to raise their hopes and to empower their dreams, to protect their families, their commune be knit tis, their histories and their futures. that's what we're doing in america and the results are

totally unmistakable it's why new businesses and investments are flooding in. it's why our unemployment rate is the lowest it's been in so many decades it's why america's future has never been brighter. today i am inviting all of you to become part of this incredible future we are building together. thank you to our hosts thank you to the leaders and innovators in the audience, but most importantly, thank you to all of the hard-working men and women who do their duty each and every day making this a better world for everyone together let us send our love and our gratitude to make them because they really make our countries run. they make our countries great. thank you and god bless you all. thank you very much. [ applause ]

>> folks, there you have it. president trump addressing the world economic speech in what was billed as a 15-minute speech, sure enough, it was almost exactly that. it sounds like he stuck largely to teleprompter. there were no pauses for applause through that speech, but then again there were no interruptions for booing or protests either. this was very much one that sounded like he was sticking to the teleprompter. >> on the set here >> america first does not mean america alone. >> that was the line. >> heard that before >> he did say america's open for business and we are competitive once again talked about things that his administration has done from cutting taxes to regulatory reduction and threw a few bones to the crowd remarkable citizens from the around the world >> looking back here, becky. to the q&a. >> let's go back he is taking questions which we didn't anticipate. >> first of all, i want to congratulate you this is an incredible group of people we had dinner last night with about 15 leaders of industry,

none of whom i knew but all of whom i had read about for years and it was truly an incredible group. but i think i have 15 new friends. this has been really great what you've done, putting it together, the economic forum the tax reform was a dream of a lot of people over many years but they weren't able to get it done ronald reg began wan was the lao make a meaningful cut and ours is cutting and reforming we emphasize cut we've wanted to do it. it is very tough politically to do it. hard to believe that would be, but it is very, very tough, that's why it hasn't been done in close to 40 years and once we got it going, it was going and the big -- and i wouldn't say a total surprise, but one of the big things that happened and took someplace at&t and some others came out very

early and they said they were going to pay thousands and thousands of dollars to people that work for their companies, and you have 300,000, 400,000, 500,000 people working for these companies and all of a sudden it became like a big water fall, a big, beautiful water fall where so many companies are doing it and even today they just announced many more, but every day they announce more and more. and now it's a fight for who's going to give the most it started at 1,000, now we have them up to 3,000 this is something that we didn't anticipate oftentimes in business things happen that you don't anticipate usually that's a bad thing, but this was a good thing. this came out of nowhere nobody ever thought of this as a possibility even it wasn't in the equation. we waited -- we said wait until february 1st when the checks start coming in and people, claus, have a lot more money in their paycheck not just a little money, this is a lot of money for people making

a living doing whatever they may be doing and we really thought february 1st it was going to kick in and everybody was going to be -- well, we haven't even gotten there yet and it's kicked in and it's had an incredible impact on the stock market, the stock prices we've set 84 records since my election record stock market prices, meaning we hit new highs 84 different times out of a one-year period, and that's a great thing. and in all fairness, that was done before we passed the tax cuts and tax reform. so what happened is really something special. then as you know, as i just said, apple came in with $350 billion. i tell you, i spoke with tim cook i said, tim, i will never consider this whole great run that we've made complete until you start building plants in the u.s. and i will tell you this

moved up very substantially, but when i heard 350 i thought he was talking -- i thought they were talking $350 million, and by the way, that's a nice size plant. not the greatest, but not bad, and they said, no, sir, it's $350 billion i said, that is something. well, we have tremendous amounts of money, including my new found friends from last night, great companies, they are all investing. when one of the gentlemen said he's putting in $2 billion because of the tax cuts i said to myself, wow, he's actually the cheap one in the group because they're putting in massive numbers of billions of dollars. so i think you have a brand-new united states. you have a united states where people from all over the world are looking to come in and invest, and there's just nothing like what's happening. and i just want to finish by --

i have a group of people who are -- i have a whole lot of them because i don't want to insult at least half of them, but i've had a group of people that worked so hard on this and other things, and we're really doing -- we had a great first year so successful in so many different ways, and there's a tremendous spirit. when you look at all of the different charts and polls and you see as an example, african-american unemployment at the historic low, it's never had a period of time like this, same with hispanic. women at a 17-year low it's -- it's very heartwarming to see, but there's a tremendous spirit in the united states. i would say it's a spirit like i have never witnessed before. i've been here for a while i have never witnessed the spirit that our country has right now. so i just want to thank you all and all of those that are pouring billions of dollars into our country or $10 into our country, we thank you very much.

thank you. >> mr. president, i will ask you maybe a personal question, but before doing so -- >> sounds very interesting i didn't know about this one >> i would like to acknowledge the strong presence of your cabinet members -- >> yes. >> -- who tremendously contributed to discussions. >> good. i would like to do that. steven, wilbur, gary, robert, even my general and my various other generals, you know, who are making our military protection a little bit better for us, too. so thank you very much does everybody understand that i think so thank you all for being here >> now my maybe personal question would be what experience from your past have been most useful in preparing

you for the presidency >> well, being a businessman has been a great experience for me i've loved it. i've always loved business i've always been good at building things, and i've always been very successful at making money. i'd buy things that would fail, that would be failures, and i'd turn them around and try and get them for the right price, turn them around, make them successful, and i've been good at it. that takes a certain ability you know, historically i guess there's never really been a businessman or business person elected president. it's always been a general or a politician throughout history it's always been a general -- you had to be a general, but mostly it was politicians. you never had a businessman. in all fairness, i was saying to claus last night, had the opposing party to me won, some of whom you backed, some of the people in the room, instead of being up almost 50%, the stock markets is up since my election

up almost 50%, rather than that i believe the stock market from that level, the initial level, would have been down close to 50%. that's where we were i really believe that. because they were going to put on massive new regulations you couldn't breathe it was choking our country to death. i was able to see that, claus, as a business person the other thing is i've always seemed to get for whatever reason, a disproportionate amount of press or media, and -- throughout my whole life somebody will explain some day why, but i've always gotten a lot, and as a businessman i was always treated really welby the press. you know, the numbers speak and things happen, but i've always really had a really good press, and it wasn't until i became a politician that i realized how nasty, how many, how vicious, and how fake the press can be, as the cameras start going off in the back. but -- but overall, i mean, the bottom line, somebody said,

well, they couldn't have been that bad, here we are, we're president. i think we're doing a really great job. i have a team, a team of just tremendous people. i think we're doing a very special job, and i really believe it was time. and it was time to do that job because i don't think the united states would have done very well if it went through four or eight more years of regulation and really a very anti-business group of people. we have a very pro business group. we have regulations cut to a level in the history of our country, claus, this was reported recently, in one year we've cut more regulations in my administration than any other administration in four, eight, or 16 years in the one case. we've cut more regulations in one year, and we have a vaz to go we're going to have regulation there's nothing wrong with rules

and regulations, you need them, but we've cut more than any administration ever in the history of our country and we still have a ways to go. i think that and the tremendous tax cuts we've really done something. one other thing, i saw it last night with some of the leaders and the business people. i think i had been a cheerleader for our country, and everybody representing a company or a country has to be a cheerleader or no matter what you do, it's just not going to work and the reason i'm a cheerleader is because it's easy because i love our country and i think we are just doing really well and we look forward to seeing you in america, special place, and where you are is a special place as well. thank you all very much. i appreciate it. >> thank you thank you very much, mr. president, for being with us so rarely can we form community

who is assembled here. we'll be certainly a, and i quo you from the last piece of your remarks, we'll be certainly among the hard working men and women who do their duty each and every day making this world a better place for everyone. thank you very much. >> thank you thank you very much, everybody thank you. [ applause ] >> okay. let's talk more about the president's speech and some of these off the cuff comments at questions from charles schwab, the -- >> claus. >> what did i just say >> charles. >> charles schwab. >> those comments that he was making largely teleprompter remarks, very much what we expected to hear about america first, about america being open for business. let's turn to our panel. greg ip from the wall street joushl and randall lane.

while we were listening to that the gdp came out 2.6% for the first read. it could be revised down the road it is not the number the president had been hoping to see. 3% what do you think? >> it's three months if it had been over the estimate it would have been nice headline you know, he has promised to give us 3% sustainable growth. that means over the next decade, not over the next three months we're going to forget about the number. >> although will trump forget about it that 3% number is very core. 3% obama never did 3% although of course obama did several times that number is core to his sales pitch. what we saw today was sales pitch. that's not the fuel he's looking for when he's out there. >> greg, just so i understand it, are you a believer 3% is possible at this point >> yeah, it's possible i give it 5%, 10% possibility. >> you're not -- by the way, a lot of people who have sat at this table over this week with some pretty big titles have suggested that they are actually

officially on board the president's 3%. >> so let's just distinguish between 3% for a year or two which is quite possible and -- >> when you say quite possible, you're saying it's -- what -- how are you handy capping that then >> give it 10 to 15 perfecti%. >> before you were giving it 5 to 10. >> that was over ten year period. >> you're not a believer then? >> look, we can get to 3% by using up the resources you already have. >> plugging forward. >> working your factory. getting your unemployment rate down more. you cannot get the unemployment rate below zero and that is what will happen without productivity or labor force growth. that is why 3% over ten years is hard. we're going to talk more about gdp in the next block. let's talk more about what the president actually said when it comes to trade much of what we anticipated, america is open for business, they do want to do trade

agreements, bilateral and in some cases with a larger group of countries like the tpp. this might have been the biggest bite we support free trade but it needs to be fair and reciprocal. we will no longer turn a blind eye to intellectual property thefts what does that signal? >> he talks about regulation a couple of weeks ago he was talking about someone is going to tax us at 50%, we're going to tax them at 50% or tariff them that's trouble that's -- those are taxes. >> that's reciprocal >> that's reciprocal, but they're taxes. higher taxes on both sides. >> the consumer? >> the consumer. you don't get 3% by getting the tariff. >> becky, can i make a point here when he talks about intellectual property theft, state owned enterprise and there's only one country that fits that description. >> china. >> that's china.

when you go around the forum here, there's a cognitive disso he dense why are you hitting us as well. >> you could say when it comes to state subsidies that could point to dan which is the battle they're in with bomb bardier. >> this week there's virtually no one here from china last year davos was the year of china. it was the year of xi and they have disappeared do you think that is a function of the president coming? do you think that is -- what is that about >> you have to plan something like that and trump wasn't supposed to come, they didn't know he was coming so it looks like maybe like a recording artist, i mean, you hit it hard and then you come back for a year there was no planning. there was no pavilions almost every other country is here. >> working on a new album. >> you do the big concert tour and go away to the studio and come back a couple years later. >> a big primadonna thing.

>> they were saying hard rock. i don't want to say where we're staying. >> never mind. >> everything is rock. right? >> it is >> guys, back to tpp that was kind of a big deal. the president told joe about this last night, that he'd be open to negotiating. he really reaffirmed that in this speech. he said either as individuals or as a group with these countries with the tpp, what are the odds? what could or what's the potential for seeing the united states make their way in he thinks there's a real way in. he's talked with someone involved in tpp. >> i think the odds are really, really low for one thing, tpp-11 that's now been drafted is now missing some of the things that were especially important to the united states, like really strong intellectual property protections.

he's been consistent on saying we don't like multi-lateral deals, we like bilateral deals if the first act was to kill the first multi-lateral deal, i can't understand why you would want to go back into that. >> the administration, that's key. that's not how he's wired. he didn't want a multinational corporation. he didn't have shareholders or constituents or employees. he did one-on-one deals. that's not how he's built. that's not how he's wired. >> why are you looking at me >> yeah, you spent some time with him do you think he's wired that way? >> i think there was almost a me too movement with the -- there was no one that was tpp at that point. president obama. >> you mean in the united states >> in the united states. >> was that -- >> you know, it would have been definitely out of character back then i think it makes perfect sense now. i think he will try to go back in at this point. >> i have a different question do you think he won over the

audience do you think when everybody goes home and talks about this on monday wherever they are in the world, not just in the u.s., more importantly in the u.s. and elsewhere, that they say, wow, he just sold us? is there a a possibility that he gets on twitter and the narrative changes? >> i definitely think he outperformed expectations. that was pretty thunderous applause at the end. let's face it, this is the globalist gathering ground people here are very like anxious about the whole tone and agenda of this president he came here he didn't talk about, you know, ripping up trade agreements or tariffs, he talked about restoring integrity to the system for people who play by the rules. he talked about like all his new friends. he talked about shared future. he hit all of the right notes f for this kind of audience. i think he comes away, you know, i think people are very happy. i think he'll be happy

return to the key point, there was no substance here. this is a week when the united states just imposed these big safeguard tariffs on china for solar panels and washing machines that speaks volumes more than any numbers. >> the substance was that he came here at all that was the substance remember last year he was inaugurated during davos and it was like a funeral here. everybody here remembers that. he comes here and this is trump at his best, which is he's doing a pitch. he's a deal guy and he knows how to pitch and he was pitching america and he stuck to script even during q&a where he could have a tendency to go off the rail, he stuck to script he knows how to do this. he was selling product america and he was on message. the expectations were low and by coming here he made a statement. >> maybe the game was over before it began. >> as long as he didn't blow it. >> none of the potential protests showing up inside for this >> right i don't see where the negative

headline is. that's a win for him >> wow >> read the teleprompter. >> folks, we want to thank you very much, both greg and -- >> mnuchin coming up. >> we're going to kick you off the set because steve mnuchin is going to sit with us. >> when we come back we have treasury secretary steven mnuchin who will be joining us live right here on the set to talk about his reaction to president trump and, frankly, the reaction in the room as well we will be right back. >> nice way to wrap things up. day. ns over the years, paul and i have met regularly with our ameriprise advisor. we plan for everything from retirement to college savings. giving us the ability to add on for an important member of our family. welcome home mom. with the right financial advisor, life can be brilliant.

they're not investing in commodities or fixed income. what people areally putting their money into is what they hope to get out of life. but helping them get there requires a real refusal to settle for average. because when you approach investing with a tireless desire to beat the status quo, something wonderful can happen. those people might just get what they wanted out of life. or maybe even more.

building a smarter grid, investing in new technologies, energy is changing fast and we're changing with it. that's aep's road to the future. and the international brotherhood of electrical workers helped make that happen. the ibew's outstanding union professionals have the skills and training to get the job done right. that's good for our customers and for our bottom line. ibew members are our power professionals. they should be yours as well.

welcome back to "squawk box. we heard from president trump. let's bring in his treasury secretary, steven mnuchin. mr. secretary, this is great this is like a book end. >> thank you it's great to be here. it's great to have the president here for his speech and the end of a great week. >> we've got , you know, a few things to talk about in generalities one of the things that was interesting when i spoke to the president was interesting about trade and tpp. we've been kicking this back and forth with skeptics and people that think we're on to something. do you have any insight what the president is thinking about? is multi-lalt bateral back is tpp something he would pursue seriously? >> i think the president has been clear on his trade agenda what he wants to do is have free and fair and open and reciprocal

trade. he likes using the word reciprocal because it's very clear. basically we have the same terms. we spoke to the president earlier this week and we talked about the tpp and he said, look, if i can get a good deal, the right deal, i'll go into tpp, but it would have to be the right deal he would fundamentally rather negotiate bilateral. >> because he's predisposed to bilateral approach, is it even possible if you were handy capping this as a betting man, what would you do if you were trading this >> i don't think we need to handicap this because i think the message is very clear in that we want to have trade i think people have interpreted this, we have trade actions and we will have trade actions because we have to defend against unfair trade, but i think in both the speech and what he said in the interview, he's been very clear his objective is he wants to have good deals for american companies and american workers, and if that means going into a multi-lateral, he'll consider it. >> i would be hesitant to ask you about the dollar again because you're probably so sick

of it. >> go ahead. i'd be upset if you didn't ask me. >> you've answered it so many times now in the last two days that you must be so good at it by now, at what your response is going to be, that it's just going to -- you don't have to think about it do you want to weigh in one last time >> i made the comment two days ago on a press gaggle in the morning. what i said was actually very even handed and consistent with what i've said before. it wasn't intended to make news, and had the newsprinted my entire transcript the first time as opposed to just taking out one little point and trying to imply that i was trying to talk down the dollar, which i wasn't doing. matter of fact, i was very clear in my open saying the dollar is the most liquid trading market in the world and where the dollar is in the short term is not of concern to us we respect that the market sets where the dollar is. matter of fact, in treasury we have a currency intervention report we actually are upset when other people intervene so the first part was dollar's

very liquid, we don't care where it is in the short term. the second part was stating a fact, that there are positives and negatives of weaker dollars, the third is consistent with what our policy has always been. a long term dollar reflects the economy and the reserve currency. >> mario draghi was very upset he came out and said this was a violation of an agreement back in october that a lot of nations, including the united states, came into. does this just tell you that you have to be super careful with everything that you say that comes out of this? >> no, i'd ask the press to print everything i say because i was very, very careful i assume mario didn't see everything i saw and he was reacting to the press on, you know, me in any way implying i was trying to move the dollar, which i absolutely wasn't. >> are you leaving the dollar? don't leave the dollar do you have a reason why it has gone down in the face of all of this great economic news >> again, the dollar reflects a lot of things. obviously part of the issue is

where our interest rates are, where other people's interest rates are. the fed sets our interest rates independently. i'm goin i want you to react to the gde number it is not what the president wa wanted, what do you think? i think we are comfortable of what i have been saying is that our objective is sustained 3% gdp over the long-term we are not concerned of any one quarter which could be revised up or down >> i would say relative to where everybody else was talking 2.1 or 2.2 i think people now expect we are getting to 3% gdp. >> this tax reform package created so much optimism in dallas among global leaders. you are hearing for the first time other countries say maybe i need to reform our own tax plan.

with some says i need to do it quickly before foreign countries decide to invest too much money in the united states, what do you think of that? >> we could not be more pleased with the way the tax programs have come out. 2.5 million americans are getting special bonuses and we have hundreds of billions of dollars in commitment. my conversations with other finance ministers, we had a consistent message that nobody wants to raice to the bottom we are trying to fix a broken system and go to a territorial system and have a competitive tax rate >> do you worry of a race to the bottom can you imagine certain countries in europe, for example, taken the kind of sts f steps we took. >> i would encourage european

country have competitive tax rate our issue have been around tax havens and getting rid of the international tax system is a lot less of an issue like that >> secretary steven mnuchin, lets talk about individual taxes, there is been states doing things allowing citizens to skate around the tax that's imposed. you said the idea would then get written office ridiculous. the irs came out with some guidance that suggested the same the irs was softer of the idea allowing states to put more in terms of payroll taxes and taking thtak taking that off individuals and the company can still write ait off. >> we are coordinated between the office of tax policy and treasury and the irs, we'll look

at things as they come out look, i understand the issue of new york and california, i have lived in both places taxes are too high there what i would tell those states is they should figure out how good they can make their tax systems more competitive one of the things we did do by dropping the top rate a little bit, we offset some of the issues of eliminations of state deductions >> anybody trying to get around it, would they be facing audits? >> from a state's standpoint, the irs have the ability to interpret intent to the extent the state trying to do fundamentally getting around the tax law, that we can take action on the state >> let me just ask you, when you go back, you are going to stay treasury secretary for a long time, what are you tackling? >> the first thing i would say that now that we got the tax

reform passed, we have a major implementation with the irs. this touches everything we do from forums and customer service and technology the next six months i am working closely with the irs on implementations and focus on sanctions. we'll continue to focus on sanctions such as north korea or iran >> ray dalia sat where you sat and he worries that we'll be creating a bubble. maybe things are running too high and all of these measures would have a great stimulus effect but he says he thinks maybe as we get closer to 2020, it gets complicated quickly. do you agree with him? >> it would be like the same as the dollars. >> he's also talking about the

economy. >> i do think fundamentally this is a game changer for u.s. businesses, you will see massive investments coming back to the u.s. the president says we were with many ceos last night, as soon as the tax plan is changed, they're moving operation to the u.s. to build things for the u.s. markets which makes them efficient to u.s. workers. i think for the foreseeable future, we'll have a strong economy. >> you write the speech? >> i did not write the speech. >> i looked at it and made a few comments >> i thought it is full thrown and sales pitch for the united states going business there. that was the point, right? >> the president is the best salesperson as he said for american workers and american companies and we love having him here >> can you tell us how you all decided to do this, take us in the room to bring this type of group together takes a lot of coordination and it is a big decision >> well, i will tell you the

decision early on for me to leave the economic delegation was made early on. although we did not denounce that until later, that's been in the plans all along. the president called an audible, he made that decision himself. he called us up and said i decided i am going to come we moved an awful a lot of things to put this in play >> do you think he's happy he made the decision to come. >> oh, he's happy. i heard so many people here that they appreciate it i can tell you from the beginning and late at night, i was programmed every 15-minute and i met with 15 different finance directors and ceos and other people it is a great use of time for our whole gdelegation >> what do you think led to it though some people said president xi jinping being here and others

say like macron and others talked to him. do you know? >> i had nothing to do with president xi, the president spoke to a few people and i am not going to say who as i said, i could not be happier. >> will he be back >> will i be back? >> i know you will be back >> i am going to leave you guys guessing on that one, i don't know >> we should keep the government open in the next two it is happening again. >> i agree with you 100% >> is it going to stay open? >> right, my limit is coming up. >> the president, you know, people don't try to take things personally but i think chschume feels like maybe the president got the best of him, i think that makes it tougher to negotiate. >> i don't think this is about anybody getting the best of anybody, i think hopefully the

democrats realize how important it is to keep the government open >> are they going to fund wall >> i think they put an offer on the table to fund the wall and looks like there is an immigration deal in the working and i am cautiously optimistic >> it is early on in the changes of the tax levaw looking less tn a month, are they above or below of what you have seen? >> our expectation in the tax plan was designed that the revenues will go down slightly in the short term because with automatic expensing, that incense people to put a lot of capital to work but also reduces our tax revenues in the short term you cannot look at this year's revenues as reflect. >> what are your expectations, down slightly by how much? >> i am not going to comment on that now >> directionally they're going to be down >> you know the way of hollywood

well >> i do. >> you know about agencies and you know what you did to us. we cannot write off our agencies anymore. did you realize that because you worked out there and you looked at ndro-- >> i am not going to give you tax advise >> we have the lowest rate since the 1930s. >> you need to become a loan out corporation. >> you need to do my taxes, andrew >> go hire people and create a small business >> i want to come back to trade one moment which is this nafta, we heard that when the president spoke to some of the american ceos last night, maybe it was joking back and forth and talked a little bit about, i like to rip up nafta and other people on my team to negotiate on nafta, we'll see who's going to win >> the president has been clear

since the campaign, he wants a better deal. his intent is never rip it up. his intent is re-negotiate it. the president has said the best way to negotiate a deal is rip it up and start over we are an active discussion and we'll see how it turns out >> thank you, sir. >> good to see you >> thank you >> okay, mr. secretary, make sure to join us, we'll be back on monday in new york. "squawk on the street" begins right now. thank you to the whole team here in davos i am here to deliver a simple message that's never been better to hire and grow in the unitte