now. >> good morning. we are live from the world economic forum in davos, switzerland. i'm becky quick along with joe kernen joe just sat down with president trump for an interview we want to bring that to you right away netflix shares are rising after the streaming giant added more overseas subscribers growth fell short of expectations as netflix was hurt by competition take a look at shares of ibm also getting a boost after the tech giant beat the street on the top and bottom lines normally, revenue which rose in the fourth quarter helped by its cloud computing business the first revenue increase in six quarters ceo ginni rometty will join us

this morning zeer xerox looks to advance its deal and has acquired a small stake in the pc market rejecting the hp offer i did ask the president about a wide range of topic withes all the way from the fear of the coronavirus, to elon musk and management of tesla. here is our conversation >> thank you for joining us in davos. we've done this before a couple of years ago before we get started, we'll talk about the economy and other things the cdc has identified a case of coronavirus in washington state. if you remember, sars affected

gdp. have you been briefed by the cdc? >> i have. >> are there words of a pandemic >> no. we have it under control it is one person coming in from china. we have it under control it is going to be just fine. >> president xi, there is talk in china that the transparency isn't what it is going to be do you trust we know everything we need to know from china is. >> i do. i do we just signed the biggest deal ever made. it was a very interesting period of time. we got it done i do i think the relationship is very good >> let's talk about davos. you were here two years ago. even the new york times, your favorite, acknowledges that the davos elite are accepting that

your policies are working and u.s. policies are the envy of the world. press coverage here is favorable. back at home, it is all impeachment, all the time. did you watch it >> i did and i had a busy day, as you know we had business meetings with other countries but i did get to see some of it it's a hoax. total hoax i think the team was really good the facts are all on our side. the republican party has never been this unified. 195-0. >> you think there will be witnesses, mr. president >> i don't know. i think if everybody tells the truth, it is perfect all you have to do is read the transcript if you take a look at the transcript and it is really two

transcripts. i had a first call, which was perfect. i had a second call, which was perfect. they never mention the calls all they have to do is read the transcripts. the other thing is, speak to the president of ukraine he's been great. they don't even know what p they are doing. it's crazy they got the money president obama gave them nothing. he gave them pillows and sheets. i gave them tank busters >> we had a four-hour show yesterday, i don't think the i word came up >> you asked me the question i have to answer it. >> i know. i needed to ask it that's why i did i want to talk about what we are seeing over here we came davos expecting to hear about this esg

in four hours yesterday with the ceo of bank of america, schwarzman all they wanted to talk about is the strength of the economy. >> i perfect eappreciate that v. we do have an incredible economy. people forget about regulation i think it might have been more important than tax cuts. we have a consumer in the united states that has never done so well i think we are really posed i think we have tremendous potential. >> the markets are up 50%.

november 9 is the date you need to do it, not the inauguration i need to ask you. cor correlating to the move on the stock market >> the fed raised rates too fast they didn't drop it fast enough. that was a lot of increases and increase i think it is really the opposite of what they are saying now they've dropped it but it is very late. they are actually getting paid they make a loan and end up getting paid >> are you hoping that it comes to that in the united states that we get to negative rates? >> a lot of people don't think

it is a great thing and it doesn't work well. >> they don't know yet, it is so new. i want to know who are the people that buy. they invest in germany and end up with less money i have to find these people. but no, germany -- we are the most primed in the world the leader in the world, the dollar is very strong. but we are paying higher interest than other countries because of the fed if we were paying less, i would do it. i'd payoff a lot of debt >> is chairman powell out of the dog house? >> i don't want to talk dog house. i don't think he should have raised the rates >> should they go down >> i do. the dollar is very, very strong. we have a very strong dollar that sounds good and it is good but it is bad in terms of

manufacturing. i've created almost 700,000 manufacturing jobs the past administration said manufacturing is dead. tell me about that we have had a tremendous success but it is harder with a strong dollar i want this dollar to be strong, p powerful, great. if you lower the interest rates, so many good things will happen. i want to payoff debt. we are posed for tremendous growth >> let me ask you about that we came close to 3% last year. this year lower, we've had the china trade war -- >> we had many things. >> we did. do you attribute the gdp at 2% to the fed being tight for too long do you acknowledge that some of the tariffs or uncertainty engendered by the china trade war affected gdp

>> it will be higher than 2% a lot of people are thrilled with that. me, i'm not. the fed was not good that was a big blip that should not have taken place it is one of those things but we had boeing, the big strike with general motors we had things happen that are very unusual to happen including some unbelievably powerful storms with all of that, had we not done the big raise on interest i think we could have been close to 4, 5,000 to 10,000 more points on the dow. that was a killer. they admit to it i was right. i don't want to be right but i was right. >> some say the uncertainty for ceo's in dealing with china and making plans for the future, may have hurt capital spending do you expect that to come back with the phase one agreement and let's talk about phase two

>> i think the big thing about getting to deal with china it is a big deal for us. important for china. their supply chains were breaking it has been tough for them the best thing that is happening is that we have two countries that like each other again it was getting nasty they had taken advantage of our country for 30 years i was not going to let it happen we had taken in billions and billions the tariffs are still on i have that negotiating chip yes, we are starting phase two very soon. the relationship we have now with china is probably better than it has ever been. the relationship i have with president xi president for life it is not bad. but the relationship i have with president xi is extraordinary considering he's for china, i'm for us the deal is a phenomenal deal.

it could go to $250 billion and higher than that >> the enforcement and watching and the tariffs stayed on. >> you i was watching you you were really surprised of the deal >> i read the same newspaper i thought it would just be agbots >> in the end, it's probably $250 billion it could go higher than that not just talking about the usmca, which we just got passed. when we go back, i'll be signing it >> the uk next >> yes boris and i are friends and he wants to make a deal >> that could start soon >> yes we have already started

negotiating. we've started with europe too. europe has been very, very tough to deal with they've taken advantage of our country, the europthe european n i've started with them i wanted to wait to finish with china. i've always been transparent i met with the leader. i said if we don't get something, i'll have to take action the action will be very high tariffs on their cars and other things that come into our country. now saying that, i don't want your audience to get nervous they are going to make a deal. they have to they don't have a choice we've had a tremendous deficit for many years over $150 billion with europe. jean-claude is a friend of mine but he is impossible to deal with i think it will be better with

bo boris too. i didn't want to play my cards i wanted to do china first, mexico and canada first now they are all done. i had a very good conversation i would be very surprised if i had to implement the tariffs >> we had one of your guys on yesterday. lawerence kudlow we asked him about deficits. we acknowledged you want to rebuild the defense. in the second term, will you look at -- do you need to raise taxes or cut spending? >> we'll probably lower taxes. if you want to know the truth. we've cut taxes in half and taken in more revenue. nobody can believe it. we take in more revenue with the tax cut.

you were paying 41% and brought it down to 21. >> so that will be a priority? >> absolutely. i'd like to see the interest rate lowered because i'd like to refinance and payoff the debt. i made a $40 billion deal with japan, a massive deal with south korea. nobody nose what the number is you add mexico, china, canada, all of these other countries we have about 10 countries we are dealing with these deals were horrible. they just came in and took advantage of our country we have massive potential and growth you'll see that toward the middle to the end of the next year >> i'm going to go through like 10 things. if there is a second term, do you have a preference for an opponent >> biden, bloomberg and more

>> michael was a friend of mine. he went a little off you should see some of the nice things he had to deal with hillary clinton. he w he was going to become secretary of state it wasn't going to happen. they were playing with michael it is too bad. he's paying a fortune making broadcasters wealthy >> i don't know if joe is going to limp across the line. i watch him speak. he can't put together a sentence it could by him and it could be crazy bernie whoever it is, i'm ready >> i just want to ask you some is rapid fire questions. so boeing, yesterday the news. it hit the dow the new is the summer perhaps before -- >> yes very disappointing company

this is one of the great companies of the world as of a year ago and then things happened i am so disappointed so boeing, a big, big disappoint to me. >> apple >> i am. i like them a lot. i think we should do some encryption and start finding some of the bad people out there. i've helped them a lot i've given them waivers. it made a big difference they compete against samsung that would be the number one competitor it is not fair, we have a trade deal, so they would get a no waiver they would have to pay tariffs i want them to help us a little bit. apple has to help us

i'm very strong on it. they have the keys to so many criminals and criminal minds they can do things when they had the problem in florida it was horrible. >> we don't need a backdoor way in to get to the wrong hands either >> no, no. i understand both sides of the argument when you are dealing with drug lords and terrorists and murderers, i don't care, we have to find out what's going on. >> facebook. >> they told me i'm number one in the world in facebook he set down and said congratulations. >> should he stick to his guns with the political ban >> he'll do what he has to do. i heard he was going to run for president.

that wouldn't be too frightening, i don't think he does have that monster behind him. he said that you are number one. i saids that number two is modi from india. he has 1.5 billion i have 3.2 k by the way, we are going there soon >> tesla now worth more than gm and ford comments on that >> you've got to give him credit he also does rockets i said i've never seen that before i was worried about him because he's one of our great geniuses we have to protect our geniuses. these people that came up with originally the light bulb, the wheel and all of these things. he's one of our very smart

people we want to cherish those people. he's done a very good job. shocking how well it has come so fast you go back a year and they were talking about the end of the company and now they are talking about these great things he's going to be building a very big plant in the united states he has to. we helped him. he has to help us. >> one last question >> go ahead. >> entitlements ever be on your plate? >> at some point, they will be we have had tremendous growth. toward the end of the year, the growth will be incredible. at the right time, we'll take a look at that >> are you willing to do things you didn't consider in the past with medicare? >> we never had assets like we had. we never had the consumer taking in over $10,000 a family we never had the kind of things

we had our country is the hottest in the world, the hottest economy in the world best unemployment ever african-american, asian-american hispanics best they've ever done black, best they've ever done. unemployment and employment, there is a difference. unemployment and employment numbers for african-americans are the best we've ever had. we just came up with a chart african-american youth has the highest by far unemployment, the best unemployment and employment numbers. right now, we have 160 million people working in the united states we've never been close to that >> safe travels. >> thank you appreciate it. >> thank you

doesn't sleep, this man. i don't think. he was at dinner last night. he had lunch with ce o's yesterday. >> and break fast this morning >> your interview was before the breakfast. >> there are tweets throughout the night. i'm not sure >> he does have someone that help him with social media >> i feel like i know which tweets are his >> i'm not sure he gets a lot of sleep a lot of times >> you covered a lot of ground with him i tried to keep track of the topics let's get focused on the business issues. >> i got a lot done in seven minutes. >> a little longer than seven. >> it was 22 >> very interesting where you talked to him about chairman powell is he out of the dog house yet

he keeps circling back to that >> it was cute he didn't like the word dog house. >> that and the interesting point about cap x spending it is kind of what everybody is waiting to see at this point too. >> did you hear that i was listening to you and thought that was only going to be ag buys i got that from you. then i got in trouble for it >> the focus at the time was agbots and i don't think i was responsible. >> no. >> you did on tuesday. we talked about that article >> here is the key though. what happens will they stick to the plan with what they've said, the president said he would be very surprised

if he implemented his tariffs. will the chinese be true to their word >> i want to get deeper into that i was 20 minutes in. entitlements in the past, you've ruled outdoing anything to medicare. no it would be easy why i to do those kind of things >> when you asked him about cutting entitlement or spending and he spoke about lowering taxes. he said if you did have a second term i was watching that going, oh, god, i see the twitter coming in on me. if he did, i'm not sure what you would do if you don't raise taxes in terms of spending i don't know where you cut spending to get it below $1 trillion >> a lot in that 20 minutes.

when we come back, veteran financial journalist and fed watcher will join us with his reaction to joe's interview with president trump. a lot of businesses he talked about boeing, facebook, apple. later, we'll kick off a parade of ceo news makers. stay tuned you are watching a very special edition of "squawk box." we are live from davos, switzerland. more of joe's interview with president trump coming up. ♪

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had we not done the big raise on interest, i think we would have been close to 4, 5,000 to 10,000 more on the dow. that was just a killer when they raised the rate. they admit to it i was right. i don't want to be right but i was right. >> that's -- yeah. we know that that was president trump speaking with me early this morning. we are joined by greg ipp. what stands out to you is the comments about european trade

and conflict >> exactly he said i didn't want to take on china and europe at the same time china is out of the way. he's cleared the deck and being very confrontational with the europeans. watch the rhetoric and the threats between the eu and u.s the trade war with the european union is completely different animal we export three times as much to europe than china. the europeans are add mat that retaliate dollar for dollar. >> he picked sides long ago in the brexit eu battle once again, you throw in some comments to boris johnson. maybe it is not surprising to

say it looks the other way >> what we have learned, talking about a new deal and getting a new deal very different things look how many years it took us to get this far on nafta >> in a position position, needing to have different trade deals? >> exactly u.s. is in the driver's seat the president is very conscious about not having a bad economy going into the election. if we are in a trade war with one of our trading partners between canada and mexico. we were down to the wire we can look at that and think we

might see something again. it came down to minutes before the deadline both sides really wanted it. they retaliated. if do you not take tariffs on canada steel, you do not get the deal they arebasically sir coup circumscribing >> let's look at what would happen with president macron reaching some sort of deal and recognize that they want to start ramping things up. should we read that? >> it is all about leverage. trump correctly said we

threatened them with very steep tariffs. the fact of the matter is the digital tax is critical to what the french wanted to do. it was symbolic. if the president wants access to the european markets, that is symbolic it is not going to trigger an easy cave in >> he didn't want to engage on powell >> i heard he said he didn't want to talk about dog houses. maybe that is an improvement and he's in the servient's quarters and if it stays good, maybe he'll move to the in-law's sweet. if -- suite >> if it stays that way, it will

be relatively common >> if the president wins another term and powell's term is up, is it clear to you what happens >> i think it is very unlikely he reappoints powell the question is who would take his place. >> kevin warsh was at the white house. >> he'll be in the running ought to be acceptable to the president. >> we have a better chance of jeff sessions being ag than powell being reappointed but i don't know anything. >> his term is six-year term >> four-year term. >> then there would be a big question of who is that next person >> two tests they have to pass the trump test and the senate test >> and the market test

>> larry kudlow's favorite she's has docks on the monetary policy for the gold standard that is going to be an issue for some republican senators possibly, they could let it go and apply for the tighter screen >> thank you good to see you. when we come back, bp ceo bob dudly will join us we'll talk about oil prices, the global economy and much more >> announcer: still to come on "squawk box," the ceo of cenepede on rising costs ♪

some things are too important to do yourself. get customized security with 24/7 monitoring from xfinity home. awarded the best professionally installed system by cnet. simple. easy. awesome. call, click or visit a store today. . welcome back we have more from our big interview with joe sitting down with the president >> we've had a tree moemendous deficit. over $150 trillion with europe jean-claude was a friend of mine he was impossible to deal with for boris johnson too, it will be hard to make a deal now i didn't play my cards i wanted to do china

mexico and canada first. now we are done and we are going to do europe i had a very good conversation i would be very surprised if i had to implement the tariffs >> joining us now, the bp ceo. you heard what the president had to say we were talking with greg ipp about how china and the united states seemed to have some of their issues resolved. what do you think about that coming from europe >> it gives europe some time like he said, the focus was on china and north america before that it sounds like the door is wide open to the uk to talk to britain. yesterday, the european president said all efforts in britain, the eu to get a deal done by the end of the year. so this seems to be moving fast. >> let's talk about your tenure

at bp and your time. you only have a couple of weeks left before you are stepping down it has been 10 years at the beginning, you had to deal with the deep-water drilling deal and then you had to deal with the historic drop of oil what do you think caused those issues and do you think those same issues will be there in the next decade? >> the fact that the u.s. is now the largest oil producer has created a dampening. it is quite a game changer to be such a big energy producer i don't think that will happen again. there will always be volatility. i think opec, opec plus plays a little as well we are in the

beginning well into accelerating as well. the u.s. is in position for all of those going forward >> what you made of larry fink's letter last week >> received his letter this energy transition is moving really fast. any energy company that doesn't pay attention, start moving really fast. many of us are will be in danger of being completely off with society. got to remain economic spoke with larry yesterday came to the ibc meetings here. explained it it is not a get out of hydrocarbons he made that clear >> that's ludicrous. >> the world needs all forms of

energy less less emissions but all forms of energy >> you saw what microsoft did. >> things like carbon capture storage do require deep pockets. energy, oil and gas are all working hard on this i hope companies like microsoft, the tech companies join forces on this so we can join technologies and invest together >> that is a very politic way of putting things i think you've been very outspoken about your frustration about climate change and esg people and the reality of fossil fuels will be here >> that's right. we'll have a third more people on this planet >> you know who will take the brunt of that is the developing

world. >> all these great things we have, air-conditioning, heat, food, water, shelter you can't be outspoken i'm not anymore. they use religious terms like denier >> where are you, really >> it is such a simplified world. the backlash is really strong. >> from 17-year-old drop outs. >> the northern european view, east coast, west coast view is very different from india and africa there are different views on this some people don't have electricity to keep the refrige rater running for medicine >> no clean water. got to walk four hour for clean water.

no pipes, no toilets >> very fascinating. most people cook with wood, could ycow dung and others. you put petroleum into homes, it cuts five hours off their cooking time >> growth and money, economic sustainability is important as well >> they don't talk about davos nuclear energy, which they really should. i know it is controversial it is the fix. the fix that is available right now. >> what are the chances that aoc and bernie are going to be

right? are they right about anything else >> i think they have a completely unrealistic idea of the energy world >> they are not the scientists, right? >> you look into the science a lot, do you? >> i read the science. >> do you have a single planet change i don't have a favorite. >> michael mann. >> we must reduce carbon we must. >> the guy that runs the company saying we must reduce it do you genuinely believe that? >> yes, i do >> because why >> carbon dioxide. two centuries tell us, if you don't put a price on something, you won't change people's

behavior >> but why would you >>.04% they are at 100 times that >> thank you >> paul hudson and drug innovation and growing fears of the coronavirus. did you know the common cold is a coronavirus. listen to us live on the cnbc app. more coming up

coming up, live on "squawk box" in davos, switzerland, we have a lot to discuss with the ceo of sanofi. he'll join us live with the latest watching "squawk box" live from switzerland. what a beautiful shot that is. we are back in a moment.

the first confirmed u.s. case of coronavirus rattled sectors. here is what we know about the outbreak it originated in china usually transmitted by bats. first u.s. case was reported in seattle. airports are stepping up screening of passengers.

i spoke to the president and asked if they are worried at this point >> no. not at all we have it totally under control. it is one person coming in from china. we have it under control it is going to be just fine. >> eunice has been doing some work and tweeting. she said the world health organization is convening a meeting today to inform the director general about whether they need to evoke a public health emergency as an international concern. they don't know yet. i don't know what you know, paul hudson, ceo of sanofi. coronavirus is a form of sars. it can affect economies greatly in terms of gdp contracting and travel and everything else

>> that's right. i'm not an expert in this area i work for a company with a high amount of specialty with vaccines we work to get ahead of these things it isn't always. it can travel quickly. we work on influenza we sprint to get enough doses to make sure everybody is covering every year >> eunice is pointing out that the conversation in china is to make sure they are totally transparent. sometimes when it is 440 cases and really, it is a thousand at this point, human-to-human transfer looks pretty rare what is amazing, paul, is the next five years and what the drug industry will look like the forefront of that is in

innovation it is not just in developing new they a they are p manufacturing. >> one of the best reasons to take this role at this time is the digital disrupting what does that mean? supporting patients. we opened up a factory in massachusetts. the joy of it is such progress is being made, it is almost completely efficient we take the data points every day and manage waist water it is all because of the tech

disruption >> there is a lot of hope there about the new development of drugs that can go after maybe rare diseases and other things how is the fda in supporting things and allowing these new techniques to produce medications and new drugs more quickly? >> if you reference the five years, it is an incredible moment in general. whether gene therapies, gene editing. in rare diseases, we try to help with really danii really dab ilg disorders. we are making breakthroughs in

hemo fe hemophelia and breast cancers. >> you've gotten out of the antibiotic bays for the most part it assumes like a huge question mark of how to correctly incentivize forgetting to the next place what do you think is the answer? is there a way that you've thought about to make it viable for you? >> it is a complicated question. more importantly, we have to line up the ensincentives we have to make a vaccine to stop someone from getting infected six, seven years in advance. we have to stockpile that. and we do. we are asked to get much lower in terms of our prices

we can do more but overall as an organization, we are committed to preventing diseases with our vaccines when we come back, we have more of joe's news making interview with president trump waste that weighs you down.a ube it also helps lower cholesterol and slows sugar absorption, promoting healthy blood sugar levels. so, start feeling lighter and more energetic by taking metamucil every day. take the metamucil two-week challenge, lighten up. just take metamucil every day for two weeks. available at your local retailer.

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>> announcer: global business leaders are here in davos. this hour, the ceo of uber, its growth, path t