Skip to main content

tv   Stossel  FOX Business  December 16, 2016 9:00pm-10:01pm EST

9:00 pm
it's time. i am asking congress to support the construction of new roads and bridges airports pummels and railways across the country and we will put people back to work in the process. it's going to be our people. it's time to help get americans off of welfare and back into the labor market, rebuilding this country with american hands by a american workers american workers. my administration will follow two simple rules. by american and higher american. [applause] at the center of this agenda is fixing are absolutely terrible trade deals. they are so bad that i have studied them. i am one of these people, i like reading figures can you believe it? you don't want to read them. they are so bad.
9:01 pm
i can tell you how bad our day. how bad are they? like, really bad we are going to make them really get and we have the great people to do it. the media was saying people are going to be negotiating your trade is a very rich. i said is not what we want? and they said, why is it that the people protecting our border are generals? that's what we want, we want generals, we want generals. i don't need an nba at the border and i don't need a general negotiating our trade deals. now we have general kelley kelly. you know general kelly. he is going to be watching over our borders. he's amazing, incredible and as you know we have general mad dog mattis, secretary of defense. we are not playing games, folks. we are not playing games. no more games, do we agree?
9:02 pm
we have been playing games for 20 years or longer than that. we are going to drain the swamp, that's right. [chanting] we are going to have strong borders, folks and we are going to make great trade deals. you are going to be proud of your country again, you watch. america is now running at nearly 850 trillion-dollar tradedefici. our country has lost one third of its factory jobs since nafta. we have lost 70,000 factories since china opened and joined the world trade organization. 70,000 factories we have lost.
9:03 pm
can you believe that? is hard to believe. it's the greatest jobs that in the history of the world but we are going to get them back. we are going to turn it all around and we are going to turn it around faster than you think. we are not going to be taking advantage of why other countries anymore. [applause] our goal is to bring back that wonderful phrase. remember some of you that are a little bit older, made in the usa. remember that? made in the usa. we used to have cars that were made in the usa. we don't have that anymore. we are going to make stuff made in the usa. what do you like better, made in the usa or made in america? hold it, hold it.
9:04 pm
[chanting] usa, usa, usa. read the? who likes made in america? [applause] who likes made in the usa? [applause] i think so. okay, wait. one more because this is like doing a free poll. you know a lot of people would spend a million dollars for that and these are the people that lead our country. they would go out and they would to a poll that will cost a million dollars. they might not be as accurate but here's another one. "time" magazine and the financial times, a big deal, just gave a person of the year. they should give it to you because this isn't me.
9:05 pm
although i have been a very good messenger, do we agree? so are you ready? in the past it was called man of the year. now it's called person of the year so here is the question. what do you like better, ready? do you like person of the year? do you like man of the year? [applause] that the women too. they want to be politically correct. i have heard this for so many years man of the year and then it comes out person of the year. they have to be politically correct but i had an idea. no, no i had an idea. what do you do if it's a woman, right? if it's a man, if it's a man you go man of the year. if it's a woman like this
9:06 pm
incredible woman down here, if it's a woman maybe you go woman of the year or person of the year, right? should we speak to the people at "time" magazine and say we want it again next year but we want maybe man of the year next year. it's a great honor, it's great to be there. we have to justify it. we will draw from the transpacific partnership. we are going to totally renegotiate the worst trade deal ever made anywhere in the world at any time, nafta. we are going to stand up to foreign cheating and fight for every last american job and if a company wants to fire their workers and leave to another country and ship their products back, there will be consequences.
9:07 pm
it's not going to happen anymore. they fire their workers, they close their plants, they move their factories to mexico or someplace else, they sell the product back in with no taxes in our country so we end up with unemployment and loss. they end up with everything, right, everything. it's just not going to happen anymore. from now on we will inform them that they are going to pay a 35% tax, 35% or something substantial. and you know what's going to happen? they are not going to leave. it's very simple. why did the politicians do this 15 or 20 years ago? why didn't they do it? for two reasons, two reasons. do you know the two reasons? either they are or they get paid off by campaign contributions. that's all. very simple but to be a rich
9:08 pm
nation we must also be a safe nation. the murder rate has experienced its largest increase in the united states in 45 years. the press doesn't tell you that. the murder rate in orlando double last year. we are going to support the incredible men and women of law enforcement. apopka and we are going to bring this terrible crime wave to a rapid and. [chanting] usa, usa, usa. one of the greatest public safety threats remains open borders. it's horrible what's going on with the borders and the drugs
9:09 pm
pouring into our country and poisoning our youth, pouring in like water it pours in. i have a message for the drug leaders, the gang members and the criminal cartels terrorizing our cities, our locations, our citizens. your days are numbered. we are getting you out and we are getting you out fast. [applause] we will build a great wall and we will stop illegal immigration once and for all. [applause] [chanting] build that wall. build that wall. >> we are going to build that wall. the border patrol agents endorsed me in i.c.e. adores me. i said tell me about the wall.
9:10 pm
they said we needed mr. trump, we need it. they know better than anyone. we are going to build a wall. it's going to have big beautiful doors in it because we are going to have people coming into our country but they are going to come into our country illegally. [applause] we will also work to keep our country safe from terrorists. the attack on pulse nightclub in atlanta was the worst mass shooting in american history and the deadliest assault on the lgbtq community in american history. we have seen islamic terror attacks from paris to belgium to san bernardino, one after another again and again. we are going to stop them so let me state this as clearly as i can. i'm going to keep radical islamic terrorists the hell out
9:11 pm
of our country. [applause] that includes suspending immigration firm reaches where it cannot be safely process or bedded and the betting is going to be a term that i'd advise and extreme betting, right? extreme betting. nothing will come before the safety and the security of the american people. it will be a crucial part of our plan as well. we are going to drain the swamp of corruption in washington d.c. and stop government officials from trading favors at your expense. we face many challenges that this is truly an exciting time to be alive. the script is not yet written. we do not know what the page will read tomorrow but for the first time in a long time what
9:12 pm
we do know is that the pages will be authored by teach-in every one of you. [applause] you the incredible american people will be in charge. your voice, your desires, your hopes, your aspirations will never again fall on deaf ears. the forgotten men and women and by the way they are not so forgotten anymore, are they? they didn't know what hit them. oh those forgotten people are not forget in -- forgotten. they are still writing stories about it. they see what happen? they came out to vote big-league, didn't they had these are great people. these are smart people, these are hard-working people. these are people that sometimes happened voted in a long time but you know what?
9:13 pm
they saw, they heard, they wanted what we are all doing and we are doing it together and they came out in these people had no clue what the hell happened. i just want to tell you thank you and you are going to be very happy with the results. thank you. you are going to be very happy. together we will raise incomes and bring jobs and wealth and opportunity to our poorest communities. we will repeal the das aster known as obamacare and create new calf care, all sorts of reforms that work for you and your family and we are going to be doing it properly. and we will not spend five billion dollars for a web site.
9:14 pm
and we will not spend $4.2 billion for an airplane so i can fly around, our right? $4.2 billion for air force one, i don't excel. we will reestablish the rule of law, defend the 2nd amendment, protect religious liberty and appoint justices to the united states supreme court who will uphold and defend the constitution of the united states. we will heal our divisions and unify our country. our country is very divided. we will bring our country back together. we will love everyone, not small ribs are big groups, we are going to love everyone in our country. when americans are unified, there is nothing we cannot do. no task is too great, no dream too large, no goal beyond our
9:15 pm
reach. my message tonight is for all americans from all parties all beliefs all races and all walks of life. whether you are african-american , hispanic american, asian-american whatever the hell you might need , we are alone americans and we are all united by one shared destiny. i'm asking everyone to join this incredible moment. i'm asking you to dream big again, dream bold, big and bold. dream big and bold and daring for your families, for yourself and your country, big and bold and daring. i'm asking you to believe in yourself and i'm asking you to believe once again in america. if we do that then altogether we
9:16 pm
will make america strong again. we will make america wealthy again. we will make america safe again and we will make america great again. thank you very much for that. thank you florida. god bless you. merry christmas, god bless you. thank you very much. incredible support. ♪ >> thank you, thank you, thank you says donald trump the president-elect. he was in orlando. six days before the election and the florida courts. the state delivering and making all the difference of course in his destiny and that of the nation because of its central importance. by the way when he says thank you and florida as he has throughout all of the states now
9:17 pm
this is the seventh state he means every word of it. with me radio talkshow host mark simone. mark, it's terrific to see the connection he establishes instantly with crowds of it doesn't matter what state, what city. it's absolutely genuine and it's all his. >> it's very generous of him. this is a guy that works all day today and he probably had team meetings. he's been working hard everyday and every night jumps on a plane goes to to meet with people and speak with people. if this were hillary clinton you would have to pay $300,000 for a ten-minute speech. this is 45 minutes and he was there to really talk to people. he loves to work paid wilma so less than where the present but the real work ethic like that? lou: it has been a very long time and he just will not be outworked by anyone. he was a work of the primaries
9:18 pm
and the general election. my world -- my word the field was his. one of the ways in which she certainly did lose is to show up every few days and he is pounding away every day. your point about his generosity here, who says thank you after an election and? that's usually received for a year per for the next election. he is doing something so smart and again so authentic and something so appreciated. he talks about safe zones in syria. he talks about arab states that will help pay for those safe zones who are right now doing very little if anything. he talks about freedom of expression to burn the american flag. you can tell he genuinely hates to see the american flag burned by demonstrators. >> the fact he said i don't like it, he said it three times which
9:19 pm
is great. he also said american workers, american products, by american entire american. >> there was a line at the end of last nights speech, he said never again will your voices fall on deaf ears and he should do that every night. little things like the boeing bill. they figured hillary clinton with the president let's market up and she will sign it. out things. that's the one he knows what things cost. he also knows value and he knows price. and the combination is powerful and in the oval office it is something to watch and it is something to watch, speaking of things that i love, going through all of the various demographic groups, whether it is african-americans, scottish americans, whoever you are, we
9:20 pm
are all americans and we are in this together and i think it is fair to say that it is one heckuva leader. sir, it's gray tabby with us. >> thank you for having me. >> a good friend and a terrific, terrific post. we thank you for being with us. we join wall street week already in progress. have a great week. ♪ ♪ >> you see what is happening with regulations which are totally out of control. right now we punish companies for doing business in america. and by the way, that is why they are leaving. we are going to reduce taxes for middle class in particular, but for companies. >> donald trump continuing his
9:21 pm
progrowth message. >> is cabinet looking like it is from the business world. so what is to come after the inauguration? joining us now is a global chief officer. so let's look at the 2017 high interest rates and high growth. is that your forecast as well? >> yes, i think it is. there is a dynamic that point you are starting to watch play out with the anticipation. people talking about fiscal and the structure and that will come. and the markets are coming in. the tax influences are significant. we have repatriation. we have lived in this world for the last two or three years and we are going to change the text field for companies. the benefit you get from borrowing is not as significant. so what happens? companies will start investing
9:22 pm
in their business. it is pretty exciting stuff. then as opposed to two years, are they going to go september, december and now you have this is a diversion across markets and quite frankly you are seeing spirits, surveys improving, personal confidence survey in proving. it translates to good higher in play turn and higher interest rates. maria: i am glad that you sent animal spirits. i did not see and will spirits from jana yellin last week. >> what is she looking at the we are not looking at. gary: it was surprising that they were a bit more pockets than expectations. but like she said. janet yellen said the biggest day of the year was september 21, the bank of japan came up with negative interest
9:23 pm
rates and allow the curve is steep and. then janet yellen came out and said that we either let the economy run hot. than you think about what she is doing now and there is uncertainty. we can be behind the markets, led inflation run a bit higher. wages are growing. when you enter a tightening cycle different than what you are using, the federal reserve is always behind the market by about six months. exactly what she articulated is that we haven't seen this yet and we could give it a bit more time. we moved from these expectations. we focus with others that are anticipating growth. that they can start accelerating the program. maria: what does rick reider think? >> i think -- listen -- it was going to be for rate hikes. we got one of them. i think you said earlier that they have moved twice to move
9:24 pm
interest rates and they are suggesting this now. i think the fed is going to be behind and i think it's two and three. if the economy picks up faster you bring this under the table again. >> he said that we are not going to see a lot of rate hikes. maria: let's get back to whether or not this is possible, what donald trump is trying to do. when we spoke with the incoming treasury secretary, he predicted three and after four and a half precent growth. and that is a difference for the federal reserve and higher interest rates. do you think that is achievable. >> there is a lot of low hanging fruit to create greater growth. the big one in terms of how you get there and basil land, small businesses will grow.
9:25 pm
now you are creating a dynamic that even with rates a bit higher you can create financial transmission and velocity. you can grow the money supply. but you need a landing mechanism. so yes, i think you can create that growth. i think you can create taxes, a bit less radiation, more velocity and this financial transmission. is it all going to come in the first quarter of the year? no way. there will be an ebb and flow of this, retail sales, we just got back, not that great. yes, it is achievable. and i think as we talked about earlier on the show's that the dynamic of having a unified government, republican or democrat, we can get the initiatives through. but we need fiscal and we are actually going to get it. gary: i have always said that foreign guys are smarter than stock price. so what do they tell you about
9:26 pm
the stock market for the last three years? >> they said that it's bullish on stocks. but, you know, i think that they are in good shape. yes, i respect the valuation argument. however, if you take corporate tax and you bring it back. anything about where we going are we going to take corporate tax is 20% or so. the earnings-per-share benefit for companies like financials health care is extraordinary. and you can run 25 or 26% growth per share. maria: out of 20% corporate tax rate. >> you can do it especially health care in places like financials and etc. it is pretty powerful. you think about companies reacting to cash flow coming in. i know that my earnings are going to be better. i can take more risk with my business and i think that there is an enthusiasm that is justified. and it's a lot but we have to see. global growth is not great. china has risks. there are risks.
9:27 pm
but i do think the enthusiasm and momentum are justified. gary: thank you for coming in today, rick reider. maria: thank you for joining us on "wall street week", we will see you next week. single macko. ♪ single macko. ♪ i love paying extra to file my state returns. i want my tax software to charge me at the last second. there is nothing i can do with an extra $50. said no one ever. file your taxes for free with credit karma tax.
9:28 pm
we catch flo, the progressive girl," at the supermarket buying cheese. scandal alert! flo likes dairy?! woman: busted! [ laughter ] right afterwards we caught her riding shotgun with a mystery man. oh, yeah! [ indistinct shouting ] is this your chauffeur? what?! no, i was just showing him how easy it is to save with snapshot from progressive. you just plug it in and it gives you a rate based on your driving. does she have insurance for being boring? [ light laughter ] laugh bigger. [ laughter ] you got it! what do you think? if you're going to wish, wish big at the lexus december to remember sales event get up to $2500 customer cash on select 2016 and 2017 models for these terms. see your lexus dealer.
9:29 pm
9:30 pm
>> this is the new "wall street week." ♪ gary: welcome to "wall street week." maria: thank you for being here tonight. the markets hitting new highs to start the week. janet yellen's rate hikes slowing things down a bit in terms of the rally. the dow jones not making it to the historical 20,000 level. regardless entering a new phase with a pro-business whitehouse and it also comes with the fed's key raising interest rates regularly. we are joined by the outgoing ceo. bob, it was a historic week
9:31 pm
because the senate raise rates again. only the second time in 10 years. what did you think about what the fed did? >> it was unsurprising. it was expected. we see the prediction. for me, that is the more important fact. gary: a year ago when they raised rates i think that they thought at that time that could be several raises in 2016. i think investors have to take that with a grain of salt. >> all predictions don't exactly come true. >> are looking at market structure and volume. i want to get your take in terms of this rally. we had a little bit of a slowdown this week. but we are talking about record high after record high after donald trump was elected. >> it was amazing to me on election night how the market quickly god to the essence of the situation.
9:32 pm
and every prediction was correct. right when the futures were indicating six or 800 points. and then they said we just elected a pro-business president to get about everything else -- would you might have different opinions on. we elected a pro-business president who is going to enact policies. the fact that the republicans maintained and increased controls for the senate and the house added to that. so right now the market is factoring in policies being passed that will be pro-business. we have to give those policies a chance to be passed. >> we are expecting earnings to get a boost of a corporate tax rate of 15%. has it begun to lose steam? >> the first question is bit ahead of itself. the deregulatory effort has not yet happened.
9:33 pm
and neither has congress sign anything. the question is what is the probability of these actions and i think that that is what is being released. and you can see and i see more business people than anybody. people feeling good and they are more aggressive in terms of his business plan. gary: one thing that bob greifeld pointed out, it was about 11:30 a.m. or so. when they were showing 800, maria said that it was a tremendous buying opportunity. maria: thank you. i thought as a growth plan, and the growth suite. >> we will get through. gary: i have to ask you about this number. only because it reminds me of something that i know that you are familiar with at 5000 in
9:34 pm
1999. so professional investors, these numbers don't mean much. but we get concerned that there is going to be a type of thing associated with this that is going to create short-term fluctuations are not good for the long-term investor. >> i would have to agree with that. but at the moment they can be quite inefficient but when you have a positive sentiment in the environment, the markets will generally tend to get ahead of themselves and it doesn't matter anything for the long-term investor that you are talking to overtime. you can say let's get to the right important time. but we have had nothing but positive news in the world doesn't work like that. so there will be some setbacks. gary: one thing, the buying and selling everyday on the nasdaq. are you seeing really what i would deem as a healthy institutional buying? there has been some skepticism that this is a machine. do you see this as well?
9:35 pm
>> it is important to clarify they use computers to drive their buying strategy. from that point of view we don't really know. everything comes in an automated fashion. and they say colin environment here is about -- that is gone. we have an organized marketplace. i don't have any direct insight. but you certainly see enthusiasm on the ceo and the business side about their prospects and it has to show through earnings in 2017. so the markets are assuming that we will have some strong and robust earnings as we go into this. maria: jpmorgan's analysts said that the decline in the corporate tax rate equates to this of 20%.
9:36 pm
and you just spoke to anyone in terms of business leaders and do you expect that there will be an unleashing of activity once the taxes come down and once revelations are rolled back to? >> i think it's impossible to overstate the of images of u.s. economy will have if we have a competitive, global corporate tax rate. we spent the last decade they can about how we can operate in a lower tax environments. if we can stop it, one to make sure it that we can invest in the u.s., that is a wonderful thing. i don't know 20% is the right number, but it's a large number that we can deploy. in return in that capital. >> you mention this and we hear about it every single day. how did the animal spirits start to impact the overall economy? how does the feeling good start to show in the jeep key numbers.
9:37 pm
>> you know, you have to be representative of actual performance. it starts with business leaders, small business, large business, saying that i'm willing to make that investment. building new factories and spending money. all of those decisions are discretionary. the fact that you can say that i can feel good and that i want to make that positive decision, you are seeing that happen. i think that the donald trump election has released that. gary: stay right there, bob greifeld. "wall street week" will be back in just a moment. ♪ ♪ ♪
9:38 pm
[vo] is it a force of nature? or a sales event?
9:39 pm
the season of audi sales event is here. audi will cover your first month's lease payment on select models during the season of audi sales event.
9:40 pm
and i'm just a guy who wantsants to sell him that truck.ck. so i used truecar. it told me what other people in the area paid for the truck i want. and because we're a truecar certified dealership, i already know the truck he wants. so we're on the same page before he even gets here. -it's fair. -and it's fast. look good? looks great. this is how car buying was always meant to be. this is truecar. ♪
9:41 pm
>> i am here to help you folks do well. you are doing well right now. i am very honored and so right now everyone will have that balance continue. more importantly we want you to keep going with the incredible innovation. gary: the headlines and tech gods descend on trump tower. it included jeff bezos, tim polk, elon musk. and his team on wednesday. maria: making it clear that he wants to bring jobs to america. bob is with us bob greifeld. can the companies bring the jobs back home to be profitable? expect that this tax plan is going to need money from overseas and companies for america? >> i think that donald trump
9:42 pm
will be good for the technology industry, as you said, we will be able to repatriate money back. a lot of that is concentrated in the companies. and as he has said before, h1b visas. it's hard for americans to relate to it, there's just not enough people primarily from the high-tech field. and as the nature of manufacturing changes it is of less people intensive. that is more reasonable proposition than it was 10 years ago. gary: i am watching a video, you know the players. most of them listed on the nasdaq. what do you think that they were all thinking when they got to trump tower? what you think happened behind a meeting? >> i would say that the meeting was symbolic. but there's also substance to it. we are saying that we would have a dialogue and that has been a
9:43 pm
theme of the donald trump transition. you hear about a large number of people coming in and out of the tower. and so i think of that is in stark contrast to what we have had the last eight years. we are having them have the ability to talk to the white house in hopes of educating and informing and influencing this. the. maria: there are a couple of names he would like to actually see. some big deals on the raisin. some deals have not been great. 2016 was just an okay year for us. give us your forecast. >> i would say 2016 was a little villus than okay. the fourth quarter is turning out to be okay. the year itself was disappointing. there is a strong correlation between companies coming public and the help of the overall market. that is important. we are approaching 20,000 were to be 20,000 which is important
9:44 pm
and the companies that have come public this year have done better than the broader market. and that is the best predictor. they directly influence the quantity of ipos. the fact that they had these quality ipos, increasing price, leaving me to be optimistic price for 2017. >> what difference does it make as a stock investor? what difference does it make if my stock is listed at the new york stock exchange. why should i care? >> i think that corporations care the most and that we have services and support for them. i always say that it is a lot more difficult being a public company as compared to a private company. we want to ease them through that transition. we have built up over the last decade and done that uniquely. we are very proud of the fact with respect to retail,
9:45 pm
institutional investors that the, we have run this fair and transparent. we will show to you the order and balance and broadcast it to the world, the predicted opening price closing price so that all investors have equal access. and we provide a democratic access to the marketplace. maria: are you schmoozing always be things that won't go public? >> i think it's very important for us to communicate to every prospective issue that we have. so we do that, yes. the answer is yes. i am not making any predictions, but i'm comfortable with this. gary: you are retiring officially in a couple of weeks. the capitalization has been an incredible run. >> 500 million to almost 12 billion.
9:46 pm
gary: what is next for you? >> i'm going to remain chairman for a wild. when you see the nasdaq, your schedule is controlled. i certainly want to be as busy as we are today, but in better control of the schedule. gary: that is a great way to say it. maria: i know that we have all of these elections in europe coming up. a lot of companies listed. can you tell me about that? people were not expecting britain to lead the european union. they were not expecting donald trump to leave the presidency. what is most important in terms of these elections on the horizon? >> i think that what you see is people again, the thing is that they express their will and immigration is a big issue in europe as it was in the election in 2016 here. so i'm not going to be in the prediction business as what the outcome is. but i would say that it's somewhat uncertain. gary: thank you, "wall street
9:47 pm
week" will be right back. ♪ ♪ i have asthma... ...one of many pieces in my life. so when my asthma symptoms kept coming back on my long-term control medicine. i talked to my doctor and found a missing piece in my asthma treatment with breo. once-daily breo prevents asthma symptoms. breo is for adults with asthma not well controlled on a long-term asthma control medicine, like an inhaled corticosteroid. breo won't replace a rescue inhaler for sudden breathing problems. breo opens up airways to help improve breathing for a full 24 hours. breo contains a type of medicine that increases the risk of death from asthma problems ♪
9:48 pm
different asthma control medicine, like an inhaled corticosteroid. do not take breo more than prescribed. see your doctor if your asthma does not improve or gets worse. ask your doctor if 24-hour breo could be a missing piece for you. see if you're eligible for 12 months free at mybreo.com.
9:49 pm
9:50 pm
>> you see what's happening with taxes. yes he was happening with regulations which are totally out of control. right now we punish companies for doing business in america. they are actually punished. that's why they are leaving. and by the way i have to say this. we are going to reduce taxes for the middle class. but for our companies. maria: president-elect donald
9:51 pm
trump continue his progress message this week. gary: it's entertaining watching him pick his cabinet cabinet is looking like an all-star team from business world so how are some of the big wealthy firms preparing for what's to come after the migration joining us now blackrock -- rick reider. we are looking for 2017 to be higher interest rates and higher growth. is that your forecast as well? >> yeah i think it is. you are starting to watch it play out where the anticipation of people talking about fiscal and infrastructure and that will come however markets are going to start to price in and attacks influences are significant. we talk about marrying corporate tax and versatile texan repatriation. we have lived in a world the last two or three years has been borrowed by factors back. you're going to change the attack shows in terms of the benefit you get from borrowing and the cost of the debt is going up so what happens
9:52 pm
companies have invested their business and grow their market share. it's pretty exciting stuff and this is quite frankly for being in the markets as opposed to two years of september and december, now you have divergence and now you have enthusiasm and quite frankly you are seeing companies surveys improved and personal confidence surveys improved so that translates translates to about higher inflation a bit higher interest rates but some pretty good markets. maria: i'm glad you said animal spirits because i feel like we are seeing animal spirits in a lot of areas in the market. i did not see animal spirits from janet yellen last week. what is she looking at that we are not looking at and how do you react to the fed raising interest rates? >> first of all surprising that they were a bit more hawkish than expectations however like you said janet yellen said this in the last meeting. listen i think the biggest day of the year was september 21 where the bank of japan came up japan came off of negative
9:53 pm
interest rates help the banks and insurance companies. yellen came out and said we are going to let the economy run hot and then you think about what she's doing now it's uncertainty they don't have to be that fast. we can be behind markets led inflation run a bit hotter in the economy run particularly for hiring more people read wages are growing in the fed when you enter a tightening cycle different than when you're easing the federal reserve's are behind the market. exactly what she articulated is we haven't seen it yet and we can give it a bit more time but their others on the committee and this is why we move from expectations and their others on the committee anticipating growth faster. maria: what does rick reider think in terms of the number of hikes to get next year? >> we came in if you think about where came in this year it was for hikes in you said earlier 64 meetings they have moved twice
9:54 pm
to move interest rates so i think what they're suggesting three now we think it will be better. think the fed will be behind. i think it's two or three. if the economy picks up faster you bring marx onto the table and get the three hikes. maria: you said we are not going to see a lot of rate hikes. i want to get back to whether or not this is possible what donald trump is trying to do. when we spoke with steven minucci the incoming treasury secretary he predicted 3.5 to 4% economic growth. you are talking about 4% economic growth and that's a different scenario for the federal reserve entire industries. you think that's achievable in the next two years? >> definitely there's a lot of low-hanging fruit in this country. i will play the big one in terms of how you get there as you think about what's really been calling the growth of economy. sven financial transmission.
9:55 pm
now you are creating a dynamic that with even with rates that higher you can create velocity and unique velocity to grow the money supply chain. you need the lending mechanism. the lending mechanism is picking up. i think you can create that growth. i think you can create growth taxes of bit less regulation loss to the come you carry it. it's all going to come the first quarter of the year? no way. there's the ebb and flow. numbers were disappointing in retail sales not that great. the trajectory is pretty good and if that's achievable and i think as you talked about earlier on your shows the dynamic of how unified government whether republican or democrat gets initiatives through that bernanke has called for a long time we need fiscal. actually we are going to get it. gary: i have to ask you this before let you go. have i said fun guys are smarter than stock guys so what are the bond guys thing about the stock
9:56 pm
are get? >> the bond guys are bullish on stocks but i do think stocks are in good shape. you think yes i respect the valuation argument however if you take corporate tax and bring it down and think about where we take corporate tax that's 20% or so the earnings-per-share benefit for companies like financials health care is extraordinary. maria: 20% earnings? >> 25 or 26% growth. maria: of 20% corporate tax rate? >> certainly can do it and in places like health care and financials etc. it's pretty powerful. by the way you think how a company reacts to a better textbook coming in. i know my earnings are going to be better and now i can spend on. there's an enthusiasm that i think is justified. at gannon a lot with the c. and growth is not great. china has risks.
9:57 pm
their risk of there but i do think the momentum is justified. gary: just like you want to listen to maria on election night you want to listen to the bond guy. are you back thank you for joining us on "wall street week." we will see you next week. [vo] quickbooks introduces jeanette
9:58 pm
and her new mobile wedding business.
9:59 pm
at first, getting paid was tough... until she got quickbooks. now she sends invoices, sees when they've been viewed and ta-da, paid twice as fast! see how at quickbooks-dot-com. they all...want...to... how charge me.xes going? have you tried credit karma? does credit karma do taxes now? yeah, and they're totally free, so they'll never take any of your refund. file your taxes for free with credit karma tax. ...better than a manual, and my hygienist says it does. but... ...they're not all the same. turns out, they're really... ...different. who knew? i had no idea. so, she said look for... ...one that's shaped like a dental tool with a round... ...brush head. go pro with oral-b. oral-b's rounded brush head surrounds each tooth to... ...gently remove more plaque and... ...oral-b crossaction is clinically proven to... ...remove more plaque than sonicare diamondclean. my mouth feels so clean. i'll only use an oral-b! the #1 brand used by dentists worldwide. oral-b. brush like a pro.
10:00 pm
john: of the past several years my show has made lots of people mad. some got mad about my affirmative-action. businesses didn't like it when i attacked their. >> hi i'm uncle sam. here, have some tax money. isn't obamacare great? thanks taxpayers. tonight we look back at the bizarre ways i try to make economic freedom interesting.

88 Views

info Stream Only

Uploaded by TV Archive on