unquestioned. don giordano, tammy bruce, thank you for being with us. that's it for us. we thank you for being with us. >> from fox business headquarters and new york city, the new wall street week. maria: welcome to wall street week, the show that analyzes the week that was and helps position you for the week ahead. i'm maria bartiromo. thanks for joining us. here are some of the big headlines that will continue to impact investors and your money into the week ahead. markets ultimately closing in negative territory in a holiday-shortened week. investors are bracing for a rush of corporate earnings due out next week. first quarter earnings for the s&p 500 are expected to be up better than 10%. bank of america, netflix,

goldman sachs all among those reported, that are expected to report next week that may very well set the tone for markets. of course, the markets did move pretty volatile and slightly higher on wednesday after my exclusive interview with president donald trump. he said this to me on a timeline for tax reform. >> we're going to have a phenomenal tax reform, but i have to do health care first. i want to do it first to really do it right. maria: so where are they on that? more from my exclusive interview with the president coming up. also on wall street this week, the major banks unofficially kicking off the earnings season on thursday with strong results from jpmorgan, wells fargo's revenue fell short. we'll get a reaction from the policy coming out of washington when i come to a former morgan stanley ceo. this weekend marks the 105th birthday of the founder of north korea. a lot of focus on what that

means for the rest of the world. chinese president xi jinping is calling for a peaceful resolution after president trump redirected navy warships toward the korean peninsula last week in an effort to deter north korea from testing another nuclear weapon. high stakes meetings in russia, meanwhile, secretary of state rex tillerson meeting with russian president vladimir putin in moscow. the russian leader says the level of trust has deteriorated between the u.s. and russia after the u.s.' attack, the military strikes against syria. it was a very chilly news conference with tillerson and his russian counterpart on wednesday afternoon. and this story dominating much of the week, united airlines continuing to take heat after a video went viral of a passenger literally being violently dragged off an overbooked flight. the stock also took a hit following the incident. the ceo doing multiple versions of apologies, and the stock recovered a bit. at one point it was down a billion dollars in value,

congress is threatening new legislation. turning back the washington, the biggest headlines taking place when i sat down exclusively with trump in his first business network interview since taking office with the fox business network. he said he understands it will be hard, but the president says he has confidence in bringing a new bill on health care to the floor. followed very soon after by tax reform. he said if that does not materialize because of a battle in congress over health care, he is still committed at a minimum to lowering taxes this year. watch. >> we are going to have tax reform at some point very soon. i think we're doing very well on health care. it's been very much misreported that we failed with health care. we haven't failed, we're negotiating, and we continue to negotiate. and we will save perhaps $900 billion. you know, if you look at the kind of numbers that we're talking about, that's all going back into the taxes. and we have to do health care first to pick up additional money so that we get great tax reform. so we're going to have a

phenomenal tax reform, but i have to do health care first. i want to do it first to really do it right. health care has been going along -- you know, it's in negotiations. that's what i do. and it's just a negotiation. and it's going to take a little while longer, but as you are probably hearing, congress is coming along. we have some great people in congress, they want it to happen. we will have no democrats, zero. that means we have to get close to 100% of the republicans. not an easy way to run the government. you saw that with justice gorsuch which is, we're very proud of. he had almost no democrat support even though he was central casting, like the perfect supreme court judge. so we'll see what happens. i think we're doing very well with health care which surprises us, that's like breaking news, but they all know it, they just don't tend to write it. and after that we're going to start on tax reform and infrastructure. maria: do you have to do health care before tax reform? business managers say tax reform is so much more impactful --

>> they're all right, but because i'm saving a tremendous amount, hundreds and hundreds of millions of dollars we're saving on health care, so we're going to have a much better plan than obamacare which is failing each now as i came -- even now as i came in here, they're saying payments have to be made that weren't scheduled to be made. if you don't make 'em, it fails. obamacare's a total mess. so we're saving tremendous amounts of money on health care when we get this done, number one. and most importantly, actually, we're going to have great health care, and all of that saving goes into the tax. if you don't do that, you can't put any of the savings into the tax cuts and the tax reform. maria: how do you know you're not going to have a similar battle on the -- >> oh, i will. maria: because y've got a border adjustment tax, the deductions. so who's to say tax reform doesn't fail the way the bill, the house bill -- >> i think tax reform will be easier, but it's going to be tough. you have a lot of people that have their own agendas including a lot of supporters of different people that are in congress.

they have their own agendas. they want certain things. tax reform's going to be tough, but it won't be as tough as health care. look at hillary clinton, that failed, and you hook at so many of the others, and obamacare failed. obamacare was just, they just in the end just gave up to get the vote. you look at what they had to do in nebraska where they essentially gave out away for nebraska to get that final vote. maria: and we know the premiums up -- >> premiums are up. in many, many of the -- and this is going to to be a much worse year than last year, to obamacare's a disaster. it's really gone. essentially, it's gone. if obamacare isn't bailed out almost on a monthly basis, it fails. it immediately fails. we have a great health care plan that i think will happen, and if it happens, then i go immediately to tax reform, and that will happen. that will be easier than health care. maria: how are you on the border adjustment tax? have you decided? >> i haven't really wanted to talk about it. i don't like the word adjustment

because our country gets taken advantage of, to use a nice term, by every other country in the world, so when i hear border adjustment, adjustment means we lose. so i don't want like the term border adjustment. maria: any tax at the border? >> let's call it an import tax, a reciprocal tax. maria: so it's in there? >> we have countries, maria, that charge us -- our companies -- 100% tax if they sell a motorcycle or if they sell, they make it in america, they make it in the united states, they sell it to various countries. they sell very little because the tax is 100% in some countries. the tax is 50%, 30%, 40%, but if they make a motorcycle and they sell it back into the united states, they have no tax. now, do you think that's fair and do you think that's smart? so i love the idea of reciprocal. you can call it a reciprocal or a matching tax, or a mirror tax. there are numerous terms, but it's very important.

and nobody gets angry when you say reciprocal tax. we'd be a rich nation if we did it, by the way -- maria: it sounds evil. >> when you say i'm going to charge a 10% or 20% border tax, everyone goes crazy because they like free trade. well, they don't say that the other countries are charging much more than that. but when you say a reciprocal tax, and i'm not saying that's what i'm doing, but there has to be a certain reciprocal nature to it. but when you say it, nobody can get angry. even the other countries, if, like, they're charging 50% tax, you say, okay, whatever you charge, we're charging. maria: like china and india. >> they may not like it, but they can't get angry, because they can't win that battle. maria: to you prefer just cutting taxes? if you had to do one -- >> yeah. well, we could keep trade and surgeon things separate. -- certain things separate. we have a lot of different things. don't forget, we're going to be

bringing back as part of this, i think the number's closer to $5 trillion. you know, you've been hearing, you've been using -- you keep using it, $2.5 trillion, rights? but the money, the corporate inversions, and the money over there is $2.5 trillion. we've been saying that number for, what, five years now, would you say? i know it's much more. it's probably $5 trillion or $4 trillion. that money's coming back. war going to charge a very small tax on that money, and companies are going to bring that money back into the united states and do lots of good things with it. right now they can't bring it back. and it's not only the high tax, it's also because the bureaucracy is so horrible. i have friends who are willing to bring the money back, the bureaucracy, the paperwork, the work to get it in, it's not worth it. maria: which is why you're rolling back regul. corporate tax or individual tax, what's more important? >> both. maria: if you had to do one this year? >> both. i almost think individual because the middle class has

just been taken advantage of in this country for so many years. but in terms of jobs, i think both, but i think probably corporate. but they both go hand in hand. it's not going to matter. maria: have you moved off this soft deadline that your team put in place of august? are you looking later in the year? >> i put a dead lauren on health care, and the fake -- deadline on health care, and the fake news immediately went crazy because when i didn't make the deadline -- maria: that you set. >> don't forget, i said withdraw, don't even take a vote. well, that same thing is being negotiated, and great points are being won and lost, but great points are being won that are going to lower premiums and make our health care incredible. but by putting a deadline they say, oh, trump didn't make it. so i don't want to put deadlines. health care's going to happen at some point. now, if it doesn't happen fast enough, i'll start the taxes. but the tax reform and the tax cuts are better if i can do health care first.

maria: what about infrastructure? how do you see it? >> 100%, very soon. i see it as part of, perhaps, the health care plan, because phase two in order to get the votes, i need 60% for that, and if i put that in, the democrats are actually going to love the infrastructure plan. maria: for more of my exclusive interview with president trump on foreign policy and more on the economic policy plans expected, tune into sunday morning futures this weekend on the fox news channel and head over to foxbusiness.com. "wall street week" comes right back. >> when it comes to washington, voters are used to bickering, but president trump says it's worse than ever. >> the level of hatred is incredible. >> as the fighting heats up, will americans be left out in the cold? wall street icon john mack reacts when wall street week returns.

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arguments on capitol hill. it's likely no coincidence that since it all started, the bull run has gone flat. i had the opportunity to ask president trump about the divide on capitol hill right now. >> the level of hatred is incredible. and i'm not just saying in the last 90 days, i'm saying this has been for the last few years. there's a great level of hostility, and they're putting, they're putting their hatred way, way above, way above the country and the benefit to the country that, you know, things that they do can have such benefit. maria: former morgan stanley chairman and ceo john mack is joining me right now, senior adviser to morgan as well as senior adviser to bdt, and, john, it is good to see u. >> pleasure to be here. maria: thank you so chor joining us. you just heard president trump. congress used to go out and have lunch together, have coffee together. it just seems there's so much disagreement and hatred, they can't get anything done, john. >> well, it's hard to get things done, and this is not a shot at cable news, but there's so much

news that i think you're always looking for what is the story. everyone wants to say something different, and i think that puts a lot of pressure on the politicses to respond. politicians to respond. so we want the news x we love cable news, but in my view, there's so much directed at or attacking different congressmen whether it's the democrats or republicans, it makes no difference. maria: okay, so tax reform and infrastructure. there's a thinking now that maybe these two policies can go side by side, maybe that's the way donald trump can get the democrats involved and under the tent, do an infrastructure package. you think that's critical, infrastructure. it's a job creator too. >> well, it is critical. all you have to do is drive the streets or new york or go to -- streets of new york or go to laguardia airport. the president and the leadership need to figure out a way the cut certain programs and add money to other programs to make sure we focus on infrastructure. i mean, our train system vis-a-vis what they have in europe or asia is really

obsolete. it's a great way, i think, to create jobs, to get people to move from a to b city without, you know, going through the rigamarole that we do today. so i think those are very important focuses. on tax reform, you know, i think that's an issue, but i don't find it a huge issue. i think the most important issue is let's look at where we're wasting money. and i think president trump is doing that. where are we spending that we don't need to spend, where can we cut back. if that can create tax relief, i'm all for it. maria: that's one of the reasons why a tax -- a health care plan uldn't get past go, beuse they're trying to make it more cost effective, you know? they're trying to bring premiums down. the same thing with the tax plan. the committee for a responsible budget says it's going to add to the deficit, so what should we be cutting back on in terms of spending? these are the decisions they're all talking about right now, and i know it's the million dollar question, by the way. >> well, we have to look at all the programs.

let's start with farm subsidies. let's start there. let's talk about what's going on in the oil and gas industry. let's figure out can we cut taxes if we incent people to build alternative energy, whether solar, wind, etc. i think there are a lot of things we need to look at. let's look at the foreign aid we give and who we're giving it to, and is it a good investment for us. i think the president is right, we need to look at everything. there's no one bullet you can shoot that will solve these problems. maria: john, you've been investing a hot since you stepped town from -- a lot since you stepped down from morgan stanley. stay with us. we're going to take a short break. when we come back, we'll hear from john mack on investing opportunities. more "wall street week" after this short break. >> could john mack become the next tech giant too? he tells maria how the tech sector is revolutionizing the banking industry and where he's investing when "wall street week" returns.

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built for speed. built for business. ♪ ♪ maria: welcome back. we're talking with former morgan stanley chairman and ceo john mack. john has been investing through private equity on his own and, john, i want to talk to you about that because the growth story has been technology for a long time. you're finding lots of different areas within technology that are opportunistic. tell us about it. >> well, number one, i'm fascinated by these young men and women, the way they think, and how creative they are. number two, technology, as we can tell, continues to accelerate and change in our lives. and for an old guy like me to be around young men and women who are so creative and so thoughtful and be able to give some coaching on some of the issues they do miss, i think kind of an overlay, they're so focused on their technology, sometimes they don't cross the ts and dot the is. and, again, from my experience,

you have to cross every t and dot every i, so i feel like i can help them and i can coach them. but what i'm learning and see the creativity is what really turns me on. do i want to make money? absolutely. but just as important is to see how people are thinking and how technology's going to change our world. that's really, to me, a turn-on. the negative be of all of it is, maria, i'm concerned about jobs. not jobs growth. i mean, it is what it is, creating jobs. technology is going to continue to erode our people and the opportunities to work. so think that's a big issue for us, and a good friend of mine, david segal, he and i talk about it, and i said the only real growth industry looks like senior living and assisted living. it's got to be broader than that. maria: you were telling me earlier about one company, an app that you can actually be at the airport and get the audio of a live program. >> right, sure. the free app is called tunity,

and it allows you to be in an area, let's say you're in a sports bar, the airport, the tv's on, you can't hear anything, you put your phone up, it scans the picture twice, sends it to the cloud, all of a sudden you get audio. maria: that's incredible. >> and he, the gentleman who built this, i think we have a little over a million users of it now. spent no money on advertising, kind of word of mouth. but it's an interesting app and kind of makes your life a little easier if you're waiting for a plane at the airport. maria: you're also investing in financial technology? be what's that? >> for sure. financial technology whether it was in lending club or some of the mortgage companies i'm involved in, listen, again, we talked about jobs earlier. i think financial technology, let's say you're a community bank or even one of the major banks. more and more banking is going to be done online, and as that happens, where are the jobs?

are we going to be eliminating jobs? the financial technology, clearly, is moving very quickly, and it's changing the way we invest, the way we save, the way we get our information and also where we get our advice on what we should be doing. so i do it because i love fin-tech, i love the financial markets each more. maria: it's a special time -- >> it really is. maria: what do you think about this rally? i mean, in terms of the stock market? >> well, i'm net long, no question about that. i do have some concerns about what, as we all do, the global world and what's happening. you know, a whilback i did put on a short with the s&p's just the get me some balance. i've been way wrong, it's not worked for me -- maria: are you ticking to it? >> -- sticking to it? >> yeah, i think it's always good to hedge a little bit. maria: thank you, john mack, for joining us. "wall street week" will be right back.

♪ ♪ maria: welcome back to "wall street week."

the week ahead looks like this, a couple of big markets events that will likely impact your numbers, the housing starts, beige book, manufacturing pmi, existing home sales, all key economic indicators to watch. but it'll largely be the earnings story that drives stocks next week. it's going to be in full swing. investors anticipating a strong earnings season, as i mentioned at the beginning of the program, 10% plus is what i'm hearing in terms of earnings growth for the first quarter: interestingly, revenue is going to be the mover and the notable event of the first quter. revenue expected to be up 6%, and there's a look at some of the notable companies reporting, dish, bank of america, goldman sachs, the blackstone group and general electric, all the names to watch in the week ahead. that'll do it for us here on "wall street week." thanks so much for joining us. next week, join us for our special exclusive guest, larry

fink, chairman and ceo of blackrock, will be with us. i'm see you sunday morning at 10 eastern, and but first, property man begins right now. for 35 years, i've been practicing law and living in las vegas, ground zero for the american real-estate crisis. but it wasn't just vegas that was hit hard. lives were destroyed from coast to coast as the economy tanked. now it's a different story. the american dream is back. and nowhere is that more clear than the grand canyon state of arizona. so we headed from the strip to the desert to show you how to explore the new landscape and live the american dream. i'm gonna help real people who are facing some major problems, explain the bold plans that are changing how americans live, and take you behind the gates of properties you have to see to believe. at the end of the show,