questions or property stories at propertyman@foxnews.com. i'm bob massi. i'll see you next week. [ woman vocalizing ] anks for be. good night from new york. >> announcer: from fox business headquarters in new york city, the new "wall street week." maria: welcome to "wall street week," the program that analyzes the week that was and helps position you for the week ahead. i'm maria bartiromo. london stock exchange ceo xavier rolet is my guest. but first look at the headlines. corporate earnings and news out of d.c. largely driving the market. the s & p company who reported earnings have been above expectations.

microsoft technology toks helping the a mark ets reach record highs. next week is a busy week. a lot of market volatility being driven by washington. expect it to happen next week. senate leaders are reopening negotiations on their bill this weekend. mitch mcconnell promising a vote on a straight repeal of obamacare. this healthcare battle comes as senator john mccain is facing his own personal battle. the war hero senator has been diagnosed with brain cancer. attorney general jeff sessions says he will stay on for quote as long as it is appropriate. president trump said he would not have chosen sessions for the job had he known he would recuse

himself from the federal investigation into russian meddling. there is a slowdown in business lending. business lones down from 10% a year ago to 2% now. booing market and strong corporate earning are making it easy for companies to raise capital. joining us is chris overback. good to see you. thank you so much for joining us. what about those loans and the slowdown we are seeing. is that emblematic of what is happening in the economy. >> in our segment of the market we focus on companies that make between $3 million.

our backlog is pretty large. activity in that marketplace is very robust. what we are seeing is a vibrant economy in that segment of the market. as to the broader market. there may be seasonal factors. it's hard to say. but certainly the core growth metrics seem to be on track. maria: you are looking at valuations in the stock market of close to 19 times earnings. you are looking at figured income with rate at record-low levels. do you want to buy stocks here? >> throughout history stocks have been a good place to be. there have been some very bad moments. but over time stocks are the place to be. no matter what happens, the management of companies will figure out how to adjust. it's a question alternatives.

do you want to be in long-term bond at low rates or in a stock where the management can make adjustments if there is inflation or growth or slowdown in this economy. the ability of stocks to adjust to whatever is coming at a time of relative uncertainty is interesting. maria: the numbers have been pretty good. so it's the profit story driving this valuation story. >> it's not just here. outside the u.s. europe. they are having talks of rolling back a lot of the stimulus that's taken place in europe. the asian market and china. it's kind of a global growth story going on. maria: europe is at a different place in terms of stimulus. we are going to see easy money continue. do you want to buy companies in

europe? >> i think europe is very interesting. brexit is very interesting. everybody is so fixated on the transition which is tough and uncertain. but post transition, they could be the new singapore. once england is independent they have the ability to restructure their economy and regulatory system for the next 50 years. there is a lot of liberation that will take place there. france with macron, there is a lot of things moving to say there is a new dynamic going on and it's exciting. maria: let me ask you about the u.s. and tax policy. how big of a defeat would it be if we don't see healthcare and tax reform get done this year? would that be a defeat for the markets? >> i'm not sure i would write

those off right now. i think healthcare, it's such a big project. the idea you are going to get that con right away it's such a huge deal. i think there is a lot of reasons why they need to get there. there are problems that have to be fixed. ultimately there is time to get that done. on fox reform, hopefully they will learn lessons of healthcare which is like a total solution. on tax reform it would be much better if there was a partial solution. the most of important thing is so you could lower the corporate tax rate to make the united states worldwide competitive, i think that would be great. maria: will that impact markets? let's say we get lower corporate thanks rates. do you think that rallies markets? >> absolutely. maria: more "wall street week"

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maria: healthcare was the focus this past week on capitol hill. it will probably be the focus as well. in the mind of investors tax reform is the main event. with all three major indices hitting all-time highs, it's clear there is optimism tax reform will happen. i had the chance to speak with r rolet. xavier rolet: i have respect for those driving economic policy in the trump administration. steve mnuchin and gary cohn.

they articulated a strong plan to make u.s. economy more competitive. tax policy is an important part of that. repatriation of overseas capital. if you want idle capital back to work in the real economy, investing in plants and equipment. my flame are americans, at least half of them. in the last few decades, american infrastructure as we see received less attention it should have. the focus on these issues of productivity, investment in the real economy, of making the economy more competitive, protecting an economy of is tomorrow an admission of weakness. protectionism as we all note

results in greater poverty spread amongst a greater part of the population than wealth creation. but focusing on making the the economy more competitive. the edu has been and uncompetitive sector for a long time. so i think that focus is essential. of course, there is the legislative agenda with some sequence sensitivities between reform of the healthcare plan or the obamacare and tax reform. and all of these must be looked at in detail and it's not appropriate for me from overseas to comment on th the a -- appropriateness of healthcare reform. but as an operator of

significant businesses in north america. we have about 700 employees in six offices in the united states. so we have a good feel for the economy. there is in general a better sense of optimism as to what the potential impacts of a productive tax reform this could have on investment. the u.s. economy has been led by consumer spending. it's probably time for investment to take up some of the slack, lerks st we are willing to let citizens to borrow and grow their personal indebtedness. so the just of that tax reform seems to us to be potentially very favorable to the economy. the first question you asked me, the continued presence of i

would say accommodated monetary conditions. not just in the united states, also europe, the u.k. and elsewhere and asia, is taking volatility out of the real economy. he's also distorting to a certain extent the curve in terms of investment and leading to risk at times potentially being mispriced. so from our standpoint, if we could see gradual tax reform with a gradual readjustment of monetary conditions together with continued investment in infrastructure and technological intervention, it seems to us, we see this happening in the u.s. and the e.u. which is undergoing a recovery. and india and china. the world economy is not in such bad shape after all. it's just about avoiding a major

policy mistake and encouraging business to invest more. maria: london is a major financial hub in terms of the financial markets. we know that president trump and prime minister may have discussed a potential trade deal. the president in the u.s. said the u.k. is at the front of the queue. they want to do a good strong trade deal with the u.k. do you expect that to include services and jobs where the major wall street firms can keep their presence in london? >> i think that's an excellent question. if you look at the e.u. or the u.s.gdp. circa 75% of that gdp is led by services. there is a lot of debate about manufacturing or the export or import of manufactured goods. the meaningful and impactful

question, of course is about services. the financial services in the united kingdom has a major advantage. in that it is truly global. if you look at the businesses of the london stock exchange. they are global businesses it's fair to say that certain jobs that's are specifically connected to e.u.-based activity will migrate and some of them have migrated or announcements have been made. but i think jobs that are connected to global services or the servicing of global needs, as articulated by e.u. corporate issuers, those will definitely stay in the u.k. and london and this is really the bulk of what these jobs are about. maria: don't go anywhere, more

with london stock exchange ceo xavier rolet. >> there is a real issue as to whether today capitalist economics are benefiting the population. xavier r r r r r copd makes it hard to breathe. so to breathe better, i go with anoro. ♪go your own way copd tries to say, "go this way." i say, "i'll go my own way" with anoro. ♪go your own way once-daily anoro contains two medicines called bronchodilators, that work together to significantly improve lung function all day and all night. anoro is not for asthma . it contains a type of medicine that increases risk of death in people with asthma. the risk is unknown in copd. anoro won't replace rescue inhalers

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maria: welcome back. will the london stock exchange make a bid for the u.s.? we discuss major issues he's facing as the ceo of the london stock exchange at this point in history. >> there is a live debate. on the one hand the forces of liberal economy globalization and on the other hand a form retrenchment or greater focus on

national priorities. what this is highlighting help any is in spite of this desire for retrenchment in some case which is not illegitimate. there is a real issue whether capitalistic economics are benefiting the population. a real issue about how is the wealth spread. that issue must be addressed. maria: what would be the alternative to capitalism? >> we tried many other forms. none have created wealth or supported innovation the way capitalism has. i don't think capitalism is unpopular in terms of its ability to create innovation and wealth. but how does it percolate down to the wider society. how do we make sure the benefits are shared more adequately and broadly.

what i think the debate which has the polarized in europe on the issues of immigration, leading to the temptation to retrench. what the debate highlighted is that in fact a lot of that wealth has been created not only owe together fact that we operated a capitalist economy, but also because the economics were open and traded with each other. the benefits of trade and capital distribution were shared widely. what we are seeing emerging in our industry today in my opinion is a reasonably slow in our view and reasonably certain outcome of shared global regulation. the slow emergence of a global financial governance system which enables an alignment so that nations can compete on the basis of a level playing field.

maria: let me ask you about your own plans. does growth come from more deals or organic. what can you tell us about the status of the deutsch deal. >> investors noticed our growth is evenly shared from growth from acquisition and organic growth from the synergistic combination of the highly acquired businesses we acquired. maria: do you even need deutsch boerse? is it dead? >> the deal is dead. the merger was not a central part of our strategy it was not our plan a, if you want. we were approached in the middle of 2015. we felt the combination of these

two assets was highly complementary. it operates a large platform, the global collateral management business. global primary businesses, the largest index company of the world that would have put together, made us a very strong competitor and accelerated our growth keeping in mind that we believe that our strategy today to become one of the three or four global structure companies that will populate financial markets we believe in the next 5 to 10 years. maria: you got back to work very easily. but you are back in the saddle. i know you and all your colleagues in the triare trying to get that huge i.p.o. on the horizon.

you went to saudi arabia with theresa may to talk about this with the government. do you think you will get the deal? >> we don't comment on international pick company business or specific client business issues. but i would say that the it national i am p.o. market today continues to look at the london markets as the most of international such market. the fact that the press speculated that we are in convention simply highlight that continued competitiveness of our u.k. market and the london markets in particular for these large global ipos. with the particular company you mentioned i cannot make any comment on that. mamamamama dear predictable, there's no other way to say this. it's over.

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maria: let's look ahead at the big market events next week that could impact your money. on the economic front we have economic reports coming out. existing home sales. all due out in the week ahead. the fomc statement is also out on wednesday as wall treat looks for any signs of when the next rate hike will come. we are probably expecting that in december. among the big names reporting. alphabet. at&t, caterpillar. coca-cola. facebook. it will be a big week. we'll talk about telling and why it's so hot right now. she'll tell us what public companies are doing and what she

is seeing in the private market. join me for our special programming and have a great weekend. >> i'm bob massi. 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,