general flynn. i agree, it's a minor matter. lou: ambassador john bolton and michelle malkin among our guests monday. 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. a exerks l weber my special guest. gerri willis is in the fox business newsroom. gerri: markets went on a wild ride friday after news broke that former trump national security advisor lieutenant general michael flynn lied to the fbi. and abc news reported he will also testify against president

trump. until the news broke markets had been having a banner week. the dow jones industrials. and the s & p and russell 2,000 also hitting records this week. the dow, s & p up for the week. nasdaq did not participate naturally and finished lower this week. after hitting an all-time high of 11,000 wednesday. the crip to currency lost a fifth of its currency in less than a day. but it's still up 900% for the year. president trump announcing more sanctions will be coming for north korea after the rogue

nation conducted a missile tess this week. they are capable of striking targets 8,000 miles away. matt lauer is the latest big name to be fired after sexual harassment allegations. an employee accused him of inappropriate sexual behavior. more female accusers have since come out against lauer. maria: as you just heard, investors pushing markets to record highs. it's no secret wall street is big on a deal getting down by year's end. how critical is it for the market and the economy? ubs chairman dr. axel weber. thank you so much for joining us. what a week. we had more record highs and a

week where the markets continue to surprise as well a tax plan we are talking about. what's behind all this optimism in your view? >> i think the economy is clearly coming out of crisis mode. governments that come in more recently are not any more impressed by the crisis. we are seeing it in the u.s. and the european environments. in france it's macron. there is a forward-looking mode. and the economy is doing the best it ever has the last 10 years. this is the first time the imf resides the forecast up. u.s. growth is surprising on the up side. we are in the good part of a cycle. the good times are now.

maria: the gdp report, 3.3% growth. you make an interesting correlation to energy. so the 3.3% growth we saw this week. do you think that's the stable going forward, and tell us why energy such an important component. >> 70% of the rebound of growth is due to the energy normalizing. almost the entire pickup of inflation is due to energy prices. 70% of the trade in particular from emerging markets is due to an energy rebound. energy investment is what china is to global growth. the rebounds of energy investment is the key reason for the economy. the world economy is in a good place.

we'll have two or three years of relatively solid growth, possibly falling to 3.9 by the end of next year, and inflation continuing to be 1.75, 2% by the ends of last quarter 2019. so a pretty benign outlook but a good time, and in europe as well. there is synchronized growth in the world economy. and the other thing we asked for is don't leave everything to monetary policy. now you are actually starting fiscal policy. u.s. fiscal policy will have a much bigger impact, now that it's a huge tool that's being used. that's another reason why there is confidence it's a positive for the stock market. there is a corporate tax reform.

and corporate taxes go down 20% down to 35%. taxes are reasonable and they will be in my view fueling investments and that will add to growth over the future. maria: as we are increasing or add together future fiscal tol policy, we are taking away monetary policy. what is your take on what the federal reserve is doing? is the fed raising rates going to choke off the economy? >> basically they raised several times a year and in a very strong series that would have been a risk. but the feds at the moment are reluctant to do it fast. they are sure they are going to raise rates in december. but unlike the market, we only expect two move next year and

three moves the year after. at that point late be somewhere between 2 1/2 to 3/4. once we are normalizing, we are not exiting the low interest rate environment. and balance sheets of central banks which have been providing stimulus have been at all-time highs and will continue to be high for some time to come. maria: axel, stay with us. more with axel weber when we come back pass "wall street week" returns. >> announcer: making america competitive again. will companies' do things differently with a 20% rate? at the lexus december to remember sales event.

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maria: talk of tax policy has dominated 2017. and talk of rewriting the volcker rule. we are back with the chairman of ubs, axel weber. this president has made energy a focus, a priority. is that an infrastructure play? when you look at the energy space, we can drill and be an incredible producer. that will and job creator. >> as we are seeing infrastructure investment start taking hold and energy investment normalize, that will contribute to growth. what does energy consumption and non-tree newable energies do to climate. in the short term there are some

risks from basically exploiting all the biological sources of energy. but as an economic stimulus it will take hold. and you must see the key issue of what caused weakness two or three years ago was the massive drop in oil price. it's normalizing. what we are talking about is a world economy that is coming out of a crisis that is normalizing. even if the fed goes to 2 1/2, 3/4 percent, that's a normal average interest rate. the feds will not go as far as restrictive. if you look at what drives growth in the u.s. it's people and unemployment at all-time low. it's capital it's energy. there has been anne a rebowfneds energy. and technology. talking about silicon valley and

the artificial intelligence. the economy on the major things that matter for production is doing very well. maria: you are the chairman of the largest wealth management company in the world. you are the former president of the burkes ndis bank. will companies behave differently with a 20% corporate rate versus 35%? >> absolutely. basically companies in various companies move profits around the world and move profits to where taxes were low. the u.s. at 35% was he monday the high -- was among the high-tks havens.

-- high-tax havens. so you are going to get global corporates look at investment in the u.s. and the investments will contribute to growth in addition to consumer confidence. if you look back there was a difference between consumer confidence and the actual readings. if sentiment was too high, this time sentiment remained high and positive and now growth accelerated and the gap is disappearing. inflation is coming up to normal. we are no longer in a crisis environment. we are coming to a normal a environment. maria: the earnings are showing it. so what do you do as an investor

at this point? you have got clients all over the world. what do you tell clients about the market here? are you saying given growth is about to pick up the stock market follows suit? >> we told investors that they should keep being invested rather than cashing out. if the tax reform comes it will provide a major stimulus for corporate america, and corporate america will invest. and that will drive it higher. you shouldn't check out. and also long equity. we look at the u.s. as a favorable investment environment. when you look at the rest of the world we are more bullish on asia make as a region that has

grown massively. that region is very entrepreneurial. and the largest number of new billionaires generated this asia make. europe and america is old money. people have been rich and driving trifor many many years. -- driving for many many years. it's important to have 20,000 people in the u.s. but also in the asia make because that's where the wealth generation is at the moment. maria: i wonder if that's where we'll see higher growth numbers. i have got to ask you about a debate that is about bitcoin. don't tell me yet. let's take a break, then we'll talk when we come back. more "wall street week" right after this.

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that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. maria: ubs, where do they put that money, how do they advise clients. we are back with chairman axel weber. this is a special time we are seeing. we have synchronized growth around the world and that helped markets. let's talk bitcoin. the market cap near's mastercard, $171 billion. are you planning to start

trading bitcoin? >> no, we are not. i have been sceptical about the construction of bitcoin. the block chain and distributed ledger. that will have a big impact on the financial industry and it will transform trading. people talk about it as a currency. it isn't. there is nobody that controls the supply of it. when you look beyond that, it's not a currency in the sense it's an accepted means of payment by everyone. it's accepted by a few but you cannot generally use it. it has been too small to matter. now it's too big to ignore. i'm pretty sure the regulators would have to have a look at it. there are retail investors flocking into it and the

regulators have to look at it and say is that an investment that's suitable for everyone. in the hedge fund industry there is a clear warning. you can lose all your money if you invest in this product. a product description does not exist for things like bitcoin. but it's hard for me to understand what the intrinsic value is of bitcoin. but it can easily go to to -- it can easily go the other way. it shows a sign of search for yield. everyone looks at it not because they have some true underlying value. but they look at the price increase. and say should i miss the rally and be part of this. maria: if we were to see a heavy regulatory hand that changes the

dynamic. but what's backing bitcoin? u.s. dollar is backed by the full faith and trust of the u.s. government. what backs bitcoin? >> nothing. really it's not a currency. what limits the supply of a currency is the central bank that stands behind it. the value of a currency is the supply relative to the demand. i refuse to call it a crip to currency it's a crip to. it's not -- it's a crypto. i find it interesting the features of bitcoin have not been scrutinize by regulators. maria: we know a correction is coming. it's gone nowhere but up. but the administration that's been the least regulatory

administration, yet we could see more regulations on something like a bitcoin which makes sense. characterize the importance of what we have seen on the regulatory front. as a banker you have been strangled on regulations the last 10 years. >> i am also chairman of the institute for international finance in washington, d.c. which is the global lobbying group for all the bangs. we engaged with the governors and we are coming to the end point of this regulatory journey. still this year there will be an agreement and the dust will settle on regulation. many regulators will starting to look at the overall impact of these years regulation and ask themselves is additional piece of regulation worth it or does it not limit flexibility and the ability of banks to finance growth. and i think we have come to that

point. >> they are look at impact studies on have we gone too far. they are look at pieces of legislation where elements of that, 15,000 pages of regulations are viewed as not being productive. some of that will be scaled back. and i think that's a good development in general. maria: thank you so much for joining us this morning. axel weber is the chairman of ubs. more "wall street week" after this. i accept i don't conquer the mountain like i used to. i even accept i have a higher risk of stroke due to afib, a type of irregular heartbeat not caused by a heart valve problem. but whatever trail i take, i go for my best. so if there's something better than warfarin, i'll go for that too. eliquis. eliquis reduced the risk of stroke better than warfarin, plus had less major bleeding than warfarin. eliquis had both. don't stop taking eliquis unless your doctor tells you to,

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maria: welcome back. we'll look at some of the big market events in the week ahead that could impact your money. it's a big week for jobs. the monthly labor department releases its latest employment figures friday. we are talking about the

employment situation getting bert and better. next week factory orders. international trade, and costs. consumer credit, consumer sentiment and wholesale trade. it's been a light week in terms of earnings. we do get a few big names. dave and buster's. also zone. the deadline looms when government funding runts out. look for more twists and turns on the tax bill. it looks like we are coming around the mountain to have it on the president's desk by year's end. i'll see you sunday on "sunday morning futures" on the fox channel. that will do it for us on "wall

street week." [♪] >> earlier this morning business picked up at if i a world cup. all 32 nations know their path to the finals. 195 days from now