or your property stories at propertyman@foxnews.com. i'm bob massi. i'll see you next week. [ woman vocalizing ] >> from box on my fox business headquarters in new york city, the new "wall street week." >> welcome to wall street we, the program that analyzes the week that was an helps position position you for the week ahead. i maria bartiromo. coming up in just a few moments, former home depot and chrysler ceo, my special because this we can. some of the big headlines infecting every thing from wall street to main street. tax form once again dominating wall street conversations with the house and senate both voting to take their respective plans to conference. a process that will attempt to combine the two bills and hammer out their differences. some of the few key differences lawmakers are dealing with right now. the senate's version has seven tax brackets compared to the

houses four brackets. the house individual tax cuts are permanent while the senate's version sees him ending in eight years. if the tax cut starts in '19, not 18. if in the hospital repeals the alternative minute minimal tax, the senate version repeals the individual mandate. no limit that deduction. investors also digesting the november jobs report out on friday. the economy added 228,000 jobs in the month of november. the unemployment rate held steady at 4.1%. all in all it was a better than respected report. the markets with an up-and-down week, the dow reaching another record high on monday, but then seesawing for much of the rest of the week. markets ending the week next. and the bitcoin craze got a little crazier this past week, skyrocketing while passed 16,000. if that one point the crypto currency saw its value soar more than 40% in 140 hour period.

40% to 40 hours. then a pull back more than 10% hours later. it's truly astounding. the future market goes live next week thanks to american citigroup have already reportedly told customers they will not participate. many banks have concerns about bitcoin's unknown legal status. walmart trying to shake up its image, going to drop the word store from their official names despite having thousands of locations across the world. it is merely cosmetic, it is an attempt to focus on digital and its digital footprint and take aim at amazon. meanwhile harmful wildfires in southern california continuing this weekend forcing nearly 200,000 residents to evacuate. the fires of torts more than 100,000 acres and destroyed more than 300 buildings, mainly residences. he has also forced state officials to shut down portions of major highways in and around los angeles. senator al franken says he's resigning in the coming weeks after several women made claims

of sexual misconduct against the minnesota democrat. the decision coming up or severed democratic female senators and many other democrats urged him to step dow down. he has yet to set a specific date for leaving the senate. president trump announced on wednesday that the united states will not recognize jerusalem as the capital of israel. the u.s. will move its embassy from tel aviv to jerusalem, a move that reverses seven decades of american foreign policy. massive protests erupted throughout the middle east after this decision was announced. if the president has set no timetable for the embassy move. back on wall street, investors are anticipating a final version of a tax reform bill that could drastically change the way companies operate. what will the market reaction be if this bill does not get done, and what about when it doesn't get done? joseph towards me now, the president and chief investment officer of neuberger berman. let's talk about the jobs number on friday. good number. >> very good number. >> what does this tell us about the year ahead? >> it confirms the economy has

good momentum moving into 2018. the job number was better than expected but also continues to trend over the last number of months where we've seen good jobs growth. wage growth was modest, not what people expected it to be but nonetheless showed some wage growth, which shows some good momentum in 2018. >> a lot of analysts are now -- some just specifically because of the tax plan, they are expecting 10% earnings growth as a result of the tax plan to the s&p 500, that's got to be, what, 15, 16% learning earning for 2016? >> the momentum of the economy moving into 2018, but also the potential boost from a tax cut that seems to be building momentum in congress, and may be on the president's desk within the next couple of weeks. that cut in the corporate tax rate whether it ends up at 20% or 22%, there is still debate going on a man could boost earnings by 3-5% as you move into 2018, on top of what the

economy is showing and pushing earning starts. >> the federal reserve meeting next week, this upcoming week on the 13th. do you think they raise rates, and do they basically threatened this economic recovery just as it's gaining traction? >> i think it's pretty much a foregone conclusion they will raise rates in december it was theirs some other event that is unforeseen at this stage. the question is how many rate increases occur in 2018, and i think that's one of the risks. one of the driving factors of asset price gains over the last nine years have been significant central bank policies and lower rates. you've seen now an inflection point going on were rates will start to increase, the balance sheet will roll off from the feds standpoint and that's one of the things we're looking at, sort of storm clouds on the horizon out of that. i think momentum moves into '18 in good shape but we are watching the policy very closely, because you've seen a flattening of the yield curve with increased short-term rates, you will see it probably will

flatter. >> does bitcoin tell us anything about where we are right now? >> it tells you that there's a lot of pro risk behavior going on in financial markets and it's something that -- we've looked at it, we don't invest in bitcoin, we don't believe it's investable at this stage, but it's more of a sign of what kind of investment behavior is going on. that sort of behavior late in the cycle is something to watch closely and be concerned about. >> it's almost like the shoeshine guy years ago, when he said you want to buy the stock in that stock. people thought this is telling me that it's almost over, the rally, because what does the shoeshine guy know? is bitcoin craze is not backed by anything and there are some people who feel this is just the beginning. >> i think long-term digital currency is something to watch closely. >> that's a real thing, digital currency. >> what the implications are. i think bitcoin is a narrow asked that if you will. i wouldn't call it an asset class that is something we think

from an institutional standpoint is not investable right now. >> what do you in this market knowing that we may see this firmness continue? are there areas that you want to stay away from? >> i think there are areas and multiple asset classes whether it be in the credit world with fixed income or in the equity world. there's a range of risk assets. we would move up in quality. we would be more defensive, as i said over time in 2018 and the same could be said for some of the credit markets where you can move up in quality, still have good yields, but avoid some of the riskiest segments of the capital markets. >> great to talk with you. thank you so much. don't go anywhere, more "wall street week" right after this show break. ♪ >> president trump on president obama's pro-business agendas couldn't be any more different, but our companies actually reaping the benefits of president trump promises? former home depot ceo bob

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with gocentral from godaddy. >> president trump's pro-business agenda is driving growth in america. the markets continuing to hit new highs this past week. investors are celebrating this administration's promises of tax reform and a rollback and regulations. i spoke with former chrysler and home depot ceo bob and ask him to characterize what he is seeing in the business world right now. >> it's 180 degrees from where we were about a year ago under the other administration. i think what we've seen in regulation, rollback, the guidelines. if you want to add when you have to take to off. you look at the reduction in epa, some of the regulation controls that has been very positive. i think ceo confidence overall, the colleagues that i talk to him, we talked earlier about they are now starting to invest, they are spending more, they are creating jobs.

the other thing that's really amazing to me and i use the term you either innovate or you evaporate in today's world. >> i like that. >> we are seeing a lot of innovation out there both in products and services. one of the biggest things for amazon is solving consumer problems. that's how they really are serving the market. i see it not only at the large corporations, but we look at about 267 companies so far this year. a lot of these are smaller mid-cap businesses and we are seeing an opportunity for them to either get some growth capital where they've been kind of restrained lately. they are exciting about the potential tax implications for small businesses and the boost that will give them. i'm also seeing a lot of family offices out there maria that are pulling away from traditionally investing in funds and wanting to go directly to market. it's really great for us to go out and work with a family office and be able to find

opportunities for them to invest as a partnership because they aren't then straddled with i've got to invest in three and be out in four. they can be patient long-term, good capital growth, good equity growth kinds of companies. i'm really excited. i think this is a real boom for business and the economy. we saw it in the gdp. we saw jobs go down. if this is a great environment we are enjoying right now. >> for the first time in a long time you have firms like goldman sachs looking for 4% global growth next year. obviously we had two quarters back-to-back up 3% plus economic growth. i want to ask you about the small-cap companies in the tax impact. let's talk about regulation for a second because you hit on something i think is really important. this president has been the least regulatory president. he's lowered -- he's cut the number of federal -- in terms of red tape, just the laws and regulations. which come with fees and a lot

of red tape, bureaucracy. he's cut that by 36%. >> amazing. it was stifling. people would not even go through the process because they know it was long, it was laborious, it was costly and may end up with a broken deal expense. now there's a lot more incentive, a lot more encouragement to go out and do those things as entrepreneurs. and i think we are seeing the reaction in the market to that. >> let me ask you about the tax plan, because small and mid-cap companies seem to be the real beneficiaries here. small and mid-cap companies are the job creators. we want to see an environment for those companies to actually invest, encourage them to invest and hire more workers. many small-cap companies go by the individual rate, which is 39.6%. right now they are paying 40%. they may very well after once this legislation takes place, pay 20, 25%. this is a big deal.

>> huge. it's huge. we look at a number of companies like that, i employed a number of companies like that. just think about a 20%, 20 percentage points reduction. they are all talking about the opportunity now to grow rather than restrict. they have this incentive now with medical care and some of the other taxes. i think if this thing passes we will see tremendous growth in those companies. it gives them more competitiveness to go out there and employ people and to reinvest in innovation and new products. >> don't go anywhere, more of my interview with bob when we come back on "wall street week." ♪ >> it's no secret, general electric is one of the biggest losers on wall street this year. so what does former g.e. executive bob think about the uncertain future and a sinking stock? he weighs in next on "wall street ♪

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>> welcome back, it has been a tough year for general electric. the new ceo john flannery announcing major restructuring plans for the company's operations and also cutting its dividend by 50%. the stock the biggest loser on the dow industrial this year, down better than 40% in 2017. bob was an integral part of their senior executive suite for 30 years. i asked him to take us inside. look at the company's future and whether he would actually buy g.e. stock today. >> it's really heartbreaking for me. i was so privileged to be part of general electric for 30 years, to have jack welch as a mentor in providing leadership and really help formulate a lot of my leadership skills and management skills. it was such a collegiate kind of

competitiveness there were no one through anybody under the bus. if i was short a couple of pennies jim mcnerney would jump in or vice versa. it was just a wonderful, competitive, spirited, passionate kind of culture. >> but a team. >> it was a team culture. everybody took the field, were the same jersey. played for the logo on the front, not for their name on the back. >> but does not not happen once jack left? to speak there definitely was a transition and some of that may have been market backed environments. we went through the downturn, everybody kind of had to pull back. we saw the financial meltdown, certainly hurt the chrysler business that i was running at the time. >> it was incredible how close g.e. came to not being able to turn the lights on. >> amazing. even today i don't think the average person understood that they weren't generating enough cash to pay the dividends which john flannery, the new ceo

appropriately had to make an adjustment. i think running a conglomerate takes an individual that really understands the benefits that of the ghost ends and the goes out. sharing the -- jack was a master at doing that appropriately and effectively and the analysts when they would challenge by don't you break it up, jack would say here's why and they would give him the heisman and be able to fend them off. >> that's what jeff did. he sold g.e. capital that was 50% of the revenue. he sold nbc, he sold even light bulbs. >> and you lose option analogy when you do that. by selling a business a year to generate cash, to supplement the lack of cash flow, i think really put him in the ditch. there are 50% unfunded in the pension. when you announce that you are

going to sell you lose your side of the leverage on the table. i don't want to say it's a fire sale, but people know you are going to get rid of the transportation business locomotive, which i ran. which is a marvelous business. you will probably not see that business get this intermediated. it's a solid business and if you look at the numbers for transportation versus renewable you got to wonder why they are getting rid of that and keeping a very low return renewable business where you are buying the panels offshore to be in the renewable energy business. when you see the regulation pulled back on it even further, question the logic and the strategy in one business. you get down to three businesses, to our industrial and one is medical. i hope the swan song here isn't pushed down 28,000 corporate people come up with them in the businesses, move them out, sell the final three and then all of a sudden g.e. goes away, a terrible saga for a legacy

company. >> that is a horrible thought and really this was an icon of america. you can't really blame sometimes the law of large numbers, because look at honeywell. honeywell has done incredibly well. is there any reason to believe that these prices g.e. is a? or are you not ready to go there yet? >> i think unfortunately, at i would be a buyer. i think we have to see -- john made a strong presentation to the analysts about what was going to happen. he wanted to take a billion dollars out of power systems. there is an example where they did the deal, but i think in exchange for doing it they had to give so many things up for the handcuff themselves on labor and cost and productivity in europe. so whoever steps into that job now has a tremendous task to take a billion dollars. >> i want to ask about the auto sector today. you ran chrysler at a really

important time when people's views were changing in terms of where they want -- i know how popular the jeep is, still incredibly popular and they keep innovating there. but what about the electric car story? what's your take on what's going on, autonomous, driverless, will this will he be a reality do you think? >> i think it will be. i think it's all a question of not if, but when. and the rate of consumer acceptance. before they pulled back the cafe standard there was a period there where the government was going to impose you could only sell so many trucks are so many suvs. basically the rest of the consumer had to buy these small economical cars. i think gm has a good approach with this combination of 1.9-liter engine that continually powers the battery. fundamentally you can drive across country without having to stop to get a quick charge. i think part of the problem with tesla is not having the infrastructure in place with reliability that if you start to

drive you can go get a quick charge at one of these quick charge stations that he talked about putting in place. there's still some anguish about it's a great may be little commuter car, i'm not sure i could take it on a trip. but i think it will happen. i think electric vehicles. the thing that people may forget, may not understand, we did an analysis if you've converted everything to electric, how many more power plants would have to build. it's not an equal or quid pro quo electric cars, there's no power plant. something has to power the battery back up again. >> my thanks to bob. don't go anywhere, more "wall street week" right after this. ♪

>> welcome back now will look at some of the big market events coming up in the week ahead that impact your wallet. a big tuesday as the treasury

will release the latest on the federal budget. also the fomc with its last meeting of the year. on wednesday janet yellen will have her last news conference as chairman. that's when we will likely hear that we will get our third increase of 2017. widely expected, rates go higher next week. we also find out the latest on market new verse the nfib surgery and the consumer price index. a lot of talk about inflation recently along with retail sales. also out in the week ahead. it's a late week in terms of earnings, but we do get some big names like verifone, pier one, oracle, that's typically a market mover. adobe and costco all reporting quarterly numbers. on the political front, tuesday is the controversial senate election in alabama, roy moore versus doug jones. fb and will have special coverage of the results beginning at 8:00 p.m. eastern, so do join us for that important race. coming up next week right here on wall street we, grant interest rate observer editor jim grant.

we will see a sunday morning on the fox news channel for sunday morning futures. join me live 10:00 a.m. eastern on sunday. have a great weekend everybody, that will do it for us on "wall street week. >> 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,