all of you for watching. i hope to see you right here next week. ♪ good night from new york. >> announcer: from the world economic forum in davos, switzerland, the new "wall street week." maria: welcome to a special davos edition of "wall street week," the program that analyzes the week that was and helps position you for the week ahead. our program is one hour tonight and we have a lot to pack in. i'm maria bartiromo. u.s. treasury secretary steven mnuchin and commerce secretary wilbur ross. then micro some of the founding erbil gates. blackrock ceo larry fink, the chairman of ubs, a exerks l

weber and stephen schwartzman all on the program tonight. connell mcshane is standing by with the headlines. reporter: president trump is making a splash in davos, whetherland this week. the president using his speech friday morning to hail his first year achievements. president trump: regulation is stealth taxation. in air today those days are over. we cut 22 burdensome regulations for every one new rule. reporter: the government placed tariffs on wash machines and solar panels.

also at davos, treasury secretary steve mnuchin sending the dollar to a 3-year low when he told reporters a weak u.s. dollar would be good for america in the short term. he later said the comments were taken out of context. markets finishing in the green for the week. jerome powell becoming the secretary of the federal reserve. president trump first nominated powell in early november. maria: i had the chance to speak with commerce secretary wilbur ross. he tells me his feedback from his international counterparts has been largely positive. >> surprisingly there is a

growing recognition at the world trade system needs to be fixed. i had a big panel discuss yesterday including the head of the wto, head of cargo, and i asked them a simple question because they were all claiming we were protectionists. i said name me the country that is less protectionist than we are. they had no answer. and they ultimately agreed there are things that need to be fixed. there are abuses. wto needs to change some of its ways. it's the first time i have seen overt recognition of that. maria: with regard to nafta it was a welcome invitation for corporate america to say i'm going to build a factory in mexico then i will sell the products back to the u.s. but that payment template for all deals.

after world war ii it was lib rat u.s. policy to help these countries recover from the ravages of the war. in those days we had big trade you are plus. we had them into the 1970s. so as a conscious policy of helping them export to us. it might have been a good policy at the time. but concessions that were appropriate to make to germany and china in the 1940s are no longer relevant. so the mistake was not to time limit them. maria: why do you think markets are so nervous about what you may or may not do about nafta? >> i think the media have blown it out of proportion. but business hates uncertainty it can adjust to good or bad news. but uncertainty is scary to people. maria: one of the lead stories

in "the journal." lg telling retailers it plans to raise prices on washers and dryers. we are seeing a response. >> it's a natural response. any time you correct people dumping things at illegitimately low prices it will impact price. that's a normal thing. but unless you feel americans have a god given right to dump purchases at the expense of jobs makes no sense. so i don't blame them for putting in some sort of a price increase. more importantly both lg and samsung have begun building huge factories here. one in tennessee and one in south carolina. that's what the trump trade policies are really all about. maria: moments after those comments treasury secretary

steve mnuchin joins me. he explained his comments about the dollar. >> my comments from the dollar had been consistent with what i said for the last year. but for quafer reason they have been am anyified in the last two days. the dollar is one of the mostly kid trading markets in the world. it's the reserve currency. people have confidence in the safety of the dollar. where the dollar is in the short term is not a concern of ours. in the long term i believe the doll sash will strengthen as a result of the u.s. economy and the growth of the economy. but where it is in the short term is not a concern of ours. in the short term a lower dollar is helpful to our strayed imbalance and has certain benefits it was a statement of fact. we support free currencies,

other people intervene in currencies. the treasury puts out a currency report where we have issues with other people who have currency interventions. whether you look at it the last hour, the last day, the last week, three years, five years, it moves. maria: in past administrations the treasury secretary was worried about saying anything about the dollar. you were honest and said what is obvious that a weaker dollar is good for trade. but in the past a lot of treasury secretaries would say we believe in a strong dollar policy even if their actions didn't support that. >> i think that is the case. in recent times, going back for a number of years, the treasury secretary has just kind of commented on strong doors, strong dollars. my person prospective is there is a free market, where it is in

the short term is not a concern of ours. maria: do you worry as the leading economic voice in the country if not the world, are you going to change that stance of being so honest? >> part of reason it moves markets is the press took part of what i said and amplified part of what i said. if you look at my full transcript from yesterday, it was incredibly balanced and consistent with what i said the last year and it wasn't news. i think this is one of those things if my full transcript had been looked at, perhaps it wouldn't have had the same impact. the markets will be where the markets will be. we are excited about and the reason why we are here is to solve the economic -- tell the economic story. we have a great story. we got thanks cuts done last year.

we are on the basis of 3% or higher gdp sustained growth. this is the president's number one objective. we have seen 2.5 mill workers get special bonuses of $1,000 or higher. higher wages. this is what the president is focused on. the last 8 years the average worker went nowhere. this is all about american jobs, growth for american workers. and the reason why we have the largest delegation here we have ever had is to say to the world, we are open for business, we are attractive for business. come invest for the u.s. maria: i was speaking with people from europe. they said they were changing their strategy in terms of investing. >> he ceo we talked to is putting more money into the u.s. maria: initially they were putting money into europe.

but they are shifting to the u.s. because they think the thanks policy is more attractive. >> we thought it would be fabulous. it turned out to be amazing. the response we have seen in a short period of time of apple bringing back hundreds of billions of dollars. companies at&t, b of a, jpmorgan, all the banks, people investing tens of billions of dollars in the u.s. and giving workers raises. so we couldn't be happier with the response. as secretary ross has said, the message is people are talking about shifting their operations back into the u.s. it's an exciting story. we are look forward to the president being here and the president's speech. maria: it's interesting it's getting hard to deny the impact of the tax plan. the mainstream media is trying hard and the left is trying hard

to come up with some reasons for this away from your policies. companies getting these bonused as well as the conversations about 4% growth. listen to this sound bite "a question to gary cohn. >> we just had a litany of businesses that are going to give back to the american people. isn't it unfair to give the president credit for that? they already had that money in their coffers. would they not have turned it loose otherwise? maria: the left is saying this was going to happen anyway. >> they have no alternative but to make up fiction. but the fella who just got a $1,000 economic does can't care

what the left-wing media says. the person who gets a tax cut in the next withholding, he or she is not going to care what the left-wing media says. maria: nancy pelosi calls it crumbs. >> last year when we were talking about 3% gdp. everybody lined up and said we were crazy. that the economy couldn't grow at rates more than 2%. now we are sat 3% gdp. we'll be a sustained 3% or higher it's called the thanks cuts and jobs act because this was about creating american jobs. maria: let me ask you to look ahead to the state of the union next week. we have a whole host of policies to look at. what should we expect from the state of the union next week? will it be largely about economic policies? >> we are looking forward to the

state of the union and i am not going to steal the president's speech. but the president coming here will talk about free and fair trade, reciprocal trade and america is open for business. maria: my special thanks to secretaries mnuchin and ross for joining me. we'll hear more about those policies in the upcoming week when the president gives his state of the union address next tuesday. >> announcer: the market keeps soaring. so why is one bank hedging its bets. bets. ubs's axle weber tells us. the great emperor penguin migration. trekking a hundred miles inland to their breeding grounds. except for these two fellows. this time next year, we're gonna be sitting on an egg. i think we're getting close! make a u-turn... u-turn? recalculating... man, we are never gonna breed. just give it a second.

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maria: global markets on fire. the major averages hitting new highs again this week.

but some are putting up the caution flag. i spoke with the chairman of ubs, axel weber. he is beginning to look at how long this run can last. >> we are expecting a half percent impact on growth this year and next year. and we are waiting for what the u.s. will announce on infrastructure investment. that will be a key driver this year potentially. but the u.s., current sentiment indicators are tracking roughly 1.5% above the hard data. so the market is pricing in a lot of positive momentum. the imf is revising their growth forecast. so before these tax reforms and the current policy takes hold, it's showing there is a lot of

momentum down the road. i think we'll normalize the world economy in a much safer place. i get worried there is so much consensus around that this year almost nothing can happen. the sentiment is so good, i start worries do we miss part of what might be risk. maria: there is a lot of optimism out there. are people too optimistic? >> volatility is at an all-time low. comply season i is high in the market. we have been advising our clients to cover their bets. have volatility so low and insurance being inexpensive doesn't mean you shouldn't buy insurance. we have been recommending it to

clients. and i think there are some head winds we'll see this year. geopolitical risks clearly still out there. the whole discussion here started by canada and mexico, now the president will come here about nafta and what the international trade agreements are. in a world where global trade agreements has been the engine of growth. and the geopolitical risks. they more likely have increased over time. nobody is putting the right price. people don't earn the return they should on some of the risk they have and i think it might correct. people are too come reply sent. when there -- are too complacent. i start worrying we are mission part of the picture.

i -- we are missing part of the picture. people should expect this not to continue for a long, long period of time. probably 2018 will be a great year. but beyond that people shouldn't lose track of the risk. maria: much more from "wall street week" when we come right back. >> announcer: she is one of the most of powerful women in the business liberty mutual stood with me when this guy got a flat tire in the middle of the night. hold on dad... liberty did what? yeah, liberty mutual 24-hour roadside assistance helped him to fix his flat so he could get home safely. my dad says our insurance doesn't have that. don't worry - i know what a lug wrench is, dad. is this a lug wrench? maybe? you can leave worry behind when liberty stands with you™. liberty stands with you™. liberty mutual insurance.

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maria: for the first time in its history the economic forum in

davos had all women in charge. >> i think it's a wonderful example. women have so many different achievements. from the head of the imf to if the woman heading cern. it's a demonstration of the influence women have in this world. bar require gives the a different flavor with women in charge. maria: a lot of optimism about the global economy. you just reported earnings for the fourth square. revenue growth. what would you attribute that to. talk to us about the broad environment. >> first, broad environment. you do see people investing around the world. you see them take on longer term issues they want temperature reposition themselves.

i coined with a lot of clients the term the incumbent disrupter. i have something a lot of the world doesn't have. i own 80% of the world's data. only 20% is searchable. so this idea of an incumbent disrupter. that's what i see around the world. a bank how they do customer service or a car rental company that says i'm a great fleet manager and you need that with autonomous cars. but back to ours when you said the celebration. i'm proud of the ibmers. this has been a real repositioning of the company and reinventing of the whole portfolio. 50% of the portfolio is now. you saw our cloud results, top

3, $17 billion. grew 30%. product services, 17% growth. they represent just shy under 50% of the company. so it's powering and mir yoorg what customers are doing. maria: how do you make sure that growth keeps happening. >> we are a sh -- we are a high value company. we exist era to era, we keep reinventing. it's about acceleration and stable margins. so these new areas will continue to grow. maria: with the rollback in regulations what can you tell us in terms of that, what you are seeing in terms of books and order flow? >> what you see clients

investing in now are longer-term projects. you see this sphwhrend between efficiency which every one continues to be focused on. but they are investing in foundational program for the future. the car companies. everything they are doing is doing withathon plus connected -- doing it with an autonomous car. it's the digital infrastructure they are building, not just the physical infrastructure. maria: now we are talking about machine learning. >> we are the world leader in ai. watson is what most of people think. we one jeopardy with -- we won jeopardy with watson. but which apply ai to business, it's the business platform.

watson, you and i talked by the for healthcare. that's where we started. we will have treated over 100,000 patients. india, china. if you think about it. india, one oncologist for 14, 16 people. they never had a chance to have that care. the elevators here. the interest nest things, predict when is this going to go bad. financial services. you interviewed many of our financial services colleagues. a lot we can do. jpmorgan chase. all the financial services solutions. customer service. all using those technologies. you will see it like a silver thread i believe through every

process in your company. maria: what are the downside risks. people worried that machines are going to take over their jobs? >> i think this an important inflection point in time for companies and for the tech industry and society at large. it is our job to steward in these new technologies and guide them safely into the world which will get to your point. everything we just talked about what they can do. everything you can any of. there is then the opportunity of our time and the issue of our time. it will go to jobs and skills. there are lots of studies, jobs dislocated, do you lose jobs. with every technology that happens. this one moves faster. i have been here talk about 100% will change. if 100% changes we have to prepair it world's workers now. i have been talking about

responsible stewardship of this next era. when you bring it into the world you tell people its purpose. it's here to help me do a better job. >> announcer: ai is here to stay. but what does it mean for human jobs? microsoft could you founder bill gates talks with maria about say carl, we have a question about your brokerage fees. fees? what did you have in mind? i don't know. $4.95 per trade? uhhh and i was wondering if your brokerage offers some sort of guarantee? guarantee? where we can get our fees and commissions back if we're not happy. so can you offer me what schwab is offering? what's with all the questions? ask your broker if they're offering $4.95 online equity trades and a satisfaction guarantee. if you don't like their answer, ask again at schwab. every truck guy has their own way of conveying powerful.

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maria: artificial intelligence is being used in virtually every industry. it's change our world and arguably for the better. but what does it mean for jobs and will workers be replaced in the not too distant future with machines? microsoft's co-founder bill

gates says it will help workers in the long run. >> one place that's super exciting, when you have computers that can see, workers not wearing a helmet, is there a spill somewhere? in these high value environments, whether it's an operating room, a jail, a factory, a courthouse, you will be able to transcribe everything that's being said and see things if there are safety violations, even a construction site so you will be far more efficient using resources. you will be far more aware of what's going on. it's very cheap now because computers and see and hear as well as humans can. maria: your focus is on jobs. people are worried in terms of

a.i. machine learning taking over for humans. >> certainly we can look forward to the idea vacations will be longer at some point. if we can produce twice as much as we make today with less labor, the purpose of humanity is not just to sit behind a counter and sell things. more free type is not a terrible thing. it's not a case of shortage. the government in terms of having a safety net so people can be retrained. the rate of change will be faster in the next 20 years than it has been before. but this is a problem of excess where you can make everything. so can you redirect people to help the elderly to reduce class size, you will have the resources because you will be so much more productive. >> what are the important skills

that would be required to thrive in this new world that we are seeing any was looking at this article. you are saying there are three skills that will be needed in the future jobs market. >> of course the highest value jobs will require technical training, strong math and science skills. that's probably the greatest category of high-paying jobs. but the service areas like helping the elderly, reducing class size. there will be jobs in those more classic areas where the human skills helping people out will still be quite unique. maria: it will be i manage easier for you to raise fund for things like malaria and things you are working on with the better economy. is that what you are seeing this

year? >> i wish we were seeing more. a lot of it comes from government. the foreign aid government. we have a controversy about countries turning inward. germany has gone up a lot. the u.k. has gone up a lot. the u.s. has stayed flat which is better than some people expected. the philanthropic side is growing. but in terms of pure dollars that's not nearly the magnitude, the foreign aid budgets. but india and china, all countries are even in more philanthropy. maria: 4% growth this year across the world. the imf saying that. let me get your take on the tax cuts. do you think this was a good idea? >> every country has complicated tax code. you have to say, did it serve

whatever want to do about equity? i wouldn't say i scored super high on that. then you have to say how does it fit in terms of long-term affordability? i wasn't gigantic. we had a long business environment going into it. i don't see it as a huge plus or minus. if you look at what we are focused on. maria: when you look at taking money back from overseas, wouldn't it encourage a company like microcost to take money back? >> our money has always been accessible. the money really wasn't like sitting in some far away place. companies decide to invest based on the p & l structure. not just the pure asset

structure. but it doesn't change which project you are starting, how many engineers you are employing or anything like that. maria: i have got to get your take on the employment situation. there is debate about daca. brad smith wrote a letter to president trump and said we need to protect the dreamers. when you see what's happening machine learning and see the unemployment situation. we need immigrants to come in, isn't that right? how would you characterize the need for work today? >> we built a country on immigrants. we are are very lucky country where lots of energetic and talented people want to come to our country. exactly what the policies should be is complicated. but people were young when they came here. they spent most of of their life in america. they want to contribute.

i believe that we should all want them to stay and contribute. so i'm hopeful that the dreamers issue can be put behind. we still have a lot of immigrants where you want to clarify what they should do. if we can get the dreamers solved, we can look at immigration more broadly. >> announcer: it's thought thanks reform would only help american companies? think again. black stone's steve schwartzman says the whole world wants a piece of ♪ (nadia white) the moment a fish is pulled out from the water, it's a race against time. and keeping it in the right conditions is the best way to get that fish to your plate safely. (dane chauvel) sometimes the product arrives, and the cold chain has been interrupted,

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maria: there is no question american companies have been a big beneficiary of the president's economic plan. while american companies are enjoying it, international companies are also reaching the benefit, so they are investing in the u.s. >> starting in the united states, and the tax changes, the tax bill will be quite positive. first you have got lower tax rates and highly competitive for the first time in a very, very

long time. you have expensing of capital equipment, 100%. so if you have in any kind of business that needs equipment, this will be a great place to be located. you have got potential to return $2 trillion of money into the united states from abroad, just from u.s. controlled companies. and that all adds up to something pretty good. and in addition, i think what's going to happen is companies outside the united states are now recognizing that u.s. competitive posture has changed quite dramatically. we'll be seeing unanticipated foreign investment into the united states because we'll be the best developed market in the world. so all together, it's a pretty positive story. maria: are you seeing investment plans change as a result of

these new policies from investors across the world? >> yes, it's anecdotal which is how you pick things up because everybody has to make plans. but when people say when you talk about it is something really important is happening in your country. i have got to do more there. you are going to grow faster, you are deregulating. we should be doing that in our countries. and it's a very positive buzz. maria: not to be underestimated is the role of deregulation. >> absolutely. this is one you can see really easily. there was really sort of a regulatory suppression of the u.s. economy in part because of the financial cray is and its aftermath and in part because usually systems tend to

overshoot. and we probably overshot in a whole variety of areas over the previous 8 years. there was a lot of rhetoric that was very negative to the business community. and a lack of understanding with be i think, what powered an economy. this type of rollback which isn't everywhere, it's not irresponsible in toto. it's creating enormous energy and enthusiasm. and is actually an example to people around the world of how you get an economy going it was no accidents that the stock market started going up the day after the election. and not because anything was accomplished that day. it's because the theory of the case, the plan to do much more deregulation than increased

regulation as well as reduce taxes bring money back from abroad, this is actually quite sound. i think it's difficult to really be thoughtful and be against this in concept. how things work out, practically some things will work terrifically well and some won't. but in toto this is a very good strategy. maria: more from davos when we continue on "wall street week." >> announcer: it's been an historic run for stocks. how come more people aren't investing. investing. we'll talk

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maria: i could not find many

people betting against the stock market in 2018 as the record run continues. blackrock chief executive larry fink says too many people aren't participating. how he hopes to get more people invested. >> it's my hope investors worldwide start recognizing it was bad to be in cash. we had a 3x increase in our equity markets since the financial crisis. this more money sitting on the sidelines than we have ever seen. france as you named, france has a specific problem and the president and finance minister are trying to address. 72% of french savings in a bank account. they don't invest over the long run. imagine the world economy if people were managing their savings to meet their long-term

obligations, retirement. if they had money properly placed in the duration of the assets meaning your retirement is a 40-year obligation, you invest in equities with over a long-term. in china, one of the greatest drags today, the chinese now are saving 45% of their disposable income because they are frightened for the future. one chinese -- the one-child policy impacted those rising in the middle class are preparing to help their parents as they goin retirement. in the united states the biggest phenomenon is the under savings. what's really concerning me, we have the strongest economy of we have had in 12, 14 years. we have huge wealth creation in

the equity markets. but we don't have a large, broad participation in the equity markets. so this is something that i'm very focused on. it's ironic. everything feels good. yet anger is still around, and you see sit worldwide. i believe there is just a fear of the future, whether it's from technology -- if you are a truck driver and you read about autonomous trucks, you will say what will happen to me. maria: so you want to hoard cash. >> yes. and we need to focus on financial literacy. we need more of the population understanding their needs. as we moved away from the defined benefit plans we put the responsibility on the

individual. and we haven't given them the tools to properly navigate that. and it's a big social problem. in the united states and worldwide, this one of the reasons, we believe we could use technology to help financial literacy and help people navigate the huge obligation of saving for retirement. maria: my thanks to larry fink at blackrock.

maria: welcome back. let's take a look at the big market events coming up in the year ahead that could impact your money. personal income, consumer confidence and pending home sales. later on in the week we'll hear from the auto sector. consumer sentiment and factory orders.

friday we'll get the latest on jobs as the labor department will release the latest employment numbers. it will be the biggest numbers on earnings. all reporting their fourth quarter numbers. it will be an interesting look into the broad economic story. next week on "wall street week," join me for a special program. we'll talk about how to allocate money today. we'll preview the state of the union sun on "sunday morning futures." you can catch me week days on the fox business network on "mornings with maria."

i'll be broadcasting from washington for the state of the union tuesday and wednesday. that will do it for now from davos on "wall street week." thanks for joining us. i'll see you again next hi, i'm dana loesch from the dana show and over the years, you've seen me interview some pretty cool people, right? today is no different. i'm speaking with dr. nathan bryan. he is one of the leading minds in nitric oxide research. one of the leading minds in the world. now, i recently went through, i guess, a health breakthrough is what you can call it, with my energy and stamina for myself and my family as well. and this guy is responsible for the science behind that breakthrough. i've been telling everybody who's gonna listen, i tell about super beet. it is the whole food drink that i use every single day for better energy, better stamina and of