acting i.c.e. director tom and chrisman matt gates among our guests monday, not tomorrow. tomorrow in the next day we want you to have a great, great weekend. tonight. see you monday night. good night from new york. maria: happy we can bid welcome to the program but we analyzed the week that was and helps positioning for the weekend. i'm very about aroma. coming up, equity international founder is my special guest this again. let's head over to the foxbusiness a room and get headlines. everything from wall street to main street this week. >> thank you. a week for the ages on wall street. the dow and s&p at historic highs this week as confidence in the strong us economy has been a key overlooking the trade tensions between china and

others. soft, nike and visa were among the big winners this week. all three posted all-time highs. despite the historic week for the dow and s&p stock finished for the week. the market rally came despite news that the trade war between the united states and china is intensifying. this week the white house announced a new round of 10% tariffs and $200 billion worth of chinese goods. the chinese had back 60 billions of us goods. experts are saying right now that hurricane could be one of the costliest dorms to ever hit the us. the storm swept through the mid-atlantic last weekend resulting in the deaths of more than 30 people. experts think the damage cost for the storm to be well over $20 billion. maria, back to you. maria: the federal reserve is expected to raise interest rates to more times this year. the next meeting is september 26 with its next meeting only a few days away, 2018 is entering the

home stretch. investors are exciting to be listening closely to the bed action almost will pay attention to the impact on stocks. you can expect them to be thinking about the broader economy and real estate. he oversees a real estate empire cheering stock exchange investment trust known as [inaudible]. bill famously sold his equity property trust and office space for $39 billion for the 2007 real estate crisis. what does the lc for the real estate market in the economy? in a new rate environment them jointly now. great to have you on the program. >> thank you. maria: let me get your take on where we are in the economy? we spoken in the past and you said you are a seller of commercial real estate and wordy about the pockets but where do you see things today? >> i don't see any reason to really change my viewpoint. i have been one who has been a

seller of real estate primarily because i was not a buyer. but every analysis comes down to the day you don't buy you sell and the day you don't sell, you buy. then you say what is it - where do we stand and how are evaluations relative to historic et cetera and i think things are frothy and the benefit is a significant way from the fact that there has been a gift of supply and the drift of supply is shortchanging. we are seeing very significant new supply in office and see new supply in multifamily. the flavor of the month is industrial and i don't know but i do a lot of reading and look for idiosyncrasies. one of the particular things that i found is that everybody in the world is building

industrial. now, i know that amazon is terrific and i think they're great company but everybody is building industrial everywhere? and building it and using - million, 2 million square-foot building and i just wonder whether, you know, the lack of discipline that marks the real estate in the is not coming but something said it so well when he who fails to learn from history has condemned to repeat it. i just have this sense that we have a lot of supply coming on and it will affect various parts of real estate and different sectors and different times. maria: buyers have changed. you mentioned amazon but they're not looking for warehouse space so that they can deliver items in short proximities. you have healthcare fine up lots of the space and living longer

and while this is a major trend right now so doesn't matter to you that the tenants have changed, that the buyers of some of the industrial has changed? >> the answer is - i discussed it with someone another day we talked about the fact that i raised the first opportunity fund in 1990 and raised a billion dollars. maria: back then. >> yes, the biggest bond anyone raised. no sovereign wealth funds. a lot of different - 79 investors for 1 billion, $50 million. maria: incredible smack by million-dollar institutional investors alongside 150 million dollars investors in that world has changed. it's a lot of capital out there and looking at opportunity. maria: but you are seen opportunity and the like waste and logistics. >> i think that we are investing

in those arenas in the waste space which is and we felt that there was a real opportunity to acquire and rollup companies and been involved in that. we been involved in both energy and refinery space but we are looking for - we have no choice but were looking for the specialized situations where we can what are our strengths. our specialty is speed and certainty. so, were looking for opportunities for you get paid for speed. maria: that the good way to put it. you got to make a decision. >> well, who am i competing with? institutions that have committees and go through a long process.

that is my favorite competitor. i just can't get enough of them. maria: sam, stay with us. more to discuss when we come back with sam zell, one wall street returns.

maria: will come back to wall street. billionaire real estate investor, sam zell my special guest as we can. in terms of energy specifically, is that the drillers, service companies, the fracture, where specifically are you seeing the opportunity within energy? >> we have done a bunch of different things. we put together a new york stock exchange public company called par petroleum that is really focused on refineries.

we have a refinery in hawaii here and wyoming and other refineries assets on our agenda. all of which are acquirable at significant discounts to what it would cost to replace them. you may argue that there is no justification for fully replacing them but i don't think that jet fuel is going away and i don't think gasoline is going away in the next two weeks. therefore, i think that some of the analysis of the refineries is under representing what the opportunities are. looking at different places in the united states, invested in [inaudible] and invested in [inaudible] and invested in colorado gas. we try to have a broad perspective without making too big a bet on anyone around.

maria: it's extraordinary that the us is or is about to become an oil and energy exporter. >> how many years did we listen to every political campaign that started with energy independen independence. maria: exactly. >> and, you know, we've achieved energy independence. maria: that was one of present drums main goals in moving economic growth. we sought two straight quarters of a% growth and to what you attribute that and how would you characterize the broader economic backdrop? is it tax policy and rollback of regulations or something else? >> i think it's an attitude. i was talking with someone the other day who is in a highly regulated industry and basically said to him what was it like this for and what is it like n now. he said before the discussion

with the regulator was always about how much the punishment would be. today the discussion with the regular is how can we avoid punishment and that changes the way people look at everything and if you view the government as a major impediment then you go out of your way to avoid the government. in many cases, that defined itself is not making investments and not taking risk. maria: right. >> other side of the coin as if there's a positive attitude then that encourages people to take risks and the best capital. to test the limits. maria: to higher interest rates and a string of rate hikes change the scenario. yes, you're right. animal spirits have been unleashed. they were sitting on cash and other not. federal reserve that is bent on

taking rates up from the bottom and probably the rates go up next week when the fed meets with your take on the impact? >> a guy named jim grant. maria: been regular on the show back two or three years ago he writes this thing called grant support. maria: grant interest rate observer. >> and he had an article once, two or three years ago about someone calling and asked about interest rates and said it's a little bit like, to me, and ba. he says let me explain. he says up until whenever it was in 1957 basketball had no shot clock. so the worst example which was the lakers beat the syracuse nationals and the next day the owner of the nationals put in a shot clock. it saved basketball. in the same manner i would argue

that low interest rates at the level at which we have been for the last few years . maria: we were at zero. >> from my perspective that illuminates the sense of urgency. if you limit the sense of urgency it changes the way you look at any opportunities and meet talk about the guys who have huge amount of cash on their balance sheet and the interest rates say zero what the urgency to invest it. maria: you want this mini ablation to stop? you want rates to be where they naturally shut? >> the governments of the world manipulate . maria: currencies. >> since the beginning of time and it would be nice that we went on to impede that from going forward but that's not exactly a realistic assessment. i thank you need interest rates. at reasonable levels in order to encourage people to act.

if i don't have a meter on my decision-making that it's a big impact on how i make decisions. maria: good point. sam, stay with us. more to discuss when we come back with sam zell when wall street returns.

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maria: welcome back. legendary real estate investor, sam zell my special guest. what about this narrative because of higher interest rates because of demographics, i don't

even understand the art meant that there minute things will slow down and that were looking at a 3% growth year this year but by the time 2020 rolls around we may be talking 1.9, 2% which comes from the dow federal reserve. >> i don't know who is head of the federal reserve. maria: robert kaplan. >> i thank you got a great track record. my guess is, my guess is he'll be running again. we are sitting here talking aboute- w temyo wt was brought up in the presidential election in 16 that the candidate who suggested that we could grow at three or 4% was hillary - [inaudible] yet, here we are. change the perspective and attitude and way people think about opportunity.

maria: let's talk about the issues that are of some concern to some, trade and tariffs. what is your take on where we are now with canada? china and the us has perspective china for the theft of intellectual property which dnghar,lcog it work? >> well, the answer is if i knew whether it will work or not, i would be rich. maria: i thank you are rich. [laughter] >> you have made me bad but i just don't think that people have looked at this problem from a broad enough perspective. let's take nafta. we created nafta 25 years ago. nafta was 50% foreign policy and 50% trade. what was the foreign policy? stop illegal immigration and solidify our neighbor to the south guess what? both of them worked.

in worked great. well, it's 25 years later and maybe it's time - maybe we should take another look. i think that is what the ministration is done. interestingly enough, i'm close to the mexicans involved in my initial reaction was i thought this would be wildly and tight us but in effect they said to me we need to rethink how we do things, including the fact that nafta has a shifted our thinking so that we only think about markets to the north when in fact there are lots of markets to the south and in europe that we not developed and maybe this will help us do that. maria: you have the midterm elections, third corning recorder earning season on the rise and let's go back to the us to get your take on what is going on here with evaluations. you see these catalysts been an

issue for markets? >> well, i think that the markets are first of all bifurcated - seven or eight facts that represent all the growth or most of the growth. maria: yeah, those stocks alone represent almost 10% of the s&p 500. >> i'm not sure you're old enough but i was around the nifty 50 and i don't know what percentage of those nifty 50 reps and in but it was a similar - it was a significant percentage and then it changed. some of the evaluations today are challenging to understand one of these committees sells for 125 times earnings did you do the math and 125 times earnings means that the return on capital is under 1%. if you have a company that's trading at 125 times earnings in

order for it to justify that ratio has to be 25% of the us economy in five years. i'm willing to bet on public television that ain't going to happen. by the way, the last time i looked at the numbers like that was 1997 and the company selling for 125 times earnings was called cisco and we would know what happened there. maria: cisco plummeted. >> every company plummets from those levels. we not even talked about tesla. maria: i was just going to ask you. >> explain it to me. maria: what do you say to tesla? >> i don't know what to say. company loses money after significant subsidies from state and federal governments and still loses money. maria: burning cash. >> there's a guy who is the ceo who does things on twitter that everyone else goes to jail for. i would go to jail if i

announced that i was taking one of my companies private and funding was secured. they would hang me out to dry. how come he misses the [inaudible] how come he gets the past? we done that before. the guy who ran enron got a pass. we seen other situations where we glorify people who where reality is no longer relevant in making a decision. making a decision. maria: great to have you on t tt (nicki palmer) being a verizon engineer is about doing things right. and there's no shortcut to the right way. so when we roll out the nation's first 5g network, it'll be because we were the first to install millions of miles of fiber optics. and we'll be the first to upgrade the towers and put up the small cells that will power the smart cities of the future.

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maria: time for look at the big market events coming up in the week ahead that could impact your wall. a number of things looking at earnings to tell you about. monday we hear from the dow federal reserve manufacturing survey and onto the latest meeting in dc and inspecting another rate increase to be announced after that meeting.

we also hear from the home schiller home price index. on earnings pretty good week we find out if the colin cabinet controversy as i did negative bottom-line as they report their quarterly numbers. once a fomc has press conference on the meeting at the end of that to the meeting and earnings from carmax and bed bath and beyond. on thursday with the gdb number and we know we saw two quarters of 4% plus growth in the gdp will be closely watched. also close watch, pending home sales and on earnings mccormick and company and accenture will report their quarterly numbers. friday ending the week with data on personal income consumer sentiment and earnings from bill resorts. coming up next week, joined the economist my special guest and will check in with doctor ruffini to see what he thinks about investing in the broader economic apartment today. plus, a few on sunday morning on the partition office anybody futures, catch the show live 10:00 a.m. eastern on fox news

channel. plus, start smart every day on foxbusiness, today we days for the foxbusiness network in the mornings with maria live from six-9:00 a.m. eastern. we set the tone for the daytoni. see you monday night. good night from new york. maria: happy we can bid welcome to the program but we analyzed the week that was and helps positioning for the weekend. i'm very about aroma. coming up, equity international founder is my special guest this again. let's head over to the foxbusiness a room and get headlines. everything from wall street to main street this week. >> thank you. a week for the ages on wall street. the dow and s&p at historic highs this week as confidence in the strong us economy has been a key overlooking the trade