. -- sin financial system financial system is not finding its way to the economy.ll not encourage good volume in the future. a lot of words from the fed. continue to see a lot of speeches where there is very strange and uneasy dovishness. jonathan: i know a lot of people that are thinking that way. final round of rapidfire, wrapping up quickly, questions. long? elds, rates stay >> stay long. >> stay long. >> race. jonathan: 10 year treasury yield, 10 year higher or lower? >> higher. >> higher. >> lower. jonathan: fed speak through next week, are we on hold for the rest of this year, yes or no? >> yes. >> yes. >> yes. jonathan: very insightful. that does it for us. this was the real yield. ♪ comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you d

financial stability and particularly as it supports -- >> financial stability but not necessarily stock market stability. >> no. by financial stability we're really talking about the capacity of the financial system, particularly banks, but other aspects of the financial systemorm their role and intermediate between savers and borrowers and support economic activity. what we're looking at is a way to more credibly achieve our 2% inflation target. the thing that is our concern is we be allowed to conduct monetary policy with a free hand. we've had three consecutive meetings on the balance sheet and we've worked out i think the framework of a plan that we hope to be able to announce soon that will light the way all the way to the end of balance sheet normalization and will result in the end of asset runoff sometime later this year. maria: a lot of comments there. joining us right now is vining sparks chief economist craig dibuke. can you navigate for us a bit of what he said and he also said all the data is on the table. he's looking at everything. let's not forget, we are expecting the read on fourth quarter gdp this morning, 8:30 a.m. we're looking at an estimate of 2.4%. what struck you most about jay powell yesterday? >> well, there was no real new news in

financial system, because that financial system -- howver, the impact to the economy is very unclear. i believe the japanese economy lost -- due to the changing interest rate then because of that iteration of financialiation founder and also the access debt problem -- excess d ebt problem. yvonne: some would say a slow death or take this risky, proper treatment. we saw mild expansion in japan alaska voyeurs. we are seeing- in the last couple years. wage growth a bit tepid. for some time. could have gone much worse, i'm saying, in a way that benefits could outweigh the secondary implantacts? >> the japanese economy is very sensitive to that. i think that it's very influenced by that external demand. ishink that the -- policy not so -- because domestic demand is weak. the japanese economy has declined considerably in the 1980's and 1990's. that means that the decline of productivity growth. that is our biggest problem we are facing in japan. we have faced over the 20 years in japan. and i believe that only way to restore that high potential of japan's economy is accelerating structural reform. such as reforming the labor market and including reducing our government debt. rishaad: thank you. that was e

financial system, and the answer -- for the economy or financial system, and the answer i felt was no, but it's something is part of the job is to ask that question. senator jones: i appreciate you you being here. thank you, chairman crapo: senator kendy. senator kennedy: mr. chairman, thank you for coming today. good friend, senator brown, lamented the fact that our financial institutions are making profits now. that's a good thing, right? chairman powell: we need a profitable financial system to have a well capitalized financial system. senator kennedy: is it better banks are making money or losing money from a microeconomic standpoint? chairman powell: i think we want banks to be profitable and strong and well capitalized. and they have been. senator kennedy: i want to talk about the government shutdown. tell me if i got -- get this wrong. c.b.o. estimates $11 billion impact to our economy. we'll recover about $8 billion. the net loss to our economy is $3 billion. that sound about right? chairman powell: all i know about that is-- that's what i have read. senator kennedy: that's what i have read. got to trust somebody. i'll take c.b.o. at their word. we have a $21 trillion economy. is that right? chairman powell: about right. senator kennedy: as a percentage of our economy, that $3 billion loss is 1.5% of 1%. is that about right? chairman powell: you did

financial institutions are making profits now. that's a good thing, right >> we need a profitable financial system to have a well capitalized financial system. >> well, is it better if banks are making money or losing money from macro economic standpoint >> i think we want banks to be profitable and strong and more capitalized than they have been. >> i want to talk about the government shutdown. tell me if i get this wrong. cbo estimates $11 billion impact to our economy we'll recover about 8 billion so the net loss to the economy is $3 billion does that sound about right? >> all i know about that, that's what i've read >> that's what i've read too got to trust somebody. i'll take cbo at their word. we have $21 trillion economy, is that right >> sounds about right. >> as a percentage of our economy, that $3 billion loss is 1.5% of 1% is that about right? >> you did that math very quickly, senator i believe you. i'm going to trust you on that >> good. that's an in fan 'tis mal impact, is it not? >> very small. >> let's talk about the economy. some economists said if we passed the tax cuts and jobs act that our economy would overheat. those e

financial stability but not necessarily stock market ability. >> no. by financial stability we're real talking about the capacity of the financial system, particularly banks but other aspects of the financial systeme and intermediate between savers and borrowers and support economic activity. >> what do you say to those folks who say there's now a powell put on the market or in the market >> anything that matters for the dual mandate matters for us, and financial conditions are -- are tools -- our tools work through financial conditions so would i say when there are major changes in broader financial conditions, as you point out, not any one market or set of markets, but when there's a sustained period important changes in broader financial conditions, that matters for the macro economy. it matters for achievement of the dual mandate and we'll, of course, take that into account. >> so you mentioned the head winds internationally, the softening of the eu, the softening in the chinese economy and the risk of brexit we see what's happening internationally for global terror and things of that and i want to talk specifically about china and ask you about this how does china's use of a -- of state-run

so their interaction with our financial system, they have not seen the benefits of it. we need to make sure that the financial systemr them. it needs to and it should. and it starts with education and starts with health, and it starts with access to capital. so for me, i am going back to where i was 50 years ago. david: thank you very much for doing that, and thank you for your time today and very remarkable career. thank you, michael. michael: thank you, david. david: thank you. [applause] ♪ haidi: with your first word headlines. president trump's inaugural committee concerns have been subpoenaed and intend to cooperate. it is not said who sent the papers but abc news reported it came from federal prosecutors in new york. the president is preparing for his delayed state of the union address, with a new government shutdown feared. he repeatedly set any congress security deal that does not fund his wall would be a waste of time. the investment arm of the abu dhabi government sold 35 million shares in the u.s. chipmaker amd. it now plans to convert 75 million into equity. the company has been one of the

financial system. get engaged with counselors to navigate the system in apublic for financial aid and keeping them aware of what's happening during the process. we have been renewing our efforts working through the city to look at legislative or policy changes that could happen at the state or federal level to close some of the gaps in the system. we don't operate in isolation and there's a regulatory framework that sets the conditions that we work in so we'll be pursuing those courses as well. that work is actively underway. our intention is as we start refine solidify our recommendations we'll bring those back to the commission. in addition, supervisor peskin has called for a hearing at the board of supervisors and we'll look forward to preparing and having the conversation at the board of supervisors as well. there'll be more to come here at the commission but i just want to make sure all the commissioners know we're very actively working on this. >> commissioner: commissioners, the update is helpful and i know if we have other thoughts present them to mr. wagner so that can be put in the mix. otherwise, i think you heard where our department is going in terms of trying to respond to a very real need on the part of the patient. a need to clarify our policy and yet be fiscally responsible. any other questions at this point? if not we'll move on to the next item please. was there any public comment. >> clerk: there was no commepub comment wft -- request for the director's report and we'll move on to item 5 the finance and planning committee. >> the finance and planning committee melt tuesday before this commission meeting and the contracts we have approved to add to the consent calendar can be referred to on the current consent calendar. one item i want to extract and indicate for the contract reports we have approved the contract. except for the curry senior centers which will come back in march for our approval. >> clerk: if i may add the dph staff asked to remove the curry report. >> also, i'd like to thank commissioner bernal to chair the rest of the meeting in my place when i had to step out to take a call early. thank you. >> commissioner: thank you. >> commissioner: next item. >> clerk: item 6 is the consent calendar and as commissioner chong note the january vote would not include the curry senior center. >> commissioner: the contract report for the consent calendar is before you including number of new contracts are there any extractions from the consent calendar? seeing none we'll vote on the entire consent calendar. all those in favor say aye. >> aye. >> commissioner: those opposed? it passes. >> clerk: item 7 is the first hearing on the fiscal year 2020 and 2021 budget. >> i can start and jenny lui will take over. generally the way we approach our budget process is over a span of a few hearings. this is the first of the. -- report. we did one from the mayor but this is our first calendared hearing on the topic. generally what we'll do is at our first hearing will you review and we usually do the basic outlines of what our financial circumstances look like so that's our projected baseline hospital revenues and the non policy factors affecting our budget including inflation, things like material and pharmacy the cost that it take to update our budget to reflect the new wage and benefit rates and we also show where we are with regard to our target from the mayor's office. jenny's going through all of those things and there'll be a subsequent budget hearing prior to our full submission to the mayor's office. normally we would do that at the hearing two weeks from now because we generally submit our budget to the mayor's office february 21st. in this case we had a conversation with dr. chow and what the mayor's session and we have a new health director starting two weeks from today in on the day the hearing would occur. we have asked and been granted permission to push that back a little bit so we can give the dr. colfax a chance to spend some time thinking through the budget and working with us on it prior to presen

financial institutions are making profits now. that is a good thing right? >> we need a profitable financial system to have a well- capitalized financial system. >> is it better if things are making money or losing money from a macro economics standpoint? >> i think we want banks to be profitable and strong and well- capitalized and they have been. >> okay. i want to talk about the government shutdown. tell me if i've got this wrong, cbo estimates $11 billion impact to our economy, we will recover about 8 billion to the net loss to our economy is $3 billion. does that sound about right? >> only know about that is that is what i have read. >> that is what i have read too. you got to trust somebody. i will take cbo at their word. we have a $21 trillion economy is that right? >> that sounds right. >> so as a percentage of our economy that $3 billion loss is 1 1/2% of 1% is that about right? >> you did that map very quickly senator. i am going to trust you on that. >> good. that is impact is it not? >> is very small. >> let's talk about the economy. some economists said if we passed the tax cuts and jobs arts that our economy would overheat, those economists were

financial institutions are making profits now. that's a good thing, right? >> we need a profitable financial system to have a well capitalized financial system. >> well, is it better if banks are making money or losing money? from macro economic standpoint? >> i think we want banks to be profitable and strong and well capitalized. and they have been. >> okay. i want to talk about the government shutdown. tell me if i get this wrong. cbo estimates $11 billion impact to our economy. we'll recover about $8 billion, so the net loss to our economy is $3 billion. does that sound about right? >> all i know about that is -- that's what i've read. >> okay. that's what i've read too. got to trust somebody. i'll take cbo at their word. we've got about a $21 trillion economy, is that right? >> sounds about right. >> okay. so as a percentage of our economy, that $3 billion loss is 1.5% of 1%. is that about right? >> you did that math very quickly, senator. >> no, i -- >> i believe you. i'm going to trust you on that. >> good. okay. that's an infinitesimal impact, is it not? >> very small. >> some examinists said if we passed the tax cuts and jobs act, our economy would o

financial system. our mandate is maximum employment and stable prices. we also look after financial stability as it -- >> but not necessarily stock market stability. >> financial stability we are talking about the capacity of the financial system particularly banks but other aspects to perform their role and intermediate between savers and borrowers. >> what do you say to those folks who claim there is a powell put in the market? >> anything that matters for the dual mandate matters to us. our tools work through financial conditions. i would say when there are major changes in broader financial conditions, as you point out not anyone market or set of markets, sustained period important changes in broader financial conditions that matters for the macroeconomy. it matters for achievement of the dual mandate and we will take that into account. >> you mentioned headwinds internationally. the softening of the eu, the chinese economy, the risk of brexit we see what's happening internationally for global terror and things of that sort. i want to talk about china specifically and ask about this. how does china's use of state run banks to allocate credit affect financial stability for the rest of the world? know that there are importan

work outside of the traditional financial system so again, as hugh mentioned this is for jpmorgan's clients and what this is, is really kind of replumbing our financial systemch is something that i talked about as a valium since 2013 so, you can either do it within jpmorgan's walls, similar to what intranets did in 1995, or you can do it on a public block chain like bitcoin or atheerium. by the way, if they tried to do it on the bitcoin network they count yet because it doesn't have scale ability yet all in all, it's positive for the industry and i don't think it's a bitcoin killer, by any means. >> es this an xrp killer >> it's potentially a threat to that xrp has every bank involved. this is a closed system. you can only use this at jpmorgan say your at morgan stanley, hsbc, you might need a similar system to go between banks and that's where a coin like ripple might play a role. >> how much is this a template for other banks to join together and create an intranet amongst banks? >> i suspect other banks if they think it makes sense they'll develop their own. they want the same frictionless movement throughout within their systems done i think they'll eve

system in other countries is a graduate contribution system. if you are financially successful off the back of going to university, you are expected to contribute towards the cost of your education. if you are not financially accept successful, you are not supposed to repay it back. people get worried that they haven't repaid a debt but if i called it a graduate contribution systemngs but this is. he was scared to introduce a tax because he didn't wa nt to introduce a tax because he didn't want to be seen as a labour party person who introduce new taxes. everybody knows this system is far closer to a tax than a loan, he used the language of debt at the problem with that is now for over 20 years we have educated our youth into what we have educated our youth into what we call a debt even though it isn't a debt and never educated them about borrowing. we have given people permission to get other types of loa ns permission to get other types of loans which are far more dangerous and we have a much more debt in huge society because we misnamed this thing in the first place, you have a graduate contribution system. i hope it won't cost you a shed load, it will mean you are financially successful —— but i hope it will cost you. do you regard it as a debt? i don't, now, but! cost you. do you regard it as a debt? i don't, now, but i did and it isjust over 30,000. how do

system or on the edge of the financial system paying high rates or did not have basic tools to support their families and stabilize their financial lives. >> reporter: tuesday jerome powell made a tlip to the delta speaking to students and attending a conference with community activists to shine a spotlight. >> access to banking services is vital especially among families with limited with elt. whether they're looking to invest in education, start a business, or manage the ups and downs of life. >> reporter: bank access was such a problem down here, that hope opened the town's first bank atm >> when hope came in, they -- that was the first thing they did. they knocked a hole in the wall and put an atm machine there there was very little business that you could conduct here many morehead >> reporter: the counseling in hope means she should be out of bankruptcy by november >> once i get out of bankruptcy, i know it may not be the fattest account, but i'm looking to have enough money in hope me and my girls will still make it so i had to learn to stay small to get to big. >> reporter: guys, it's a vicious circle banks aren't here because people are poor and people are poor in part because the banks aren't here. hopefully now there's some effort and a spotlight on trying to stop vicious circle >> that's a great story, steve am i wrong in thinking it's unusual to see a fed chairman taking an activist role in this? or has this happened in the past and i didn't notice it >> reporter: it's a big deal he came down here you're right as far as we can tell, he's the first chairman to come through the mississippi delta. but you're right and one of the things that really hits what we talk about all day and all week long is the issue of bank mergers. also the technology. it's kind of crazy that money travels around the world at the speed of light we all have banking apps on our iphones. and folks here don't have basic banking services as these banks close, that really exacerbates the problem of access of poor people to services >> okay. steve liesman, great to see you, sir. thank you. >>> when we come back, amazon getting pushback the retail and tech giant's decision to make new york city its hq2 meeting resistance from lawmakers here now amazon may be considering a different city we'll speak to one who is not a fan of this plan and friday, a "squawk" exclusive with berkshire hathaway's charlie munger he never pulls punches we'll have that and much more coming on friday "squawk box" will be right back. so with xfinity mobile i can customize each line for each family member? yup. and since it comes with your internet, you can switch wireless carriers and save hundreds of dollars a year. are you pullin' my leg? nope. you sure you're not pullin' my leg? i think it's your dog. oh it's him. good call. get the data options you need and still save hundreds of dollars... do you guys sell other dogs? ...now that's simple, easy, awesome. customize each line by paying for data by the gig or get unlimited. and now get $200 back when you buy and eligible smartphone. click, call, or visit a store today. ♪ >>> still to come on "squawk box," the battle over amazon hq2. a new poll saying new yorkers are okay with jeff bezos moving in we're going to talk to a local official, though, who is just saying no to amazon. also, tax season is upon us once again. 2018, the first full year under the trump tax plan time for us to fire up another debate on taxing wealth. and later, it looks like another government shutdown will be averted and a u.s./china trade deal, well, at least the talks are underway right now big issues for capitol hill. senator david perdue of virginia will be our special guest at 8:00 a.m. -- >> georgia, georgia, georgia >> "squawk box" returns in just a moment sfx: [phone ringing] you still have service? call the insurance company it's them, calling us. it's going to be a week before they can get through on these roads shhh, sorry, i didn't catch that. i said ask how soon they can be here not you. right now? what's now? he says they're surveying our property now they're probably at the wrong house i don't see any hovering his name is hovering? look up? by using machine learning and analytics to automate claims, cognizant is helping insurance companies advance how they serve even the hardest-to-reach customers. cool ♪ his family. his steinway, which met a burst pipe. so grant met his insurance: you are caller number 12. which didn't quite cover the steinway. but what if he'd met pure insurance? owned by members. he'd have met: lisa, your member advocate. who'd introduce him to gustav: leave it to me. a temporary address, temporary ivory, and help him get tickets to the mozart festival. excuse me, grant likes beethoven! uh, the beethoven festival. pure. love your insurance. >> kwelcome back, everybody. amazon's decision to move hq2 to new york has been a contentious one. a study showed that 58% of new york city residents support the project while 35% are opposed. our next guest has been one of the move's fiercest opponents. joining us now is democratic new york state senator thanks for being here today. >> thanks for having me. >> let's just get down to the real story on this do you not want them to come or do you want a better deal? >> well, look. the deal that's before us is so bad right now that i can't fathom that that's going to form the foundation of a productive negotiation. and we're sitting here and rather than try and show that they can be responsible neighbors that would help the community they want to join which is already over-developed. everyone that knows long island city knows the cranes are on every corner building and building they're doing the typical thing they did in seattle. to suggest they might want to contribute to the homelessness crisis they contributed. and they flexed their muscle, threatened to leave seattle or stop the growth in seattle they were creating. and the city council rolled back the tax. this is their typical tactic under the terms of the deal before us, sbult >> if i handed you $3 billion and i gave -- and you gave me -- i'm sorry. if you gave me $3 billion andi handed you back $25 billion, you don't think that's a good deal >> the $25 billion number is inflated it's assuming something would happen on this land if amazon wasn't there there was already a plan to build there before amazon rolled in that idea all the local shops and business would not exist is false. >> you think amazon's not there, the same amount of activity would happen >> no but it's not an accurate depiction of what's going on out there. >> call it half. if i got a return of -- if i paid out $3 billion and you gave me back $10 billion, i'd say that's a good deal. >> why not give them $10 billion? at what point do you stop? because they don't need the subsidizatio subsidization. >> which is the -- which at the moment happens to be the more attractive place to be the argument about putting a amazon on long island city is to create an anchor to create an ecosystem around it. >> long island city is doing just fine. it is growing by leaps and bounds it is growing by too much, in fact subways can't handle it. this will only exacerbate those problems instead of talking about what they want to do to help the local community, amazon is trying to take, take, take >> the quality of life issues in your view, they would be harmed more than the benefit of the additional jobs? >> absolutely. i think so >> so there's not -- >> the jobs are significant and i don't want todemin -- deminnish that >> now, the types of jobs you create at this facility, you'd need a lot of training but the people that need the employment in that community are not the one who is would be getting it here. >> i think a lot of the jobs on average the jobs they promised have about $100,000 as the average salary >> they cited numbers in excess of that. i don't know all i know they're going to count jeff bezos and really inflate it >> there are examples in this country of subsidized businesses that have gone horribly wrong. the way this transaction seems to be structured at least as i understand it and i apologize if i'm missing it, the subsidy's only getting paid out if amazon is actually producing real jobs that are producing real revenue. it does seem to have teeth in it in a meaningful a. that's the part i don't understand what the objection is here's an opportunity to bring somebody to long island city not manhattan. and that's a huge distinction. to me, just again as an observer, it seems like everybody's feathers got ruffled because the mayor and the governor made a deal without bringing everybody into it i think in large part because it would have been very complicated to do that to try to keep this process confidential which is what they wanted to do at the time once that happened, everybody got upset about it >> but the process is a problem only because the suctibstance tt resulted was a problem it was the economic development leaders, the agencies of the state and city that did this without any discussion of or notion of what that community needs or what new york sneeds. >> so the alternative plan which is to say long island city builds on its own, gets you where you think? if i told you i'd bring you $25 billion, right for the $3 billion of subsidies. let's say that doesn't happen. you say it's a strong economy, strong environment there what kind of numbers are you looking at without amazon? >> i haven't conducted an economic study >> don't you think that -- >> i can tell you that -- >> but it's a binary situation you're either going to have this or this. if you don't have any idea what the alternative is, doesn't that seem irresponsible too >> there was a site that would have included a mix of retail and residential which would have been a different outcome >> but create a lot less revenue to the area, correct >> less. less but i don't know how much less and i don't also know to what degree -- >> if the area is going to be used for affordable housing, explain how that's creating additional revenue beyond the construction costs and whatever's built around that area restaurants are not bringing the same kind of tax revenue at all relative to what amazon would? >> because the people who live there make money so those people would also spend money in the surrounding community. they would actually -- and i would dare say they would use the local businesses more than the campus model that these tech companies had been using where everything was internal. the calf fear y-- calfeterias ae on the campus. >> i can't figure out his position rather than -- >> is that what you've heard from constituents? >> i just immediately assume anybody would want it. but you represent the people there. you don't seem crazy you know what the numbers are. >> i appreciate you saying that. >> and newark could definitely use this >> and you'd be happy to subsidize them to come >> yes >> there's two things going on there's a local community concern that is undeniable but there's a bigger discussion going on there's a reason the european union banned subsidies like this let's get $25 billion maybe and it'll be a net positive. >> net positive? >> where does it end why doesn't google and facebook and everyone else say i'm not coming here unless i'm getting my share of your money >> you can make a philosophical argument and i'm happy to have that conversation about subsidies in america i would love to rid subsidies. >> wait a minute not for tesla. >> excuse me i'm no fan of subsidies across the board. >> renewable energy? come on. >> we agree. >> unfortunately, we live in reality and the reality is that states and cities are all competing for these different businesses and are providing subsidies. so the question is if you didn't provide -- mayor bloomberg had interesting comments which i think -- i'm afraid to say you may have distorted it a lit. he said new york is great. they just want to come for that reason having said that, he's in favor of providing the subsidy to get them here. >> i don't believe he is maybe we disagree about that i've spoken to people very close to him in the last week who agrees we should not have provided the subsidy in this case new york has a unique role to play because we're new york. amazon is not bigger than new york at least not yet i know they're trying to become as big as they can new york has the ability to drew a line maybe some people will notice these things shouldn't be happening. >> we just talked about a poll that came out yesterday that said 58% of new york city residents are in favor of this i don't know what the percentage of long island city residents is but what have you heard back from your constituents >> there are some people in support, obviously but everyone i speak to on the street overwhelmingly is concerned. they're afraid they're going to get dricven out of their homes which is already happening one small business was up on the lease and the landlord pulled the lease because they think they can get more now that amazon is coming the subways everybody knows is on crisis. >> don't you need the revenue to -- that would come from something like this to then invest in the subway systeming well in new york city in the last ten years and we haven't been able to do that because we have misplaced priorities among decision makers this is just another one of those misplaced priorities in my opinion. they said we need the money to invest wisely. i said we made money in the last decade and we haven't invested any of it in the subways what's going to change when they come here other than the wealthy getting wealthier and the people there getting run out of town. >> thank you for standing up for the people that actually live there. can you believe this that we're -- i just -- we cannot -- >> it's funny. most instances i completely and utterly disagree with subsidies. >> and you hate corporations >> it's not that i think it's a well done plan. >> you're a public sector guy. here we are on opposite sides again and you're the corporate shell. it's unbelievable. senator, thank you for doing what you're doing. newark, i'm working for you, by >> that's what's happening >> no! that'

financial markets are interlinked. there could be spillovers from china to the us financial system but the us economy doesn't export as it is right now to china and we have a lot of stimulus in our system. in the short run this is a bigger hit. dagen: important to remind people they are one of the two largest foreign owners of the debt too and we always raise the issue, china called everyone down periodically and says you don't need to worry about assuming your debt. with is running one trade dollar annual budget deficits and the national debt climate and you have to brave that issue. maria: you are democracy dealing with trade partnerships with communists. i get different strokes for different folks but they are under a different approach to the way they govern. dagen: i have gotten in arguments with friends of mine, people manufacturing goods in china, small businesses about how the chinese economy, their bullet trains, they are communist. but they think it is perfectly fine to have all this telecom equipment tracking everybody. >> chinese tech companies, they need to make money to turn a profit. if they are not selling goods in the us and other countries get behind us and say we don't want to be spied on either. that is going to hurt the chinese economy more than it would hurt the us or other global economies. pressure on them will hit them in the pocketbook. >> this relates to what i said about state owned enterprise, china is run by a 1-party communist system. it is not the soviet union of the cold war, there's more market-driven effect but state owned enterprises are the key levers that xi jinping uses to manage this economy, state owned banks pumping loans into the system, state owned construction companies putting up these buildings to the big question is what do they do with state owned enterprises that have to be rained back, and what they see as the main lever for buying more american goods, it doesn't add up. maria: we will keep having it. good to see you, thanks very much. we had a busy week on "mornings with maria". we talked about china and other issues. look at the top moments from the show going into the weekend. >> we have not taken the national security threat from china seriously. we see the president push back, the theft of intellectual property prevented them to grow their military, these are not unrelated issues. the reason these companies love being involved, it is a huge population that has developed quickly in terms of middle income households so it is like growing two new united states from a consumer standpoint. this is a trade issue and if we make the mistake of talking about soybeans in regard to a trade pact coming, we are making a huge mistake. >> i don't have a problem with a physical barrier to protect the country. we should just be concerned about border security, keeping drugs out, keeping criminals out. that is what we should be focused on, not the political issue of wall or no wall. >> i don't think the president has the authority to withdraw from nafta. of the result is we stay in the current nafta that served us quite well. i know that is not the president's view but nafta has been a free-trade agreement that allowed tremendous increase in trade between the two countries. maria: optimism levels for small businesses around the country still remain high, continue to grow, people starting new businesses, loan portfolios are up, more people starting businesses. >> there are a number of different types of ai. the ones we provide a practical, targeted out a problem from the us standpoint and something that the us has always been a practical innovator. dagen: down south a southern woman will say bless your heart, she doesn't really mean that. there was nancy pelosi's version of bless your heart. >> had been be will do. they couldn't respond. >> let's not talk about the patriots. football is the only true 4-quadrant business in the united states meeting mom, dad, billions, do it across the age demographics and so when football goes away you see a decline across all four demographics watching television in general so one of the things we focus on was the family experience, we have tickets in the stadium, family for the programming in terms of the actual show. maria: why did you name your horse maria bartiroma? >> my dad started this. we are big-time fox news watchers. maria: do you know how close to my heart pizza is? my family had a restaurant, my grandfather built it and i would make pizza with my dad. >> why is new york pizza do? >> you have to go knuckles to knuckles and make sure you are doing the job. it is all about knuckles. this is loma linda, a place with one of the highest life expectancies in the country. you see so many people walking around here in their hundreds. so how do you stay financiallyas early as possible. we all need to plan, for 18 years or more, of retirement. i don't have a whole lot saved up, but i'm working on it now. i will do whatever i need to do. plan your financial life with prudential. bring your challenges. maria: embattled venezuelan president nicholas madero blocking american aid into the country. >> the military is barricading a border bridge to venezuela and colombia wicca tanker and cargo trailer. the opposition leader, blocking trucks carrying humanitarian aid into venezuela, relief items include food, nutritional supplements, hygiene kits, medical supplies and popular travel websites that quietly stopped selling airline tickets for venezuela. and in venezuelan cities from their booking options. wells fargo causing a disruption to mobile labs and its online banking. one of its facilities shutdown power after smoke was detected during routine maintenance. there was no fire but it appears to be back up and running, wells fargo down 15% over the last