scarlet: that was hank paulson on bloomberg .ow you live shots of the space at rocket -- space ex rocket. this was the first age completed. -- stage. we have seen the rocket landed successfully on a ship in the ocean, critical to the effort of the success of reusable rocket. alix: and the title the ship, of course i still love you. madrona continues -- the drone continues, but the rocket had landed in the atlantic ocean. ♪ ♪ scarlet: i am scarlet fu. "what'd you miss?" alix: 9:30 p.m., we will be measuring inflation and what is happening in china. scarlet: and kicking off the earnings season on monday, looking for another quarter of earnings decline, the fourth straight that they have dropped. joe: and i will be looking at retail sales that come out on wednesday, a lot of important data, particularly the fed will be watching. important to watch that. scarlet: and make sure to tune in for bloomberg west tonight for a special. they will have a conversation with the ceo of airbnb. that will be 6:00 erik: i am mark halperin. julie: a

if that wasn't enough, we'll also be hearing this morning from former treasury secretary hank paulsonnd honeywell chairman and ceo dave

you are watching "bloomberg " we will be interviewing hank paulson.ore to cover with john micklethwait. let's give you a check on the markets. the biggest one-day drop in the s&p yesterday since every three. -- february 3. we are going into the close up .9%. stocks heading for a third straight week of losses. that one shining bright red all week. morning afterthis the japanese finance minister said he would be prepared. session.4.4% on the there are your market moves. let's check over to vonnie quinn. vonnie: establishment republicans are eager to defeat donald trump so much that party donors see ted cruz is the only one left that can deny him the nomination. there bolstered by his decisive win in wisconsin this weekend. you will speak to influence will donors and jewish leaders where he will address the jewish republican coalition. donald trump and john kasich both declined invitations. secretary of state baghdad on an unannounced visit meeting iraq's foreign minister and other top officials. his visit coincides with military action against militants

up next former treasury secretary hank paulson on set.na, inversions, politics no topic is off the table. >>> ceos speak out. business leaders meet with members of the bristol-myers administration to talk trade, the economy and much more. david cote takes us inside room straight ahead. >>> go long we'll hit the gridiron with carolina panthers head coach ron rivera as final hour of "squawk box" kicks off right now. ♪ >> announcer: live from the most powerful city in the world, new york, this is "squawk box". >>> welcome back to "squawk box" here on cnbc. fitting that's how we feel about many of our viewers, we want to be with you. we did say many. most. not all. i'm joe kernen along with andrew ross sorkin. becky quick is in south carolina today with special guest erskine bowles. more from them in a minute. erskine, i think you should come down sea island in georgia. that republican governor vetoed that bill. i'm not playing quail hollow. come further south where they vetoed a bill like that, all right? >> absolutely. in fact i'll be in se

. >> hank paulson coming out swinging against actions his former agencies took on former tax inversions. >> shares of gas down big after reporting march was a challenging month for the retailer. we'll look in on the state of retail. >>> just days after the treasury department announced new rules which had the effect of breaking apparent the giant deal under which pfizer was acquiring allergan, hank paulson was on "squawk box" and said companies need to pay their fair share when it comes to taxes but also criticized the treasury department. >> we're a nation of laws and rules. you can't change the rules -- you shouldn't be changing the rules after the facts and changing them and changing them and changing them again. >> that is something that ian reed, the ceo of pfizer said in an op-ed yesterday and something that brent saunders, the ceo of allergan said on this set a few days back. there's been across of criticism at treasury's move and seems to have been aimed at the filer/allergfiler/ai e pfizer/allergan deal. >> treasury's point is we're snugging up the existing rules to match the s

stephanie, i know you have hank paulson.excited about a weekend in paris with tom keene. but i am focused in the next three hours on "bloomberg ." hank paulson will join us in the next two hours. we have seen such a strategy shift, and especially a place like ubs, with such a push into private wealth management. it has to find out what the head of the investment bank has today. less light was tom keene's stream, all three treasury secretaries. -- last night was tom keene's dream, all three treasury secretaries. tom: real expertise on the housing economy as well. i want to rip up the script here. francine, come in with what you observed with professor roubini. francine: it was surprising that nouriel roubini is speaking to fed chairlly accusing janet of not playing the game, trying to artificially weaken the dollar. is that right, chris? is she trying to play a game that will hurt the rest of the world? that has been the word since the g-20 meeting in shanghai. we know that she met with christine lagarde ridley know that

secretarytreasury hank paulson says china faces serious challenges.he trading day on the final trading day of the week. let's head to julie hyman. the gains in the markets are about half what they were earlier. from the earlpo

. >> a agree with hank paulson who was also of course treasury secretary before and it's a bad one. >, you know, these are two and actions at these companies. however the president needs to stand up and take some of the responsibility here because he has said that he will not sign anything coming out of congress that done include an increase just to the 1%. that's what he has said. so when mr. lew says you haven't seen congress act that's why they haven't acted because it's as useless as trying to charge for air. you can't do it. and so i think that the president should get together with congress and they should reform the tax code for syringes as well as corporations. >> coming up on the program, the debate over two pro. john is the lonely bull on the stock and bought it yesterday. is the company's big design hire enough to get it going again? we'll debate that. plus betting on batteries. it's an old school technology that's getting a second wind. our experts will weigh in on the companies that benefit. p?p?o?gv >>> sharon epperson has the details. >> nancy pelosi says lawmakers in t

larry, what do you make of what hank paulson said?ht when it comes to jack lew changing the rules in the middle of the game and thus cratering the pfizer deal? >> spot on right. spot on right. i mean, let's get on with the root cause of all of this. which is the absence of tax reform. and as paulson said, our system hasn't been reformed in 30 years. it is antiquated and we're losing competitiveness all over the world. why do you want to double tax multinationals? once in their home domicile and overseas, that is dumb. why is our rate at 35 to 40%, which is the highest in the world? why don't we have cash expansion. robert reich's book should tell the story. we want to save capitalism. unless we get our corporate tax system in shape and competitive, we're not going to save capitalism. >> secretary reich, above and beyond all that, how about the basic idea that the rules were won, a, and suddenly jack lew decided they would be b, when president obama came out and touted what the treasury secretary had done, he said, you know, american c

hank paulson deserves an enormous amount of credit for trying to stabilize thing and setting so much of what ended up happening over the past eight years, i give him an enormous amount of credit. >> rose: one critical aspect of the recovery was the stimulus program. here's what i learned from your piece among many things is it was an $800 billion stimulus program. i always heard they wanted more but didn't think they could get more from the republican congress, but you tell me turns out they got a lot more when you add in the elements of in terms of almost a trillion-two. >> a trillion-four. there is a couple of things people forget about what's happened over the years. yes, the original stimulus, $800 million, and by the way not just republicans were against it, there were democrats that didn't want to go that large either. at the same time, people forget there was a big move afoot especially among republicans to lower the deck. so they wanted to cut, cut, cut. so you had this sort of two very conflicted ideas taking place at the same time, almost anti-stimulus measures. so, yes, if

tomorrow on "squawk box," former treasury secretary hank paulson will jones us.ne bowls irsi -- erskine bowls will join us. yeah, val from voya. quick question, what are voya retirement squirrels doing in my house? we're putting away acorns. you know, to show the importance of saving for the future. so you're sort of like a spokes person? no, i'm more like a metaphor. okay, a spokes-metaphor. no, i'm... you're a spokes-metaphor. yeah. ok. see how voya can help you get organized at voya.com. >>> welcome back to "squawk box." let's get down to the new york stock exchange where jim cramer joins us now. jim, we could talk stocks, but i wanted to talk about the jeff immelt op ed in the "new york post." i don't know if you see it. it was pretty striking. >> i felt like a total loser when i read it. no, it was the greatest interview. >> isn't he amazing? >> the best. >> just dazzling. look, i think that immelt stuck with the facts. he doesn't know what to do. he's got the actual story, and then sanders has this narrative that basically has nothing to do with what immelt

secretarytreasury hank paulson says china faces serious challenges. are halfway through the trading day on the final trading day of the week. let's head to julie hyman. the gains in the markets are about half what they were earlier. from the earlier pops from the major averages, particularly the nasdaq, it has been a commodity that rally and that is still the case but outside of commodity related stocks we are not seeing the gains he saw earlier in the session. up considerably, 1.9%, off their highs of the session, up 2.25% at one point, industrials and financials up but everything falling back from where it was earlier in the session. more red on the wheel, health care and consumer discretionary stocks are down. oil is coming down off its highs of the day though still up considerably, 6% off a little bit from the highs this session. that is contributing to some extent to becoming off of the highs for overall in stocks. likely not the whole story. >> the yen getting relief off the huge rally. julie: a little relief that changing. point --, the yen cam

presidential campaign and go back to fix the economy which he didn't do, left to the hands of literally hank paulsonancy pelosi that hurt him too. neil: mike, if you look at it, we're grateful for so little. comeback in the dow as you alluded to, lately on the heels of banks and bank stocks. >> yeah. neil: even though to a bank they reported horrible numbers from a year ago but i guess better than expected, so we're grateful. >> i see as you guys just said for a year we've had bad earnings. the bar is so low in terms of expectations, if you can slip over the bar like say a goldman sachs did this morning you will be okay. neil: that was awful report! >> it doesn't look good. equity trading is not looking good. what jacob lew is doing at treasury but -- neil: why are we ignoring that? >> we are ignoring that because expectations gotten so low. doing that as we approach stock market highs. why is happening? in february the world was reportedly coming to an end. when it didn't come to an end, people continue to shovel doubt on the situation. meanwhile a lot of investors still hitting on their hands. we

. >> reporter: even hank paulson said he's troubled by the effort, saying "we're a nation of laws and rules and you can't change the rules after the fact and keep changing them and changing them." >> i think we have a well-established practice of issuing guidance based on legal interpretation, based on legal authority, and that's what we've done here. everyone who engages in business knows that it's subject to changes in law or rulings. and i think the important thing here is that everyone has been on notice for a very long time. it hasn't been a secret that this is an area of deep concern, bipartisan. my only frustration is that legislation hasn't been enacted to deal with it in the best way. but we remain focused on what administrative tools do we have to stop the pipeline as much as we can until congress acts, but congress needs to act. >> reporter: is there more to come from your office until -- >> we're continuing to look at what options there are. i mean, we've obviously now taken a third action, and we have some of the best tax lawyers and tax analysts. and i have to say, the p

hank referred to, a competitive disadvantage. and the consequences of regulatory actions like this one. >> so you're in line with paulson and you doay that it's understandable. >> well it's we have the highest tax rates of any developed country and we double tax our american companies on investments they make overseas if they're going to bring the money back home. and in the country they operated on. and american companies from repartiating the money in the united states. the administration nor congress agrees that's a good idea but neither can get together and do something about it. >> let's fix the problem. this is putting a damaging band-aid on a problem. >> i guess the question is you have companies here, yes, they have a higher stated tax rate on their profits than elsewhere but they're not that high. what's to stop a company now as many do that rally most of their profits and try to find a tax efficient way of getting at it. >> our tax ratd is 35% so the effective tax rate for american companies making money in america is the highest of the western world. the reason tax rates for companies are lower is that they make investm