maria: that was the chairman, founder and ceo of the blackstone group, steve schwarzman. "wall street week" right after this break.. announcer: tech billionaire and trump supporter peter thiel is going all in on saudi arabia. >>> plus carlyle group founder david rubenstein is leaving it all behind. he here's to the heroes -- america's small business owners. and here's to the heroes behind the heroes, who use their expertise to keep those businesses covered. and here's to the heroes behind the heroes behind the heroes, who brought us delicious gyros. actually, the gyro hero owns vero's gyros, so he should have been with those first heroes. ha ha! that's better. so, to recap -- small business owners are heroes, and our heroes help heroes be heroes when they're not eating gyros delivered by -- ah, you know what i mean. . maria: he is a rarity, a technology billionaire who supports donald trump. i spoke with peter thiel in riyadh about the city of neom. the city of the future that his highness prince muhammad bin salman is building for a reported price tag of half a billion d

blackstone ceo steve schwarzman on what his fund plans to do with that investment. all this and more when "wall street week" returns. we got you covered. [ glass shatters ] property damage? that's what general liability's for. what?! -injured employee? -ow. workers' comp helps you pay for a replacement. what's happening? this is carla. how's it going? and if anything comes up, our experts are standing by. ♪ boo! ♪ ...from godaddy! in fact, 68% of people who have built their... ...website using gocentral, did it in under an hour, and you can too. build a better website - in under an hour. with gocentral from godaddy. . maria: welcome back to the special edition of "wall street week." we're bringing you the highlights from the historic future investment initiative in riyadh, saudi arabia. the united states is teaming up with the saudis to combat the financing of terrorism. an issue that is one of treasury secretary steven mnuchin's most important priorities. he gave me an update on the progress of this important fight. >> we're here to open the terrorist financing tar

blackstone ceo steve schwarzman on what his fund p . maria: welcome back to the special edition of "wall street week." we're bringing you the highlights from the historic future investment initiative in riyadh, saudi arabia. the united states is teaming up with the saudis to combat the financing of terrorism. an issue that is one of treasury secretary steven mnuchin's most important priorities. he gave me an update on the progress of this important fight. >> we're here to open the terrorist financing targeting center, which this is something we sign a memoranda of understanding when the president was here. it's one of my single most important priorities, as you know, to fight terrorist financing and thrilled to be here in saudi. i looked at the three buildings today, they're ready to be open, and launching center the here with saudi co-chairing it with us. we'll be coming out with new sanctions this afternoon on a joint basis and something we're very proud of moving forward with. maria: how do you do that, secretary? we were talking ear

steve schwarzman making $425 million in a given year, and he doesn't have to pay as much as many, many other hard-working people in new york city. you guys didn't do a darn thing to fix it. so congresswoman, i would just ask, that you do try. you do try because we want this to be equitable for all. >> well, look i don't disagree with you this is one of the places i do think we need to go back and fix it but i want to be very careful that we also don't put people who work very hard, especially the small businesses in the situation where we sy because you create wealth, that in some way we should punish people that create wealth. trish: but you have. >> equity we need to be equitable, whether in pass-theres or in corporations or whether in equity arena, that we do need to create equity there between all of those who are wealth creators. we want wealth created, right, trish? don't we want wealth created? trish: i'm a red-blooded american capitalist. i'm all for wealth creation and lower taxes. i love what you're doing on the corporate side. congratulations, that is a big deal. i want to s

wilfred frost sat down with brian moynihan and steve schwarzman to get their views on the tax plan and the state of the u.s. economy they both told him they were optimistic. >> reporter: brian moynihan was upbeat about the state of the u.s. consumer, especially during the current holiday quarter. >> consumers are moving cash about 6% over last year. credit and debit card spending 6.5% the year before those numbers have been five on credit and debit and about 3 on general cash, that's cash out of the atms, teller, payments >> so that's doubled >> it's doubled. that's 2.4 trillion dollars in spending so that doubling means that things are going on in the economy, which is good and so consumers are in good shape. >> he also addressed the company's extra $5 billion buyback announced this morning and said it showed the bank continued to be overcapitalized and he had this to say about tax reforms impact on the economy. >> america needed a couple things one is a more competitive corporate tax rate that's in the bill second a territorial system so people can operate in a global economy. and no

big private equity guy making more than $400 million a year if you're steve schwarzman, you only have to pay 20% tax. i don't know how much is income and how much he counts as investments. he has deep pockets. he is donating money, and he is effectually encouraging the lawmakers to keep the loophole white open. >> to stay silent. here is what can happen. treasury under section 707 under the tax code, has broad discretion, can reacrize a transaction whether somebody is trying to act as partner, when in fact they are not a partner, they're in fact a service provider. you look at the code under section 707. that is why i said last weeks with you. trump can pick up the phone, call secretary mnuchin saying we need to address this issue. we don't need congress. we can act unilaterally to close loophole. trish: i think he wanted congress to do it f you take gary cohn at his word they tried 25 times. there was to will for democrats or republicans to close the loophole. they're getting so much money from the private equity industry. there was no will. the president really did want them to clos

steve schwarzman fav more than three million dollars to, wait for it, mitch mcconnell-linked super-pac fund in 2016. private equity industry as a whole, donated to 79% of all senate seats, both sides, everyone. this is non-partisan issue that year. both sides of the aisle. so, effectively, what these guys are doing as congress didn't make it quote legal, would be and should be considered criminal. so you wonder why no one outside of our president, who at least, at one point in time cared about this issue, about this blatant inequality, why does no one bother to address it? because their campaigns are bankrolled by the industry, meaning the swamp is a live and well. ned ryun, ceo of american majority has been digging on this story. he joins us now. ned, i don't want to, i don't want to take away from the good things in this package. it is very good for corporation. >> that's right. trish: overall good for economic growth. all of that is good but i can't help but wonder why they didn't fix this, this one little loophole, that basically allows people making hundreds of millions of dollars

steve schwarzman who runs one of the biggest private equity firms in the world.e steve schwarzman is willing to give money to both sides by the way because it saves him a ton on his 400 had dollars plus income. paul ryan getting $16 million in contributions from the private equity industry. do we have democrats we can show as well, guys? the dems are getting this as well. this is on both sides. when we talk about the swamp, we're talking about these lobbyists working on behalf of industries, in this case private equity to keep certain perks. they got to keep this. i think it could change. with mnuchin, would gary cohn want to do it or worry they want to protect their buddies at goldman sachs? >> in theory they would want to protect their buds. they have given up their own right, gary cohn, steve mnuchin. they want to serve the country. mr. cohn, mr. mnuchin, if you want to safety country, i know this is in the weeds thing, take a look and get rid of it. go to the irs, issue a new opinion. if you do, theç irs says we'll get rid of carried interest, that saves us,

steve schwarzman doesn't know what the fifo, you know, i mean, do we know what's in the bill?> he said it was buried in the bill. >> and he didn't know. if he doesn't know, i think the problem that we have, full disclosure, okay during the presidential campaign i wrote the president a check. let's get that out of the way, josh, so that's full disclosure, but we're cobbling together something just to get it done, cobbling together something just to get it done and we don't understand the ramifications or what's really in the bill and that's a problem for investors. >> we've taken a particular interest on this program in the fifo flow vision because of the potential impact that it could have on regular investors. watch this program and watch those who are invested in the market and they don't know what's in this tax plan. >> the regular investor because the investor like steve schwarzman, his effective tax rail is zero if i was him i would own blackstone stock get the deduction and never sell anything and get a stepped up basis and pay no estate tax and my effective tax rate is

that is -- trish: they pay way lower taxes that means like steve schwarzman and rest of them out there way less, percentagewise, mark serrano than a firefighter in new york. i think that is fundamentally wrong. president promised to change it. guess what, both senate and congress they're asleep at the switch when it comes to that. too many lobbyists out there lining somebody's pocket to make sure the private equity investors stay fat. >> i understand the frustration, despite all that, despite all that trish the corporate tax rate coming down to 20 or 22, that is 200 million, 200 billion in extra revenue for the united states, that's really critical. for all the flaws this bill has we have to get that. there is three trillion sitting offshore that is going to stay there if we don't do something about it. trish: i agree with that but i just can't believe how obvious. saying we'll stick it to individuals. stick it to high earners. they will pay the price and corporations will get the break. >> corporations will get the break at 20%. perhaps at 22%. look at announcement from the national a

like yesterday and also tune in later, goldman sachs conference, we have brian moynihan and steve schwarzmant it th'sfor "worldwide exchange." "squawk box" is on its way no matter how the markets change... at t. rowe price... our disciplined approach remains. global markets may be uncertain... but you can feel confident in our investment experience around the world. call us or your advisor... t. rowe price. invest with confidence. >>> a wild ride yesterday in the markets. dow futures are pointing to a higher open after coming well off the highs yesterday. you saw the nasdaq today tech appears to be under pressure again >>> on the washington agenda, tax reform banking regulation, and a bill to fund the government we'll get a life repove report t ahead. >>> and the uk cineworld is buying -- why do i think cinnabun cineworld buying u.s. movie chain regal. it's tuesday, december 5, 2017 "squawk box" begins right now. >>> live from new york where business never sleeps this is "squawk box. >>> good morning welcome to "squawk box" on cnbc. i'm becky quick along with joe kernen andrew ross sorkin is

trish: fair somehow a new york city cop has to pay more percentagewise than steve schwarzman?t has made this issue out of it. >> wait a minute. wait a minute. new york city cop doesn't pay more. trish: yes, the new york city coppersagewise, try 27% on the new plan. versus 20% if you're falsely claiming your investment is income. >> slippery slope, trish because then the new york cop pays higher tax on his wages than does the retiree on his savings. should we make them both pay the same rate? trish: no. this is apples and oranges. karl, the private equity investor that is taking 20% of your return, if it is his money, fine, your return, that is labor. that is labor. and therefore he should pay income tax on it. just because they have been paying off both sides, they managed to get away with that and it's wrong. >> well, trish, i appreciate your passion and your enthusiasm for the issue but it ain't going to happen unless the president of the united states does, first of all two things, one, he wants to make it a major issue in 2018. and i saw no sense in the battle over the tax

, particularly on the political implications for donald trump, steve schwarzman was a close adviser torump for most of his first year, he said it was a game changer it was a whopper for donald trump that's another factor to look at even if we argue over the nua e nuances over which seconder will benefit more in terms of the market this is a big political fact their could change the tone of 2018 >> there's a lot of focus on what this does for the deficit but what is maybe missing from the conversation is we get tax reform through and it looks like this president and this administration will started focusing on welfare reform there's more to this story >> speaking of politics, president trump expected to make a major shift in u.s. foreign policy today and declare jerusalem the capital of israel. let's get to tracie potts with the details of that. good morning >> that would be a major change in u.s. policy we're also getting reaction before the president makes that announcement pope francis cutting that the u.s. should keep the status quo to avoid conflict. turkey's prime minister calling

address and home of steven schwarzman, friend and business adviser, who hosted an invite-only $100,000-a-head fund-raiser for trump. the attendees included hedge fund king, steven to profit from the president breaking this campaign promise on tax reform. >> we're getting rid of carried interest provisions. we are, as an example, getting rid of carried interest, which is the darling of wall street. i would take carried interest out. and i would let people that are making hundreds of millions of dollars a year pay some tax, because right now, they're paying very little tax, and i think it's outrageous. >> reporter: some tax analysts say swhachwarzman is a key exam of the people trump was talking about. the carried interest loophole that trump once spoke out against allows carried interest managers like swhachwarzman pay just a 20% rate on their cut of profits for investing other people's money. the house and senate kept that loophole in place, and tax experts say only the ultrarich will continue to benefit from it. the ultrarich that then candidate trump railed against in this 2015 interview, with erin burnett. >> when you have a hedge fund guy who's making $200

brian moynihan talks to cnbc later today, and cnbc will also be sitting down with blackman's steve schwarzman >>> u.s. special council robert mueller in the u.s. has reportedly asked deutsche bank to share data on accounts held by u.s. president donald trump roeuters is reporting that a subpoena was issued weeks ago.i. >> reporter: the president 2,000 miles from washington but unable to escape serious questions about what he knew and when about his former national security advisers lies to the fbi. the president simply saying he feels badly for michael flynn. >> hillary clinton lied many times to the fbi nothing happened to her. flynn lied and they destroyed his life i think it's a shame. >> reporter: setting aside that james comey testified hillary clinton didn't lie to the fbi, the focus now did president trump obstruct justice and could this tweet be used against him? quote, i had to fire general flynn because he lied to the vice president and the fbi the problem, if the president knew flynn lied to the fbi and if he did later ask comey to lay off flynn like comey says, but which the presi

steve schwarzman, and stephen feinberg, who had been whispering in his ear. a verylbur successful private equity guy in his own right. he very much as these people -- has these people in his circle, and that is one of the underlying elements of this whole tax plan, even widening out beyond the carried interest debate, is that a lot of the beneficiaries it seems our people donald trump used to hang around with in new york. julie: and still relies on. scarlet: our thanks to jason kelly, expert on private equity firms. coming up, tax overhaul puts football on the defense. this is bloomberg. se. this is bloomberg. ♪ from bloomberg world headquarters in midtown manhattan, this is bloomberg markets. we have commodity markets closing in new york, so let's look at some of the day's big movers. because it is christmas time, let's take a look at chocolate. coco is getting hit hard, down 5%, 5.1%. sent -- it has been down six straight weeks because of a strong harvest season. in precious metals, gold and silver writing today, at least 6/10 of 1%. gold has a reputation a

. >> meantime, black stone gem steve schwarzman addressing on this >> this is a whopper there is no doubt terms of its impact scale and the fact that many people thought that this would not work and it seems that at this point, a pretty good shot that this is going to get resolved before christmas. >> more from the goldman sachs financial conference comiing up at closing bell. >>> hitting the brakes on tesla. why one analyst says this stock is getting stet for an out turn. >> how about this, san francisco, tokyo in less than six hours. we'll tell you the company that's making that a flying reality. for your heart... your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember. >>> time now for "street talk. >> first stock is snap 2018 is going to be a turning point for the company, given the firm upgraded blue apron yesterday. analysts admit they have been on th