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tv   Worldwide Exchange  CNBC  January 17, 2017 5:00am-6:01am EST

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good morning from davos, switzerland. happening now, chinese president xi jinping set to defend globalization before the world economic forum. a developing story, the global market cautious as british prime minister theresa may prepared to lay out her brexit plans. the expected headline, no half in and half out deal. and the trump effect. general motors set to invest a billion dollars and add 1,000 jobs in the u.s. following an
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attack by the president-elect. it's tuesday, january 17, 2017. "worldwide exchange" begins now. ♪ good morning. welcome to a very special edition of "worldwide exchange." i'm sara eisen. >> i'm wilfred frost. we're coming live from the world economic forum in davos, switzerland. this week it's the annual gathering of the global political leaders, ceos, bankers and decisionmakers. as u.s. president-elect trump prepares to take office friday. >> among our guests this morning, we have the ceo of society generale here. and we have jacob frenkel. we will talk geopolitics with ken rogoff. ian bremer joins us as well.
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so many big stories to talk about. a forum of international leaders, ceos and global elite. >> starting in just about ten minutes time, president xi jinping, the leader of the biggest communist economy in the world will address a whole load of corporate leaders, likely to back up the argument for free trade. in three days time, the new leader of the biggest capitalist economy in the world will likely start articulating an argument against it. they're really setting themselves up for two didn't sides of this globalization, free trade, interconnected type of world. especially with donald trump, the president-elect speaking over the weekend coming out against european integration. it gives us fodder to talk about with our guests here. >> as we said, president xi
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jinping will begin in about 10, 15 minutes time. we'll bring you the highlights from that. and we'll talk about the relationship between beijing and washington with ian bremerment. >> before that, let's check the global markets. show you what's happening. u.s. equity futures slightly negative following what we've seen in overseas action. dow futures down about 40 or so points. s&p futures are down about 6 1/2. nasdaq futures down 12. as for the ten-year treasury note yield, we have seen higher yields post-election. that's backed off a bit. as you can see, we're way off the highs at 233. some buying of treasuries this morning. selling of stocks. not a pronounced trend. >> quite a lot of guying over the weekend. and that upcoming brexit speech from theresa may, that caused jitters and risk off sentiment
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over the weekend. the british prime minister will deliver a speech this morning. she is expected to say britain will not seek a deal that leaves it half in and half out of the eu. let's look at the pound. it's rebounding today, having hit a fresh three-month low over the weekend. today up about 0.9%. so, 1.215. a decent rebound today. a somewhat buy the rumor sell the fact moment. >> high drama. >> the pound sold off and it is rebounding today. that speech due in about an hour's time. >> that lower earlier this weekend. as for the european equity trade this morning. let's show you what's happening across the continent in europe. the dax is negative. sort of down about three quarters of a percent. fewer declines for the rest of europe. as for asia overnight, there's
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the ftse 100 down 0.3%. remaining resilient. >> asian trade saw the nikkei down sharply. the rest of asia up. oil prices were down about 1% on friday. down about 3% for the whole last week. not doing too much -- well, up about a percent and a half, wti. rebounding from last week. dollar, as we said, soft across the board. yen up about a percent. euro up about 0.6. gold prices to round things up, up 2% last week and gaining this morning about another percent or so. >> among the top corporate news, general motors is expected to announce plans to invest $1 billion into its u.s. factories. this will include adding more than 1,000 jobs in the u.s. the news could come as early as today. the automaker faced criticism
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from president-elect trump for building vehicles in mexico. sources telling phil lebeau the investment had been in the works for some time now. yesterday, president-elect threatened german carmakers with a 35% tax, a u.s. import tariff. he argues german automakers are better building u.s. auto factories if they want to sell to u.s. consumers. >> it will come with a press release these days. >> in other political news those days, president-elect trump is taking issue with one part of the house republican tax plan. in an interview with the "wall street journal," trump calls the border adjustment provision too complicated. the measure is designed to increase u.s. manufacturing by taxing imports.
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a number of global leaders are responding to comments from president-elect trump. french president francois hollande says europe does not need to be told what to do by outsiders, this after president trump did that interview with the london times newspaper in which he described himself a big fan of britain, endorsing the brexit vote. but predicting more countries would seek to follow the uk's example. trump also critical of angela merkel for her open stance on refugees, suggesting that nato is obsolete because it has not defended against terrorist attacks. provocative xhcomments going do here. germa >> that reaction across europe here has been extreme to those comments over the weekend. our davos lineup of guests starts now with the ceo of societe generale, frederick ouda
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joins us. let's kick off with some of those political developments over the weekend. your own president, francois hollande saying europe does not need the interference of the president-elect trump what is your response to that? >> i think beyond what is being said, what is important is that europe in this new world that you are describing with this transition may be doing something more fragmented and has to think about its future. there are elections in france, both in france and germany, europe and the eurozone has to think about this market. >> do you agree with president-elect trump? do you agree with the sentiment that another country might vote out of the eu? >> i doe don't think so. europe brings a lot of benefit, whether it's to the countries in the eurozone or not. >> do the people get this? >> no, there's a question mark,
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economically and have a security point of view. these are the two main items people think about. we need to provide better answers, more growth, more jobs, more security. i think personally we can do that better by being together than rather going on our own. having, again, even more fragmented europe and landscape. >> one of the other comments president-elect trump made is he suggested that the eu was run really as a project for germany, led by them. what's your take on that? is there different policy from the central bank where policy is shared that would benefit countries that germany doesn't let it happen? >> we still have in the eurozone didn't economies, different competitiveness. more than ever i think what we have to design is a mix between more convergence of the economies, perhaps the fiscal policies, and then effectively maybe more solidarity. once we consider we cannot have the same economy everywhere. so i think, yes, it's imperfect,
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but we need to -- we can make additional steps towards more efficiency of the eurozone and europe. >> wilfred brought up the european central bank. what's your prognosis for the policies of mario draghi? will he not need to be as stimulatetive or negative interest rates? >> among the positive signs i've seen in the last three months, one thing is probably that the central bank has more margin of maneuver if rates are increasing in the u.s., if the fed is normalizing. it gives more opportunity going forward beyond probably end of 2017 for the ecb provided growth is there, maybe inflation outlook is better to carry on normalizing. and exiting the negative investigate environment. >> we had a clear theme in the last couple of quarters of banks earnings coming out of the united states, banks were in the middle of q4 earnings for banks. the theme was clear for jpmorgan
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that they are gaining market share whether it's in trading or investment banking in part from european banks, whether it's deutsche bank's crisis, italian banking crisis or brexit. does it put increasing pressure on european banking space as a whole? do you feel like the u.s. banks are gaining market share from you? >> the picture is a bit more blurred. it's not so clear in europe. they have the strategy and sometimes a retrench from certain businesses. u.s. banks have consolidated and benefited from an economy which is doing better than europe. so, shgs yshg, yes, profits can dynamic. beyond this, what's important for europe, you need to have a few strong european banks, and overall a strong europe and banking sector to finance the economy. still banks is the major component of the financing of the economy, not capital markets in europe.
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we might migrate to a system, but it will take some time. >> you came out after the uk vote and you committed to europe, now there's talk that if the uk does leave the common market, that could be a problem for the banking seconder in particular. how are you thinking about it? >> i'm shot sure it will be a problem for the banking sector. it are add more complexity to adapt the design of the operations. can i say for a bank like societe generale it's not a big deal. we have a presence in the uk and eurozone, with licenses, premises, people, brands. i think it's not a big deal. for the banks, which might have concentrated resources in london, yes, they might have to rethink and put more people in europe. but i don't think it's more operational complexity and of course a lot of energy which will be dedicated to the negotiations. i would have preferred the uk to stay, but we have to live with that and adapt. >> you mentioned the better
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interest rate environment in the u.s., a drastic change in that, bank share prices in the u.s. responded accordingly, also hopes of deregulation. do you look at the u.s. banking environment at the moment and wish you had something similar back here at europe? >> again, we have different models, different financing models, different cultures. we need to find that not only which works for europe. as part of this, we should not be naive in terms of regulation. yes, we need to exit this negative rate environment and then we have, of course, to adapt our business model to the challenges the new technologies, digital technology changes and capitalize on where we are strong. and where we have been able to keep our clients and very loyal clients. i'm positive on the long-term outlook. >> frederick, thank you very much for joining us this morning. >> thank you. >> our first guest from davos. we are just getting started here. it's chilly, but we have our heat warmers.
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xi jinping is about to address the world economic forum. that's happening this hour. it's the first time a chinese leader has been in this forum. up next, ian bremer joins us to talk about the future of the washington/beijing relationship under the trump administration. he'll be here to react to any headlines which we will bring you. >> the first time for president xi. the first time for "worldwide exchange". wie back in a we're back in a couple minutes. with the xfinity tv app,
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welcome back to a special edition of "worldwide exchange" live from davos, switzerland from the world economic forum. the end of this week marks the transition of power in the united states and along with that comes a plethora of questions about u.s. foreign relations. our next guest analyzes global risk, joining us now is ian bremmer, president of the euasia group. >> this is the year of geopolitics at davos. >> the significance of xi being at world economic forum. >> the biggest event of the week is inauguration with trump saying he is anti-global investigation. and the biggest event at davos, the chinese president saying he
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is supporting globalization. it's the end of paxamericana. it's about consumption which the chinese can drive economically, but they can't drive political negotiation, a sense of citizenship or global institutions. so there is more unease with what the world will look like if china will do the leading. >> how big a step of this is china taking a bigger share of impact over the world? >> china didn't want trump to win. they don't want the uncertainty. they recognize there's an opportunity for them to pick up influence with other countries in their region. they're a trade partner for a majority of the countries in the world. that was happening anywhere. in the philippines, president duarte was saying china is the future, not the united states.
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they saw the future was increasingly china. china doesn't like the idea that not only is there massive uncertainty around trump but specifically the u.s./china relationship on north korea, taiwan, south china sea. trump is picking a fight. his advisers are, rex tillerson, that's a serious problem for the chinese. the question is does xi jinping make a district response to that today. >> the question we're trying to figure out on cnbc is does it put the u.s. at an economic disadvantage if china starts to lead the push towards globalization, free trade and other as pecpects that should o the world economy? >> an ameriexit is different than what --
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>> ameriexit is what trump is doing. we can coin it here. that means that the united states is not taking on a lot of burdens. but we are the biggest global market. if we tell the mexicans, you know what? you'll redo nafta. the mexicans will redo nafta. they'll do it fast. the japanese, we didn't give them transpacific partnership, abe got his butt on a plane and gave a golf club to trump saying we're still your buddy. that doesn't mean that long-term the united states is not going to be hurt by china developing architecture and having much more political influence over these countries. >> the sorry brits. fair enough. fair enough. >> he won't let that go. >> in a different article you compared the leadership styles of trump with president erdogan and putin, and expressed
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surprise that that access will be forefront of the coming administration in the u.s. will that last? are those three that similar? >> they're really about personalities. in both cases you have strong authoritarian leaning personalities that done care about the values of the countries underneath. so the fact that trump would say i'm prepared to work as closely with putin as i am with an la merkel, that shows you the ideas of liberal democracy, rule of law, independent judiciary, support for a free market is not what's driving trump. it's can i put points on the board? it's easy for an individual trump to put points on the board quickly with an individual vladimir putin or an individual president erdogan. is that going to last? the fact is as quickly as an individual can get into an alliance, an individual can l d leave one. the alliances around the world are so durable because they're
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codified in common values and institutions broader and deeper than just one leader. so the relationships we're talking about now, never mind the scandalous issues of russian hacks against the u.s. and the rest are clearly built on much weaker foundation than the appliances that have really underpinned the globalized americanized world since world war ii. >> one of those is nato what is he accomplishing by criticizing nato at this point. >> obama started criticizing nato by saying a lot of countries need to do more to actually pay. if trump is willing -- >> obsolete takes it a step further. >> obsolete was the headline grabbed by folks. if you read the entire speech, he also said nato did some good things. we know he loves making these headlines. if you are countries in europe right now that are themselves thinking about more exits, the fact that he supported further exits from europe where obama said we wanted to keep europe stronger together, trump doesn't
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see an advantage in a strong europe. not as a nato partner, not as a european bloc. i think that's an enormous worry. china doesn't see much advantage in a strong europe either. russia wants a weak one. at least in the united states, we have the biggest market, technology and geopolitical stable. in europe, you have a problem. you could make the argument, go back to the brits, if you're going to leave, the best argument for leaving is that you think europe is collapsing over the next 5, 10 years. the election of donald trump furthers the cause and case for why you want to go brexit. >> we will hear from prime minister theresa may making that speech in an hour's time. >> and president xi within an hour. our set up here at davos, ian bremmer joining us. >> still to come, we state down with jpmorgan chase international chairman, jacob
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frenkel. before we hit the break, we are making the most of our trip to davos. sara put her currency knowledge to the test when we went to buy swiss chocolate. i laugh, i sneeze...
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welcome back to "worldwide exchange." we are live in davos, switzerland for the world economic forum. let's get to some of today's stocks to watch. british american tobacco buying 58% of reynolds american it doesn't already own for $49 bil. they previously offered 47 billion. noble energy is acquiring clayton williams energy for $2.7 billion. that deal expands noble's presence in west texas. hyundai plans to boost investment in the u.s. operations by 50% to $3.1 billion over five years. it may build a new u.s. factory. hyundai has a plant in alabama and its kia unit has factories in georgia and mexico. still to come, jacob frankel, chairman of jpmorgan
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chase international will join us. stay tuned. we're back in a couple minutes.
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good morning from davos, switzerland. president xi jinping says globalization has become pandora's box in the eyes of many. highlights from his speech happening in a moment. markets bracing for may. investors are waiting on a key speech from britain's prime minister. she is expected to lay out a
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clean break from the european union. and the trump transportation, as the president-elect preparing to take office on friday. we'll tell you what some of the biggest names are saying ahead of his inauguration. it's january 17, 2017, you're watching "worldwide exchange" on cnbc. ♪ good morning. welcome to "worldwide exchange." a special edition live from davos. i'm sara eisen. >> i'm wilfred frost. this week it's a gathering of ceos, political and business decisionmakers. joining us this morning, howard frankel, famed violinist
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anne sophie-mutter will join us. >> hopefully we'll have music at the end of the show. let's check in on the global markets. last week, we saw that continued rotation in stocks. the nasdaq leading the charge. up a percent for the week. the dow down about 0.3%. this morning we expect to open lower by 52 points on the dow. let's look at european trait, for the most part it has been negative. you might say not too negative given some of the headlines over the weekend. suggesting that more countries will follow the uk and have their own versions of brexit. right now down about 0.2%. the ftse 100 down slightly. a third of a percent even though the pound is markedly stronger asian trade sees the nikkei
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sharply in the red because the yen is strong, dollar is weaker. the rest of asia holding up fine ahead of xi jinping's speech. >> let's look at commodities. currencies as well. oil prices right now are stronger. we have a nice 1.7% pop in wti above $53 a barrel. international benchmark brent over $56 a barrel. as for the ten-year treasury note yield, some buying of treasuries. there's your ten-year yield, 2.33, off the highs of where we were a few weeks ago. the u.s. dollar, the pound as wilfred mentioned rebounding from that weekend sharp slide below 1.20. the rest of the broader dollar is weaker against the yen and the euro. basically we have seen a bit of a reversal of a trump trade.
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that looks like it continues. weaker stocks, weaker u.s. dollar, lower treasury yields. gold getting a boost from that weaker dollar. so is oil, so are other commodities across the world. let's show you gold prices, up 1.7%. >> dollar down last weekend, third negative week out of four. pronounced moves to the south. >> a bit of a reversal. >> among the big headlines, chinese president xi jinping is defending globalization at a time his country's power is coming under pressure from soon to be inaugurated u.s. president-elect trump. president xi says many people are wondering what has gone wrong with our world. he suggests globalization has become a pandora's box in the eyes of many. >> there's no point in blaming economic global saization for world's problems. that is not the case and it will not help solved problems.
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from the historical perspective, economic globalization results from growing social productivity and is the natural outcome of scientific and technological advances. it is not something created by any individual countries. >> defending economic globalization. he said there is no point in blaming economic globalization for the problems. just a fascinating tone to come from a communist leader ahead of the leader of the biggest capitalist economy taking charge this friday. >> singing a different tune. >> opposite tones. >> the fact that president xi is here for one makes a big statement at the world economic forum which brings together ceos from around the world, not just ceos, policymakers, former policymakers and current leaders. the fact that nobody officially is here from president-elect trump's team, where in the past
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they have been, makes a statement as well as president xi being here. setting themselves on opposite ends of this globalization free trade, integration, which includes also the european union kind of stance. where the world economy is going for several years is trump going to set us back or is there going to be more of a showdown between these two countries? among the top global market stories, british prime minister theresa may will deliver a speech later this morning outlining her 12 priorities for upcoming brexit talks. she is expect to say britain will not seek a deal that leaves it half in and half out of the eu. they is consideri joining us now is kay job frankel. >> been at davos for 31 years.
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consecutive years. >> that's 30 years more than the two of us. it is great to be here. great to have you with us. let's kick off with the headline. president xi speaking right now. how significant is it that he, a communist leader, is defending international economic globalization and liberalism? when we know the president-elect, donald trump, has very different point of view on these topics? >> there's no question it is significant. i believe that also u.s. policy will eventually converge towards recognizing the benefits. there is a lot of rhetoric in all of this. if you ask people who are against free trade, they will never tell you they are against the benefits from trade. they will tell you that they are against some of the negative consequences that some parts of society are suffering. if that's the case, then the focus of debate should not be about trade, but how to
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alleviate the problem. there are clear answers, job retraining, fiscal measures, not trade policy. free trade is always better than no trade. we need to ensure that it is inclue sive and the benefits ar shared. >> why do you think people are worried about the rise in protectionism than the markets? >> the markets are still holding record highs because of other issues. in particular what has happened for a long time, interest rates where held and are being held for too long, too low. it pushed the investment strategies towards financial assets, has created occasionally inflated financial markets, has created the disconnect occasionally between financial and the real economy. that's why i'm so much in favor
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of normalization and even increasing the pace of that normalization. the u.s. is ready for it. economic growth is recovering. unemployment has declined to very low levels. labor force participation is in place. the duration of unemployment is lower. inflation picks up. what else do you need in order to normalize? importantly normalization does not include only incosts costs d be worried about, lack of normalization weakens the financial sector, banking, pension, all of those areas. we need to keep those in mind when we discuss the overall economic policy. it would be did news if the fed continues and if it entails in it, changes in the exchange rate. >> i want to ask you about your
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view on european banking at the moment. it's been a tough year with brexit, particularly deutsche bank's issues, italian banking issues for european banks. could the private sector help out on those issues? could jpmorgan have stepped in and helped deutsche bank and offered to buy deutsche bank during those moments? >> obviously we do not discuss here strategies of jpmorgan. i can talk to you about the importance of a strong financial sector everywhere including in europe. i must say, if you look today -- i'm not avoiding your question, but only directing it to the areas that are my competence, the u.s. financial industry today is much more robust than what it ever was before. capital in the banks is higher. d leverage is lower, some are
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constructive, some are not constructive. one of the reasons for the extraordinary optimism in the markets now in the post election is exactly the fact that people have the feeling that the policies will be somewhat more plansed, more business friendly, and without strong business sector, you don't have a strong economy. without strong banks you cannot have a strong economy. it's in this regard -- jpmorgan of course is one of the strongest banks. i'm proud to be associated with it. it is always being contributing to the strength of the society and understanding that we recognize that a strong consumer and a strong support for the financial industry is something which is good for us, good for the economy, and good for the world economy. finally, is your main message one of optimism? that you think the fed should normalize and the world is getting better? >> it's my reading of the map of
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optimism, the u.s. is recovering. the fact that the fed will validate it is the best test. we the fed, who have been waiting for so many years because we were concerned. now we see the bright side of the picture and we are willing to lead the way. i say lead the way because the fed is an important player. let's not condone the only game in town syndrome. the federal reserve or any central bank should not be the only game in town. it's part of an orchestra. it has many instruments. some instruments are more musical than others. it requires the rejoining of other parts of the policy. especially in the structural area. >> you brought it back to our music theme. >> thank you very much for joining us. jacob frankel, chairman of jpmorgan international.
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the chairman of jpmorgan, the main bank, will join "squawk box" tomorrow. coming up, we set down with kenneth rogoff to discuss a wide range of topics, including what he is titling the trump deficit. >> we are here in snowy davos, wits la switzerland with more.
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welcome back to a special edition of "worldwide exchange" live at the world economic forum in davos, switzerland. the incoming trump administration expected to be aggressive in using budget deficits to fund top priorities. our next guest says when one party is in firm control it has a big incentive to borrow knowing it won't likely be the one to foot the bill. joining us is ken rogoff. we have a lot to talk about, global affairs. let's start with your comments on the deficit. what is your point here as the market and economists try to digest and game out some of the trump plus republican congressional policies? >> there's this nonsense that the republicans don't like deficits and the democrats do. if you go over historically,
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reagan ran big deficits, bush ran big deficits, clientnton di the opposite. if they can get tax cuts, infrastructure spending, people may say the deficits are bad, i don't think it will stand in the way. >> will it be a good thing or a bad thing for the u.s.? does spending that boosts deficits to a point where we already have high levels of debt to gdp, will it backfire? >> i don't think anybody argues about the infrastructure spending. that helps with growth in the long run. the tax cuts are much more debatable. i don't know what the stimulus effect will be. it's not good for inequality. i personally think the bush tax cuts were already a mistake, even though the reagan tax cuts were a good idea. >> so, is your bottom line that austerity is sort of out the window, that used to be in vogue. now it's about stimulus, and this is a positive thing for the global economy?
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>> president obama had said to the republicans wait a second, forget about my spending priorities, let's do tax cuts, you would have got the deal done in a moment. the tax cuts are not such a good thing. but i think the infrastructure spending, the deregulation is going to be provide a growth boost in the short run. >> let's talk about more geopolitical themes at davos. president xi jinping speaking as we are speaking. do you think china will become not just the geopolitical leader of the asian region but the rest of the world given trump's desire to step back from world affairs? >> it's a long-run ambition. i don't think that will happen overnight. but clearly if the u.s. steps back, that creates a void. china happily steps in. it's remarkable having the chinese president come. it's never happened. >> what would you say to investors looking for some sort of economic takeaway from this? a shifting dynamic where china becomes globalization but the
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u.s. pushes back? >> i think it's good that the president of china is here. what's going on in the united states is pretty scary at some level. i'm puzzled why the obvious risk and uncertainty has not been priced more into markets. okay, it is going to be good for a while. but the erratic policy, what if there's trade, it doesn't seem to be in bond markets. >> why not? >> i don't know. i think we'll have higher inflation after a couple years. maybe we'll have higher growth. we'll definitely have higher risk. ought to be in bond prices. >> what do you make about trump's comments towards europe. some strong words comparing merkel to putin, saying he trusts them alike. saying other countries might do their own version of brexit. a lot of worry here at davos from those comments. >> i don't know what to make of it. there's a certain amount of strategizing. it's true that u.s. bears a disproportionate cost of global
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military expenditure. on the other hand, does he propose to have french generals share the decisionmaking and responsibilities? you can't have it both ways. >> you have been looking at cash, alternative currencies, you made some headlines on digital currencies. are we in need of a new system? people have been calling for this sort of thing for a long time, new international monetary system or a new sort of system where the dollar shares the global stage. is that where this is heading? >> pretrump the dollar has never been more dominant. it's actually by some measures as dominant as under the old fixed exchange rate systems after world war ii. i think there's some changes needed. i would recommend phasing out large denomination notes. certainly with what we see in europe, with the problems in the eurozone, we're not headed for a world currency any time soon.
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>> thank you very much for joining us. >> thank you for having me. >> ken rogoff from harvard university. coming up, famed violinist anne-sophie mutter, and in the next hour, cnbc coverage from davos continues with "squawk bo box". many more executives from around the world will be on. stay tuned, you're watching "worldwide exchange." he's the green money you can spend now. what's up? gonna pay some bills, maybe buy a new tennis racket. he's got a killer backhand. when it's time to get organized for retirement, it's time to get voya.
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violini violinists, debuted 40 years ago in switzerland. >> yes. one of the new artists in switzerland, and then i was lucky enough to start working. >> you're here this year receiving the crystal award last night. >> yes. >> alongside forest whitaker and shakira. >> thank you very much. >> and you have a new album coming out? >> yes, i have a new album coming out, but i felt it was important to bring young musicians and share music, and i was also pointing out in my speech how important it is we focus on world hunger, because every three seconds a child is dying of hunger, which is a topic which also has to be addressed in davos. >> a lot of people see a bunch of ceos from around the world and prime ministers and policymakers, and they wonder what are artists doing here? >> yeah. >> what is your role? >> i think my role is like the
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one of forest whitaker or shakira. we all have social causes on our agenda. we try to make the world a better place. it might be benefit concerts, save the children is an organization i work a lot for. i think artists not only share the art but give back in terms of society. >> we had been hoping that you would be able to play, but you can't -- >> it's too chilly. >> your violin is so valuable it could crack. how much is your violin worth? >> it's a strad from 1710, but such an artwork has to be preserved for generations to come. so i'm unable to really, you know, expose it to minus 15 degrees. >> we quite agree. not least because you don't want to expose your fingers to that. >> fingers are fine. not the old strad. >> i once played the violin back in the day. i failed any single grade.
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so also good -- >> can't believe that. >> terrible. thank you very much for joining us. >> thank you very much for having me. so, just the last 30 seconds or so to go, the dollar. regaining -- falling sharply, having fallen three weeks out of four. that's an interesting softness. the turn around from the trump rally. >> i'll be watching the color and commentary from global ceos. they'll be talking on "squawk box" in the next few hours about what they see, how the shifting winds of populism with chinese president xi for the fist time being here at the world economic forum ahead of the inauguration of president-elect trump talking a very different message when it comes to globalization and free trade. we'll watch for all of the comments from the business leaders from around the world. >> and theresa may due to start making her speech in london outlining her views on brexit. the pound has been a big mover in the last 48 hours off the back of that. all of the reaction will be
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coming up throughout the day on cnbc, including a great lineup of guests on "squawk box." >> we'll see you back here tomorrow, live from davos at the world economic forum. that's it for us. have a great day. you got the amazing new iphone 7 on the house by switching to at&t... what??.... aand you got unlimited data because you have directv?? (laughs to self in disbelief) okay, just a few more steps... door! it's cool! get the iphone 7 on us and unlimited data when you switch to at&t and have directv.
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good morning from the mountains of switzerland. the number one topic at the world economic forum this year, yep, president-elect trump. just days from his inauguration, he's calling a key part of the gop tax plan too complicated. gm adding to jobs. the automaker will announce new plant investments in the u.s. responding to the president-elect's tweet storm. and at&t ceo randall stevenson made the trip to trump tower. he will tell us about that meeting, the future of the deal with time warner and much more.
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it's tuesday, january 17, 2017. "squawk box" begins right now. ♪ good morning. welcome to "squawk box" on cnbc. we're live from the world economic forum in davos, switzerland. i'm becky quick along with joe kernen and andrew ross sorkin. we have a mega lineup of guests. joe mentioned randall stevenson. we'll talk with arnie sorenson, brian moynihan, david cody, marc benioff, matt damon and many, many more guests. before we jump into that, let's check the markets and see what's been happening. the dow has been moving further away from that 20,000 point level. u.s. equity futures are under

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