Skip to main content

tv   Worldwide Exchange  CNBC  January 20, 2017 5:00am-6:01am EST

5:00 am
good morning. today is the day the world is watching as billionaire businessman donald trump will be sworn in as the 45th president of the united states. what's next for wall street? stocks have been on a roll since the election. we debate where the markets are headed after the transition of power. and follow the money. two billionaire investors reveal their post election positions. it's friday, january 20, 2017, "worldwide exchange" begins right now. ♪
5:01 am
good morning. welcome to "worldwide exchange." i'm sara eisen. >> i'm wilfred frost. good morning to you from me as well. we're coming to you for the final time from the world economic forum in davos, switzerland. our special guest this morning include former house majority leader eric cantor, and ceo done bear, we will talk with them about the presidential inauguration in washington. in the next half hour, a conversation with mary erdos. what a week it's been. lots of reviews as well. >> i would say that while president-elect donald trump is not here, the chinese president has been here. the new british prime minister has been here. donald trump looms very large in all the conversations in davos.
5:02 am
american ceos, american ex-politicians are in high demand getting a lot of questions from some foreign counterparts about what to expect from a trump administration, from the markets, foreign policy. >> the uk chancellor, phillip hammond is speaking at the moment. interesting comments he made about trump and what it means about the future of europe. this morning we are pretty much mixed. the dow is slightly in negative territory. the s&p and nasdaq slightly in positive territory. coming off the back of a fifth day in a row of declines in the dow. the dow is almost down a percent for the week. the third negative week in four. the worst sector has been financials down 2.1%. the dow is expected to open
5:03 am
slightly positive by 22 points. ten-year treasury note, getting close to 2.5% on the ten-year. we nearly went below 2.3 two days ago. so yields have moved higher over the course of the week. breaki ining economic news of asia, the chinese economy grew 6.8 in the quarter, compared to the prior year. in japan the latest reuters survey showing japanese manufacturers morale rose to a 2 1/2 year high, but it shows con if i decisions slipping over the next three months amid global uncertainty. let's so he you whhow you what overnight. a year where china hit their
5:04 am
target. >> they just manage to do it. >> this was a year that started out, worst start to the year for stocks for the u.s. and a big concern was china, whether it would face this hard landing. its currency was de-valuing sharply. the year they managed to avert that. >> long way we've gone in a year. still some caution over the course of this week as being too bullish. >> and what happens with trump and trade tensions. >> let's look at europe. uk retail sales declined by 1.9% in december. the sharpest slowdown since april 2012. european markets, as you can see, pretty much flat. just below negative. yesterday the ftse 100 did declin decline. >> as for the broader market picture, let's show you what's happening on the commodity front with the price of oil. 52.04, just breaking above that
5:05 am
level again. up 1.3%. some strength like we saw yesterday. brent, 54.79, up more than 1%. natural gas goes the other way. as for the u.s. dollar, this has been a big story at davos, the strength of the dollar, how that is inflicting pain on emerging markets. countries in particular. the dollar strengthening, 0.2% against the euro, stronger against the yen, which bodes well for risk sentiment overall. stronger against the pound. steven mnuchin speaking yesterday at those hearings, the senate did say long term it's in the interest of the u.s. to have a strong dollar, keeping the tradition of his predecessors in the treasury department after the president-elect made some comments about how the strong dollar is killing the u.s. economy and business. as for gold, dollar strength typically yields gold weakness. let's show you what's happening there. yes. it's flat to declining.
5:06 am
>> let's look at some headlines from janet yellen, speaking on the eve of donald trump's inauguration. last night yellen suggested the central bank plans to raise interest rates gradually, while stressing that keeping rates too low for too long would be a dangerous move. >> i think that allowing the economy to run markedly and persistently hot would be risky and unwise. waiting too long to remove accommodation could cause inflation expectations to begin ratcheting up, driving actual inflation higher and making it harder to control. >> the takeaway over the course of the week from janet yellen is a slightly more hawkish tone yesterday and particularly the day before than people expected. that offsets the tweet you mentioned from donald trump earlier in the week that the dollar is too strong. at the moment rates will go up and donald trump can't do much about it. >> because we know who is really in control of the dollar, the federal reserve, monetary
5:07 am
policy. talking to some bankers, talking with morgan stanley's james gorman yesterday about the rate hikes, that's one of the key underpinnings of this bank rally. the fact that yields have risen, post-election, continue to do so this week on the back of higher expectations of fed rate hikes, better economy, inflationary policies. >> i think we should mention that morgan stanley interviewed, we asked gorman is 4% enough? he said no, he said more around 3%. there is that optimism around the trump inauguration, it is everywhere. everyone is optimistic, for me that makes me concerned about markets. i feel that view of the world is out there. even the cautious ones are still upbeat. >> the cautious ones are cautious about foreign policy, geopolitical uncertainty, it's hard to see how that influenced the markets. so far it hasn't. they brushed off brexit and
5:08 am
trump. in corporate news, shares of ibm are slipping. the company recorded its 19th consecutive quarter of declining revenue. still latest results beat wall street estimates. and ibm is offering an upbeat full year earnings forecast. growth areas such as cloud-based services and analytics. shares not reacting positively. they're lower. american express trading lower. the credit card company posting an earnings miss, blaming higher marketing spending and promotions aimed at keeping up with the competition. the loss of the costco credit card business also weighed on results. back to the top story, the u.s. presidential inauguration. hedge fund manager and trump supporter john paulson offering an optimistic view of the president-elect's policies. paulson confirmed he increased his long-term exposure to stocks
5:09 am
saying the president-elect's tax proposals will help boost corporate earnings. the hedge fund manager helped play a role in shaping trump's economic agenda. and george soros striking a different tone. he called the president-elect a would-be dictator who is going to fail. soros donated millions to hillary clinton's campaign. reports say he lost more than $1 billion in trades in the post-election rally. despite his losses, soros says he still believes the market is heading lower, suggesting uncertainty is the enemy of long-term investment. >> cue the countdown clock. less than seven hours go until donald trump becomes the president of the united states of america. joining us in davos, you couldn't ask for a better pair of guests. eric cantor, now vice chair and managing director at mullis and company, and done behr, he served as white house communications director under president clinton. welcome. happy inauguration day.
5:10 am
>> good morning. >> don, i'll start with you because of your experience in speech writing, you were one of bill clinton's chief speech writers, what does president-elect trump have to do today when he speaks to a divided nation. >> this is a day to look forward but i can't help but look back. 20 years ago now. 5:00 or so on the east coast, i was awake, trying to finish president clinton's inaugural address to get it ready. >> day of? >> sure. we were always working until the very end. you look forward, what does he have to do? he has gotten where he has got ton by breaking molds, setting the established order on its heels. president clinton in that address, 1997, talked about wanting to be the repairer of the breach, to bring america together. donald trump needs to do both. he needs to strike a tone he hasn't done thus far and it's
5:11 am
been hard for him that he is a repairer of the breach. he can maybe unite america not just divide america. it will be hard for him, but also show he's a breaker of the mold. the people who elected him are expecting him to shake it up. finding that balance will be difficult. >> the nation has been divided since the vote. we've had protests both from lawmalaw ma lawma lawmakeers who won't even go to the inauguration, does this becoming president move things forward and allow people to forget about the vote itself and now get behind the president? >> i don't think there's any question that today at noon, east coast time, the shotgun start will go off. we will have a new president. there will be a new era. i think the mandate is to make america great again. as you said just a minute ago, the atmosphere is of confidence. i know the markets generally are looking at lower tax rates, less
5:12 am
regulation. but i think in talking to some of the folks here at davos, there's no question they're looking to see america grow again, begin to reinvigorate global growth. >> it's not all good news. we've seen the tweets, unp unpredictabili unpredictability, uncertainty, words, and now we'll have to watch the action. the global community, eric, you must be getting a ton of questions. >> my advice to those who are uncertain and who question is, look, i've been there. you know, when push was first elected, then president obama was first elected, now when you look at the inauguration of somebody like donald trump, we cannot look at him in the same way that we looked at other presidents. nor can my former colleagues and friends on the hill look to these tweets, signals and statements in the same way they would have looked at a president bush or otherwise. it will be an interesting time. i'm optimistic. i'm optimistic that america will
5:13 am
begin to grow again and help everyone see a better future. >> eric is optimistic. lots of people here at davos have been optimistic. can you gauge for us what level of optimism is already out there and whether there's room for disappointment or positive surprise as we move actually into his presidency? >> i think it's a false choice. the people want to be optimistic and believe that some things will begin to happen. let's be honest. our government, national government has essentially done nothing for five years since 2011. eric understands that very well. this is a chance, perhaps, to get things moving again. there will be some actions that will be taken, they won't make everyone happy, but the fact of taking actions, doing some things, tax reform, reregulation, other activities that will go on, that's a positive thing. it will send signals that things are happening it will help to generate growth that said, the
5:14 am
volatility is very risky. and people are trying to figure out how to factor in that risk. we just don't know where that is. >> to wilfred's point, is the market taking for granted the fact that we don't have a divided congress anymore? for instance, tax reform is painted as this very stimulative, positive thing, but it will be complicated both politically and in the details. we already have this big controversy over the border adjustability rate, will they be able to pull it off and by when? >> yes, i do think they'll be able to pass tax reform. there's a reason we've not had comprehensive tax reform in the united states since 1986, it is difficult and complicated. with the unified republican government, much more business friendly to create jobs, tax reform is an imperative and it will happen. >> who is the key people inside the white house? he has created special advisers
5:15 am
just one level below. who are the key people? >> this will be counter conventional. with that many special advisers and that many people, all of us not certificate be who the key people are, there's a key person, it's the president. donald trump has shocked everyone to the extent he's remained in control of his message, of his enterprise, moving his own campaign and now his administration forward. certainly, you know, you have an interesting array of people from steve bannon, who is the chief strategies, reince priebus, the white house chief of. that person at end of day has to make sure the operation, which is an intricate and difficult operation, produces results. >> what is the biggest test for him, the biggest challenge? is it on the foreign policy front, from the middle east to russia, to china, things are bubbling up all over the world. >> there's no question. he comes in with a very, very
5:16 am
volatile global situation. you mentioned geopolitical risk out there. it's really unprecedented. so, you know, he'll have to work his way through. as we have seen in some of these senate hearings, confirmation hearings, you have people like general mattis, people like rex tillerson, people used to operating on a global stage, some in the private sector, others with military services, with the interests of our country in mind. i also think, listen, number one is to try and make sure that the people at home see a better future, more jobs, more growth. that's where the test will be. that's why it's important they get off to a good start, get the bills rolling. obama care repeal, replacing that, getting that done, going on to tax reform. >> i dpree with that. i want to weigh in on that. all the talk about process, how long it will take, the public is inpatient. it feels that it's been waiting. that's what made it possible for donald trump in part to be
5:17 am
elected. in part. if we don't begin to see some results, a real impact for people out in the country who feel left behind soon, there's no telling where this might lead. >> you took us back at the start to '97 when you wrote the speech for president clinton at the inauguration. another part that people watch is the seating plan, who is there. how important is that? who will you be looking out for? will there be some surprises there? will we get an indication of who will be influencing the president based on where they're sitting? >> it all matters. everything matters. this is sort of court politics. though you mentioned president clinton, so bill and hillary clinton will be there. it will be an amazing situation today. i think in our history we have not seen it that often. though it has happened. this was an enormously close election. i'm sure cameras will be trained on them. we'll be wondering what their reaction will be. >> on her. >> exactly.
5:18 am
of course president obama. how he is going to relate to this. they will do a good job of being quite politic. it's an interesting, dramatic moment. from the standpoint of the court politics, who is seated where, the like. there's always a lot of power playing going on. >> get your popcorn ready. gentlemen, thank you for kicking off a historic day for us in davos as we look to washington. eric cantor and don baer. one thing hard for trump to top, obama's stock market tenure, over the last eight years, averaging 12% a year, second in history to bill clinton. >> the other thing he will hope he doesn't do is mess up the inauguration, they had to have a redo. >> coming up, the stocks to watch. we're back from davos in a couple minutes.
5:19 am
e e'thnn?
5:20 am
pameilnekeend remeo tadirectv now. stream all your entertainment! anywhere!
5:21 am
anytime! can we lose the 'all'. there's no cbs and we don't have a ton of sports. anywhere, any... let's lose the 'anywhere, anytime' too. you can't download on-the-go, there's no dvr, yada yada yada. stream some stuff! somewhere! sometimes! you totally nailed that buddy. simple. don't let directv now limit your entertainment. only xfinity gives you more to stream to any screen. much more still to come from the world economic forum in davos, switzerland. up next, the ceo of campbell's soup, her take on the consumer and the economy in the trump era. we'll be right back.
5:22 am
5:23 am
soe exterfety ger st bumeflies, feefs u timheti pow emo[immeffecttitis frany al nhexneni bappypy .tli ttwmes s..ffebralspeffee .. fel?sohewa iwoof caeateteltings. talkyo u timheti pow
5:24 am
we've been catching up with a long list of corporate leaders in davos this week. among the conversations, i sat down with denise morrison of campbells soup, and what she's hearing about optimism versus pessimism in the trump era. >> there's an optimism about reducing taxes, regulation reform. i think that anything that will give the consumer some relief at least will be good for our business, and good for the country. >> does that mean your level of optimism is high? >> i plan to engage. i think that ceos have to have a
5:25 am
seat at the table and influence policy. >> you've been talking about consumer trust. >> yes. >> i did a panel with edelman on the trust barometer, which showed a striking decline in trust that people have in institutions. and i do think, though, that's an opportunity for companies to earn trust. at campbells, you know, we're starting with transparency. they want to know what's in the food, how it's grown, how it's made. we're being transparent with consumers. >> what do you see in 2017, in terms of moves your making to shift the portfolio and make some of these changes. >> we are engaged in innovation, new models of innovation. not only internal innovation, like the introduction of new
5:26 am
clean label soups that we introduced in january. and it's shipping and customers have well received it. but we also are engaging with entrepreneurs through our acre venture partner fund. since 2010, over 400 start-ups have had over $8 billion in funding. we created a fund to invest in entrepreneurs, an really see what disruption is occurring from farm to the way food is made, all the way through to the last mile delivery of food. >> denise morrison, the ceo of campbells soup. one thing that she said, this decline in trust of institutions, a big theme here at davos. i moderated a panel on healthcare and the declining in that industry, specifically pharmaceuticals, this idea that as populism arises around the world is so does that trust decline in institutions. chief among them is the
5:27 am
intelligence agencies in america. that's key to see what president-elect trump says about his new position, he appointed them, when it comes to russia and whether he continues to undermine the faith in those key agencies. >> and all of the attewe can d y key takeaways from this forum coming up. we'll be joined by s&p global strategist albert sheer. stay tuned, we'll have more coming up from davos, switzerland.
5:28 am
5:29 am
i am the future. i provide for my family. i will use my education to help my community. i will inspire our next generation of leaders. i am a college student, but i am only 1%. only 1% of college students are american indian. donate now, and help our numbers grow. ♪
5:30 am
good morning. inauguration day dawns in america. donald trump will be sworn in as the 45th president in less than seven hours from now. >> from washington to wall street and around the world, we'll bring you a global take on what investors and business leaders should expect from the new administration. it's friday, january 20, 2017, inauguration day, you're watching "worldwide exchange" on cnbc. ♪ good morning. welcome back to "worldwide exchange." i'm sara eisen. >> i'm wilfred frost. good morning to you from me as well. we're coming to you from the world economic forum in davos,
5:31 am
switzerland. we have been here all week. this is the final day. great week it's been. >> great week. >> final day. >> final day of an amazing week. everyone today is talking about trump. they've been talking about it all week what we can expect from the policies of the administration and the markets, a rally of more than 6% in the markets since the election. does it continue? >> let's look at the futures this hour. they were slightly positive a half hour ago it comes off the back of the dow declining for the fifth session in a row. the dow down 0.4% yesterday. it's down almost 1% for the week. it is set for the second negative week in a row. third negative week in four. this morning we are called higher by 22 points on the dow. the s&p and nasdaq also slightly higher. european trade has been flat for the most part yesterday, but we are looking at 1% of declines for the broader stoxx 600 in europe. the ftse 100 down 2% for the
5:32 am
week. the pound rebounded strongly. asian trade was mixed. hong kong down, japan and china up. china confirmed gdp of 6.8%. this morning bang-on the target. >> as for the broader market picture, oil prices are on the rise. 1% move higher on wti and brent. wti hovering around the $52 per barrel level. brent heading south of $55 per barrel. as for the ten-year treasury note yield, yields have been higher so far in the last hours or so. we just crossed back over to 2.50 on the ten-year yield. as for the u.s. dollar, which in many ways, it has been the center of the action here in trading of stocks, bonds, commodities and currencies, it's
5:33 am
a bit stronger here heading into trump's inauguration. stronger against the yen, that bows well for stocks overall, stronger against the british pound, 1 t.2303. gold is flat to negative there. >> donald trump will take the oath of office at noon eastern today. let's talk about his first 100 days. with us now is paul shear. thank you for joining us. >> pleasure. >> in terms of the meetings you've had over the course of the week, tell us the level of optimism priced in. is there room for him to have a surprise on the upside? there's room for a surprise to the upside. there are two mr. trumps, one is
5:34 am
pro business, pro growth, rolling back regulation, fiscal stimulus, infrastructure spending. that's the answer to secular stagnation, on the other hand there is a protectionist mr. trump. in probable terms, both of those are priced into the market. net net they've gone up if it turns out we're moving down the former path and the latter path is more rhetoric, bargaining, there's certainly room for, you know, further optimism. >> ceo of jpmorgan jamie dimon told us earlier this week, 3% to 4% growth can happen with the right policies. lloyd blankfein saying we could be at the beginning of a new cycle. what is realistic from an economist point of view? this is a fascinating discussion, a economist looks at this saying what is the
5:35 am
potential growth rate. that's driven by increase in labor inputs, increase in capital accumulation and productivity. if you are going to get from 2%, which is potential growth at the moment, to 4%, one of those three things has to do the heavy lifting. it's difficult to see how you get there. what i like about that, okay, i can pull it from pieces, but it's aspirational, setting the bar high. something that could unleash animal spirits. it will also be tough to get to 4% if you go that protectionist route. if you belive in the 3%, 4% route, it means you don't go the anti-trade route. >> you mentioned labor, we won't see jobs go down significantly, unemployment go down significantly. could this be spending that doesn't deliver and the debt
5:36 am
level goes up with it? >> on the labor market side, mr. trump is making a play on the participation rate, which has fallen 3% after the crisis, could go back to where it was. he's not really accepting the conventions. on the fiscal side, we would have liked to have seen this much earlier, maybe it's coming late in the cycle what it does allow is a rebalancing of the macro policy mix, which allows the fed actually to raise interest rates a bit faster than maybe it would have been able to do. that's got to be a good thing at end of the day. higher interest rates, that's what we all wanted for many years now. >> let's underline this conversation with specific focus on jobs. that's what trump ran on. he appealed to manufacturing states. he has gotten companies to announce, whether it was in the plans or not, that they will be hiring many, many jobs, still if you add those jobs up, it doesn't move the needle, as you know, on monthly job growth in this country. we're already, economists say,
5:37 am
near full employment. what's realistic to expect from him on the jobs front? could that hurt him politically? >> it is going to be a tricky thing. if everything's true about the stronger growth in the u.s., you will get a stronger dollar. that's going to be a head wind to bringing those manufacturing jobs back to the industrial heartland. you know, not a tailwind. you know, i think probably if this all works out well in a sense, one or two years out we'll be looking at it saying a much stronger economy. there is employment growth. participation rates have gone up. that u6 measure, which measures some slack. >> will it grow in manufacturing? >> no. we look around and say the manufacturing jobs didn't come back that much, but who cares. >> just to round things off, a davos question, instead of a trump question what do you get
5:38 am
from attendees here and if they have woken up and smelled the coffee -- you're laughing at my phrase. is there a sense of defiance against what happened the last year, ignoring it, or is there a sense of acceptance? >> i think it's more the latter. maybe i have gone to the wrong sessions or something, talked to the wrong people. but one theme i picked up, we had two global leaders put don't stake for free trade, xi jinping and theresa may. but there's a thing that globalization has to go after looking after the interests of people who have been left behind in the past. that middle class that slipped into the lower class. there has been a whole shift in the kind of paradigm here of globalization, we can't throw the baby out with the bath water, but we have to look after -- have to have inclusive growth. we are hearing this theme of inclusive growth.
5:39 am
>> baby out with the bath water -- >> it's stop and smell the roses. is that the version? >> i don't know. that's a more common one. >> smell the coffee. >> why buy the cow? >> what does that mean. >> why buy the cow if you can get the milk for free. >> making headlines this morning, david mason, former treasury official, being vetted for a top role at the federal reserve. reuters says he is a front-runner to be vice chairman for supervision. the fed's chief wall street regulator. he currently head's ge's energy financial services division. he worked for hank paulson at treasury in 2008. in his memoir paulson singled mason out for praise during the financial crisis. we'll watch some of those fed appointments carefully. back in davos we have been talking with corporate leaders about politics, markets and the economy. yesterday i had a chance to
5:40 am
catch up with michael dell. >> there is optimism among my peers in the united states. i think that's founded on what we see in terms of the high quality team that's been selected, a number of advisory committees put together as we have been involved in those discussions. the basic agenda as a pro growth agenda we think is positive. >> michael dell, of course, the ceo and founder of de dell technologies. he has this massive conglomerate of emc is going well. i thought it would be obvious that the bankers would be optimistic. i was wondering more about technology leaders. he did sound very much so. said he has been engaging with the administration in his own way and is hopeful for the relationship between big tech and trump. one of the big uncertainties. >> in the markets that's played
5:41 am
out. tech has outperformed since the start of the competitive banks which have pulled down a bit over the course of the week. she's been called the most powerful woman on wall street. an exclusive sit down with jpmorgan asset manager mary erdos. stay tuned, you're watching "worldwide exchange" live from davos, wiswitzerland.
5:42 am
5:43 am
5:44 am
. welcome back to the world economic forum in davos, switzerland. we spent the week talking with political leaders, ceos, bankers and business decisionsmakers. yesterday i sat down with mary erdoes and began asking her about the post election trump rally and what she's seeing in cash levels from her clients. >> there's a tremendous amount of cash from individual investors who have not gotten over the fear of what happened in 2008, will that happen again? all the way through to the largest institutional investors who, you know, really try to thoughtfully put money to work around the world, but with negative interest rate environment in many places, just challenging times, you have a lot of cash piled up. and i think what you're seeing is the excitement of change in the world.
5:45 am
some people think it's good, some people think it's bad, but it's change. so i think you'll see money being put back to work. >> the fact that we are in the u.s. seeing rates go up, and growth is picking up as well. does that mean that cash gets put to work in equities specifically? >> it gets put to work across the board. if you're in cash, maybe the first thing you don't jump into is equities. maybe you warm up and go through the capital stack and think about the risks you want to take. it's an individual question for everybody. it's a matter of what's going to happen and what will change in the world. when you look at what's happening in the u.s., with the inauguration, with all the excitement, and the change that's happening, i think people are excited about the u.s. stock market. and i think people are thinking this is -- i should not be waiting longer. i should not sit here and just have it sitting in, you know, almost zero yield and cash. >> it's been a tough year for active management in 2016.
5:46 am
how has jpmorgan done on that. and looking ahead, is it a good year for active managers or will passive continue to be the winner? >> if you take a long look at the investment management industry, it's always been a good thing to think pro actively about your portfolio. you are actively managing the decisions that you make on behalf of you, your family, in terms of risk, reward, do i like stocks or bonds, do i have a also horizon, and how i do think about the managers that invest that for me? when there's quantitative easing going on in the world, you get very strange anomalies. what we've had is money piling in to index funds, and therefore index funds or the general market is outperforming. all of that is changing. all of that started changing with brexit in the summer of last year. and now with a new presidential inauguration happening, and the people coming in to power, you
5:47 am
have a whole bunch of change, is that will take place. so we had lots and lots of regulations, most of them in place for good reasons, but they became overlapping. next thing you know, overlapping regulations start to stifle growth. they start to stifle lots of things. you also have the ability to think about taxes being reduced. that will affect lots and lots of companies. when you think about tax reductions, regulatory reductions, you have a great opportunity for some companies to do well. maybe others won't. it will be a long process of figuring out what the rules are, what the new regime is about. that makes for winners and losers. when you make for winners and losers, you need somebody looking at each and every company and figuring out which one you want to be the investor for. >> we've seen a lot of different sector and stock performance since the election. bank stocks have performed well. i'm not asking about jpmorgan stocks specifically, but what is the view at jpmorgan asset
5:48 am
management about the u.s. bank sector? has it run up too quickly or is there more to go? >> if you look at the bank sector it's a microcosm of all of the sectors, not just in the u.s. but all over the world. you think about taking clients out of country into other places, you think about money movements, we move $5 trillion a day at jpmorgan for clients around the world. when you think about the potential for global gdp to grow an interest rates to come up even just slightly, you have a very, very positive scenario for banks to be able to continue to invest, to lend more. if regulations just give us a bit more room in big able to continue to lend out excess liquidity, you can have gdp grow and the general economy doing much better. banks are a beneficiary of that. >> you are on the u.s./xhchina
5:49 am
business council. are you worried about trade? >> i'm worried about a trade war, it doesn't help either side. we're helping what is being talked about is just being talked about. i think people who have businesses in china and invest in china they're super exciteded about the long-term investment opportunities there. i think people are trying to look past the short-termism and think about where they want their investment dollars in the long-term. >> over 2 trillion dollars of asset management she sees. i would say the tone of that conversation was bullish and optimistic. very positive on the bank stocks from here after the run they had. >> her comments about trade wars, that's the consensus here. that they're hoping it's just talk. and it doesn't turn moo action. i think the real optimists here
5:50 am
in the room and some that have connections with the administration say what's what it is, it's the heart of the deal, opening negotiation to hopefully make for fair trade and not put up walls against free trade. >> i think the added point she said there, she gets to see this. cash levels are still very high across all of their clients. it suggests there's a lot of people that have not taken part yet in the trump rally. that's an optimistic take. >> still to come on the show this morning's must reads. lots of commentary in the papers, of course, ahead of trump's inauguration later today. >> before we go to break, a look back at our week here in davos. let's just say we had a lot of fun. >> we are here in davos, switzerland, wrapping up what has been a terrific week. >> it is the final show, but still lots more to come including our final takeaways when "worldwide exchange" returns.
5:51 am
5:52 am
5:53 am
an epic week in davos, all the guests, all the shows. >> top of the list is this stunning setting. >> i liked the chocolate. eating bread and cheese for every meal. almost spilling on the ice nearly every day. >> i got very good picking myself up. you did enjoy the box they gave you, but you don't have one today. >> i don't have a box. i'm too short. ah! >> we had fun. welcome back to "worldwide exchange." time for some must-read stories. we're reading the papers today. my pick in the "wall street journa journal", the audacity of trump. the public is better exposed to mr. trump's agenda than his character and temperament. tax reform, improving roads and bridges, fixing healthcare, enjoy widespread support.
5:54 am
if voters are ambivalent about mr. trump personally, he has a policy opening to earn their support. that summed up the debate, i thought, and some of the opinion polls which shows lower fav favorabfavo favoribility rating for a president about to take office, and higher favorability ffor hi policies at large. >> that's the big story today with the inauguration out. the story of the week has been the world economic forum in davos. my pick is in the uk times, davos man is lost in a blizzard of complexity. the more time you spend in the bowels of the congress centrum, the congress center, the easier it is to convince yourself that the trump inauguration will
5:55 am
never take place and britain will remain in the single market forever. he goes on to say normally daf voes man is prenaturally self confident but this year there was an unnatural sense of befuddle m. even during the financial crisis, politician and businessmen here thought they had the answers, now they walk around like zombies. so trying to work out the next steps to get the global economic liberal agenda back on track. clearly some people have been positive, others say they're moving on. ed summarizing the view that perhaps they haven't. >> one thing i repeated over the week is that there is some consensus around one fact, nobody wants to make predictions, because the predictions have been so wrong. a lot of this crowd, a lot of us have been blind-sided by the
5:56 am
populism and these waves. the market predictions were also dead wrong. the ftse 100 is not far from a record high. >> up 14%. >> the stock market has rallied since the trump election. the question is what comes next? is the inauguration today going to be one of a sell signal? which some are thinking. on the other hand, bankers here in davos saying we could be on the brink of something big if we get these policies and they look like they're going in the right direction. >> great to see those two different points of view, soros bullish, paulson optimistic. those stories on web web. the other takeaway from davos for me, the sense of optimism is pretty much universal. different levels, but everyone is optimistic moving forward. that has to be considered in terms of how much is priced in. it's going to be quite significant. >> today we will be watching the historic inauguration, cnbc has special coverage of this all day. we're also going to be watching key earnings from ge and procter
5:57 am
& gamble. little in the way of economic data. that's a wrap for us here. >> "squawk box" will pick it up from washington. with the xfinity tv app,
5:58 am
anything with a screen is a tv. stream 130 live channels, plus 40,000 on demand tv shows and movies, all on the go. you can even download from your x1 dvr and watch it offline. only xfinity gives you more to stream to any screen. download the xfinity tv app today.
5:59 am
good morning. welcome to "squawk box" live from the nation's capital. in about six hours donald trump will be sworn in as the 45th president of the united states ushering in a new era for the country, the markets and the economy. we have a big lineup of guests over the next three hours to discuss the challenges facing the trump administration from healthcare to tax reform, plus we'll look at what the first 100 days will look like for the new commander in chief. it's friday january 20, 2017, it's above zero degrees and "squawk box" begins now.
6:00 am
good morning. welcome to "squawk box" on cnbc. we're live from washington, d.c., i'm becky quick along with joe kernen and andrew ross sorkin. we're happy to be on u.s. soil after our whirlwind 72 hours that had us in davos to start the week, now we're here to kick off the inauguration of donald trump. our guests this morning, arthur brooks. right now just about everyone in washington is stuck in traffic and he is, too. getting around the capitol becoming more and more difficult as we get closer to the ceremony. things are on lockdown, roads are shut down. there's a red zone all around us here. as we wait for our guest, we'll get a check on the markets. let's look at u.s. equity futures. yesterday you saw a selloff in the stock market. this morning some green arrows.

46 Views

info Stream Only

Uploaded by TV Archive on