tv Wall Street Week FOX Business April 10, 2016 9:30am-10:01am EDT
good night from new york. we have talked about anything that affected people and their money. from fox business and new york city the new "wall street week." >> welcome to "wall street week" the show of record for long-term investing. i'm anthony scaramucci along with maria bartiromo hosted "mornings with maria" on the fox business network. gary kaminsky will be with us next week.
>> happy to be here. a highly sensitive financial document leaked this past week sending shockwaves from wall street to the kremlin. we are talking about the panama papers a treasure trove of stunning details of the secret personal fortunes of the world's most powerful leaders and those closest to them. leaders like russia's vladimir putin. at lease one head of state iceland prime minister has artists that down. anthony: with those as bruce richardson and founding partner. some say the leaks are great because it's pointing to transparency and others say it's well shaming. what's your opinion on the leaks? >> i think it's a lot like wikileaks. it went both ways so it scared everybody at the government levels because it was an illegal use of information but for the broader public people look at it and they say this is shedding light in bringing transparency. sunlight is the best disinfectant so maybe this will clean up a lot of shadiness in
our financial system. >> i used that with my kids when i'm trying to get them to clean their room. you know vladimir putin. >> wei. and he is by far the most popular politician in russia and russian modern history since the fall of communism. anthony: you think he's one of their richest people in the world? >> i know this will go against the headlines but i think you will not find vladimir putin's identities and any of these panama papers because when you are the most political figure in the country, when you have been for 15 years and when you have eight coterie of other politicians and i guess you would call them modern foyers in the 18th century prussia, wealthy merchants, businessman nobleman and that is kind of what we have had since those
years and we still have today. that group, it's very internal now in russia. there have been new laws to bring wealth, politicians who have had apartments in london, new york etc. that gun sure. you cannot serve in the russian parliament if you have assets outside you have to declare them so russia itself has been going through this partly to isolate themselves, partly to not be blindsided by more sanctions but i think when you are the most popular powerful politician you don't have the need for it. maria: what does that mean for investing? when you look at russia given where oil prices are at this point do you want to put new money to work in russia or any of the emerging our kids? >> we have had to reset in a lot of the emerging markets. you look at the macronumbers you might look at russia and brazil without the labels so the macronumbers oath our commodity affected are driven economies
and so what happens to commodities has affected both of them in a macrosense. both of them have opted flexible exchange rates, both of them have opted to let the exchange rate float. in the case of russia particularly they are the only market that has no capital controls, never has an effect vladimir putin has talked about often to say this is a point of pride for the russian economy. anthony: bruce are emerging markets a big focus for you? >> we do invest in emerging markets and russia has done all the right things since the sanctions hidden since commodities collapsed and that's a big part of what they have produced and their economy slipped into recession. since that's happened the central bank is taken very aggressive actions to capitalize on the banks to make money available to raise rates to support its currency and with all that russian bonds of titan
from a present yields to about 4% yield. priscilla may have a hand the leadership isn't quite as -- impeachment proceedings are commencing now and might lead to new leadership which brings a lot of political uncertainty there. the carwash in the petroquest scandal will bring down lots of officials which are yet to be named. maria: which is why ask i'm wondering to corruptions issues matter when it comes to investing? the american markets have begun begun -- do you want to put money in the american market today looking over the next five years? >> brazil their equity market backed up 40%. commodities have several models of the commodities bottoming and equities as cheap as they are money starts to fall back into these countries of the look of brazil chile peru these equity markets are up 10%. if you look at germany, france
and the u.k. those markets are down 10% so i will ask you maria where would you rather have your money this year? maria: obviously want to go rethink the value is. >> we have money in the matches bruce. anthony: back to the panama papers for second. unlike wikileaks which is a little bit more government official, this is the private sector money laundering. we will get tomorrow will get to mark this after the break. stick with us, we will be right back. a 45% poverty rate and no solutions. are we heading for a taxpayer bailout? been if the government creating an increase in stifling american capitalism? stay tuned for the fox business all-stars. at ally bank, no branches equals great rates.
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maria: welcome back to it's a looming financial crisis and its not perhaps getting the attention it deserves. anthony: the local governments making this to impose a moratorium and making government debt payments. let's talk about puerto rico. i know you have positions and even worked with the government. what's your opinion of the situation? >> they are in need of restructuring. here are the simple facts. $70 billion in debt is the total amount of debt that puerto rico has issued today. there are jem p. has been shrinking and their gdp is the same number 70 billion. it's unsustainable and restructuring is needed. it's a simple fact, the economy has declined, employment has declined. >> they won't pay back those bonds? >> puerto rico the only that's a
bit of house passed a death march i am bill giving the governor the right not to make any debt payments if he chooses going forward. they don't have access in puerto rico to chapter 9. chapter 9 is only afforded to go to law for the 50/50 states in the united states minister tell us that puerto rico is a scam from that. what these happened is restructuring. allows the laws don't permit restructuring star speaker paul ryan is getting together with treasury and it's mandated a house committee to come up with a restructuring plan for puerto rico. anthony: if you are an individual investor. >> individual investors should not invest in puerto rico i believe until there's restructuring. maria: you know what strikes me and anthony is someone individuals were investing in puerto rico and didn't know it through mutual funds and had tons. why bruce have so many people even individuals gone to puerto rico even if they didn't really know what was going on? you talk about 12 or 14.
>> in the 50 states the united states coupons or five, six or seven. the cheapest coupons for any municipal source so why they went there is because if you are a california citizen you by a new york on you are not tax-exempt but if you were a new york citizen and by the new york bond you are triple exam. all 50 states would be triple tax-exempt. maria: but it's also rock-bottom interest rate. >> in the united states all the moms and pops individual investors and savers mutual funds to buy puerto rico because they have the highest coupons. anthony: puerto rico has sold like a stay credit and if you are going to look at puerto rico you have to look at it almost are an emerging market it's not like a state. it has different demographics. as different aspects to it, different characteristics in one of those --
anthony: bruce can avoid it if you are an individual investor? >> our merging market background said we have to look at it like a gf plane. it's relatively small country or it's a municipality. 3.8 million people. today is 3.5 million people, 300,000 of the best and brightest and best-educated people have left. 45% of people in puerto rico live below the poverty line today. so are you getting paid enough? anthony: be cautious in the stress situations they think you bruce richards and drew guff. we will be right back. >> blocked by the government now american ceos are fighting back against the white house. the fox business all-stars gasparino payne and francis are next. >> look at what is happening with pfizer and allergan. this is terrible for the average person out there. i don't think they realize what
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anthony: welcome back. washington versus corporate america. maria: new rules squashing the pfizer deal. to stop the halliburton baker hughes -- general electric is a company that is quote destroying the moral fabric of america. prompting gec jeff denham out to hit back hard in op-ed this week charles i know you still have the op-ed and you know the company well in the situations
well. his the obama administration to go out with a bang by gephardt on corporate america between the two terms? >> there's no doubt about that and bernie is picking up the baton more than hillary is. i will give bernie sanders credit because he makes it pretty good target is least with respect to crony capitalism. let's not forget how much money ge has gotten through ex-im bank and the $139 billion back in the bailout and commercial paper ballots and also in 199540% of revenue came from outside of the come -- country. last year 55% of the revenue plus 62% of workers so you can see where the average american is saying over the last 20 years the worth of your business outside the country is up 30% that your workers are up almost 100%. maria: charles i couldn't disagree more 3-d look at the ge and the strong -- the point he made is a strong one.
these are the good paying jobs. hang on, hang on. these are the ones that are going away so what do you do to incentivize? to bring more jobs into the country. you don't vilify it. >> i would say you have to talk to bernie sanders in your favorite republican candidate donald trump. >> why do you think that donald trump is my favorite republican candidate? it is one of my top three, there you go. >> more women are voting for him than ever before. >> what does that have to do what we are are talking about? >> it's not just bernie sanders huizenga. the leading republican running for president right now. >> is that your democratic talking point? >> here's what i'd understand why conservative media hasn't hit trumpauer dryness economics. he's pro-trade war.
>> they have taken him to task. >> and then he just asked if that was the democratic talking point. i think the point is the mainstream point in a resonate very well and the numbers i've read people -- ge is a good sign. then ge has been able to dip into the public coffers. anthony: who is the best corporate candidate? corporate america the best presidential candidate for corporate america. >> that's a really tough call. i almost think it might be hillary clinton because she doesn't follow the rules on anything she has to say and i think she's in wall street's pocket and corporate america's pocket. she just doesn't own it. >> i feel like it's incomplete. coming into this obviously would have been donald trump but i agree with charlie. i don't think people understand that we go to france as a full
blown trade war a lot of jobs will be lost. >> i tell people all the time we might be able to win this. we can declare victory. >> i would like to weigh in on this question. anthony: here's one thing i would say this whole issue about the versions and closing capitals have been demagogue. it wasn't just ge they receive these benefits it was banks and insurance companies and the automobile companies. it was a massive bailout of corporate america. anthony: why did we give it -- about corporate america? >> ab have an an environment that several two business business will create jobs. you might not like my answer to this but --.
>> you should delineate between corporate america and the business roundtable and the chamber of commerce and the average businessman. >> jeff immelt has a different idea. >> it's about the flat tax. we are talking 10%, 15% for business and talking about a planned. >> a model for repatriation to bring the money back. >> is a plan that's going to incentivize businesses. that's the bottom line. anthony: i think your question was too narrow. what is the best candidate for corporate america? i don't really care about corporate america. i care about the business environment and i would say if you're going to affect candidate to plug the loopholes that closes, that lowers the raids all the republican candidates call for that some of them add up. >> you can't care about the business climate and in not care about corporate america. >> they rely on crony
capitalism. >> that's why i say if you look every month at the jobs data who is creating the jobs. they can read the book of the jobs and yet they have no voice. >> they all have lower taxes. >> let me say one thing is 50% of those businesses tied to housing. lower and middle-income housing hasn't completely recovered which is one of the reasons we are not growing as fast. mullahs so what do you think the next seven or eight months look like in terms of his proclamations against corporate america? >> if you look at what he's done lately and what is trying to do in terms of companies that are trying to merge intella find them in stopping that from happening look at what's happening with pfizer and allergan. this is terrible for the average person out there. i think they realize what this does is your cancer patient looking for cancer drugs this
innovation raises costs. when he talks about raising taxes on companies, the companies don't pay the tax, their customers do. maria: they have no idea of the implications. >> they have never understood that the more you raises taxes the prices go up. >> and you are not going to create jobs. >> listen to this quote that bernie sanders had. that is greed and selfishness. they don't care about the economic aspect of taxes. or the economic plans. it's an asset to punish and honestly president obama and bernie sanders both believe there's enough. >> it's going to be in the democratic party platform and here is where it and could be catastrophic for employment and our economy. the democratic party is has moved so far to the left and bernie sanders is basically moving hillary clinton to the left in and the platform to the
left so when they want to beat a republican candidate, they want to go against trump by all intents and purposes it's over. that plank will run the country for the next four years which is going to be socialist. anthony: maria irma and's maywood ronald reagan used to say. how can you tell an economist, someone who reads marx and lenin >> a reason you're seeing joseph people leaving places like chicago, leaving places like new york, the other day last week we saw story the hedge fund manager leaving and it's going to impact the coffers of new jersey. they are going to florida and to texas. >> california law is about 1 million people. these are people at job skills moving to places like texas and they were replaced. >> what is the purpose of taxes?
do you tax would you want to discourage the wide view tax business, tax work and tax jobs? they don't understand that fundamental and that's when the country is hurting. anthony: they think it's a free revenue source. >> nails on no hits punishment. >> hillary clinton knows this. >> no wonder he does not release his tax returns. i would say this again hillary clinton knows better. she is not a knee-jerk lefty that she is moving so far to the left base. >> to win the election i think she is bought and paid for by wall street and corporate america. i think she is better than bring sanders without question. i think she's further to the
center. >> as usual the fox business all-stars have a lot of opinions. charlie gasparino charles pa when you think about success, what does it look like? is it becoming a better professor by being a more adventurous student? is it one day giving your daughter the opportunity she deserves? is it finally witnessing all the artistic wonders of the natural world? whatever your definition of success is, helping you pursue it, is ours. t-i-a-a.
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