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tv   Wall Street Week  FOX Business  May 6, 2017 9:00am-9:31am EDT

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and check out our website at i'm bob massi. i'll see you next week. [ woman vocalizing ] thanks for being with us tonight. good night from new york. >> announcer: from the nasdaq in new york city, the new "wall street week." here is maria bartiromo. maria: i'm maria bartiromo. we are coming to you from the nasdaq in mid-town manhattan. we are in the heart of times square because my special guest is the cio of nasdaq, adena freedman. >> the u.s. economy adding 211,000 jobs while the unemployment rate dropped to 4.4%.
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strong jobs numbers increasing odd for a interest rate hike. strong earnings for amazon and facebook, sending all three major markets into positive territory for the week. other headlines grabbing attention, a healthcare victory in the house. congressional republicans are one step closer to repealing and replacing obamacare. it barely made it, a vote of 217 to -- to 213. now it moves to the senate where it faces a whole new set of challenges. but the president says he's confident republicans can come together to get it done. the spending bill through september includes $15 billion more for the pentagon and $1.5 billion for emergency border
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security. but it does not include money for border construction. netflix and google all surging to all-time highs. revenue growing by 49% in the first quarter. apple hitting a record high despite a surprise earnings miss. iphone sales drew disappointing revenue. maria: the market continues to rally. the nasdaq crossing the 6,000 mark. and a surge from technology titans like microsoft and facebook and apple. joining us, adena friedman, you were named ceo in january. i know you had a lot to think about. how important is it that nasdaq
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reached 6,000? >> it's always fun to see a milestone within the index. but we have to make sure the investors have a full set of information to base their investments on. i think the nasdaq reaching 6,000 is a mile marker. but it's a reflection of where people think the administration can take this in the next several months or years. maria: the nasdaq has a big plate of services for listed companies, for non-listed companies, and you are selling at data. we all know trading has been weak. we saw the financial services numbers. you mentioned in your quarter. even though you reached new heights in terms of the quarterly numbers. what's going on with trading? >> it was been an interesting juxtaposition between the performance in the market but
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still a low volatility environment. so it's been interesting to see what's been driving the mark totes new heights. it's been around policy decisions as opposed to fundamental purchase decisions of individual companies. the types of investors coming in and participating in the markets are more of the professional arena. it tends when you have fundamental investors you have a wide range of opinions. and that drives more volume in the mark the. maria: you have got to operate your business, and okay so we have a weak trading environment. you have got other levers to pull. you have got market data that you sell. i want to talk about block chain coming up later in the program. and of course there is the listing business. the new york stock exchange has been trying to eat your lunch
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and take market share for a long time. this last year has not been a great time for ipos. >> 75% of our revenue is in the non-transaction businesses. all the services we offer, our listings, and date and market technology business, in terms of the listings business was a challenging year in terms of the total number of companies. nasdaq from a competitive perspective did well. we had a 73% win rate overall. and 73% of tech companies came to nasdaq. before it was concerning that we had so few companies choosing to apartment markets in the united states. maria: what do you think that's about? you are seeing companies that want to deal with the red tape or quarterly earnings. they are saying i'll stay private a lot longer.
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>> there are a lot of dynamics that contribute to that decision. we have 1,000 fewer companies in the public markets in the united states than we had even 11 years ago. second thing i would say is the jobs act did allow the ability for company to the say private longer. they could have 2,000 shareholders as a private company as opposed to before it was 500. and there is a lot of money that has come into the private space that gave them access to capital. being a public come tonight's a challenging road. you have to have a lot of discipline. you have to be ready for it. one of the things we have done is talk about what has become an impediment to the public market has been a ride range of things that have gone on in terms of
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taxes, lit takes, activism and market structure. public markets are not as attractive as they used to be. we believe there is change needed to make the companies feel confident and comfortable taming the public market. maria: that information you are selling has been vital. market data has become a big business for phoenix service -- for financial services companies. >> if you have transparency around pricing you have the ability to drive different investment strategies and investments in the market. market data is a huge enabler. and it has a lot of value. i rant data business for several years. we made sure weave tapped into the value of the data we have in our markets and maximizing the number of people in the
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marketplace that can sight and access it to drive their strategies. but it's a very, very valuable part of the ecosystem. maria: on the listings part of the business, what are you doing to attract more companies. i was speak to analyst hospital said they didn't get the snap deal. that was a disappoint. are you reaching out to uber and the companies you expect to go public? >> we do a lot of outreach at every company potentially look at going public at some point. one of the areas we have been focused on is the fact that the companies are staying private longer. we have developed a nazdaq private market that allows them toy given vestors and employees to have liquidity for the ipo to
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manage their cap tables as they are moving themselves towards an ipo. and it allows us to develop a relationship witcoanies earlier on. maria: when we come back we'll talk about public versus private companies and the trump policies and what they mean. >> announcer: break up the banks. president trump says he's considering that idea. adena friedman reacts.
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>> through tax regulation and trade we think we can get 3% sustained growth and that creates lots of opportunities for americans.
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maria: that's treasury secretary steven mnuchin telling me this week that the trump tax plan will ignite the economy. that plan will likely impact companies small and big and prompt some like apple to bring money back from overseas. i'm here with adena friedman. >> we are a supporter of lowering corporate income tax and managing through the repatriation of cash for companies. that will give them more ammunition to grow their businesses and expand what they do. but in addition to the corporate tax issues. we see specific areas of tax reform we would like to see in small businesses to give them bert access to deductions and
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tax breaks associated with being a public company. a lot of small bus deductions that only help them as private companies. in addition to providing investors bert ability to manage their investments without heavy taxation. in terms of deduct buil deductef deductibility. and creating an investment account that does not subject them to capital gains tax. we have a lot in our blueprint that we think will be beneficial to the markets. maria: i want to walk through the blueprint. you are one of the leaders in the global market. so the onus is on you to couple with recommendations and ideas. >> nasdaq plays a special role in the u.s. economy. it's something we take seriously
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and we are passionate about it. it's one of the main reasons i have been here for 20 years. the passion about how important the capital markets are for growth and job creation in the united states. the lower number of public companies, the fact that companies are want to go stay public longer and avoid the public markets longer has made it sit down and think what needs to change to make the capital markets more vibrant for companies. tax reform and litigation reform, look at regulations and disclosure obligations. politically motivated disclose ours for public company? why? proxy perform.
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if a company wants to -- if an investor wants to have a say in a company should they only have to own $2,000 in the stock or have a substantial ownership in the stock. look at one size fits all model whether you are am or google or a $150 million company. we think there is a need for a didn't structure for smaller companies. we want it to be a dialogue. we think there are certain things that can happen now. and other things where we'll even gang with the industry to make them happen. maria: your recommendations and idea are important for the u.s. market and the global markets. in terms of the tax plan coming out of the trump administration. a 50% rate for a business seems like a big deal to me.
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these companies were paying 39.6%. even at 15% or 20% corporate tax rate down from 35%. do you think this will and catalyst for these companies to use that money to create jobs and invest in their businesses? >> i wholeheartedly agree with that. if you think of where job creation has come from, it's been small to medium-size companies that have grown and created jobs for people all over the country. they are the underpinning of our economy. that's why we have been so successful because we create such a good ecosystem. but if you tax them heavily, you are draining cash out of their coffers for them to invest in their business.
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maria: what secretary mnuchin was talking about was the potential for a 10% rate for repatriation. if you are talking about a company bringing trillions of dollars over here. that's got to be a big encouragement to bring the money back. >> we have to realize we are incredibly fortunate as an economy that we are the place the whole world goes to to look at as the beacon of great capitol markets and -- capital markets and a great economy. but we tax our companies more than any other country in the world. over time that will make it so we diminish our role in the global economy. all of these things are important. maria: we'll take a quick break. adena continues with us as she talks about her vision for the company. stay with us.
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maria: welcome back to "wall street week." here at nasdaq headquarters. we are here with adena friedman, she is ceo of nasdaq. you have been at nasdaq for 0 years. let me ask you about the fastest growing area of your business, market technology grew 18%. what's driving the growth?
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>> that dovetails nicely into look at strategy of nasdaq. not only do we provide the technology that serves our own markets here and in the nordic, but wheat provide technology to 90 markets around the world. and we are the number one provider of trade surveillance technology around the world, what we are the market infrastructure player. we are the premiere infrastructure player for the capital market. every market is looking to become more advanced. they are look at shoring up their post-trade capabilities, they are look at developing out of market data business and index business. they want to make sure they have the best ptocols to bring in international investment. and they are look at infrastructure and what they
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should grow in-house and what they should look for partners to build for them. demand is terrific. it does dovetail into our strategy as well. maria: how does your strategy differ from your predecessor? >> it's a natural extension and expansion of the strategy we had, to be a critical infrastructure market provider to the world. whether it's here or in the nordic countries. and we look at how we can serve the markets worldwide with our technology and expertise and date and transparency. it allows us to play a critical role in every economy as they are growing and expanding and making sure their capital markets are advanced. maria: you are selling this technology to even competitors. >> we are.
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we believe we can be a great competitor in the states but we also are making sure we provide the technology to whoever thinks they can benefit from it. generally speaking the vast majority of the ex chaiks that use our technology are not competitors. we don't see ourselves competing with other markets. they have their own ecosystem and way of doing business. but there are interesting circumstances where we do provide the technology to a competitor. maria: in terms of growth, is that where the growth comes from at nasdaq? how do you squeeze out more growth at this company? >> we see it coming from multiple parts of our business. we see more growth in the non-transaction businesses. we talked about the yantsed in the transaction businesses. he can wits and options mark -- the equities and options markets
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are low volume. despite the fact that our market share continues to grow. maria: thanks so as mu for joining us. adena friedman. "wall street week" comes right back. stay with us. when heartburn hits, fight back fast with tums smoothies. it starts dissolving the instant it touches your tongue. and neutralizes stomach acid at the source. ♪ tum -tum -tum -tum smoothies! only from tums i am totally blind. i lost my sight in afghanistan. if you're totally blind, you may also be struggling with non-24. calling 844-844-2424. or visit
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maria: let's take a look at the big week ahead. some events that could impact your money. the nfib survey, initial claims, retail sales, consumer sentiment and biz inventories. major companies reporting earnings. herks rtz, disney, snap, mails why i, macy'sand jc penney.
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i'll see you sunday morning at 10:00 a.m. eastern. >> i'm bob massi. for 35 years, i've been practicing law and living in las vegas, ground zero for the american real-estate crisis. but it wasn't just vegas that was hit hard. lives were destroyed from coast to coast as the economy tanked. now it's a different story. the american dream is back. and nowhere is that more clear than the grand canyon state of whead fm thp


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