tv Maria Bartiromos Wall Street FOX Business March 2, 2019 9:00am-9:31am EST
do you have a "strange inheritance" story you'd like to share with us? we'd love to hear it! send me an e-mail or go to our website -- strangeinheritance.com. next wee threats from nicolas maduro. we will be on it for you. exclusively for you on "trish regan primetime". have a terrific weekend! maria bartiromo is next. happy weekend everyone! welcome to the program that analyzes the week that was and helps position you for the week ahead. i maria bartiromo. thank you for joining us. in a few moments, citigroup special economic advisor is my special guest. document economic growth. then later in the program joining me for former director, doug aiken whose group, american action form edit at the cost of the green new deal. you will not believe the price tag. meanwhile, the u.s. economy grew at 2.6 percent in 2018
growing faster than expected to import to acceleration and business spending. overall growth and 2018 was solid with gdp at an average pace of 3.1 percent. jen marinelli of citigroup special economic advisor, willem buier. good to see you thank you for being my guest this weekend. >> pleasure. maria: tell me how you saw the gdp report we saw this week. what does it tell us about the u.s. economy? >> i think it is a positive number. if you look is 2.6 percent you take quarter for, get 3.1 percent. the numbers are good. it suggests there is a slowdown going on. not unexpectedly since the effect of the fiscal stimulus that you got early they are beginning to wear off but this isn't encouraging ãit is an encouraging number.july will be the longest in u.s. history.
maria: hundred and 20 months or something there. you know what really stood out to me in the gdp report? business spending. critics have been saying business x is gone. maybe it's not the numbers right after the announcement of the tax legislation but you are still seeing amazing numbers when it comes to x. overall, he saw a 13 percent growth in intellectual property and money going into innovative strategies for companies. that is overlooked often times. but that is part of x. >> yes very much includes intellectual property investments. the soft -- it is in fact rockhard. i think it is important to recognize that x has been surprisingly robust. other than some construction that is business x. it is also an area of vulnerability because the balance sheets of
corporate are somewhat stressed and are being underestimated by the market. so there is some mobility there but it doesn't materialize. it could see x driven continued growth right into 2020. maria: let me ask you this. when i look at the numbers today you're looking all of the major 11 percent peer when i interviewed jamie dimond on january 7, i said to him look, points to me that we will have a riproaring rally at the beginning of this year. i have to say it's exactly what we saw because when i interviewed him in early january, i just started noting that it gave us a pivot. number two, when a huge selloff in december which means valuations are better. and the growth is still there. so why not have a riproaring
rally? all the major industries are up at least 11 percent. year to date. do you want to be putting new money to work in this market here? i know you're looking at the backdrop but based on the economic backdrop, would you still buy equities?>> personal view is, at this point i think they are generously valued. riproaring is never good value. maria: was that the fundamental rally that we saw in january and february? of course it is a horror show. maria: of december.>> of december. in a sense some was to be expected and we got it. maria: willem buiter, good to have you on the show. >> thank you. maria: willem buiter at city this weekend. when we come back? looking at the greendale as well as china next. -their béarnaise sauce here is the best in town. [ soft piano music playing ] mm, uh, what do you do for fun? -not this.
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you've heard a lot about the green new deal. it seems a left new big idea turns out it comes with an equally really big bill. according to a study by the american action form the plan to combat climate change and income inequality will setback taxpayers $93 trillion. it is $600,000 per household. joining me another co-author behind that study, the american action form president and former director, douglas holtz aiken. >> thank you for having me on. maria: i think this study made a lot of waves. people knew it would be superexpensive but 93, $94 trillion, wow! how did you arrive at such a price tag for. >> went to the 14 page proposal and pulled out the things that we could realistically get some idea of the cost. for example, one of the
proposals with electricity grid interiorly driven by renewables, we know what it costs to construct these things. he put all together in the at 5.4 train dollars peter doocy high-speed railing california noted cost per miles you can get an estimate of that. racing universal health proposals. $36 trillion for that. some of them quite frankly, we have to get ranges with because it's hard to figure out. there's a proposal in there for guaranteed jobs. those jobs are quite good jobs. they have a standard of living which is adequate for a family. they come with paid family leave, retirement benefits. one way to think about is everyone unemployed gets the job. it is the low income a $6 trillion price tag. or you can imagine that more people come into labor force because of jobs out there.
and you have to raise the wages of some people already working because they don't have a job that good. put that together and you ended $44 trillion. it's possible to go through, look a proposal, think about the implications and get at least a ballpark estimate. i don't want to overstate the position. there's not a lot of detail in the proposals and redo the best we could with what we have. maria: i'm going to get to the debt that we face currently in a minute. how are we talking about something that costs so much when we know that there is no money to do it. and it is only going to mean raising taxes significantly. am i wrong on that? >> i don't think you're wrong about that. the way i think about it might not be right. these goals, clean environment, people having health insurance, people having a job, are things american support. the country as a whole wants that to happen. the real question is, is this the best way to make progress on the goals? and that's the point of doing a study like this. let's find out what the proposals cost. are they something people
really want to sign onto? they look at the price tag and might think, maybe there's another way to do this. and make the decision to sort of pursue other avenues toward full employment, universal coverage whatever it might be. maria: what gets me is that we are hearing all the proposals peer whether it is medicare for all, which wipes out the insurance industry completely. another big federal program. green deal, another huge federal program. we are not actually hearing the details of the cost. the details of what it means. it also is great, it we would love to know that we are not using fossil fuels and a very clean environment. we would love to know that everybody has healthcare. but when you dig deeper, you recognize that these are just nonsensical ideas. i just wish when people would not the ideas, they would also bring the details around them so people can understand this does not make economic sense. >> well, you are preaching to the choir. i've always believed that you need to know the numbers. if you take the time to put pen
to paper and figure out what's of the cost, you generally understand what their proposal is. if you say we like a clean environment, fine, that's a good thing! but we said we would like to have something that runs completely wind and solar, it means we need storage. storage is really expensive and hard.we start to get to the real cost of things. ichabod a little bit differently. there is an important step. maria: again the sun and the wind, they are great and you can use them in certain things. like i love my solar lights in my backyard. but that is not going to fly a plane. that is not going to get me from point to point on a train. so this whole idea that we are going to give up airplanes and trains again, nonsensical. doug you are a numbers guy let me bring another number to you. that is $22 trillion. you know where i'm going. we have a record debt. you spent years of your life
dealing with this and looking at solutions. i know the growth in spending is an entitlement. social security, medicare and medicaid. how are we getting their arms on this debt and how come marcus don't care about this? >> on the latter, i really am quite surprised at how calm markets are about the outlook. the u.s. federal outlook is unsustainable. the federal government is the most systemically important financial institution and it is in bad shape. in a years federal debt will be the third largest larger than pentagon and education. but it is a really scary picture and markets are quite -- i'm not sure quite fully understand but you are right, the only way to do with this is to take a look at what you spend and what you raise and recognize that they are well out of whack. the really big growth numbers on the spending side of the next 10 years social security for example is projected to grow at about eight percent a year. we are not going to get eight percent growth in the economy. you know that and i know that.
so you have to deal with that. and i think it is important to recognize that the beneficiaries of the social security program, a big stake in reform. if nothing is done, they'll get cut by 25 percent across the board. under 15 years. a horrible way to run a retirement program. spin the committee for responsible -- they say were exceeding some of the more important things that we need to spend on like defense and other things? just because rates are going higher. this is something will certainly watch. doug, good to see you. thank you. >> thank you. >> douglas holtz-eakin join us, don't go anywhere. we will be back with the security head at huawei telecom.
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all of you. how you live, what you love. that's what inspired us to create america's most advanced internet. internet that puts you in charge. that protects what's important. it handles everything, and reaches everywhere. this is beyond wifi, this is xfi. simple. easy. awesome. xfinity, the future of awesome. maria: welcome back.
chinese telecom provider huawei technologies writing back. the company in recent months has been under severe intense international scrutiny as several countries have declared the tech giant a threat to national security. meanwhile, huawei has pled not guilty to u.s. charges of stealing trade secrets from t-mobile. the company cfo as you know, has been detained. now, huawei is trying to say other is taking a full page ad on thursdays wall street journal. titled this, don't believe everything you hear. come and csp urging american journalists to visit the company of campuses. i had chance to sparkspeak abou their pr push. >> are trying to open up dialogue. because that is what is fundamentally important. the dialogue about how to
address real cybersecurity risk. we believe the proven mechanisms to do it. so that companies and governments can take advantage of the most innovative technologies in the world. we are trying to facilitate the conversation that is sometimes a little difficult to focus on the facts. maria: i want to focus on the facts this morning because you're talking about how to deal with cyber intrusions and people look at huawei as one of the big perpetrators of cyber intrusions. are you saying that huawei technologies has not stolen trade secrets from other companies in the west? >> what i am saying is that the pressure on huawei is quite a geopolitical dilemma between the u.s. and china. also part of the fact that the u.s. government is trying to seriously address the risk to the united states globally. with the rising power of china economically and militarily. and trying to do a lot more led by the department of homeland security to protect the
critical infrastructure and work to protect allies. the communications sector is an important part of it. we have been trusted for the last 30 years and hundred hundred -- 120 countries. announcing that they should be scrutiny of the products we sell but we are saying the needs of a greater effort to address the risk from all technologies and all products. that's will be necessary to make us all safer so we can confidently use the new technology. maria: wait a second you said there were no major issues around huawei. in fact, over the last year, or several years, i can cite a list of companies that have sued you and you have done settlements with. motorola solutions, t-mobile, cisco, all those companies sued huawei for stealing trade secrets. >> there been no major cybersecurity incidents in the world involving huawei. that industry and the fact we've had some lawsuits in the past is characterized the
industry for the last 20 years. we resolved those issues and we are moving forward. the remaining issues we hope to resolve in the next year or so. maria: is not accurate to say that there were no issues around huawei when you had lawsuits for stealing trade secrets. huawei settled a lawsuit with motorola solutions for stealing trade secrets. he settled a lawsuit with cisco for stealing router trade secrets. are you saying that yes, these issues and lawsuits went on in the past and you're not going to steal anymore? is that we are saying? >> i'm saying two things. i am saying that but i'm also saying there been no major cybersecurity incidents in the world and the 170 countries we do business. we believe there are additional mechanisms that can be done so we can provide assurance and transparency to help make america benefit from us being allowed to compete. maria: look, i understand that you are on this pr trip today.
and you have this whole page ad in the journal and i agree that huawei needs to convince the world that we can actually trust the products of the company. but to say there have been no issues with huawei is just 100 percent inaccurate. i just listed a number of companies that have sued you for stealing trade secrets and the settlements you have done. >> maria, i did not disagree with the facts of those cases. >> okay. >> i did not disagree with those. major global carriers in the world trust huawei. and they have said that within the last week or two. secondly on the theft of intellectual property, by the china government, that is not as per the china government does not speak for us. we do not speak to the china government. i applaud the efforts of the united states another to try and crackdown on the global theft of intellectual property which has been a disgrace over the last 15 years that we have
not done enough about it. i'm glad to see president trump is raising that as an important issue in the trade talks. maria: huawei technologies is a chinese company this is a communist country. of course, the companies are state actors as our the arm of the government in a communist nation. isn't that true? >> no, that's not. we are privately owned companies. there are a number of companies often have government ownership. we are not one of them. the fact is that major nationstates, sophisticated and well armed with cyber tools have the ability to hack into the global supply chain of everybody. we are vulnerable networks and system for the china government does not need to hack into the huawei products to be able to cut the spine they want to do around the world. just as when they hacked into personnel management a few years ago and still all personal records. maria: let's not forget about marriott. let me ask you this, do you have a member of the communist government on your board? >> i -- i don't know. i assume since there are 70 members of the communist party, i have to assume that some of the officials of our company
are members of the communist party. but they are not government officials. >> they are on your board. there are communist government officials because that is the rule in china. you have to have a communist government official on the board. isn't it? >> i don't think so. i think you -- you -- maria: members of the communist party on your board. >> i think we probably have members of the communist party. we do not have chinese government officials on the board. maria: i know that huawei technologies is a very successful throughout the world. andy, i know the company has been going into several countries in africa, several countries in europe, over the years as a long-term thing. and say look, we will develop your telecom system. how many systems you believe that huawei has developed throughout africa and europe? >> we been involved in a lot, i cannot give your number. the fact that we are such a tremendous growth around the world, the fact that the major carriers despite incredible pressure from the u.s. government, continued to
bacchus, is an indication we've indicated we are worthy of trust to those major companies. maria: and it's a lot cheaper than something in the west. that's one of the reasons why so many of these countries have signed on, right? >> affected our products have gone from being an expensive to be in quality, to represent into major companies in the world. that we can help them innovate to be competitive going forward. the fact that we participate in markets that compete, you see our competitors dramatically lowering prices. it helps whether it is buying huawei products or just the competition. ! if huawei has created the telecom infrastructure, you can tap into anybody's private information. financial data, and information that is on the telecom infrastructure. >> the fact is that the carriers control the security. we are just providing as we talked about for 5g, we want to provide just the radio access
part. we don't want to provide the court. maria: my thanks to andy purdy of huawei telecom. don't go anywhere, wall street will be right back. this is huntsville, alabama. aka, rocket city, usa. this is a very difficult job. failure is not an option. more than half of employees across the country bring financial stress to work. if you're stressed out financially at home, you're going to be too worried to be able to do a good job. i want to be able to offer all of the benefits that keep them satisfied. it is the people that is really the only asset that you have. put your employees on a path to financial wellness with prudential. bring your challenges. maria: welcome back.
next weekend on the program, my special guest, we'll talk about jobs because next friday will be february jobs number. we will figure out where the jobs are and identify the best jobs and the highest pay. i have a feeling coding and engineering is the top of the list for drums that special program. meanwhile this weekend on the fox news channel, journey "sunday morning futures" the fox news channel. my special guest ranking member in the house intel committee,
republican devin nunes. my special guest as we talk about china as well as what's happening with the fbi and doj. that is live to name eastern sunday morning. start smart every weekend. right here on fox business. work.ays in the fox business mornings with maria ayres 6 to 9 am eastern. we hope you'll join us here that will do it for us this weekend. thank you for joining me. i will see you next time.♪ ♪ have a great weekend ♪ everybody. ♪ [music] >> hello and welcome to the wall street journal at large. sometimes in politics as in life, it is a good idea to just get away. this week, president trump seems to be following the old adage. his exploit and fixer, michael cohen, made headlines telling a congressional committee in washington that his former boss was a treat, conmen and racist. mr. trump was about as far