tv Maria Bartiromos Wall Street FOX Business April 20, 2019 9:00am-9:30am EDT
thanks for watching "strange inheritance." and remember -- you can't take it with you. ybe someone should send a copy to robert mueller. have a great weekend everyone! and a wonderful easter. maria's wall street week begins right now. maria: hello and happy easter weekend to all! welcome to the program that analyzes the week that was. andpositioning you for the week ahead. i'm a reader -- i am maria bartiromo. coming up this weekend, my exclusive interview with a titan of the business world. jamie diamond is here. breaking news on his optimistic view of the economy. he said growth should continue for the next couple of years.
no recessi plus his reon to testifying in front of the congresswoman maxine waters, house financial services committee and of course, his news on succession. j.p. morgan announced two major promotions this week. jennifer -- named chief financial officer while the outgoing cfo, has been named the new ceo of the consumer lending business. the most important business they are paired with lake considered by many as a for the future and white mi includes two women at the top. >> with you know lake is just an exceptional cfo. the brainpower, character, capabilities moving on to be the direct line for all -- and john was a co of credit card pay she's been there and become the new cfo and she has character and talent and brains and distrusted by people. it's a wonderful thing to move
people around.it is fun for them, and the job for a while. that's why we did it. >> these two leading ladies i j.p. morgan, are you setting yourself appear to have a succession plan to eventually announce when you will step down? >> you know, i love what i do. and i have said, it is not for a while. but absolutely, i had to step down someday. and i want to make sure they are great people there who are available to the board and made to pick and choose.in the meantime they're all outstanding. it is an unbelievable company and i'm proud of all of them. i think the more important thing is timing. the right person. i think to say i will do two more years and therefore you move the wrong person or competitor it would be a huge mistake. sometimes it may kind of pushed me out because it is the right thing to do. maria: let's talk about why we are in louisville kentucky. have a $500 million program and you've chosen five cities that you will be giving $3 million each over five years. tell us why you chose these cities. >> there's a bigger story.
there's a big bank here. this particular program is a competition. we asked 200 communities to say what can we do to help you and what you can do to help us. our experience has been it only works, it only really works with local government, the mayor, you hear united way and business leaders come together and say this is what we want to do for the community. a lot of communities need help. we are big bank here. they filled out the competition, there are five cities getting up your miami, chicago, san diego, syracuse and in syracuse right now my partners there but i have the better job here. and louisville. we want to have the community and this is the beginning. this the initial wave of cities. but it is part of a $500 million program because again, it was 50 million a year on portable housing entrepreneur
infrastructure and investment. work skills initiative, no it shows collaboration actually works in america. maria: undertook a infrastructure because this is where you say needs help you infrastructure is an area where the president said he can work with the democrats. are you expecting to be part of an infrastructure plan in firms of funding? mac high schools, the infrastructure is not even a top 20 anymore. we need infrastructure and as well as the democrats and republicans say we need infrastructure. i'm hoping it might be a common ground.of course j.p. morgan, any company, is highly, electrical grids, airports, ports, canals, you're talking about a huge project that has to get done and it takes huge engineering and construction. everyone would be involved. and of course a lot of great paying jobs. the american people should know
it cost more money to not fix infrastructure. talk to fedex they will say how much more tires, rubber, gases being used because the highways not in good shape. we've got to get it this one and soon. we've been going backwards. a major point is the bureaucracy. talk about regulations, it takes 10 years to get permits to rebuild a brooklyn bridge. -- the only way to fix a problem like that is to raise your hand coming knowledge of a problem and get how you will fix it. a lot has to take place in washington and state governments. maria: doctor anywhere, more my interview with jamie dimon is coming up. we will be right back. when you rent from national...
[laughter] (vo) go national. go like a pro. see what i did there? to be nobody but yourself in a world which is doing it's best to make you everybody else... ♪ ♪ means to fight the hardest battle, which any human being can fight and never stop. does this sound dismal? it isn't. ♪ ♪ it's the most wonderful life on earth. ♪ ♪ maria: welcome back.
more my exclusive interview with jp morgan chase chairman and ceo, jamie dimon. how come everyone says that capitol markets were so challenging in the first quarter? trading was done in aleppa the market was up in the first quarter, 13 percent or something. was just follow-through? >> i hate that. we always say the first month wasn't typical good january, february wasn't good but march was much better. most people said that in february. we know that you don't really know what the rest will be, i look at it differently, we had a big secular decline, we know they were cyclical events but over time people need to buy and sell stocks and bonds. equity debt, capitol markets.
sometimes you know, the volatility. sometimes it helps you. sometimes volatility hurts you. anna really look at that as being a good thing. but we are adults, we look at that, we look at past anyone month. if you're doing a good job, all the various types of things. maria: what happened with the inverting? it was only five days or something but is typically an indicator that a recession is on the horizon. >> yeah, i don't buy that, personally. i think is typically been true but not every time will it be true. i just think with the distortion of the yield by central bank actions over the last 10 years, i would not look at that and say represents the truth. maria: let me ask you about china because the u.s. and china talking about potential meeting in the end of may. what are the prospects for j.p. morgan in china? did you just get approval to actually own a bank or
brokerage? tell me the plan from your standpoint. >> we did. the way to look at that is, right now in london, hong kong, new york, we can raise money, equity debt capital, we can buy and sell bonds and do research. for chinese companies. we cannot do in shanghai. the shanghai market is 20 percent the size of the american market. it will be huge over the next 30 years. we want to have control of equity sales, research, trading, debt, debt sales and trading, credit advice. and licenses. we been given the permission to get 51 percent. hopefully on the path to 100 percent. the full licenses. we have very limited licenses before. i think it's good for china by the way and we are making plans to do that. maria: is a really big deal to think china is opening up their markets and j.p. morgan was
among the first. >> they've done a little bit. and if you actually look in the last year they've opened up a few. and so they have been modernizing the economy now for 40 years. they've done quite a good job at that.but the america people should not look at this and say china is going to surpass united states. not really. we have all of we need. we have very good neighbors in canada and mexico. and our founding fathers gave us the gifts of freedom of speech, freedom of enterprise, religion. we end up with the most vibrant businesses the world has ever seen. the most vibrant capitol market, best university, innovation. it is not going away. they do not have all of that. they do not have enough energy, they have people in poverty and very smart, i'm not saying that to disrespect them but they have a lot to get through. and i think they will not do things as we wanted they would do things for themselves. i think their work on a very
complex trade deal. he needs to be done for both sides and i take it at face value they've made a lot of progress. they are capable people, looking at all of the serious issues and they say they are getting close. this deal would be a foundation to having a good strategic kind of cooperative competitive relationship with china. good for both of us. combined it might solve some of the world problems. maria: do think we will get a deal? >> i do. but also you have to give it odds. i give 85 percent. i think it is already in the market we have a deal. i think the market, it would be adverse in my opinion. it is the only thing if you say in the short run what can happen, that can cause trauma and reverse all of the confidence and stuff it would be that. maria: you recently testified in front of maxine waters financial services committee. how was that? >> it was a pleasure. i look forward to doing it
again. look, i think congress has the right to call people and question them. that is their job. and i look at those things and say, make it constructive you know and some was in some wasn't. the fact is it is politics and i'm not a politician. if i had to do my share to help that, actually thought it went okay. some of the issues that people raised and maria: i tweeted about it. i personally think that you schooled maxine waters on the student learning and the fact that the government took over the business and that is why the banks got the businesses years ago. >> it's a problem by the way. the government did terrible underwriting which means huge losses and hundreds of billions of dollars now. you have to fix that. also you have to fix the people cannot afford what will happen because it is actually hampering jobs, credit, household formation, folks having a hard time getting car loans and mortgages. again, this type of thing, if you get one of those committees together really rational politicians, they should be
able to work this out. maria: do you think tax-cut legislation has legs for the long term? and it was a big stimulus/river economy but some say that was last year. we don't have that sort of tail wind at our backs now. what do you think? >> i don't think they are right. forget the individual side let's talk about the business side. we need competitive business taxes to have global competitiveness. you do not to be genius to know that if you are 40 percent and there is 20 there's a lot of capitol moving overseas. research centers, companies, more advantageous -- trillions of dollars made it over there. jobs are over there i think we need to be competitive, period. maria: there is debate about the rich needing to pay more in taxes even though the top 10 percent pay already, 71 percent of all income taxes. you cannot imagine how some say now you have people saying pay more taxes but all these billing is a ready made their money in the system and now
they are telling us now your taxes have to go up and capitalism is not so great anymore. >> i look at a little bit different. which is, competitive taxes, building infrastructure, do your education then we have a gap. one of the things congress needs to do a better job of, when they spend your money, to justify what they spent. i tell i'm going to do this and return that and build this and i added jobs. even with philanthropy we have targets and goals and was a did we accomplish them?into the government, every program should do that. what we are trying to accomplish, did you accomplish it? they spend $4 trillion of half the american public. they should account for all of that. maria: is 2020 election getting separate capitalism versus socialism? >> it looks that way, yes. can i talk about socialism for a second? maria: you wrote about it. >> we need properly regulated capitalism.
and sometimes we do and sometimes we don't and regulation can always be looked at and recalibrated. it always should be more or less but socialism means that the government owns companies. and controls them. that means, those companies over time are used for political interest. they grow in corruption over time. particularly with bad leaders. and leaders decide what is produced, what is soul, where you work, where your kids work. is that the kind of society that you want? andit doesn't work today because less and less over time.it becomes corrupt. people should be very clear . look at some of these countries, it's been a disaster. some people mean social democrat. like really strong safety nets. pathological conversation. sweden, norway, denmark, market economies with strong safety nets.some of the safety nets work and some don't. maria: stay right there. more my interview with big bank
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edition of wall street this weekend coming to you from louisville kentucky. part of my inclusive interview with one of the most respected leaders in business today. jp morgan chase chairman and ceo, jamie dimon. you mentioned wages. you raised minimum wage a while ago. bank of america followed your lead.now talking about $20 an hour in the next couple of years. do you worry about the impact of that on small business? a little small business owners
a a fact to raise them in which 18 or $20 i had to cut jobs. >> i understand that. i do, i think first of all, it's not terrible, i think is different when people raise the minimum wage it might drive some of the business. i think locally, -- for companies that compete, today, the first time in like a long time, low and wages are like 20 percent the last two years. that is what we all want to appear now they are complaining about it. so done properly, we will do fine. also the earned income tax credit. many low skill jobs pay more and have better social outcomes. we had to think on the income tax credit that pays a single mother with two children making $14,000 a year can get a $6000 tax credit. i think that is a good thing because it has dignity etc. a lot of things to do. i worry about that little bit.
i get a lot of complaints. maria: you reported earnings last week in your -- you are more optimistic in the fourth quarter. there was a debt issuance in december. what was the take away from their -- kris reese both the first or second week in january. the second and the fourth quarter went from huge positive to huge negative. there is modest good reason, slowdown in growth.trade, the government shutdown, but there was a huge overall reaction. i think i mentioned the markets open right away and i think i went home that day and i got the first call -- acid was the first one gets done will open the spigot and i think the reaction was an admissible reaction. what we see in the us is that the american consumer, the balance sheet, incomes are strong. not week. more people going back to the workforce which is a good
thing. companies are in very good shape, prophets are good, expenditures are going up. consumer confidence high level, housing in short supply. it is kind of a tailwind. and the fed is on pause. which i think they did the right thing which means it will be a little more time to adjust to the slow down. it also seems like it is a little slow down and other than trade, not sure it will stop in the next year or two. maria: you will see a recession in the next couple of years? >> i don't.maria: where's the growth? is it the consumer or the corporation? i know that spending came up a little bit and then people worried that it would stall out. is it the corporate sector or the consumer that is most strong? >> the consumer balance she gets service letters, asset levels, it is excellent. and as good as it's been for 30 years or something like that. with wages going up at the low end, their credit is getting better, not weaker. more people are going back to the workforce. i still think will be a million or two or 3 million left. we are problems like the opiate
problem but the consumer is in very good shape, business is good. after tax reform, actually it's way up, they been coming down the corridor but still higher. but buybacks, more expenditures not less. and with capital, it's not what they did in that quarter, the first quarter second quarter, if the capitol is being retained you're talking about trillions of dollars over the years that will be retained -- is being deployed. you might have a higher dividend we might be investing or reinvesting something else but it's all redeployment capitol and it will have a positive effect. it's a most impossible to model it but you will see the effect, you are seeing it and it is not like expenditures are going down. and this notion is somehow company spent more capitol expenditures than the good old 50s and 60s. it is higher today than the 50s
and 60s. maria: my thanks to @bullsbearsfbn, chairman and ceo, jamie dimon. don't go anywhere, more wall street after this. ♪ limu emu & doug look limu. a civilian buying a new car. let's go. limu's right. liberty mutual can save you money by customizing your car insurance, so you only pay for what you need. oh... yeah, i've been a customer for years. huh... only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪
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plus right here in fox business, weekday sixth&i name eastern, mornings with maria right here on the fox business network sixth&i name eastern. that will do a first for this weekend. thank you for joining me. we will see you next time. gerry: hello and welcome to the wall street journal at large. it is easter and passover we can. a solemn moment in the calendar for most americans and this year especially holy week has been full of symbolism about the possibility of hope, the promise of redemption and the reality of eternity last weekend tiger woods won at the masters term appeared and we witnessed notre dame in paris consumed by fire.