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tv   Wall Street Week  FOX Business  October 28, 2017 9:00am-9:30am EDT

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and check out our website at i'm bob massi. i'll see you next week. [ woman vocalizing ] od night fr. >> announcer: from riyadh, saudi arabia, a special edition of "wall street week." here is maria bartiromo. maria: welcome to "wall street week," the program that analyzes the week that was and helps position you for the week ahead. an exclusive global financial investment forum featuring the biggest names across the globe and we have them for you today. this is a revolution airive event. the conference aims to bring voices together to lead investment trends that define our future. you will hear from some of the most of influential flames in
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business and politics. the future king of saudi arabia, the crown prince make something incredibly profound statements to me during a pour house conversation this week. it went viral. coming up on the program today we have u.s. treasury secretary steven mnuchin. his royal highness prince salman. and peter thiel is with me. steve sc shrks warzman is here. david iewben stein and tom farley. but first let's get the biggest headlines from gerri willis. gere report dow had its stht
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straight winning week. the push for a tax bill got past a big hurdle. the house narrowly passing a budget. when lawmakers can agree on a tax plan. the house is expected to unveil their version this week. the president talked about the importance of passing tax reform. >> we are bringing the corporate rate down from 35% to 20%. it will be the biggest tax cut in our country. right now our country is one of the highest taxed in the world, and we can't have that. gerri: a horrible week for general electric stock. they are trying to sell parts of the healthcare and transportation division, including the railroad business. they are raising $93 billion in
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market value. maria: the president's tax reform plan is front and center for his administration as well as the republican leadership in the house and senate. we want to get into it. with the budget passing through the house, it paifts the way for this tax bill to proceed through reconciliation. i sat down with treasury secretary steve mnuchin to discuss the tax plan and wee discussed what he's doing to combat terrorism. >> we are excited about the progress on tax reform. we have the budget passed with reconciliation instructions. we expect the budget to come out quickly and get the president to sign this year. maria: could you live with this bill without eliminating the state and local tax deductions? >> i think the two most of important issues the president is focused on is the 20%
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corporate rate to make our business competitive. that's what's driving this and that's what we'll be focused on. maria: you want to make sure to eliminate that deduction because that deduction hits the middle class. >> fundamentally we think it's the right thing to get the federal government out of subsidizing the states. having said that, the priority for the president is the middle income tax cut. we want to make sure there is a real tax cut there and we don't have middle income people paying higher taxes because of the way we've changed the system. maria: you could put a cap in place. if you make $300,000 or $400,000 or below, you can deduct it. but if you make above that number you won't be able to deduct it. >> i won't get into hypotheticals. maria: i'm trying to write the bill here.
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>> this is being discussed real-time in both committees. at treasury we are working with the committees. we are running lots of numbers. we are going to make sure whatever we do will be paid for. i'm confident we'll have this in the next week or two. maria: we'll be watching when the bill is written and what happens next. this budget was half a trillion dollars over spending. if. from your stand point, when does it become a priority to get your arms around the debt. you are pushing back we have to get jobs and growth, and that will help pay for it. when do you start saying we need to put an ends to the entitlements and pull in our spending? >> our focus right now as you know is growing the economy. and despite what certain people
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have said about my assumptions. it's factual. if we get an extra 1% gdp which we think is doable. that's an extra $2.5 trillion. and that will pay down the debt. growing the economy is what we need to do. maria: 1% movement in gdp will move it $2.5 trillion. that's a big number. senate minority leader chuck schumer is waging a war of words against you. >> i was kinds of shocked he would be saying that about me or any secretary of the treasury. i restrained myself. it's factual. if we get the growth it will pay down the debt. i was quite surprised at his comments. maria: he told politico, i don't know if the man is deliberately lying, but it seems so.
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his statements are outlandish and he seems to just i don't know if i'm allowed to use this word, suck up to trump. >> i have been working with the president for the last two years. i have known the president for 15 years. i'm focused on economic growth, what's good for the middle class, what's good for business and creating jobs. what the democrats need to realize is, they are telling us that's what they want also. let them work with us on these issues. maria: when i interviewed the president last week i asked him this question as well. are you getting bullied by this? we have schumer questioning whether you are lying. but we knew what the talking points would be. we knew the left was going to say this was a tax cut for the rich. did you get bullied into this idea that you need another higher break the and raise taxes on the highest earners, then say
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we'll take this deduction away? is that why you have all these ideas to make sure you stick it to the highest earners? >> not at all. the president doesn't get bullied. and i don't get bullied. these are sound principles we have been working on during the campaign and all year with the senate and house leadership. if we come up with an extra bracket, it's about creating a larger middle income tax cut. as the president said web's not looking to lower taxes on the rich. we are not necessarily looking to raise taxes on the rich. but the focus is middle income tax cuts. we have been consistent on that all along. anybody who says there is incould be is 10 i, i don't know -- anybody who says there is inconsistency, i don't know what they have been reading. >> the issue is if we get rid of state and local taxes it impacts
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different states differently. senator schumer has been complaining about this since the beginning of the year, and i understand. it would be a 600 basis point increase in taxes on new york, california, new jersey and those states. and we are sympathetic to the economy. so we are working through these issues. maria: don't goat anywhere. more of my interview with secretary of the treasury stephen mnuchin. and we have the crown prince of saudi arabia. we'll be right back. >> announcer: innovation in saudi arabia. his royal highness is taking his country further into the future with a mega city. and it's putting billions of dollars to work in the u.s. through a black stone infrastructure fund.
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maria: welcome back to "wall street week." i'm coming to you from the future investment initiative in riyadh, saudi arabia. the youth is teaming up with the saudis to combat terrorism it's one of stephen mnuchin's biggest priorities. >> we opened the terrorist targeting center it's one of my single most of important priorities to fight terrorist financing. we are thrilled to be here in saudi. i looked at three buildings today and they are ready to be opened. we are launching the center here
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and we'll be coming out with new sanctions this afternoon on a joint basis. maria: how do you do that? we were talking earlier with people in the crown prince's office. he apparently is looking to extremists to represent 20% of saudi, and they want to get that down to 5%. how are you going to stomp out extremists and terrorism with this center? >> there is a plan for promoting more moderate ideas which is something we have much support. what the terrorist financing center is finding people using the financial system to fund terrorism and terrorist activities. and we have our intelligence agencies working together. and this is a multi-country approach. so for the first time we'll have multi countries in the gulf doing sanctions with us. we think this is very effective.
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it's the reason iran came to the table to negotiate the jcpoa. the president thinks we need a better deal. they are a terrific tool could combat terrorism. maria: we have not seen a president be as touch against iran and we have seen president trump be. i think that's something saudis agree on. and that's iran. >> that's a big focus of ours. maria: next year's initial public offering of the saudi state oil company should be the largest ipo on record. here at the future investment initiative i was told it's on track to go public in 2018. that doesn't mean they might not sell some part of that to the
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chinese who want in on it. it will be out by he exchange in the world including the new york stock exchange. this will be a $100 billion ipo. >> everyone assumes that my relationship is totally about the aramco deal. i have known long before it was a notion. it's one of the largest he can changes and saudi aramco is a partner in that respect. we'll compete for any ipo in a great business. i can't say too much about saudi aramco from the country to the ministry. they are professional, sophisticated and they are carrying out a very disciplined
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due diligence process to make the right decisions for saad yesterday arabia as a whole. maria: do you think you will get the deal? >> we want them to make the right decision for them. we won't try to corner them into making what we think is the wrong decision. the new york stock exchange is the leading exchange for listing. the next closest exchange is a tiny fraction of that. in terms of the deepest liquidity in the world is in the united states. it's a rigorous governance test if you list there. that's kinds of the decision criteria that benefits the new york stock exchange. but i have no doubter exchanges around the world have their own benefits as well. maria: there are a lot of startups saying i don't want to
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go public. the regulatory environment is too tight. people were wondering why the ipo market was not so busy earlier this year. >> the american audience likes to make a big deal out of the story. some of the great american tech companies have chosen to stay private. we had a young man who started a company three years ago for consumer lending in china. that company is now worth $5 billion. and apcom any with gaming from singapore. these are great tech companies choosing to go public and choosing the new york stock exchange. maria: listed public companies in the u.s. down in the u.s.
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because of the regulatory environment. the treasury said the regulatory environment is way too hard for companies to go public. what are you doing in terms of lowering the standards and making it easier for companies to go public. >> if you work your way down that press report the next paragraph starts with some of the efforts the new york stock exchange and i personally have engaged in to push the administration to engage in ipos. it's down by about move. but the average market case up three times. the. it's not work as well for small companies. small companies are the life blood free enterprise. maria: what can you do to get them to go public? >> with dodd-frank they went too
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far. big companies can handle it, small small companies cannot. not requiring external audit for the first two years that a company is public. you can extend that to all new companies. not just tiniest ones. have it be for all companies new to the public market. maria: my thanks to new york stock exchange president tom farley. >> announcer: coming up. saudi's crown prince has an ambitious plan to bring his country into the future which includes a brand-new half trillion dollar city. we'll have that and more
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planning to build a meg a city. they are going to be investing $500 billion. saudi arabia is investing wheafly in its future. i spoke with the chairman of saudi arabians sovereign wealth funds. his royal highness prince salman is the future king of the country. you have an incredibly beautiful country. you have the resources. but you are having radical ideas, some might say. recently you were asked if you would soon allow women to drive. you are allowing foreign investment in your beautiful country. why now? what triggered this change in thinking? >> first of all i don't want to get out of this topic and discuss politics out of the scope of today. but i'll be brief. saudi arabia was not like this prior to '79. you have the awakening sproj
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spreads after '79 for many reasons. today is not the right day to discuss them. we were not like this in the past. we only want to go back to what we were. the moderate islam that is open to the world, open to all the religions. [applause] 70 percent of the saudi people are less than 30 years old. and we'll not a waste 30 years our lives dealing with extremist ideas. we'll destroy them today. [applause] we want to live a normal life. a life that translates our moderate religion. our good customs. we coexist and live with the
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world and contribute with the development of our country and the world. these are steps we have take in the past that are clear. i believe we'll eradicate the rest of extremism very soon. we represent the moderate teaching and principles of islam. and the right is on our side. and everything that we deal with. i don't feel that concerned. maria: i almost feel like if you are not using artificial intelligence you will get left behind. this is an area you want have strongly. >> undoubtedly the world is not going to wait for somebody to catch up. you have to be part of making the development, the new development and the world. the city will be built on the newest technologies of today. the opportunity is unimaginable. a region that is almost vacant.
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there are many dreams from the saudi leadership, many of the saudis and many of our partners and the large companies or individuals. thousands of dreams that will be established in the city. everybody can imagine how the shape of the city, the zone, the infrastructure, the sectors, if you start from scratch. and you deal away and forget about the conventionals. many things could hatch. this is what we are trying to create. maria: you can understand some people look at your ambitious plans saying what is this all about? saudi arabia investing in solar?
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>> we know the demands is not only in energy. many of the other sectors use oil like petro chemicals and other sectors. we believe the demands for energy will increase dramatically in the future. we don't think it will decrease the demand for oil. it will increase between 230 to 240. so we could look at the conventional energy before oil which is coal. if we look at the index for demand for oil and for coal it's still on the highest peak. so the use of solar energy does not mean it will negatively affect oil. maria: my thanks to the crown prince. don't go anywhere, more "wall street week" right after this. >> announcer: saudi arain a has its eye on the same prize as
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