Maria welcome back to wall street week. Im maria bartiromo. The country is committing to the future and making a major investment. The Public Investment fund contributed 25 billion to the black stone group which could be the largest Infrastructure Fund. They are calling it the largest Infrastructure Fund ever. I talked with black stones ceo about that fund and the need to improve infrastructure across the world. We announced we are planning on raising a 40 billion fund. We cant comment on fundraising because sec makes us unable to do that. But the purpose of the fund is to put most of of its money in the United States. And there are different times of infrastructure that we could be facilitating. It could be the youth at some point will be making improvements in terms of approvals to do infrastructure prongs. When the government is building things. Anything that touches a government in the United States takes somewhere between 10 and 15 years to get approved on average. If you are doing the same prong in germany or canada, it takes two years. So i would say we have a long way to go as a country to make ourselves as efficient as other major countries which themselves are concerned about Environmental Issues as well. Maria where do you see the big opportunities . The president talked about an infrastructure plan. He wants to put an infrastructure plan in place. Are you talking about bridges, highways, all of the above . Where are the opportunities . The opportunities for the most of part are in the private sector. You dont need these enormous approvals except for pipe lines, other types of energy, things, power plants, utilities. Telecom. There are a variety of things you can do where virtually all of the monies we raise can be deployed. There is a bonus, if you will, if the government can reform and i think politically the democrats are very in favor of expanding the infrastructure. I think there are chances to have publicprivate partnerships where governmental units that have assets with cash flow sell those assets, federal government adds a bonus payment to encourage them. Then the money is reinvested to build more infrastructure in that community. Things like roads, bridges and other things that need to be improves. Here the crown prince was talking about this new city that they are developing which is going to be from the ground up. They will need everything. There is that opportunity as well. How much of the fund will be u. S. Versus international . This fund will be primarily u. S. With the ability to do some outside the u. S. Its being raised and is geared for the u. S. Maria the black stone group has been incredibly successful. Where are you seeing the big opportunities for the next five years . We are seeing a lot of opportunity all over. What we are doing is we have been the highest performs products in the world, whether its private equity or real estate, whether its rescue. What we learned is investors want Different Levels of return. Someone less risk, less return. We are firing we can create products that the average investor gives them a a 70 return. Thats a potentially large market. Maria looking at the segments where you find growth. Do you find you need more so in real estate. The Retail Sector . I thought you were talking about where is blackstone going. Blackstone has substantial white space to grow the firm as we go to different times of investments. This involves going to Retail Investors as well as institutions. In terms of asset classes, prices are higher now than they used to be. But the economies of the world are all expanding. Its one of the few times where everything is going well. Maria in addition to giving money to black stone, the saudis have given 5 billion to softbank for their vision fund. My thanks to blackstones ceo. Well have more after this break. Announcer billionaire and trump supporter peter theil is going all in on saudi arabias tech sector. Its easy to think that all Money Managers are pretty much the same. But while some push High Commission investment products, Fisher Investments avoids them. Some advisers have hidden and layered fees. Fisher investments never does. And while some advisers are happy to earn commissions from you whether you do well or not, Fisher Investments fees are structured so we do better when you do better. Maybe thats why most of our clients come from other Money Managers. Fisher investments. Clearly better money management. You know win control . Be this guy. Check it out selfappendectomy oh, thats really attached. Thats why i rent from national. Where i get the control to choose any car in the aisle i want, not some car they choose for me. Which makes me one smooth operator. Ah still a little tender. vo go national. Go like a pro. Our recent online sales success seems a little. Strange . Nk na. Ever since we switched to fedex ground business has been great. Theyre affordable and fast. Maybe too affordable and fast. What if. People arent buying these books online, but they are buying them to protect their secrets . . hi bill. If that is your real name. Its william actually. Hmph affordable, fast fedex ground. Bar ares a rarity. A Technology Billionaire who supports president trump. I spoke with peter theil in riyadh. What we been talking about what his highness is doing that will be in this new city of the future. Where do you see the opportunities in terms of starting from scratch. When you have a city, what kind of technologies will be most of needed . Its there is a tremendous amount one can do when one starts something new from scratch. One thing thats striking about the great cities of the world like london, new york, silicon valley, many other places, is that even though they are incredibly dynamic economic places, its extremely hard to change things. So in new york city it costs a billion dollars to build one mile of subway. In San Francisco you cant built new highways or anything new. The transportation grid is set. So there is this weird transportation problem with the big cities where in effect becomes incredibly hard to build new transportation once the basic city has been built if the Transportation Systems are inadequate. I would say they are badly inadequate in all of our major cities. Even the developed world. It ends up meaning people have super long commutes or need to live in small apartments near the city center where they have to spend all their salaries on the apartment. So i think it distorts the economics in the cities to a tremendous degree. In london, its minus 2. If you build 1 housing the housing will go down 2 . Thats because the Transportation Systems are the 19th century and its completely stuck. Thats a challenge that i think you could rethink in an exciting way. So i wonder if one could do something to build a potentially enormous city but one where the transportation works at every level. Maria lets talk about Artificial Intelligence. People war why it more a. I. And Machine Learning you have in a situation, the fewer jobs you have. Are robots going to be take our jobs . Im always nervous about the abstractions. Ai is one of the greatest abstractions of all. It could known the next generation of computers or the last generation of computers. If you had generalized Artificial Intelligence where you had a computer that was smarter and more able in every way possible. I would say the problem is not economic, but political. It would be like an alien from another planet landing. What does this mean for the Unemployment Rate in the question would be are they friendly or unfriendly. So i think to the extent the economic questions serious, its much more the political question. The history of technology has not been one of pure substitution. As we automated things in the Industrial Revolution it freed people up to be more efficient and do other things. People are mostly employed in our society but not all in agriculture and working in factories. As agricultural and industry were automated, and had robots replace humans in factories it freed people up to do other things. Thats bent history. I tend to thats been the history. I tend to think thats what will happen with aivment. It will free people up to do other things. It becomes a game of substitution only if you have an a. I. That can do everything better, smarter, and cheaper than any human being. That would be very scary. Thats where my intuitions will start to break down. Maria what do you think are the skill sets people need to thrive in this new world of Machine Learning . You know, its always i get asked these questions by young people. And i think i think its hard to give general answers, but its always good to start with things where you are not competing directly with computers. Where you have still maybe have some real skill where you are thinking very hard about the future about your place in it. And you should be asking critical questions. The default our colleges and School Systems is to tell people they dont need to ask those questions. If you get a college diploma, you will be saved and everything will be fine. And i think thats not true. This is very difficult. People should be asking these questions much earlier because universities do not have an answer. Maria you say you dont compete with a computer. I feel like im computing with a computer on everything. Maria, you are in one of the safest positions possible. You are not competing with a computer. If we got a computer just like you, everybody in this room would be out of business. You are the last person in this room who has to compete with a computer. Maria dont go anywhere, more wall street week after this. Announcer the Carlisle Group has been a wall street powerhouse for decades. Zar one of our investors was in his late 50s right in the heart of the financial crisis, and saw his portfolio drop by double digits. It really scared him out of the markets. His advisor ran the numbers and showed that he wouldnt be able to retire until he was 68. The client realized, i need to get back into the markets i need to get back on track with my plan. The Financial Advisor was able to work with this client. Hes now on track to retire when hes 65. Having someone coach you through it is really the value of a Financial Advisor. Maria welcome back. Private equities titan david ruben stein announced he will be stepping down from the Carlisle Group. My partners and i, the founders of the firm decide have a new generation running the firm as of january 1, and we are excited about it. Maria tell me the role you will continue to have. You are a major share holder and you will be watching. I will be the coexecutive chair with bill conway. I will be active in fundraising. And i will be interested in how the firm does. I willen involved in a different role. Maria how do you want to see the investments change or look different. The firm has been diversified from energy to getty and hertz. How do you want to see the investments change Going Forward . We want to make sure we are at the cutting edge of investments. We have made investments at the cutting edge. It turned out to be a good investment. We want to be around the world investing in many areas. Credit as well as private equity and energy and real estate. Maria where do you see the growth today . The real growth is in the emerging markets. They only get 13 of private equity dollars but they are 55 of the worlds gdp. Maria let me ask you about your thoughts on policy coming into washington. We are waiting on a tax plan to be announced and a bill to get to the president s desk. There is healthcare as well. What else your take on the tax plan . I think its likely there will be a tax bill passed by congress this year or next. The house will pass it likely this year. Im not sure the senate will get it done this year but its possible. I dont think there is much doubt it will get through the house. But i think the congress will give us a tax bill. Maria what are the implications of that. I think it will be a tax cut for corporations and a tax cut in the middle class. So you will see more spending and growth in the economy. Maria you think it will move the needle on Economic Growth . I do. It will cost to do this and well have to increase Economic Growth. The tax cut will increase the deficit. Well have to make that up by higher growth. Maria do you think there are some areas of business that will benefit more than the others. You have got Smaller Companies and the passthrough companies with the 25 rate. Who will benefit . Small businesses should benefit. But thats the president s desire to have Small Businesses benefit. You never know whats in a tax bill until its final. The lobbying that goes on is very intense. Generally i think Small Business will benefit. Maria my thanks to carlisle ceo david ruben stein. Stay right there. Six in the morning. She thought it was a fire. It was worse. A sinkhole opened up under our museum. Eight priceless corvettes had plunged into it. Chubb was there within hours. They helped make sure it was safe. We had everyone we needed to get our museum back up and running, and we opened the next day. And im the founder of ugmonk. Before shipstation it was crazy. Its great when you see a hundred orders come in, a hundred orders come in, but then you realize ive got a hundred orders i have to ship out. Shipstation streamlined that wh the order data, the weights of , everything is seamlessly put into shipstation, so when we print the shipping ll everythings pretty much done. Its so much easier so now, were ready, bring on t. Shipstation. The number one ch of online sellers. Go to shipstation. Com tv and get two months free. Hi, im the internet you knoarmless bowling. Lt . Ahhhhhhhh you know whats easy . Building your website with godaddy. Get your domain today and get a free trial of gocentral. Build a better website in under an hour. Maria time to look ahead. Lets look at big events next week that could impact your money. We kick it off with the Economic Data monday. Well get the numbers on how working americans are doing when the personal income numbers are released. Well get the numbers on housing vacancies and home price indices. Well get a clear picture on the jobs market wednesday. And a big week with the Labor Department releasing the unemployment numbers friday for the last week. Thats always a market mover. Another big week for earnings. Thus day well get names like aetna, Archer Daniels midland. Mastercard. And thursday watch for apple numbers. Finally friday ferrari and progressive report their earnings for the quarter. President trump is expected to name the next chairman of the federal reserve. And well get more news on the gops tax reform plan. Coming up next week. Well talk with the ceo of boeing. That stock has been on fire. We want to find out what the growth story looks like now. Join us for our special program over at fox news. That will do it for us on this special onehour edition of wall street week. Have a great weekend. Ill see you next time. Lou good evening, everybody. We are coming to you from the swamp, washington d. C. And i can tell you we come here rarely and only for the most important of reasons and that is to speak today with president trump. President trump promised voters to drain the swamp, but hes finding the swamp fill would with creatures that are more cunning and elusive and more dangerous than he expected when he was campaigning for the job he how holes. Washington d. C. , corruption of all kinds is high on