Transcripts For FBC Wall Street Week 20171231

The crown prince arrested dozens of princes, top officials, including wellknown billionaire as part of a sweeping anticorruption probe. Crown prince, his Royal Highness, prince muhammad made a historic statement to me at the conference which you will hear coming up in the program. Also on todays program. Technology billionaire Steve Schwarzman, Carlyle Group David Rubenstein and paul farley and kick it off with treasury secretary steven mnuchin. This is what he told me before that. Very excited with the progress on tax reform, as you know, something weve been working on since the beginning of the year, we have the budget passed with reconciliation instructions, we expect the bill to come out very quickly and get this to the president to sign this year. Could you live with this bill without eliminating the state and local Tax Deduction . I think the two most important issues that the president is focused on is the 20 corporate rate to make our business competitive and a middleincome tax cut. Thats what is driving this and were focused on. Maria so in other words, you want to make sure to eliminate that deduction . Because that deduction hits the middle class, doesnt it . Fundamentally as i said before, we think its the right thing to get the federal government out of subsidizing the states. Having said that, the priority for the president is the middleincome tax cut, and we want to make sure whatever we end up with, theres a real tax cut there, and we dont have middleincome people paying higher taxes because of the way weve changed the system. Maria hypothetically speaking, you could actually put a cap in place, whereas if you make 300,000 or 400,000 or below, you can actually deduct it, but if you make anywhere above that number, you wont be able to deduct it . Im not going to get into the hypotheticals. Maria im trying to write the bill here. Thank you for helping. [ laughter ] okay, sure. This is discussed realtime in both committees, at treasury, were working with the committees, running lots of numbers, making sure whatever we do can be paid for and make sure this gets passed. Im confident well have this in the next week or two. Maria we will be watching when that bill is written and what happens next. Let me ask but the budget because obviously this budget was half a trillion dollars over spending, next budget in 19 looking half a trillion dollars over spending. From your standpoint, when does it become a priority to start getting your arms around the debt . I know people have been saying how do you pay for the tax plan . You push back saying we got to get growth, jobs and that will pay for it. When do you start saying we need to put a knife to the entitlements. We need to start pulling in our spending . Maria, our focus right now, as you know, is growing the economy. And despite what certain people have said about my assumptions, its factual, if we get an extra 1 gdp, which we think is doable, an extra 2. 5 trillion. Its a lot of money and in that scenario, well pay down the debt. Thats what were focused on. Growing the economy, thats the number one thing we need to do right now. Maria 1 moving gdp equals 2. 5 trillion. Thats a big number. A huge number. Maria and i know the president is talking about that. You got the dems pushing back, this morning, Senate Minority leader Chuck Schumer is waging a war of words. I was shocked hed be saying this about me or any secretary of the treasury, and i restrained myself, and look, its factual, if we get the growth, it will pay down the debt. We can debate whether we get the growth or not. I was surprised at his comments. Maria im reading it right here, he told politico, i dont know if the man is deliberately lying, it seems so. His statements are outlandish and seems to i dont know if im allowed to use this word, i think i am suckup to trump. Your response . Maria, ive been working with the president for the last two years during the campaign. Ive known the president for 15 years. Im focused on Economic Growth. Whats good for the middle class, whats good for business, whats good for creating jobs. What the democrats need to realize, is theyre telling us thats what they want also, well work with them on these issues. When i interviewed the president last week, i asked him this question as well, are you getting bullied by this. They have a war of words with you. They are telling politico about you, questioning whether or not you are lying. We knew what the talking points were going to be, even before the plan came out, we knew the left was going to say this is a tax cut for the rich. Did you get bullied into coming up with the idea, you need another higher bracket, you want to raise taxes on the highest earners and say no, were going to take this deduction away . Is that why you have all of the ideas to make sure to stick it to the highest earners . Maria not at all. The president doesnt get bullied and i dont get bullied. These are sound principles that weve been working on, as i said, both during the campaign and all year with the senate and house leadership, and if we come up with an extra bracket, its all about creating a larger middle income tax cut, and as the president has said, hes not looking to lower taxes on the rich. Were not necessarily looking to raise taxes on the rich, but the focus here is middleincome tax cut, and weve been consistent on that all along. Anybody who says there is inconsistency, i dont know what theyve been reading. Therein lies the issue, whats rich . Lets talk about that for a second. The highest bracket is a Million Dollars earnings and up . Or what . Maria, that hasnt been decided. The issue is if we get rid of state and local taxes, it impacts different states differently, okay . Senator schumer has been complaining about this since the beginning of the year, and i understand it would be a 600basispoint increase in taxes on new york, california, new jersey and those states, and were sympathetic to the economy. Were working through these issues. Maria much more of the special edition of wall street week. Secretary mnuchin fighting off terrorism by choke off their money, thats coming up. Coming up on wall street week, innovation in saudi arabia. His Royal Highness prince muhammad bin salman building a 5 billion mega city. It is putting billions of dollars to work in the u. S. Through a blackstone Infrastructure Fund. Blackstone ceo Steve Schwarzman on what his fund p. Maria welcome back to the special edition of wall street week. Were bringing you the highlights from the historic future Investment Initiative in riyadh, saudi arabia. The United States is teaming up with the saudis to combat the financing of terrorism. An issue that is one of treasury secretary Steven Mnuchins most important priorities. He gave me an update on the progress of this important fight. Were here to open the terrorist financing targeting center, which this is something we sign a memoranda of understanding when the president was here. Its one of my single most important priorities, as you know, to fight terrorist financing and thrilled to be here in saudi. I looked at the three buildings today, theyre ready to be open, and launching center the here with saudi cochairing it with us. Well be coming out with new sanctions this afternoon on a joint basis and something were very proud of moving forward with. Maria how do you do that, secretary . We were talking earlier with people in the crown princes office and he is apparently looking to, right now, apparently extremists represent 20 of saudi, he said, and they want to get that down to 5 in the next two to three years. How specifically are you going to stop out extremists and terrorists with the center . I know they have a plan for that, theres a plan on promoting more moderate ideas, which is something we very much support. What the terrorists Financing Center is about, finding people who are using the Financial System to Fund Terrorism and terrorist activities. And we have our intelligence agencies working together and this is a multicountry approach. So the first time well have multicountries here in the gulf doing sanctions with us, and as you know, we think this is very effective. Its the reason why iran came to the table to negotiate the j. C. Poa, the president thinks we need a better deal. But these sanctions work and theyre a terrific economic tool to combat terrorism. Maria we have not seen a president be as tough against iran as we have seen President Trump be, and i think thats probably one of the things that the saudis and the u. S. Agree on, the enemies are on . The president is very concerned about north korea and iran, that is a big focus of ours. That was u. S. Treasury secretary steven mnuchin. My thanks to the secretary. Next here scheduled initial Public Offering for saudi aramco could be the largest ipo ever at 100 billion. A hot topic at the future Investment Initiative in riyadh. It is sought by every Major Exchange in the world including the new York Stock Exchange, i sat down with nyse president tom farley who wants that listing. See me in the halls at the new York Stock Exchange, everyone assumes my relationship is solely about the aramco ipo. Ive known from the minister level to the Company Saudi Aramco Company many years along before the ipo was a notion. New York Stock Exchange is ownered by the Largest Energy exchange in the world, im one of the managers of that business. Regarding the ipo, well compete for any ipo of a great global business, i cant say too much about saudi aramco in particular other than anyone you meet from the company and the ministry. I know you met several of them this week, theyre professional, sophisticated, and no surprise, theyre carrying out a very disciplined Due Diligence process to make the right decision for saudi arabia as a whole. Maria you think youre going to get the deal . Im not going to comment in particular. I dont want to prejudice any decision they make. For any great global ipo, we want them to make the right decision for them. We dont want to corner them into making something we think is the right decision. There is Something Like 34 trillion of market cap. Next closest exchange is a tiny, tiny fraction of that. In terms of the deepest liquidity in the world, thats in the United States, brand name, you get that from the new York Stock Exchange, its also a rigorous governance test to be listed on the new York Stock Exchange. If you list, there youre holding yourself out to be a wellrun, wellgoverned company. Thats the decision criteria, the benefits the new York Stock Exchange brings, i have no doubt other exchanges have unique benefits as well. Maria are you seeing Global Companies relative to the u. S. . The truth is there are a lot of startups saying i dont want to go public, the Regulatory Environment is too tight. Thats why there was a problem, people were wondering why the ipo market is not busier this year, startups are not going public . Im glad you asked. That the american audience likes to make a story not as Many American Tech Companies are going public. Thats true. Some of the great American Tech Companies have chosen to stay private. Last week alone, we had a young man who provided a company to allow for Consumer Lending in china. That company is worth over 10 billion. An amazing tech story. The friday Company Offers gaming, ecommerce and payments from singapore. We dont talk about it much because its not american. These are great Tech Companies choosing to go public, choosing the new York Stock Exchange, fortunately, im appreciative they did choose the new York Stock Exchange. Maria listed companies in the u. S. Down 50 over 20 years because of the Regulatory Environment. The president has said he is calling for ipos, the bar to be lowered. The treasury came out with a report, saying the Regulatory Environment is way too hard for companies to go public. What are doug in terms of lowering the bar, lowering the standard, making it easier for companies to go public . You are referring to a press report that came out. If you work your way down the press report, the next paragraph starts with the efforts the new York Stock Exchange and i personally have engaged in to push the administration to make it easier to engage in ipos. You mention the number of public companies. It is down by about half. Average market cap is up three times, the aggregate market cap. The average company is five or six times bigger. Its not working well for Small Companies and need to acknowledge it. Small companies are the lifeblood to free enterprise. Maria what can you do it get more Small Companies to go public . Simple things. The pendulum swung too far. With doddfrank, Big Companies can handle, it Small Companies cant. You can say Small Companies meet more with investors and analysts. Not require external audit for the first few years, and extend that to not only the tiniest ones and have it all new companies that are new to the public market. Maria it is unclear whether saudi aramco will list in new york at the new York Stock Exchange given recent legislation which allows the families of none of suit saudi government. Many people expect lawsuits should a big listing happen. My thanks to new York Stock Exchange president tom farley. Dont go anywhere, more wall street week right after this. Announcer coming up, saudis crown prince has ambitious plan to bring country into the future that includes half trillion dollar city and massive social reforms. When a cold calls. Achoo . Answer it. With zicam cold remedy. It shortens colds, so you get better, faster. Colds are gonna call. Answer them with zicam zicam. Get your better back. Now in delicious fruit drops. Maria with plans to build a mega city that carries a price tag of more than a half a trillion dollars, saudi arabia is investing heavily on a future that is not about oil. At the future Investment Initiative in saudi arabia, i spoke with his Royal Highness prince muhammad bin salman alsaad, it was clear more big changes are on the way for saudi arabia. Your highness, you have an incredibly beautiful country. You have the resources, but you are having radical ideas, some might say. Recently youve announced you will 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 dont want to get out of this topic and discuss politics outside of the scope of today, but ill just be very brief. Saudi arabia was not like this prior to 79. Saudi arabia and the entire region, you have the awakening project spread 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 of the saudi people are less than 30 years old, and quite frankly, we will not waste 30 years of our lives in dealing with extremist ideas. We will 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 world and contribute to the development of our country and the world. This is something that there are steps that ive taken, weve taken in the past that are clear. I believe that we will eradicate the rest of extremism very soon. So i dont think this is a real challenge because we represent the moderate teaching and principles of islam. And we have the right. Right is on our side and everything that we deal with. So i dont think were concerned. [ applause ] your highness, i feel if you are not using Artificial Intelligence you will get left behind. This is an area you want very strongly in niam . Undoubtedly, world is not going to wait for somebody to catch up. You have to be part of making the development, the new development in the world. As we mentioned at the beginning, the city will be built on the newest of technologies of today, the opportunity is unimaginable, a region that is almost vacant. There are many dreams from the saudi leadership, many of the saudis and many of our partners and of the large companies, are individuals. Thousands of dreams that will be established in neom and the building of neom. 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 conventional cities. Many things could happen. This what were trying to create in neom. Maria you can understand some people looking at your ambitious plans and saying, wait a minute, what is this all about . The kingdom of saudi arabia investing in solar . We know the demand is not only in energy, many of the other sectors use oil like petrochemical and many other sectors. We believe the demand for energy will increase dramatically in the future, so we dont think it will decrease, the demand for oil. It will increase between 230 to 2040, and it will not immediately collapse after that, so we could look at the conventional source of energy before oil, which is coal. If we look at the index for demand for oil, for coal, its still on the highest pace, so the use of solar energy does not mean it will negatively affect oil. We will present many numbers in the future in this regard. Maria our thanks to the crown prince for hosting us at the event. Dont go anywhere, more wall street week right after this. Announcer saudi arabia has eye on the same prize as President Trump. Infrastructure. Blackstone ceo Steve Schwarzman why that company is pouring billions of dollars into its Infrastructure Fund . And later this hour, Maria Bartiromo goes oneonone with the legend in technology, peter. Maria welcome back to wall street week, im Maria Bartiromo. All this hour, were bringing you the biggest highlights from the future Investment Initiative in riyadh, saudi arabia. A lot going on. Saudi arabia is committing to the future and making a major infrastructure push while trying to stomp out terrorism. The countrys Public Investment fund is contributing billions to the Blackstone Group in this effort on infrastructure. I spoke with blackstone ceo Steve Schwarzman about the fund and the need to improve infrastructure across the world. Weve announced that were planning on raising a 40 billion fund. We cant comment on fundraising because the sec makes us unable to do that, but the purpose of the fund, of course, is to put most of this money in the United States, and there are different types of infrastructure that we could be facilitating and could be that the United States at some point will be making improvements, in terms of approvals, to do infrastructure projects. When the governments building thing, anything that touches the government, in the United States takes somewhere between 10 and 15 years to get approved on average. If youre doing the same type of project in germany or canada, it takes two years. Maria wow, is that right . That short a time frame . 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 yeah, so where do you see the big opportunities . The president has talked about an infrastructure plan, obviously, he wants to put an infrastructure plan in place, got to get through tax reform first. Are you talking about bridges, highways, all of the above, what are the opportunities . The opportunities are in the private sector because you dont need these enormous approvals. Some for pipelines. Other types of energy things. Power plants, utilities, telecom, there are a variety of things that you can do where virtually all of the moneys that we raise can be deployed. Theres a bonus, if you will, if the government can reform, and i think politically the democrats are very in favor of expanding the infrastructure spin. I think their 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. For example, things like roads, bridges and other things that need to be improved. Maria so youre looking largely at the u. S. In terms of this infrastructure because i know here, you know, the crown prince yesterday was talking about this new city theyre developing, neom, from the ground up, and theyre going to need everything. There is that opportunity as well. How much of the fund will be u. S. Versus international . Well, the u. S. , this fund will be primarily u. S. Right. With the ability to do some outside the u. S. But its being raised and is geared for the u. S. Steve, let me ask you about the broader company. Obviously, the Blackstone Group has been incredibly successful. You are the largest alternative investment manager. Almost 400 billion in asset management. Congratulations. Where are you seeing the opportunities for the next five years . Well, were seeing a lot of opportunity all over. What were doing as a firm is we have been in the highest performing products in the world, whether its private equity, whether its real estate. Whether its rescue lending, and what weve learned is that investors want Different Levels of return, some want less risk, less return, and so were finding that we can now create products that for the average investor gives them a 7 to 8 return, and thats a potentially very large market. Maria in terms of looking at, you know, the segments that you find growth. Do you find that you want to be even more so in real estate, the Retail Sector . Where do you think at this point represents value . Well, value is different than us expanding the firm. Maria true. I thought you were talking about where is blackstone going . So blackstone has very substantial white space to grow the firm, as we go to different types of investors. Now this involves going to Retail Investors as well as institutions. In terms of asset classes, prices are higher now than they used to be. Maria yeah. But the economies of the world are all expanding. Its one of the few times where everything is going well. Maria that was the chairman, founder and ceo of the Blackstone Group, Steve Schwarzman. More wall street week right after this break. Announcer tech billionaire and trump supporter peter thiel is going all in on saudi arabia. Plus Carlyle Group founder David Rubenstein is leaving it all behind. He no matter how the markets change. At t. Rowe price. Our disciplined approach remains. Global markets may be uncertain. But you can feel confident in our investment experience around the world. Call us or your advisor. T. Rowe price. Invest with confidence. It does not take an extraordinary person to make a difference. Its just a matter of what kind of difference we choose to make. You know we do what we do on the field but we have a duty off the field as well. It doesnt take much to make a big impact. Just having a positive attitude or helping someone every now and then makes more of a difference than i think any of us realize. To learn more about starting an action team visit our website. Anyone can really make a difference. Maria he is a rarity, a Technology Billionaire who supports donald trump. I spoke with peter thiel in riyadh about the city of neom. The city of the future that his highness prince muhammad bin salman is building for a reported price tag of half a billion dollars. One thing weve been talking about here is what his highness is doing with neom and all of the technology that is going to 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 are going to be most needed . Well, theres a tremendous amount that one can do when one starts something new from scratch, because one thing thats very striking about the great cities of the world, like london, new york, you know, silicon valley, many other places, is that even though there is this incredibly dynamic economic places, its extremely hard to change things, and so new york city it costs a billion dollars to build one mile of subway or Something Like that. Maria wow. In san francisco, you cant build new highways or anything new, the transportation grid is set. So there is this very weird transportation problem with the big cities where in effect becomes incredibly hard to build new transportation once the basic citys been built. Its the Transportation Systems are inadequate and badly inadequate in all of our major cities, even in the developed world, the emerging world are catastrophic, in the developed world they are inadequate. It means 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 apartments. So i think it distorts the economics in the cities to a tremendous degree. In london, the inelasticity of housing is minus 2. If you built 1 more housing in london, the average price of the average house would go down 2 , which is a crazy economic reality. More housing you build, the less the housing is collectively worth. That tells you thats because the Transportation Systems are in the 19th century and its completely stuck, and thats a challenge they think you could rethink in a very exciting way, and so i wonder if one could do something to build a potentially enormous city but one where the transportation works at every level. Maria peter, lets talk about Artificial Intelligence. Weve talked a lot about it this week, and people are worried that the more a. I. And Machine Learning you have in a situation, the fewer jobs you have. Are robots going to be taking our jobs . Well, one of the things im always nervous about the abstractions, a. I. Is one of the greatest abstractions of all. Artificial intelligence can mean the next generation of computers or the last generation of computers or anything in between. A little bit in the future or far in the future. If you had generalized Artificial Intelligence, where you had a computer that was smarter and more able in every way possible, the problem with that is not economic but political. It would be like an alien from another planet landing and the question if aliens landed on earth would not be, what does this mean for the employment rate are . They friendly . Unfriendly . Things like that. Maria good point. To the extent the economic question is serious, its much more the political question. Now the history, of course, of technology has not been one of pure substitution, its been more complementary, as weve automated things in the industrial revolution, you know, its freed people to be more efficient and other things, and people are still mostly employed in our society, just as they were mostly employed 200 years ago, not all in agriculture, not all working in factories, as agriculture, and industry were automated as you had robots replace humans in factories, it freed people up to do other things. Thats been the history. And i tend to think thats still what will happen that a. I. Will make certain sectors more efficient and free people up to do other things. Its mainly a game of complementarity, a game of substitution only at the end if you have an a. I. That can do everything better, smarter and cheaper than any human being, and that would be very scary, thats where my intuitions would start to break down. Maria what do you think the skill sets are that people need to not just survive but thrive in this new world of Machine Learning . Well, you know, its always get asked these questions by young people, what should i be studying. Maria studying, right . And i think i think its hard to give general answers, but i think its always good to start with things where youre not competing directly with computers, where you still maybe have some real skill, where youre thinking very hard about the future about your place in it, and so you should be asking critical questions. And the default of our colleges and the School Systems is to tell people they dont need to ask those questions. If you get a college diploma, you will be saved, everything will be fine. I think thats not true. So i think this is very difficult. I think people should be asking these questions much earlier because the universities do not have an answer. Maria so you Say Something that you dont compete with the computer, i feel like im competing with the computer on everything. Are you talking about emotional things . Maria, youre in one of the safest positions possible, youre not competing with a computer. Maria okay. If we got the computer that looked just like you, that could do your job as well as you could, everybody in this room would be out of business well before you. You are the last person in this entire room who has to compete with a computer. Maria i want to ask you about cybersecurity, pallantier has incredible relationships across the world and government, and youve done a lot of work about cybersecurity. Tell us where the bad actors are, what can we do to protect ourselves in the new world where we feel everyone is getting hacked and data is so much more powerful . Theres a tremendous amount we can do in combining computers with humans, and a lot of the approaches in crime, defense, areas like this, and security, we either have all Human Solutions or all computer solutions. And i think the truth is that that theres a lot to be done with these intermediate hybrid solutions, what we did at paypal and paliantier is figure out good labor between analysts and automated divisions, if you get the division of labor right, you can do a lot. We had fraud at paypal, going back a while. We had a human team, and it was like looking for needles in a haystack, millions of transactions, couldnt figure out which was fraudulent. The old computer model wouldnt figure out the new ones. Its when we figured out a way to divide the labor between the human investigators and the automated computer part that you really got a handle on it. So i think this hybrid human computer synergy theme is underrated because we either want total automation or no computers at all, and i think the in between thing needs to be explored a lot more. Thats what paliantier has done. Maria are the bad actors an Obvious Group . Where are they . I dont think its an Obvious Group. We would have probably tracked them down. One of the challenges with cybersecurity is that its there is something about it where its very asymmetric. In most forms of defense, military technologies, the defense side is pretty good. But in cybersecurity, its very hard to defend. Its very easy to attack, and so if you have something where its incredibly easy to attack, incredibly hard to defend, that creates some very unusual challenges, and i think we havent quite figured out what to do about them, we certainly are not able to defend as well as we can, were not willing to take the precautions that are needed and it really calls out for some big a lot more work in the decade ahead. Peoples intuitions are shaped by their everyday experience where theres more of a balance between attack and defense. In the world of cyber, theres no balance at all. Attack is super easy, defense is super hard. Maria my thanks to peter thiel. Dont go anywhere, more wall street week after this. Announcer the Carlyle Group has been a wall street powerhouse for decades, why is the iconic founder stepping down now . He explains next, when wall street wee siren wailing barry murrey when you have a really traumatic injury, we have a short amount of time to get our patient to the hospital with good results. We call that the golden hour. Evaluating patients remotely is where i think we have a potential to make a difference. barry murrey we would save a lot of lives if we could bring the doctor to the patient. Verizon is racing to build the first and most powerful 5g network that will enable things like precision robotic surgery from thousands of miles away. As we get faster wireless connections, itll be possible to be able to operate on a patient in a way that was just not possible before. When i move my hand, the robot on the other side will mimic the movement, with almost no delay. Who knew a scalpel could work thousands of miles away . Wifiso if you cant live without it. T it. Why arent you using this guy . It makes your wifi awesomely fast. No. Still nope. Now were talking it gets you wifi here, here, and here. It even lets you take a time out. No no yes yes, indeed. Amazing speed, coverage and control. All with an xfi gateway. Find your awesome, and change the way you wifi. Wifiso if you cant live without it. T it. Why arent you using this guy . It makes your wifi awesomely fast. No. Still nope. Now were talking it gets you wifi here, here, and here. It even lets you take a time out. No no yes yes, indeed. Amazing speed, coverage and control. All with an xfi gateway. Find your awesome, and change the way you wifi. Maria private equity executive David Rubenstein surprised the financial world in october when he announced he would be stepping down as coceo of the private equity firm he founded Carlyle Group. We spoke to him in riyadh and more importantly why now. My partners and i, the founders decided were going to have a new generation running the firm as of january 1 and were very excited about it. Maria tell me the role youll continue to have . Obviously, youre still a major shareholder and youll be watching. I will be the coexecutive chair with bill conway, still involved in fundraising and public presence for the firm and as a large investor in the firms funds and interested how the firm does, but im not going away, ill be involved in a different role. Maria how do you want to see the investments change or look different . Obviously the firm has been so diversified from energy to getty to hertz and beats electronics, how do you want to see the investments change or diversify Going Forward . We want to make sure were at the cutting edge of investments. So we have made investments in a number of areas that are cutting edge, beats is one that is considered unusual for us, but turned out to be a good investment. We want to be around the world investing. Credit as well as private equity and Funding Investments and energy and real estate. Maria where do you see the growth in the world today . What are the attractive opportunities today . The real growth in the emerging markets, obviously. The emerging markets only get about 13 of all private equity dollars but 55 of the worlds gdp. So 13 of the dollars and 55 of the worlds gdp. Private equity dollars will go more and more to the emerging markets. Let me ask you about your thoughts about the impact of policy on washington. Okay. Maria waiting on tax plan to get to the president s desk, obviously there is health care as well. Whats your take on the implications of a tax plan . I think its likely there will be a tax bill passed by congress either 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. But i dont think theres much doubt that something will go through the house. Senate will be more complicated. I think the president and the congress will give us a tax bill. Maria what are the implications . I think its a tax cut on corporations to some extent and a cut on the middle class a bit. You will see more spending and more growth in the economy. Maria so you do think it will move the needle on Economic Growth, then . I think it will. I think Economic Growth will go up a bit and cost something to do this and well have to make it up in Economic Growth because the tax bill going to the house will probably increase the deficit by about 1. 5 trillion. Well have to make that up through additional tax revenues by higher growth. Maria do you think there are some areas of business that will benefit more so than others as a result of this tax plan . For example, youve got Smaller Companies or the passthrough companies or the 25 rate, we think, 20 rate for corporations. Who benefits . Well, Small Businesses should benefit. Thats the president s desire to have Small Businesses benefit. Ive learned over many years in washington, you never know whats in a tax bill until its final. And the lobbying is intense. Well have to see the print to see who benefits the most . Generally i think Small Business will benefit. Maria our thanks to Carlyle Group cofounder David Rubenstein. That will do it for us. Thank you very much for joining me for this special hour of wall street week. Catch the Program Every friday night, we have a huge lineup of guests planned for 2018. Tune into mornings with maria every weekday for the biggest stories impacting you and the smartest conversation in the morning. Thats right here on the fox business network. I hope its a wonderful Holiday Season and new year for you and your entire family. From all of us, have a great holiday. Watching. As the new year approaches, the market is rocking. Holiday sales soaring and President Trump is promising we havent seen anything yet. As tax cuts get ready to kick in, will the markets keep kicking up . Happy new year everyone. This is bulls and bears. The bulls and bears this week, welcome to all of you. Happy new year. You think