tv Maria Bartiromos Wall Street FOX Business April 2, 2021 10:30pm-11:00pm EDT
improving economy, looking interesting. jack: jack, thank you as always, to read more check out this edition of barron's.com and don't forget to follow us on twitter at barron's online, that is it for us, be healthy, where your mask and will see you next week on "barron's roundtable". ♪ i ♪ rtiromo wall street" is. maria: happy easter weekend welcome to the program that analyzes the week that was in helps positioning for the week ahead i am maria bartiromo president biden pushing a massive two and a quarter trillion spending plan but can the country afford it, we will ask the chief economist this weekend and later will get reaction from a member of the house infrastructure committee texas congressman brian babin is here first let's take a look back at the week's big moments with top newsmakers on "mornings with maria" on this edition of
the talkers. >> we know that you know about the region but your seeing companies being forced to speak out about it. >> it is a huge huge human rights abuse issue. maria: the growing calls to boycott the ccp impact the way that you look at investing. >> they are going to be the uppermost in people's minds when we look at est. maria: president biden first says his vice president kamala harris is going to be the point woman on the border a couple of days later her office comes out and says no. >> obviously the messages off we have to have a diplomatic relationship with the country that is sending these folks but a suitcase full of money in 2016 didn't stop the search.
maria: i want to get your reaction to what you're hearing in terms of the messaging of this administration on the border is. >> i feel like jen psaki is working what they've given her to work with which is not much. maria: tell us why restarting the industry is so important and what is stopping the industry from moving forward. >> we have been effectively under a no sale order for over a year and for this foreseeable future they will be docked here that's nearly $9 billion in revenue in florida. maria: this week we saw a record high for the dow and s&p 500 as we kicked off the second quarter the ten year treasury yield also hit a 14 month high, infrastructure stocks rallied ahead of details of the presidents to an a quarter trillion dollar infrastructure spending plan the chief economic advisor joined this right now to talk more about that, it's great to have you this weekend, the tax-and-spend program will be
funded by increases in taxes on companies and upper-middle-class as the country tries to recover from the pandemic, is this the kind of massive spending that could potentially kill the economic growth story just as it's getting underway, what is your take on all of this. >> the hope as the second engine to the economic growth story, not just a stimulus engine but the supply side and if it's will design it has the potential of crowding in private investment and charging the growth everybody agrees that are infrastructure needs upgrading physical technological and human, the important thing is to do it in a way that is sustainable and so far that is what it looks like but the details are going to be critical. maria: mohammed do you worry about 28 trigon dollars in debt, do you worry about spending, getting out of control leading
to inflation? >> two different issues, first on the inflation side we are heading to high inflation and i do worry that the inflation rates will be not just above what we can expect but also for longer why, we have demand outpacing supply and high input cost, there is an inflation issue irrespective of what do you think of the infrastructure program, the infrastructure program is going to be spent over a number of years, if it leads to higher growth which it can and it should, then we would have fewer worries about debt and fewer worries about inflation, we have an issue that we need to think about and we also have to design the infrastructure program well to produce extra growth everybody wants. maria: i was talking about the former chair of the economic advisors larry lindsey and
here's what he said. >> we are going to be having very large double digit as 8% of gdp deficit as far as the eye can see, it is just not politically possible to trim deficits of more than 2% of gdp every year. maria: let me ask you your thoughts on growth, do you expect we will see growth in 2021, nancy lazar the founder and chief economist of cornerstone macro is looking at gdp for 2021 of 9%, are you in that camp? >> i'm not as high as her but higher than consensus, is 6 - 6 and half percent, i think we get easily above seven provided we don't have another covid shock, provided we are able to limit infection and continue
vaccination. but this economy has a lot of growth momentum to it, we have a private sector with quite a bit of savings on average, not everybody but on average and pent-up demand, we have significant public resources being put to work and we are foreigners looking to invest in our country because they're more attractive than the rest of the world so we have all the elements out of the covid shock of last year. maria: it looks like the u.s. is outperforming the rest of the world, i agree with that, what is your take on europe, it'll looks like there vaccination rollout was underwhelming and as a result you see more lockdowns, france announcing the new lockdown this week, is europe headed for a double dip recession? >> yes, i suspect they are in a double-dip recession already, the three elements that you mentioned first they got the vaccination program completely wrong, they did not get enough
supplies, the politics has given different signals and there was resistance on part of the population. second they have infections out of control and as you pointed out francesca lockdown germany and germany has to have a possible lockdown in the policy side is also disappointing, it is going to be a significant year of underperformance for europe both relative to what it can do and relative to the united states. maria: all of the spending has been certainly a boon for the stock market and this economy, what are we up to $7 trillion in spending in the u.s. thrown at the economy in the last year, over the last year, is it working? is. >> it didn't work after the crisis, we had record levels in the stock market as we did earlier, were having all sorts
of financial engineering going on, there is no doubt if you put this much liquidity into an economy stocks, houses, whatever you can think of a go up but we have seen pockets of excesses in a responsible risk-taking, the general theme of really good news for investors, be careful we had accidents in the first quarter that could've derailed the markets, liquidity does good things but it also encourages bad things, that is the balance that we have to strike right. maria: good context on that, it's great to see you. thank you. >> thank you for having me. maria: mohammed, president biden labeling his massive tuna have trigon dollars spending proposal
as an infrastructure program, it is actually jampacked with spending on liberal projects like community development, green energy and more, texas congressman brian babin is here he says it's another democrat trojan horse bill, he is next. ♪ i have the power to lower my a1c. because i can still make my own insulin. and trulicity activates my body to release it. once-weekly trulicity is for type 2 diabetes. most people taking it reached an a1c under 7%. trulicity may also help you lose up to 10 pounds and lower your risk of cardiovascular events, whether you know you're at risk or not. trulicity isn't for people with type 1 diabetes. it's not approved for use in children. don't take trulicity if you're allergic to it, you or your family have medullary thyroid cancer, or have multiple endocrine neoplasia syndrome type 2. stop trulicity and call your doctor right away if you have an allergic reaction, a lump or swelling in your neck, severe stomach pain, changes in vision, or diabetic retinopathy.
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maria: welcome back déjà vu all over again president biden's massive two and a spending proposal is being sold as an infrastructure improvement program for only a fraction of the money would go towards fixing roads, bridges and railways, most of the funds will go toward green energy, manufacturing support, research and development of retrofitting evergreen economy, it sounds a lot like the 1.9 trillion other bill that was sold as the covid
plan, brian babin is on the house infrastructure committee and he joins me right now, it is great to see you, thank you for being here, give us your reaction to the president's plan, you're an expert on infrastructure. is this an infrastructure plan? >> you said it just right, just perfectly it's going to be similar to me to the $1.9 trillion stimulus bailout of covid, i think were right back to of enormous spending with no gop input into it, this is certainly something that the american people should be very skeptical of, i know what i am, i think the american people need to be aware, democrats bearing gifts like this and telling us is going to be something that's basically a trojan horse for the big spending and they spend money like drunk sailors, we have a $28 trillion national
debt and they want to spend even more and boggles my mind. maria: one thing that larry lindsey told me and former chairman of the economic advisor, he's making this assumption, president biden that he's going to get revenue from tax increases from the next 15 years, the model is spending this money over the next eight years and taxing people over the next 15 years gives you the revenue to pay for it, how is he making this bet that taxes are going to be where he wants them for the next 15 years. h.r.1 keeps him for 15 years is. >> that is the plan, you said it right there, they don't have a crystal ball, all they know how to do is raise taxes, increase spending, put her children and grandchildren and further and further into debt, it is a never
ending cycle that's going to wind up ending badly, your previous guests was talking about the return of inflation, i really worry about that, we have it roughly 2 trillion-dollar package coming along and president biden is saying some of his advisers are quoted as saying the american people have learned through covid pandemic that government has a new role to play and they think that they've done a great job across this country and lockdowns and repressing businesses in closing down people's small businesses and nothing can be further from the truth that that helps the economy. and i'm from texas and they just want to be free of government interference and this is nothing but a renewed deal of provisions
that are good to be hurtful for the state of texas and any other petroleum producing states, i worry about it, they're gonna run it through the reconciliation it appears. maria: they will get this through the reconciliation, how do you vote, it sounds like they're planning on pushing this forward with or without your vote is. >> that's exactly right, they talk a good game president biden talks about bipartisanship and pelosi talked about reconciliation, we'll have to see how that works out, i'm very skeptical of this whole thing and rolling back tax cuts that we work so hard on during times of administration in the tax cuts, just imagine one year ago last month, we had the best economy we seen in decades lowest on employment rate that
we've seen historically for many people and for now they want to come back with a great and warmest spending package and think that's going to bail us out in this recession. maria: it's good to see you it's unfortunate there is a lot of word games and dirty tricks going on, we will continue to spot like this, thank you for joining me, coming up four-star general jack king is here on what is behind china's 400-dollar investment deal with th not everybody wants the same thing. that's why i go with liberty mutual — they customize my car insurance so i only pay for what i need. 'cause i do things a bit differently. wet teddy bears! wet teddy bears here! only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪
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recent chinese warplane incursion into taiwan's defense of airspace one navy commander says the situation could i wrapped sooner than anyone thinks, i asked retired four-star general jack king to explain what the concern is. >> here is what everyone is concerned, taiwan cannot defend itself has military capability that we've been providing it for but there's no match to the chinese military for sure, the idea that taiwan would impose enough cost on an invasion to delay the success of that invasion that would commit the united states to be an ally and that itself would be a deterrent, that deterrence is eroding significantly because the united states, the principal ally in the region is outgunned in the region.
that is discussed before, the chinese have more ships, more airplanes with a qualitative advantage they ought to be sure but numbers do matter, they were quality on their own, they have the largest conventional arsenal level missiles in the world capable of taking out her carrier and taking out her inner fields in wargames and they do absolutely that. maria: that's is why i been so focused on china, their priority in china and the cnese commonest party in their military, when you are investing in the company tied to the military you are finding this expansion and look what you just said, they are to have the stronger navy we think, the question becomes what will the united states do, i know the u.s. already has supplies to taiwan where the number of weapons deals over the year but it's questionable if the u.s.
will come to the defense of taiwan if taiwan is invaded by the ccp, let me just mention they signed a massive $400 billion deal with iran this calls for large-scale chinese investments in tehran over the next 25 years in exchange for lasting oil supply the wall street journal is out with an editorial this morning saying about the new deal, warning the u.s. and allies about trying to disrupt international order if mr. biden wants to restore the rules based global order the u.s. and its allies will have to do it, they could talk about the designs of their adversaries, your reaction to this deal between china and iran as were talking about china potentially invading taiwan. >> the deal with china and iran
is a strategic partnership that they set for 25 years these are two like-minded countries that want to change the rule-based order that exists they resent the united states and like-minded democracies around the world iran musser control dominate the middle east, they had their way in achieving a lot using the proxy wars in syria and yemen undermining the government and our rock and already controlling lebanon so what is this deal really about, the steel in china coming to ron's assistance to give them cash flow which they desperately need because of the u.s. imposed sanctions and as a result the other countries imposing sanctions on iran have crippled their economy. this is a big deal because it takes a lot of the pressure off from the united states on her allies and also take the pressure off for them to have to come back in and negotiate any
idea of dividing the administration, a better deal than what we have as opposed to removing the sanctions for their willingness to come back and negotiate. on china's part at 30 understood while were no longer depend on middle east oil which is a good thing although we certainly have a national interest the flow of oil in the middle east is in the u.s. national interest because it helps to maintain a stable world economy, china is over 60% depend on middle east oil, they are working the steel to get a discount strategic flow of oil in china is iran's biggest customer so it's not exactly anything for them to get oil but is in writing and it's a 25 year relationship china's working with our allies in the region for the same reason. maria: my thanks to general jack king, more wall street right
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>> we have another big show in the works for next week and turn into wall street every friday night 9:00 p.m. eastern for a big show and looking ahead in this week and on fox news i'll see you sunday morning 10:00 a.m. eastern on fox news channel was sunday morning futures we have a newschannel john barrasso, ken paxton at the department of homeland security secretary chad wolf joining us this weekend, start smart on fox
business every weekday from 6 - 9:00 a.m. eastern with mornings with marie on fox business 6 - 9 i hope you start your day with us every weekday. that will do it for us, thank you so much for watching i hope you have a wonderful rest of the easter to all, i will see you next time. ♪. gerry: welcome to the wall street journal at large while joe biden was launching a multitrillion dollar spending this week a new rallying cry to the political lexington, in california the first lady doctor jill biden gave a rousing speech to what appeared to be an audience of hostages tied to their speech but closer inspection a performer could in a field she told them presumably in a language she thought they would understand about the