BEEN TALKING ABOUT.
WE'RE DOWN NEARLY 450 ON THE
DOW.
>>> FORMER HP CEO, CARLY FIORINA
JOINS US NOW.
ALWAYS GOOD TO SEE YOU.
THANK YOU VERY MUCH FOR COMING
ON.
WE CAN, I HOPE CONTINUE A
DISCUSSION WE WERE JUST HAVING
ABOUT THE PRESIDENT'S AGENDA.
I SEE YOU MAKE COMMENTS ABOUT
PRESIDENT TRUMP'S AGENDA
OVERALL, PARTICULARLY ON THE
TRADE ISSUE.
HE SEEMED TO GET A BUMP AT LEAST
IN WALL STREET'S MIND, PUTTING A
TRUCE IN PLACE WITH CHINA.
NOW WE'RE GIVING ALL THAT BACK
TODAY.
HE IDENTIFIED HIMSELF AS A
TARIFF MAN.
WHAT DO YOU THINK OF THE WAY HE
HANDLED THESE NEGOTIATIONS?
>> I THINK PART OF THE CONCERN
HERE THAT IS EXPRESSED ITSELF
OVER TIME IS PEOPLE ARE
WONDERING ARE THESE NEGOTIATIONS
SHOW OR ARE THEY SUBSTANCE?
AND WHAT I MEAN BY THAT IS, OF
COURSE, PRESIDENT TRUMP IS
ABSOLUTELY RIGHT WHEN HE SAYS WE
HAVE A TRADE IMBALANCE WITH
CHINA.
WE HAVE THINGS THAT ARE GOING ON
WITH CHINA ARE NEITHER FAIR NOR
FREE AND WHICH NEED TO FIX IT.
ON THE OTHER HAND, LOOK WHAT
HAPPENED FOR EXAMPLE, WITH
NORTH KOREA, BIG SHOW, BIG SHOW,
NOT A LOT OF SUBSTANCE.
I THINK THE MARKET RESPONDED,
THOUGHT, OH GOOD, PRESIDENT XI
AND PRESIDENT TRUMP ARE TOGETHER
AND THEY'RE SAYING THE SAME
THINGS AND WE HAVE A TRUCE.
AS MORE DETAILS CAME OUT
APPARENT MAYBE PRESIDENT TRUMP'S
VERSION OF EVENTS AND
PRESIDENT XI'S VERSION OF EVENTS
ARE DIFFERENT.
THAT SUGGESTS WE HAD A NICE SHOW
BUT THE THE SUBSTANCE MAY BE
QUITE DIFFERENT.
MARKET DOESN'T LIKE TARIFFS
BECAUSE TARIFFS ADD COSTS TO
COMPANIES.
THAT COSTS JOB AS WE'VE SEEN
WITH GM, FORD AND OTHERS.
CONNELL: YOU'RE DEFINITELY RIGHT
ON THE KEY POINT ABOUT, MAYBE WE
HAVEN'T TALKED ENOUGH ABOUT IT,
BUT WHEN THE TWO SIDES PUT OUT,
ESSENTIALLY PRESS RELEASES AFTER
THEY MET IN BUENOS AIRES THEY
WERE COMPLETELY DIFFERENT.
IF YOU LOOK AND COMPARED THEM
SIDE BY SIDE, WHAT THE U.S. IS
SAYING WENT DOWN AND CHINESE
SAYING WENT DOWN MAY HAVE BOTH
BEEN TRUE BUT HIGHLIGHTED
COMPLETELY DIFFERENT POINTS.
THAT BRINGS UP QUESTIONS IN
PEOPLE'S MIND IF THEY WERE ON
THE SAME PAGE.
ON THE POINT OF TARIFFS, YOU'RE
MAKING POLICY, YOU RAN FOR
PRESIDENT, YOU WOULD LOOK AT IT,
I'M SURE, SOME OF WHAT CHINA IS
DOING IS UNFAIR BUT HOW WOULD
YOU DEAL WITH IT?
WE ASK THIS WITH GUESTS ALL THE
TIME, IF NOT TARIFFS, THEN WHAT?
>> SO THE REASON TARIFFS DON'T
WORK BECAUSE THEY END UP HARMING
COMPANIES, CONSUMERS, ULTIMATELY
WORKERS.
WE'RE SEEING THAT WITH SOYBEAN
FARMERS.
SEEING THAT WITH AUTO PRODUCERS
LAYING OFF 15,000,
GENERAL MOTORS, GENERAL MOTORS
ESTIMATE THE TARIFFS ON STEEL
AND ALUMINUM HAVE COST THEM AN
ADDITIONAL ONE BILLION DOLLARS
ON THE BOTTOM LINE.
THAT MEANS JOBS.
SO THE PROBLEM IS, TARIFFS DON'T
WORK.
WE'VE SEEN THAT OVER AND OVER
AGAIN.
WHAT I WOULD DO HONESTLY SAY TO
CHINA LOOK, YOU ASK US TO PLAY
BY CERTAIN RULES IN YOUR ECONOMY
WE WILL ASK YOU TO PLAY BY THE
SAME RULES IN OUR ECONOMY.
WHAT THAT MEANS IS, YOU CANNOT
BUY COMPANIES 100% AS THE
CHINESE HAVE BEEN DOING IN
AMERICA.
YOU CAN'T LIST YOUR COMPANIES ON
THE NEW YORK STOCK EXCHANGE.
WE'LL PREVENT IT FROM DOING SO
IN CHINA.
IF YOU WANT TO MAKE AN
INVESTMENT IN THE AMERICAN
ECONOMY, YOU'RE GOING TO HAVE TO
GET THE AMERICAN GOVERNMENT'S
APPROVAL.
THOSE ARE ALL RULES THAT
BUSINESSES ARE FORCED TO PLAY BY
IN CHINA.
AND CHINA DOESN'T HAVE TO PLAY
BY THOSE SAME RULES HERE.
I WILL GUARRANTY YOU THAT THAT
WOULD IMPACT CHINA'S ECONOMIC
INTERESTS, AND THINK WOULD COME
TO THE TABLE BECAUSE ULTIMATELY,
CHINA CARES MOSTLY ABOUT THEIR
OWN ECONOMIC INTERESTS.
WE KNOW THAT WE HAVE ALLOWED
THEM TO PLAY BY A COMPLETELY
DIFFERENT SET OF RULES.
IT IS TIME THEIR RULES APPLY TO
THEM.
CONNELL: THAT IS INTERESTING.
THE PRESIDENT ARGUES I GUESS
THEY'RE AT THE TABLE NOW BECAUSE
OF HIS TARIFFS BUT YOU'RE SAYING
THAT IS NOT THE CASE?
>> NO.
I DON'T THINK THAT IS THE CASE
HONESTLY.
I THINK IT IS IN CHINA'S
INTERESTS TO BE AT THE TABLE.
THEY CERTAINLY DON'T LIKE THOSE
TARIFFS IN SOME WAYS, BUT AS
WE'VE SEEN, THEY HAVE THE
ABILITY TO PUNISH OUR OWN
PRODUCERS, PERHAPS EVEN MORE
DRAMATICALLY THAN WE CAN PUNISH
THEM.
LOOK WHAT IS HAPPENING IN THE
MIDWEST.
OUR PRODUCERS ARE BEING
PUNISHED.
THE CHINESE KNOW HOW TO PLAY
THAT GAME.
IT IS WHY TARIFFS GENERALLY LEAD
TO SLOWER ECONOMIC GROWTH.
WE'VE SEEN THAT BEFORE WITH
SMOOT-HAWLEY AFTER THE
DEPRESSION.
CONNELL: RIGHT.
>> TARIFFS GENERALLY LEAD TO
HIGHER COSTS, LOWER GROWTH AND
FEWER JOBS.
CONNELL: WHAT DO YOU, WHAT IS
YOUR OVERALL VIEW, A, THE
PRESIDENT HOW HE HANDLES THE
ECONOMY?
THAT IS WHERE HE HAS HIS BEST
RATINGS IN THE POLLS.
NOT TREMENDOUSLY POPULAR IN
OVERALL APPROVAL RATINGS, SOME
POLLS HE IS WELL OVER 50% IN
TERMS OF HANDLING THE ECONOMY
AND TAXES AND NEXT QUESTION WHAT
IS THE OUTLOOK FOR THE ECONOMY
NEXT YEAR?
THAT SEEMS TO BE PRICED INTO THE
MARKETS TODAY AS WE LOOK AT
TREASURYS AND SOME OTHER ACTION.
>> THAT'S RIGHT AND THAT OUTLOOK
IS NOT ALL THAT ROSY.
FIRST I WOULD SAY NO QUESTION
THAT MANY OF THE THINGS THAT THE
ADMINISTRATION HAS DONE HAVE
BEEN INCREDIBLY GOOD FOR THE
ECONOMY.
TAX REFORM WAS GOOD FOR THE
ECONOMY.
REGULATORY REFORM WAS GOOD FOR
THE ECONOMY.
THERE IS NO QUESTION.
I PERSONALLY WISH WE WOULD GET
TO INFRASTRUCTURE BECAUSE I
THINK, THE RIGHT KIND OF
INFRASTRUCTURE PROGRAMS,
STRUCTURED AS A PUBLIC/PRIVATE
PARTNERSHIP WOULD CONTINUE TO
ADD GROWTH TO THIS ECONOMY.
THE CONCERN I THINK IS THAT THE
ESTIMATE LAWS FROM TAX REFORM IS
ABATING.
THE STIMULUS FROM REGULATORY
REFORM IS ALREADY BAKED IN.
CONNELL: RIGHT.
>> WE HAVE OBVIOUSLY DEFICITS
THAT ARE SPIRALING NOW, I WOULD
ARGUE OUT OF CONTROL.
TRADE ISSUES THAT ARE
UNRESOLVED.
COSTS THAT ARE GOING UP FOR
COMPANIES IN MANY CASES BECAUSE
OF TARIFFS, THREAT OF TARIFFS.
THE GENERAL OUTLOOK IS STARTING
TO BE WOW, WE HAD A GREAT
ECONOMY FOR THE LAST 18 MONTHS.