CHARLES: LET'S GET RIGHT TO IT.
BRING IN THE MAN WITH THE VELVET
SLIPPERS.
WILBUR ROSS, COMMERCE SECRETARY.
MR. SECRETARY, FIRST OF ALL,
ALWAYS GREAT TO SEE YOU.
A LOT OF REPUBLICANS ARE ANGRY
AT THIS DEBT CEILING DEAL, THE
BUDGET DEAL.
WHY DID THIS GO THROUGH?
NOW WE ARE BREAKING ALL THE
CAPS.
SHE'S TAKING A VICTORY LAP OF
SORTS.
>> I THINK IT'S GOOD TO
DE-POLITICIZE THAT, GET IT PAST
THE ELECTION.
THAT'S REALLY WHAT THIS DOES.
THERE'S ENOUGH ADVERSE POLITICAL
ENVIRONMENT IN WASHINGTON RIGHT
NOW.
WE REALLY NEED TO GET ON WITH
THE REAL BUSINESS, PASSING
USMCA, THINGS LIKE THAT THAT
WILL REALLY HELP.
CHARLES: TELL THE CONSERVATIVES
IN OUR AUDIENCE MAYBE THE
ADMINISTRATION WILL FIGHT FOR
LOWER SPENDING IN A SECOND TERM?
>> I THINK SO.
CHARLES: LET'S TALK ABOUT THE
BIG NEWS, WHICH IS THAT GDP
REPORT.
2.1%.
THE CONSENSUS COMING INTO THE
WEEK WAS 1.8% BUT LET'S BE
HONEST, WALL STREET WAS LOOKING
FOR 1.3%.
THAT'S A BLOCKBUSTER NUMBER
DRIVEN BY THE AMERICAN CONSUMER.
>> ABSOLUTELY, AND IT'S DESPITE
THE PROBLEMS IN TRANSPORTATION
EQUIPMENT.
AS YOU KNOW, BOEING HAS BEEN
SIDELINED ON THE 737 MAXES.
THAT PROBABLY TOOK .4 OFF SO
IT'S REALLY LOWERED -- IT'S
REALLY BETTER THAN THE NUMBERS
EVEN SAID AND THAT WILL COME
BACK IN ONCE THOSE PROBLEMS ARE
SOLVED AND THOSE PLANES ARE
DELIVERED.
CHARLES: THE OTHER RED FLAG,
BUSINESS INVESTMENT, A LOT OF
PEOPLE ARE SAYING IT HASN'T
NECESSARILY LIVED UP TO WHAT WE
WERE EXPECTING OR PROMISED BY
CORPORATE AMERICA WHEN IT GOT
THE BIG TAX CUT.
SOME ARE SAYING IT'S BEING
INFLUENCED BY TARIFFS.
WHAT DO YOU MAKE OF THE BUSINESS
INVESTMENT PART OF IT?
ALTHOUGH I.P. HAS BEEN STELLAR
SINCE THE ADMINISTRATION'S COME
IN.
>> RIGHT.
WELL, I.P. SHOULD BE COUNTED
VERY MUCH AS BUSINESS INVESTMENT
BECAUSE WE'RE CHANGING THE MIX
OF THE ECONOMY AWAY SOMEWHAT
FROM BRICKS AND MORTAR TO I.P.
SOFTWARE, ARTIFICIAL
INTELLIGENCE.
SO IT'S NOT SURPRISING THAT THAT
KIND OF A SHIFT WOULD OCCUR.
WHAT IS INTERESTING IS BUSINESS
INVENTORIES WENT DOWN.
INVENTORY'S DOWN.
THAT'S A GOOD THING BECAUSE THEY
ARE GOING TO HAVE TO BE REPLACED
LATER ON.
CHARLES: $44 BILLION IS A LOT.
THAT'S AN ANOMALY AND TO YOUR
POINT, THAT MEANS THIRD QUARTER
SHOULD BE REALLY GOOD IN THAT
REGARD.
LET'S TALK ABOUT CHINA TRADE FOR
A MOMENT.
WHERE ARE WE, THE MEETING IS
NEXT WEEK, WE DON'T EXPECT A
DEAL OUT OF THAT, BUT IT FEELS
LIKE PERHAPS WE ARE MOVING
TOWARD A DEAL AGAIN.
>> WELL, THE REAL QUESTION NEXT
WEEK IS WILL THEY GO BACK TO
WHERE WE WERE BEFORE THEY
CHANGED THEIR MIND.
THAT'S THE IMPORTANT THING.
WE WERE VERY CLOSE THE A
TRANSACTION BEFORE AND NOT JUST
AT THE 40,000 FOOT LEVEL, FAIRLY
DETAILED LEVEL.
CHARLES: WERE YOU SURPRISED,
SOME CHINA, LONG-TIME CHINA
WATCHERS SAID THAT'S WHAT THEY
TYPICALLY DO.
IN REGULAR BUSINESS DEALS THEY
TAKE A SHOT AT THE LAST MOMENT,
SEE WHAT HAPPENS, IF IT DOESN'T,
GO BACK TO THE DRAWING BOARD?
>> IT'S NOT A UNIQUE NEGOTIATING
TACTIC TO GET THE OTHER GUY TO
WHERE HE'S AGREEABLE, THEN SEE
IF YOU CAN FURTHER IMPROVE THE
DEAL FOR YOURSELF.
IF THAT'S ALL IT IS, IT
SHOULDN'T BE A BIG DEAL AND WE
WILL GET OVER IT.
CHARLES: ONE OF THE THINGS THAT
SEEMED TO BE HELPING IS
CORPORATE AMERICA TRYING TO GET
SOME OF THESE CORPORATIONS TO
COOPERATE.
ON THAT NOTE WE HAD A TWEET FROM
PRESIDENT TRUMP OUT EARLIER
WHERE HE SAYS APPLE WILL NOT BE
GIVEN RELIEF FOR MAC PRO PARTS
THAT ARE MADE IN CHINA, MAKE
THEM IN USA, NO TARIFFS.
YOUR THOUGHTS ON THAT?
>> WELL, THE PRESIDENT IS VERY
COMMITTED TO MAKE AMERICA, BUY
AMERICA AND HIRE AMERICA.
THAT'S OUR DOGMA.
WE WILL STICK TO THAT.
AND IT'S APPROPRIATE.
THAT'S WHAT HE WAS ELECTED TO
DO.
THAT'S WHAT HE'S DOING.
HE'S HONORING HIS CAMPAIGN
PROMISES.
CHARLES: THERE'S A RESEARCH
REPORT OUT FROM ZILLOW WHERE
THEY GO WITH THEIR AGENTS AND
ANALYSTS AND THEY THINK WE WILL
HAVE A RECESSION NEXT YEAR.
WHAT DO YOU MAKE OF THAT?
>> THE ENEMY KEEPS POSTPONING
WHEN THE RECESSION'S GOING TO
COME.
THEY ARE DYING TO HAVE A
RECESSION.
THEY CAN'T BEAR GOING INTO NEXT
YEAR'S ELECTION WITH THE ECONOMY
THE WAY THAT IT IS.
BUT YOU GET USMCA THROUGH,
THAT'S A HALF A POINT OR
THEREABOUTS ON THE ECONOMY.
IT'S --
CHARLES: WHAT IF THEY DON'T GET
IT THROUGH?
EVERYONE WANTS IT.
FARMERS WANT IT, MANUFACTURERS
WANT IT, AMERICANS WANT IT.
>> IF THEY DO HOLD OFF AND DON'T
GIVE IT, IT'S A WONDERFUL
CAMPAIGN ISSUE BECAUSE THEY
WOULD CLEARLY BE STARVING THE
U.S. ECONOMY, STARVING THE U.S.