Name: Ernst & Young's CEO Is 'Optimistic' About a Trump Presidency
Uploaded: 2020-01-02
Duration: 3 min 41 s
Description: Mark Weinberger explains what he’s looking forward to.

 Mark, so the elections are over and investors and business leaders are all trying to figure out, what is this Donald Trump presidency going to look like? What have you been hearing? It's a new crowd, and they're trying to figure this out. What's clear is there's going to be massive changes. There's going to be new people in new roles. And that's what's got to come first, because they have to make these decisions beyond the big high-level decisions we've heard about. So watching when these appointments are to be made-- not only at the cabinet level, subcabinet, and the like-- and then seeing what's going to happen in the budget that's due out in February is going to give us a blueprint for how the year's going to unfold. There was a lot of ideas and promises that were thrown out during the campaign. Which ones do you think are going to be the top priorities? Which ones might go away? I think we'll see more compromise. Even though Republicans control house and Senate, we know it's difficult to move through those bodies. Priorities will matter. Infrastructure clearly is near the top of the list. We know that's going to be front and center. Repeal or reform the Affordable Care Act is going to be front and center. Some executive orders and paring back regulations-- the president could do that on his own-- especially ones that were put in place in the last six months of the previous administration-- that will be front center. And them a lot of people talking about tax reform, which will probably take a little longer than people expect-- It looks like the markets are rallying on the hope that there will be all of these changes, specifically tax reform and deregulation. What shape do you think that those things could take? I think you will see lower rates on both individuals, and passthrough entities, and corporations. You will see a more territorial system. You will also see, I think, on the infrastructure side, government and business trying to work together to come up with this public-private partnership. The $1 trillion of infrastructure that's been put on the table cannot be afforded by the government, and so there's going to have to be some movement there. And so what does all this mean for the economy? Obviously, tax cuts and repatriation of the tax holiday for earnings overseas could be a help. Does this really move the economy forward? The key to watch-- is business going to start investing? Capital expenditure has been down for four years in a row-- unprecedented. Without capital expenditures and R&D, there's no-- not going to be growth in GDP. And so will businesses now, with lower tax rates and a belief that regulation will be pulled back, start to open up their wallets? What about jobs? Jobs is crucial. That's what President-elect Trump ran on. You've got a lot of things going on here. A lot of the discussion about trade was jobs are going away or leaving the US because of trade. Technology is a bigger factor. A lot of discussion at this conference here, at the UI Conference, on entreprenuers, on disruption, and what technology, and robotics, and artificial intelligence is going to do. That's going to change the workplace, going to change jobs-- doesn't mean there'll be less jobs. The skills required to do the new jobs, the jobs of the future, though, have to be learned. And there's a lag, and that takes time. You feel the pain before the new jobs come. So I think jobs is going to be hard to grow at a much faster rate. So fast forward to four years from now, which will be the end of the first term of Donald Trump-- what do you think we're going to be saying about the economy and the business environment? Well, first of all, I'd love to think it was just the United States. Remember, we're much more global than we've ever been-- 95% of consumers outside the United States, 80% of GDP growth outside the United States. What happens with Brexit over the next three to six months is going to be really important to see how that-- we got big elections in Germany, and France, and Netherlands. They're going to have a big effect on US companies investing overseas. But all that being said, I think we're going to have some regulations pared back, I think we're going to have lower taxes start to come onboard, and I think we're going to see gradual improvements. But obviously, the Fed is a big question too, as to how far and how fast they go. 

Ernst & Young's CEO Is 'Optimistic' About a Trump Presidency

Leadership

Mark Weinberger explains what he’s looking forward to.

Marshall. The elections are over, and investors and business leaders are all trying to figure out what is this Donald Trump presidency gonna look like? What have you been hearing? It's a new crowd, and they're trying to figure this out. Uh, what's clear is gonna be massive changes. There's gonna be new people in new roles, and that's what's got to come first because they have to make these decisions beyond the big high level decision we've heard about watching when these appointments are gonna be made not only at the Cabinet level, subcabinet like and then seeing what's gonna happen in the budget that's due out in February is gonna give us a blueprint for how the years get unfold. There was a lot of ideas and promises that were thrown out during the campaign. Which ones you think are gonna be the top priority. Which was Michael away, I think. Well, Seymour compromise. Even though Republicans control House and Senate, we know it's difficult to move through those bodies. Priorities will matter. Infrastructure clearly is near the top of the list. We know that's gonna be front center repeal or reform. The Affordable CARE act is gonna be front center, some executive orders and paring back regulations. President could do that on his own, especially ones that were put in place in the last six months of the previous administration. That will be front and center and then a lot of people talking about tax reform, which will probably take a little longer than people expect. The markets are rallying on the hope that there will be all of these changes, specifically tax reform and deregulation. What shape do you think? I think you will see lower rates on both individuals and pass through entities and corporations. You will see a more territorial system. You will also see, I think, on the infrastructure side, government and business trying to work together to come up with this public private partnership. The trillion dollars of infrastructure that's been put on the table cannot be afforded by the government, and so there's gonna have to be some movement there. And so what does all this mean for the economy? Obviously, tax cuts on repatriation off that tax holiday for burning overseas could be, Ah, help it. Does this really move the economy forward? Taquito watches business going to start investing capital expenditure has been down for four years in a row, unprecedented without capital expenditures and RD. There's no gonna be not growth in GDP. And so will businesses. Now, with lower tax rates and a belief that regulation will be pulled back, start to open up their wallets. What job Jobs is crucial. That's what that's what the president elect Trump ran on. You got a lot of things going on here. A lot of the discussion about trade was jobs are going away or leaving the U. S. Because of trade. Technology is a bigger factor. A lot of discussion at this conference here at the White Conference on Entrepreneurs on Disruption and what technology and robotics and Artificial Intelligence is going to do that's gonna change the workplace. Gonna change jobs doesn't mean they'll be less jobs. The skills required to do the new jobs. The jobs of the future, though, have to be learned. And there's a lag and that takes time. You feel the pain before the new jobs come. So I think you know jobs is gonna be hard to grow at a much faster rate so fast forward four years from now, which will be the end of the first term of Donald Trump. What do you think we're gonna be saying about the economy and the business environment? Well, first of all, I'd love to think it was just the United States remember, much more global than we've ever been. 95% of consumers outside the United States, 80% of JI degree Peter Growth outside the United States. What happens with Brexit over the next 3 to 6 months is gonna be really important to see how that we got big elections in Germany and France. Netherlands. They're gonna have a big effect on US companies investing overseas. But all that being said, I think we're gonna have some red regulations pare back. And they were to have lower taxes start to come on board, and I think we're going to see gradual improvements. Obviously, the Fed is a big question. Two is to help far and how fast they go