WHEN: Today, Wednesday, January 18th
WHERE: CNBC's "Squawk Box"
Following are excerpts from the unofficial transcript of CNBC interviews on CNBC's "Squawk Box" this morning live from the World Economic Forum in Davos, Switzerland. For a roundup of all the interviews on CNBC's "Squawk Box" today, go to davos.cnbc.com.
All references must be sourced to CNBC.
Larry Summers, former U.S. Treasury Secretary:
SUMMERS ON TRUMP RHETORIC
I think it needs to be recognized that the consequences of rhetoric so far has been a 15% appreciation in the Mexican peso that makes every business decision 15% more favorable to Mexico relative to Ohio. And that's a big step against the economic interests, against the workers who are an important part of the President-elect's constituency.
SUMMERS ON THE DOLLAR
Fiscal expansion coupled with monetary tightening, coupled with increased protectionism, coupled with a border adjustment tax, is a policy prescription for a stronger dollar. And so to pursue across the board policies that will push the dollar up and then to use rhetoric about a weaker dollar, I think is to leave the market confused.
SUMMERS ON CHINA
I think China when it was a very poor country, it was fine for it to be focused only on itself. I think with the passage of time and with gaining economic strength, they do need to do more to uphold the system. And we need to encourage them in that and we also are going to need to recognize that it's not our system, it's everybody's system, and that we're going to have to be prepared to engage in the spirit of compromise.
Toby Cosgrove, Cleveland Clinic CEO:
COSGROVE ON OBAMACARE
Toby Cosgrove: I think if we don't do anything, we'll see fewer exchanges across the country. How many fewer, I can't say but certainly.
Joe Kernen: Would it collapse Toby eventually?
Cosgrove: the exchanges?
Cosgrove: I don't think it will collapse I think we need to see.
Kernen: Under its own weight?
Cosgrove: No I believe so. I think it is moving us in the right direction and I think everyone in healthcare feels that way. Going from volume, paying for value, it has done some good things, but clearly with any 3,000 page bill, it's not going to be perfect the first time around.
COSGROVE ON MANDATES
It was really surprising that more people didn't buy into this. That's really what the problem was with the exchanges. Mandate seems to be a bad word. Most insurance -- look at car insurance, you can't drive a car without insurance. You stop and think about it, why would you not have to have some sort of healthcare insurance? That requires mandates.
COSGROVE ON REFORM
There has to be a couple things that we like to see. I think they like to see the number of regulations decrease. We have 3,000 pages of regulations right now, which is just tremendous burden for us. And a lot of things we have to report. We also have a limitation on how we can consolidate. Every other industry in the United States has consolidated over time, for efficiency. There's not enough push to keep people well. And to begin to decrease the burden of disease across the United States.
COSGROVE ON IF REPEALED
Cosgrove: It would throw our industry into chaos right now . We would lose a lot to of reimbursement which we currently have right now. Hospitals across the country, about a quarter of them are running in the red right now.
Quick: Even with the reimbursements.
Cosgrove: Even with the reimbursements. Each year it's come down. And I've been talking with several of the major hospitals here, each one of them has seen a decrease in their net this last year. We're down to about 2%.
Steve Schwarzman, CEO Blackstone Group:
SCHWARZMAN ON THE TRUMP ADMINISTRATION
The new administration is interested in fundamentally creating a better life for Americans. And that's how they won the election, with half of America that has not really shared in a lot of the improvements that have happened over the last 10 to 15 years. So they're looking at different ways to do that. And that'll drive them, you know, to looking at almost everything.
SCHWARZMAN ON CHANGE
I think if you don't like change, this will be an uncomfortable period. But growing at 1.8%, that was an uncomfortable period. The benefits for the American people, you know, have not been substantial at that growth rate.
SCHWARZMAN ON TRYING THINGS
We're going to be trying some new things, we as a country. Some will work. Some won't work as well. But the leaning forward, if you will, to experiment, to de-bottleneck, to change taxes, there are going to be a lot of things, most of which on a theoretical basis, most people would say are good things.
SCHWARZMAN ON ACTION
You're going to have a lot of action by definition. I think you'll have major rollbacks of whether it's executive orders or regulations, putting people in place who are going to do those type of things.
Ray Dalio, Bridgewater Associates Founder, President & CIO:
DALIO ON POPULISM
There's a phenomenon that exists that is called populism that we really don't know very well, that it existed in the 30s. That phenomenon partially is due to a wealth gap, but it's also partially due to the sense of inefficiency and make the place work on time for the common man. The values that are national values rather than global values, there are those elements that exist right now as an influence that is more important than central banking.
DALIO ON DEREGULATION
From deregulation, from creating the excitement and the can do, to create a home where the United States is a place where making money for wealth to create businesses and creating productivity. It starts to create an environment in which capital from the rest of the world starts to make a move over here.
DALIO ON THE U.S. BEING UNIQUE
Do I want to put my plants in China or do I want to put it within the United States. The calculation is very different. If you want to be in the U.S. market and you want a market in which you're going to have -- it's okay to make money, it's okay to make things happen, and it's a market in which there's also respect for property rights, rule of law. It makes the United States a very unique place. If you change the capital repatriations and you bring money back and you do some of these other things, these are stimulative things.
DALIO ON THE TRUMP ADMINISTRATION
I think the real question is what is a Trump administration? Is it going to be wise and thoughtful and well calculating? So when you have something like the border tax, is the border tax on? Is the border tax off? Is that going to be worked out intelligently? How will the 1.3 trillion that was supposed to be raised in the border tax and then pay for other taxes, where will that come through? So we're at the stage that we've made the initial reaction to that, but now how these people work together and actually operate.
DALIO ON NEEDING A REVOLUTION
We needed a revolution. I mean, in a sense, we need a reinvigoration and that kind of revolution. So there's an optimistic possibility that this can be. But the question is, Donald Trump is aggressive. Is he aggressive and wise and thoughtful and calculating, or is he aggressive and reckless? I think we're going to find out.
Dan Schulman, PayPal CEO:
SCHULMAN ON FINTECH
There are 2 billion people in the world that live outside the financial system and the things that we take for granted – paying a bill, cashing a check, sending money to a loved one – are incredibly time consuming for them. They wait in line sometimes for hours to make that transaction. And very expensive for them. And the promise of FinTech is that you can make those transactions much quicker and much less expensive.
SCHULMAN ON EMERGING CURRENCIES
I think you need to separate out, for instance, bitcoin from the underlying protocols that allow for the transfer of bitcoin. A lot of the crypto currencies right now aren't really currencies. They're really commodities. They're traded because they're not really – they bounce around so much, it's difficult to use it as a currency.
SCHULMAN ON CYBER SECURITY
The more data you have, the more sophisticated your algorithms can be. Because you can't just keep people out. It's not really about building, you know, higher turrets and deeper moats. People will get in because people's credentials have been compromised. It's then identifying behavior that's abnormal and then being able to look at algorithms and prevent money from leaving the system.
SCHULMAN ON VENMO
95% of Venmo users, and it's like the leading app of the gen tech generation, put a comment on it. They share it with their friends. I think one of the interesting things is there's a generational difference in public and private…the older you are, Joe, the more private you are. There's a fluidity between that public and private. And we really see that in Venmo.
Glenn Hutchins, North Island Chairman:
HUTCHINS ON PRICING
My concern right now is the markets are priced in everything this incoming administration wants to do as if it's already been done. Tax reform, regulatory lessening, the infrastructure spending. And there is a lot of difference of opinion within his administration about how to do some of these things. There's a lot of complexity associated with getting it done…those animal spirits can turn pretty quickly if they're not satisfied quickly.
HUTCHINS ON OBAMACARE
One of the accomplishments of the Obama administration has been covering 20 million-plus people who weren't covered by health care. Our health care system is very complicated. There might be a better solution to it. If we can find a better solution to it, I'm very, very supportive of that. But if that involves taking health care away from all those people who are not advantaged by all the benefits that we're getting from the markets right now, that would be very troubling.
HUTCHINS ON TAXES
If you cut taxes for the wealthy and don't spread that across the economy in some constructive way, then you've tilted the economic system for people who have already benefitted enormously by this massive run-up in the markets since 2009. So I think the philosophy of trying to stimulate the economy with a more Republican, conservative kind of point of view, cyclically it's time to maybe go back to some of that. That's just fine. But being careful about its externalities is the important piece.
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