hi everybody, welcome to "the wall street journal report." i'm maria bartiromo. jobs, central banks, market madness and computer glitches. july ending with a whimper, august starts with a bang, what is next and why. a harvest of pain in the midwest. how and why one of the worst crops in 50 years will hit you in the wallet. and all that glitters is goldie, goldie hawn's new role. it's not stage, it's not screen, and why she's loving it. . "the wall street journal report" begins right now. this is america's number one financial news program. "the wall street journal report." now, maria bartiromo. here is a look at what is making news as we head into a new week on wall street, a hopeful sign for the u.s.

economy. the july employment report shows that the economy created 163,000 jobs last month, much better than expectations. the unemployment rate, though, did increase to 8.3%. still, it was the most jobs created since february. it was a busy week for federal banks, the federal reserve ended the week with no action, but a slightly revised statement, giving a strong statement should the economy weaken from here. the bank left interest rates unchanged and its president, mario draghi, did not follow up on his tough talk last week about refuse to go allow the euro to fail without any action. and all that in the middle of four-day losing streak. but the markets rebounded strongly on friday and made it back another blow to investor confidence as the u.s. markets were thrown into turmoil on wednesday. a computer glitch, which caused repeated buying and selling and wild price swings of a dozen

stocks for about 45 minutes at the opening of trading. it is estimated it will cost knight $440 million, the stock plummeted and it's looking for suitors. auto sales are slowing down. numbers for july show gm down 6% compared to a year earlier, worse than expectations. chrysler was up 13%. ford down 4%, and toyota up 26%. so what did the fed mean by the statement, and what may be next? who better to help to explain it all than randy kroszner, a former federal reserve governor and professor at the university of chicago booth school of business. randy, good to have you on the program. thanks so much for joining us. >> great to be back. >> so we'll get to the fed in a moment, but america's economy adding 163,000 jobs for the month, better than what economists were looking for. were you surprised? where are we in terms of the economy. >> well, it is a little better than expected, not that much different than average for the

year, about 150,000 jobs averaged per month, for the year, barely enough to keep the unemployment numbers stable. that is why it is bouncing around 8.2%, 8.3%. i think we're kind of stuck in a sideways slide right now. >> what is it going to take to get the jobs market moving again, do you think? >> i think there's a lot of uncertainty looming over consumers's decisions to buy, and the investment decisions. that comes along with the fiscal side and as well as in europe, still a lot of uncertainty there. and the fed, it has been accommodating. the interest rates are unchanged, no new bond buying programs, but hinting at action needed to boost the economy. i was a little struck by this, because chairman bernanke leaked to "the wall street journal" that, you know, new action, new stimulus could come this week or in september. is there anything new here? what do you think this new meeting tells us?

>> well, if you look at the new words it didn't have that much meaning. in the last statement they said they would be prepared to act if things didn't get better. and now they say they will act to provide more accommodation if they don't see a stronger recovery. and i think that is an important change because now they're saying unless things look a lot better, we're much more likely to act. >> so what is the action? the interest rates are zero, so what is the action? is it bond buying? >> it may be more purchases of assets, i think they would be more likely to buy the mortgage backed securities to try to directly impact the rates that people are paying on their mortgages rather than government securities. but i think there are a lot of different actions on the table. >> and meanwhile, a lot globally, the european banks leaving things unchanged. and mario draghi bringing down the spanish and italian bond rates, once again did nothing. is this a case of all talk, no action? >> you know, i sometimes think

the old 1960's musical "promises, promises," and this seemed a little bit more of that. there is a structure that says if they take action, they will then provide support. but i think we kind of knew that already. the key is, will the politicians take the action? and so far we have not seen a lot of action. >> you know, i guess one of the big issues for europe is that the ten-year bond in spain rises above 7%, making it that much more difficult for spain to pay its bills, to finance its debt, is there really anything the ecb can do? isn't this market related? the markets push yields up. >> that is why they have to do it in connection with the fiscal authorities and the politicians. because they have to say okay, fine, we're going to get at the fundamentals. we're going to re-capitalize the banks, much like we did in the u.s. with the t.a.r.p. program. so recapitalize them, much with the support that brought down the risk spread. it has to be the combination of the work in europe.

mario draghi has said we'll play ball if the others act, but they have to act first, and i haven't seen a sign that they're acting. >> right, they're not acting, and the bundus bank is pushing back on any new stimulus. >> sure. meanwhile, we've seen encouraging housing news. have we bottomed? seen the worst? >> well, it varies sometimes with the washington, d.c., market, which some joke is now the financial capital of the world. that has stayed pretty good, even during the depths of the downturn. but other markets have faced a lot of challenges, in many of the markets, like chicago and elsewhere, we're seeing upward trend, at least a stabilization. but unfortunately, there are areas like detroit and cleveland that face a lot of challenges. >> what about the blows we have been seeing recently to the confidence in america's market? confidence on the part of investors is way down.

this week we had a huge story that the computer glitch at knight trading caused massive trades on wednesday, the firm now possibly looking to be acquired, struggling to come up with cash. what do you think can be done to restore confidence on the part of the individual? do we need actually human beings to conduct trades and get away from this electronic trading? >> we have to remember that human beings were not flawless. in the days before we had the automated trading be so important. so it is not as if getting rid of the robots gives us perfection. there will be flaws in either system. i think the key is good backups, so if there is a problem in trading somebody else can step in and allow the trades to occur. certainly there was a disruption that occurred in a very short period of time, but overall it didn't roil the markets more generally. that's the key, if it is going to be a problem it will be a short-lived problem that is contained. and i think just like in the

military, we need to have that in the markets and need to have people confident that that redundancy is there. >> and that is like oversite from the ftc, right? >> some of it is over sight, but some of the markets themselves that they have somebody to step in if something goes wrong. >> randy, thank you so much. >> good to be here. >> up next, the biggest drought in half a century. what it means to the u.s. economy and your grocery bill. secretary of agriculture tom vilsack will join me. and later actress goldie hawn joins me to discuss the film business and the work close to her heart and far from audiences as we take a look at how the stock market ended the week. it's nearly impossible. and train by myself, tm behind team usa stands another team. family... i lead the cheering section for tatyana. friends... i push her, i push her a lot.

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welcome back. dry, hot summer weather has caused devastating growing conditions across the united states leading to the worst food drought in more than 50 years. secretary of agriculture tom vilsack is joining us now from ohio state fair. mr. secretary, thank you for joining us. >> you bet. >> so more than half of all u.s. counties have been declared disaster zones due to the drought conditions. you add in more than 200 counties to that list just this week. characterize this for us. how bad is it? >> well, maria, it is probably the worst that we've seen since 1948, in the lower belt, obviously having an impact on crops, 37% of beans, 48% of corn and 57% of our range and pasture land rated poor to very poor. so obviously this is a very stressful time in rural america.

>> which is why we're seeing prices for these products move higher. the corn and the soybean crops are the worst in decades and the u.s. supplies most of the world's corn. so what is the u.s. doing? what more can be done to ease things for u.s. farm eers? >> well, in 1948, when we had the worst drought, most of them have crop inn shurns insurance. so that'sed good news. the more difficult aspect of this is the livestock farmers who don't have that. what we're trying to do is focus on trying to provide help to the livestock producers opening up grazing areas under conservation areas, millions they can now use and if they can harvest, develop, barter or exchange. we hope that we're lowering interest rates on emergency loans. we're streamlining. disaster declaration process. we're working with crop insurance companies to make sure farmers don't have to pay interest on unpaid premiums for

a period of time. and we're working on our conservation programs to provide plexability. but our tools, frankly, are very limited. that's why we need the house of representatives to pass a farm bill which would include disaster assistance particularly for livestock and especially crop producers. >> and i know last week the usda raised expectations for food price inflation so down the line what's the consumer impact here? will there be higher costs at the grocery store? on what shelves, would you say? >> well, here is the interesting thing about this. we might see lower prices in the short term as we liquidate herds. we might see meat and poultry prices go lower for a period of time and then expect to see them go higher the last part of the year. farmers only get 14 cents of each food dollar. it shouldn't have that much of an impact on food prices. what impacts food prices more are energy prices. if oil goes up you'll see greater spikes in food. >> and yet the price of corn right now up 50% just since june, meat and poultry producers

who use corn for animal feed are asking the epa to relax ethanol production mapdates. even the ceo of cargil said using food for fuel should be reconsidered. should we mandate the use of biofuels when there is a drought? >> well, first of all it's important to note that tremendous production difficulty and the dwans that have taken place. i'm here at the ohio state fair. i saw an exhibit that we produced 2 billion bushels of corn even in a drought year. the expectations is 11 billion, 12 bushels of corn. tremendous productivity. it's a little premature to be talking about this. we don't know what the crop is going to be. we don't know what the yield are going to be. technology, soil types, where it rained, when it rained, all have an impact on what the yield are likely to be. secondly there's can currently a surplus of ethanol. they have the kred toits allow them to replace corn with these credits. we're seeing exports down just a

bit. we're seeing livestock feed down a bit. ethanol feed is down. i think we have to take into consideration all of these factors before we jump to a conclusion this renewable food standard is for farmers across the country in terms of income, job growth and helping consumers with lower gas prices, so we have to be careful about when and how we do things. >> let me ask you about that farm bill you just mentioned a moment ago. congress began its august recess this week without considerable movement on that farm bill which, of course, is soon to expire. so many disparate interests in the legislation. do you have hope any package will offer long-term reimportantly for payments and could still consider disaster preparedness and conservation? >> i do, maria. the best sign i saw before congress left for its recess was summer school for congress, no recess until certain legislation is done. i would include the farm bill in that effort. they've taken a five-week

recess, and i think they're going to hear from folks back home that they need to get this work done. why do they need to get it done? it promotes trade. it increases research opportunities and supports local and regional food systems. it's vital and important that it get done. if it doesn't get done before september 30th, the risk is it then gets tied into the tax cut and tax policy discussion and may end up with agriculture doing more than its fair share for deficit reduction. >> that's a great point. mr. secretary, good to have you on the program. thanks so much. >> thank you. >> thank you, secretary tom vilsack. up next on "the wall street journal report," academy award winner goldie hawn is known for films like "private benjamin" and "the first wives club. "is she playing a new role now away from hollywood? you bet. >> it's going to be a big revolution in how we deal with our children. i love what i'm doing. in here, every powerful collaboration

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academy-award winning actress goldie hawn's primary audience has shifted from moviegoers to children. she has linked the word from scientists to behavior ex perts to develop classroom experts in social and reading literacy. when we interviewed her, goldie says she found the role of her life time. >> i started to see things, symptoms in our society that were very, very painful.

and instead of giving into certain things, i thought what can i do to bring more joy and stability to children? and that is how this was created. through giving children some tools, if you will, to understanding that, yes, they can choose happiness, and yes they can manage their emotions. yes, they are in the driver's seat. >> also, there's all this noise on computers, online, information coming at them. so you have written a lot about ten mindful minutes. tell me about the book. you say if a parent or educator just has ten minutes with a child to focus on behindfulness. this is really a critical game changer. >> yes, if you do that each day, what happens in the program, we teach children about the brains. and they learn that when they get quiet and focus and breathe and relax, which we do three times a day in the classroom, that it actually changes their biology, their neurobiology,

and the brain actually gets in tune to that. my book was written for parents and teachers. and everybody wants to know how to manage their children better. well, the book is how we create less stress in our lives, how to manage our lives better. in order to our lives and our insides, our inner world, we won't be able to tend to our children. it sort of works that way. >> the curriculum that you developed is published by scholastic. tell me about your hopes for outcomes. >> outcomes are for children actually to create a sense of emotional stability. also, for them to be able to get through school in a way, to have a more optimistic experience. to be able to know when they're stressed. to become able to self-recognize. because that will ultimately help their health care throughout their lifetime. also it will help to reduce

anger. i think leaders and building new leadership with these types of tools is vitally important. so if i were to look at my dream, my outcome, is that we would be socially, emotionally, intelligent nation with leaders who can actually get along. >> what have you learned in terms of negotiating the demands of running a nonprofit? you must be dealing with a whole different set of constituents and groups, as opposed to your acting career? >> well, basically it is business building. a foundation, you go out and do the best that you can for parents or children, or for care givers. moving into hospital settings now. it is a big business. a lot to run. it can be overwhelming sometimes. i mean this book "ten mindful minutes" went to the bestseller list. i was just shocked. because i thought it would just appeal to a sort of constituency. in fact, everybody wants to know how we can slow down, manage ourselves and not be so angry.

the book just did this. the same thing with the curriculum. now we're looking at teachers saying, this is what we need to do. this is how we need to manage 0 our kids. us as an organization, it is like trying to juggle eight different things, a huge shift. >> this is so important, goldie. i am so happy you wrote this book. let me switch gears, a few years ago you said you attributed your successful career to the fact you focus on what you want to focus on. you said you don't have to do a movie every year, i want to live my life the way i want. it has been a few years since you made a film. do you miss it? what are you looking at now? >> do i miss film making? i have to tell you the truth, no. one of the things, i always thought we get to a certain age, we should change what we do. look at life. what are our passions, right? so that is what happened here.

these are ten years of the most incredible, joyful, stimulating time of my life. but i am going back to work. >> i know you were approached to do broadway. >> numerous times. >> so is that in the cards? >> it could be. >> at some point. >> it could be. i mean, i trained as a singer and a dancer. and it is just crazy i didn't really use that in my career. but i have to tell you, working with children and the foundations and where we are today and the need that is so great, it is going to be a big revolution in how we deal with our children. i love what i'm doing. >> the book is terrific, thank you for joining us, goldie. good to see you, goldie hawn. up next on "the wall street journal report." we'll take a look at the news this upcoming week that will impact your money. and good for stocks, why the old boy's club is just out dated and bad for business. it was so legendary, that holwowood made a movie about it. ahhhhhhh!!! twice the stain fighting power as the next leining liquid value brand. era, the only detergent that's chuck norris approved.

for more on our show and guests, check out our website, wsj wsjr.cnbc.com. i hope you'll follow me on twitter. now a look at the stories coming up ahead that may move the market and impact your earnings this week. we get information on macy's kohl's and jcpenney. and on tuesday, chairman ben bernanke will hold a town hall meeting with educators from across the country. and we'll find out on thursday about the exporting and importing of goods. and finally today, it is hardly breaking news that women are good for business.

credit suisse and think progress releasing a study on gender diversity at corporate boards, of more than 2,000 markets with capitalizations, those with at least $10 billion, those with women onboard outdid their peers. not a surprise to those of us in the know. that will do it for us today, thank you so much for joining us. next week, my guest, former democratic national committee chairman howard dean. join us for him. each week keep it right here where wall street meets main street. have a great week. i'll see you next weekend.

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