♪ money, money, money, money, money, money, money ♪ ♪ money, money, money, money, hi, everybody. i'm maria bartiromo. another blow to investor confidence, why google is searching for answers after a big mistake. who they are blaming an the impact on the markets. my conference with one of the most important and powerful women in the world of finance and the warning for the united states. brewing up profits the ceo who can fix with ales, starts up companies and raising a glad and lending a hand. >> didn't get enough matt damon last week? neither did we. "the wall street journal report" starts right now. now, maria bartiromo. >> here's a look at what's making news as we head into a new week. another blow to investor

confidence, a big blunder in the release of google's earnings on thursday. they came out hours before they were scheduled to be released. the company said it was due to a mistake by the financial printer r.r. donnelley which in turn blamed humor error. the earnings weren't even good. they missed on revenue and profit and the stock plummeted. the company announcing the sudden departure of pandit, he was reto be repoliced by michael corps bit, a citigroup insider. i spoke to mr. pandit soon after his resignation and said it was my decision and it was time and after five years i accomplished what i set out to do. after other signs of a technology slowdown and continued down on friday. intel beat expectations and offered beat guidance, ibm met expectations but missed on revenue and microsoft missed

expectations. citi and goldman and morgan stanley came in ahead and bank of america did as well though its revenues fell short. it's an busy and important time for your portfolio and the economy for sure. here's ken rogoff, professor of economics at harvard. wonderful to have you back on the program, welcome. >> thank you, maria. >> tell us broadly what impact you think either candidate would have on the economy and you're not affiliated or advising either campaign, yes? >> i'm not. i mean, if they got their vision put in place, then i think they very different. my best guess is that congress will resist whichever candidate becomes president and will sort of continue to muddle along. but, i think broadly president obama puts much more emphasis on reducing unequality and governor

romney puts more emphasis on growth. they tell you we want everything and governor romney might say something about inequality, but broadly speaking that implies probably somewhat forward growth under president obama, maybe not for middle income americans and faster growth under romney. although, of course, we don't know exactly romney's plan but i think what he has in mind is a big tax cut, reagan/bush like, hopefully improving the tax system. i don't know if he could really believe that that would balance the budget or be neutral right away. but i think he believes he can much improve growth and over the long run things would balance out. and president obama says that we're well into this housing is picking up, and things are gradually healing. if you're patient, things will be a lot better under me too. >> what about the fiscal cliff.

we're obviously going off the fiscal cliff at the end of the year when the tax cuts expire and we'll see a huge tax increase for 90% of the country, all income levels, then you're going to see spending programs get cut as well. that may very well lead to layoffs. are you expecting that to lead to a recession in 2013? >> no, no, i clearly we're not going to go off a fiscal cliff. but i do think the fiscal cliff is significant. i don't think necessarily resolve it early on. it represents a breakdown of civility in some ways in the way that budgets are passed, a break from tradition, even if they get by this, i worry about what the breakdown of tradition will do in the future. but hopefully we won't commit economic suicide by putting in all of that tightening so quickly. i certainly care about the budget deficit but that's not the way to do business. i'd like to see something like

simpson-bowles getting rid of a lot of reductions and keeping rates low and trying to cut spending. both candidates express support for that. romney said he had a better plan of his own but expressed support. i wonder if when push comes to shove we'll see something like that. if we did, then we could have our cake and eat it too. we could have more revenue without hurting growth. >> let me get your take on the debates. during the last presidential debate, a question came up about the increase in gasoline prices over the last four years. you say both candidates answered that wrong? >> i mean, i first want to say i felt i was watching pay per view boxing. the physicality of the debate, the almost unintentional coordination of the way they walk up to the stage and walk up to candy crowley. >> that was scary. >> i've never seen anything like it frankly. >> but on the substance, what

you're asking, i mean clearly the president does not control the price of gasoline. and president obama started giving actually good answer to that, it was $1.86 we were in a big recession, we'll get it back if you get us another big recession. but he quickly retreated from that because it was too academic an answer and just decided to say, you know, i'll get it down too. >> let me turn to earnings. we're hitting the thick of earnings season and so far there's az slowdown in technology. that's a big headline, microsoft, ibm google. what does that tell you? are things slowing down in tech? >> i think they are slowing down in the global economy, very strong signals of that. you can say it's moderated a bit in china, europe is not falling off a cliff. the u.s. is doing a little better but all in all the global economy has slowed down and that's a reflection of that.

i must say there are people in the tech industry who say it's also that we're sort of running out of ideas, that the silicon valley 2.0 is a bit playing out and we're waiting for another wave of new ideas, we're not seeing it. it may be some mix of those things, maturing industries. i know that's funny to say about things that are only five years old but in that business maybe it's true and slowing economy. i'm not super negative that we're going to just go into a recession unless we do something on the fiscal cliff. but i do believe that with a big overhang of public debt external debt, china, we're not going to grow like gangbusters and not going to see several years of great earnings growth. this moderation is very consistent with what i would expect in this point in the recovery. >> all right, we'll leave it there. great to talk with you, thanks so much. >> thank you, maria. >> ken rogoff joining us. up next, a warning to the world

from a woman who runs the international monetary fund. what she says is going right and wrong when it comes to global growth. how sam adams grew from the founders kitchen to be the largest craft brewer and what else they are starting up. take a look at the stock market end of the week. a crash management system and the world's only tridion safety cell which can withstand over three and a half tons. small in size. big on safety. en we got married. i had three kids. and she became the full time mother of three. it was soccer, and ballet, and cheerleading, and baseball. those years were crazy. so, as we go into this next phase, you know, a big part of it for us is that

there isn't anything on the schedule.

[ male announcer ] the exceedingly nimble, ridiculously agile, tight turning, fun to drive 2013 smart. ♪ christine lagarde, one of the most powerful women in the world is managing director of the international monetary fund which works to improve the economies of countries around the world. i caught up with her in tokyo about economics and tax rates in france and austerity measures in

greece. >> the country be back on track, the country be able to reaccess market. if we put upon them obligations that they simply cannot deliver on because it's too hard and too much, the program is not going to be credible. so our position is that we would rather have a program that is difficult -- it's going to be so difficult that it is not credible. >> and unrealistic. i guess there's a balance to walk, growth and stimulus versus sauce terty. >> for the moment there is still tax consolidation to be had and struck toural reforms to integ great and a revenue to collect. that's what's on the agenda. >> you have complimented the efforts and central banks around the world providing stimulus. when is it too much? what is your opinion in terms of

all of this free money and stimulus coming from so many central banks around the world? can you keep doing that or do you need fiscal policy at some point to replace the monetary policy changes? >> i think one cannot replace the other and it works both ways. the monetary policy by the central banks will not replace fiscal policies decided by government and vice-versa. >> terms of france, what do you make of the latest policy there in terms of tax rates, up to 75% of the highest earners, is this appropriate? >> i'm going to disappoint you because i'm not going to take up questions on france for obvious reasons. >> because it's your country? >> correct. >> it does seem aggressive from a policy standpoint. do you think we could see that kind of tax rates in other countries? this is a real debate. i understand you don't want to criticize or comment on something going on in france,

but you have to be thinking about this. >> well, what we say is that deficit reductions come two ways, reduce the public spending or increase the revenue, meaning you increase the tax. our sense and our studies actually show that by reducing public spending, you generally reduce deficit in a more efficient way. >> these are the issues we're dealing with in the united states every day. what's your take on the fiscal cliff in the u.s.? you have been very vocal in terms of warning that this is -- has real implications. what is your take on where we are in the u.s. and fiscal cliff? >> the imf has been warning for quite a while about the uncertainty risk associated with the fiscal cliff and the debt ceiling, both of them. this uncertainty will increase as we get closer to year end and it is a concern.

it is a concern because investors, households, people who want to buy a house, make an investment, hire people, would like to know what the environment is going to be like and what the fiscal deficit momentum and process will be in 2013 and more importantly, going forward so that they appreciate exactly what environment they will be in and what tax rates will apply and what loopholes will survive or not. >> which is why increasingly we hear executives managers of businesses say they are going to sit on the money because they don't know what's to come. do you think after the u.s. election we'll have more clarity? when will things loosen up? >> as soon as possible would be desirable is all i can say. >> my thanks to christine lagarde. up next, the man behind sam a m adams brew, how one successful entrepreneur is trying to grow others. find us on facebook.com/mariabartiromo. back in a moment.

>> i never thought i would ever start my own business. that was sort of a challenge in figuring out the books and financials and insurance, know nothing in the beginning. the sam adams brewing, american brew program was super hopeful. $8,000 loan and it was at the point where our business was growing and we already put personal funds into it and point where we need to find something.

we were able to hire staff and able to rent our commercial kitchen space for more time that enabled more production and on a bigger scale. we're small but mighty. >> joining me now is the founder of one brand that went from small to mighty when it comes to the beer business. his name isn't sam adams, it's jim cook, chairman and founder of the boston beer company. >> nice to be here and we have beer. >> thank you for bringing the beer. >> let's pour some beer. you started brewing sam adams beer in your kitchen in 1984. tell me how that happened. how did you decide you wanted to brew your own beer in the kitchen? >> i've come from six generations of beer masters so beer was in my history and in my blood. .06, i was still legal and i knew how to home brew because i had done it with my dad. i had this idea of starting a

small brewery that would make high quality beer in the united states, not competing with the big mass produced breweries but making crafted beer small batches of beer and that was sam adams. >> tell me how you're supporting new entrepreneurs today? >> it's still a small business in a way. we live in this business with the bud and miller and coors of the world are giants. we're the most successful craft brewery but that means we're the tallest pigmy, we're 1%. we remain a small business. i wanted to reach out and help other small businesses as part of our community responsibility. and i watch businesses do things charitable things where you kind of write a check and the money just goes away. my feeling was, as a small business, who's very innovative, in we're going to doing something to help our community,

we want to do it in a leveraged way. we developed a program, sam adams brewing the american dream program and it has two components. advice to the small business needs, i have a harvard business degree i didn't know how to make up a payroll system or set up a sale s call or procure malt and hops for the best properties. i had to learn them and it would have been nice if i hadn't done it through trial and error. >> by brewing this american dream you impacted 1,000 jobs. what are you seeing as a small business owner? do you feel your expenses have gone up? is it tougher for you? small business is all we're talking about in terms of job

creators. >> that's exactly right. being a small business never gets easy, no matter where the economy is. there's always been and probably will always will be this funding gap. nobody wants to make loans under about $25,000. the small business administration, that's the smallest loan they'll make is $25,000. yet there are all of these businesses employ two or three people and can grow to employ six or eight or ten people and can't get money. >> american beer drinking in general -- >> haven't even touched it and you're slurring your words. >> american beer drinking is in decline but what does that mean for the consumption of craft? is that a different story? >> absolutely. what you're seeing is that people are going for quality rather than quantity. so at the same time they are drinking less beer overall, craft beer is growing double digits because people are just

getting educated palates and wanting to drink something with taste. >> pumpkin flavoring is popular right now with thanksgiving and halloween. you've got new flavors out? >> yes, one of the really cool things about being a craft brewer is the creativity that i can bring to the beer recipes. i'm almost like a chef. i can put all kinds of interesting ingredients. we make beers with pumpkins and cinnamon and cranberries and exotic spices like grains of paradise. the center of creativity has moved out of europe and now in the hands of small independent brewers like sam adams here in america. >> it's so rich. you can smell it. cheers, jim cook, thanks for joining us, appreciate it. >> very good. delicious. >> malty and creamy. >> malty and creamy. jim cook, founder of boston

beer. up next, we look at the news this upcoming week and then more of my recent conference with actor matt damon on new projects and new looks. >> i have good wigs. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again.

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and at&t and merck. governor romney and president obama set to discuss foreign policy of the on tuesday another apple announce the is expected. and on friday, we'll get the first reading of the third quarter gross domestic product. microsoft is releasing windows 8 expected to be a radical redesign of the operating system, that's this friday as well. last week we brought my conversation with matt damon and gary white, co-founders of water.org, making clean water accessible to the free world. here's what's new in damon's day job and how he's going behind the candleabra. >> i saw the librace clip. >> it went really well and it will came out in may on hbo.

>> you play his lover? >> yes, i've got to wear clothes i never have worn. i've done seven movies with steven and i'm enormously proud. >> he plays lee libberace's companion who filed a suit against the singer in 1982. >> did you have to have love scenes? >> oh, yeah. >> you look great in it. the shots i saw you look great. >> i had good wigs. >> sign this lease and that gives us the right to drill on your land. >> his next project, co-starring and co-writing turn on a film tackling the issue of fracking. >> it speaks to american identity, where are we now? when this incredibly, the stakes are so incredibly high. >> do you write a lot? >> i haven't sat down and written since goodwill hunting.

>> that was fabulous. >> we had a good time doing it and i didn't realize how much i missed it. >> the promised land opens this holiday season and behind the candle opera airs on hbo. i got a front row seat to one of the rare bipartisan moments, thursday's al smith dinner in new york. great to see them take a night off for the campaign event for this charity tradition in american politics. thanks for being with me. each week keep it here where wall street meets main street. i'll see you next weekend.