hi, everyone, welcome to "the wall street journal report." i'm maria bartiromo reporting from the clinton global initiative in new york city. i'll be talking with president clinton about the economy, empowering women, and president obama. >> running against himself and people's misery. >> my conversation with another world leader, the prime minister of our neighbor to the north. why canada is a bright spot in the world che and what they're doing ght. > innovion in america. why silicon valley 2.0 might find a new home on the east coast and where the latest technological breakthroughs mighcome from. >> this is america's number one

financial news program. "the wall street journal report." now, maria bartiromo. >> all that coming up in a moment. first, let's get to tyler mathisen with some of the headlines of the week. here's a look at what's making news as we head into a new week. the federal reserve is doing what it can to boost the economy. in an unusual move known as the twist. the fed is rejiggering its portfolio of bonds, increasing its share of long-term treasuries by $400 billion in an effort to drive down long-term interest rates. in a statement after its meeting this past week, the fed also added the rase "significant downside risk" to its view of the economy. that spooked the markets and helped send the dow down more than 280 points on wednesday. and fears about the global economy pushed it down even more action by 390, on thursday. the markets rebounded on friday. the fed movesnd worries about eupe also sent the volatility

index skyrocketing. that's a sure sign of investor nervousness. the dollar soared to a seven-money high. the u.s. currency viewed as a safer haven especially compared with the euro. some impornt earnings news. fed ex, an economic bellwether, beat expectations but lowered its outlook for the rest of the year. the tech giant oracle beat estimates as well. one bright spot, existing home sales for august rose more than expected, up more than 7%. falling prices on home mortgage rates are pulling more buyers back into the market. back to maria. the themes of this this year's clinton global initiative include jobs, sustainability, and economic empowerment for women. ? my conversation with the president weouched on those topics and a lot more including politics, whether president obama will be re-elected, and if his jobs creation plan wil work. >> if you had a 50% reduction in payroll taxes for 160 million workers, that would put a lot

more money in people's pockets and increase their security. it's worth about $1,500 a family. then if you had that reduction in employer payroll taxes, and in some cases outright forgeness, up to $50 million for payroll in pay increases for employees, i think that will help. then they want to invest $50 billion over the next several years. in construction projects, infrastructure projects, roads, bridges and things that are ready right now. and start an infrastcture bank. mark zandy, who was an adviser to senator mccain in his presidential campaign against president obama, estimates that that will add between 1.3% and 2% to our gdp, between 1 million and 2 million jobs. that's pretty much where the economists are. >> and the payroll cuts that you mentioned have been talked about as much as millionaire taxes have been talked about, the

buffett rule. cut the deficit, cut spending, ultimately kill jobs -- >> don't confuse the two things. these payroll tax cuts and these incentives now, these what are we should focus on the next couple of years. what the president did, as i understand it, is to say, if you want to start in 2013, for example, and see where my $3 trillion in deficit reduction are, this is where i would do it. because you remember they were saying before, when we were talking about raising the debt ceiling, he said, well, i talked about $3 trillion, and then the republicans said, but where is it, where are the details, we want to see what your plan is. so i think he's just offering them what he would do in a comprehensive attempt to bring down the debt. >> so the question is, is the tax on millionaires going to impact growth negatively? is now the time to raise taxes? >> well, i don't -- my understanding is he's not

proposing having effect until 2013. that is the least harmful of all the taxes. we need to broaden the base of the corporate tax and lower the rates. our corporate tax rate is now the second-highest in the world after japan. >> can the president get re-elected with 9.1% unemployment? >> sure, but it depends on whether people believe that we've turned the corner, that he's not a plan that will work, andepends on what the competition says. i mean, right now he's out there running against himlf and people's misery. that's a terrible position to be in. ask me, don't worry about it one way or the other, put people back to work, get caught trying to put people back to work. >> do u believe the health care legislation should be repealed? >> no. i think it's already been -- i think it should be improved on a continuous basis. one of the things that's already happened on a bipartisan basis

is that they have gotten rid of some of the more onerous small business reporting requirements. the real reason that they want to repeal it is not that it's 1,000 pages long. it's that it's got one line in it that says, 85% of your health insurance premium must now go to yo health scarcare. not in profits and marting. in connecticut, aetna's already filed to reduce its health insurance premiums 10%. so the cost of medicare advantage is going down 4% this year. this is after tripling health insurance costs for a decade. the cost of medicare advantage is going down 4% this year. and there are a record number of companies participating to provide the services. so ty're still making pley of money. and the cost of prescription drugs for the government are planned to be level. so these things are helping not just the government's budget, this helps all health care.

the united states spends 17.6% of its ince on health care. no one else is even at 12%. they all insure everybody. and they have better outcomes than we do. so i think it would be a huge mistake to repeal this. i think that there will be continuing opportunies to improve it, but the net effect of this is going to be over the next five to ten years, is to bring our costs closer to the costs of our competitors. which is great for us economically. and that will make the debt much smaller than everybody thinks it's going to be now. >> you've done something very aggressive, put women and girls front and center. and you've got big money players coming here where the culture's very different. about women and girls. what do you hear from them? >> one of the most important things that's happening in the middle east today underneath the radar screen is a big women's movement. take saudi arabia, the most conservative of the cultures. for sevel years, tre have been more women than men in institutions of higher education.

king abdullah himself built a university and named it after himself outside the major cities where women and men go to class together and the women are not subject to the same dress restrictions they are in many other parts of the country and don't get beat fun they're walking down the street talking to men. it's a very different thing. and i think what they're looking for is how to -- they've gotten this far, now what they need to do is open the workplace. >> myhanks to president bill clinton. up next on "the wall street journal report," one of the bright spots of the global economy lies just to the north. my discussion with canadian prime minister steven harper on job creation north of the border. can one of amera's best-known universities expand its brand? will stanford, cradle of the tech industry, take the show on the read? > take a look ahow the stock market ended the week.

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call or click today. > welcome back. from the clinton global initiative, where leaders in business, culture and politics are gathering to talk about the scenes of the international world. operation, the health of our interconnected global economy, and the global slow-down. joining me is the prime minister of canada, prime minister stephen harper. mr. prime minister, thanks for joining us. >> thanks for having me. >> let's first talk about what you're seeing in the world, sitting in new york with american lders thisweek. six ceos as well as execuves from the n york stock exchange and goldman sachs encouraging investment in canada, also looking at the global story. give me your assessment of the global stage and the economy. first of all, in terms of canada's role, we have continued and continue in forasts to be

outperforming kind of the average or the pack in the industrialized world. but we're obviously concerned about projections of slowing growth and we see thoserisks in the global econo. that remains our concn. i remain convinced that if we as leaders make the right decisions, we can continue to keep the economy growing and avoid recession. at this point, if we were to fall into recession, it would be strictly frankly through an accumulation olack of coidence in tkling some o the big issues that are before us. i want to work with my fellow g-20 leaders to make sure we tackle those issues and keep moving forward. >> the international monetary fund, you're considered the bright spot alongwith germany, but even now, some rumblings about germany getting impacted. so what's your take in terms of avoiding growth coming down just as a result of the rest of the world? well, you know, i always say

to canadians, i think canadians are realistic about this. we can't expect to be on a completely different track than the rest of the world. if the global economy slows, the cadian economy is going to slow. what we can do is make sure we at least do better than the average and that we make some investments for the long-term. >> what do you think is most important in terms of creating jobs? how does a economyreate jobs? >> well, look. in canada, we try and create jobs by having, you know, a strong environment for business. by having good regulations. certainly, regulatory certainty around those things. by having a government sector that is stable. you know, where we basically embrace balanced budgets. where we do that by tryin to keep our tax rates low. as you kn, we've been lowering business and otherax rates for me years in canada. the big challenge is our export

market. that's where the global situation affected us. that's where the global slow-down is affecting us again. there are trillions of dollars sitting on the sideline througho the western world. we've got to find ways in oer economies to restore confidence and get that money back into the economy. >> you know, i wan to talk about exports. canada, the biggest foreign supplier of oil to t united states -- >> i'm glad you know that. most americans don't know that. >> this is very imrtant. we're talking about what saudi arabia oes, but canada's providing twice what saudi arabia is providing to the united states. tell me about the interconnectedne oour two economies when it comes to energy. >> in most sectors we are the two most integrated economies in the world. you ask me specifically about energy. i think what americans need to understand about the energy relationship with canada is not simply that we're integrated and we're america's biggest energy supplier, but we are the only country in the world that is a growing supplier of energy, that

is a secure and democratic country, and that's energy sector is based on market principles, rather than strategic objectives. and so we're not only the biggest partner of the united states, we are far and away the most secure partner of the united states and the friendliest partner of the united states. >> as your fortunes rise there's an economic rivalry between the two countries on one level, because people don't necessarily understand how important the relationship is. >> well, between canada and the united states, i mean, we and canada never see it as a rivalry. you know, we obviously have great pride in our own country and our differees with the united states. but beyond all else, wehink we're extremely fortunate to have the united states as our friend and neighbor. it's one of the things -- one of the great assets our country has. and, you know, we beeve that as -- the threats, i've said this before, security threats to the united states are security

threats to canada. economic opportunities for the united states are economic opportunities for canada. while of course individual businesses may have rivalries and there may be issues on which we disagree, first and foremost we try to work with our friends the united states, and my government tries to work with the obama administration. not just on bilateral issues and shared concerns but also ways we think we can be helpful to american leadership in the world. american leadership is so essential to this world on every level. strategic, military, economic as well. >> good to have you on the program. prime minister stephen harper joining us. next on "the wall street journal report," can silicon vaey move ea all this way to new york? exploring the link between education and innovation. and looking for the next big we spend a lot of time together.

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put their kids through college. retire how they want to. ameriprise. the strength of america's largest financial planning company. the heart of 10,000 advisors working with you, one-to-one. together, for your future. ♪ jobs and job creation, a major focus at this year's clinton global initiative in new york. can one of america's greatest universitys reinvent the jobs market in our country's largest city? stanford is the technology titan in silicon valley. now the west coast school wants to be live from new york. joining me is john henessey, president of stanford university. good to have you othe program. >> glad to be here. >> thanks for joini us. you aring in new york in support of stanford's proposal to build an engineering school in new york city, specifically on roosevelt island on the east

river. why new york? >> we think new york is the place where we can attract great talent, great faculty, great students. in the end, creating an innovation center, innovation hub, is about getting great people. i think new yo is the place they want to come. they come to silicon valley for ceain things but new york has its own set of attractions. >> there aren't many jobs in science, engineering in new york. wi jobs followfan institution like yours comes to new york and is built? do you think the money and jobs come next? >> i think they go together hand in hand. you look at theistory of stanford. it was ted tournin who got hewlett and packard together and told hem to start a company because students wanted to stay inalifornia but there were no jo. he created that as a way to build the economy and it worked. you can create that excitement, vibran vibrance. bringing in young people, young

brains, those people who don't realize they can't start the next yahooor google and getting them to do it. >> why is this so critical now? we were in russia earlier this year. a number of technology comnies trying to -- the government would le to have a silicon valley right outside of moscow rather what is all of a sudden attracting the rusans, the chinese, you want to come to new york? why now? >> well, i think lots of people have understood theonnection between a research university, especially one whn entrepreneurial bent, and economic growth and generational jobs and new companies. that's well-understood now. everybody wants to come to stanford and learn how they built silicon valley in five years. it's going to take anydy mor th five years. my view is if we don't create another vibrant innovation center in the u.s., it's going to happen outside the u.s. that will be a loss of jobs, opportunity, leadership, a

critical sector tt's critical not only for what it does in core i.t. but srs that lower reserve overlap. health care, finance, other sectors dependent on i.t. advances. >> money will go wheret's treated best, rht? what can governmentpolicy dozen toncourage this? why wouldn't apany set up shopoverseas? i think one of the big issues the administration's worried about,ot only aren'those companies bringing all the money they're making overseas back to the u.s. because they don't want to get taxed on it, they're setting up r&d facilities outside the u.s. a sending their best people there to go manage them, a brain drain as well. >> we need to get that money back in the country, and probably long-term tax reform is the way to do it so investment is made in this country and not abroad, don't give companies a reason to invest abroad. reform is the key issue. we want to bring these people here, keep the best and brightest in this country an keep them contributing. stanford, former students

include larry paige, the founders of hewlett-packard, of course. what should we beoing now to enhance education, to continue thatind of innovation? >> i think there are two this we really need to wry about. the k-12 level we need to worry about preparing students and preparing more of our students to be in science, mathematics, those disciplines. we're not generating enough young people in those disciplines. there are lots of great jobs there. at the higher education level we have to do a betr job of preparing people for careers. if they want to be entrepreneurs why don't we teach them something about what we know abouttrepreneurshipwhat makes it work, so their odds of suesare higher. >> how are students doing these days? what are you hearing as they seek to get jobs after graduation in this tough environment? i think better this year than last year. lots of students who are not in science and technology are doing internships. i think they're finding better opportunities than a year go. long-term they've gotchallenges ahead but we're trying to educate them so they realize

going forward young people are going to have more than one job, maybe more than oneareer in their lifetime, they need to rethink how constant learning, how do they move forward. up next on "the wall street journal report," take a look at thnews this upcoming week that will have an impact on your money. how the beatles became the beatles. they got by with a little help on their friends. you can own a piece of that history. it way to reward you? airline go out of it should. because loyalty is a two way street. and when one side gives, the other hato give back. dedicateredcoat customer service. more first class upgrades. milethat don't expire. this isn't benevolence this iour busine. the next time an airline asks for yours: ask them first, what they've done to deserve it. today i own 165 wendy's restaurants. and i get my financing from ge capital. but i also get stuff that goes way beyond banking.

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wsjr.cnbc.com. follow me on twitter. look for @mariaboard romo. now a look at the sties coming up in the week ahead that may move t markets and impact your money. monday the ation's realtors report the number of new homes sold in the month ofaugust. tuesday, we get the case show home price imdetection. it tras the housing market in 20 cities across the country. thursday, the government releases the final revision of second-quarter gross domestic product. currently showing a growth rate less than 1%. friday, the latest figures on u.s. personal income and spending will be released. finally, music lovers have something to say about this weekend. how you can own a piece of musical legends. >> one of the finest auctions tracing the history of rock 'n' roll is taking place this weekend here in new york city, containing more than 1,000 lots. six original paintgs by jimi hendrix. elvis' very first guitar.

held togethe barely by old masking tape. the astrid kercher beatles collection consisting of nearly 1,000 photographs, negatives, and their copyrights taken by astrid kercher. started photographing them at a time when they were just a backup band. you can see what she saw. >> that's the show for today. next week my guest, "new york times" foreign affairs columnist tom friedman. where wall street meets main street. have a great week, everybody, i'll see you next week ♪ ♪ mm-mmm-mmm-mm-mm-mmm ♪ mm-mmm-mmm-mm-mm-mmm ♪ ♪ mm-mmm-mmm-mm-mm-mmm ♪ mm-mmm-mmm-mm-mm-mmm ♪

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