answers and the impact on the market. my conversation with one of the most important women in finance and the warning christine lagarde has for the united states. brewing up profits the ceo who can fix what ails startup companies and a program to raise a glad glass and lend a hand. didn't get enough matt damon last week? neither did we. the "wall street journal report" begins right now. >> this is america's number one financial news program, "wall street journal report." now maria bartiromo. here's a look at what is making news as we head to a new week on wall street. a big blunder many the release of google's earnings on thursday.

the earnings came out midday, hours before they were scheduled to be released. the company says it was due to a mistake by the financial printer r.r. donnelly, which in turn blamed human error. the earnings weren't good. google missed on revenue and profit and the stock plummeted. and citigroup announced the departure of vikram pandit after a clash with the board of directors he was to be replaced by michael corbat who with was a citigroup insider. i spoke to him soon after his rez ig nation and he told me quote this was my decision. it was time. after five years, i accomplished what i set out to do. they continued down on friday. key technology earnings intel beat expectations but offered weak guidance. ibm met expectations but missed on re knew and microsoft missed expectations. among financial, citi, and

goldman came in but revenues fell short. it is a busy important time for your portfolio and the economy. what impact will they have? joining me with answers is ken rogoff, the professor of economics at harvard. wonderful to have you on the program. >> thank you, maria. >> as we get closer to the election, tell us what impact you think either can at this time would have on the economy. i know you are not afill yatd or advising either campaign, yes? >> i'm not. i mean, if they got their vision put in place, then i think they are very different. i have to say my best guest is the congress will resist whichever candidate becomes president and will sort of continue to muddle along. you know, i think broadly president obama puts much more emphasis on reducing inequality and governor romney puts more

emphasis on growth. to tell you we want everything, reduce inequality and improve growth and governor romney may say something about inequality but it implies slower 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 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. president obama, you know, says while we are well in to this, housing's picking up and things are gradually healing and if you are patient things will be a lot better under me, too. >> what about the fiscal cliff? we are obviously going off the fiscal cliff at the end of the

year when the tax cuts expire. we will see a huge tax increase for 90% of the country. k, all income levels and the spending programs get cut, as well. that may 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 the fiscal cliff. i think the fiscal cliff is very significant. i don't think they will necessarily resolve it early on. it represents a breakdown of civility in some ways, in the way the budgets are passed, break from tradition, even if they get by this, i worry about what that breakdown in tradition will do in the future. hopefully, we won't commit economic suicide by actually putting in all of that tightening so quickly. i certainly care about the budget deficits, but, you know, that's not the way to do business. i'd like to see something like simpson bowls getting rid of a lot of deductions, keeping rates

low, trying to cut some spending. both candidates express support for that. romney said he had a better plan of his own, but he expressed support. i wonder if push comes to shove we will see something like that. if we did, 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. we have another debate on monday night. during the last presidential debate a discussion of the increase in gas line over the last four years. you say both answered that wrong. >> yeah. i felt like 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 crawley. >> that was scary. >> i've never seen anything like it, quite frankly. but on the substance, what you are ask canning, i mean clearly the president does not control

the price of gasoline. president obama started giving actually good answer to that saying, you know, it is 1.86 because we were in a big recession. we will get it back to 1. 86 if you get us another big recession. i think he quickly retreated from that because it was too academic of an answer and decide say i will get it down, too. >> let me turn to earnings, ken. we are hitting the thick of earnings and so far we have seen a slow down in technology. that's he 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. there are strong signals of that. you can say it moderated a bit in china. europe's not falling off a cliff. the u.s. is doing a little better. but all in all the global economy has slowed down. that's a reflection of that. i must say there are people in the tech industry who say it is

also that we are sort of running out of ideas that the silicon valley 2.0 is a bit playing out and we are waiting for another wave of new ideas. we're not seeing it. so it maybe a mix of those things, maturing industries. i know that is funny to say about things that are five years old but in that business maybe it is true and a slowing economy. i'm not super negative we will go in to a recession unless we do something on the fiscal cliff. but i do believe with the big overhang of private, public, external debt in china, we are not going to grow like gangbuster and not see several years of great earnings growth. this moderation is consistent with what i would expect at this point in the recovery. >> we'll leave it there. thank you so much. great ta touk ta you. >> thank you, maria. >> ken rogoff joining us. up next a warning to the world from a woman that runs the

international monetary fund. what she says is going right and wrong when it comes to global growth. and later, raising a blost glass with a boston beer company. how sam adams grew from a kich on the the largest craft brewer. look at how the stock market ended the week. [ male announcer ] the 2013 smart comes with 8 airbags, 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. aflac... and major medical? major medical, boyyy, yeah! [ beatboxing ] berr, der berrp... ♪ i help pay the doctor ♪ ain't that enough for you? ♪ there's things major medical doesn't do. aflac! pays cash so we don't have to fret. [ together ] ♪ something families should get ♪ ♪ like a safety net ♪ help with food, gas and rent, so cover your back, with... ♪

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♪ christine lagarde one of the most powerful women in the world. she's managing director of the international monetary fund, which works to improve the economies of countries around the world. i caught up with madam lagarde last week in tokyo about economics, the tax rates in france and austerity measures in greece. >> key thing, you see is the country is back on track and access the market. if we put on them obligations that they cannot deliver on

because it is too hard and too much, the program will not be credible. our position is that we would rather have a program that is difficult, but credible, rather than a program that is going to be so difficult that it is not credible. >> just unrealistic. i guess there's a balance to walk, growth and stimulus versus austery. >> i don't think with we are talking about growth or stimulus at the moment in greece. for the moment there is still tax consolidation to be had and structural reforms to implement and there's also privatization to complete and there's also revenue to collect. that's really what is on the agenda at the moment. >> you have complimented the ecb's effort and central banks around the world providing stimulus, but when it is too much? what is your opinion in terms of all of this free money and stimmust lus that is 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 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. >> in terms of france, what do you make of the latest policy there in terms of rates, tax rates up to 75% on the highest earners, is this appropriate? >> i'm afraid i will disappoint you. because i'm not going to take up question on france for obvious reasons. >> because it's your country? >> correct. >> it seems a little aggressive from a policy standpoint, do you think we could see that kind of tax rate 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. >> what with we say is that deficit reductions come

twoaways, reduce public spending or increase rev knew, meaning you increase the tax. our sense is that -- our studies actually show that by reducing public spending you generally reduce the deficit in a more efficient way. >> these are the issues we are 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 has real implications. what's your take on where we are in the u.s. in that fiscal cliff. >> the imf have been warning for 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's a concern. it's a concern because, you know, toward and households, people who want to buy a house, make investment, hire people would like to know what the

environment will be like and what the fiscal deficit momentum and process will be in 2013, and more importantly going forward so that they appreciate what environment they will be in, what tax rates will apply. what loopholes will survive or not. >> that's why increasingly we hear executives and managers of businesses that say they will sit on the money because they don't know what is to come. do you think after the ux election we will have more clarity? when will things loosen up. >> as soon as possible is desirable is all i can say. >> my thanks to christine lagarde. up next on the "wall street journal report," the man behind sam adams beer. brewing up businesses of a different flavor. how one successful entrepreneur is trying to grow

up. a short word that's a tall order. 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. hey, it's sandra -- from accounting. peter. i can see that you're busy... but you were gonna help us crunch the numbers

for accounts receivable today. i mean i know that this is important. well, both are important. let's be clear. they are but this is important too. [ man ] the receivables. [ male announcer ] michelin knows it's better for xerox to help manage their finance processing. so they can focus on keeping the world moving. with xerox, you're ready for real business. >> i never thought i would start my own business. that was a challenge in figuring out the books, the financials, insurance. you know nothing in the beginning. you are like i want to bake and get my stuff out there and the sam adams brewing program was super helpful. we got an $8,000 loan. it was at the point where our business was growing. we had put personal funds in to it and it was to the point where we needed to find something. we were able to hire staff, run rent our commercial space and

more production on a bigger scale. we are a small business, small by mighty. >> joining us is a founder that went from small to mighty when it comes to the beer business. his name isn't sam adams. it is jim koch. good to have you on the program. >> nice to be here. glad 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 come from six generations of brewmasters, so beer was in my history, in my blood about .06. it was still legal. i knew how to home brew because i had done it with my dad. i had an idea of starting a small brewery that would make high-quality beer here in the united states. not competing with big, mass

producers but making crafted, small batches of beer and that was sam adams. >> tell me how you are supporting new entrepreneurs today. >> it's still a small business in a way. we live in this business where the bud, miller and coors of the world are giants. we are the most successful craft brewery but that means we are the tallest pygmy. we are 1%. we with remain a small business. i wanted to reach out and help other small businesses as part of our community responsibility. i watch businesses do things charitable things where you just kind of write a check and the money just goes away. my feeling was, as a small business that is entrepreneurial and innovative, if we are go ing to do something to help the community we want to do it in a leverage way, that has added value to it. we developed the sam adams

american dream program. it has two components that address the need that i had when i started sam adams. i couldn't get loan money an i couldn't get access to the good nuts and bolts business advice that a small business needs. i have a harvard business degree. i have an mba but i didn't know how to set up a payroll system, make a sales call. >> sure. >> how do you procure malt and hops for the best quality. those kinds of things. and i had to learn them and it would have been really nice if i hadn't had to do it through trial and error. >> in brewing this american dream you have worked with 150 million businesses 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 because small business is all we are talking about these days in terms of the job creators. >> being a small business never gets easy, no matter where the economy is. there's always been, and

probably will probably always be this funding gap. no one wants to make loans under $25,000. the small business administration, that's the smallest loan they will make is $25,000, yet there are all of these businesses that employ two or three people and can grow to employ six or eight or ten people. they can't get money. >> american beer drinking, in general -- >> you aren't even drinking and you are slurring your words. >> what does that mean for the consumption of kraft is that a different story. >> absolutely. because you are what seeing is people are going for quality rather than quantity. at the same time they are drink less beer overall. kraft beer is growing double-digits because people are getting educated palates and want to drink something with real taste. >> pumpkin flavoring is popular

right now ahead of thanksgiving and halloween. so you have new flavors out? >> yes. one of this cool things to me 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 pumpkin, cinnamon, cranberries, exotic spices like grains of paradise. the center of creative in the world of beer has moved out of europe and it is now in the hands of the small, independent brewers like save sam adams here in america. >> you can smell it. it is so rich. cheers. thank you for joining us. we appreciate it. very good. delicious. >> malty creamy, smooth. >> it is. >> jim koch, good to have you on the program. look at the news this week that will have an impact on your money. and more on think conversation with matt damon

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hope hope you follow me on twitter and goolg plus. look for@maria bartiromo. earnings continue and they are out from caterpillar, dupont, at&t a, boeing, proctor & gamble and merck. coming out with earnings apple, amazon, facebook and yahoo. big week for tech.

monday is the third and final presidential debate. president obama and mitt romney set to discuss foreign policy. on tuesday another apple product announcement is expected. on wednesday the federal reserve eep market committee wraps up a two-day meeting and on friday the first reading of the third quarter gdp 2k3w7d and windows 8 is expected on the a redesign of the operating system. that is this friday as well. last week we had a conversation with matt damon and gary white, cofounders of water.org. here's more of my interview including what is new in damon's day job and how he is going behind the candle about bra. >> when i was preparing to see you, i saw the liberace clip >> michael douglas and i finished it. it really went. it will come out in may on hbo. >> so you play liberace's lover. >> yeah. i got to wear clothes i have

never worn. steven directed the move and i have done seven movies with him and i'm enormously proud of it. >> damon plays liberace's companion who filed a $100 million suit against the singer in '82. >> did you have to have love scenes and stuff. >> oh, yeah. oh, yeah. >> you look great in it. the shots i saw you had you looked great. >> i had good wigs. >> you sign this lease and it gives us the right on to drill on your land. a film tackling the issue of fracking to untap american reserves of natural gas. >> it speaks to american identity, like where we are we now? the stakes are so incredibly high. >> do you write a lot? >> i haven't sat down and written since "goodwill hunting." >> i didn't realize how how much

i mied it. behind the candleabout bra airs on hbo in 2013. a front row seat to one of the rare bipartisan moments of an election year. al smil smith dinner new york. great to see president obama and governor romney take a night off from the campaign trail for this charity event tradition in american politics. thank you for being with me. each week keep it here where wall street meets main street. have a great week, everybody. i will see you a