all new "open house nyc." ♪ welcome to "the wall street journal report." the markets hit a four-year high. is it time to sell in may and go away or should you stay, stay, stay? >> we're increasing 19 million a day. >> a billionaire businessman from a booming country. where he is putting his money now. why women should invest differently from men and how they should do it. "the wall street journal report" begins right now. >> this is america's number one financial news program. the "the wall street journal report." now, maria bartiromo. >> here's what's making news as we head into a new week. a disappointing jobs report for the month of april. just 115,000 new jobs created last month. well below expectations.

the unemployment rate fell to 8.1% as fewer people participated in the workforce but it is still the lowest rate in three years. the march jobs number was revise the upwards 154,000 jobs created then. the market started the week and ended the month on a down note though. on the first day of may the dow touched a four-year high. a bit of unexpected manufacturing data. then closed at a farr-month high. the markets fell later on in the week. we're getting more information about the facebook ipo. the shares will be priced at $28 to $35 a share when they go public. giving this company a valuation of between $85 billion and $95 billion. the company is expected to go public on may 18th. auto sales softened slightly in april. chrysler up 20% compared to the same period a year earlier. gm sales down 8% and ford fell 5%. the automakers say their numbers were down because of the timing of rental car deliveries. what do the jobs numbers

tell us about america's economy and what could it mean for the markets and your economy? economics professor at harvard university, ken wonderful to have you on the program, thanks for being here. >> thank you for having me. >> let's talk about those disappointing jobs numbers on friday, showing 115,000 new jobs created in the month of . unemployment rate down to 8.1%. of course the expectations called for a lot stronger job creation than we actually got. does this mean we've entered a new weaker phase of the recovery? how do you see it? >> well, i think it certainly brings us back to the point that this is going to be a slow, halting recovery. i don't think we're ever going to see 300,000, 400,000 jobs created a admonition at least not for a while. there's just too much debt, too much uncertainty, to really move a lot faster ran we could have 200,000. i mean, that would help. we'd gradually get better. this is just treading water.

>> so is that what we're supposed to see at this point in the recovery, 300,000 to 400,000 new jobs created? is that what would be typical of a normal recovery? >> we've been very,oío typical. and they do come to an end. but no, i'm afraid a normal recovery, a number would be like 150,000 to 200,000 for a long time, and you gradually heal. this is a little worse than that. but it's just one month. you know, they upgraded march, so if you combine the two, it wasn't quite such bad news. because you want to look at the overall trend. but it's not great. >> let me ask you about europe. eight of the 17 eurozone countries are now in recession. after taking those austerity measures. and they've been strong austerity measures. slashing government spending. does this mean austerity is not the right answer? it's not working? >> well, i don't think they have a complete answer. let's put it this way. there have to be some austerities. a lot of the these countries were borrowing way beyond their means and they're still getting

lent money in a lot of the southern countries. greece is still getting money. austerity would be worse if it didn't. but there has to be more. i think some of this debt just has to get written off, it's not going to work, they're not going to go in recession for five years across the periphery of europe. >> what is the implication for the u.s. from all of this? do the austerity measures impact the u.s.? >> well, i think the uncertainty impacts us because nobody quite knows -- i think in the next year or two, the floor's not going to fall out from under europe. they have a lot of cards to play. they can print more money. but if you're making an investment for five or six years the way a lot of businesses are, the way a lot of things work, it's not so clear where europe's going to be. i think that's definitely one of the uncertainties. by the way, we could bring it back to the united states. nobody knows what's coming up in 2013. is there going to be a giant

fiscal tightening with the bush tax cuts ending? with the temporary wage subsidies ending and other things? or are we going to have another stimulus? i don't think anybody knows. a lot of the uncertainty. >> let me ask you this. in terms of the tax situation in the united states, if we see the bush tax cuts expire, you've got capital gains taxes going up to, i don't know, 25%, you've got dividend taxes going from 16% or 17% all the way up to 43%. if that happens, do you think we get a market sell-off? >> oh, absolutely. i mean, i think that is not likely to happen, that's really jumping off the fiscal cliff. if it happened in the context of some great reform like bowls simpson or something that gets rid of a lot of the deductions, keeps the rates low, maybe raises them a little if the wealthiest taxpayers. if we get real reform that could

help the market. if it looks like paralysis, we don't know what's coming in 2013, a lot of uncertainty out there. >> we've goen a pretty strong earnings season, more than 60% of the companies that have reported are beating expectations. looking at growth of 7%, more than 7%, better than the overall economy. this is a disconnect that corporate america is doing very well and the real economy is bumping along the bottom? >> corporate america is part of the real economy, but some of those profits are coming from overseas. particularly from asia, latin america, where things are doing well. unfortunately, it's also the case, or fortunately, depending where you stand, that firms have been getting a bigger share of the pie. wages have been flat. firms' profits have been going up. labor's share of national income has plummeted the last ten years. it used to be always about two-thirds and now it's drifted below 60%. and that's part of why profits soar strong. >> and ken, i want to ask you

about something i know you're concerned about, obesity in america. how does that pit into this? you think obesity will have an impact on the economy? >> i have to tell you i'm influenced by the fact that my spouse has a children's television show on this. but i do think that if you look at longer-term trends, what we can do, education investment, i think health is a really important problem. there's all this focus on spending on old people and making them more comfortable and healthier in their old age. but on kids, we have a lot of problems and obesity is a huge problem. of course the first lady is engaged in this. the new york city mayors offices recently put a lid on bake sales in the schools, i read. it's a big issue on long-term health and productivity. >> concern, good to have you on the program, thanks so much. >> my pleasure, maria, thank you for having me. up next on the "the wall street journal report," brazil

is booming from oil to consumer products. i'll talk to the richest man in brazil about his plan for bringing business to the hottest story in the southern hemisphere. later, are men from mars and women from venus when it comes to money? women, wealth and wisdom coming up. take a look at how the stock market ended the week. of how a shipping giant can befriend a forest may seem like the stuff of fairy tales. but if you take away the faces on the trees... take away the pixie dust. take away the singing animals, and the storybook narrator... [ man ] you're left with more electric trucks. more recycled shipping materials... and a growing number of lower emissions planes... which still makes for a pretty enchanted tale. ♪ la la la [ man ] whoops, forgot one... [ male announcer ] sustainable solutions. fedex. solutions that matter.

the pace has slowed a bit, brazil is still booming, make no mistake about it. so says ike bautista, one of the world's richest men and a brazilian billionaire. one of his newest projects is a massive port in southeastern brazil set to open next year. i spoke with mr. bautista this week about commodities, growth, and a visit to that newport made

by none other than the president of brazil. >> a multi-million dollar investment. going there, she also saw the big, big corporations in brazil, that we could work together because we can supply service to petrograph, supply ships to petro graph at our gigantic ship yard. sending a message to brazil, blessing the port, she actually said it on a speech, that these big companies should work together. there's a win-win for everybody. a win-win for brazil, a win-win for the companies, for our country. >> do you worry there will be any other steps taken in terms of dampening, accentuating that view, that foreign capital is seeing more challenges in terms of putting money to work in brazil? >> no, she welcomes this. >> you don't think there's going to be any sort of barriers to that? >> speculative capital, yes. the money that wants to take advantage of the exchange rate.

the real rapts for brazil, in the brazilian financial markets, the 9%, that, yes. productive capital, it's mega, mega welcome. >> what about the higher interest rates? has that had a very significant impact on new business starting? i recognize trying to stop the hot capital, she wants long-term capital, she doesn't want this hot money. >> yeah, the beauty of brazil, in a country that is growing, so much demand. export boom. we have projects that generated unleveraged 15%. so yes, we have a high interest rate environment. but if you have a real project with 15% return, come. >> you control five publicly traded companies. you've got oil, oil drilling, power generation, port developers, ship building. a huge grasp on what's going on in terms of commodities, infrastructure. what can you tell us about the growth of brazil right now? >> brazil's main commodities, meat, coffee, sugar, iron ore, soy, now oil.

which is, you know, the world -- the southern hemisphere world, brazil, africa, india, indonesia, china. we're creating 20 million jobs a year. there's a disconnect, a total disconnect. the chinese, i don't know fun the number, but they have a steel production record again for the last quarter. in terms of steel production. we need the iron ore. the boom hasn't stopped. in brazil, if you pick the conflict up, six commodities. in the next decade, with this commodity complex, you've doubled the export again at today's prices. >> so even though we have seen a bit of a slow-down in chain thatha china, you say in boom is very much in play? >> most people forget, in 2002, 10 years ago, china's gdp was

$10 trillion. 8% on 7 central is 560. do the math. even 6%. 6% on 7 trillion is 4.2. $420 billion a year. >> how worried are you at some point inflation becomes a problem? >> in brazil? well, yes. i mean, major focus of inflation is full employment. 5.5% unemployment rate, 6% unemployment rate. so coming from the workforce, yes, we suffer inflation. but the president will address it partially by allowing more visas. for foreigners to come to brazil. brazil is living the boom that you americans lived in the '90s when 15 million immigrants came to the u.s. it's exactly that scenario we're living in brazil. we're creating 19 millionaires a

day. so brazilians are living the brazilian dream. >> what do you worry about? are there red flags that you're watching to ensure you stay on this track? >> as we said, labor. we're fortunate that people want to work in the group. brazil has created all these big -- the state-owned companies like valley, petrograph, electrograph, where we can create a lot of talent from. the country as a whole, there's always a pressure. >> tell me about the super port. what's the timeline? >> mid next year, mid-2013. all the companies that are coming to the super port, like the french, flexible pipes, all the equipment suppliers, to petrograph, to ourselves, are starting the construction of their fak trees right now. you can look at $50 billion of industry that will be installed in the back area of the super port. america should look at brazil as

a great area of growth. up next on "the wall street journal report," women and finances. how gender affects the way we spend, save, and plan for the future. future. advice you won't want to

♪

>> each one of us is our own boss. ♪ love andmarriage go together like wealth and power as women benefit from unprecedented professional and financial opportunities, are they wise

about wealth? camilla webster and carol pepper are the coauthors of "seven pearls of financial wisdom, a woman's guide to enjoying wealth and power." great so see you. such an important topic. as camilla makes the point, there's a significant gap in terms of money when it comes to women and men, we know that in terms of income, when it comes to power. camilla, you've made the point even with all this increased power women still need to devise their own financial plans for financial security. why? >> you know, right now we're seeing that women actually control more than half the private wealth in the united states. you know, and we were the majority of bread winners in 2009. but the worry that we found is also that over 13% of women versus 6% of men were poor over the age of 75. >> carol, you manage portfolios for high net worth families. one of your tips is choose a female investment adviser. what does that say about how women approach money differently

than men? >> women think about money in a holistic manner. how this is money going to affect my family? what am i going to do with it, how is it going to keep us safe? for guys, is mine bigger than his? is my return higher than his? we're more holistic. a female financial adviser tends to understand women have different motivations. >> is it true, do you think, that women are more long-term thinking and men are short-term, of the moment thinking? >> we have studies in our book that show men trade, overtrade, 50% more than women do. men tend to make the same investment mistakes over and over again, female advisers seem to be more risk averse and cautious. >> it's like they don't ask for directions. >> that's right. >> camilla, good romance should include good finance. how do the strongest marriages or partnerships tackle money? >> it's really quite simple. communication, communication, communication. if you're single and you're dating, who's picking up the check?

why are they picking up the check? what is his financial style? what is her financial style? if you're marrying a coupon clipper and you're not a coupon clipper, you've got to be okay with that. 60% of divorces happen over arguments over money. so without that communication and understanding, at the end of the day, particularly marriage is a business contract. since the '70s and early on it's all about love. but it is a business contract and you're in business together. >> and know your partner, bottom line, know his debt or her debt. >> know his credit score. >> take ate little further, think about wealth-building. and family-building. how do you advise women to nurture prosperity in mother hood? >> first of all, invest like a team with your husband, be on the same page. when you're thinking about having children, think about how much it's going to cost to have children, and whether or not you can afford it at this time. a lot of women are waiting to have children later in life but then they're running into $100,000 of ivf treatments in

order to have kids. sometimes it's better to have your kids early if you can afford it. once you have your children, decide are we going private schools? public school and working after school? it's working as a team with the children to help them understand exactly what money means to the family. when your kids are saying, gosh, i want that latest ipad, you don't have to say, we can't afford it. you can say, our family doesn't choose to spend money this way, and here's why. >> set goals. what are the priorities for the money you're talking about? let's go through numbers. the cost of raising one child from birth to 17 years old, we've got $200,000. we know that's probably the minimum. >> right. >> is there a way to balance the cost of parenthood with the needs? you have a great an neck boat about john d. rockefeller. >> will the woman end up poor in her 60s because she gave away so much emotionally with money when she was raising her children?

what we say is, one of the most important ideas the big three. based on a rockefeller contract that's in the book. saving, spending, giving away. saving 20%, giving away 20%. john d. rockefeller said to his child, and he was the richest man in america, we're going to have a contract and you're going to learn how money works. and i think by the age of 14, any parent does that with their children and you're going to see them as healthy, independent financial adults who aren't coming back to you saying, get me out of debt, i owe $20,000. >> of accountability bottom line. my sister does that. my sister has a 30, 30, 30 rule. any time her children get any money, say they get money from the tooth fairy, whatever it is. 30% goes into savings. 30% goes to her, so she can put it in their bank account. 30% in an account for charity. teach theme fundamentals. >> absolutely. one important point we make in the book is to raise a house full of prosperity.

there's a habit of people saying, we're broke, we're broke! and they have a car in the garage and they're paying their mortgage. so if you want to send a message about building wealth, you also want your family to appreciate the things you do have in your home and that they have value. >> great advice, ladies. we appreciate you joining us today. thanks for the book because this is something that we all need to remember and study throughout our lives. up next, a look at the news this week that will have an impact on your money. i scream, you scream, we all scream for modern art. the face that launched a thousand therapists. [ male announcer ] this is the age of knowing what you're made of.

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for more, check out our website. follow me on twitter and google plus, @mariabartiromo. stories that coming up in the week ahead. errings news from dow components disney and cisco. also macy's, kohl, jcpenny and groupon. thursday find out if the u.s. is importing or exporting more goods with the trade balance report. friday, inflation news, price index will be out, latest reading of consumer sentiment from the university of michigan. finally, call it the scream heard round the world. after 12 minutes, 12 minutes on the block at sotheby's this week, a pastel version of "the scream" cost $120 million. a new world record. it's one of four versions of the famous image of existential

terror painted by edward munk, the only one in private hands. the winning byrd came by telephone. among those rumored are microsoft co-founder paul allen and members of the qatari role family. that will do it for us today. my guest next week, former chairman of the down till of economic advisers austin goldsby. keep it here where wall street meets main street. have a great week, i'll see you again next weekend.