>> paul: predent obama declares the g-20 suit a success. that as global leade agree to keep stimulus measur in place until ecomic recovery firmly takes hold. >> we need a price which alls the instor to invest and the producer to pruce. d we believe $75, and if you wa a range, between $70 and $8 >>usie: this man's words move oil prices arounthe globe. coming up,y exclusive intervw with saudi oil minister ali al-nai. >> paul: then, f governor

kevin warsh upsetshe apple ca with a surprising viewpoint. he says en the time's right, rates could move aressively higher >> susie: l that glitters is gold, and that's how tight's "market motor" likes it. he still bullish on the precious metal. he's mark leibit, chief vestment strategist at vrtrader.com. >> paul: i'm paul kangas. >> sie: and i'm susie gharib. this is "nhtly business rert" for friday, september . "nightly busins report" isade possible by: thank you.

captioning snsored by wpbt >> susie: od evening, everyone. world leads have wrapped up thr meeting in pittsburgh with a pledge to sustain thei economic smulus programs until a durable recovery is secud. the 20 leaders warned, as econom recovery takes hold, a sense of normalcy shou not lead to compcency. but as darn gersh reports, critics say the leers record oninancial regulatory reform does not match their rheric. >> reporter: the predent declar the g20 summit he hosted a sucss, saying it had la the groundwork for long- term prosperity. >> today, took bold and concerteaction to insure that prosperity, and forge a new frameworfor strong, sustnable and balanced growth. >>eporter: g20 leaders also agreed to clamp down opay packages for bankers, endoing les to tie compensation to long-tm performance. th also pledged to eliminate

suidies for fossil fuels that contrite to greenhouse gas emissions. they also agreed to revi g20 mber nation's fiscal, moneta d trade policies to see if they a consistent with stainable global growth. the rld's rich nations tried this kinof peer review three years ag without much success in bringing down the msive trade defit inhe united states, and the correspondin trade surpluses inhina and germany. still, tim adams, a former assistant treasury sectary for international affair says countrs pay more attention to each otherhan they do to economts or international financial institutions. >> so, i think peer prsure matters, and if we say we' gointo do something, then our frnds around the table should hold us accountabl >> reporte but critics like economist simojohnson are disappointed lders failed to tackle the toughssues of financl regulatory reform. >> iterms of what they could have done pittsburgh, reasonably and realistally day-- setting up a framework a detail and specific framework to manage the ilure of major multi-natiol banks is

a comptely reasonable request- - and they completely opped the ball othat. >> reporte the real test for many g20 leaders wl come when they return home andave to deliver the reformthey have promis. thobama administration is already facing a tough tim getting its financial regutory overhaul thrgh congress. darren gersh"nightly business report," washington. >> susie: birre developments today on what's next for interest rates. federal reserve official sai the central bank may rai rates aggrsively when the time comes. kevin wah expressed his opinions in today's "wall reet journal," and then repeatethem in a speech this afteron. the commts confused investors. just a few days o, fed policymakers sairates woul stay low. so what's going on? zanne pratt got some answers >>eporter: the federal reserve governor's op-ed in today's "wall reet journal" was a potential handrenade for financl markets. and ju hours after lobbing it, author kevinarsh echoed much of its content aa speech in chico. >> if policykers insist on waiting untithe level of real

tivity has plaly and substantiay returned to normal, and the onomy has obviously return to self- sustainingrend growth, they wi almost certainly have waited too long. >> reporter: warshad many on wall strt scratching the heads. that's mostly beuse it was a 180-degree turn from wt the fed sa wednesday after its meeting on interesrates. pocymakers said economic conditionsre likely to warrant exceptionalllow rates for an extended period. why warsh publicly contradictinhis boss, fed chrman ben bernanke? ecomist chris low says no one really knows, investors should take the commen at face value. >>t looks like a senior ficial at the fed sending th message, that en though it's nonecessary right now, the markets should prepare at me point for fairly aggressive tightening. >> reporter: economist bob brusca says dissensiont the fed is normal; the way war is

publicizg it is not. i don't know if he has political aspirations. i don't know if he just nts to draw some tention to himself. maybe he's thinking ofaking some headlines a points about indendence so he can go and do something else. and this ctainly does elevate his name. up until now, he's been pretty quiet governor. >> rorter: as for the future of intest rates, economists say expect them to remailow. today's developments, hower, suggest there could be a l re debate out just how long they'lstay that way. suzanne pratt, "nightly buness repo," new york. >> paul: those warsh comnts puzzled wall streethis morning. stocks hded lower as an unexpected decne in august durable goods and a smalr- than-eected rise in new home sales had investors doubng the recovery'srospects. stks stair-stepped their way lower as theow posted a 58-point mid-day loss th the nasdaq off0 points. the sellff was cushioned a bit by a bigger-than-expecd rise

in late-seember consumer seiment. but the mark still ended broay lower. the dow industrial average closedff 42.25 at 9,665.19. for the week, the dow se only once for a netoss of 155.01 pots. the nasd dropped 16.69 to 2,090.92oday. itose twice and fell three times this week for overall loss of 41.94. e s&p 500 fell 6.40 to 1,044. today, and for the week overall, off 23.92 pnts. in the bond market, e ten-year note climbed 16/32 to 102 /32, putting thyield at 3.32%.

>> susie: i'm just back from saudi arab, where i met with ali al-naimi, the nation's o minister. as theominant member of opec, he plays a crucial role deciding what consumerand businesses pay fornergy. this week,aimi hosted 3,500 business leaders andeads of state for the opening of a multi-billion dollar universy, the king abdlah university of sciee and technology, or "kaust," for sho. naimi guided its developme and is its chairn. began our conversation by aski naimi how kaust will impact the saudi economy >> you know, saudiarabia tod is highly dendent onne urce of revenue. now we cannot contue forever on this sour of income.

let us do our best toiversify the ecomy, industalize, and move to a knowledge society eventually. >> susie: what e you going to focus on? what will be the bgest growth industry outsidef oil ultimately? number one is food. numberwo is water. number three, belve it or t, is energy and environmt. these arthe three areas of focus. now, why do i say energy? >> susie: les talk little bit about oil. we've seen oil prices this year as low as $32 and not long ago as high as $147. what do you ink is the right price for o? >> we believe that around $75 is a fair price for the o

producers, the consur. why do say 75? now, to produce some of the hydrocarbon sources requires a price which rewards the investors. some of these vestments need a price between $60 and$80. and that's why woe chose a fair price of around $75. >> susie: some peopleould say $75 is not the optimal pric because e dollar is s weak, and so t compensat for that, the ice shouldctually be gher. what do u say to that? >> of coursehere is some trh that. acally, in saud arabia it woul't make any difference. susie: do you see prices going below $70? >> if inew that, i wouldn't be here. i would be gambling in las

vegas. i can te you one thing-- the price. fltuate, keep change. >> susie: will it make another run for a $140 level? do you see thahappening? >> anying is possible. we will do our best to avoid that. because i n't believe high prices are good, n do low prices. we need a price which alws the investor to inve and the prucers to produce. we believe 75, and if you wa a range, between 7 and 80. >> sie: as you know,he u.s. economy depends on conmer spending, and know worst biggest factors foconsumers to spe is what they pay for the price of gasoline. what c you tell american supers of what they c expect to pay for gas? pay less taxes. you know, if you took the price

of a gallon of gasoline and looked at what contributes to at price, it's probably 30%. worldwide you will find is ging 60 to 80%. the biggt jump in the price of gasoline is rely taxes. >> susie: but when gasoline prices not lg ago jped from $2 a gallono , that wasn't because of goverent taxes. thatas because the actual price jumped >> right. australian speculating, from playing arou with the priceof oil. >> sie: how do you do tha >> by registration. and i believe tryg to manage this speculaons ing discussed very loudly and

oroughlyin many organizations in many government. institutions. you have a reputation for tryg to keep oilrices stable, but there are other opec countries that are n committed to that. what do you say to them? >> we always tryook reasonable and moderate, in erything we do, actually. if i am at an oc conference, we will ha, of course, differences of opinion. but eventually, modetion becomes the... subje of the day. >> susie: a big question for eryone right now isthe recession over? what do you think? >> i wish knew that. but because i'man optimist, i believe-and based on what we

ve seen,he recovery of price and how is reacting to groh eye believe woe are-- we are on the roado economic recovery. >> susie: whatigns are you seeing? >> see it inemand for energy i see i reflected ithe price. so is there. and it's happening. >>usie: you have anpec meeting coming up in december. do you see anything gog on in the markets that would call for a change in policy? >> right now. i don't beeve so. i think weill be as we are day. >> sus: yo >> susie: u can watch the tire interview with minister naimi on o web site, "nightly businesseport" on pbs.org. and ononday, we'll bring you interview with the c.e.o. o saudi arco, the biggest oil company in the world.

>> susie: nday, what happens if 30 million unsured people arsuddenly in the system? some answers as we continue r health rorm coverage. bankruptcy may make stnge beellows for mattress maker simmons.

the rm plans to file for bankruptcy proction, and will be sold to ares manament, which owns rival ser mattresses. mmons hopes to reduce its de om a billion dollars down to $450 million mattss sales have suffered in the economic downtur mmons bankruptcy filing coul come within 90 ds. >> pau dove soap is joining forces with brylcreem. consumer products gianunilever is buying sara lee's by care products uni the price g is nearly $2 billi. the acquisition boosts unilev's presence in western europe a asia. ra lee will use part of that money for a billn-dollar stock buyback program. thdeal is still subject to regulatory approval, b should close ne year.

>> susie: here's a look what's happening next week: our friday "marketonitor" guesis michael hasenstab, senior vice present and portfolio manager of the templeton global bonfund. on the economic calendar tuesday, the s&pase shiller home price index f july is released; weesday, the final reading on second quarter g.d.; thursd, it's september auto sales, a the august reports on personalncome and construction spending; frid, the september employment report. paul: my guest market monit this wk is mark leibovit, ief market strategist for

vrader.com, and welcome back to nbr, mark, good to s you >> paul, gladto see you always good tbe back. >> paul: you have been correctly bullish onthe stock market in general an gold in parcular. we've had a heck of a run on t stock mark sincemarch with the dowoaring from 6900o 9800evel. is ittime f profit tang in stocks her >> it appears so. we've been in an upwardhannel since march, looking at the dow industris, there's a rk perhaps a pullback to nine,000,900, maybe, but it's still upwardchannel. and the work bacally says we're in a bull market here which could st a lot longe and go alot higher. some of the technicawork we' doing, particularly a reverse head and shoulders pattern we put together on the chart shows potential as high as 11003. i wa talking 10 three. any puback here in octer, november, would be a y for a

move to that higher leve i thinksome time into next year. >> paul: all right so still bullish long term on stocks. now, you have been extremely bullish on gd, predting last april would go from around a $900 per nce level then, to $1,000 an ounce whi it did early this wee good call. where do gold prices hd now? >> well, we've only started, paul. there's al rever head a shoulders meurement in gold up to about 1300 andou know i have a bigger pture number up at 3,000. but our annual forecast model for gold pretty much pned it all year calling for a high her in the septemb time frame, and then maybe a little pullback. i think that's wt we're starting to see now a ttle bit of a correction in the gold. and then i see it breakg through, and the 100 level is going become the floorand we're going to start moving up and up into the higher levels thk into next year. >> paul: the forecast mod cell ry good. i complime you on it. >>back in jaary, we said high

in september and here are. >> paul: dyou like silve at these pric levels, little over 1 an ounce. >> we have technical to the high, 21an ounce, an numbe way,ay higher tha that. >> pl: so you like it. on your lastvisit in late april with us, you had fr buy recommendations. let's see how they've done since en. first was central fund canada upearly1%, and heckler mini up 83.4%. are yostill with them? wod you buy them here? i buthem every day. i dollar cost average with an uptrend in the metals that i am projecting, why no >> paul: hwoore recommdations back in april. seats see wh they did. dennison up 21%, that's fr for fourcongratulations, good call >> wl, the mart-- the wind was my back. let's t it that way. >> paul: do you have some new recommendaons, mark? >> well, i would go back and stay with th central fund o canada c.e.f., 60% gold, 40%

silver. and as silver moves higr, it's a nic safe way of playing th rket short of owning the physic metal >> paul: toove along we only have a minute. >> s.l.f., the e.t.f. for silver. i would buy that. it's trading aroun the $15, $16 level. if sier goes to $21-plus, that going to go up to those levels. my next play would p.a.l., which iorth american lladium. this is play on palladi, and with all the cheapcars bng pruced in india and china, ere's going to be a lot of demand for palladium an platinum because of e calytic converter issue so thiss a good low-pre play. it's thr bucks and could probably double. >> paul: one mo choice quickly >> one play for the ovell market would be the tal stock market index, t.i.. any pullback wet here in october, novembe i would buy v.t.i.. dow goeso 11,000 y have total stock market play here.

>> paul: do you personally own the securities mentioned here or ha other disclosures? you do >> i trade a own tse securities, yes, paulthank you. >> paul:ur time has run out. thanks for being with usonce again >> tnk you, paul, fo having >> my guest, mark ibovit of vrtrad.com. >> susie: that'snightly businesseport" for friday, septber 25. i'm sue gharib. good night, eryone, and have a great weekend. yo too, paul. >> paul: and you, as well, susie. i'm pa kangas, wishing all of you the best of good bs. "nightly business report" made possiblby:

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