hi everybody, welcome to "the wall streetet journal report." i'm mamaria bartiromo. jobs, central banks, market madness and computer glitches. july ending witith a whimr, august starts with a bang, what is next and why. and in the midwest, how one of the worst crops in 15 years will hit you in t the wallet. and all that glitters is goldy, goldie hawn, not screen, stage, a and why she is loving . "the walstreet journal report" begins right now. this is america'a's number e financial news program. "the wall street journal report." now, maria bartiromo. here is a look at what is making news as we head into a new week on wall street, a hopepeful sign for the u.s. economy. the july employment report shows

that the economy created 163,000 jobs last month, much better than expectations. the unemployment rate, though, did increase to 3.3%. still it was the most jobs created since february. and a busy week for federal banks, the federal reserve ended the week with no action, but a slightly revised statement, giving a strong statement should the economy weaken from here. and the president of the bank, mario draghi didn't follow up on his tough talk last week about refusing to allow the euro to fail without any action. and all that in the middle of four-day losing streak. but the numbers rebounded, and another blow to investor confidence as the u.s. markets were thrown into turmoil on wednesday. a computer glitch, which caused repeated buying and selling and wild price swings of a dozen stocks for about 45 minutes at the opening of trading.

it is estimated it will cost knight 44 million, the stock went down far, and is looking for suitors. and gm down 6% compared to a year earlier, worse than expectatioionings. chrysler, down, toyota up 26%. so what did the fed mean by the statement, and what may be next? who better to help to explain it all than randy kroszner, a professor at the chicago's booth school of business, randy, thank you for joining us. >> great to be back. >> so we'll get to the fed in moment, but america's economy adding jobs for the month, better than economists were looking for. were you surprised? where are we in terms of the economy. >> well, it is a littl better than expected, not that much different than average for the year, about 50 thousand jobs averaged per month, for the year, barely enough to keep the

unemployment numbers stable. that is why it is bouncing around, 8.2, 3%, we're in a slide right now. >> what will it take to get the jobs moving again, do you think? >> i think there is a lot of uncertainty booming over consumers's decisions to buy, and the investment decisions. that comes along with the fiscal side and as well as in europe, still a lot of uncertain empty this week. and the fed, it has been accommodating. the interest rates are unchanged, no new bond buying programs, but hinting at action needed to boost the economy. i was a little struck by this, because chairman ben bernanke leakg to the wall street journal, leaks regarding september. is there anything new here? what does the latest meeting mean? >> well if you look at the changes, it didn't have that

much meaning. but when you look at the lastñr sentences, they say they were prepared to act if things didn't get better. and now they say they will act to provide more accommodation if they don't see a stronger recovery. and i think that is a more important change, because they say now unless things look a lot better, we're much more likely to act. >> so what is the action? the interest rates are zero, so what is the action? bond buying? >> i think the purchase of assets, they would be more likely to buy the mortgage back securities, the rates that people are paying on their mortgages, rather than go for securities, but i think there are a lot of different actions on the table. >> and meanwhile, a lot globally, the european banks leaving things unchanged. and mario draghi bringing down the spanish and italian bond rates, once again did nothing. is this a case of all talk, no action? >> you know, i sometimes think

about the '60s musical, promises, promises, and this seemed a little bit more of that. there is a structure that says if they take action, they will then provide support. but i think we kind of knew that already. the key is, will the politicians take the action? and so far we have not seen a lot of action. >> you know, i guess one of the big issues for europe is that the ten-year bond in spain rises above 7%, making it that much more difficult forpain to pay its bills and secure the debt. the markets push yield up. >> that is why they have to do it in connection with the fiscal authorities and the politicians. because they have to say okay, fine, we're going to get at the fundamentals. we're going to re-capitalize the banks, much like we did in the u.s. with the tarp program. so recapalize them, much with the support that brought down the risk spread. it has to be the combination of the work in europe. mario draghi has said we'll play ball if the others act, but they

have to act first, and i haven't seen a sign that they're acting. >> right, they're not acting, and the bundus bank is pushing on the stimulus. meanwhile, we've seen encouragement in the housing industry? have we bottomed? seen the worst? >> well, it varies sometimes with the washington, d.c. market, which some joke is n no the financial capital of the world. that has stayed pretty good, even during the depths of the downturn. but other markets have faced a lot of challenges, in many of the markets, mike chicago and elsewhere, we're seeing upward trend, at least a stabilizatio. but unfortunately, there are areas like detroit and cleveland that face a lot of challenges. >> what about the blows we have been seeing recently to the confidence in america's market? confidence on the part of investors is way down. this week we had a huge story that the computer glitch at

knight trading caused massive trades on wednesday, the firm now possibly looking to be acquired, struggling to come up with cash. what do you think can be done to restore confidence on the part of the individual? do we need actually human beings to conduct trades and get away from this electronic trading? >> we have to remember that human beings were not flawless. in the days before we had the automated trading be so important. so it is not as if getting rid of the robots will be perfect. there will be flaws in either system. i think the key is good backups, so if there is a problem in trading somebody else can step in and allow the trades to occur. certainly there was a disruption, but it is the key, if it is going to be a problem it will be a short problem that is contained. and i think just like in the military, we need to have that in the markets and need to have people confident that that redundancy is there. >> and that is like the --

>> some of it is over sight, but jefferson it is the -- some of it is the markets themse lves that they have somebody to step in if something goes wrong. >> randy, thank you so muchch. >> good to be here. up next, the biggest drought in half a century. secretary vilsack will join me. and later, goldie hawn, talking films and the work that is closest to her heart, as we take a look at the stock market. back in a moment. ♪ f ♪ i want to go ♪ i want to win [ breathes deeply ] ♪ this is where the dream m begins ♪ ♪ i w want to grow ♪ i want to try ♪ i can aost touch the sky [ male announcer ] ] even the pnet has an olympic dream.

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welcome back, dry, hot summer weather has caused

devastating growing conditions across the united states. leading to the worst food drought in more than 50 ears. secretary of agriculture tom vilsack is joining us now from ohio state fair. mr. secretary, good to have you on the program. thank you so much for joining us. >> you bet. >> so more than half of all the crops, due to drought conditions, the counties have been added to the list. characterize it for us, how bad is it? >> well, maria, it is probably the worst that we've seen since 1948, in the lower belt, obviously having an impact on crops, 48% of corn, and 57% of our range and pasture land, rated poor to very poor, so obviously this is a very stssful timen rural america. which is why obviously we're seeing prices go higher and

higher, the most in decades, and the u.s. provides most of the world's corn. so what can be done, what can thee u.s. do to ee help for farmers? >> well, in 1948, when we had the worst drought, most of them have crop i insurce that wl ve tm 75%, to 80% coverage. that is the good news. the mostifficult aspect of this is the livestock farmers, who don't have that. we're trying to find help to the livestock producers, opening up the grazing and hay areas, on their conservation areas, millions of acres they can use, and if they can harvest, and be able to sell. we're helping on emergency loans and stream l lining the disaste process, andaking sure that farmers don't have to pay interest on un-paid premiums for a period of time. and working on our conservation programs to provide flexibility.

but the tools are limited. that is why we need a farm bill passed to help with the assistance. >> and i know that last week the usda raced from expectations for food price inflation. so down the line, whatt is the impact here? will there be higher costs at the grocery store? on what shelves, would you say? >> well, here is the interesting thing, we may see lower prices, meat and poultry prices go lower for a period of time. then we expect to see them go higher for a bit next year. farmer's's onlget 40 cents for the food dollar, so even if the prices go up it shouldn't have that much impact on the food prices. as oil goes up you will be liable to see greater spikes in food. >> and yet, the price of corn up 50% since june, meat and poultry producers who use feed and corn

for livevestoc are aing them to relax the mandates, saying this week that using fuel for food should be re-considered. so where do you stand on this? should we mandate the use of bio fuels when there is a drought? >> well, first of all i think it is important to note the tremendous gains taking place, the productivity. we have produced 2 billion bushels of corn, even in a drought year, it is 2 million, so a high level of productivity. it is early to talk about it. we don't know what the crop or the yield will be, the technology, soil types, where it rained, when it rained will have an impact on where the crops will be. certainly, the surplus of ethanol, the credits that allow them to replace corn with these credits, we're seeing exports down just a bit and livestock feed down just a bit, ethanol production is down. so we have to take into

considerationhe production before we jump to conclusions. this is providing help to farmers across the country, in terms of job growth and consumer growth and gas prices. so weave to be careful about how we do things. >> let me ask you about the farm bill you just mentioned a moment ago. congress and the recess, without the consideration on the farm bill, so many disparate issues, do you have hope that they will provide to the subsidiary payments and sti provide the disaster and conservation? >> i do, maria, but the best sign that i saw before congress left before the recess was summer school for congress, no recess until certain legislation is done. i would d include the farm billn that effort. they have taken a five-week cess, , and i thinink they will hear back from folks they need to get this work done. why, it increases trade, and productivity, and local and regional food systems and

expands conservation with the flexibility, adding the reduction in overall cost. and it will provide a very strong and valid sety net. so it is vital and important that it get done. if it does not get done before september 30th, then the risk is that it gets tied in with the tax cutsand policy discussion. and it would end up with agriculture ending up with more than its fair share of the reduction. >> thank you secretary tom vilsack. up next for "the wall street journal report," academy award winner goldie hawn known for films like private benjamin. but is she playing a new role away from hollywood? you bet. >> it will be a big revolution >> it will be a big revolution in how we dea i've been fortunate to win on golf's biggest t stages.. but en joint pain and stiffness from psoriatic arthritis hit, even the smallest things became diffilt. i finally understood what serious joint pain is ke.

i talked to myheumatologist and he prescribed enbrel. enbrel can help relieve pain, stiffness, and stop joi damage. because enbrel, etanercept, suppresses your immune system, it may lower your ability to fight infections. serious, sometimes fatal events including infections, tuberculosis, lymphoma, other cancers, and nervous system and blood disorders have occurred. before starting enbrel, your doctor should test you for tuberculosis and discuss whether you've bn to a region where certain fungal infections are common. don't start enbrel if you have an infection like the flu. tell your doctor if you're pre to infections, ve cuts or sores, have had hepatitis b, have been treated for heart failure, or if, while on enbrel, you experience persistent fever, bruising, bleeding, or paleness. [ phil ] get back to the things that matter most. ask your rheumatologist if enbrel is right for you. [ doctor ] enbrel, the number one biologic medicine prescribed by rheumatologists.

academy-award winning actress goldie hawn's primary interest has shifted from movies to children. she works with the scientists and behavior experts to develop classroom experts in social l a reading literacy. when we interviewed her, goldy says she found the role of her life time. >> i started to see things, symptoms in our society that were very, very painful. and instead of giving into certain things, i thought what can i do to bring more joy and

stability to children? and that is how this was created. to giving chilen some tools, to understandingng that yes, th can choose happiness, and yes they can manage their emotions. yes, they are in their driver seat. >> also, the information on line, computers, information coming at them. so you have written a lot about 10 mindful minutes. tell me about the book. you say if a parent or educator just has 10 minutes with a child to focus on mindfulness, this is really a critical game-changer. >> yes, if you do that each day, what happens in the program, we teach children about the brains. and they learn that when they get quiet and focus and breathe and relax, which we do three times a day in the classroom, that it actually changes their neuro-biology. and the brain actually gets in tune to that. my book was written for parents

and teachers. and everybody wants to know how to manage their children better. well, the book is how we create less stress in our lives, how to manage our lives better. unless we do that in our world we wouldn't be able to tend to our children. it sort of works that way. >> the curculum thatou published, tell me about your hopes for outcomes. >> outcomes are for children actually to create a sense of emotional stability. also, for them to be able to get through school in a way, to have a more optimistic experience. to be able to know when they're stressed. to become able to self-r-recogne it. because that willltimate help their health care throughout their lifetime. also it will help to reduce anger. i think leaders and building new leadership with thesese types o to tools is vitally important. so if i were to look at my dream, my outcome, is that we would besocially, emotionally,

intelligent nation with leaders who can actually get along. >> what have you learned in terms of negotiating the demands of a nonprofit. you must be dealing with a whole different set of constituencies and groups, as opposed to your acting career? >> well, basically it is business building, you go out, a foundation, you do the best that you can for parents or childrens, or for care givers. moving into hospital settings now. it is a big business. a lot to run. it can be overwhelming sometimes. i mean this book, ten minutes, went to best seller list. i was just shocked. because us thought it would jus appeal to a sort of constituentsy. in fact, everybody wants to know how we can slow down, manage ourselves and not be so angry. the book tells you how to do this. same with the mind-up curriculum.

now we look at teachers, saying this is how we need to do this, manage our children. with us as an organization it is like trying to juggle eight different things, a huge shift. >> this is so important, goldy, i am so happy you wrote this book. let me switch gears, a few years ago you said you attributed your successful career, you said you focus on what you focus on. you said you don't have to do a movie every year, i want to live my life the way i want. it has been a few years since you made a film. do you miss it? what are you looking at now? >> do i miss film-making, no, one of the things, i alws thought wewe get to a certain a, we should change what we do. look at our passions. so that is what happens here. these are 10 years of the most incredible, joyful, stimulating time of my life. but i am going back to work. >> i know you were approached to

do broadway. >> numous times. >> so is that in the cards? >> it could be. i mean i trained as a singer and a dancer. and it is just crazy i didn't really use that in my career. but i have to tell you, working with children and the foundations and where we are today and the need that is so great, it is going to be a big revolution in how we deal with our children. i lovehat i'm doing. >> the book is terrific, thank you r joining us, good to see you, goldie hawn. up next on "the wall street journal report." we'll take a look at th news thisis upcoming week that will impact your r money. and good for stocks, why the d boy's club is justut dated and sad for business. helps make you a better investor. with our revolutionary e-trade 360 dashboard you see exactly where your money is anwhat it's doing live. our e-trade pro platform offers p powerful functionaliy that's still so usable you'll actually use it. and our mobile apps are the ultimate in wherever whever investing.

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for more on our show and guests, check out our website, wsjr at cnbc.com. and a look at stories coming up ahead that may move the market and impact your earnings this week. we get information on macy's kohl, and jc penny. and on tuesday, chairman ben bernanke will hold a town hall meeting across the country. and we'll find out on thursday about the exporting and importing of goods. and finally today, it is hardly breaking news that women are good for business. a study was released regarding gender diversity on corporate boards, ofore than 2,000

markets with capitalizations, those with at least 10 billion, those with women on board out did their peers. not a surprise to those of us in the know. that will dot for us today, thank you so much for joining us, next week, my guest, former democratic national chairman, howard dean. keep it here, have a great week everybody. i'll see you next weekend.ek