doeseform and tax cuts grow the economy. there will be growth. but again, not enough to pay for itself. something important about this administration is that trump ran a campaign where he talked a whole lot about the threat from our $20 trillion gross national debt. and what he said was, the way they were going to deal with the debt and get it under controlan- we have to manage our deficits and bring down the debt. but if you start saying you will use growth to pay for tax cuts, that is double counting. suddenly, you no longer have the growth to deal with the debt. and we are right now on track that this administration will borrow another $10 trillion over the next decade. we haven't seen the full budget yet and i'm hopeful that they will bring that down. now, doing nothing will increase the debt by another $10 trillion. the president was critical of president obama for increasing the debt by that much and i'm sure that's not what he wants to do. but if he takes the growth dividend and uses it to pay for tax reform instead of broadening the tax ba

but the purpose of tax reform is to grow the economy. the way you grow the economy is you bring rates down, you also grow the economy by having improved allocation of capital which comes from broadening the base, which is one of those huge assets. the way we can pay for this is bring rates down and broaden the rate. that will help growth. the third thing that will help the growth is don't balloon our already near record level of national debt. so if they really are focusing on growth, i think that is the purpose, you want to plan that's paid for. we have seen time and time again that the economic analysis is that tax reforms that are paid for grow the economy more than those that aren't. and i just -- what i don't want to see is this tax reform will be paid for by magic. bob: jared, as far as bipartisanship, do you see it in tax reform? we haven't seen a lot of bipartisanship so far. jared: perhaps. this isn't tax reform we're talking about. this is tax cuts. tax cuts should not be conflated with tax reform. my vision of tax reform is one

, kennedy, the economy boomed. the other argument, if i really thought there were fact saying giving more money to the government to spend stimulated the economy, increased jobs and gdp i would be for it but we try that under obama's $1 trillion stimulus plan? don't we have disasters with monopolies like amtrak and the post office, can't make any money, it boggles the mind there are people on the left, give the government more money and that will stimulate the economy when there is no examples of them doing that. dagen: taxes went up and the economy hasn't grown at 3% in the last decade. say this with me, cut my taxes. >> i am a small business and my taxes are too high. i sound like a republican even though i ran a socialist presidential campaign. there is a fishing boat in florida that would be sitting in my driveway if you would lower my taxes, i would stimulate the economy because i would buy that boat and it would be sitting there. let's talk taxes and a whole, so like an oxymoron because of how i speak but let'

part of the economy is to subsidize credit. it has been there since the 1930's, fannie mae has had a role. it plays a role, but you know, it has been there since at least the 1950's after one or two. -- after world war ii. so it can explain a little bit, but not the run-up, the complete run-up. the second part is the comparative question, there were countries, spain is one of them, that had a boom in housing prices across the 2000. without any governmental support really, whatsoever. nothing like the kind of government subsidies you would see in the united states. said that dynamic of capital moving across borders and blowing asset bubbles is something we see everywhere. it plays a role, but i would be cautious in assigning a primary role. >> it seems like our capitalist system has been growth centric for the past couple decades. if we do change to something different than capitalism, do you think the metrics for the measurement of success would be sustainability, or maybe something further disconnected from quality-of-life? or

as a rule, it weakened the economy. and that is the case because governments once again cannot spend us to prosperity. they can only miss allocate the wealth we have already created. as for housing, it is not a driver of economic activity. when you buy a house that purchase does not make you more productive. it does not open up foreign markets for you. it does not lead to cancer cures that elongate life. it does not lead to software innovations that make us more productive. it does not expand time. housing is consumption that reduces the amount of capital available for entrepreneurs and businesses to expand. and it was an economic depressants, not driver of growth. at which point to believe that it stimulated the stock market boom, you have to believe the deepest markets in the world, that is the us markets, populated by the most sophisticated investor were -- to economic growth. i think the very idea that these guys could trick the smartest markets in the world, let's be serious. but i get all of the responses. one of m

it would be good for the world economy. an exithey strategy, that means that the in a verymy grows robust way to achieve that 2% inflation target. governor, at this moment in time, you have no doubt that you can introduce new policy tools or a new stimulus because of the balance sheet? free as youel as were a year and a half ago? >> we have acquired about 40% of gdp, which is outstanding. but there is still 60% in the market. [laughter] i don't think there are any constraints for our monetary to stimulate the economy in the coming years. so, i do not think that monetary -- by the fed that we have 40% of gdp already. our balance is about 80% of gdp. francine: what have you learned in your time is head of the boj? i don't know if it is as difficult as you thought to manage this kind of economy. [laughter] >> it is challenging, but depending on the economy and but theonditions, current qe and current cost control. but i think it can be managed in a reasonable way. no particular concern the increase balance sheet, or interest r

we are the credit of the economy. we are the producers of the resources that when people seek to borrowed dollars, they are trying to attain. the fed has has no private stash of resources over here that it can release into the economy. we are the creators of it. the creation is somewhat separate. they read in newspaper, will the fed ease, will it tighten credit , they say something is wrong with this picture. that doesn't reflect the reality that we know. apple computer's most valuable company in the world, yet even it pays 3% to borrowers. anyone who has ever started a business knows that to attain credit it cost more than 0%. it's higher and higher all the time. that is the broad point. while it's easy access to credit , in the real economy we act as though the fed doesn't exist. that is a very positive statement about where we are. thinking about hollywood, brian is the most talented movie producer in the history of the industry. we are talking about splash, parenthood, a beautiful mind, apollo 13. apollo 13. we are

the economy has recovered. hat we see is banks that are better capitalized, in a better position to lend. >> growth, as you know, the user has-- u.s. economy's growth only been in the 2% range. that is certainly a concern. what is your view of the growth prospects and has it changed recently? chair yellen: a depressing fact about the u.s. performance is recovery,ghout the growth has averaged 2%. by anas been accompanied improving labor market or diminishing slack. is not stunning in absolute terms, has generated a lot of jobs. the fact that we have a lot of jobs is a good thing. we wanted that. the fact that you could create that many jobs in the context of towth that is so low points a significant problem. the problem is the productivity growth is very low. it takes of lot of labor to produce not very much extra output. what that is pointing to is that output per worker is growing at a very slow pace. it looks like, at present, the economy's potential to grow, with labor, but just growing at a trend pace, we ar

but greenspan believed in the new economy. he believed that this cycle would be virtuous instead of vicious. all right switching gears. , 1998, there is another context of his remarks before congress. he is justifying to congress why at the fed, the fed is sponsoring credit conditions and greenspan mentions before congress financial disturbances over the globe economy. that is because a crisis had broken out in east asia in 1997. many east asian economies, thailand and indonesia, singapore, south korea, they had developed rapidly throughout the 1980's and 1990's and they were hot on the heels of japan and germany's postwar industrial takeoff. same model, export led growth, fueled by exports and manufacturers. except now with this system over, there is virtually no controls on global capital movement. in 1997, and 1998, for various reasons global finance capital became suspicious of the east asian economies and they fled. on a computer screen virtually overnight. there is panic in the global financial markets and the financial s

is much better than taking money out of the economy elsewhere. if you can take $1 trillion off the table to start, that is the $1 trillion from obamacare tax increases, which is matched by more than $1.2 trillion in spending over a decade that increases in the out years, that is paid for. that is a $1 trillion tax cut every decade, out into infinity, fully paid for, offset by spending cuts, not tax increases, but spending restraints. then, you move over and you are $1 trillion closer to your statue of what tax reforms would look like. so, that's why it's extremely important as a first step. if you skip that, it is a mess. >> but the path to getting it done, if you are able to flip freedom caucus members, it could get to the house, but the senate will be difficult too, isn't it? >> this has been pretty negotiated with the senate early on. there is a section for stuff the senate wants in the bill. so, this has been worked with the senate and the governors as well. the obamacare repeal is also the reform of medicaid. while granting medicaid to the 50

we need that to grow the economy and increase competitiveness. lowering the corporate tax rate is an important piece. there has been no talk about what the offsets are. this is on the giveaway side. the purpose of tax reform is to grow the economy. you bring rates down. you also grow it by having improved allocation of capital. the way we can pay for this is bringing rates down. that will help growth. the third thing is, don't balloon our near record level of national debt. you want a plan that is paid for. seen plans that are paid for grow the economy more than once that -- than ones that aren't. i don't want this to be paid for by magic. >> we have not seen a lot of bipartisanship so far. >> perhaps, but this is not tax reform. tax cuts should not be conflated with tax reform. my vision is one in which we recognize that revenue is inadequately low benchmarked. demographics alone, we need more revenue, not less. , whetherenges geopolitical or environmental, we need more revenue not less. i am not alone in that view. tax reform should not be this

dollar recently has helpful to the u.s. economy but not essential. in other words, the outlook that it do okay. strong words on bank regulation. >> bank regulation, dodd/frank and on stock prices on these reports that argument that stock prices should terrify janet yellen. i could look at values and say they're high without predicting they'll go down next week or fe next month. >> right now the stock market has been no volatility. within the past couple years we had serious stuff. >> we'll watch that and see how that gets absorbed. oil as mike and i have been noticing dropped below 50. down 50 cents in the last few minutes. when we come back, forget tesla, spacex and solar city. elon musk's new adventure is mind control. dow is up 11. hey gary, what are you doing? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your br

we do need a plan to grow the economy. the labor market is not going to be as big of a contribute or of growth. i agree with looking at how we are spending money so it goes to more public investments. it would also change how our resources are spend. a key part is not growing our debt. when you look at these plans if the plan grows the debt that brings down your growth. in order do that you also need to offset to costs. because it is not the '90s to '80s we need to do everything we can to grow the economy. >> quickly, i have a scatter plot i will put up on my blog in honor of mya. you won't like what it shows. it shows the debt to gdp plotted against gdp per capita growth since 1792. it is a random scatter plot. unfortunately for your rap there, there is no systematic relationship between debt and growth. it doesn't mean the debt can grow out of control. i would be careful to at least try to tie it to -- >> was it at this point any other time other than world war ii? >> no. that's true. it is highly elevated. when the econo

even so, president trump has seen the economy thrive. the domestic economy is good. what trump's policies are, they are going to take time to implement and that's why i think you see a period in the first year, even forget the 100 days, you have seen periods where the market moves have seen periods where the market m oves a re have seen periods where the market moves are consolidates and then moves are consolidates and then moves up moves are consolidates and then moves up again. that is a very good and healthy way to the market to move. consumer confidence has risen and go to as business confidence. and, crucially, stock markets are up as well. the s&p 500 has risen over 596 as well. the s&p 500 has risen over 5% as investors being convinced that president trump will deliver for corporate america. they have a checklist of items that they want to pursue to get to the gdp growth of 3.5%. that is the number they throw out there. implicitly, they premise that grows on the idea of tax cuts mainly as well as infrastructure that. they have a lower legislating to do between

the difference for the u.s. economy is quite significant. economicand that growth for the u.s. is good for world economies. egyptian the president will begin his visit to the u.s.. the visit comes after talks el-sisi -- talks are expected to focus on security. by 2600ews powered journalists. this is bloomberg. you so much. let's get back to our top story. king issued a royal decree restoring bonuses and allowances or state employees cut as part of austerity measures. he announced changes to government offices. tell us what the reaction has been on the ground. fewef: it has just been a hours. a wide range of changes in involving some of the ministers, government policy and budget policy. that will come as a surprise. and now, rolling back. it gives them a bit of scope to loosen things up a bit. 80 bonus toing serving on the front lines. great to have you back on the program. does this strike you as a surprise? the government is saying, we are halfway there. it is a bold move but also a smart move. economic policy takes into account politics. consumers are going to be happy. about

important the egyptian economy. it is one of the cradles of civilization, the magnificent monuments across egypt -- going beyond that, there were a lot of russian tourists, are they coming back now after the referendum, shooting on the aircraft by militants? mohamed: one must understand we would love to see russians coming back very soon, but we are also depending on other markets. what we need to know is, you need to grow the different markets to upset any of the markets that actually have gone down. yousef: what about interest you see in the country? how is toryism spread out -- tourism spread out? tourism, or the beach tourism keeping the numbers afloat? mohamed: i think it is the culture of tourism. the ability to grow. cairo, we areses, seeing this growing and we saw it in the last quarter of 2016 and the first quarter of 2017, and this is an indication that people are coming back to that trend. there is also indication that people see the threat of security as a global threat. yousef: in the past five years, t

this is a situation where the economy is very stable. situation when you look at the out -- long-term outlook. more of a difficult situation for long-term growth. not for an explosive situation. yvonne: great to have you as always. want to thank kathleen hays. a new to stay in the battle for toshiba's chip business. we will have the latest. this is bloomberg. ♪ >> western digital says it is in talks with the japanese government about buying to chivas chip unit. they are looking to raise much-needed cash. let us go over to our asia tech reporter. western digital speaking to the public for the first time and we see this battle for the chip business intensive fine. -- intensifying. >> a little background. on april 9, western digital sent a letter addressed to the board of toshiba stating in forceful terms that the sale of the chip unit violate the agreement of joint venture dating back to 2006. western digital had exclusive rights and negotiations and they were displeased with what was happening. this was a bombshell and caused toshiba to ha

the economy is growing just a little bit above trend. ittle bit below our target. look at the underlying pace of inflation. look at the personal consumption, 1.75%. that tells you there was not this huge rush that we have to tighten monetary policy quickly. the economy is not overheating. at the same time, the policy is accommodating. we are pretty close to full employment. it makes sense to gradually take back accommodations and bring in monetary policy close to neutral. >> it's ok to raise rates, but i don't thing we need a major adjustment at this juncture to stay on track and keep our inflationary target. >> you said a week ago that three rate hikes this year could be overkill. why overkill? what's going to happen? >> this is not an environment where the data is screaming at the fed, you have to move. it is not like inflation is threatening 3% or the unemployment rate is moving meaningfully. like i just said, it has hardly moved in the last 18 months. i think you can wait and see in this environment and see how things develop. that is

if the economy behaving in such a way that it would justify that? an sep this year and to the extent that i gain more confidence in the forecast than i have to much that would be a good indicator that i could perhaps support three. two might be the right number if there is a little more uncertainty. about modest concerns whether or not we are going to get that. and if things really take off, and we get continued strong growth and underlying inflation really picks up, we could get four. >> i know somewhere in your body, you have the words -- .very meeting is live do you want to see the results of a move and how it affects the economy? it is not a press conference meeting. should markets look further out? >> you are right. have used colleagues this phrase and i am sure i have used it myself that upcoming meetings seem live. increases of three this year and we just did one in march, we will get two in it that takes place over the course of the year. at the upcoming meeting, i would have to see a lot of data. we go in and talk about the circumstances. st

can it impact the world economy? jean-claude: i think if this couple of uncertainty would be too long, it would certainly impact the world economy. but i expect that there would be some kind of stabilization, and we will see. i mean, it depends very much on the relationship between the u.s. and russia, at the present moment. isis should be the first enemy of both countries, and i have to say of the europeans also, is something which seems to be very much in the cards. so we will see. but in any case, it is very important that we have some kind of thoseement tensions, because otherwise, of course, you know, markets and the economy, the economic agents, are very much fearing uncertainty. francine: do you think populism is a little less scary than we thought three or four months ago? if you look at trump policies so far, he may have realigned a little bit with the western view. we have not heard about trade yet. jean-claude: we could see the interruption of the transpacific agreement, which was, in my opinion, a very big

you've got the economy as a whole we don't know what imports to the total economy are. d the council messed up if you -- i could go on a long time about the inadequacies, but the conclusions are pretty robust. one thing important is the rule for the b&bs and housing shortage in how to think about that. in terms of the competition between the industry for food and domestic clientele for food. the name of the game is changing policy to expand supplies are rapidly including housing as well as an includes domestic food production. the trick for a policy standpoint is to design a transitional period when you can both expand the supply of the tourist industry in the b&b industry on one hand and expand supply on the other and you certainly can't do it with 10% gdp investment which is what they are now. to do that they have to change policy and the policies we outlined in the report are the way to go to deal with the issue of supply. your point is well taken the transition has to be managed carefully to avoid addressing backlash. let me pick up a couple other points. john thomas

the british economy is resilient. s are hitting the brakes. looking at the figures, there is a sense that the economy is stabilising at a very strong level. but when we look at the figures, there is a strong sense that we are at a turning point for the economy. if you are an optimist, the shift from consumer spending to manufacturing is welcome, a rebalancing the previous government tried but failed to achieve. that won't be much comfort to households whose real incomes are shrinking once again. 0ur political correspondent, leila nathoo, joins us now from westminster. these are the last quarter we should use a good into the general election. as you would expect the election. as you would expect the election is already becoming a battle ground and this is a window of opportunity for labour and the lib dems to seize on the figures and see it as proof the tories' economic plan is not working. the figures cover the period when theresa may set out the detail about her brexit plan and we were leaving the single market and ac

according to the commerce department, the economy stumbled in the first quarter. gross domestic product, which is basically the broadest measure of u.s. output, grew at a paltry rate of .7%, below what had been expected. an increase in confidence readings over the last few months didn't even translate into stronger consumer spending, which accounts for roughly 70% of economic activity. while the headlines are disappointing, upon closer inspection, the anemic reading may not be all that bad. steve liesman did some digging. >> reporter: weak growth in the first quarter gdp doesn't have economists worried that the economy is really weak. instead, they see a bunch of one-off factors, pushing down the growth rate to just 0.7%. a big part of the weakness came from inventory adjustments. forecasters think that bounces back as companies restock their shelves in the current quarter. consumer spending was also slow, which contradicts bouyant confidence measures and fairly strong job growth. another quirk, q1 growth has been unusually weak for years, which economists say is

the economy >> to be optimistic there is changes but the slowest recovery ever. we never really had a real recovery with be employment ratios in has been very disappointing where i am coming from silicon valley with 6070 miles to the east but think it is something to work on so the goal of fire economics with does have enormous payoff but does require a change of policy with all those dimensions with the way you get the higher economic growth rate. tax reform will generate more investment. with regulatory reform. and that productivity growth. >> and reflecting blair growth is growing faster than we measure it also leads to productivity do you agree with that correct. >> productivity growth is less than half a percent per year. nothing that makes productivity harder to measure with that enormous amount. so where i come from the thing is that there is of problem if you look at those underlying sources with capital investment per worker in is in decline during this period so it is a surprising. and if we are going to get higher growth because the unemployment rate i

they hear every day the u.s. economy is not growing. certainly during the election they heard it from both sides. president trump as a campaigner kept saying how terrible things were. we were rolling. we needed to change. on the democrat side, the same message was coming out. and it not that they just make that up. they have hard statistics to back it up. they can look at the economic reports in the government and say based on those numbers we are not growing. those numbers are just wrong. i don't know again how much you want to dig in, but let me give the version of why i say that. the bureau of labor statistics that charged with new testament is to manufacturers, has your product changed in the last year? the manufacturer says yes. then they say how much more does the cost to make this years model than it would've cost to make last year's model? if the answer from the manufacturers it doesn't cost any more, we just thought of a way of taking a better product. and then the official result is to say no increase in quality. so that is not

the u.s. economythe medium and long-term, cheering the market more than simply a tax rate cut. the u.s. economy, the job market, consumption, housing market, corporate investment, is turning up, so that supports our view of risk assets. have had this slew of manufacturing pmi from emerging asia, a mixed bag, that how does that inform your view when it comes to this emerging markets rally in asia? does that have further to run? longthink we still have a way to go with this emerging market rally. for the first time in 4-5 years, earnings are picking up, crucial to support the long-term health of this market. if you look at the dollar, while the fed may be looking to raise a few more times this year, the dollar seems to be struggling to gain ground come us of that is an important signal that will benefit emerging markets, capital flows returning to emerging markets, and that to us is an important and positive signal or emerging markets in the longer run. haidi: it is also a big week for europe, the telev

keeping the economy on an even keel. ationalize the balance sheet doesn't sound like an even keel proposition. start letting the balance sheet rundown come it will have a tightening affect. it had a loosening affect when they did qe. we have seen the economy grow significantly since the fed began the whole process of qe. it was $800 billion before they began. now, you ve currencyn circulation and other fed obligations that amount to over $2 trillion. may be shrinking it by half or a little less by the time they get done with it. they don't want to walk around with this giant impact on the markets. it distorts pricing in the markets because they are the buyer of last resort. they want to start getting rid of it. if they get out of the markets, the won't -- they won't be distorting it anymore. if they let it roll off in a measured manner, not all at once , the distortion will get less and less and the fed will have less and less impact in the financial markets. when they buy all these treasuries up what you go into the stoc

usually the housing market has a lagging effect on the economy. lly at the end of last year construction rose and a service boomed. it is continually having a positive effect on the economy through the manufacturing and service sector. 0ne through the manufacturing and service sector. one could this be the achilles heel of the chinese economy in the second half of the year because of ——a lot of people are predicting a bubble due to rising prices. the government is aware of this risk and that is why they have been slowly tightening. cooling down on the housing market. liam broady scene is when new construction starts are slowing down. —— we have already seen that. is that say that they won't be a property bubble because the property market continues to grow at twice of the underlying economy. you could argue whether we already have a property bubble. if you look at prices competitive come compared to rent. we already have huge bubble. it is just rent. we already have huge bubble. it isjust a rent. we already have huge bubble. it is just a matter of

will getting tough now make the security and economy safer in the long run? donald trump citing by america and hire america executive order and hire america executive order he says i'm ambitious. i will not hide it. we will not hide it. we embrace ambition. women are made to be ambitious. i will dream big... big, without hesitation. we will take risks, not live in fear. we will rise together, rise above the negativity. no longer will ambition in a woman be seen as a negative. be persistent, don't apologize. never give up on your goals and dreams. we will model ambition for our daughters and our sons. i will help women around the world -the whole world- to succeed. you have to persevere. women are tough, strong, powerful. we have got to be a part of this conversation. ambition is feminine. ambition is empowering. ambition is not a dirty word. i can think of a lot of dirty words - ambition is not one of them. ambition is sexy - ambition is very sexy. what's your ambition? ... to help women build empires. ... help more women run for office. ... empower women fin

even though, donald trump has seen the economy and crime. the domestic economy is good. is why i think you have seen a period. just forget the 100 days. periods where the market moves up. 100 days. periods where the market moves up. consumer confidence has risen. so too has business confidence. and crucially, stock markets are up as well. the s&p 500 is written as investors seem convinced that donald trump will deliver for corporate america. they have a checklist of items they want to pursue to get to growth number. implicitly, they premise that growth on the idea of tax cuts, mainly as expanded infrastructure spending. that is an important milestone, they've got a lot of legislating to do. present john hasn't -- president trump has not been able to change much and if he doesn't soon, the high hopes which are fuelling economic activity, they may start to stall. let's stay with president trump because he's been telling reuters news agency he will either renegotiate or terminate what he called a "horrible" free trade deal with south korea. he also says seoul should pay for

the british economy is resilient. s around inflation going up and burning is stagnating. i think it's really worrying for the average household in our country now. it does show you, though, why theresa may has gone for this early election. because the economy is now on the turn. for years, consumer spending has been the motor of economic growth. but now we're hitting the brakes. interest rates are as low as they've ever been and consumers are borrowing more. but a fundamental problem has returned to haunt us. prices, once again, are going up faster than wages. a key measure of whether we're getting better off if the value of the economy per person, also known as gdp per head. that dropped after the financial crisis and only recently got back above its 2008 level. the first three months of this year, it grew byjust 0.1%. to political opponents in the election campaign, that's significant. i think the gdp figures should be setting alarm bells ringing. it underlines the importance of making sure that there are voices ther

of the economy, it's an adjustment year. k the adjustment here was a little bit too harsh for society to digest. they stepped a little bit back. in 2016, they saved about 80 billion rials due to the savings and rationalizations they went through. the minister of finance announces going to save about 17 billion extradition or. this money could be put to better use, meaning that it will fuel liquidity and demand in an economy that has been more difficult this year and last year in terms of consumption and demand. it's tracy alloway here in dubai. i want to ask you weekly, what do you think has happened to the goal of reducing that budget short fall? it wasn't immediately clear whether or not the decision to reinstate bonuses would actually conflict with that aim to reduce the budget shortfall by 30% this year. tracy. a great question, i think the government will continue to have its goals on the balanced budget by 2020. remember that next year we will have the the a t coming into force. revenues will increase additional fees. a

bankers like to say it reduces lending in the economy. d he seen any evidence that at the large bank level there has been any affect from the increased capital they have to retain? that.: i don't buy capital is a source of funding for lending. when we raise capital in small banks or large banks, it is a source of funding. it becomes the foundation that lending. levels, while they may reduce your return on equity to shareholders, they are an important source of stability in the financial system. i would argue, a stronger bank is one that earns the public's confidence and is able to do far more. michael: we have heard stories that community banks have cut back on lending to small businesses, especially those at the $10 billion in the low level because if they get to $10 billion, they are subject to more regulation. why get more regulation, stay where we are. esther: the law was good intentions. we want these rules to apply to a different segment of the commercial banking industry. the reality is they have had consequences across the entire s

john: what worries you most in the canadian economy at the moment? it isdeau: a lot of around confidence versus anxiety. if as we have seen people continue to send their kids will not have the same kinds of opportunities and quality of life that they were able to inherit from their parents, a sense of unfairness in the economy, a sense of lack of progress or upward mobility, then we get an openness to extreme measures and lashing out. that is where i think the responsibility of our government is to demonstrate that we are hearing those fears. that is where the canada child benefit came in last year where we give more money to nine out of 10 canadian families every month by not sending that to the wealthiest families. we are able to do a little more on that. we have lower taxes for the middle class by raising them a little bit in the wealthiest 1%. we strengthened the canada pension plan for a generation. actually, for future generations where young people who are entering the workforce now because of what we did on strengthening the cpp can be more c

hard to have a conversation but if you can open it up and say, i understand you are afraid about the economyur job, let's look and see. is the threat you face caused by the fear you have identified? very often it is not, particularly when it comes to issues of undocumented immigrants and their impact on the economy. >> that program with loretta lynch and with valerie jarrett coming up starting at 8:00 tonight here on c-span. theress is on a break and district will carry 33 great for another week or so and they will be back on tuesday, april the 25th. the house returning april 25. among the items are federal spending for the remainder of this budget year and 2018, the current spending authority running out of the end of the month. also pending, raising the debt ceiling which limits government borrowing. att back a week from today three at lock in the afternoon and they will vote on the nomination of the former agriculture the secretary and then on advancing a deputy attorney general nomination over on c-span2 and the house here on c-span. coming in for a brief performance session in about 20

as always the big test in any election, the economy. figures suggested that the increase in inflation is starting to bite and consumers are starting to feel the strain. some might say you have called this election to get the mandate before the economy truly turned sour. we call this election because it will strengthen the prime minister's and in the negotiations to get the right brexit deal for britain. but in terms of the economic data, it has been remarkably resilient over the last nine months. just this week the imf revised up its forecast for britain's economy this year to 2%. the chancellor will return from his us trip at the weekend, that to an election battle where the promises the parties makes the voters will be key. as far as mr hammond is concerned, if you are it would seem the better. —— if fewer it would seem. len mccluskey has been re—elected the general secretary of the uk's biggest trade union, unite. mr mccluskey beat his nearest rival gerard coyne by just over 5,500 votes. but only 12% of unite's million plus members v

up in the -- pick economy is felt around the world, both in the advanced economies, where we see a pick up in the manufacturing in particular and also in the emerging markets and developing countries that are also growing at a reasonable pace and providing about 3/4 of the global growth going forward. francine: that was imf managing director christine lagarde speaking ahead of the imf world bank meeting. we touched on the looming brexit communications. i will bring you my interview at daybreak. ♪ francine: welcome back. bloomberg will be in washington able 21st when finance ministers and a central bankers meet for the meetingtion for of the beau. i spoke with imf managing director christine lagarde, who warned of increasing protectionism. one of the prominent voices during this negotiation will be the european commissioner for economic affairs. i had a chance to speak with him in brussels. i began by asking who he thought had more to lose in the event of no brexit deal. >> let's not jump to the conclusion. we have not yet opened the negotiation. next there will be a meeting of the counc

but what could that mean for the economy and for you? scott hoyt joins us, the senior director of consumer economics. welcome. nice to have you here, scott. >> nice to be here. >> put this in perspective. that's a big round number, $1 trillion. but how does it compare to the overall debt load that the consumer carries in the economy? >> well, actually, consumer debt loads are quite low right now. credit card debt makes up less than 10% overall outstandings. mortgages obviously the big piece at-70%. there's not a lot of mortgage debt out there right now. interest rates are low, so payment burden on consumers is relatively low. >> for the mortgage, but credit card debt tends to carry a very high interest rate. is that not worrisome? >> well, it can be, but right now, total consumer debt payments on all forms of debt relative to their income is at historic low. even though credit card debt fairly high with interest rates low and other forms of debt low, consumers are not overly burdened by their debts right now. >> so, what should we be watc

red. easing and the economy has recovered. very weak first—quarter figure yesterday. unemployment is very low. there are a lot of people who say this is fake, the market is not sustainable, the numbers... if you have these absurdly low interest rates, what do you expect? when interest rates titan, you will find that you're talking about equities, they will come off. if these 100 days of the golden period when you rush to get things done, he has a long time in office still to deal with the rest office still to deal with the rest of it. he might not find that is easy because as we could see with 0bamacare... easy because as we could see with 0bamacare. .. he is easy because as we could see with 0bamacare... he is not easy because as we could see with 0bamacare. .. he is not finding it easy and he will not achieve many other things he set out to achieve. charlie and ruth are right, his supporters are very much focused on domestic american questions and the economy carries on growing he will be fine and a few bills lots of airport

coming up, as the weather heats up, the u.s. economy could go with it. find out why the market is still expecting a summer hike, as we bring you fed chair yellen's latest comments. this is bloomberg. ♪ matt: it is 6:18 in london. 1:18 in hong kong. you are looking at beautiful pictures of what looks like a smoggy afternoon there. it's an hour later than london and berlin, 7:18, an hour ahead of you. but we will go way ahead and get the bloomberg business flash with deborah mao. itsrah: matt, toshiba faces third deadline for reporting third-quarter earnings. if the company doesn't file today, it could seek another extension with the securities regulators, but if that is rejected it has eight business days to submit results to the tokyo stock exchange or face delisting. a spokesman said it will report results when auditors approve the final figures, without specifying when that would be. hasry goods leader lvmh reported first-quarter sales that exceeded estimates. the maker of dior says sales rose 15% to 9.80 8 billion euros euros. billion lvmh joins indust

are they voting on the economy? >> i think there's a lot of voting on fundamental competence after what we've seen in the last couple of presidencies where very strong personalities have turned into weak personalities quickly. there's a lot of that. that's partly why macron has done so well in the campaign. clearly the le pen campaign will be voting on emigration, jobs in peripheral areas like you saw in that film. >> david, thank you very much. david lee, senior europe analyst for control risks. >> the government's assertion that no deal is better than a bad deal when it comes to brexit is unsubstantiated. that's the view of the cross-party brexit committee which is calling on the government to improve its contingency meeting. this after the brexit secretary admitted that the government had not assessed the economic impact of leaving the eu without a deal. >>> coming up here on "street signs," less could mean more when it comes to global m&a. we'll recap some trends seen in deal making from the first quarter. that's

everything in the u.k. economys improving compared to three months ago or six months ago, yet the cap -- the positions are very short. after some initial volatility, sterling appreciation can continue. big news this morning was the the 10 year jee got yield close to zero or at yield now. that is the boj pull target of 10 year yields. this is also a reflection of what is happening with global blonde -- bond yields over u.s. treasury yields continuing to fall. even though we see a slight rebound in asian treasures -- trading. when will this start recovering and will happen to the boj policy to continue on bond poses best purchases in the 10 year sector? >> for the boj they are being driven by what is happening in the global situation in their very much a derivative after the moment. 0% on the 10-year is the target. they will be worried about the flattening of the curve. that is certainly a concern. at some point they might start pulling back their purchases. but then that might send it towards capering. they will ign

that means the economy is growing and growing very slowly. come along now. what is at play in terms of what brings down the gross figure? what we have seen in the last quarter is inflation. that has picked up and hit the gdp figure hard. real wages are not growing. wages are going up atjust 2.57. inflation is going up a little bit more. that is putting a squeeze on us more. that is putting a squeeze on us in terms of how much we can go out and spend in the economy. what do the gdp figures tell us about what sectors in the economy are doing well and which are less well? where is the movement? the main movement has come from retail spending, consumerspending. movement has come from retail spending, consumer spending. it movement has come from retail spending, consumerspending. it is about wages and inflation. that is an important driver of economic growth. the biggest part of our economy is the services sector. that had a poor performance. manufacturing, also a little bit disappointing, particularly in light of the fact the pound has fallen bac

first of all, the economy is near full employment. unemployment, that is near or at the fed's target, maybe even lower. inflation is moving up to the 2% target. -- not there yet, but on its way. and the fed cannot fall behind the curve to normalize interest rates, because if they do, they risk moving too slowly. that could slow down the economy. what janet yellen is talking about is not slowing the economy but making sure it doesn't road to fast. here's what she said. chair yellen: whereas before we sed down ont pres the gas pedal, trying to give we economy all the oomph possibly could, now allowing the economy to kind of coast and remain on an even keel, to give it some gas, but not so much we are pressing down hard on the accelerator. that is a better stance of monetary policy. i love driving and anything to do with car and driving metaphors. she wasn't asked by this group of students or the moderator about the balance sheet, so she didn't say anything about it. when you look at market expectations, still at odd with the feds, the f