powers to change the politics in their freedom because the old economy let's say the old economy favors the old influential groups and they always of the unintentional wisdoms apply to russia all the time anyway not what's what what's what's what's not believable to russia of the the group or to lawyers a political way away where this was the will not be won because i think russia is a pretty outis and credit country and them both in terms of its values both in terms of its development it has the elements. sometimes contradictory elements that other countries don't i don't recognise them in a great picture of course of course every country has its specifics that but if you look at russia in terms of the broad economy or science you would see or through the pentagon cantor which is is this been drawn or sort of the country and the sort of change but not the dependency a country of big totals of the population of the country which experiences that claim power or. all the laws are pretty much a political if you look at our neighbors in terms of per capita. or all point capacitors you will

how you perceive the economy. another reflection of the red state/blue state phenomena, that people red staters are much more optimistic that those in the blue states. >> well i think you know, scott talked about talking the economy up. i think there's one thing i learned as a speech writer in the white house it's that actions speak louder than words. if you look at democrats right now, there's a real fear. people remember what it was like in the bush years when we passed huge irresponsible tax cuts. we were promised growth forever. instead we got a recession and now we're looking at more huge irresponsible tax cuts. some of the pessimism that i think a lot of my fellow democrats feel is not about the state of the economy today. it's about passing a tax bill just as one example, that even "forbes" magazine said could lead to an economic crisis. that does make people more pessimistic. and frankly, i think it should. >> scott, react to that. >> well, the thing with the economy is that for most people, the economy is

but if you ask the american economy, are your finances looking up or down? think that will matter. right now if you look at what president trump is doing, whether, for example, the other day when he suggested that americans should vote for a child molester because he would like to cut taxes for corporations and his own family, americans are going to think about that as well. that's going to matter too. the economy will be part of it, but not the only part. >> react to my question, scott, as to whether carvelle's words are now passe? >> i think they're still valid, but there's a timing issue. so, the first year that everybody gets to say, well, it was really the last president. by the fourth year, it gets harder and harder to say that. if things are still popping at the end, i think you'll see the president's approval go up a little. but there really is a cap in this place, because people are talking about it. the economy is probably not as dominant, if there's a war, people are going to look at personality which is probably the biggest variable and approval.

these incentives have stimulated the economy and reduced unemployment but it has serious burden on the budget deficit if turkish economy loses its anka the fiscal discipline the growth rate. next year but there are some concerns at the impact the makeup project could have on the budget this is the third bridge that connects europe and asia it was designed to reduce the traffic congestion in a stumble and why the link between two other made up projects the so do you port and the canal but because the tolls are expensive many drivers still choose the crowded but cheaper routes and all john owns a coffee house in a stumble suburb he worries that if the new impress structure doesn't generate enough income then the government will have to find funds to pay the companies that built them. if. we are citizen whole pay their taxes regularly i don't even have a. law is that i have to pay for the cars which don't cross the bridge. so there are many domestic and international conflicts that could come into play for turkey but for the moment it's trying to stick with strong economic indicators whet

where is the economy? as you go out today, 80 you will be one of the many who pick up a flatscreen tv. streetalks, the wall tunnel joined at the hip nafta and cheap tv's. one of the biggest casualties of the trade scuffle between mexico and the u.s. is one of the most consumer products, a cheap flat-panel television set. every year, consumers by more than 40 million tv's and they are assembled in mexico. just to give you a graphic of the spike in television set sales under nafta, the decline in price first of all of a 55 underv up near $6,000 now $1000 in many cases in 2017. the market share is rising as well. your views on the economy. if you are optimistic, (202) 748-8000. if you are pessimistic (202) 784-8001. this is part of the conversation on trade, on tax reform when the senate returns next week. this is the front page of the new york times. will a tax cut raise wages? some doubt it. just a snapshot of the labor department where things stand in terms of workers in the u.s. as we talk to the economy.

but is it the right medicine for the economy? indonesian officials issue a stark warning to airlines over the eruption of mount agung in bali. we'll be live to get the latest from our asia business hub. and it's cyber monday today — a big day for retailers across the globe, but the share markets in asia today are failing to catch the wave. we'll talk you through the movers and shakers. let's get started with the plans of the british government to unveil a new industrial strategy later today with the aim of kicks darting the economy in the run—up to brexit. —— kickstarting. it will focus on major sectors the government thinks the country is good at, but needs more investment. it will look at boosting life sciences like pharmaceuticals. the government says it's already secured investment of up to 1 billion pounds by the drugs company msd, known as merck in the us. advance manufacturing, like 3—d printing, will also come in for special attention, as will britain's creative industries such as movie and tv production. nuclear power wil

out of touch from the economy. erviewed, he told us that the uk economy is fundamentally strong. two hours later he must have ignored his own office for budget responsibilities advice. two hours later the institute for fiscal studies presented their report. and confirmed what the obs had said. wages stagnant. for at least a decade. more likely two decades. as tom said, the longest recession in wages since the napoleonic wars. and the prospect exactly as we said in the prospect exactly as we said in the obs and the debate, and the iss. first of all that economic growth down and little prospect of it lifting. productivity in a crisis. asa lifting. productivity in a crisis. as a result of that no wonder wages are down, because productivity means you can earn the wages we need. in france and germany, they produce in four days what we produce in five. not because british workers are any less hard—working, quite the reverse, british workers are working longer hours. they haven't been given the tools, the equipment and the

the view of the economy the old world was that the economy is generally closed. meaning not open to trade. and the amount of capitol in the economy is fixed. so if you're a taxing capitol, if you own it, you bare the brunt of tax. owner that is doesn't matter. it's a fixed thing. that's not how the economy works today. it's much more open than 40 or 50 years ago. there isn't a limited supply of kalal in the united states. there's an infinite amount of capital. not literally. we know when business tupt opportunities are good in one country. ireland or malaysia or where ever. or mexico or canada. people take their money and go to that place. they build factories there. they hire workers. and that's not the united states today. so td principle behind corporate tax reform is it will bring activity here. the second thing is it will bring reported profit here as well. and we are in a very dynamic global economy. we haven't closed off the economy yet to the rest of the world. we threaten to. we have an open economy. and we when a corporate tax rate change dramatically we

give us your perspective on the economy. covering very mildly over the past year or so. there has been a bounceback in agricultural production. there has been a rebound in metals prices well, helping exports. but the real achilles heel is the currency and crash crisis, which, as was mentioned there, is really pushing us back into inflation again, and it means the economy is still starved of cash, inhibiting businesses' ability to function. and he will point the finger, don't they, at the policies of president mugabe as the reason that it of president mugabe as the reason thatitis of president mugabe as the reason that it is floundering so much. yes. i think what is significant, in addition to the firing last week, that the vice president, who might return to power, now, is actually the firing of the relatively moderate finance minister about a month ago. he had been leading reforms. they were happy to stabilise the economy and re—engage zimbabwe with lenders like the imf and world bank, which zimbabwe has not been able to acc

the state of the economy is mixed. for policymakers i believe there are other trends we must address in the decades to come and see the type of growth necessary. it is of the utmost important congress rejects the idea that it limiting investment in basic science and research has no consequences. it has significant consequences. a like of funding research that will lead to the next generation of great american breakthroughs will have a devastating impact on the economy. i promise our competitors putting china will not simply stand still and see the including china will not simply stand still and see the competitive advantage in innovation. second, we must reverse an alarming trend of declining new business formation. new businesses are the driver of our economy and are responsible for most new job creation in the united states. but alarmingly, we are not seeing the numbers of new businesses needed to increase the shared prosperity across the economic spectrum at especially in the urban rural divide. new business formatio

the trading floor. in frankfurt thank you. germany's economy is in an exceptionally good place it seems according to the annual report of the country's so-called sages of the economy that's an advisory panel to the government germany's in the midst of a strong upsurge the experts forecast growth of two percent for the current year and as much as two point two percent for twenty eighteen that translates into quite decent tax revenues and some financial leeway which say the wise men could be wisely spent on tax cuts and reducing government expenses they also recommend the government invest in education and research as well as in germany's crumbling infrastructure that means improving roads and speeding up internet access for example which is an international embarrassment in most parts of the country well wise words from the wise men and one woman one of whom now joins us as luck would have it last felt as an economist at the university of auckland joins us now from our parliamentary studios mr felt the economy is humming along nicely the finance

is in very good shape according to the n o annual report of the so-called sages of the economy that's an advisory panel to the government but last felt an economist and member of the panel wants the german economy could be on the road to overheating. but what we currently see is that we are running above capacity in a term economy if you have counter-cyclical economic policies this would finally trigger stronger price increases as we currently see the forecast inflationary to be at about one point eight percent next year core inflation would even be higher by one point nine percent so we are coming very close to the two percent target and additional public spending in areas where the economy is already of our capacity would only increase prices for the last felt that our finance correspondent daniel cope has been following this story as well down the german inflation just nearing the two percent target and economists already warning the economy could of the heat is that a bit of german speaking there. well you know right germans are known for being very precautionary and also s

, help move the economy forward. but it's part of the reform bill, yes, it is, and we're proud of that and we also again, provide some of that tax relief on the business side to help small businesses. these are the so-called pass-through companies, 90% of americans don't pay taxes as companies, they're not corporations in that sense they pay taxes through their individual tax return. they are he a called pass-through companies. some call them llc or subchapter s or sole proprietorshi proprietorships. these tend to be family owned, and they need help, too. the proposal does provide significant relief for small businesses. and that's, in the house proposal and the senate proposal, it's hundreds of billions of dollars out of that 1.5 trillion dollar tax relief. we think that's appropriate. and then finally, again, on the business side, it's to help make these companies competitive. they get that rate down so that they can attract investment into america rather than having that investment in jobs going out of america, whi

an upbeat chancellor delivers his budget but against the backdrop of a slowing economy. philip hammond made some eye—catching give—aways despite productivity being down and growth forecasts reduced. a britain we can be proud of, a country fit for the future. i know we will not build it overnight, but in this budget today we will lay the foundations. they call this a budget fit for the future. the reality is, this is a government no longer fit for office. stamp duty for first—time buyers on properties up to £300,000 will be scrapped except in scotland — experts are warning it could put house prices up. we'll bring you all the details of the budget and who are the winners and losers. also tonight: shouting. mr mladic, sit. guilty of genocide — the ex—bosnian serb commander behind europe's worst single atrocity since world war ii. cheering music plays and the next president of zimbabwe, emmerson mnangagwa, is back in the country and will be sworn in on friday. and coming up on sportsday on bbc news: countdown to midnight — the ashes series gets underway. england captainjoe r

critically, not hurting the economy at the same time.stand? how stressful will it be for the economy and rest of the world? >> it certainly seems like they're taking it quite seriously. one of the criticisms of china has been a lot of rhetoric, but no action. now, we see these recent string of warnings. there is debt in the economy -- a warning of debt in the economy. they seem to be taking steps. what they did last week for asset managers in terms of the crackdown there -- the days of lending to companies and other parts of the economies will be reined in. china has contributed more than one third of global growth this year. it's a vital called. economicsits own instability. that's obvious for the rest of the world, given it's one of the biggest trading nations. that's something that's a fine line. >> thank you so much. let's get back to christian guest fromor other asset management -- and our other guest from asset management. >> the chinese economy -- chinese economy is lee -- weakening. think there is not much surprise to this. peopl

that could impact the economy. think this probe could last and when will the royal commission released the findings? -- royal commission release. the government has given them a year. that is plenty of time. we will know in 12 months what the recommendations are it is going to make. it will all trickle out over the course of that period. anytime the banks try to rally too far there will be another news story to put them back. 365 days for the enquiry. this could hurt the share price and valuations of the banks. could this at the australian economy? yeah, confidence is important in any economy. confidence has been undermined in the banks through their scandals in the banks through their scandals in the past two years. the owners of the past two years. the owners of the banks will hope this draws a line under the lack of confidence that was starting to build. to that extent, yes, it could hurt the economy. but when we look at things, the global economy and our economy is doing well, so on balance, i don't think it wil

sure we empower middle class families to be the engine of growth in this economy, which we know. host: senator peters, you serve committee, security your thoughts on north korea and what faces the united states of recent y in light test of their? guest: it is obviously very troubling what is happening, is definitely on path to be able to create a missile that will reach the homeland, which is unacceptable. we can't tolerate that. hat we need to do is have a full diplomatic effort to stop north korea and that means ngaging the chinese more, the chinese have made some positive moves to do that. to do more, the trump administration needs to engage diplomatic effort and quite president trump has to stop crazy tweets that he puts out, that does not help the situation. he needs to be an adult, he needs to be the ommander-in-chief of the world's most powerful military and act like it, that means diplomacy. host: what deterrent should we ave should a missile be launched at the united states? guest: we have missile defense ystems in place, i'm currently co-sponsor on bill and working for l

i think the economy really needs it. if you want to deliver for the american people, they need the growth that gives them more choices of jobs, fatter paychecks, and all sorts of opportunities. what republicans needed as everybody pointed out, they flopped on obamacare and they're going to go into these races next year if they don't have this delivered. it's a big problem for them. >> melissa: they can only lose two in the senate and they lose out some hopefuls of surprise but they could get. do you think joe manchin is really one of those? he is listed as may be. because i hate to say yes, that there possibility because in the end, i think the democrats so frequently disappoint, they don't come around to what they know is right. i think if we got 51 or we got all 52, then we might see some democrats climb on board. >> melissa: interesting. >> is going to be very difficult for a democrat to be the vote to pass that. i think in his or her own party, that would be a really difficult position to be in. >> melissa: one of the

this is a key component of the efforts that is growing the economy and the best thing we can possibly do to get this economy growing faster is tax reform and tax cuts. >> after meeting with the president, the president is all in. you look back over the course of the last 10 months, has there been a moment where the president set you back? >> the house passed the bill and the president supported it and the senate went in a different direction. what we labor to do this time around on tax reform is get the three of us working on this project. since the beginning of the summer, you had the white house, senate and the house working together hand in hand to put together the tax framework and the bill we released from the ways and means committee are working together. we got on and stayed on the same page between the house and senate and the white house. this effort is different than others. traditionally with legislation, the house and senate do their thing and they get it to the president's desk and he signs it. make sure we remove disagreement and get on the same page. >> they called the

and it turns out there's a huge sector in the economy. in fact, retail sales, final sales, is only 20% of employment. most people are employed in the manufacturing stage, and the wholesale stage, in the mining stages and so forth. so gross output is my measure, i wrote a book called the structure production in 1990. it's an academic book. >> host: recently updated. >> guest: third edition. the bureau of economics analysis which is part of the commerce department on the one to put up quarterly gdp statistics. in 2014 i think under, i would like to see i had some influence present now decided to publish gross output on a quarterly basis just like gdp. i kind of look at as topline and bottom-line, and in accounting if you've taken an accounting course or if you're familiar with finance and wall street, when a publicly traded company comes out with earnings, its earnings report, there's a topline and their bottom line. the topline is total total sales, revenue and the bottom line is profits or earnings. every publicly traded company and they r

the one year anniversary of the withdrawal of the notes have accused the government of harming the economy india's unemployment has risen over the past year the government says replacing the currency has been a success but some strongly disagree. yes but today we want to observe a black day we want to tell noting that people have objected to monetise ation and that his decision was a wrong one and this was done to make the poor suffered from the coffers of the rich devorah thais nation was only to benefit the rich who had cashed in their money already only the poor were left studying in queues to exchange work this currency bonus. because of the steam monetization of the state of the country is that everywhere farmers are committing suicide and farmers don't have enough money for two meals a day when the government announced a sudden decision last year residents had two months to turn in all their five hundred and one thousand rupee notes before they became invalid and of course in a country with over a billion people that created some problems like these long lines at banks and a.t.m.'s a

>> absolutely, people are happy that the economy is picking up speed. on the russia thing is more fake collusion than actual collusion despite the hearings and accusations and people want to turn that off. they know that vladimir putin is a bad guy trying to upset our political system here and they get that and know he used propaganda online, on the cable stations and the like, but, they're focused-- americans are focused on, times are getting a bit better. david: they are indeed. and david, even a democratic pollster like peter hart, he had a focus group recently and talked to a lot of clinton supporters who were condemning trump on everything except the economy. they did give president trump credit for a growing economy. >> well, i think that we have a new normal, wouldn't you say? in that we have the first time, a president with a strong economy inherited, i might add, with the lowest historical modern day poll numbers. there's a disconnect there in that not enough people are giving them enough credit to give him overwelcoming or a majority, if you wi

the economy in general in the u.s. globally is doing well, i think they will be some willingness to look past the flatness of the curve. jonathan: joining us is lisa abramowicz, rob waldner, and joining us in a moment is alan higgins from london. i want to begin with lisa. look at the chart we have been talking about from some weeks. pick your place on the curve. 60 basis points. how much signal is in that? lisa: a lot of people will say this time is different. this does not indicate a slowing of the economy but rather a fed that is saying this is typical. that said, bloomberg intelligence noted this is pricing in a policy error. right now this is saying a long-term economy is not accelerating. end of story. period. the more the fed hikes, the more it will slow down and you see the flattening continue. that is not a bullish sign for the economy long-term. jonathan: rob, do you agree with that statement? do you see something different? rob: we see a different situation when it comes to the yield curve. the front and of

year and you every would see the debt as percentage of the economy gohat is something we could do long-term planning to achieve. tax reform should be an opportunity to do that and we are actually going the other direction. to growings turn income and wealth disparity in this country and what it's doing to the economy. i think sitting back and looking at the democrats and republicans, democrats want to tax the rich and give it to the poor. the republicans just want to grow it all. are those the two options and where's the preferred route? the preferred route is to diagnose what's wrong with the economy right now. i think it's been a lack of public investment in things like infrastructure and an ideal opportunity to do a large-scale infrastructure program. have 40 democrats and 41 public and's it went to the floor of the house it would pass. we need to start creating some of the incentives to make economic growth viable that says if americans have appreciated stock and they sell them they can to further capital gains for 10 years if they invest the procee

i take the view that the u.s. economys up love -- is above full employment because of all these people who've left the labor force. the crucial answer, if you look at 4.2% unemployment come in the we've always seen large amounts of wage growth going on. that's a big debate between economists whether we should read the unemployment rate or the employment rate. the employment rate gives you an of -- a poor steer. there is room for stimulus despite the fact that people worry about inflation. power in thebout world when it was lots of inflation. our problem is we cannot create inflation, wage growth. you have to have an explanation for that. we are a long way from full employment. alix: danny is dovish. is that weird? blanchflower and peter schaffrik. we will break it down with our guests next, this is bloomberg. ♪ jonathan: shifting rhetoric from the bank of england. the pound remains little changed . why the expected the central bank will raise the benchmark rate for the first time in over the decade. peter schaffrik, still

what he is talking about is the economy grew 1.4% in the past quarter compared to last year.t's the second quarter of growth, the longest run since the beginning of the century. you have to go back to 1999 to 2001 for the last time that happened and it's all about exports. 0ne economist i spoke to say they are the gorilla in the room and they are the gorilla in the room and they are offsetting what has been weak demand at home, especially when it comes to consumption. the japanese consumer isjust comes to consumption. the japanese consumer is just not along the ride for this recovery. while that remains flat, that's going to be a problem moving forward because basically everyone has a job in japan and if they're not spending now, when are they going to spend? matt, thanks very much, ending this edition of asia business report. thanks very much for that watching. —— thanks very much for that watching. the top stories this hour: loud explosions have been heard in the zimbabwean capital, where soldiers are reported to have ta ken over the headquarters of the state broadcaster. a

the idea behind that cut was again to support the economy. cks after we voted to leave the eu. since then, we've seen price rises getting bigger and it's one of the jobs of the bank of england to makes sure those rises, inflation, doesn't get out of hand. which is why some think today is the day for them to act. since the eu referendum the pound has dropped around 15%. that means if you are buying goods from abroad, things like cheese, or olives, they've gone up about 10%. that has pushed inflation to 3%. we just haven't gone up —— wages haven't gone up by the same rate. the bank of england wants to get the inflation rate back to its target of 296. inflation rate back to its target of 2%. one way of doing that is to increase rates. there are nine members of this rate setting committee, eight men and one woman, and last time round two voted for an increase but seven of them, including the governor of the bank mark carney, went for no change. in order to keep it at a sustainable manner, there may be some adjustments to the rate in the coming mon

growing strong the german economy continues its expansion over the last quarter now what's the growth based on and can the stellar performance last we talked to the president of the center for european economic research. also coming up more bad news for better is the way our ratings agency standard some pause has declared the latin american nation to be in selective default. and the people world cup twenty eighteen is drawing near a time for russia to spend heavily to ready moscow for the tournament. welcome to do business while things just couldn't be better for germany interest rates are low consumer confidence is high and the economy is growing and growing it's been that way for the past eight years and the third quarter of this year talked that germany's economy grew no two point eight percent over the quarter before much more than analysts had expected now that's down to booming exports the made in germany brand is in demand worldwide and popular with european neighbors again as well now finally and time coming in. vestments are also growing fast of the important machine building

the economy is doing really great. en you come back, you're going to see with the jobs and companies coming back into our country and the stock market just hit a record high. unemployment is the lowest it's been in 17 years. so you're fighting for something real. you're fighting for something good. a lot of things have happened with our country over the last very short period of time. and they're really good. they're really good. i especially like saying companies are starting to come back. now we're working on tax cuts, big fat beautiful tax cuts. and hopefully we'll get that and then you're going to really see things happen. >> kelly, are these prepared remarks on behalf of the president? i'm not sure why the strong stock market performance would be a message you would send to our troops overseas. and, you know, saying you're going to be coming home to something real good. what exactly is he referring to that would impact soldiers? >> well, i think there were some notes if not prepared remarks for the president to ref

most of the uk economy is not like this. economy where workers are more likely to drive white vans than wear white coats. most people work in what sometimes we call the everyday economy — shops, care homes, public services as well and we think in order to boost their earning power, which is what the secretary of state said he wanted to do, we need a strategy that takes them into account. government intervention in industry has a chequered history with memories of money poured into failing companies like british leyla nd. the labour party supports government intervention and doesn't think the conservatives are intervening enough. it seems to be a repackaging of existing policies and commitment and it doesn't go to the extent we would have liked it to, to really rebuild our economy and give businesses the support they need. will the plan work? of the two companies who announced investments today, one told the bbc it would have done it with or without the strategy and the second said it hadn't finalised the size of its investmen

the economy is booming. w it doesn't work. this is an opportunity for conservatives and free marketers and everybody to cares about entrepreneurship and capitalism know works. david: do the democrats lose the mid-terms and lose the 2020 election. are the democrats snuck this left-wing rut for decades? >> i don't know about decades. but i agree bernie is the face of the party, maybe elizabeth warren. what a duo that is. i believe in america. america will reject that time after time after time. david: you combine this with the scandals. you combine it with uranium one and what she may have gone the dnc finances. they don't have much to roll with now. >> what they have to count on is the media. you started this segment talking about how the media isn't talking about it. the mainstream media is not going to report any of this. david: that's it for us tonight. please join me tomorrow morning, 10:00 a.m. eastern time to noon. the cost of freedom live on fox news channel. we hope >> after years of scouring the ocean

the euro zone economy charges -- despite uncertainty. chinese stock struck the most and -- in that 17 months, a deleveraging campaign continues. the top stories, let's begin with market action. .olumes set to be thin in europe, equities treading water. price action muted. story for equities debt flat for euro-dollar, further up the back. pmi, 11845 ison how we trade. treasuries closed, bunds are trading but remain unchanged. a small yield on a german ten-year. but get you up to speed on top stories. is taylor riggs. federal reserve policymakers signaling there will likely be an increase next month. their most recent meeting shows that officials are looking for stronger science of their rights. want people want to see inflation on an upward path before another rate hike. tomorrow, zimbabwe gets the first -- their first new president for a few decades. -- the the new could country as a democracy. he had fled after being president bite fired -- fired by president robert who got a, who will not face prosecution. in the u.k., conservative part

you could probably say the u.s. economys and trends that have contributed to that can feel relatively satisfied. i would not want to shoot it home to anyone individual. david: what is the long-term growth potential for the united states government? how much of this is correcting disappointing gdp growth earlier in the year? krishna: absolutely. it does not surprise me a bit. the data that i'm focusing on is the softness in consumption. suretments is coming back, , that helps. but the softness in consumption is an issue that we will have to deal with in the second half of next year because that is 70% of the economy. savings rates have already gone down. unless you see meaningful , overallin income consumption patterns may flatten out and that may take the bloom off a little bit. we will grow north of 2%, but the likelihood that in 2018 it is going to be 3%, i don't think that is going to be the case. alix: hang on. consumer spending is sequentially slower, but it is not like 1% or anything. durable goods, 8%. those are soli

let's look at those prospects for the economy. conomic growth would be 2% this year and then fall back a little and recover back to 2% by 2021. today a pretty aggressive cut to that forecast, just 1.5% growth, and remaining pretty much around that level until 2021. that's the lowest set of economic forecasts since the early 1980s. then there's the productivity issue. the amount we produce per hour and the key to increasing the wealth of the economy and our wages. let's go back to that march forecast again. this line shows the hoped—for improvement. but it hasn't happened. and now the amount productivity increases will add to the economy has been downgraded, meaning less growth and lower tax receipts for the government. and that means it has less money to spend on public services. productivity is just the biggest problem that the uk faces alongside the brexit challenge. the investment that we're seeing today in skills, infrastructure, innovation is the way to do it. if we get it right we can grow our way out of austerity. the key to

so instead of the entire economy, how about you as an american citizen, the size of the economy as you because as a participant in the economy this has something to do with what you're paid, your ability on your lifestyle, the things you can own, the things you can do for your family. the difference between a 2% and let's just jump up to 4%, and the number of years you start to realize the difference between 7 years or 35 years. this is about every one of us as an individual in this country that if we can adopt tax policy, that's good for families, good for the middle class but also makes us competitive in the world again. we start to grow, good things happen. do you do a tax code that's great politics or really good economics? some of the math is hard. we live in a society right now where if you can look at the far left side of this chart, the top 20% of our society, of our income earners, the top 20% of income earners, are paying 88% of the federal income taxes. so you start to understand, if i came to you right now as a simple math problem, hey, i got 20% of these very high income e

we will talkit's definitely havt on the economy. bond market next. is is bloomberg. ♪ >> this is bloomberg daybreak. i'm emma chandra. spending on hurricane recovery -- growth at home depot. the cleanup and rebuilding efforts in the wake of hurricanes in august and september. home depot sales rose almost 8% beating estimates. profit was up more than expected. billionaire activist investor pulsing or is targeting mall owners. elliott management has taken a stake in taubman and plans to push for changes. they say elliott has had talks is -- and is exploring going private. google is facing another antitrust lawsuit in missouri. the attorney general is investigating whether google manipulated search results to favor its own results over competitors. that's your bloomberg business flash. jonathan: in the bond market, a after calm in high-yield more than two billion dollars in outflows. still with us around the table, anastasia amoroso. we can bring back this chart on the bloomberg terminal. high-yield credit versus the s&p 500. the s&p looking really resil