we have bruce kasman of jpmorgan .t and the debate we have been having over the last several months, this burgeoning u.s. deficit. they suggest we could see a 7%.or 5%, 6%, we have shown this chart many times. and given ao gdp clumsiness in washington, the path could migrate to a real concern. do you share that concern? bruce: we are not so optimistic we will get big tax cuts, but if we put that on the table and combine it with the fact that if you look at the deficit chart and you would align it for where a are in the cycle, to have 4% of gdp deficit is pretty unprecedented. that is the issue. we have a high structural deficit. we are considering providing stimulus to an economy at full employment. overlarry summers livid the comments of the chairman of the council of economic advisers, it is just like it was back in the 1980's. our deficit or debt level is nowhere near what it was with reagan or other presidents. now we have much more debt, don't we? bruce: and the tax cut we got in the early 1980's happened when the

. >> bruce kasman, chief economist at j.p. morgan.tart,e falling back one quarter of 1%. ♪ ♪ scene here in hong kong. premarket had lower. permission to feel the beast. a slight climb taking place in wall street. some levels not seen since 1996. it is earnings seasons in the u.s. everything from financials to coca-cola mcdonald's, among them. iscourse, the other thing any confirmation of what the nominee is going to be. >> markets wait to learn and resuming losses for a third day. in the current space, we have the yuan rising with other asian currencies, this even as it directs lower. by.onshore rate is signed when it comes to the dollar store it, dollar positives have been price and ahead of the review. the impact of meeting likely to be limited. i just want to highlight the hong kong dollar. i want to take a closer look at hong kong. you have financials and pictures the biggest drag. banks very much in focus in taking a look at some rumors in hong kong, china rising on plans to sell its product. over 15% dropping after a profit warn

david: that was jpmorgan chief global economist bruce kasman discussing japan in an exclusive interviewthe epicenter of financial conversation this week had to be at a conference hosted by the kingdom of saudi arabia. some of them sat down with interviews with bloomberg television. >> there are some european challenges which require european responses, like migration, security, growth, and jobs. there are national responses, which are insufficient. we need to integrate them with a higher policy. yousef: so there is more work that needs to be done to slow down the trend we are seeing? for further autonomy. these are structural problems. >> these are structural problems and there was a window of opportunity to do with them because the european economy is growing at a healthy rate, and there is lots of job creation. but this is not enough. we must reform our institutions and make them more flexible. yousef: let's talk about the italian economy. growth projections for the share are at 1.5%. is there any chance we could see upside to that growth? could it be stronger? >> it could be stronger