that literally choked the economy. and as a result of the policies being so different than the policies we'd followed before during other postwar recoveries, the net result was very low economic growth. in fact, i don't think it's an overstatement to say that as our government came to look more like a european government, our economy performed more like a european economy. now, let me just give you a contrast to that. the two policies in postwar america that are the most distinct are the obama policy on one hand, and the reagan policy on the other. and it is i don't think a coincidence that the performance of the economy following those policy implementations represent the high and the low of america's postwar economic performance in terms of economic growth and achievement. when reagan took office, we were coming off a slower period of economic growth, 2.5% in the late 1970s. the inflation rate was 13.5%. prime interest rates had peaked at 18.9%. and there was a general discussion in america, serious discussion about

but what's your sense of the economy. a lot of people are wondering and questioning whether this is strong enough to see a spring of interest rate hikes, and will the fed stomp out the growth just as it's gaining traction? been report recovery has been been are been: the recovery has been pretty consistent. maria: how would you characterize the economy. i feel like the auto industry polling over in the first quarter. what are you have seeing? ben: what the fed is looking at is the fundamentals for consumption. housing is up, unemployment down, consumer confidence is good. all those things indicate the consumer will be okay. that's a big part of the story about why the fed thinks the recovery will continue and they want to continue the tightening process. maria: would you say it's more the business side of the economy pressured the lasteveral years other consumer? i feel the business sector has been sitting on cash for quite some time. ben: a disappointing aspect has been capital investment. to the extent that businesses a

and we want to start with our economy.my is some remote machine, purring away in the background as we get on with our lives. following the global financial crisis, millions of britain no passion that britain know only too well what the economy is capable of. it can strip you of your livelihood, trap you in debt, rob you of your hopes and dreams that define who you actually are. lest we forget when the global financial crisis hit, money literally dried up. it meant businesses folding or stop investing. jobs were lost. families across the country saw real pay fall more than any time since the industrial revolution. that is old news. what am i moaning about? we are told the economy has recovered and unemployment is at an all—time low and we are told all the difficult decisions like cutting public services and corporate taxes are finally bearing fruit. we are told all of that has made our economy strong. it does not feel like that, does it? jeremy said last week, across our country, in the high street and on the doorstep, some

the economy lindsey is living in is very different than the economy your parents lived in. . i would argue the period from 1945 to 1975 was an anomaly in american history resulting from the fact that unit states and the only productive labor force in the world. that fundamentally changed in germany and japan had rebuilt, and when china enter the marketplace. that is point one. if you look at the manufacturing economy, the united states has never in its history manufactured more than we do today. 1980, weared to manufacture two times more than we did at that point. we are the second largest manufacturing company in the world. we are second only to china. china has four times as many people. on a per capita basis, we manufacture far more than china does. but we only employee 2/3 of the number of people today to do it than we did 30 years ago. it is about the fundamental change in the nature of employing in the manufacturing economy. one of the best examples, the industry that has had the highest increase in productivity is mining. one of the reasons why the jobs aren't coming b

macroi economy in need of powers. —— ? ? and access to finance. we are like that in the uk we have all of these and what we are doing is exporting expertise in these fields to iran. last year, during the visit of the iranian energy minister to london, we signed a framework agreement to invest in one gigawatt of solar assets in iran, are proximally 1.5 billion dollars. thank proximally1.5 billion dollars. thank you very much. —— apprimately. in other news: london—based virtual reality firm improbable has raised $500 million in one of the biggest ever investments in an early—stage european technology business. japan‘s softbank is backing the company, which builds large—scale virtual worlds and simulations, in a funding round that values the business at more than $1bn. improbable was founded just five years ago by herman narula and rob whitehead, who had studied computer science together at cambridge university. shares in macy‘s have plunged after the us department store owner said quarterly sales slid 7.5%. macys lost around 1

contrasting fortunes for the old economy and new economy stocks. creating significant divergence between two main offshore gauges, the msci china inkjet -- index and the hang seng. thank you for joining us. tell us what's going on. this, which up exemplifies what's going on. is at themsci china most in a long time, about 15 years. part of that is driven by msci china outperforming this year, driven a lot by the tech share rally like alibaba and tencent. that, we have seen jitters on the mainland as authorities stepped up or cramped down on financial leverage, which has impacted h sears. rishaad: let's have a look at this. rishaad:we are having a look at the premium that the msci shares shares,r h sears -- h the most since 2002. sharesr: it does show h are relatively cheap, but the question is whether it will remain cheap. many say the gap is permanent, unless something dramatically changes. we are also having a shift from the old economy into the new economy in china. investors say it's only natural for this gap to remain going forward. this calls

we get that with a strong economy. only yesterday we saw we had finally emerged from labor's economic crash. what we now see, what we now see is a labor party that will do it again. crash the economy, more waste, higher taxes, huge jobs. >> other questions, i say this. and several, mister speaker. witnessed the labor of the national health service, and for the many, not just a few, wrote to me this week and she said this. i am 88, had a wonderful service from the national health service, but nowadays i am scared of going into hospitals. with people waiting four hours, more people waiting on trolleys and core doors, more discharges, thanks to the tory cuts, civil, right to be frightened about a future nhs along with this gov office?remains in >> can i just say to the right honorable gentlemen our national health service is treating more patients than it ever has before, more people planning operations, more doctors and nurses, more gps and record levels of funding into the national health service. the only possible with

economy. now, we have been told it is -- it is the world's largest economy. anybody reading vanity fair in the summer of 2015, there was an article by joseph stiglitz, called "the chinese century," where he said china just surpassed the united states as economy. how could we not feel existential angst? how could you whether you voted for trump are not somehow feel a yearning that the best days of america are behind us and we should somehow try to make ourselves great again question mark china is the thematic ground to this desire. doeso we get this, where joseph stiglitz say china is the world's number one economy? it is based on a number, all the stuff is based on numbers and this is why it is difficult to get this across in sound lights and bumper stickers but it is important. economies are sized and compared today using a number called gross to mastic product. developed in a time of fdr. developed astric they were trying to get their arms around the economic recovery, to figure out how much

that could be a sign of issues with the economy. overall, in terms of payroll growth, that appears to be a trend we will probably see for the coming months. from doug is calling connecticut. he is employed. caller: i had a comment about our unemployment rate getting so that employers are going to start having trouble finding qualified employees. host: what guest: do you think about that? guest: it is an interesting point. we do have low unemployment, but we also have labor force participation that has declined this last months. we have not really seen an increase in that in the less year or so here it i think that would indicate that there is still some slack in the labor market and that there is still some possibility of employers still looking for workers to fill these jobs and workers still looking for jobs to fill. about there talking latest jobs report. we are taking your calls. if you are employed, call 202-748-8000. if you are unemployed and still looking for a job, call 202-748-8001. if you are unemployed and have stopped lo

>> the new economy you mentioned is the internet economy.s, but at the same time brought about unemployment. it has forced a lot of brick and mortar retailers to close down. i notice in the u.s., the retail sales sector has also been affected. i think the internet, e-commerce, is a platform. it provides convenience to consumers. but some of its practices are not right. they are unfair competition. for instance, some of those in the industry are burning money in exchange for more traffic. productd a profit -- a -- 80100 yuan for 81 yuan. if they stick to fair competition, i think it is fine, but the problem is they have improper means of competition. reporter: for someone who wants to take your tricks empire global, what do you think about the protectionist rhetoric that is writing and many parts of the world, including the u.s.? does this sentiment or the threat of punitive tariffs change how you might look at an acquisition, say, and the u.s.? there are rumors you have been looking at a dairy company in the united states. does it make you c

what will moonjae—in bring to the economy?alistic. i am not too sure if moonjae—in, with his pledges to create hundreds of thousands of jobs, working out of a civil servant office, will that really make a difference? can he really live up to these expectations that many voters have hung on him? he is facing a strong challenge, although he does have a clear lead right now. if the conservatives were to pull ahead and come ahead with it to read, we could expect to see very much the same in terms of business relations that we have seen for the past ten years. thank you for that. we will keep an eye on the outcome of that presidential election. much attention has been paid to the loss of manufacturing and heavy industryjobs in the us. but in the last few months alone, morejobs have been lost in retail than exist in the entire coal industry. despite years of steady recovery and a pick up in wages, us retailers are in dire straits. samira hussain reports on a crisis that can be seen from the boutiques of manhattan to the local mall.

the impact on the global economy and the european economy is unpredictable, so therefore we prepare foras much as we can. rishaad: you don't know what it is, that is the problem here, but industrial capability in britain? >> we don't have a production footprint there. rishaad: you sell into that. >> we do sell into britain 2% of revenues, so it should not be a major impact on our overall economic status. rishaad: why is your company called covestro? >> it is a bit of the hen and the egg problem. it is collaboration in investment and strong. covestro that is where comes from. rishaad: that is really tenuous. thank you indeed. , a combination of collaboration, investment, and strong. genius. thank you, frank. to watch, the stocks investors returning after that public holiday. that is next. this is bloomberg. ♪ haidi: i am haidi lun in sydney. this is "bloomberg markets: asia." rishaad: we're counting you down to the start of trading. the index in the pre-auction up a fraction. hang seng futures indicating a more pronounced rise, but not that much. shanghai, a pharmacy a making apparently

the german economy this year.hat is happening in europe so far. in percentage terms not much movement. this is france, merck on redefining the relationship between france and germany. we have the details on what has been going on in wall street. two bits of economic news, the consumer price index and retail sales. economists estimate that the cbi will increase by 0.2% in april after a fall of 0.3% in march. it seems it may be the same story for sales, the expectation is they will be up by 0.6% after falling by 0.2% in expectation is they will be up by 0.6% afterfalling by 0.2% in march. speaking of retail salesjcpenney will be reporting earnings. the company is looking to cut costs as sales continue to slide. they said backin sales continue to slide. they said back in february they would close 130-140 back in february they would close 130—140 underperforming stores over the next few months and they will offer volu nta ry the next few months and they will offer voluntary retirement for about 6000 employees. joining

the economy and prosperity have been among the key issues in what is the world's sixth biggest economyare the two visions that they're trying to sell? one of france's biggest problems is its unemployment rate remaining stubbornly high at 10%. so as far as emmanuel macron‘s is concerned, he plans to invest in training and partnerships, especially for the young. —— apprenticeships. and also by giving employers more flexiblitiy on the 35—hour working week. to bring down thejobless rate, marine le pen wants a tax on foreign workers so that french citizens get priority for newjobs but she says she won't tough the 35—hour working week. when it comes to tackling the high levels of public spending mr macron says he'll save $65 billion with various measures including not replacing 120,000 retiring government employees and big savings on unemployment insurance. ms le pen wants to cut public spending by leaving the euro, which she says would give france more flexibility to boost its economy. she says this will give france the freedom to boost its own economy. she also promises tax cuts for compan

>> absolutely, the economy is stuck in second gear. we know a better economy. the more you cut the more the economy prospers. what are we waiting for. david: we're glad the economy grew more jobs, but the auto sales figures are lousy. >> i don't know if that's a trend yet. but the problem is that, you know, donald has not got any near term fixes here. there were people on the program who said he should have gone after the tax cuts and there's even some bipartisan efforts and speaker pelosi for lower corporate rates or a lower payroll tax going to the middle class. david: i'm laughing. because frankly, i don't think the democrats are going to go along with any of this. >> right. david: but the economy is slowing down. the gdp figures were obviously, 0.7% for the first quarter. >> that's right, i think the atlanta fed revised higher, but you're right, it looks like auto sales not coming in as strong as expected. david: auto sales are down. >> what the president is facing is the swamp and he wanted to drain the swamp, the battle is the swamp winning? will he start

economy. this is a rare opportunity to do a net tax reform where you make it easier to pay your taxes. but i don't see the cost of a major tax cut except for corporations to be more competitive in the economy. >> let's talk about another rent that those -- wrench the republicans threw into the mix. if they finish tax cuts by august they could be retroactive. but if it happens later in the year, maybe not. is that a big deal making this tax cuts retroactive? >> i would say it's a medium deal. i would love for them to be retroactive. not getting done as jessica said would be catastrophe, not only for the economy, but for the republican party. i want to go back to the point jonas made. we don't need them. it's not a question of need. it's a question of how does the economy operate more effectively? it doesn't operate for effectively by the government at these large levels of government spending. the optd mall level is 20 to 25%. give me an example where tax cuts, cutting marginal tax rates don't

barack obama inherited a trey burke of an economy that was handed -- a train wreck of an economy thatd to him by george w. bush. $4 trillion lost, 12 million plus jobs gained under barack obama. we saw 4.0 rates of economic growth under the clinton administration, 20 million plus jobs created. have seen not just rhetoric coming from the democratic side of the aisle but actual results. we believe in american exceptionalism come a we believe we can find common ground to further stimulate the economy, but we have to find a partner on the other side of the aisle. david: i looked at how people voted in your district. there were not a lot of democratic voters that voted for president trump. they were disenfranchised and i felt they weren't getting what they needed from the government. how does the democratic party reach out to the voters who may have been traditionally democratic voters and thought they would try something different and get them back to the democratic party? >> we have policies designed to help out hard-working americans throughout the country in the rust belt states and ru

the indian economy will be at 7— 8%. we will reach that.ays it is "working round the clock" to reunite passengers with their bags but it will take some days to clear the backlog. many people have contacted ba on social media to complain they still do not have their luggage back. the airline is now operating a full flight schedule and its it systems are up and running after the systems failure over the weekend. thousands of flights were cancelled with 75,000 people affected. so, what kind of damage will this do to ba? with me isjohn strickland, aviation and airlines expert from jls consulting. sojohn, still so john, still thousands sojohn, still thousands of so john, still thousands of angry customers. what long—term damage could there be to ba, do you think? the airline will have two work to get the flying programme back into normality, as they are doing right 110w. normality, as they are doing right now. the baggage problem will be sold as you describe. but they are premium airline. they rely on premium airline. they rely on premium custom

economy right now?> there are a lot of risks out there, and the typical one i would highlight is factories outside the u.s. how is europe's economic recovery going? what happens in japan, asia more broadly? those have big effects in the u.s.. watching the developments in china, asia, europe, making sure we are seeing continued, good momentum. obviously in the united states there is a lot of uncertainty about tax policy, and others, how they will end up. that is something outside the fed's control. i just watch those developments, as everyone does. but those could clearly have an effect on the u.s. outlook over the next few years. 'd want greater clarity about those proposals, and that will be something i will incorporate. haslinda: you touch on china, saying it is what you are watching. are you concerned about the slowdown? >> some are concerned about the slowdown in china, because it's a ratcheting down of growth which is exactly what you should expect and should be looking for. en to six,rom to that's

they are the underpinning of our economy. that's why we have been so successful because we create such a good ecosystem. but if you tax them heavily, you are draining cash out of their coffers for them to invest in their business. maria: what secretary mnuchin was talking about was the potential for a 10% rate for repatriation. if you are talking about a company bringing trillions of dollars over here. that's got to be a big encouragement to bring the money back. >> we have to realize we are incredibly fortunate as an economy that we are the place the whole world goes to to look at as the beacon of great capitol markets and -- capital markets and a great economy. but we tax our companies more than any other country in the world. over time that will make it so we diminish our role in the global economy. all of these things are important. maria: we'll take a quick break. adena continues with us as she talks about her vision for the company. stay with us. >> announcer: adena friedman's nasdaq career began over 20 years ago. what

is the economy weak here? >> this slump is different than the last sulumps we've seen in the last five years. this is the week we're going to find out if that was a temporary slump. we think it's a temporary slump. we'll get manufacturing tomorrow. of course, friday, we'll get the april employment report. march was very weak, 98,000 jobs. we're expecting a big swing back from that, from 2005. we think all of the data from here on out will improve coming this spring. we felt that temporary factors held back growth in the first quarter. >> i have heard anecdotally from companies that they saw weaknesses in january and february. but things seemed to pick up a bit in march? >> things definitely picked up in march. i think the biggest things january and february was the delay of the tax refund. we have $55 billion behind in tax refunds. that's a lot of money considering the ordinary valuation in retail sales is about 4 billion a month. we started to see that go back up in spending. it was weak in the first quarter

in the manufacturing economy. what's the industry that's the highest increase during that time period? mining. one of the reasons why the jobs aren't coming back to west virginia is because mining has become so vastly more efficient than it was 35 years ago, it takes that many, many fewer people to do it. and it's also migrated from west virginia to the powder river basin in wyoming where it's more efficient and it's migrated from coal to natural gas. those are all fundamental changes that no kind of public policy is going to address. you layer on top of that this fundamental change in work that mayor garcetti talked about as a result of the technology revolution. we have to think different ways around the social compact we have for people who are of a working age. what jobs are going to do and what social supports we offer them so we can have fairness in our economy, independent of whether or not we have kind of manufacturing or blue collar jobs we need to create as a result of creating greater economic growth. i

economy, for the global economy.ok at your base case in terms of growth, rolling recessions, and the fed, have you constructed a portfolio on that? it sounds like you are buying treasuries and going back into utilities. >> i don't have a problem holding onto treasuries if you bought them right, but i think we will be in an environment where inflation will remain structurally hello for many years -- low for many years. i kind of look at the stock market has long good buy. the longer we can conclude this expansion will last, the longer the bull market will last, even though violation is no bargain. jonathan: you will be sticking with us. thank you for joining us. a check on headlines outside the business world. we can cross over now to emma chandra. emma: house republicans promising percent in years to repeal obamacare. today, they will get a chance to vote on their replacement plan. they say they have enough votes to approve the measure and send it on to the senate, even though there is some doubt about that. a new ad

that is highly unlikely given it is such a well—established economy and emerging economies have the advantagech indeed. interesting to get your perspective. let's stay with those concerns about president trump's trade policy. he has of course pledged to renegotiate the north american free trade agreement — or nafta, with neighbours mexico and canada. sharanjit leyl has been talking to ca nada's international trade minister. sharan — what has he been saying? well, he's been saying a lot with what's been crucial is where he has been visiting as well because just put it all in context, we know that president donald trump is called the north american trade deal a disaster that costs millions of us jobs, withdrawing from its entirely, it attem pts withdrawing from its entirely, it atte m pts to withdrawing from its entirely, it attempts to renegotiate —— renegotiate with canada and mexico don't go well. canada has been looking to asia to drum up business. the canadian trade minister has been visiting this region. he was in vietnam and singapore and south korea and japan but he says nafta is still

i have to start by asking what is going on with the economy.g surge in tourism and this is something that the exchange rate is being buffeted by. what is driving this? hit by oneis being positive after another. we have record growth in 40% increases in tourism last year. coming off a very big increases in the last two years. comes in an economy that in 2015, at full employment. we grew at 70 -- 7% last year. markets, labor market and the -- that is to be expected. kathleen: what is going on with the currency controls? iceland had a crisis years ago and you are on sound footing now. he started moving capital controls around october of last year. a couple of months ago -- in march you did the remainder of that and the currency is skyrocketing. surging 4% against the euro, 6.5% against the dollar. why did iceland do that? yogi: it was not a mistake. has not changed since we moved the controls. the bulk of the appreciation and that wasfore part of the problem really because the currency was appreciated because of strong foreign currency inflows bec

economy.onder who is having a tougher time. -- presented with a solar powered to lip. to lip. who has the toughest job right now? david owen: mario draghi. absolutely. they can't keep supporting the eurozone. they need the euro bond, the fiscal union, nobody within the eu really wants that. but mario draghi needs it. got numbers out of the eu saying that inflation is down and growth is up. does that make his job harder? david owen: they live in a world of small numbers. the inflation issue here is core inflation. and wage inflation, not picking up. they say they will not raise the rate until they finish doing qe. in a tight space. jonathan: david owen. thank you very much. coming up next, the governor of the bank of england. mark carney and his news conference. this is bloomberg. ♪ jonathan: from new york city and our viewers worldwide, the bank of england news conference is coming up shortly. this is how the markets are set up ahead of that. in the equity market, things are softer in the unit

economy. at the end of this week, the signatories at the tpp 11 ministerial meeting will be convened. i look forward to advances in the discussion. with regard to the united states last month vice president pence , and deputy prime minister held the first japan-u.s. economic dialogue and agreed to continue the consultation on the common strategy on trade and investment rules and issues. andonly shall we accelerate reinforce the flow of trade and investment between japan and the u.s., but we aspire to disseminate fair rules to act on the asia-pacific by japan and the u.s. at the helm. lastly, i will talk about the future going forward. you may be skeptical about the future of this country with the birthrate declining and population aging. is this country all right? that might be your feeling. so far, it was a taboo to say to raise the birthrate, but my government has decided to target a birthrate of 1.8 by the early 2020's, and child care services are being expanded. i also attach importance to

we were measuring the economy as if it's still a midwest rust belt economy. that's not the case. >> talking about the economy in the way the president himself is pledging to people that he can bring the kind of economy he's talking b ining about. >> does he understand the impact of technology? does anyone in washington understand technology? >> they deny it. i think he has to say that because the mexican, chinese story is better for the football stadiu stadiums, but the reality is no. bigger picture though, investors not invest ng the economy. they have to live and work in the economy. investors invest in the stock market. go back to 1900. look at 16 marriage markets. the long run correlation between economic growth and stock market growth, returns, is effectively zero. .06. we all feel better when the economy grows, but that's not comma dictates the ups and downs of the stock market. you can have a panic in a great economy. a great stock market in a lousy economy. i think we need the focus on forward returns. >> is it lagging? contemporaneous? >> can i give

areawide economy.eat stuff. stay with us. we will talk more about the china numbers expected over the next hour or so. this is bloomberg. ♪ a guest is a former deputy governor of the central bank of ireland. he stays with us. great to have you. marcus breathing a sigh of relief after the results of the french presidential election, but let's move to the u.s., reassuring jobs numbers on friday. do you think that boosts the fed mandate to go more hawkish this year? think the fact that the job market in the u.s. continues to tighten as the fed has expected suggests the feds expectations and game plan are caring itself out, so it does look like further the tightening in u.s. monetary policy. janet yellen has been careful of not doing anything without it being clearly so marketed expectations match what she is about to do. what we have not heard a lot about is the balance sheet. they did not mention it at all, so do you think they should start talking about it, and what does the unwinding look like? can't t

diversifieda highly economy. the sweet spot of our manufacturing is advanced at facturing so if you look the places we participate in the global supply train it tends to added, advanced, difficult. the there are companies like john caterpillar that say castings u.s. can't be made any other place in the world. here do you suppose china is sourcing its nuclear island. all the high end extremely into the arts that go come from the united states. jobs in the rustbelt. we e take a step back realize that the portrayal in america in of decline and the rustbelt as an failure of e globalization, it's just not looking closely enough. yes, we have lost jobs. rustbelt. but we've also created jobs. here are tens of thousands of advanced manufacturing plants in the rustbelt that export. of that support thousands jobs in the rustbelt. we trust fisherman fisherman and it for example, when we eat the m gordon fisherman's. chances are it was shipped to china to be deboned and sent back. that happens with 80% of our seafood that is

economy, and much more.. >> so, when you look at the economy now, the growth numbers came in very weak. 1.7. under 1%. does it tell you that the economy, and there's been a long though somewhat modest economy, is it petering out? what's going on? >> the first quarter numbers are probably just an aberration. we know in the winter the gdp numbers have been lower than they should be. generally speaking the recovery has been really good. in the sense that we're down to 4.5% unemployment, 16 million jobs created since 2009. inflation is low and stable, gas prices are low, stock market is up, a lot of things are very positive. growth could be faster. that would be great. but underlying this growth pattern is slow growth in the labor force, population changes, and pretty slow productivity gains. but we are seeing improvements in wages. the latest employment cost index showed a stronger number. so, in terms of the recovery, from the crisis, things look pretty good, generally speaking. and i'd have to say, if you tol

will super charge the economy. will super charge the economy. but former treasury secretary ♪(banjo) ♪ooooh ♪i hope the days come easy and the moments pass slow♪ ♪and each road leads you where you want to go♪ ♪and if you're faced with a choice and you have to choose♪ ♪i hope you choose the one that means the most to you♪ ♪and if one door opens to another door closed♪ ♪i hope you keep on walkin till you find the window♪ ♪if it's cold outside, show the world the warmth of your smile♪ ♪but more than anything ♪more than anything ♪my wish for you ♪is that this life becomes all that you want it to♪ ♪your dreams stay big, your worries stay small♪ ♪you never need to carry more than you can hold♪ ♪and while you're out there gettin where you're gettin to♪ ♪i hope you know somebody loves you♪ ♪and wants the same things too♪ ♪yeah, this is my wish ♪may all your dreams stay big 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

the economy is a big issue. immigration reform. and he had the formula by the way, he gets the economy going, there is nothing they are going to touch him on with this russian stuff. neil: "mad dog" mattis take on assad with more strikes. congress take them on with more sanctions. which one do you think will pack the most punch? >> today on forbes on fox, with the president overseas and the president focusing on allegations and accusations, the white house is about to reveal something dramatic all americans should be focusing on. the summitter of resistance. i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business. neil: to

we can see three economies are the world's largest economies. trade and investment among them are substantial and the byproduct of the global economy. yvonne: you mentioned america first, and the triangle relationship could be dangerous. what do you mean by that? trying -- trid of angular relationship is fragile. if you look at e.u. relations, there are long-standing disputes over subsidies, investments, human rights, and arms embargoes. there are signs showing that china-e.u. relationships fundamentally improve. there may be temporary compromises, but i do not see any substantive changes. you are exactly right. there is a lot of tension between the you and china, particularly -- between the e.u. and china, particularly climate measures. it is a sore point between the chinese and the americans, too. given what we have just said there, maybe president trump sits in the white house and says, i am not that worried. chen: [laughter] actually, we need to see what kind of police li keqiang and the other leaders have for the summit. hase look at xi jin

for she said the economy looks stronger, global economy picking up, but here is what the issues are.some between signs the economy is in the neighborhood of full employment, and assigns the tentative progress we have seen on inflation may be slowing. is that tension between the progress on employment and lack of progress on inflation persists, it may lead me to reassess the expected path of policy in the future, although it is premature to make that call today. kathleen: she devoted a very large portion of her speech -- that is what she jumped into right out of the gate -- to looking at the pce deflator that is the fed's main gauge of inflation. at the core deflator, which takes out food and energy. it happens today that both of them fell. the latest report for april value over year. let's look at btb 2985. you see that trend. you see how weak actually the overall number got in 2014, but it got above 2.1. now it is down to 1.7. the past three months have been weaker. the core is down to 1.5. this leaves they'll bring art and others -- this leaves by l bernard and others with a puzzle

north asia economy editor from tokyo. japan,head, staying with we will talk more about efforts to help entrepreneurs breakthrough.our guest is ceo.ormer sony later, the details on the reaction to fines against credit suisse and you kobe. lenders have been caught up in the 1mdb pro in singapore. -- probe in singapore. this is bloomberg. ♪ haidi: this is "bloomberg markets: asia." i'm haidi lun in sydney. a quick check of the latest business flash headlines. chinese developers extending asia's against rally this year with china ever grand surging to a record in hong kong. it is the world's most indebted developer, but closed 23% higher this year. this despite j.p. morgan saying there business is not sustainable. the china and i is at the highest level since july 2015. competition and $7 billion of debt are catching up with reliance communications.the stock fell to a netrd low on the back of a loss on the signs it is failing to meet obligations. it is in talks to sell business. mitsubishi is cranking up drives to boost forei

given what the economy and labor market are doing, the u.s. economy can handle the rate. francine: we are also saying live pictures of jeremy corbyn, the leader of the labour party, speaking i believe, in westminster, where he is morning of the impact of five more years of the tory government and the impact that could have on nhs and the education system in the u.k. we have to mention it because a lot of people will be watching for his demeanor after we had that poll we were talking about with emma ross-thomas, which could lead to a hung parliament, if we believe the latest yougov polls. we will keep watch on that. james, back to fed polls. these are the fed's funds futures. the market does not seem to believe what the fomc keeps on telling them. >> i think there is a lot of ambiguity as to what people believe regarding the u.s. economy itself. people talk about 2%. and we had larry summers from "the wall street journal" here last week. when one thinks about what is driving the u.s. economy, the underlying economy seems perfectly fine, but the government is shrinking back

economy. and further, and with the fluctuation, we two never made the expand ourselves by selling cheaply. japan and the united states, we have evolved and i have explained to president trump and i believe he understands this, and after the united kingdom, even when it comes to the united states and the investment, creating jobs in the united states, japan is number two. we are making huge investments in the united states and i have told president trump on this. and how should we expand and develop our relationship? we should create a framework. vice president pence and deputy thereminister aso, will be a dialogue. the other day, vice president pence visited japan. free and fair rules should be created together between -- together with the united states theas the trade rules in european world, we have agreed on this, with infrastructure for railways and other infrastructures for individual projects. we will move forward with collaboration and cooperation. we have agreed on this count as well.

is the economy for.have cut corporation tax, that is a tax on the profits of big corporations. since 2010. to the point where we could perhaps be getting 20 million, £20 billion a year, 8 billion of which could pay for heather's tuition fees, another 12 billion could go into actually providing those decentjobs and investing. it doesn't have to be this way. you have a whole bank of people over 60 wanting in here on this. 0n the question ofjobs, job security, pay and so forth. gentleman in the front. do you think that actually you have had it a lot better than this generation? no, i have been through the world of work now since i was 16. i have not been in a single job for more than three years. i have not got a pension, i have had to, towards the end of this i have been better paid so i bought a flat to rent out, to use as my pension. and thank you again to the conservatives for taking tax off me because they have changed the tax rules on renting. do you think this generation has got to harden up a bit an

what does that say about the outlook on the economy?growth for china's industrial sector, those profits rising 14%. we are talking about and porters who have benefited from investing in production lines and warehouse is because global demand has remained relatively robust, particularly the u.s. and the european union. riskts were a key area of leading into 2017 because there was concern the u.s. under trump would slap tariffs on some of these exports, and that has not happened. at the same time, you have stronger household demand in the u.s. propping up some of these exports. 813 zero shows what has been happening to industrial profits over a longer time horizon. 2014-2015, you saw industrial profits take down, then they start to pick up in early 2016 and kick off in december of last year. they have strengthened to that point where you get this 23%, more than 23%, increase in industrial profits for march. the 14% increase is healthy, but an edge down. we did get some indications of the concerns going for that the pressures of some of th