economy? guest: seems to be in good shape as the head of the federal reserve has called especially bright moment for the u.s. economy. things seem to be going forward steadily and smoothly. and one of the longest economic expansions and american history with not a lot of signs of trouble on the horizon and growth has been stronger in the past, waiting for more upward movement on wages. things are going well. host: talking about the stock market, federal reserve, economy. we want to get your participation. if you live in an eastern or central time zone, the number is 202-748-8000. if you live in the western part 1. the country, 202-748-800 a headline to a piece you wrote after the president attacked the fed as the stock market fell and the midterms limned. loomed.d -- president trump did an interview with fox and friends. let's look at we will talk. >> the federal reserve is getting too cute. democrats, you look at what they would do, they would knock it down democrats, you lot what -- down 50%

—— having on the chinese economy?a which rang some alarm bells, today we saw the people's bank of china change its policy to help chinese banks lend out more money and therefore boost the chinese economy. what is the picture looking like? clearly this has come at a very difficult time when china was already facing a much wea ker when china was already facing a much weaker and to the year in terms of its domestic economy, and so far, although the trade frictions are causing some impact if you are looking at sentiment, on actual trade figures, actual net exports, there has been a drag on the economy. you know, earlier in the year, the actual impact is really, for example, further depreciation expectations for the currency. the immediate impact is not actually on the trade volumes, as such. that is in the months to come. you say that is to come in the months to come, it is to come in the months to come, it is the same for the us as well. at the moment the us consumer is not really feeling the impact of this, which i imag

the italian economy is slowing down.ing this clash between the italian government, italian institutions, and european institutions. so it looks like the italian government is just trying to gain domestic political support for the upcoming european elections. it is not really thinking long—term, and in the meantime, while financial markets are asking are you interested in our debt, our banks, ourfinancial institutions, that in the last years have bought a lot of italian debt, are have bought a lot of italian debt, a re clearly have bought a lot of italian debt, are clearly suffering. very soon they are going to stop passing higher interest rates and lower credit to our firms, and this will only slow down the economy more. credit to our firms, and this will only slow down the economy morem the short term, the italian government has got until noon today to present its changes, if any, to the budget plans, in reaction to brussels. resume ugly they won't do that, so how do you see that stand—off being resolved 7 that, so how

economy. and really the toll that the trade wars are going to take on real economic activity is going to happen very gradually with a lag. so i think by the middle of next year we could be seeing a lot less bouyant conditions, some slower hiring numbers, some slower growth numbers, more volatile financial conditions, tighter financial conditions, stronger dollar, higher rate. so i think all of that could lead the fed -- the fed right now is carving out a wide room to do whatever it takes depending on the data. i don't think that they are determined to, as some people say, hike until something breaks. i think they want to get a few more hikes along and then sort of cautiously look at the lay of the land. so i don't think the market is badly priced for what i expect the fed to do which is somewhere around neutral, take a pause, and look around and gather more information. vonnie: julia, what will be your question to john williams who's coming up in about 20 minutes? julia: well, i think in terms

the imf was facing its assessment on the uk's economy, for the uk's economy, on the condition or assessmenteal would take place, some sort of negotiation would take place. here is what the chief economist of the imf had to say when i asked him what happens if there is no deal. we assume that it will because that is in the interest of all parties. as we know, sometimes parties cannot agree and they further worsen situations. if brexit turns out to bea situations. if brexit turns out to be a hybrid of some sort, that would disrupt supply chains throughout europe, throughout customs clearing and it could have fairly big effects. as you can see, there are a lot of concerns going ahead for the uk economy and it is notjust the united kingdom, it is the entire world at this point, sally. i think that was the underlying message from the world economic outlook. six months ago we were in a much healthier position and a much better position in terms of how the global economy was doing. now we are in a situation where rising interest rates could affect many developing economies out in this part of the

economy is much stronger than the european economy. yes, europe is growing but there's major ramifications in europe around brexit that will impact the economy, the italian debt saga. there are real reasons why in europe the momentum is lower than in the u.s. if you have such a strong u.s. economy with two more years to run on the back of fiscal stimulus, a tech reduction that is strong and now only showing up in corporate earnings, there's a good reason why the dollar is appreciating on the flip side, china is running into trouble and the chinese central bank is stimulating the economy. for six months now the renminbi has been falling, but it coincides with more expansionary policy and fiscal policy if you look at the two, you have a hard time of making the argument that a weaker renminbi and a stronger dollar is not in line with these fundamentals in my view that is the case. it is in line and the chinese are doing the rightthing the economy this year will likely grow at 3.5%. there's a risk it slows down to 6% next year the central

singapore is a trade dependent economy. what is important is they have tightened this year which shows they are not too worried. obviously, they do not feel those risks have arrived. overall, taking the sand when -- sanguine approach. many of their economies can be positive. it is a good sign for asia fundamentally. >> you can check out our blogs. you can also give a shot at the question of the day. has the dollar peaked? kind of ran to it for safety. let's go over to haslinda amin. us with not only the chairman of the central bank but the deputy prime minister of the nation. >> that is right. emerging markets in focus. engulfedhem have been in this imagined market rout. seeing markets embroiled in this turmoil. what is the reason behind them? moment to theto a 1970's, the 1980's. morepore and south korea, than 5% of gdp each year career at some point, more than 10% of gdp. look aghast atot that. it was attainable. capital markets, global financial investors had opportunities. what has changed? it is a very fundamental ques

it is the second biggest economy in the world, still growing at twice the pace of the global economy,od from where we're sitting in the uk, where we are so 196. 1.296, i sitting in the uk, where we are so 1%.1.2%, i think, sitting in the uk, where we are so 1%. 1.2%, ithink, annually at sitting in the uk, where we are so 1%. 1.2%, i think, annually at the moment, but the comparison still stand. yeah, absolutely. and the chinese economy in the bigger picture is in transition, so from where it has been double—digit growth from a long period of time now down to just over 6%, that is going to take a long time for the economy to transition into more of a service driven, consumer driven economy. it is a big economy to absorb those kind of issues, i think. these are the two kind of things that we have been hearing for quite sometime coming out of china, one, try to reduce the level of indebtedness both corporations and local governments, it also this kind of structural adjustment they touched on there. and neither of those kind of sentiment has really changed in these numbers, it is kind of

economy. economies all over -- for goodness sake, japan and other central banks began having negative interest rates which is more crazy. this is unwinding of something that was very unnatural, no? >> yes. david, a process that took for the better part of 10 years, fueled many say a tremendous speculative bubble in exactly the names we're seeing among the weak of the now. i will disagree respectfully with danielle, this doesn't start last week selloff in stocks, we've been seeing the deterioration of equity markets better part of the year all holding market up is the fangs, high-tech stalwarts like microsoft, netflix and et cetera. david: gary, let me interrupt for a second here because there is something holding up the markets and that is the economy. we keep getting these extraordinary numbers, whether dealing with growth or consumer confidence or job numbers. in my lifetime i never had a period where there are more jobs than there are people looking for jobs. there is real stuff going on, n

how to get the economy going. >> talk more about the economy because voters impressions are which party deserves the credit and that could be a deciding factor in the upcoming election. we have president trump claiming all the credit president obama has come out very forcefully to say all the result of his policies because this matters what is the truth and back it up with specifics. >> i would like senator casey to say exactly what it was that was responsible for this. more regulation? obama care? what was it higher taxes? i cannot find what policy but the fact of the matter is the economy took off when we rolled back taxes and allowed businesses to grow and gave them there more money and invested for people we rolled back regulations so they can actually compete here in the united states once again because of this administration and policies the united states has once again become the most competitive country in the world and businesses are moving back we now have a shortage of employers that i know what policy and eight years that could have caused that to hibernate eight years and a

addressing the economy addresses so many problems in this economy. they would borrow less. they would be able to find high-paying jobs when they get out of school. that's what we're seeing now and need to continue to college. michael: a quick follow, ms. sherrill, some including governor murphy, are proposing those community colleges to tackle this problem. do you support that? ms. sherrill: i have talked about how the tax burden have made it hard for new jersey families to afford dust of -- cost of living. without knowing how it would be paid for, i can't support it. in my hometown we see a lot of families saying, i may have to move out of the state because i can't raise my family here. that's unacceptable. no, i haven't been supporting that at this time. michael: you want to rebuttal? 30 second? mr. webber: it is an area of agreement. i hope mikie lobbied the governor to tell him she is -- he is going the wrong way. i challenge her to speak up more to the leadership in her party. michael: let's move on. we asked both of you to pose a question to the other. it's time for t

economy. and jp morgan's results seem to support that as one analyst wrote, always tough to call the end of the cycle, but there is no evidence in the end in jp morgan's results. dimen was brushin off concerns saying investors need to look at the reasons why rates are rising and not just the fact that they are rising. >> the why is more important. the economy is strong. rates are goingup. most of us consider it a healthy normalization and going back to more of a free market when tt come asset pricing and interest rates. to me, overall it g is ad thing particularly for the economy. i dora exptes will continue to go up. >> on the media call dimen highlighted specific risks including exit, trade and international tensions. he calle the head winds geopolitical issues bursting all over the place but said he didn't think they would derail the u.s. economy. both citi and wells fargo have ocbeensed on their own plans to bring down expenses but also shhroughng their own ear earnings that the rising int

it would be bad for the economy. of the four counties in this --trict, with the state and the four counties in the district over 19,000. before we get too excited about in the state and local. deduct 10,000. we see that now is that just felt today to the lowest point in them years. the dow was at the lowest point since february. we need a tax plan that helps everybody, not just a chosen few. this has been particularly bad for our state. mr. webber: the stock market has been up since president trump gained office. people have prospered because of that. the deduction cap. it should be lifted or eliminated. to suggest that people are not more prosperous than a year ago is absolutely heard. ms. sherrill: i would say i am not cheering for the stocks falling. i am can learned about this tax lan and how hard it has been for the people in new jersey. when you see the economy growing and other parts of the country, that is wonderful. our families have been suffering and the tax plan has made it worse. >> you say that new jers

economy down?s strong as the equity markets have been, the fixed income markets have been even stronger. i think it will be interesting to watch. the other effect will be the dollar. what we have to be careful of here is that the dollar will slow down. the very strong dollar was obviously significantly impacting the rest of the world, especially emerging markets. down,if the dollar slows it will be fascinating. this selloff is spreading into asia. we are seeing something that started in the united states yesterday intensified there. we had already seen selling and the rest of the world. is it not time for the u.s. to sell a little bit more than the rest of the world? i'm fascinated to know how those linkages come through this time. >> it's a very good development in terms of the rest of the world. in have such a disparity interest rates with the 10 year treasury at 3.2 and german bunds at 50 basis points. belowof government bonds zero. this is a very good development. , it is healthy for the u.s. a

the economy has looked strong for years. and especially since trump took presidency, and i think we're just in an exuberant time. people find the rate increases as normal given the economic conditions >> the list of what's pushing up rates is long. there's better growth and lower unemployment core inflation, excluding food and energy is solidly above 2% the fed is pushing up rates. sometime next year other central banks may increase rates there are tariffs pushing up prices there's also a growing deficit which also usually means higher interest rates those higher rates could put a crimp in growth affecting sectors like housing and autos but not expected to derail it. >> we will see the return to normal term premium, the extra yield people demand for holding long-term paper. in this case it's a relatively good sign. it means there is confidence the economy is coming back >> one modest upside is that higher rates will help the fed slow to a more manageable growth rate if so the central bank could be done raising rates sooner r

economy. the fourhat of counties in this district, with the state how local text induction cap, the district -- the -- in the district pays an average of $19,000. >> an average of $19,000 in property taxes? taxe: in the local property , and you can only deduct $10,000. the nasdaq fell today to lowe's .7 years. the dow jones is at its lowest -- to a low point in seven years. the dow jones is at its lowest point since --. jay: it's incredible we have a candidate cheering for the stock market to go down. people have prospered, 401(k)s are better. i opposed the deduction cap. but told be eliminated suggest people are not more prosperous than one year ago is absurd. moderator: one follow-up. mikie: if i may, i am certainly not cheering for the stocks falling. . i'm concerned about this tax plan and how hard it has been for people in new jersey. when you see the economy growing in other parts of the country, that's wonderful. we don't feel that here in new jersey. our families have been suffering an

that leaves emerging market economies undera lot of leaves emerging market economies under a lot of pressurehey have big debts in dollars, that puts them under pressure. and there is a worry from the imf that we are getting to a position where the capital getting to a position where the ca pital flows getting to a position where the capital flows start damaging emerging market economies as investors put all their money towards america. emerging market economies have already seen a large amount of money pulled out of their markets. the imf mentioned this. what is your sense, is there a risk of the spillover, the contagion effect? absolutely, the war is there it are few things you can do to be a fire break on the capital flows. if the federal reserve, the american central bank, raises interest rates, that makes dollar assets more attractive and it means money moves towards them and what can those governments in emerging markets do? the imf says they need to make sure they control their debts, make sure they control their debts, make sure they have good public finances, because they will become

is still largely a closed economy, at a larger economy than others? are these secondary factors? more generally, how should we be thinking about these as we move ahead? >> was certainly, relative to decades ago when i started my career, the u.s. with a more open economy than it was. and in some ways financially very open because of the interconnectedness of global financial markets. i think that is a reality. what i mentioned in my remarks, you spotted some potential issues in the global economy but certainly, as i said, i do believe policy today remains accommodative and i think i would also mention in this regard that i think fed communication is important as well. factorssaid, the global enter as i indicated. >> yeah. yeah, not trying to put you on the spot, but that would seem to that theomission current account deficit of the u.s. rising and expanding is not of direct concern to the federal reserve. i think you certainly want to look at the capital flows into -- ass., and obviously say,ure you were going to this is a phenomenon that needs to be understood in that context. >>

melissa: keith, that sounds like a slowing economy but seems like what has really changed with the economy at this point we would see that dramatic of a change in interest rates in the market and in people's habits? >> you know the fact that the fed thinks it knows better than rest of us who live with real money as opposed to academic models scares the you know what out of me. they should keep their mouth. didn't see crisis coming. didn't see recovery coming and don't understand the relationship between what people feel in their wallet which is different than official inflation statistics. i love powell that is not in our models. he should revise the mod did he. my breakfast costs 60% more than three years ago. that is inflation. melissa: peter morici, you want to step in defense of models. >> i don't, excuse me, i don't want to defend the models. the problem he is surrounded by macro economists. a fed chairman a lawyer. >> bingo. >> doing this off cliff notes. he is having macro economists from johns hopkins whisper in their ears. those models are based on historical information. they har

talking about the economy here really booming, but then you start to hear things about the global economyng. the imf downgrading its global growth picture to 3.7% from 3.9% that's the first time they've done that in two years you start hearing about the yuan rising above the 6.9 peg to the dollar we thought yesterday was the big move, but now it's above 6.9 then you hear about companies like ppg talking about what happened with earnings, warning they're not going to be making numbers, that's because prices are going up and because of the trade war, concerns about what they'll be able to sell. you add all that up, we're in october, it's a scary time of the year we have a ton of market guests here david wessel, joe zidal. lots of things we'll talk about with them and you mentioned google plus earlier. the idea that it was hacked into we hahave reid hoffman joining s the founder of linkedin. he that has lots of thoughts about silicon valley, what some companies should be doing to deal with regulatory efforts and have you heard of third love >> is that a band? hbo show >> no. no no it's a new

the's talk more about economy. voters and impressions of who deserves the credit, that can be a deciding factor in this election. we have president trump claiming all the credit for the current economy. president obama has come out and said, it is all the result of his policies. because this matters, what is the truth? and please back it up. rep. barletta: i would like senator casey to tell us what exact policy it is in there in ministries and that was responsible for this. regulation? obamacare? what was it they did? higher taxes? i can't find what policy it would be. the economy took off when we rolled back taxes. we allowed businesses, we gave them more of their money. we rolled back regulations so businesses can actually compete here in the united states once again. because of this administration, our policies, the u.s. has once again become the most competitive country in the world. businesses are moving back here. we have a shortage of employees. i don't know what policy it was in eight years that could have

economy, and that it just wasn‘t a there is momentum in the economy, and that itjust wasn‘t a 1—off blip is the labour participation. now, although the unemployment rate remains low, people who had previously stopped looking for work haven‘t really got back into the game. so economists will want to see a real, meaningful change in the number of people that are actively looking for work. let‘s go to asia now, and the world‘s biggest electronics firm says it is on track for another quarter of record profits. south korea‘s samsung electronics leads the global market for smartphones and memory chips, which have been in huge demand, but it has also had some serious legal problems. sharanjit leyl is following the story for us in singapore. it just keeps getting itjust keeps getting better and better, doesn‘t it, in terms of the profit numbers for samsung. that's right, you said it. samsung electronics seemed to keep on doing this, their profits set to surge 20% toa this, their profits set to surge 20% to a record high. we know samsung, of course, for its mobile phones, but its chip division ha

you don't emphasize economy, and you said yourself, you have a boom and bust economy. it doesn't work for new mexico. we have to of the above. and i disagree with your long-standing approach that climate change is real. it is we have to address it. >> moderator: i'd like to move on because the summit topics we want to cover. one is going back to education, of course this is been in the news. hotly debated across our state. there is this pushed in the legislature to tap the permanent fund for the to expand pre-k all across our state. some say this is the best chance with the lift an entire generation out of poverty. others say this is a fiscally responsible thing to go deeper into the permanent fund. mr. pearce, as governor which is support capping the permanent fund for expanding pre-k? pearce: let's look at the idea. i was in the legislature and been very involved in the discussion, and that was going to be the solution for education. now then we have it and now to be something else, let me be clear. our education system is not working. it can be fixed but we need to

it's fortunate we have a growing economy. that's critical to affording this debt, but as maya said, i would agree, the major entitlement programs have to be reined in at some point, the fastest growing entitlement over the last year was looking at obamacare, not as big as the other ones yet but growing very fast. i think you look back at the failure to repeal that. that was an opportunity to start reining in the spending monster. if the president is talking about 5% cuts, that's wonderful. but it needs to extend governmentwide, not just that discretionary domestic part of it. if he wants to get a real cut in. maria: you make a good point in terms of obamacare. probably not going to see the president or the congress come out in an election year and say hey, i'm going cut your social security right now. >> yeah, but that's a big driver, along with interest payments on the debt, social security, another category with a big increase this year. maria: are markets focused on this, james? >> i think long-term, and also as we look ar

the problems the how important though is brazil to latin america's economy and even to the global economy well it's by far the biggest country in the region but i think it's worth noting actually that brazil is fundamentally quite a closed economy so it's worth noting that the rest of the region can still do relatively well in terms of economic growth even if brazil is stuck in a slump and so what needs to be done to put brazil's economy back on track well i think the main thing that investors are looking for is pension reform and deep fiscal reform i think there needs to be a big pension reform that president tanner struggled to put. and i think future governments will struggle to push this through too because it's highly unpopular with the electorate and also the reform requires three fifth's majority in congress and brazil's congress is it massively five mounted this twenty eight political parties in there it's going to be very difficult to push that kind of unpopular form through congress ok so if they can't get pension reform what else can they get through well they can probably get

i think what really happened in our economy was a change in how our economy worked, the globalization of our economy which was inevitable, the automation associated with new technology, immigration, all these features together; globalization, immigration, automation and the information age. actually, all four of these this things interacted at such a time that certain portions, certain pockets -- substantial pockets, states of our country were severely impacted. and other states found this as a huge opportunity. certain pockets just took off in terms of their potential. and the kind of financial rewards available to entrepreneurs in the information space, for instance, were -- these opportunities were extraordinary. at the same time, if you're working in the auto industry or the steel industry or other manufacturing sectors of the midwest, it was devastating. and the people who were leading the country at that time whether business or government and so forth just didn't see the impact this was having on american families and took no substantial corrective action to help those people s

if all the assumptions about iowa's economy, the nation's economy, the geopolitics around world comerue, no business anymore,out five years the likelihood a tax cut for the middle class will happen in 2024 is no more likely than the cow jumping over the moon. misleading people. we used to be number one in education. typical iowan, they know they're not number one anymore. we need to commit to making it number one. that means we need to focus not rates but the fact that 30% of our kids in third minimumn't meet the reading requirement. over half of our kids graduating from high school these days ready.college our a.c.t. scores have declined three years in a row. moderator: that's time, mr. hubbell. >> i have another question for both of you. to startwe're going with you, mr. hubbell. we've already faced a series of cuts in the previous budget year. to,g forward, if you had where would your administration look to reduce? i'm looking for a specific answer on areas that you would cut if you fred hubbell: need to stop giveaways toax corporations that do not need them and do not oftentimes

economy is enjoying the goldilocks economy. recent rise in bond yields affects the outlook instead of any allowed inflation. let's bring in another perspective. this is the president from st. louis fed bank. great to have you. do you agree with the recent rout in the bond market? i don't see very much inflation pressure for the u.s. economy. the u.s. is growing pretty rapidly now, but that is likely to slow down in 2019. bond market overall knows that and has that in mind. at this, almost existential conundrum of why wages are moving in the relationship we expect them to. this is really painting the picture that despite the difficulty in providing quality labor for small businesses, this is an issue the fed wage growth tracker continues to look sluggish. suggested thel wage labor market relationship has flattened out. you think it has broken down? is that a fair characterization? james: it is something i have been emphasizing is the celebs curve is empirical relationship and that has not been reliable in the last 20 years compa

our economy may continue to grow. other economies may grow at a slower rate.nk -- charles: that's the greatest risk? the idea that the woes of the global economy finally impact us? >> what's interesting is synchronized global growth is the thing that drove this market when it started. if our economy grows at a greater rate than others, and we do trade fairly with the rest of the world, we may see that the balance isn't about trade restrictions. the balance may be because their economies aren't growing as well as ours is. charles: in 20 seconds, what do you make of this market? we got something of a cp effect going on led by consumer services, netflix, consumer staples, finance and health care. some of that is cautionary. what do you think about going into the last hour of trading? >> i think the market's going to continue to be volatile and it's going to be -- charles: where is the bias, up or down? >> probably up one day, down the next day. charles: that was the lamest ever. in a meeting i said bring mitch, he will give us a definitive answer. >> up. how's th

economy. good point yes the tax cut being credited with a lot of this growth but at the same time there must be a limit to what it can accomplish what are you hearing there. well i mean one of the problems is when you look at the u.s. corporations for example the tax cuts for companies got cut from thirty five to twenty one percent the big question is what those corporations are doing with that money and a lot of this money was not spend for investments but for higher dividends for mergers and acquisitions for huge buybacks of their own share so that was good for wall street that was good for investors but not necessarily for the entire country and what we also shouldn't forget is well this money is missing in washington sold takes guts means that death in the united states it's increasing if i'm not mistaken just in the last year. the u.s. government had to pay about six hundred billion dollars just for interest on their debts that could actually be a problem if we're looking ahead to the fut

mean we're talking about just one called friends but is this going to have no one affects on the economy as a whole for saudi arabia. a lot of people are not going to want to hear this but it's probably going to have a very minimal effect on saudi arabia our first three reasons first at this conference business talks are still going to happen russian direct investment fund is going even the u.s. and u.k. do not want to get rid of their defense contracts so they're going to send representatives and with banks like they just b.c. and j.p. morgan pulling out well they're pulling out their c.e.o.'s but they're going to you know go second or third world second reason is domestic reforms i just got off the phone with an analyst in dubai and he said just the fact that women are now allowed to drive drove up insurance policies by twenty five percent we've also got cinemas in the country now so there's consumer spending there's a message expanding that strengthens the economy in the third reason well it's brown dark blackish and smeary it's oil and the price is very very high right now much highe

how can we grow our economy without destroying our planet for that he came up with a model that looks into how the economy influences the climate and we can use it still the scientists use it to predict how policy changes for instance like a carbon tax would affect the climate room on the other hand it's more what keeps growth what keeps the economy growing and how can we how can we keep this growth up for him it's basically ideas innovation that are very central to to keeping up growth and he says then it's they need special conditions to grow these ideas and he's looking into how to create these conditions now the announcement of the award comes on the same day that climate researchers are calling for unprecedented steps in order to fight global warming that doesn't sound like a coincidence to them no i mean absolutely the report that came out today it once again underlines that climate change really is one of the biggest challenges that we have facing economy is a big driver of it creates a lot of emissions so it only makes sense that the economy also looks for the answer. and i th

economy. when you look at the real numbers, we're way exceeding on grouth we're way exceeding on employment and the fed is basically on target it seems to me like the fed is in a methodicalle rate-raising environment exactly what they're supposed to do i think the fed is doing their job as a very independent agency >> and there's another question that, inside that question, gary which is -- should the president be making these comments i did notice that when you were there, the president wasn't making a whole lot of comments on the fed >> i believe very much in the set-up of the u.s. government. in the branches of the government in the independent agencies. in the independent agencies are very independent the president's power and the executive power is to appointment and have confirmed his individuals that he wants to serve on those committees, or those boards once the president does that and he can put anyone up he wants, as long as he gets them confirmed by the senate, it's his job to leave

the problems how important though is brazil to latin america's economy and even to the global economy was by far the biggest country in the region but i think it's worth noting actually that brazil is fundamentally quite a closed economy so it's worth noting the rest of the region can still do relatively well in terms of economic growth even if brazil is stuck in a slump right so what needs to be done the put brazil's economy back on track well i think the main thing that investors are looking for is pension reform and deep fiscal reform i think there needs to be a big pension reform that president tanner struggle to push through and i think future governments will struggle to push this through too because it's highly unpopular with the electorate and also the reform requires three fifth's majority in congress and brazil's congress is it must be a five man to this twenty. political parties in there it's going to be very difficult to push that kind of unpopular form through congress ok so if they can't get pension reform what else can they get through well they can probably get through

feel well, this is restricting our developmental growth as developing economies?ur developmental growth as developing economie57m restricting our developmental growth as developing economies? it is interesting as the former head of the world trade organization said, one thing we must give us president donald trump credit for is that in saying the united states will draw if the wto is not in form and shape up, choose the president's words, it has actually pushed everyone back to the table to agree this modernisation. on the one hand, it is not greater china and the us are not abiding by world trade organization rules, on the other hand, underlines the point is that organisation wants to stay relevant in the 21st century, it has to reform. 0k, stephanie, thank you very much indeed. thank you. as i mentioned, the world's two biggest economies, the us and china, are of course embroiled in a fierce trade war. and developing nations like panama are very much at the frontline as the two fight our it for influence. our asia business correspondent is karishma vaswani. we h

the economy is hard to question. most people see an economy despite a shaky economy.e's pocketbooks are looking good. unemployment rate is very, very low. the growth has been astronomical. do you think republicans are running enough on that? is it too much about democrats and should be more on the economy? >> republicans are trying. you see them make the case about the economy. its historically strong. no question about that. the case president trump is try to make is what is the danger in electing a democratic senator democratic house. the answer is potentially compromising economic growth and economic success. in a midterm election cycle those messages motivating based on what you might lose, those tend to be more effective messages. i think republican candidates are doing a good job focusing on the economy. it's tough to break through with any message in this day and age with so much going on. >> to hear a lot of nancy pelosi, a lot of personal symbols of a democratic party that are absolutely controversial and not very popular by most people's standards. to your p

let the economy grow. but you won't miss what you cut in spending you don't have any good ideas how to get the economy going. . >> they are relying on investment income when you make substantial cuts? . >> the most important thing is to see what we could first cut the construction budget there are things we can put off. at the capital construction project going from 90 million to over $300 million and it's a great project. but there are some opportunities to push more of these decisions out to the future but we can also reorganize but it does mean we can take that initiative and then repurchase it so it gets more support to the local governments with 300 million that we leave on the table every single year those are the solutions that we need now. >> and then you said. >> is started with the capital fully supporting that. manasseh part that i struggle with. . >> but mark needs to go back to check the minutes of the oversight committee meeting when they stood up in a public meeting and supported what is goi

economy. -- stagnant economy. ms. sherrill: when president obama came into office, we faced a recession. luckily it didn't turn into a depression. sometimes you spend in any economy to make sure it -- in an economy to make sure it doesn't get worse. a robust economy is normally the time you don't explode the deficit. i don't think it is going to be good for our economy. it is not fair to place that on the backs of our children. >> we will move to student debt. the question comes from our business correspondent, who prepared this background report on the issue. >> student loan debt has reached $1.5 trillion, according to the u.s. federal reserve. total outstanding student debt has doubled in less than 10 years. the highest category of consumer debt after mortgages. in new jersey, the average student graduates with more than $32,000 in debt, the sixth highest level among the 50 states. all that debt was a risk to the risk to theses a economy. >> as student debt continues to grow, it can absolute

the problems how important though is brazil to latin america's economy and even to the global economy was by far the biggest country in the region but i think it's worth noting actually that brazil is fundamentally quite a closed economy so it's worth noting the rest of the region can still do relatively well in terms of economic growth even if brazil is stuck in a slump so what needs to be done to put brazil's economy back on track well i think the main thing that investors are looking for is pension reform and deep fiscal reform i think there needs to be a big pension reform that president tanner struggle to push through and i think future governments will struggle to push this through to because it's highly unpopular with the electorate and also the reform requires three fifth's majority in congress and whistles congress is it must be five men to this twenty political parties in there is going to be very difficult to push that kind of unpopular form through congress ok so if they can't get pension reform what else can they get through where they can probably get through some spendi

it doesn't mean the economy won't face challenges.ery complex environment where internal and external challenges interact. i think they are being extremely careful in weighing the risks and benefits. haidi: does this make the domestic structure reform and deleveraging agenda more difficult, if not, near impossible, as they try to support growth? julia: i think it definitely makes it more challenging. i see that beijing is trying to path thatast that -- is from a medium-term perspective, the best path for china. they are trying to rely on monetary policy solutions, are relying on the fx, which is ok from time to time they speculate they will. it is for the right reason. their eyes are set on the medium-term. i think it is partly because they think the trade war challenge could remain with us, even if there is a breakthrough. we could still see slower global trade growth, we could see a more fraught relationship with the u.s. every policy change you do right now has to be on the right side, good for the chinese economy in the medium-ter

i think what happened in our economy is the change in how the economy worked into the globalization of the economy that was inevitable and associated with new technologies and integration. all these together with globalization and integration, automation into the information age. all of these interactive at such a time that certain pockets, certain substantial pockets, states of the country were severely impacted and other states found this as a huge opportunity, others took off in terms of their potential and the kind of financial reward available to entrepreneurs where these opportunities were extraordinary. at the same time, in the auto industry or the steel industry or other manufacturing sectors of the midwest it was devastating and the people who were leadin leaving the countrys time for the business government and so forth and didn't see the impact this was having on american families. nobody took the substantial corrective action to help people so disproportionately affected. trade, the immigration age were all in the economy and have led the economy to power the world in some

we have to grow this economy. you -- you look at the votes that we have where we have to look forward our changes make no -- our votes made no changes from anybody in or near retirement. i am committed to saving medicare. -- mr. othfus, anything lamb, anything to say sfl rep. lamb: hundreds of billions of dollars voted you have voted to cut from that stame. what he's talking about is how the affordable care act would have saved money in the long run by getting people health care earlier in their lives. that's a good thing. again, i have not and will not vote to cut medicare. rep. rothfus: so you're saying that your support of the $800 billion medicare cut is somehow ok. we did not cut current recipients or people near retirement. we are looking at reforming medicare long term for nobody who is in retirement now or near retirement. if you like the prescription drug plan that medicare has right now, part d, that is a premium support model, that actually came in under budget. because of the competitive aspects that w

the fed may wreck the economy and rally. terrorism may derail the economy as well. here are the facts or fundamentals or facts we learned 7.1 million job openings out there. earnings are overwhelmingly great. gdp is strong. forget about corporate heads. they have much bigger issues than the dollar, rain shower material costs and wages. bottom line, important to know the risk there are always things to worry about. investors should ignore chatter based on a person's ideology and focus on underlying facts, because at the end of day that will dictate where a share price goes. we have chief investment crescent wealth advisors. >> you made grade points, charles. that makes a lot of sense. >> thanks very much because we're in that period now, aren't we? >> yeah, absolutely. i think, at least from my perspective i don't want to invest in a market that gets too far out of whack. i would rather have continue you'll corrections and stay on a steady predictable path if we can, than get way out over our skis. neil: -- charles: jack how do you weigh the possibilities what could

that could slow down the economy.ear. >> you have been through a few different financial crises, you have seen a lot of different cycles. we're in a position now where we have seven times leverage, something like 13% of the deals this year had that. how worried should we be about that? people say it's nothing like 2008, but i'm sure in 2008 it's nothing like the last crisis. >> remember the debt coming in is roughly what we had before the great recession, not that much higher. but the terms are much more favorable. before the great recession, 30% of debt had no covenants. now it is 80% to 90%. if there's a slowdown, the debt can be worked through. i don't think he will seek the defaults of the kind of pace he saw 10 years ago. >> canada. it would be remiss to ask you about cannabis. does carlyle have any interest into the pot business? >> we invest in canada. we like investing in canada, we are trying to buy another company in canada. hopefully we will win it. if we do, we will add it to the war folio we already have.

he also mentioned the economy, saying it concerns on the turkish economy have been put under control.tra market checks on turkish lira. let's get straight to kailey leinz. kailey: brexit talks are said to be on hold because theresa may's cabinet is not close enough to agreeing on a way forward. source, no new plan is likely to become put forward by the british side before next monday's annual u.k. budget statement. a report by the national institute of economic research it says a no deal brexit would shave percentage points off u.k. growth next year. an agreement that would keep most of the arrangements which he gdp grow. south africa's president says he has been overwhelmed at the interest in his summit. the leaders of the country suffered huge damage under the administration of jacob zuma and that his government is rolling back the bad decisions of the past. >> we are ahead of the track. we are way ahead and i am overwhelmed by the level of to be inthat continues the south african economy. the new fed vice chair has backed the central banks plan for further gradual rate increases. a

where working hard to grow the economy, and incomes rise and with a growing economy we will be able to continue to invest in our young people. it is absolutely unconscionable for you to say to me that when i talk about passing mental health reform its reflection on them that their criminals. that's unconscionable and it's ridiculous. >> moderator: take you governor. reynolds: shias cut funding three years in a row. >> moderator: next question. >> we want to move on to labor laws. governor reynolds, the significant changes were made to i was collective-bargaining laws were done before he took office under former governor terry branstad. i'm wondering if you support those changes nonetheless and if you do why were the necessary? if you talk to a lot of teachers they will say the changes have done is make it hard for them to negotiate for the benefits. were the changes necessary? reynolds: what those changes did was brought taxpayers to the table and gave them a seat at the table. most importantly what it did is that provides schools and local governments the flexibility to manage the res