golub is a genius until september. we make fun of it, but it has been an extra ordinary run. >> there are a couple of things. the economy is showing signs of improvement. expectations are that we will have gdp jump from 2% over the last couple years. we think we will have $119 this year. $130 next year. percentage this year will go up 8%. next year, about 9%. >> this is critical. really important is thinking earnings over revenue growth. what is your revenue growth estimate? >> revenue growth has been about 4%. 6% over the next year. >> that is just critical. that is the heart of the matter. >> given all of that -- where are you most worried? we talked about investors climbing because there is uncertainty. what are you worried about? >> probably the biggest worry on investor's minds -- we don't know what the fed will look like. if inflation picks up, the fed will be forced to move faster. in my worried, probably not. >> is that priced in? >> it is probably priced in that inflation is tame. some people will love it. >>

. >> and as you can see that it the selection criteria was heavily weightd on purchase priel, golub had the highest prize for the site. and the next itest was boston properties at 135 million, and jay, poul at 115, and kill roy at 107, and golub received high scores for developer, experience, and they are the developers of lot six. and a residential parcel, also, in zone one, of the project area, and they are partnered joe and buck has extensive commercial experience in chicago. and they also were scored well for their dedication to meeting or exceeding the ocii contracting goals. >> and as i said, the proposal from the team, included a purchase price of 172.5 million dollars,., 665,000 square feet of rental office space and 550-foot tall tower and also includes the approximately, 15,000 square feet of publicly accessible and open space on parcels m1 and m3. and underground parking garage, for up to 117 parking spaces. and street scape improvements and including the extension of the street and the improvements on howard and main and beal street and the ground floor retail space of 5700

i want to bring back harvey golub.is a prominent republican voice. , the sameear that say --t, you >> the economy is improving. it is not even an interesting point. since the end of world war ii, in 90% of the years, the economy improved. does not improvement mean anything. we have had 11 recessions and 11 recoveries. the question is, how does this recovery and job growth compared to others? since the end of world war ii, the average growth in employment during that period has been 11.7%. it has been five years since the start of the recovery. this recovery is 6.2. in 6.2 generated 10 million jobs . if it was 11.7, it would have been 20 million jobs. 9 million jobs lower than average. this recovery is not even mediocre. -- thehanging fruit accomplishments they have made are the low hanging fruit. >> they have made no accomplishments. we have had gross, but when it is a 10th of 11 worse in job growth. off.ople are better look at the stock market. at the corporate activity. ceos are more competent. they are engaging in m

the problem is if you eliminated the corporate income tax, as harvey golub wants to do, you would createtive for people to convert their personal income into corporate income. we would all turn ourselves -- betty liu incorporated, right? yes., >> you would not pay dividends, they would be taxi and -- tax-free, and the government would not have any more money. >> it would create the biggest tax poll in history. that is why it has not been done until now. if you're going to have a personal income tax, you need to have a corporate income tax. if you want to get rid of both, you could go to a value-added tax, or something like that, but the idea of getting rid of the corporate tax, really not such a great idea. >> harvey -- we talked about this -- the 5% corporate income tax on how uncompetitive that is to other countries, but peter, we pulled up some companies that pay zero, or certainly much less than 35% -- and mark, gm, news corporation, for instance. on average, how much taxes to corporations here pay? >> item none of the exact number, but the u.s., but when you look at it -- >> i do no

perhaps that's one of the things gettingathan golub is at, it is percolating from the ground up. >> alot to cover on bloomberg "surveillance." go time for alibaba. the chinese company gets ready nyse.e its debut on the a look at some of the key businesses that drive its bottom line. we will be right back. ♪ 2017.ty until futures up 8. gabelli, a legendary value investor. we talk about janet yellen and your equity markets. this is bloomberg "surveillance." welcome worldwide, particularly in the u.k. an important day for those in the u.k. scarlet fu and adam johnson. >> important day for executives in china. china's biggest e-commerce company, alibaba, will be pricing its ipo tonight. thanoks more in revenue amazon and ebay combined. you need to know who alibaba's biggest competitors are. our reporter has spent years covering this company. we contextualize the businesses. one is alipay. >> alibaba spun that off in 2011, it is now owned by another parent company. interesting about this line of business, this is the largest online payment service in the world. pay goes that if ali 5%blic,

>> he said it is either me or harvey gaal of, and harvey golub went.very colorful character. >> michael holland, the company is going to earn about half of 2006 hi,arned in the six point $9 billion, yet the stocks go down 9.6%. >> i think the hancock assumption of the leadership role is probably something you would say all things being equal yes. >> buy aig. >> i do not own it, but if you ask me would you buy it or sell it, i would buy the stock, yes. what do you think? >> i cannot make any stock calls, michael, that is up for you. steve miller is the current chairman of aig. he will be on with us a little bit later on "in the loop." >> are right, looking forward to it. betty liu, "in the loop" at 8:00 a.m. coming up. is there a company you trust with your data? ♪ >> coming up tomorrow, michael wolff, a former yahoo! board member, will join us as guest host on bloomberg television and radio. that is tomorrow on "surveillance." this is "bloomberg surveillance." i am scarlet fu here with tom keene adam johnson. the band is back together again. our guest

tomorrow, the former aig chairman and outspoken republican party -- harvey golub.dition four-door sedan celebrating maserati's anniversary. a lot happening tomorrow at 8:00 eastern time. ♪ >> it is 56 minutes past the hour. bloomberg television is "on the markets." i am olivia sterns. let's look at where stocks are trading right now. the dow and s&p are little changed good this after a record high on friday. mastec in the green by about one third of 1%. let's look at what is happening on the treasury markets. treasury yields down a little bit and treasuries are rallying today, continuing the sliding yields we saw last week. last week was the biggest drop in yields for the 10-year since march. the bond market has been so lacking in volatility that investors are more willing than ever to reward wall street for new ideas. joining me is a renowned fixed income expert on the street. . read your story first of all, what jumps out to me is how investors -- haven't investors generally always rewarded firms for new ideas? >> no, absolutely not. it depends on how valuable th

former aig chairman, harvey golub, is in the loop. we will get his take.o avoid u.s. taxes -- are they being unpatriotic. mcdonald's out with its october sales figures. off three point 7% globally. that is the worst estimate. we will talk about the issues ailing the burger chain giant and its ceo, don thompson, who just celebrated his two year anniversary as ceo. here is a look at the top headlines. home depot confirms hackers broke into the computer system.

todayan golub joined us on "surveillance."has dropped , call it by about two thirds. meanwhile, cash has more than doubled. it is a total flip-flop. the question is -- how do you capitalize on it? we search for companies with the most cash who are paying it out with dividends and buybacks. >> you will have a at the top of the hour. 12:00,clip" starts at lucky you, and you will see that outfit i have been checking out. i am leaving set. "market makers" is over for the week. i will be back monday, and we will be talking about spending more than you take in. budget deficit. i am off. mitt romney's former chief advisory lanhee chen will be the co-anchor. you want to be here. ♪ now, it is cities expect the outcome of which means bloomberg tv is on the markets. chief market correspondent scarlet fu has more. ask thank you, stephanie. s&p down the first time in six weeks. retail sales increased at the fastest pace in four months, in estimates,conomists' boosting circulation that the federal reserve will start raising interest rates i

with us is jonathan golub.> great to see you, becky. >> everyone was nervous before me got to the fed meeting thinking we'd hear a different tone from janet yellen this week. we did not. that seems to have everybody off to the races again. how long does that last? >> first of all, i think that market run is going to keep going as long as the economy continues its recovery. >> so it's not the fed. you think it's the economy. >> let's be honest. the fed is dancing to the economy. it's not that the economy is letting the fed tell us what to do. and i think that we're not your 5.5 in a 7-year soil. i think we're in a 11-year cycle. we'll say how much further can it go in a year or two from now. >> what makes you feel so optimistic about the economy? what are the signs you've seen that make you think this is for real? >> i think there's a short-term issue and long-term issue. longer term, we've had really by far the slowest recovery we've had since the end of world war ii. inflation is low, we haven't had the kind o