is it that these macro credential policies won't work?is there a risk that the markets will actually price in an interest rate rise before the economy is ready for it? >> i think both are a risk. the case thatly macro credential policies haven't been tested before. this is new territory. fpc, the bank of england will want to move gradually on that. -- good as the recent growth performance has been, we have only had a year of it. they don't want to choke off the recovery at this stage. we do expect some action but i think it will be gradual rather than dramatic. the effectiveness of these measures are unknown. they will be, conscious of the strength of sterling which is contributing to tighter financial conditions. overwrite want to interest-rate expectations. i think a lot of the market sentiment going into today's and next week's inflation report is pretty hawkish. i wouldn't be surprised if relative to those expectations, the outcome is a little bit more dovish. >> what does it mean for pound? is there a danger it will keep on rising? a

macro it it there a correlation with smaller buildings for micro and large building for macro. >> it's interesting i've not seen anything like that unfortunately, there's no correlation what was available in technology 15 years ago when the micro antenna there's no macro sites there was no data as we can it today in streaming none of that and so this is in correlation we find what was assessor use permitted the antennas across the city under careers use for carries looking to upgrade their network as quickly as possible to handle the voice traffic on the old telephones as we know that thank you. do you see any hypothetical where that might occur if you're obviously feeding an even increasing demand for your technology is there retrofitting how to size and how you respond to choose particular buildings that are more suitable than others. >> that goes on behind the scenes you've seen the projects that's why the sites take 4 two or three years some buildings can take a more square penthouse some more creative and some scaled down we try to its a give-and-take to fill the gap and coverage

the use of macro credential but not much has been done.e is very little evidence norway, sweden and denmark that macro credential works. they are already behind and they need to do more. and know that the stock trade of your yields that comes through is still very much geared towards bank debt. where are you on that story? we are almost at the halfway point of the year. are you still as enthusiastic about various levels of bank that? >> i think banks continue to heal, continue to raise equity. that is very good for their strength. they are still not able to lend. they are deleveraging at a slower pace. we think there is around 800 billion to go. we are over two thirds of the way. that arehe best banks feeling now are the ones in the parade for a. the banks in greece, portugal. in core europe, they already trade very well. in the periphery, there is some more upside. >> we will get you back in. let's see how fake avon holds up. alberto gallo, head of european macro credit research at rbs. coming up, as manchester united prepares to release

caan before i lasciviousness into any slides i want to revisit the word macro it is large-scale. and this is a bearing on the topic at hand especially what's an appropriate building being there's no published guidelines on a case by case bays basis so we laboratory this to see how big a building should be we look at the diagram and we pulled sites information. we found as right is a barrier it measures 26 by 8 feet smaller than a lost size it's completely hardware we we looked at the building area and found the comfort hotel is ten times more massive it's 13 times more massive by and large their it major corridors like van ness and lombardy. we don't have to cherry pick when you average the numbers you find the average building area is 44 thousand square feet that's 7 times larger and the parcel area is 13 times >> so the above the blue and windy sea it's not in the league it's two small let's look at other photos. number one is the contestant in hotel a project of 40 units and number two is the office building that has ground parking garage 6 stories high macro 3 is on polk stre

is going to be difficult to see that continuing, particularly if we do see a macro pickup. we are starting to see that in continental europe. we have artie seen it in the u.k.. i think we risk seeing that as well in the u.s.. we risk having gdp growth of around three percent. it is not spectacular, but think it would be enough to stop bonds from falling further. >> when do we really start talking about the u.s., to talk about imminent rate hikes? what i say imminent i'm talking within six months or so. is that coming for later in the year? >> i would say so. at the moment, the trends in overall inflation are not at all anywhere. clearly, not in the u.s.. they're actually trending down. one of the prime components of inflation, particularly core inflation in the u.s. is housing. janet yellen cited housing as one of her worries. >> exactly, it is weakening. contrast to oversee your new u.k. where the bank of england are thinking about using a macro prudential measures to try to tame the housing market because they don't want to touch it. their doubts about macro or micro prud

do have positive macro economic data.news out of ukraine and the geopolitical tensions and not the fed qe taper so what's going on in the markets? >> do we lay this to earnings to some degree, christine? how have they done so far? >> lackluster. >> it's really been a mixed bag. 66% of companies have beat their estimates, and that's in comparison to 64% historically. >> so the estimates have come down. >> analysts have certainly lowered the bar but higher on the beat weight and i'm talking jpmorgan, the bank of americas, where you're seeing the biggest misses and why you're looking at low single digit growth for 2.6% in the third quarter. >> do you want to start thinking about putting these on a shopping list. >> right when the valuations are a little bit cheaper. again, i think right now, pretty irrational today. markets can remain rational longer than you and i can remain solvent so though i don't follow keynesian economics, i think that's something a broken clock is right, what, twice a day. >> so i've heard. >> we're n

michael is chief investment officer of the macro fund. you're going to be on a panel tomorrow discussing the challenges to the macro fund managers out there. and it's been a challenging year when you take a look at the performances including your own fund. let's talk about the trend. it's been a low volatility run so far. how do you manage this? mg >> it's difficult. i think the s&p has been plus or minus 3% most of the year. a 20 basis point range. markets are easy for macro when trending and difficult when their not trending. the idea is to have less chips on the b table. to bet less and wait until the game shifts and it always does. >> in terms of what's going on in the yield environment in credit, there's been talk in this conference so far of how portfolios are managing this environment and whether or not there is a credit bubble. we have heard various rumblings that there's a by goieginning o credit rumble. what do you see? >> we don't see a double. the banks are fortresses right now. no pun intended. they have much smaller balance

about macro. now i get the opportunity to do that within the investment committee and also i get to write, and i'll do it with clients. so for me, it's back to camelot. >> so bill, we hear that you're pretty happy. and you've been wooing him for some time. so what are you hoping the poll can do for pimco? >> well, mandy, paul mcculley is known as mr. shadow banking, mr. minski moment and frankly here at pimco, he's been our paul revere in 2006 and 2007. he warned us about the housing crisis in true minsky fashion, talking about stability flipping into instability. i credit paul with preserving billions of dollars of pimco client assets, and frankly, our growth in total return fund which climbed over $200 billion two or three years ago, i credit paul with a lot of that growth. you know, welcome back, paul. his macro, his anticipation of the event in 2008, 2009 could well be repeated going forward in terms of his forecasting. >> all right. the niceties are over, paul. the world wants to hear -- beca

the macro isn't as bad as people think. you see that with the improvement in china's data.he amount of risk premium that has been put back into these markets over the last year has been quite substantial. you are being compensated for the macro risk you are taking. >> we are going to leave it there. we have cover the world. right to have you with me. jim mccormick at barclays, thank you so much. take a newe -- parliament. voting starts in britain today and will continue across europe as eu residents hit the polls for the first time in five years. hans nichols joins us now to tell us a little bit more. context for me. i know we have had the indians go to the poll. that is huge. this is the first time in five years that europe speaks. logistically, india is slightly bigger. this is a massive undertaking. this time is different because voters aren't just electing a new parliament, but they are -- headse to have some of state of each government will be bound. unclear, onnt is when they select the next eu commission president which is where the real power resides. some challenge

chris, a founder of macro advisory. he joins us from moscow. good morning.ainians now have the money thanks to the imf. are we going to see a deal? >> i expect that we will see a deal. there is a lot of pressure coming from europe, from germany . talks are taking place in berlin. the germans are pushing ukraine to use some of the bailout money. in total, ukraine probably has billion between the imf, euro and the bond issue. they are using some of that to pay down the extending debt and put pressure on both sides to come up with terms of agreement on a new contract. nice that the imf and eu can help support ga zprom. >> i guess from the russian perspective, this is a highly politicized dispute over unpaid utility bills. depending on which side of the political divide you are on, it comes down to the fact that the gas bill hasn't been paid. the existing contract is clearly unfair to ukraine. they need to pay down some of the outstanding debt. also there needs to be a renegotiation of the contract. that is the issue on the table the terms of that new contract.

to write about macro and i like to speak about macro.cations, trying to make money. i think that is a pretty good description of what i try to do at that meeting you're talking about. >> we see the amazing bond market this weekend. >> first, do you like to think about macro? i know what you did in your time off, because we did some of it together. but what did you learn in your time off that you should bring back to pimco? serenitys a certain about life, i think it brought home the notion that in the marketplace you have signal and noise. the real money and politics should be driven by signal. have au actually preponderance of information telling you that you should either change policy or change your positioning in your portfolios. of looking atngs screens for 24 hours a day seven days a week is you get a lot of noise. game has of the allowed me to focus and look for the signal and not be distracted by the noise. many times, i wasn't looking for it. >> there's a lot of noise in the market right now. what is the signal their? re? n >> th

they implemented macro credential talks last year. highlimited the amount of loan-to-value mortgages. it worked to some extent. guess what it did six months later. they hiked. it doesn't put off the hike forever. this year we are talking about the fpc doing something. it doesn't mean you're not going to get it. there is already disagreement on the amount of slack in the economy. we can see it. it is in the minutes. when they meet today, it might not be in the vote but in the beating itself, i would love to be a fly on the wall. another thing we have got to talk about is next month. what we get is a change in the composition of the mpc. i have talked to a lot of educated people about this. how do they vote? does anybody know? there is a lot of unknowns. things get very interesting for us. >> does that depend on the aggressiveness of the policies? what new zealand it, the governor was saying it was like having a peashooter to deal with a bazooka. aggressiveon how they are with the policy. >> there is one issue. there is a supply problem

his relationship with dido, with his family, with the world, with his country -- >> it is micro and macrothe very important climax of the movie actually involves all three of the main characters. , didomantic lovers herself and her father. we had to shoot that eight hours after my own father died. for me, while everybody was telling me this must be a love story, i said it must be a paternal love story too. i wanted to pay a much -- homa ge to my own father. he died in my arms and eight hours later i am shooting the scenes. the ground is still moving underneath me. it is a different world for me. i am doing this through tears. what it meant was that we all came together in knowing that moment when lord mansfield is about to make his decision, that this apart from being this macro decision that is going to affect the world, has to be a decision that is also about this father who is trying to just -- he is just a man trying to raise his daughter, and trying to navigate her through her upbringing. about, is he going to give this gift of validity to his child or is he not? i am honoring my own

you look at a macro context and more liquidity. why not?manager, it has gotten cheaper and that is why we are seeing volatility come down. >> is this another way of saying that the investors are less behravesh? bearish? >> it is not to say that fear is not there. they are still buying and. 10 mostook at the top popular options out there. >> here is that. is narrowing.s absolutely. ok. we have possible market deregulation and a regional bank in play. >> a lot of these things. changes that are needed. >> even increasing the number of baseball teams to get more into the stands. >> it livens the regional economies. >> there you go. why not, indeed. general electric will keep nuclear options and agreed to extend the deadline. the french government had asked for the delay. the nuclearsed industry. let's take a look at some news this morning. that is growing concerns the big deal may stall. we are talking about the bid. today is the deadline. billion deal could be abandoned for now. they declined to say if they will try again. a court has removed

ofyou think these sorts macro-prudential measures are imminent?e verbal intervention, we are already getting some senior policymakers and the next stage would probably be a tweaking of the parameters and they might lower the ceiling or potentially give it this focus and beyond that, they have to consider the toolkit and what other measures they might be willing to introduce notwithstanding the cyclical -- >> will it work? the ecb has a doubts that it could slow down the housing market. >> micro-prudential is a relatively new policy setting. nobody knows whether it will work but they need to try and experiment. >> joshua miller, senior economist at rics, thank you for coming in. >> picking paris for the global unveiling as being -- of the new phone, the ascend. >> chinese cell phone maker huawei watching a new cell phone in paris. paris is a fashion city. europe will always be our key region. >> this new handset will compete with the latest iphone from apple and galaxy from samsung. the ascend p7 is slimmer with an 8 megapixel camera to keep those

we heard from ken langone, there neurorabinny is discussing the macro information.e have general david petraeus with prime minister tony blair being interviewed by the judge. it's the judge, the prime minister, the general, and i got it in right order, because we know how important the judge is. the good news is we promise to be back on the air with live ideas, actionable stories, and things we can help you as it relates to investing over the course of the next eight to 12 months. >> the timing, guys, seems fortuitous in that there's something going on in the markets when the smartest minds in the markets are meeting here. you'll get a high-level view of what is going on on wall street on a day, josh, where the ten year yield is below 2.5, or about -- or just above 2.5. so people are really concerned about what's happening there. you have the diverging markets of small-cap stocks and high-growth names that have been peeling back at a time when the dow jones industrials average is at an intraday all-time high almost every day. >> and you see the investor class reacti

we will talk about all the macro items on the agenda for your week ahead.tay with us on countdown. ♪ >> we have got numbers from an beat us. -- from adidas. it is a shade below the estimate. , 204ng at net income million euros. they are talking about sales increases in nearly all regions, highlights from the fact that you take into account what is happening there have been some negatives. we will have further analysis a little later. >> central banks keeping interest rates low for a long time is apparently too boring. the billionaire investors need to pop some viagra to keep macro investing interesting. to european bank is going pick that up. joining us is jeremy. >> this is a tricky one. anyhey certainly didn't pop viagra this morning. quite fighting how markets determine where they will go from here. -- i thing how the market determine where they will go from here. i think there is a case to be .ade the currency is overvalued. the market should continue to push back rate hike further. when you look at things like the trade numbers, which were a little on

. >> that came nearly from a camera test i was doing with a macro lens. i needed a small object to photograph. i picked up a key chain and approach and how i would any of my celebrity portraits. >> you have a "star wars" storm trooper keychain. ok, just checking. you start photographing that. >> the image spoke to me. the figure came to live. i started playing around with it like toys again. i thought, what if there was a little man in here? i did a series of x-ray storm troopers and darth vader. from there, the creativity kept flowing. >> what has been the reaction so far? the fans of "star wars," the fans of lego. then fans of your work. >> it has been amazing. i never would have imagined this kind of reaction. when you do something that personal, i love the work. to see other people having this kind of reaction is great. >> you are a commercial photographer. in addition to doing the stuff you love, you love to do commercial stuff. that feeds you. >> when i was doing lego wars i was having a dry spell creatively for my personal work. nothing was clickin

lower end home builders, there would probably by some granularity, but i was trying to bring across a macro view. >> so if that's your outlook for housing, for a guy who looks at reit rates, and the ten-year since at 260, how low is it going? >> we talked last year, we talked about -- and topped out? the very low 3s. interestingly it was the last day of the year, was the peak, and it's been falling a bit since then. without having too much economic weakness or without too much difficulty in the world, we would probably see the ten year making it down to a type of zone. we got pretty close to that a couple times. we were at 257, 256 last week, so it's getting close. my viewpoint is to get through that level, you probably would need a psychological shift and some sort of macro event to make investors really want a flight to safety. the investment value down in the low 2s is pretty dubious. so you really need it to be an alternative away from other risky things. so maybe a really hard slowdown in china could cause a change in attitudes and deflationary fears. maybe hotter situation in ukraine

the macro news, reply call news out of ukraine was actually very positive, certainly a and. >> we'll leave it at that. gentlemen, good to see you. jack, come back soon. we miss you. >> i will. >> ty, up to you. >>> sue, china firing another shot. eamon javers is in washington. eamon? that's right, the chinese government putting a lot of pressure on big-time american companies. i'll tell you who's involved when we come back. when we come . we're moving our company to new york state. the numbers are impressive. over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation... with 10 regional development strategies to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no taxes for ten years. become the next business to discover the new new york. [ male announcer ] see if your business qualifies. become the next business to discover the new new york. you need to see this. show 'em the curve. ♪ do you know what this

they have decisively moved lower even as the macro data has improved. it's the talk of the town. >> even as inflation numbers go up, it's counterintuitive. is the stock market bracing for a curveball that it wasn't expecting, a report showing a big jump in inflation on the wholesale level is raising those eyebrows and concerns that if inflation really is starting to rear its ugly head it could change everything for stocks and the economy. we will take a closer look at that story coming up here momentarily. >> also ahead, more problems over at the irs. paying out $13 billion in tax credits to people who weren't qualified to get that money. the problem so bad that one in four payments shouldn't have been made, and this has been going on for years. why hasn't it been fixed? larry cud lowe is coming in and weigh i weighing on thoughts. >> and the flap over flappy bird. so addictive that its young vietnamese create ore pulled the game because the pressure, he says, was running his life even though it made him a multi-millionaire almost overnight. what was he

degeneration. >> macro degeneration, a tragedy we do have off the most is carefully following people with macro degeneration but i can't speak to the exact screening procedures that are developed for those patients but -- >> i have a concern because you know, i worked in a va hospital and it's tough to staff many of these clinics with ophthalmologist. they have a hard time getting people. are you aware of any of the procedures for hiring local ophthalmologists for staffing va centers on a part-time basis? are you familiar with any of that? >> i'm a former chief of staff in salem virginia, and it was our experience there that we did try to hire full-time ophthalmologists, or we would ask for people to come in on a contract basis. because we were an academic facility, we have a strong partnership with the university of virginia and were able to recruit people effectively there. but i'm aware that other institutions to have contracts for folks to be hired. >> i'm concerned because some of my friends are optimal just that work at the va, and they are concerned with the fact that padilla

. >> we have more macro economics mac question, wiseguy. >> i got a little carried away.ght today as macro friday. >> our single best chart is actually one of tom porcelli's charts. we want to bring you our reporter question of the day. who is this week's biggest winner and why? -- wicked strong in the kentucky derby. name two days after the boston marathon. >> i like that. >> tweet us @bsurveillance. we want to hear from you. ♪ >> good morning, everyone. as we go into the united states, 8:30 this morning, a report in the april jobs economy. with me scarlet fu and adam johnson. let's get to our top headlines. >> ukraine will be at the top of when president obama speaks with angela merkel. it is putin's first trip to the white house in almost three years. there was a press conference, it will be at 11:40. bloomer will take that live. malaysian government said no one is should've alarm about the missing plane for 17 minutes. he described the confusion in the first few hours after the mystery first made itself apparent. ne hour after the plaintiff disappeared, they told air

joining me is chris weaver from macro advisory.every few weeks we say this is the most dangerous period since it started. >> i think we're getting right into it. as phillip mentioned it, friday is the may 9 victory day celebration, hugely symbolic. president putin plans first visual visit to crimea also directly after the red square parade. so a lot of emotion this weekend. and of course also the separatists are planning or have been planning to hold a referendum on sunday to ask people to vote independent. so i think it's clear that the key he have government is trying to make sure that doesn't happen and that they have a greater degree of control in the region before this very tense important weekend. >> interesting comments from general breed accoulove saying now thinks putin can achieve his aims without having on send in official troops across the border, ie what is going on at the moment serving his purposes perfectly. >> this has always been our position. we never thought and hearing from talking to people in russian governme

is there a macroeconomic analogy for someone who does that on a macro- scale? they make decisions on the money supply, periodically on the basis of what they observe. >> given how hard it is to make any policy response to any of these reports, the idea that over time we would constantly be a hard sale. we'll have more when we come back after this break. this is inside story. rebuilding the dream on real money with ali velshi on al jazeera america >> we want to emphasize to the public this is not some distant problem of the future. this is a problem affects americans right now. whether it means increased flooding, greater vulnerability to drought. more severe wildfires. >> welcome back to inside story, i'm ray suarez. that was president obama talking about the new national climate assessment. on this edition of the program we're discussing the report and the obama administration on climate change. isn't it prudent to start doing some things that will have positive benefits even if it turns out not to be as bad as some of the dire predictions say. there is very h

there are is certain finite scavenge that's a zero-sum game if you increase the size of the streets macro them widely by 36 percent that square footage has to come from somewhere else correct. >> yes. the square footage if you're accommodating it you will reduce the size of market rate and affordable housing and parks in the project. >> or cutting back sidewalks. >> that's correct. >> okay. thank you. >> all balancing yes. okay. so into the project documents. as supervisor wiener just indicated those cross sections are contained in the infrastructure plan the infrastructure plan was developed in the 2007 to 2009 period and then brought into the infrastructure plan. and finalized and folded into a set of documents that together make up the shipyard candle stick entitlements. i'll talk about the entitlements as and relate to the street width. first, the general plans of the area plan detect to 3 one for hunters point shipyard and another for the candle stick site called the bayview hunters point plan those establish the type of development within the land use district and establish the basi

if you have a lone or credit card and hopefully that preventing a more macro crisis to your point. john, i appreciated the article, tweeted it out last night. john, a pleasure. thanks for coming on the program. >> thanks. >>> the author suggesting testing a homebuyer's literacy with an exam. three questions, that is it. so throughout the show today, we are going to ask you the view, and see if you would pass. ready? question number one. if you had $100 in a savings account and the interest rate was 2% per year after five years, would you have more than 102, exactly 102, or less than $102. reminder, the answer and the other two questions coming up. >>> stead ahead we're talking taxes, job, and the great larry kudlow will join us live and address a moment i had on msnbc this morning. >>> we're also doubling down on the phone today with two mystery charts. here they are, side by side. can you name these? tweet us. here's your hint. they are the best and the worst performers in their asset class so far this year. the answer, when "street signs" returns. ♪ ♪ (man speaking jananese) >>>

is there a macroeconomic analogy for someone who does that on a macro- scale? they make decisions on the money supply, periodically on the basis of what they observe. >> given how hard it is to make any policy response to any of these reports, the idea that over time we would constantly be a hard sale. we'll have more when we come back after this break. this is inside story. the performance review. that corporate trial by fire when every slacker gets his due. and yet, there's someone around the office who hasn't had a performance review in a while. someone whose poor performance is slowing down the entire organization. i'm looking at you phone company dsl. check your speed. see how fast your internet can be. switch now and add voice and tv for $34.90. comcast business built for business. could mean less waiting for things like security backups and file downloads you'd take that test, right? well, what are you waiting for? you could literally be done with the test by now. now you could have done it twice. this is awkward. check your speed. see how fast your inte

at the macro -- microlevel, firms are starting to wake up to the fact it undermines their bottom liness well. in march, mcdonald's filed with the sec and listed income inequality as one of the primary risks facing their own returns over the coming years. not just because workers are striking cover of because they're having a hard time satisfying their customers because they have underinvested in the frontline services that really build the brand and provide revenue. >> how do you respond to the company say, all right, if they increase the workers rages but the consumers have to be willing to pay more for the burgers? >> firms have a lot of ways they can pay for a raise. they don't necessarily have to pass the cost on to customers. they could do that, but they could also use some of the ways they're redirecting their profits right now. firms like donald spend billions of dollars a year buying back their own shares of company stock on the market in order to consolidate ownership and buffed up earnings per share. that is a short-term the interest of the firms. if that a longer-term perspe

is there a macroeconomic analogy for someone who does that on a macro- scale? they make decisions on the money supply, periodically on the basis of what they observe. >> given how hard it is to make any policy response to any of these reports, the idea that over time we would constantly be a hard sale. we'll have more when we come back after this break. this is inside story. >> how old are you? >> 9 >> child labor in america >> in any other industry, kids need to be 16 years old to be able to work. you don't see any of that in agriculture >> low cost food >> how many of you get up at 4 or 5 o'clock in the morning to go out to the fields? >> who's paying the price? fault lines... al jazeera america's hard hitting... ground breaking... truth seeking... >> they don't wanna show what's really going on... >> award winning, investigative, documentary series. children at work only on al jazeera america the news, go deeper and get more perspectives on every issue. al jazeera america. >> we want to emphasize to the public this is not some distant problem of the future.

>> i will not comment on macro events that are not my domain of expertise.in managing our own exposure in terms of currency fluctuations. that is something that is very much under control, as far as i'm concerned. find that from our perspective, we can adapt to changing circumstances at the macro level in the most efficient manner. >> great to chat to you, thank you. lucent cfo speaking to us from paris. these are the bloomberg top headlines. ukraine's leaders say they're ready for peaceful dialogue with representatives in eastern regions. >> you asked your guest, should the european central bank act? you will struggle to find a bank that is not calling for action right now. mario draghi turns around and said we are comfortable acting in june. they use this meeting to discuss the one coming in june. june 5 is the date for your diary. start of the q&a to defend the central bank's independence. next month, he will be defending their right ability. if they do not act, the credibility will be shattered. can they deliver? will they deliver? what will they deliver

the change in the outlook for the beer category is driven by the more uncertain, more negative macroent. anng into the year, we had assumption to gdp in russia would be between 1.5% increase in now we are assuming flat tdp for the year. -- gdp for the year. we are saying the worst outlook for russia, we will be able to compensate so we can still deliver the same underlying performance as a business. because of worse currency exchange rates, the russian it will be a low single digit increase. >> in terms of the weakening ruble. do you have to raise prices to counter it? a gives an advantage to some of your competitors. >> you can only do so much on consumer price without risking significant negative impacts. precautions to cover the increases. then we have to take some to cover the general inflation in russia. it is very limited what we can cover in terms of exchange rates. >> you are a pretty big brewer in the ukraine as well. how are you monitoring the situation? what are you hearing from your guys on the ground? we are in very close contact with our colleagues and ukraine. -- and u

there's two macro -- two issues in the macro world. one is china, a property bubble? and i'm more positive there than others. and the other is the geopolitical risk around the ukraine. that's why there's a lot of money on the side. what are you going to do? it's earning .1%. i think stocks will go again in the summer as the market gets used to the risks. s&p breaks 2,000. >> i'm going to come out on the bullish side. paul, you made good points about the risks, whether it's china slowing down or ukraine, but you know what? we feel those are containable. even china, which i know some people will disagree with. there are two key things going for small caps. you have a u.s. economy expanding, so the demand is there and it's pan-industrial, going across all industry sectors. the other thing, we do a lot of work with small caps, is where small caps get in trouble is when banks stop lending or the capital markets freeze up. that's just not on the horizon. i don't mind throwing a hostage to fortune by saying that, but no disruption in the capital markets at all, which is wher

. >> but david, what about the macro back drop? you've got barclays saying q1 gdp is tracking negative. what does it mean for earnings and for companies like the ones you've been talking about? have we got a contracting economic environment? not everyone agrees with that, but at the very least, a slow growth or potentially contracting economic environment? >> i pay a little attention to gdp and the economy, but i don't think that's the key factor that's going to determine the path of the stock market. it will be what's going on with corporate balance sheets, corporate cash flow, which is growing in the high single-digit range. earnings generally surprising to the high side as well as revenue growth. that's the right type of macro backdrop that i think offers itself to being sos, doesn't give us that 20% bear market that i worry about. the 10% correction, i'm not smart enough to make that call. but in an environment of high single-digit rates of return and a cash-flow-rich environment, stocks are going to outperform traditional bond

the global macro recovery is gaining which should help support profits.vered double digit returns like we saw last year. valuation, it is simple. value -- valuation our fair value. more importantly, not valuations that cause a downturn is anyway. it is recessions at commodity price spikes and aggressive rate hikes. say would counter back and you potentially have a geopolitical concern which could interfere. somenited states is were -- is a worry some. -- worrisome. perhaps with their presumptive. >> it will not always be rosy. the most recently lordly gdp numbers was written -- most recently released to gdp numbers were down. three percent growth overall, that is not a bad scenario especially with the low inflation. kind of hight, single digit kind of return environment with more expansion. >> money is going to remain cheap. when you talk about rates and fixed income, and was web and we have -- and what been running talking about the shift. 11 months lows. this for more on certain -- parity for more uncertain quarter within the portfolio? >> we do not thi

>> i don't think it's our macro enemy either. people can buy things of good quality and walmart for very low prices and like the ones owned and ancestors out of business are hurting them. that's not necessarily a bad thing for americans. good for americans to be able to buy things cheaply. >> adam, what do you make of that? >> i would just put a slightly different twist on it. of course it's concerning. we want it be creating businesses. but the more important gauge is overall employment. people who don't operate small businesses any more get jobs. we're not doing enough to stimulate jobs, but we are experiencing job growth. >> you need to look at all of it. >> what do you think ge is hiring here in the u.s. or china? >> i can't believe that your work participation is at a 35-year low. that same chart we're talking about you look at the only time it had a huge jump. '81 to '87 who was president then? ronald reagan. iftrust rates were higher. think about it, you can buy an $800 laptop and start a business. interest rates are low.

more important is the fact that the fundamentals, the macro fundamentals of thailand still remain quite strong and should provide a buffer to whi. the country has foreign exchange reserves of 170 billion. at the same time, its external debt is very low, about 6.5% of gdp. one of the lowest rates within the emerging market. again, these are significant buffers that can with stand more pressure going forward. >> all right. let's also talk about the impending presidential elections in ukraine. talking to julia earlier, really getting a picture that the sentiment is waning or the support for the separatist is waning. and also russia is taking a softer stance vis-a-vis the ukrainian elections. so once the elections are over, what are the next steps again to be for the ukrainian new government? >> well, clearly, it looks like the elections now are going ahead on schedule. tensions have moderated. the rhetoric has come down from both sides, however, there are a number of key issues, quite important issues that will need to be resolved. they will come after the election date. most importantly,

people who are presently there, but as we have seen with real estate prices and all kinds of changes, macro economic and macko and micro in our environment, neighborhoods can change socioeconomically very quickly and then we have a bunch of controls that a previous group has encumbered the next generation. i don't know -- i'm obviously expressing my free-market tendencies here. [laughter ] >> you are exactly right, because the neighborhoods are changing and they will continue to change. >> and the , in fact,that new groups -- often advocate for change that ultimately is to the benefit of the neighborhood. you know, you look at a place like dog patch, used to be an industrial neighborhood and a lot of people move there had because it was untouched and nobody would bother us here and now you have a whole new generation of people that want changes that are family-oriented and changes that are non-industrial and they want changes that don't necessarily favor businesses that have been out there and thriving and now being pushed out. so i think it's just -- and this transformation is happening ve

. >> chris joining us from macro advisory. up next, we bring you an exclusive interview with richard holmes. stay with us on "countdown." ♪ time for today's company news. according to people with knowledge of the matter, the company is evaluating offers for its plant, including one that divides ford with steel. they might receive as much as 1.5 billion for the asset. shareholders and swiss politicians push for his resignation over whether the bank helps americans avoid taxes. investing at least $2 billion in pfizer pharmaceutical. -- in biopharmaceuticals. i'm an edwards. anniversarythe 10th of the standard chartered great city race. richard, thank you very much for coming in to talk to us. we're going to look ahead to the race. it is going to take place later on in the summer. let's start with the race. it takes place in july. hot time of year to be running. tell us what it means for standard chartered. >> we have about 6000 people signed up already for 400 companies in the city. bankers, lawyers, journalists, inclined -- you

what was noticed before the public today, in terms of what we were talking about, this particular may macro site and if we go in another direction, that is a different process altogether and they will have to follow a brand new application and start all over again and so i just i think that we can say loud and clear that is our desire and work with the rec and park and i have served on the review committee as the commission and that is a show of its own. >> and to say the least. so i would not, and i would not suggest and i don't think that we are going to solve that problem today and i don't think that rec and park is going to, you know, just because we asked them to, do any more did you diligence on this, especially if they are under going renovation of the pool and it takes three times that the civic review process to review a project and there is a three step process to that and i would just say that it makes knower sense to go this route and knowing that at&t that the people in the community perhaps and in they have the sites on the pool and but to know and when you talked about that,