paul donovan, we have negative rates on the 10-year. to the idea of inflation being measured differently, particularly for the rich like prime minister cameron versus the poor. paul: absolutely. inflation and the quality has been one of the real features of the last 10, 15 years. as income inequality has grown, the basket of goods that somebody very high income is buying is more likely to be different than the basket of goods somebody of low income is buying. the basket of goods that you will have as an elderly person is very different from average cpi and it is going up in price, generally speaking, faster than average cpi. , ifcally, if you are rich you are young, you've got a very different composition of goods and services. if you are lower income or elderly, you tend to face a higher inflation rate. you need to be young and rich if at all possible. francine: news you can use. unfortunately, everything ties in. how do you prepare your clients for any eventuality? , the two key question key questions, our first, what is the nature of

joining us to discuss more is paul donovan, managing director at ubs. a very good morning to you. thanks for joining us. let's kick off on the big global story of the day. china gdp coming out overnight. it's clear things have stabilized there since the start of the year, both in term of growth and sentiment. what's the main driver for that improvement? is it sustainable? >> so i think it's quite clear the chinese authorities very definitely want growth to be comfortably over 6% this year. reform essentially has been sacrificed on the altar of a decent growth number. so what we're seeing is policy stimulus really coming through in these numbers. if you look at the credit growth numbers in particular, they were stronger than expected. that's feeding through into housing demand. that's feeding through into construction. the good, old-fashioned sources of demand powered by stimulus are really coming through. is it sustainable? well, it's sustainable for now. absolutely. it's sustainable for this year, maybe next year. on the five-year view, no. this is a bubble that is building. tren

trying to contain paul donovan's exuberance.t you and paul donovan together in london, he's insane. if i got the three of you together, the thing you'd agree with this as there is a new mediocre. what is the ubs prescription for the new mediocre? >> in the u.s., its higher rates. she kept talking about risks -- when was the last time someone accurately predicted the upside risk cost from something? overnight;happen good things happen over time. for her to be focusing on risks, 's only downside risks, seem silly, because we will never know the next upside risk is. tom: i think vice chairman fischer has been out front -- here's where we are. you are getting ripped up on twitter for your comments on this show, about the idea of -- raise rates, forget about the exhaustion is stuff like the international economy . if they raise rates in april or june, what's next for jamie dimon in tulsa, oklahoma? what is the knock on effect? >> there's the confidence factor. most americans think people in washington may know more than they let on.

paul donovan at ubs said earlier today that actually we know very, very little about either side's fiscalld you agree with that? >> no. >> where would you take us? >> i would strongly disagree with that particularly on trump's side. i've written about this as well. he actually has a tax plan. and it's pretty coherent. it's also pretty fiscally irresponsible. he cuts $9.5 trillion in revenue over ten years, and he claims he's going to hold a bunch of other stuff entitlements, defense spending constant. that means he'd have to unrealistically cut something like 100% of the rest of government, which isn't going to happen. so his fiscal plan is a wreck. hillary clinton is much more fiscally kind of moderate and has said as much. and i think she's probably believable in that sense. >> lanhee, cruz giving an announcement at 4:00 for those who are not going to be watching facebook earnings. would you pick a vice president this early on, try to shake it up? >> well, look, he clearly has to do something to change the dynamic. this partnership he formed with john kasich was probably too little too

donovan, brook top mass, katie fehlinger and meisha johnson with traffic. >> for kate, lesley and everyone here i'm ukee washington. >> i'm jessica dean. the late show with stephen colbert is next with paulkevin spacey. >> thanks for watching. good night, family and sleep well. good night, family and sleep well. ♪ >> stephen: hi. stephen colbert here. yesterday, the band pearl jam announced they were cancelling their show in north carolina to protest that state's controversial new law curbing l.g.b.t. right. and they're not alone. bruce springsteen also called off his concert there. paypal canceled plans fair new operation center. and even the porn site xhampster blocked north carolina users from their site. now where are north carolina users going to go for their porn? while i respect those artists, as an entertainer i believe it is not my job to deny you my talent. i believe it is possible to use the magic of television to bridge our differences. i mean, for pete's sake, even

donovan, brook top mass, katie fehlinger and meisha johnson with traffic. >> for kate, lesley and everyone here i'm ukee washington. >> i'm jessica dean. the late show with stephen colbert is next with paulkevin spacey. >> thanks for watching. good night, family and sleep well. good night, family and sleep well. ♪ >> announcer: if you're looking to make more money and take control of your personal and financial future, then get ready, because than merrill, the star of a&e's hit tv show "flip this house," one of the most successful real-estate investors in the country and america's number-one real-estate-investing expert has one heck of an opportunity for you. than is hosting a one-of-a-kind free two-hour real-estate wealth-building workshop where you will learn his three-step system for getting started flipping homes and buying and holding income properties. than and his team are currently looking for a small group of motivated individuals who want to work directly with his team and learn the exact step-by-step system he's used to flip hundreds of properties over the past decade. at this event, you will learn exactly how you can do this without needing money, credit, or any prior experie

the administration, signed by sean donovan, director of the office of management and budget, susan rice, the national security advisor, sets out, letter to speaker paul ryan, i'm going to ask unanimous consent to insert the entire letter in the record. the speaker pro tempore: without objection. mr. mcgovern: basically says that the existing appropriations is not enough. and this is what the letter says. without significant additional appropriations is umer, the nation's efforts to comprehensively respond to the disease will be severely undermined. in particular, the administration may need to suspend crucial activities such as mosquito troll in the absence of emergency supplemental funding. state and local governments that manage mosquito control and response operations will not be able to hire needed responders to engage in mosquito mitigation efforts. the ability to move to the next phase of vaccine development which requires multiyear commitments from the government to encourage the private sector to prioritize zika research and development could be jeopardize. i go right down the list on all the warnings here. this is a big deal. this is a big d