director of transportation, director of parks, the board of education director, vince courtney, who jim paulsen. we would also like to welcome our business associates and colleagues today. of course art swanson from the small business network. thank you for your commitment and for working with us to events are common goals. -- to advance our common goals. we could not sponsored today's key events without sponsors, so i would like to start by recognizing our presenting sponsor, j. p. morgan chase. we want to thank our host sponsor, pacific gas and electric. dignity howff, kaiser permanente . thank you to all of our sponsors. i am supposed to wait six seconds so everyone can read this list. have we screamed through that? it is quite a long period -- quite long. united airlines, union bank, and our media sponsors, the san francisco examiner and hers media services -- hearst media sponsors. thank you very much. i could not do it without you, so today we celebrate the successes this chamber has accomplished and the promise of greater successes ahead with our team this morning of prosperity, business

by jim paulsen. i am the executive director of the san francisco labor council, and we have over 100 different unions in the public and private sector, and we represent workers wastith sciu, and i did not realize the hearing was today until i was reading some of my e-mails and talking to a couple of representatives, but i want to thank you for having this hearing. one thing i did find out is it has been five years since there has been increases in nonprofits. i understand budgetary increases, but it is these nonprofits that are being strained at the seams, so i am asking that there are line items of are going to be putin to rectify what sounds like a breaking point on a lot of nonprofits. goowe have got to take care of e community. good >> i am a clinical case manager. >> i am the director of juvenile justice services at the center for criminal justice, a nonprofit organization based in san francisco wo. we have provided services since 1985, some of which have become models for the nation. this city

joining us with his thoughts, jim paulsen, chief investment strategist at wells capital management. jim, good to see you again. welcome back. certain a remarkable first quarter for stocks, as i mentioned. the best since 1998 for some market averages. do you think this run continues into the second quarter? >> i think it will, bill. i think we're going to get a correction at some point. one thing i think to keep in mind is the markets really come up a lot, as you said, but it also went down a lot last year. and in a big way, the first quarter was about a reversal of the decline we had last year that was based on two unfounded fears about an imminent u.s. recession and about europe blowing the world up that proved unfounded. and so we kind of came back to where we were. so i don't know if the markets are as overextended as we think based on how far it's come up here in the first quarter. i still like the relatively modest valuation that we have, the relatively low interest rate hurdle, the excess liquidity that's out there, the underownership by a lot of investors. so i do think there

paulsen, rebecca brook, now the culture secretary, when is he going to realize -- now he is flip-flopping all over the place on it. the closeness between politicians and media proprietors has been going on for years and this government is going to sort it out. whether it is a proper regulation of the press, whether it is cleaning up our financial system, whether it's dealing with our debt, i don't shirk my responsibilities, what a pity he can't live up to his. >> order. >> thank you, speaker. if my right honorable friend brings good news to the manufacturing and engineering secors in lincoln. we've seen an increase in turnover to around 70.5 million , confirms a circa 50 million investment and they are involved in the first new engineering school. what -- would my right honorable friend accept my invitation to visit for himself and see the excellent progress? >> i'm very grate to feel my honorable friend for the invitation, i will try to take it up. what is happening in our economy, the very disappointing news today, but underneath that, there is a rebalancing that needs to take place and

. >>> let's go to steve paulsen, there he is. >> inland temperatures are moving out.ighs today show a big difference and this almost looks like a summertime pattern, already to 80. >> traffic looks good heading out to the mcarthur maze, we just spoke with the cal strands traffic manager center who said they had been having problems, as a matter of fact they had to operate it by a computer and that may cause some slow downs. this is a look at the san mateo bridge and that traffic is moving well. at 5:31, oakland police are looking for two men who ran away from a suspected stolen car. you can see here, our camera was on the scene just moments after the early morning crash and the honda sedan took out several bushes just a few feet before the stop. the passengers ran away. >>> we are having police look for suspects in an early morning shooting and they just food condition about the shooting of the victim, good morning. >> reporter: is he undergoing emergency surgery as we speak. now when richmond police arrived you can see they found a man inside the car and investigator

let's head over to steve paulson to look at the weather -- paulsen to look at the weather. >>> thank it didn't last too long but when it was here it gave us some brief heavy duty rain. lots of standing water and things have calmed down. just a little bit now the backside is popping up over to richmond and berkeley and the east bay is out towards bethel island and also moving south closer to gilroy and watsonville. as least for now, the damage is done as we say, right sal? >>> yes, it is done and you and i were talking about how lucky we were that it hit when we first got off the air, it seems to have been raining cats and dogs. westbound traffic is moderately heavy but it is heavy in antioch though. as you move to oakland, those roads are clearly wet but it looks like the rain temporarily at least has stopped. we do have a storm watch on the way and lorraine blanco is at the scene of a crash in san jose, 0 lorraine, what do you have there? >> reporter: well, sal it looks like the wet weather may have been a factor and trucks are attempting to pull that car out of the ditch when we ar

[applause] >> hello, ken. >> i'm ken paulsen.overnor romney has graciously agreed to answer some questions. these are from all across the country. we had a special guest here yesterday who had some views. president obama said the republican party has gone so extreme that ronald reagan could not win a gop primary. i know they you took a look at the president's remarks. did you have a response? >> i think ronald reagan would win handily in a primary, and frankly, in all the primaries. i think our party is intent on preserving the vitality and dynamism of the american spirit that i think is being deadened by a series of government programs that have been increasingly in evasive and have attacked economic freedom. i look at what the president said. there were so many things i found to be distortions and inaccuracies, and it is hard to give a full list, but let me try. he looked at the budget and said if we were to pass the paul ryan budget, look at the terrible things that what happened if we cut programs and a proportional basis, bu

. >> i'm ken paulsen. governor romney has graciously agreed to answer some questions.ecial guest here yesterday who had some views. president obama said the republican party has gone so extreme that ronald reagan could not win a gop primary. i know they you took a look at the president's remarks. did you have a response? >> i think ronald reagan would win handily in a primary, and frankly, in all the primaries. i think our party is intent on preserving the vitality and dynamism of the american spirit that i think is being deadened by a series of government programs that have been increasingly in evasive and have attacked economic freedom. i look at what the president said. there were so many things i found to be distortions and inaccuracies, and it is hard to give a full list, but let me try. he looked at the budget and said if we were to pass the paul ryan budget, look at the terrible things that what happened if we cut programs and a proportional basis, but of course you would not cut programs on a proportional basis. some programs would be eliminated all right, obam

what the government did in stepping up and i call it taking a stake in america, i think what hank paulsenid at the time, which you covered andrew, put a floor in the bottom, made as soon as to me. >> that part made sense. >> what happens if there is a tightening in the fed? >> you mean fed funds rate goes to 2%? >> maybe. >> what if they just start cutting down the balance sheet and letting a lot of the stuff roll off? >> we'll have to see. i mean, do you think that this federal reserve has it in its dna to rapidly take away the easing? i don't see it. i've never seen that from this fed. >> jim is our guest host. he's going to be with us the rest of the morning. steve, thank you very much. >> interesting conversation. >> still to come, an exclusive interview with the ceo of biogen. and a stock to watch this morning, avid technology, down 17% in after-hour trading. a drop in demand is driving this. "squawk" will be right back. >> time for our aflac trivia question. on this day in 1970, what song by smokey robinson and the miracles reached number one on the billboard hot 100 list? the answe

. >> i'm ken paulsen. governor romney has graciously agreed to answer some questions.hese are from all across the country. we had a special guest here yesterday who had some views. president obama said the republican party has gone so extreme that ronald reagan could not win a gop primary. i know they you took a look at the president's remarks. did you have a response? >> i think ronald reagan would win handily in a primary, and frankly, in all the primaries. i think our party is intent on preserving the vitality and dynamism of the american spirit that i think is being deadened by a series of government programs that have been increasingly in evasive and have attacked economic freedom. i look at what the president said. there were so many things i found to be distortions and inaccuracies, and it is hard to give a full list, but let me try. he looked at the budget and said if we were to pass the paul ryan budget, look at the terrible things that what happened if we cut programs and a proportional basis, but of course you would not cut programs on a proportional basis.

paulsen, rebecca brook, now the culture secretary, when is he going to realize -- now he is flip-flopping all over the place on it. the closeness between politicians and media proprietors has been going on for years and this government is going to sort it out. whether it is a proper regulation of the press, whether it is cleaning up our financial system, whether it's dealing with our debt, i don't shirk my responsibilities, what a pity he can't live up to his. >> order. >> thank you, speaker. if my right honorable friend brings good news to the manufacturing and engineering secors in lincoln. we've seen an increase in turnover to around 70.5 million , confirms a circa 50 million investment and they are involved in the first new engineering school. what -- would my right honorable friend accept my invitation to visit for himself and see the excellent progress? >> i'm very grate to feel my honorable friend for the invitation, i will try to take it up. what is happening in our economy, the very disappointing news today, but underneath that, there is a rebalancing that needs to take place and

paulsen, rebecca brook, now the culture secretary, when is he going to realize -- now he is flip-flopping all over the place on it. the closeness between politicians and media proprietors has been going on for years and this government is going to sort it out. whether it is a proper regulation of the press, whether it is cleaning up our financial system, whether it's dealing with our debt, i don't shirk my responsibilities, what a pity he can't live up to his. >> order. >> thank you, speaker. if my right honorable friend brings good news to the manufacturing and engineering secors in lincoln. we've seen an increase in turnover to around 70.5 million , confirms a circa 50 million investment and they are involved in the first new engineering school. what -- would my right honorable friend accept my invitation to visit for himself and see the excellent progress? >> i'm very grate to feel my honorable friend for the invitation, i will try to take it up. what is happening in our economy, the very disappointing news today, but underneath that, there is a rebalancing that needs to take place and