the ceo of prudential tells us u.s. central bank policy is a threat. >> the big cloud for us, interest rates, qe, when interest rates will normalize and at what speed and with what magnitude. >>> a day after investors turned sour on shares of candy crushmaker king digital, we count down to earnings from the gaming group. >>> u.s. secretary of state john kerry urges the new iraqi government to embrace a new prime minister. >>> friends, family and fans worldwide are in shock today over the death of oscar winning actor and comedian robin williams of an apparent suicide at the age of 63. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >>> and we've got some data flashes for you. the zeo inest havers sentiment in germany has just hit the wires. we're seeing the euro falling after that german zew index came out. the current conditions, 44.3% versus 61.8% in the month of july. that is a huge drop, and no surprise here given that in the space of the last month, the german in

prudential just reporting numbers. good morning. what do you see so far from prudential? >> they are reporting profits for the first time in a month. the company split into it asia, u.s., europe head and asset andgement business -- u.k. asset management business. the u.k. life business profit up of high temperature and. -- profit up by 10%. >> the fear going into these numbers was asia. that was going to be one of the sticking points. the u.k. business under pressure because of new rules. anything on asia so far? >> not yet. the operating profit is double digits. i will dig deeper but asia is the golden goose. half of its revenue comes from asia. theheart of prospects for company. he said to us in march, the ceo, the pie grows faster than our ability to eat it. he also mooted the idea of spinning off the asian division. cashompany has enough within asia to fund itself. the new asia is africa. the company wants to push into markets like nigeria and kenya. that is for its second leg of growth after asia. he says the country store, the city-bi-city story. he says africa is l

address the commission i also wanted to say there was a solicitation to my hues from a realtor from prudential that was trying to list my house and had 12 liks equalizing prices and the sales prices were significantly higher it's no secret san francisco property is in high demand and people want to have a home near a school or church so it is something they look at. in your packet i'll see go significant relevant individuals and families that have kids in school it's desirable because the waiting list not all schools are alike it's very much desired it's comparable it's not easy to find a school it meets the city requirements in addition to all the states requirements there meditates to be open space and in this case, the backyard services that as children services that's very, very convenient. the big thing you'll hear opposition because there's fear out there this is instilled it will make a better project i wouldn't want this project with prudent companies such a maybe requiring that a staff monitor greet the cars as and come and depart so in orderly and a safe manner in addition i'll say t

like -- adam: why do you like -- we all know years since they were a piece of the rock, but why prudentialack a billion dollars in stock every quarter, excuse me, every year. 6-8% earnings, 9.5 times earnings. i think you've got a stock that could earn about $10 a share. stock's 90, i think it's 120. adam: everyone likes to pretend they're an expert. you are the expert, but they'll say you should buy biomedical, medical quites. not always the case, but there is one you like. >> yeah. i think zimmer is a name in the medical device section that i like a lot. earlier this year they made an acquisition which was very much -- not an inversion deal, very much your old traditional two companies that do similar things together, a lot of cost synergy there. in 2006 it has earnings visibility of $9 a share, and if you have a 12-18 month time frame, a stock you're going to make a decent amount of money on. adam: that sounds good. thank you for joining us. closing bell rings in roughly six minutes. what do you get when you do a mash-up of artistic designs and casual foot sphwhear bucket feet, an edgy

i asked the head of retirement at prudential, which markets dozens of actively-managed funds, what sheought about this. >> yeah, i haven't seen any research that substantiates that. i mean, i don't know whether it's true or not. i honestly have not seen any research that substantiates that. >> smith: so all the research that's done at vanguard that makes that argument, you've looked at that? >> no, i haven't. i haven't read everything. but so much of it depends on, you know, what i need is different than what you need, and there is not an asset allocation or a fund strategy that's right for everybody. >> smith: i talked to one woman at prudential who's head of retirement and asked her if she was aware of the studies that show that index funds did better over time than the actively-managed funds, and she said she wasn't. >> that's unbelievable. i find that actually unbelievable. >> smith: these people that are in the business know that the index funds do better, right? >> they convince themselves that's not true. when i've talked to these people... >> smith: but wait a minute, all the s

captioning institute --www.ncicap.org-- >> corporate funding for washington-week is provided by -- prudential. brigham & womens hospital. additional funding is provided by the annenberg foundation. the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. thank you.

captioning institute --www.ncicap.org-- >> corporate funding for washington-week is provided by -- prudential. brigham & womens hospital. additional funding is provided by the annenberg foundation. the corporation for public broadcasting. and by contributions to your pbs station from viewers like you. station from viewers like you. thank you. is provided by the gruber family foundationm and by the members of kqed. a co-production of kqed and the center for investigative reporting. vu: cutting-edge technologies changing the way police fight crime. mcnutt: what we essentially do is a live version of google earth, only with a full tivo capability. iketani: we, basically, kept it pretty hush-hush. vu: the power to track more people and data than ever before. wiltz: it's gonna be worth its weight in gold. lynch: the biggest concern is that anybody could end up being in that database. [ siren wails ] vu: where to draw the line between security and privacy? mcnutt: there is a trade-off. [ indistinct shouting ] halverson: just look here, please. vu: a look at the state of surveillance.

captioning institute --www.ncicap.org-- >> corporate funding for "washington week" is provided by prudential. brigham and women's hospital. additional funding is provided by the annenberg foundation, the corporation for public broadcasting and by contributions to pbs stations from viewers like you. thank you. >>> next on "kqed newsroom" -- >> i support moving in a new direction taxing regulating for adults this drug. >> lieutenant governor gavin newsom makes the case for legalizing marijuana as polls show shifting attitudes. >>> money woes force the sacramento philharmonic orchestra and opera to scrap their upcoming season. why some art companies fail and others thrive in a turbulent economic climate. >>> and at the state capitol, the legislature tackles hundreds of bills before the end of the session including assisted living reform, a controversial water bond, and california's cap and trade system.

along with macro prudential policy, communications play a big role. very successful in communicating. even though the recent announcement are not meant ot kick -- to kick in for two years, there are messages we can act. we are worried. >> he wants everyone to be more aware of your own affordability. >> mark carney had the skye interview. he is talking to everyone. >> we're going to have it leave it there. thanks. atlantic city in the u.s. is a popular casino destination. one of the most a tour is gambling whales in the game. a man called. johnson filed a johnsonew way -- don explained to bloomberg why it is not his playground of choice. >> it is, a time when atlantic city was i think they were desperate for business and they were over pitching the games. >> atlantic city casinos, owned by mgm and seasons, began calling don, offered $50,000 in free bets. dondeals were so good, suspected atlantic city was in worse shape than any other gambling city in the country. >> vegas has enough critical mass, and they have a huge convention business. some fairly m

corporate funding for washington week is provided by -- >> prudential, brigham & women's hospital. additional funding is provided by the annenburg foundation, the corporation for public broadcasting and by contributions to pbs stations from viewers like you. thank you. >>> next on kqed newsroom, will california schools make the grade with kcurriculum requirements. controversy one year later and how robin williams helped make san francisco a comedy empire. >> god, it's good to be home. i'm not lying. i can't lie to you. it's not nice to be home with the birds to wake up.

we do not have to raise interest rates at any point because we can count on macro prudential policiesey can count on macro potential policies. >> and dean, you say? lateoking back, 2007 was in the game. in 2004, were warning 2003, and the damage was done, by 2007, i'm sorry to say. the housing bubble was directly driving the economy. that was easy to see in the data. booming, driven by housing-generated wealth. it was easy to see how this was going to be a big problem for the economy. when you look at the situation today, i think janet yellen is entirely on top of the case. she has her eye on the ball. she made this warning in congressional testimony last week about junk bonds being overpriced, spreads being too low. i think she is very much on the case and you do not raise interest rates and throw people out of work on a whim. hedge funds always lose money. >> so you think the inflation hawks are basically job killers? estimates with the imf and the congressional budget office, we are still around five percentage points below their estimates for gdp. you are talking about millions of

. >> corporate funding for "washington week" is provided by -- prudential. brigham and women's hospital. additional funding is provided by the annenberg foundation, the corporation for public broadcasting and by contributions to pbs stations from viewers like you. thank you. erertztzerer

corporate funding for washington week is provided by -- >> prudential, brigham & women's hospital. additional funding is provided by the annenburg foundation, the corporation for public broadcasting and by contributions to pbs stations from viewers like you. thank you. this coming is so remarkable in its execution of the style and first day it really seemed very much like we were speaking different languages. went with where they are without changing where i am and so the reason the piece is accidental is so little about i've got this vision and intent for what the piece should be. been experimentation and exploration. > putting the supermarket in a low-income and low access area while it's very important to lay he foundation, it did not have impact on behavior change. we need to provided a eugs atural support in order for people to utilize those resources. suppers s what sunday does. it works with people in deep

what she said was we're going to depend on prudential regulation. the banking system, there are things, increased capital requirements, limits on some of the positioning that the banks can do. but for the rest of the financial sector, that's not there. and so very low interest rates are driving lenders in to taking risks. low quality loans, investors buying junk bonds with low spreads and there aren't any prudential regulations to prevent that. >> martin, it's miles nadal. you forecast 3% growth for the second half of the year. where are you on 2015? what kind of gdp growth do you see in '15? >> you know, the further you try to look ahead the cloudier the crystal ball becomes. but i can't see why we're going to see that slow down if we move in to 2015. so i think over the next twelve months i think we see a continuation of that 3% growth. >> marty, the big question we have right now is whether the fed's behind the curve and whether there's going to be any, you know, negative consequences to really staying at like emergency level policy, even though

. >> additional corporate funding for "washington week" is provided by prudential. additional funding is provided by the annenberg foundation, the corporation for public broadcasting and by contributions to pbs stations from viewers like you. thank you. premiered at the tribeca film festival. a couple of days later we open at a theater in new york, a theater and l.a. after every screening, everyone would say, where are they now? our last shoot was a month before we had this up on the screen. these kids really were seniors in high school. >> our farm is very unique. we want to grow as many varieties as we possibly can on six acres. plants working together, the power of that and nature, the healing they goes with that ultimately, what that does for the enzymes and the nutrition that the food produces. >> one of the things

. >> additional corporate funding for "washington week" is provided by prudential. additional funding is provided by the annenberg foundation, the corporation for public broadcasting and by contributions to pbs stations from viewers like you. thank you. >> be more. . >>> new troubling information from the san bruno explosion. >> pg&e misled the federal regulators by providing them inadequate and sometimes doctored documents. >> high tech. it's not booming for everyone. a lack of adversity and calls for change. >>> plus, a san francisco artist makes the surprising decision to give away his art. we'll find out why. >> we'll probably make some people happy. who knows.

. >> corporate funding for "washington week" is provided by -- prudential. brigham and women's hospital. additional funding is provided by the annenberg foundation, the corporation for public broadcasting and by contributions to pbs stations from viewers like you. thank you. >> be >>> up next, a special edition of kqed newsroom making a bet on rehabilitation for prisoners serving life sentences. >> i committed first degree murder back in 1982. >> california has some 26,000 lifers behind bars. now more, many more, are being paroled due to changes in the criminal justice system. do they pose a risk to public safety? >> in my humble opinion, some of these parolees are ticking timebombs. >> will rehabilitation work? >> a strong public safety interest in making sure they're prepared when they do get released.

prudential financial posted net inome of 1.1 billion dollars the first quarter. results were driven by its u.s. unit. of green mountain are falling in the after-hours trade after the company reported revenue that missed estimates. the company forecasted fourth-quarter earnings that are lower than projections. those are the top headlines. back to you. >> thank you. president obama set to speak in a news conference this hour. he is wrapping up the u.s.-africa leaders summit taking place in washington, d.c. he has been involved in sessions at the state apartment. once he begins remarks we will bring you that left coverage. let's get more details on 20th century fox. joining me is cory johnson joining me -- and joining me in new york is jeff mccracken. let's see if we can get up to date on this. what exactly has happened with time warner and 21st century fox, no deal. >> no deal. the deal is dead. they walked away. and some respects river check rotation -- rupert to reputation probably worked against him. his shareholder so he would keep getting and that -- that knoc

washington tells us they do not discourage donations to the als association but they ask people to use prudential judgment. als, by the way, has now raised more than $88 million for alsa. >>> right now at 5:00 the former governor of virginia in the hot seat being cross examined for more than 20 hours. >> we are live at the courthouse next. >> reporter: bob mcdonne has just wrapped up on the stand. i will tell you whether prosecutors scored points with the jurors. >>> police return to the scene of a gruesome discovery today. learn what our crews found when the cops showed up. >>> we learned what really happened to a local football player who died playing t >>> right now at 5:30, the gadget that sparked a mid air dispute. we talked to the local inventor who came up with a way to make sure seats cannot recline on an airplane. >>> he climbed the brooklyn bridge and got caught. what he claims he was doing other than launching a security scare at a national landmark. >>> police turn to social media to try to catch the killer in a gruesome murder in prince george's county. >>> a short time ago prosecuto

first man on the moon as a prudential insurance company of america presents the 20th century. >> this is marine lieutenant colonial john h. glenn jr. who within a few days will be the first american to fly in an orbit around the world. >> we're embarking in a new field, space science and i'm happy and proud i can maybe contribute in my own way in this new field. >> john glenn came along next and flew the first orbital flight for an american. to us, that was a huge deal because now we had an american hero who could at least stand up. >> god speed, john glenn. >> three, two, one. >> this is mercury control. friendship 7 spacecraft now committed to its third orbit. >> yes, sir, looks good, wally. we'll see you back east. >> shortly before he is supposed to reenter the atmosphere, the word comes there is a possibility that glenn's heat shield has detached from the base of the capsule. >> go ahead. >> we have decided to reenter with the tank on. >> what is the reason for this? do you have any reason, over? >> the only thing holding the heat shield on are three straps, which are attached to

because, you know, it's not just a matter of injuries prudential outcomes. if you're grieving for a loved one, this terrifying journey you're about to embark upon begins with the truth. you cannot grieve for something you know not of. that's what we need an investigation for in part. we need to help the victims of this conflict begin the appallingly pain traumatic journey of grieving. that's true of hundreds of thousands of people across the gaza strip. so it's not just about an investigation for justice. it's about helping people achieve their humanity in a situation which is so desperately devoid of humanity. >> yes, indeed. the task ahead does seem to be daunting. really doo appreciate you being here, sir. thank you. >> my pleasure, joy. thank you. >>> okay. and now, three things you need to know this wednesday. missouri just put an inmate to death using lethal injection for the first time since last month's botched execution in arizona. michael worthington was executed early this morning for raping and killing his neighbor in 1995. >>> the renisha mcbrid

. >> i thought macro prudential was meant to do with that? >> it was. market review. i really don't see much of an impact. ultimately, i think you will have to raise and they will have to raise interest rates. i just don't think the timing is right. i would wait. forhat is the spread like the bank of england and the ecb in terms of rates? of a ratea 60% chance hike in november and quarterly rate hikes after that. for the ecb, we don't expect a rate hike until 2016. it is an interesting question. sterling is going to rise, at least on these monetary policy issues. it must be rising, it will be rising. the u.k. is running a current account deficit. up.ling is going to go the rebalancing of the u.k. economy -- that is not good news for that. that will be under a bit of pressure. i don't think that the alternative, trying to force down sterling by keeping monetary policy loser for longer, is a good idea. i think that would be a much bigger risk. i think sterling is likely to be stronger against the euro. >> thank you very much indeed. chris has just laid ou

since they would lay down the it is not on terror policy, it is prudential regulation. would be a rapid shift i don't think they would do it that quickly. of fedpapers print views officials on a regular basis. we have heard from a number of toos, do we make much of their views? is it janet yellen who drives the process? typically, is respectful of the chairman. the center of gravity is shifting towards the view that labor markets are tighter, inflation pressures could grow and therefore perhaps sooner rather than later is the time to start raising interest rates. >> what does that mean? that seems to be the fulcrum around which the whole debate revolves. july.me, march, not getting the markets ready by signaling -- they have indicated that they are data-driven and there is uncertainty. if they were to send more specifically that we could move in the first half of the year, i think that would help markets to be less shocked if and when they decide, which i think they should, to do that. >> alan blinder told me that markets only do one thing, overreact. are you concerned

the macro prudential tightening ushered in last year. >> that could abate if the geopolitical situationmproves. >> that is right. >> to bring it back to the currency, you have mentioned sterling once or twice and there have been post-mansion house, we had the spike in sterling. we got some back. is sterling oversold? >> i think it is a better buy point 65.55 and one 50. is thetening in sterling situation and balance of payments and provides insurance that inflation does not fall too low via the pass through and import past channel. that is where i think we are in the moment. >> we will come back to in a moment. stephen gallo. we will focus on fed minutes and thee released jackson hole meeting taking place over the weekend. ♪ >> welcome back to "countdown." i am manus cranny. -- with us is stephen gallo. let's get right to one set of minutes which come out a little bit later which are the federal reserve. we've had it from charlie plosser. voices of dissent from fisher. what are you thinking? >> the overall measures from fed normalization is not really going to change until after quantit

prudential is up a half a percent. this company could deliver the weakest results since 2007.is ironic. they had a pretty tough day. was captured my imagination bankthey are saying this may have a difficult time getting through the quality review. overall equities have got that nice relief. there is dollar ruble if you want a little bit of perspective, which is dollar falling, ruble rising, so some reprieve for the ruble. 37 would be the near-term target. you are seeing money going in. traders are adding to the dollar position. expectedles this week to rise at 2/10 of one percent. the overall position is the market is getting longer and longer in terms of momentum behind the dollar. >> that is a much higher open. monday we had gains of one percent. managesstment director more than $4 billion of assets. welcome to the show. a look at the equity markets. what we're seeing is both trade lower. a significant diversion in how far they have gotten lower. off three orust four percent from their highs. what is that telling you? >> on the economic front, the u.s. is doing much better.

there is a difference between accounting and prudential measures. in terms of accounting, we would see after the asset quality review how sound the banks are. he stress test is solid. what if there is stress? the g.d.p. would decrease over a certain period of time. this is not necessarily a reality. i would urge everybody looking at the results of the stress test to see what is accounting and what are measures. accounting is backward looking and stress tests are forward looking. these are two different things . even if you had an issue and a challenge to stress test, that doesn't mean you are insolve ept at all. >> one of the biggest issues is when you talked about financial stability in the past, you said the biggest risk to that is reform, fatigue. >> we are -- looking much better. than we did 2012. with regard to financial -- things are normalized. you just mentioned a very large -- actually the largest portuguese bank and the effects of the spreads of portugal were minimal. this gives you a little bit the impression that things are fine. stock m

thee would not limited to vultures or sharks that were waiting to pick off -- prudential was in negotiations to buy aia and kept dropping its offer and bob benmosche said no. why should i sell it at a lower valuation when i can allow public investors to decide how much this is worth? when they come around to the idea that it is worth what i believe it's worth and possibly more, we will benefit by selling down our stake and that's what he did. >> but get back to some of the characters around bob benmosche. he himself was a character but when you think about some of the people he worked with in washington -- tim geithner are and hank paulson before and ken feinberg but then jim muhlstein helped them out with the turnaround and sarah dahlgren at the new york fed. what has happened to some of these people? >> they have all gone on and survive the crisis themselves hlsteine on to -- jim mu is back on wall street. they had to deal with bob benmosche at his toughest moments when he was seen showing off his beautiful home in croatia to reporters a month after he was on the job. he caused them tremen

prudential. aarp operations. they trained us on how to do the jobs they wanted. >> host: professor holzer, want to let you comment on pat's transition. >> guest: first of all, i credit pat and people like her. it kind of shows the resilience of americans under difficult circumstances, that every time a job ends or gets in trouble, pat finds another pathway to try to make it. but for about nine years it sounds like pat and people like her have been swimming against the tiled. and interestingly, pat's difficult actually started before the recession really hits, and, again, it reflects the situation that some of the problems are due to recession, longer-term trends that make it easier for american companies to eliminate jobs and replace their workers. so what do we do about that? again, we try to, we try to help those transitions, and it's interesting because we send a lot of people to college in america including community colleges. and sometimes a lot of people drop out and don't finish. then there's people like p

awboing why they are jo ning about the macro prudential.the fed does victim, volatility goes up. there are problems in the repo market. >> shocks and surprises here. what happens when we shrink the balance sheet? >> we are not very smart and we really don't know exactly what happens with less elasticity of dealer balancing. dealers used to be able to decrease and increase balance sheets. they will not be able to do that today because rules are already in place, not because of what has happened. ,f you look at the repo market you look at bank funding, banks used to be lenders into the repo market, they used to give dealers funding. >> they do not want to be in the game. explain why scarlet fu should care about this. you are this money pro. i got this 14 times yesterday. what does scarlet fu or tom keene or adam johnson, why do we care about this? >> you mentioned motor oil. lubricantarket is the that makes the financial sector work. do anything bond or where a dealer does not have anything on the balance sheet -- >> the son's golf lessons. [

fed, and their counterparts overseas are all approaching things -- macro -- veryf quickly, macro prudentialr that? >> i'm not sure what they mean by that. -- iey fischer, others mean, i think that is going to be how the fed will manage the economy going forward, and that is what it is currently debating. >> tim bitsberger with bnp paribas. overet, we need to wonder to you for a data check. >> before we get to the data check, just an update on the news we had run you earlier -- burger king and tim hortons to merge. this is a headline. they are in a packed with 3g, the brazilian private equity company, will own 51% of this new company. they will keep two iconic and independent brands. this is according to a company statement. burger king has commitments for $12.5 billion of financing. we had heard earlier that warren buffett would be involved through berkshire hathaway. the new announcement here is that this new global company billion in aut $23 system sales, over 18,000 restaurants in 100 countries, so quite a large footprint. the news here is that burger king and tim horton are combining. t

it is heartrate -- it is hard to create -- 1980's, i worked for a wonderful corporation, prudential. aarp operation. they trained us on how to do the job they wanted. commentwant to let you on the situation. several transitions she has made. t: pat's story, first of all, it's moving and -- every time a job ends or gets in trouble, pat finds another pathway to make it. but for about nine years, folks like pat have been swimming against the tide. it reflects the situation that some of the problems were due to the recession, and others were due to longer-term trends. what do we do about that? again, we try to help those transitions and it's interesting because we send a lot of people to college in america, including community colleges. and sometimes a lot of people drop out and don't finish and then people like pat finish. pat did everything right. she finished, got a degree in a field that seemed to be growing. and even that sometimes isn't enough. the american economy isn't fast and an area with strong job growth one year can be shedding workers a year or two later. it's hard. the onl

our "closing bell exchange," peter anderson from congress wealth management, quincy krosby from prudential financial, john rutledge from safanod and terry dolan from benjamin and gerald brokerage, and our very own rick santelli. one and all, welcome. let me begin with you, peter. the market seems extraordinarily, maybe even unnervingly resilient right now. is there anything out there that is worrying you? >> well, of course. i mean, we're all worried about something, right? but let me just first say that the optimism is promising, because we've got pretty good growth today, right, with low inflation. however, and that's a big however, let's not let that get to our heads. that's just one data point. so, i think further down this year, what we will see is some tips of inflation, and that's what's going to cause us some worry, tyler, is how are we going to react on that? are we going to react to that in a calm fashion or are we going to really have our head spun all around? so, the market has to factor that in, and we should start thinking about that now. i mean, it's great that things are lo

as the department of education moves forward, it must work with the prudential banking regulators to understand the compliance challenges its rule may introduce, and the negative impact it could have on the supervision of banks and credit unions. there is no doubt the financial challenges associated with higher education today can be daunting for students. i look forward to hearing from our witnesses about how we can improve student financial options, convenience, and financial literacy. thank you, mr. chairman. >> thank you, senator crapo. are there any other members who would like to give a brief opening statement? >> mr. chairman, thank you very much. i would ask unanimous consent that a letter that i will submit to you from the seven reaching institutes in kansas been a part of the record. >> without objection. >> mr. chairman, let me just for my opening statement highlight, the last part of what senator crapo, ranking member crapo was indicating your our seven universities regions university in kansas, kansas state, university and the, pittsburgh state, and wichita state univers