no one knows why the economy is bouncing back. or they know but are not willing to fix the real causes. you can follow the feed @cspanwj . or give us a call like there'll in texas -- darrell in texas. strange.his is i get a call a bill has been paid. i call the company to say be bill is not supposed we paid until the first, so why are you drawing money out? are you drawing money out when i do not have any money in the accounts, it is not the first of the month? sayade me open my eyes and lord have mercy, they are not only getting paid, it being prepaid, but they are also collect the money early. how can they collect money early when the bank does not even have the money in their? host: are you saying you lost confidence in the fairness of the markets? caller: yes. drawsight there, that attention to the fact that they are getting money early from our accounts. earlyy are getting money from our accounts, i do not consider that payments. i consider that a loan. host: any thoughts? guest: i do not know if that is what kind of company w

that's good news for the economy there. rkets we are following closely for you. this is "asia edge." the top stories this hour -- signs of stability. the yuan fluctuates the least in a week as the pboc brings calm back to the markets. but, ouch, feeling the pain, the ringgit slides once again, extending its fall through levels not seen since the asian financial crisis. and a call to arms means shinzo abe must refocus his efforts on the economy. it's election day in sri lanka. rajapaksa, mahinda bidding for a dramatic comeback. will he do it? all that and more in this monday edition of "asia edge." jule: i'm keeping an eye on market and currencies -- on markets and currencies. the ringgit is extending its 17-year low. is nikkei is a i 0.4% -- up by

so the global economy will adjust. but people will panic because there is this perception that china is critical to everything. i think that that's wrong. but that's the way the world works these days. so therefore there will be problems when china has even more difficulties that are more evident. alix: in terms of the actual stock market, do you think that actually has an effect on chinese consumption? they can still grow that? they're really invested in more real estate than they are with their assets? guest: it has a marginal effect on consumption. we've seen reporting about people not buying luxury cars and not buying midsized cars because of the flaws in the stock market. people put their nun there, they'd hoped it would rise, they take it out when they get something they want to buy, that's not happening right now. but also consumption really hasn't been as vibrant as the retail numbers suggest. i think it's been growing but not at the rate that everything thinks. it's not been the pull for rest of the world. we s

large subsidies to the economy. and they reported also on further devaluation on the national publicly owned company with access to foreign capital. and the different steps that the leadership has taken in china is actually very reassuring because it shows defensiveness and volatility. but it also shows the need to communicate clearly about what they do. what has happened over the past, you know, past couple weeks almost, between the further rate decrease and the weaker rate, the 18% announced at the banks. and now further boost by the crediting on the banks, things are going in the right direction. and further, it actually shows that they have the money and they have the will to do things. they just are trial and error process, you know, they're trying with what they're experiencing that are not necessarily seen good by investors. when it comes to the financial market, when it comes to the needs of the financing of the economy, when it comes to the structuring between the regulator, and how it's functioned and run,

the economy was already creaking. he says they may replace the spokesman and information technology industries. we have lucinda almond -- haslinda almond. >> they have many stories and it is no longer the same. and thailandpacted is known for resilient tourism. morning and the industry is already seeing cancellations. >> it happened a few times before and we had challenges in with red shirts and yellow shirts. an it is strong and we think the rebound will be quite fast. >> the kind of cancellations you have seen. in the press.een not much. the processing we are seeing is in social media. we are seeing the guests are week, they and next glitch is going to be in the big -- short-term. dozens ofe upgraded hotels. in particular, bangkok. >> from our perspective, we are communicating with our guest. >> have you increased security? sure it ismade guestsnt and we have that are comfortable with that. what you have to rethink the numbers? through a lowng season and we have time. be fast.nd will it will come really strong. area

structure of the chinese economynd the interim solution is to try and rebalance towards eurasia. that is the meaning of the new silk road policy which it has concocted in the last two or three months. it has become more and more public. that it hopes to do in conjunction with russia. scartlet: we have a quote from one of your essays about that china-russia marriage. china's motive is clear. the growth model is running out of steam. stagnation threatens the west. the company by protectionism and sentiment, does that reinforce or jeopardize the wisdom of this arrangement or in store marriage of convenience? robert: the chinese don't think in terms of second by second fluctuations of the market. one of the things about china is their leaders are very old. that is a principle of chinese policy. you take long views. they think of this as a 50-year-old program. i don't think they are going to be too worried about day-to-day fluctuations. volatility does suggest they have to start moving. joe: in the last couple days since

how is the economy doing? that is a 16 month high. into all this, the german economy was actually doing a little bit better. a lot of it is export competitiveness. if you look at the current assessment they were very happy on how things are actually unfolding in the month of august. alix: great stuff. thank you so much, bob. we appreciate your voice on this. joe: we'll be right back. ♪ alix: do not miss this tomorrow. durable goods are out at 8:30 a.m. take a look into my bloomberg terminal for what to focus on. durable goods backing out transportation. the survey is coming in at 3/10 of 1%. it is the read for the underlying factory demand in our economy. stronger dollar, following -- falling commodity prices have been a headwind for manufacturing. the question is, how that? joe: given this divergence between the financial markets and real economies a data is coming under scrutiny. given the market selloff and everything going on, i think a lot of people are going to be paying attention to the shanghai open tonight. what will the mark

the u.s. economy is recovering well. the european economy is recovering well. rticular has dealt with a lot of the imbalances that were there in the run-up to the eurocrisis. remember that this is being sparked by a fall in the chinese stock market, which rose very sharply in the 12 months previously. anna: yes, it did indeed. thank you very much for that. south africa releases exporter gdp data this morning. this is a day after the rent nd tumbled to a record low. with china its top export destination, what lies ahead? vernon joins us from johannesburg. what can we expect from the gdp number that will be released later today western -- later today? expect a gdp number of about .6% annualized for the quarter. that would be the lowest rate of growth since a year ago. it really underscores the challenge that president jacob has inadministration reigniting growth in the economy. they are struggling with power outages, which has hampered output. productivity problems with labor are making it difficult for it to grow. even though the currency has tumbled 44% over the

that would help the economy. he former president, rajapaksa, does well, many people expect more policy clashes, a lot of political bickering, and that could be bad for economic growth. thanksdaniel ten kate, for watching that for us in colombo right now as we continue to watch exactly what happens in that horse race. we are looking forward, meanwhile, to the afternoon's business in tokyo. we will get the latest on japan's reopening after this short break. we have seen gains pretty much all morning following the broader markets. onebound in wall street friday. the won stabilizes. ♪ >> the top stories this hour is one of little changed today as they bring stability to the market following the devaluation that triggers the current these biggest loss in two decades. economist says it may move in either direction following last week move. market oriented pricing will help reduce the possibility of sudden actuations. battered by the political scandal at home. something not seen since the 1998 asian and enter crisis. and

later on, more about the economy. he will talk about economic populism as a rising theme in the campaign 2016. as washington journal continues. ♪ >> tonight on the communicators -- >> he was really into computers, sci-fi, and that pushed them. he had always heard of silicon alley and dreaming of getting to america. from a young age, that is what he opines to do and at a young age she ran away from home and did it. >> a bloomberg reporter on one of silicon valley's most inventive leaders. elon musk. >> he is seen as the next steve jobs kind of figure. .e has this attention to detail he pushes his workers hard. i tend to lean more to an edison idea. i think elon has lots to prove. i take away that he is a guy who has these thousands of engineers at space x tesla, the brightest of the bright, he is a hard-working individual and is able to get products out of them that can be commercialized. that has really changed industry. to me, he is the guy who has combined software and hardware. bits and its -- atoms and in a way tha

is this a drag on the economy? we certainly had deleveraging for many of the past several years. i think lower default rates is certainly a reflection of an improved financial position for most households as we face a stronger labor market, less debt due to deleveraging, and some of that due to default, and generally, a stronger labor market. joe: you are looking at retail sales compared to aggregate income for the u.s. what do you see here? carl: this is the story for the fed as they look at economic momentum, which is dependent on consumers. what dictates consumer spending? the most important thing is income. sentiment matters. the savings rate matters. that has been edging lower since a spike in the first part of the year. it is employment income that will drive consumers to spend. looking at the last jobs report, we see that aggregate income growth is free accelerating, not to a dramatic degree -- this is not the economy taking off -- but to a sufficient degree to show that consumers are picking up the baton and

he had faith in the chinese economy as well. ibaba joining twitter as the second high profile tech company to sink below the price in less than a week. >> but alibaba higher in yesterday's trade which is interesting to see one of the bright spots out there. but there are two tech companies that are are weathering the storm louisa. should we get the report? >> we should. >> julia is breaking it down. >> two stocks bucking the markets negative close on tuesday, netflix and facebook, both hanging on to some gains during the day's rally. netflix shares closing up 5%. facebook shares closing up nearly 1%. they issued a note monday calling out netflix and facebook as two of the best pull back opportunities while they reiterated a buy rating on netflix giving it a $143 billion price target. mark cuban also explaining on cnbc's fast money on monday why he's holding on to his position and doubling down on facebook. >> it's driving the whole content industry so i have no problems of holding this for the long-term. i don't know what level i

you haven't been able to get it done on the economy. you haven't built the kind of balance that canadians expect. if we are going to build strong communities and create jobs for children and grandchildren while protecting our air, water, land, we have to show leadership. mr. harper: under the liberal government they were up 30%. mr. wells: mr. harper, will candidate meet the targets that you went to copenhagen to set? mr. harper: what happens with the targets -- i believe we will, but we are now focusing on a 2030 target. that's what every country is doing, in concert with international partners. look, we are going to have to do more regulation and we are committed to that, but there will also have to be technological transformation. that is why we are investing over $1 million per year in energy -- $1 billion per year in energy project. mr. wells: during your 2008 campaign, your minister -- when are they coming? mr. harper: i have been clear that this is an integrated north american sector and we need integrated north american regulatio

be good forcorbin the u.k. economy? i think there are two questions on whether he would be good for the labour party, and whether he would be good for the economy. people say he is almost a communist. there is one sensible thing he is saying, which ought to be taken fairly seriously. which is about the monetary financing of an investment program. one reason or another, if you can't do that through orthodox monetary policy or fiscal policy, why not borrow for the the bank? fund an investment program? it can only be the case under special circumstances. it would have to be in deflationary circumstances. the idea that this is mad because it will lead to runaway inflation is wrong under the circumstances. it is something worth considering. that bit is anti-austerity, hat as reasonable credentials behind people haveown backed it and not to be considered, and not written off as a recent of this -- rescinded this version of socialism. has proposed this idea of qe. aggressive monetary financing of investment. the bank of england

on the other hand the market seems divorced from the real economy and the real economy matters from the voters. >> they haven't seen when they talk about the people that have benefited from the overall market trend, that's not your average voter. so there's a bit of a disconnect. >> if you were hillary clinton and you were the democratic nominee would you rather have a down market and a up real economy? or would you have the real economy trending downward but the stock market's booming? >> i think for the people she's trying to reach, you want a real economy that has some tangible feel that it's getting better. >> she's got to make the argument that she's going to be an extension with some modification of barack obama's policies. so if the g.d.p. is growing and the unemployment is growing down that's a better argument of continuity regardless of what's happening in the stock market. but you know more. >> i like you deferring to me. >> up next, the republican presidential candidate who wants "beat donald trump's brains out" that's senator lindsey graham and he's up next when we come back

you look at a disconnect between the stock market and the economy. stock market is absolutely on fire right now. the s&p was 800 in january of 2009. it is now at 2000, a 2 1/2-time increase. there's no way you can say that the economy is on fire like that. what my friend chuck says is you're right, you're seeing a lot of green shoots but not great things going on in the economy because you're seeing the labor force participation rate still at a multidecade high. a disconnect in the stock market, i don't think the fed raises rates in september. hard pressed to say they might not even raise them in december. >> lisa, some good news, because of the points in oil and gasoline prices that will certainly put a lot more money in people's pockets. in addition, we've got the drop in longer-term interest rates, mortgages are going to get a whole lot cheaper. that hopefully will give our economy a little bit of get up and go. >> well, absolutely. look, i think this oil boom we've seen, you know, it has nothing to do with president obama in the sense he's roped o

how strong would you say the eal economy is in china? guest: the big question about how the figures revealed the true story when the situation is a lot worse at the industrial production figures were not very good in june and july. experts -- exports were even worse. change weount for the saw a few weeks ago. the economy is slowing. 6.2%.ing like the figures may understate the strength. [indiscernible] that has been the concern. markus: how radical is that action? 4.6% would be high if this was in the west. at the west we are at rock-bottom. the fact is this is they have been accommodating with lower interest rates. it is part of a series of and maketo accommodate financial conditions is year for the chinese economy. looking at the real economy, they are ignoring -- they have made their minds up to ignore the stock market. there are concerns that spread. many french companies have a foothold and many have held the squeeze this year. 2000 companies flies the flag from france and china and they are feeling the effects of an economic slowdow

save the economy. ah, they give the default. what would have happened if we would have done it? the assistance nobody knows. but nobody expects the economies to be this week and soared as much as they have. so they've created a bit of a distortion, and i think that's been the problem. >> rosy, that's part of the problem with what the fed now faces come september. i mean if you're janet, how do you move interest rates higher when the rest of the world is doing, including china, the opposite >> well, i think that the contract in the front-end of the right, which is basically that the fed rate hike is a low odds bet at this stage. i know they desperately want to get off zero. maybe they should have done it last year. but this is not -- i don't think you add morin stability on top of this instability by hiking interest rates unless things by september 17th turn around materially. there will be time to raise rates. there's not going to be an urges. the fed has to fight like it has in cycled past >> well, i a

you haven't been able to get it done on the economy. you haven't built the kind of balance that canadians expect. if we are going to build strong communities and create jobs for children and grandchildren while protecting our air, water, land, we have to show leadership. mr. harper: under the liberal government they were up 30%. mr. wells: mr. harper, will candidate meet the targets that you went to copenhagen to set? mr. harper: what happens with the targets -- i believe we will but we are now focusing on a 2030 target. that's what every country is doing, in concert with international partners. look, we are going to have to do more regulation and we are committed to that, but there will also have to be technological transformation. that is why we are investing over $1 million per year in energy -- $1 billion per year in energy project. mr. wells: during your 2008 campaign, your minister -- when are they coming? mr. harper: i have been clear that this is an integrated north american sector and we need integrated north american regulation

how is the economy doing? that is a 16 month high. the german economy was doing better. t of it is export competitiveness. if you look at the current assessment they were very happy on how things are actually unfolding in the month of august. joe: great stuff -- alix: great stuff. we appreciate your voice on this. joe: we'll be right back. ♪ do not miss this tomorrow. durable goods are out at a: 30 a.m. -- 8:30 a.m. at 3/10ey is coming in of 1%. it is the rate for the underline factory demand in our economy. stronger dollar, following commodity prices have been a headwind for manufacturing. joe: given this divergence between the financial markets and real economies a data is coming under scrutiny. --en the model -- set all given the selloff, a lot of people are going to pay attention to the shanghai open tonight. what will the market did after the u.s. selloff and the rate pboc, the big massive crash we have had in china, everyone is going to pay attention to that. i don't know why i need to say don't miss it. everyone will be paying attention. alix: you heard bob say it

so you have seen the u.s. economy -- the u.s. economy is always written off. written off in '81, '82:19:90s, the jobless recovery, and it's -- it's resuscitated once again. the fundamentals are pretty strong. asian corporates were lauding up the past years. u.s. corporate balance sheets are in cringes condition, low debt and capability to spend money on hiring over the next two or three years. the question is in taiwan -- i was in taiwan nine months ago. we are concerned. we used to be by far the largest trading partner for tie one. during most of -- taiwan, during most of the postwar period, and this his completely reversed, a lot of it because of the proximity. china is so big now, and 40% is tie one's experts -- taiwan reside experts go to china, many cases they're assembled and exported again. so have to be careful with the figures and the value added, but you have the case where 70% of taiwan's outward-begunked foreign direct investment goes to china, and then if they end up approving the cross-straits service agreement, that could go both ways for tie one

others are adapting to the economy, while washington is holding onto the old economy. a result, america is no longer the best place for the henry ford's of today to create the businesses of tomorrow. while innovations keep trans forming our world, our economy is struggling to translate them into opportunity for our people. so that makes this election a generational choice about what we do next. hillary clinton believes the way to win the race is to drive in reverse. to revert back to more regulations, higher taxes, bigger government. i believe the way forward is to embrace the future. modernize our government. i believe we will once again make america the best place to create jobs. if we empower americans to fill those jobs, then our generation will embrace the american economy. that will lay the foundation for a new american century. today, detroit is an example of what can happen under probe business leadership. other governor snyder, corporate drive -- orbit taxes have dropped significantly. thanks to numerous progrowth reforms, michigan now has one of the best entr

let's begin with our first topic, the economy. this is one subject on everybody's mind as the election approaches, the economy. >> we have dangerous economic wind flowing in canada. >> the country's economic health is shaky. we are coming out of a mild recession. oil prices have slumped, exports are weak. what ottawa's proper role in the canada? that's the context of our discussion. mr. wells: as the luck of the drug would have it, the first question goes to the liberal leader, justin trudea. mr. trudeau: good evening. mr. wells: canadians are feeling anxious about the economy. manufacturing is hurting. the price of oil is down. your economic plan is built around the middle class tax break. is that really enough of the response, given the challenge that you say canada faces? mr. trudeau: one of the things we seen, paul, is that for 10 years the approach that mr. harper has taken has not worked for canadians. tohas consistently chosen give opportunities and tax breaks and benefits to the wealthiest canadians in the hopes that it wou

being the economy. did your economy making is and sell it to us. if it did, it was likely that it was worth more year after year, and paid a steady dividend. many would be playing the stock market. and looking on with worry. they send their own south. the end of the defined benefit for millions of mernts made the stack market a big factor. some of us thrive, some of us dive more than a decade of interest rates, easy home equity, and too maybe people reaching 60 with too little money meant too paradoxical things. at one point the largest generation of wealthy, healthy senior in the history of the planet. and at the same time untold millions wandering and with good reason, going to outlive their money, i'm ray suarez, that's "inside story". >> the colorado river. the lifeblood of the american west. from the rockies down to mexico, nearly 40 million people rely on it for water. and for some, it means a lot more than that. >> the river, to me, means homeland and our natural boundary for our people. we use it

undoubtedly the u.s. economycted negatively by the slowdown in china and by the financial turmoil. however, let's not forget that it will benefit from lower oil prices, and it will benefit also from lower interest rates. so the september call i think is clearer. they are likely not to go forward with an interest rate hike. december is still open. >> all right, stay with me. obviously when you have a market like this and an election cycle, here come in the politics. i want to read for you two tweets we've gotten from two presidential candidates. donald trump just tweeting this morning, markets are crashing all caused by poor planning and allowing china and asia to dictate the agenda. this could get very messy. vote trump. i also want to read you what bernie sanders said. we don't have a full screen but i will read it. are in unfettered free trade has been a disaster for working americans. it's high time we ended our disastrous trade politics. so we're going to get into more on the politics of this right on the oth

i am saying -- the rest of the economy is growing. it is projected to grow this year ended the future years. the way to handle falling oil andes is not increase taxes increased spending. that is how countries get themselves into serious long-term trouble. >> mr. prime minister you made a promise in 2007 at you would tackle the barriers to trade and labor mobility within this country as an economic union. you said you would go to the constitutionmerce and here we are, we have more barriers to trade within canada than the 28 nation states of the european union. where is your plan to break down the barriers? has onproblem mr. harper that one is that he has refused to sit down and talk over the last 10 years. showing leadership. we have a federation that needs people to sit down and talk about taxes, terriers, climate change, how we are going to help canadians get ahead in an uncertain economy. he has refused to engage with provincial leaders whether it is on interprovincial trade barriers, climate change, training and job creation and tha

i don't see this having an impact on the real economy. 013, remember the markets hit a september taper and it happened in december. they were really concerned about tightening conditions, because it longer-term interest rates rose substantially. the: so it does not affect september hike, but does it affect the trajectory of rate hikes? that things coming in from overseas it will affect it. joe: we have this bear situation and the unemployment rate is bottoming out, but the housing sector is getting going, what is going on? >> we had a delayed recovery in housing. we had credit conditions, but those are easing. it is making it easy for people homese down payments on and housing is looking more viable as an investment, you ask someone if prices will go up, they are more likely to say yes now than at any other point in the last six years. up in value. housing is likely to do well for a number of years. in the near term, it is accelerating right now probably 10%. that is reasonably healthy. alix: what will that do to inflation expectations? >>

by historical standards this is a modest burden on the u.s. economy. certainly compared to anything in the world war ii our post-world war ii era. in the clinton years we're also around 3% in the reagan years we been up close to 6% of gdp, defense as a fraction of overall national economic activity. in much of the '50s and '60s the figure was often 8%-10%. defense spending is to very big. it's still almost $600 billion per year. still about 15% of the federal budget, much reduced from earlier periods but still a large fraction of the overall budget to be clear and to be sure. and, therefore, this is certainly one of the main ways in which the federal government interacts with the broader economy. if we frame things in those terms i think we begin to get a sense of the importance of the sector. a few more statistics and then for the real show. even the defensive zone all the more than 3% of national gdp it can be a lot more in certain parts of the country. that's one of things i know mark is going to talk about, and i will say why in just a moment. we're

let's begin with our first topic, the economy. this is one subject on everybody's mind as the election approaches, the economy. >> we have dangerous economic wind flowing in canada. >> the country's economic health is shaky. we are coming out of a mild recession. oil prices have slumped, exports are weak. what ottawa's proper role in the canada? that's the context of our discussion. mr. wells: as the luck of the drug would have it, the first question goes to the liberal leader, justin trudea. mr. trudeau: good evening. mr. wells: canadians are feeling anxious about the economy. manufacturing is hurting. the price of oil is down. your economic plan is built around the middle class tax break. is that really enough of the response, given the challenge that you say canada faces? mr. trudeau: one of the things we seen, paul, is that for 10 years the approach that mr. harper has taken has not worked for canadians. tohas consistently chosen give opportunities and tax breaks and benefits to the wealthiest canadians in the hopes that it wou

, the revival of the pkk insurgency, this has hit the economy heart. the leader is approaching three lire to the dollar. -- lire is approaching three lire to the dollar. economically, voters must -- the government. opinion polls revealed today for that if theme election were to be held tomorrow, the party would get less votes than it got in june, and that is bad news for the government. laura: jasper mortimer speaking to me earlier. are blaming each other for a surge in violence in eastern ukraine. 10 people were killed in the latest fighting, and that is putting further pressure on the fragile cease-fire agreement. russian president vladimir putin is currently on tour of crimea. russiaritory annexed by last year. oliver farry has the story. it has become something of a summer tradition. putinn president vladimir plunged watery depths on tuesday, and they were in a new, albeit disputed russian territory. lasta, which moscow seized year from ukraine. putin accompanied an exhibition examining a 10th century byzantium ship. hey, i thought you were going to

since the economy has started to pick up and sent we have seen the disaster of the greek economy and candidate has fallen back to about third place in the opinion poll in spain. still a very important election but it looks like he will not be having such an impact their. thanks for helping us see what to look out on the european data and if there is any political risk to come from contagion. we are just a few minutes ahead of the european equity market open. jonathan, what is your eye on? jon: this job stay is the most important ever. the most important since the last one and before the next one. it is important because it is the penultimate report before the september federal reserve decision. expected to come in at about 225,000. more importantly, keeping that average just above 200,000 for 2015 and keeping the federal reserve course for the first interest-rate hike since 2006. after that we will talk on the route -- talk about the route on the nasdaq yesterday. the worst they in two months. traditional media stocks sinking that index. consumers cutting the cord and we will talk abo

spending on three components of the budget will grow faster than the economy. e major health programs, including medicare and medicaid and subsidies for health exchanges, and social security and net interest payments. in contrast, mandatory spending other than that for major health care programs and social security and both defense and nondefense discretionary spending would shrink markedly relative to the size of the economy. outlays in those categories would fall to the lowest percentage of gdp since 1940, the lowest year for which comparable data has been reported. federal revenues as a share of gdp are expected to rise to 18.9 percent of gdp in 2016, primarily because several tax receipts would increase relative to gdp, largely a result of real bracket creep with smaller effects of changes and other factors. payroll tax receipts would decline relative to gdp, especially over the next several years. reflecting several factors, such as declined to unemployment trust funds. corporate tax receipts would decline, mostly because of an anticipated drop in estimated

so long as the economy feels okay, look at the bottom of the correction. put the money back into the market. it is a little frustrating for people who want big moves in markets. i don't see a big move either way. >> we'll leave it there. david kelly with jpmorgan funds. >>> anything but a quiet day on wall street. stocks saw steep declines. then recovered again. the dow jones industrials dropped to 17,348. it has been down as much as 229 points. nasdaq fell 40. the s&p was off 17. energy stocks, some of the biggest losers as oil prices tumbled more than 4% to finish at a 6.5 year low. it kept inventories at 80-year highs. >> the declining crude prices may be reflective of a much broader slowdown. the markets got more evidence that that weakness is real. >> it was another 1-2 punch for the markets. that's without the fed minutes. the europe and the u.s. were both weak. even though mainland chinese markets were up, hong kong was down and the traders believe hong kong is a more accurate gauge of the chinese economy than the mainland markets. there were other

between china and the united states. >> the economy is not the stock market. china's economy had to acumen late large amount of foreign reserves just to withstand the kind of american financial war that brought the asia crisis of 1997. so china acted defensively. it exported a lot. it developed huge international reserves to make itself independent of the west. and now, it is in the middle of shifting away from an export economy to begin to reduce for its own people. why should china -- chinese workers spent all of their lives making goods for walmart to sell in the united states and europe, why go they make goods for themselves to raise the own standard of living? that is what china is doing and that means china doesn't have to export more, and there's really nowhere to export to. if europe and u.s. consumers are not spending, obviously, the attempt is to make china itself grow, but the chinese took the money instead of consumer goods, they bought stocks. amy: as markets in china plunged monday, former u.s. treasury secretary and president emeritus of harvard,

outlook for the economy is. and if we make that calculation pretty close to correct, we should not see unintended consequences. 25what would it the, with basis points be appropriate for an economy like this or should you be higher but you are constrained by what you can do? >> we start with 25 basis points. i think that is pretty obvious. the committee has communicated several times that the expectation is the path of interest rate rises going forward would be very gradual. >> the markets seem to have a different view. why have they come together? >> there are some technical factors at work. we can indicate our sense of [indiscernible] and the question we are answering is assuming appropriate monetary policy, which should be the path, that is a circulation -- a circular assumption. the markets are weighing the probabilities and interest rate rise at one time or another. and placing their bets on the probabilities. it is not surprising those are different. the most recent data i saw is a 50% probability. be aseems

the u.s. economys and themixed signals only debate is time, it is likely to remain much of the same that we are seeing. likely to remain relatively strong. months, it has been an emerging market story. global markets will stay volatile. we have seen that more recently with equities particularly. again, the epicenter is in the of the world,rts emerging markets at the moment. angie: that is something we are watching closely with china devaluing the yuan, which some suspected was ahead of the rate hike. that china wanted to take some independence back and of the move. the currency alignment causes ripple effects. what do you think the move will be from china? >> it is a 3% currency move, not a realignment. to help exports, you are talking about currency moves of 15% or 20%. all the currency move has done is worse in the imbalance in the market. you have revealed the currency can go down, there is a case for it to depreciate. people thought it would stay stable or appreciate. that is what they need to man

the growth rate? of capital is parked offshore. i guarantee you we will goose economy if you bring $11 trillion of working capital back to this country. and you stop punishing evil for working, saving and investing and quit rewarding people for making mistakes, which is the way we are operating now, we will transform the economy. we will bring manufacturing jobs under the fair tax we will not be at the competitive disadvantage to make things. it is not enough for us to have a design and create things, we have to make the things we create. right now we are designing things, creating things, but we are making them in china. themwe need to do is make here, but we can't because there is 22% and that attacks and everything we do here. it comes back cheaper than what we make. the first track -- the fair tax changes that and gives us the competitive edge to bring the manufacturing jobs back. we stopped the crazy regulatory environment. i have a contractor friend and has a great back on the back of his hard hat. it is true. it ought to be at least as hard as it is to gett h a

bang in line with the previous economy. gdp and the u.k. economy growing .7% in the second quarter.e are getting breaking news out of greece. we understand they have nominated -- a temporary caretaker to the finance ministry. wes is not the first time are the position where there is a person we have not heard of becoming a finance minister. and it is another person linked to a lot of, i would say, economic research, universities. we understand he is at the university of manchester and he's, of course, a major in european economic integration. oufakis,ds me of mr. var a leader and a thinker eddie a university. this comes ahead of the snap elections. 63% think that it is wasn't -- it was a mistake for mr. ti sipras to call these elections. dudley signals on wednesday that a september interest rate increase is looking increasingly in doubt. yesterday, bloomberg caught up with me kansas city fed withdent -- caught up ashley george to get her take. >> we should expect volatility from time to time. ee are in a period of som uncertainty, questions about china, questions about global growth

always stay focused on the broad, general economy, not the financial economy per se, but the overall , and i have to look at that. my staff and i are just now beginning to process of evaluating whether there's likely to be a material effect on our outlook, based upon the chinese devaluation, the weakness in the chinese economy. the sell-off in u.s. equity markets. the drop the oil prices. the appreciation of the dollar, these are all factors to re-evaluate because we've been through a very tumultuous period for the last two weeks. >> reporter: but you have a meeting in 2 1/2 weeks and you thought it would be appropriate to move in september, but told our friends at market news because of all of the turmoil that you're now less resolute about moving in september, may want to wait. >> i have 2 1/2 weeks before i have to raise my hand or not, and so in that period, i plan to take a look at all these questions and come up with a fresh point of view. >> and we have key data points, the jobs report next week and some other things. all right, so you will look at that. let's step back for a m

we have to remember, the u.s. economyoke about this, as have your other panelists, the u.s. economy is strong, we've got low energy costs and relatively low interest rates, a strong housing market. time productivity. banks in a strong financial position and consumer stronger than they've been in the last 15 years, so, you know, i think you have to take a little bit of a step back and separate traders from investors. >> right, dick? >> traders, charlie, you nailed it a little white ago. traders are there to trade, okay? the trend is their friend. if it's going down, they're going down with it, okay? they're selling into it. step away from that. remember, up until the late spending of this year, this has been the most hated bull market since world war ii. and people were complaining about how many people, because of the march '09 meltdown, you know. the '08, '09 meltdown, how many people missed a 7 plus thousand point appreciation in the dow. so, i think this creates a very normal correction to an upward secular bull market

his their faith overall in the condition of their economy? guest: you talk to people on wall street and they almost look at secondary or tertiary indicators. they see the demand for certain food products as more reliable proxies. companies which have to abide by certain transparency rules, the we saw apple talk yesterday, china's growth has been so out side and so big for so long that spectators the to factor in a fudge factor. if they are exaggerating it is still gangbusters growth. the question now is does this become self-fulfilling. do all of the tools they used to goose growth now become things that hurt the economy when it has to pause for a breath in the cannot afford to stop the machine from running. we are taking a look at the federal reserve as they make decisions about interest rates. what decisions to they have to make it how does the story factor in? the federaleory reserve should not be managing the stock market. not like other countries like china and japan were they openly talk about. the u.s. fed here what's asset prices to be

a smart consumer is detrimental to the economy. the luxury sector is where it's at predictable as policy is geared to bailing out wall street and also from richard rogers who said did we not go from losing over 700,000 jobs per month in 2008 to gaining 12 million since march of 2010. 57 months of adding jobs. so richard rogers confident in the economy. what's your thought? we would love to hear your thoughts. front page of the "wall street journal" this morning also back to military policy about drone flights. the pentagon according to the "wall street journal" is going to dramatically increase the number of drone flights on military missions. they write the pentagon plans to sharply expand the number of u.s. drone flights over the next four years giving military commande erers more access to military intelligence. the plan to increase by 50% the number of daily droning flights would broaden surveillance and intelligence collection in such locals an ukraine, iraq, sir area the south china sea and north africa said the official who p

will benefit not just the chinese economy but the global economy and we certainly hear from business leaders in the united states that are interested in doing business in china that a more transparent business environment would make them more likely to do business there. we welcome and want to advocate for u.s. businesses looking to grow overseas because ultimately that creates a good economic opportunity here in the united states but ultimately these are the kinds of decisions that chinese officials have to make and the message they hear consistently from the obama administration is one that is focused -- a lot of which is focused on the need for china to continue to pursue financial reform and to move rapidly to a more market-determined exchange rate system. but certainly improvining transparency into their economy is something we believe would be good for the global economy and good for the economy in china as well. >> there's a quick report that china internally, talking about transparency, they have an internal force, army, whatever you want to call it, of about two million gove

is it going to help the chinese economy? tnch >> the short answer is it will. you cut rates or do whatever you do in term of policy and eventually it will have an impact but there's many policies of different aims in china. the first one is to cut rates which you've seen this week and that should have a more positive impact on households. you're prosidividing liquidity because they're buying and selling local currency. it's just injecting liquidity. >> but the recent moves is met with skepticism among investors. some saying it highlights how bad the situation really is in china. would you subscribe to that theory as well? >> i think these are all relatively young markets in china. in the west we're used to equity markets and foreign exchange markets have been around for hundreds of years and in china it's all very new. it's really happening over the past few decade so we need to be a little bit more patient when it comes to actually policies that are aimed to add liquidity and volatility into the market. >> how should investors perceive these moves taken by the