today, the economy is growing again. wages, home values, and retirement account are all rising, poverty is falling again. [applause] the wealthy are paying a fair share of taxes, even as the stock market shatters records. the unemployment rate is near a 10-year low. host: dan griswold, how do you respond when you hear the president say that about his record? guest: it may disappoint people on both sides but i think his economic record has been pretty mediocre. not remarkable but not the failure that his critics contend. under this president, growth in real domestic product has averaged 2.1%, that is subpar. in the postwar era, among recent presidents, it's been about 3%. under president reagan and president clinton, growth was more like 4%. most important economic indicator, it determines how many jobs are created in the economy, living standards. the president did inherit a steep recession and we did have a seven-year recovery, he iterves credit for that, but has been a pretty tepid recovery by historical standards. spen

the data that we use in modeling microeconomics, the u.s. economy rely very heavily on statistical series that are u.s.ced by our main statistical agencies, the bureau of labor statistics, bureau of economic analysis, and there are good reasons for that. first of all, these agencies were organized and set up to focus on data to meet these needs of the fed and other users, that is their goal, that is there so focus, the data -- sole focus, the data they produce they make available in a timely way. they try to ensure consistency and standardization over longer estimated time and time series relationships, it is often important to have data produced on a mythological -- methodological consistent basis. and the economic statistical agencies have used theory heavily to decide how to go about measuring. and i believe strongly that good measurement requires underlying ,heory, for example, the work pricesce is produced -- produce, the cost of living, they have been driven by theory. the national incoming data that simon -- won a nobel prize for developing t

the economy is performing at about the same level. nothing that would suggest the economy has reversed course or gained steam. why say anything different? she didn'tiking is go out there and make any hawkish predictions but we are seeing a hawkish move in the bond market. yields are going up. some short-term traders feel whether she has put a floor under the idea of interest rate hikes. there is something going on there that i did not anticipate. >> part of that has to do with the 3% number. she signaled 3% as the neutral rate. that is higher than what some people believe. yesterday's move was excessive. we have some strong inflation numbers this morning. overi was just looking at 2.41 after a strong reversal. one of the big questions everyone wants to know, they tried to pry it out of her, janet yellen is too smart to give away too many cards. she said she and trump share a common interest in the success of the u.s. economy. what is your protection for the dynamic between them? administrations have not typically intervene much. trump

and gets too much for the economy and gets too much credit for the economy.t out of trump's hands and it is something where he will have an influence on it, but he is not going to dictate it. thank you for your time, lots more on that story on our website. staying with the us and donald trump, and we assess how the vast us technology industry is preparing for the new president. it forms a huge part of the us economy, accounting forjust over 7% of the value of goods and services produced there in 2016. our technology correspondent rory cellan—jones has been to san francisco to find out what the tech sector thinks of mr trump's policies. san francisco, in effect the capital of silicon valley and the epicentre of silicon valley and the epicentre of the technology industry. looming over everything right now is the prospect of a president the majority of californians did not vote for. one tech firm, the memory of his election still hurts. it felt like someone died in the family. it felt like 9/11. everyone was in shock. we are kind of in a bubble in the tech indus

handing on control of the world's biggest economy. ama prepares to say goodbye we look at what he's done for america' financial health. the cost of china's raw materials is going up faster than it has for more than five years — wait for it — it's important because it could mean the rest of us — the rest of the world — paying more for the stuff they sell us? welcome to world business report. i'm aaron heslehurst. stay where you are i have about nine! nine minutes, it is all i am asking for an eye promised to deliver an exciting snapshot of business. there are just a couple of weeks of barack obama's presidency remaining and later today he gives his big farewell speech. as well as being commander in chief he's also overseen the world's biggest economy for the last eight years. but what kind of legacy has he left? well more than 11 million more jobs have been added with the unemployment rate falling from 7.8% to 4.7% but what the typical american family brings home has barely changed at nearly $54,000 a year once you adjust for inflation

we might have a hard landing in the economy. >> can the chinese government soft land its economy without big disaster? the answer is yes. >> china's stocks regulator is said to have called an unscheduled meeting as the worst start for chinese markets in two decades shows no sign of letting up. the reference rate by the most since august and a forced global exchanges to shutter early. >> china has second thoughts as it suspends the circuit breaking rules that have not kept investors from panic selling chinese stocks. >> do the chinese authorities have control of their capital markets right now? >> in the short-term, i don't think they do. by the short time, i mean in the next few days. the chinese market is not a real stock market. it's not connected to fundamentals, either profits or the economy. because no one knows what the proper level is, it's a casino. >> chinese stocks in a bear market for the second time in seven months. down 20% from the december high. >> my take on china is china has a serious challenge and set of challenges to convert from exports and construction stimulated by

parts of the new economy are still booming. f confrontation with donald trump on trade, and ironically it could well be that if he manages to growth -- boost growth in the u.s. economy that china would benefit from that. kevin, ok, out of the people you have been talking to, what is the balance of opinion about the bulls, bears, and the outlook for the economy in the year ahead? a i think it looks like fairly stable year, and because of the communist party congress, the government is not willing to tolerate growth much below 6.5%, maybe a little bit, but it is mindful of the buildup of that and external risks from confrontation with trump. it is also not likely to provide to much stimulus. stability is the keyword here. that is paramount for 2017. rishaad: thank you very much indeed for that, kevin hamlin there. right, what we have on the way out of bloomberg markets: asia, david updates you, as well as shery. shery: the conversation on china and the chinese yuan at new lows. to theing strengthened most, but what does that mean

when the global economy is under downward pressure, it is hard for us to make the cake of global economyigger, as a matter of fact, it may even shrink, and this will strain the relations between growth and distribution, between capital and labor and between efficiency and equity. both developed and developing countries have failed the punch. the voices against globalization have laid bare the pitfalls in the process of economic globalization. we need to take that seriously. the chinese tend to say, honey melons hang from bitter vines. sweet dates grow on thistles and tho thorns. in the philosophical sense, nothing is perfect in the world. one would fail to see the full picture if he claims something is perfect, simply because of its merits. but if he views something as useless just because of its defects. it is true that economic globalization has created new problems. but this is no justification to write off economic globalization all together. rather, we should adapt to and guide economic globalization. cushion its negative impact and deliver its benefits to all countries and all nati

in which we live and the economy of tomorrow. which i refer to as something of a digital age or a digital -- digital economy versus the kinds of skills that people have and are equipped for in the economy of yesterday which was an industrial economy. so as we move from an industrial age into a digital age, we're finding that it's very, very difficult to get people equipped for this new reality. >> quick answer please to what i know is a hard question, what is the single most constructive thing the incoming administration could do to amp up job growth and get the economy growing at a higher plat tow? >> well i think that their aim will be to do it that through tax reductions. that will be the main way to do it. i also think job retraining for those folks who are equipped only for the industrial kind of economy to retrain them for the skills that they'll need to be employed in the digital economy. >> we have just about 30 seconds left, is there a risk that the new administration has very ambitious goals and certainly a very ambitiou

the digital economy but what i would like to do to is talk about the data economy. said to talk about this data revolution moment. every time i said out loud but it amazes me but tim and january 13 you look back and the beginning to when he many started to record the knowledge that acquired. it is almost all been treated the last two years that is coded information on the scale and is hard to get the horror mines around it. it to have this societal impacts to have consequences for the of role that will change the ways that we think about so we are thinking of this moment. and then trade policy and economic policy. to account for that. seven o if it is already so important to the locally economy and is the intellectual property negotiator who one of the highlights of my career but one thing is that in and the '90s to realize as the diver the economy into negotiate those trade rules at the time it was considered unusual. there wasn't a consensus but it is obvious to everyone to be the global role. but the data at that moment that was not part the local bully economy wh

when the global economy ascender downward pressure, it is hard for estimate the global economy bigger. as a matter of fact, it may eventually and this will strengthen relations between growth and distribution, between capital and labor and between efficiency and equity. those developed and developing countries have felt the punch. the voices against the globalization have laid the pitfalls in the process of economic globalization and we need to take that seriously. the chinese tend to say jaime mallon earned bitter vines, suite dates growing thistles and thorns under the source of concern nothing is perfect in the world. we can see the picture simply because of its merit for apb is something that's used as. it is true that economic globalization has created a new problem. but this is no justification to a right of economic globalization altogether. we should guide economic globalization. the negative impact and deliver its benefit to all countries and all nations. there was a time when china also had doubts about economic globalization and was not sure whether china should join the wo

i have said i think donald trump has done more for the u.s. economy in his first 48 hours in office than barack obama did in eight years in office. these executive orders -- you were just talking about some of them -- the keystone pipeline, these are very positive things for the u.s. economy. they will bring jobs. more importantly, one thing i discovered being on the campaign trail, if you go to places like silicon valley or here in washington, d.c. or wall street, people are doing really well. but you go to places like york, pennsylvania, rockford, illinois, flint, michigan, those places have not seen a recovery. i think trump can be successful as a president and be reelected if he brings. . prosperity. to all these places, not just silicon valley and wall street. john: steve moore with us for the next half hour or so. numbers are on your screen to call. going back to the hills report -- the $10 trillion cut over the next 10 years, it is based largely on the heritage foundation budget plan that has been released. obviously, you work at the heritage f

it means how the budget lays with the overall economy. ything that affects the government spending revenues and the spending of the government. when we had the huge economic recession of 2008, our share of the economy debt was 38% of gdp. whether you liked the stiumuls or hate the stimulus, that meant the government had to tools, monetary policy or fiscal policy. it could do a lot to gin up the economy when we were heading into a very deep recession. our debt, now, relative to the economy is twice as high. it is twice as high historically. if and when we going into the next recession, quantity normal length of business cycles, we are likely to be closer to the next downturn. we don't have the same fiscal firepower ready because our debt is a much higher. that means that borrowing will be more difficult to do. we are more vulnerable to how dependent we are in borrowing. because interest rates have been so low for so long, our monetary policy, you have to be blathered were saying that we should be even more. to me, that is like a credit card

the potentials for bubbles in the economy. me, the drawback for all of that is that it is not a very secure economy. it is a very scary economy for people who are doing exactly what they are supposed to be doing -- working, saving, putting money away for their kids' college education. there is not a lot of security. when i look at our budget, i think one of the things we need to be doing is building a federal government that is able to deal with the challenges of this economy. we have a federal government that is built for the challenges of the economy decades ago. the president had a budget where he recommended an idea for wage insurance. i don't know if that is a good or bad idea, i thought it sounded interesting, but we did not have a national discussion on it. we don't have any resources. we have allocated all our resources already. most of the budget is preallocated to social security and medicare is pre-committed. we have very little flexibility. i am worried that our budget is short-term focused, that we don't invest en

all kind of potential for bubbles in the economy to me, the broad le sop of that that it's not a very secure -- it's a very scare economy, for people doing what they're supposed to be doing. working, saving, trying to put money away for their kid's college education. there's not a lot of security. and when i look at our budget, i actually think one of the things we need to be doing is building a federal dpovt that's able to deal with with a new challenges of this economy. we have a federal government that's built for the challenges of the economy decades ago. right now, we have a lot of people, the president had a budget where he recommended an idea for wage insurance. we don't even have a national discussion on it, but one reason is we don't have any resources. we've allocated them to already. most of the budget is pre preallocated to social security. we have little flex bable thety, so i'm worry ied that our budges short-term focus. i'm worried we don't invest enough and have enough flexibility, so when there's opportunities or challenges, our budget can react. it feels like it's ce

underlying -- pbc can use to effectively stabilize the chinese economy and grow the underlying economy>> this is really against the basket, which includes other currencies than the dollar here in asia as well as europe. if you factor in the contentious view that those currencies as far as asia is concerned no longer depreciated substantially against the u.s. dollar and currencies such as the yuan and in doubleould be digits until the end of the year and rebound against the u.s. dollar, then you arrive at different results. we will be studying the pressure on the yuan. rishaad: great talking to you. have a happy new year. now, there will be a fallout from the phone call by donald trump. that continues to swirl around china and beijing. did it cross the line? we had life to taipei. head live to taipei. ♪ behind a chinese conglomerate is a friendship that has lasted 30 years. as they told heidi, the philosophy behind their business is the same today as when they started. >> to improve your way of living in a contemporary world, the only way is to learn how to improve the lives of others,

not just for his business, but for the global economy. sat down with john nichols ways. >> she has made it clear that she is prioritizing emigration over the single market and does not want to get a's vessel deal for financial service is. you are a global bank based in london. you hire a lot of non-british people. surely, this -- surely, britain is heading into the wrong direction. >> london is a fabulous financial center where we have huge kinds of scales. when they change the rules, yes it will reduce jobs. the brits decide who we compete with around the world. it is up to the prime minister and parliament. it looks like there will be more job movement that we hoped for. >> coming back to new york in terms of -- >> we don't know yet. the e.u. could put in very stringent rules which will require some of those jobs to move into the e.u., or they can be more flexible. it depends. remember, 27 nations. the negotiations will take quite a while. >> another election in france. is that one of the worries you have? the worry was not just the effe

the u.k. economy did not fall into a recession as many people feared the euro zone economy is doing quite well. have reluctance to tighten monetary policy on both eyes of the channel -- both sides of the channel. the dynamic has very little differences. thatthe politics is messy the economies have held up -- but the economies have held up. emma: president donald told members of congress in a private reception that he believes he lost the popular vote because millions of undocumented votes for cast hillary clinton. mike pompeo is the new director of the cia. the former kansas congressman was sworn in last night by vice president mike pence. the senate confirmed donald trump nominee to run the cia. australia is leading a push to salvage a pacific trade deal without the u.s. australia's prime ministers said he discussed the deal on monday night with japanese president shinzo abe. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i'm emma chandra. t

i think the u.s. economyr footing that would actually be consistent with 4.6% unemployment. scarlet: you mentioned perhaps nominal gdp may be understated if you look at things like wage again. what other metrics on the u.s. economy are understated? >> gdp would be the main one, which is the overall measure. employment has been strong for month after month. wage gains are now up there. the things that are driving the u.s. economy are not the typical things. their health care, higher education, sports and entertainment, new tech, like facebook, and ec-ommerce -- e-commerce. when i travel around, those are the things driving local economies. the other thing driving them are young people getting out of school, getting jobs, employment of the millennials is now 3.8%. ex-millenials is up .8%. the place you want to grow is growing. joe: at some point we will have another recession. what could push us back into it? what could kill the momentum? what are the risks? is peoplest risk thinking we are not going to have a

>> you want to get the economy going. it will go a lot faster, if he does tax cuts and regulatory reform and budget hit and supply side hit will come in at some point, do the infrastructure stuff later. if you do something like that, you buy the market because the market will like that. ashley: adam, on the floor, we're still stuck, aren't we? we're 18 points away from 20-k. we still have over an hour to go. what is the sentiment on the floor? >> there was much more enthusiasm 45 minutes ago, ashley, than right now. going into the last hour, there are as you know, buy and sell orders are coming in. people are stacking up for the closing bell. and they're rebalancing the portfolios. but the big indicator that people are looking at why this could still happen by 4:00, if you look at 10-year treasury. people, the price there is going down, yield going up. money is coming out. where is that money going in? there is a belief that money is coming into equities. we have pause right now. we're not at the 19999 we were at oh so clo

the company, the stock holders, so that, i think, does have some effect, having some effect on the economy, i say no evidence whatsoever but god bless you. i love your new jacket. i love your new jacket. [laughter] neil: daring combination. kennedy, the concern, though, seems to be and the reality of washington that things won't happen fast. if it happens in the first year, it's pretty good. but if it's going to be done in the order of corporate taxes then infrastructure plan, win over democrats, set the stage for personal tax cut, i mean, that's getting quite a mountain. kennedy: i don't think you're going to see as much growth with the infrastructure plan as you will immediately from the tax cuts and people like kentucky senator rand paul has been stressing along with physically conservatives like aei and the heritage foundation. two different things that senators and various lawmakers are trying to contemplate, people also like how quickly the president is making good on campaign promises and they're getting use today that expeddency -- expedient and not only fulfills the campaign promi

government spending is not a stimulus to the economy. there are a lot of economists who believe the more the government spends, the better the economy works. i think the evidence is on my side that won you cut the fat and the waste and inefficiency in the government, the economy performs better. reference to that was the late bill clinton years when you had a republican in congress and democrat in the white house, and you had very substantial cuts in government spending and the economy did very well. i was making the point if we deficitt the budget down and get the taxes and the spending down, i think it would be a very positive thing for the u.s. economy. the: last time you are on program, you were an economic advisor for the trump campaign. do you still work with the trump i havetration? guest: not taken a role to time still getting used to calling it the trump administration. i am just a private citizen right now working at the heritage foundation. i talk regularly with people who have gone into the white house. a great team and i am e

i think we need to distinguish between what is the emerging market economy and the advanced economy where there is clearly crisis. francine: can we really say that the world is in a crisis? pier carlo padoan: there are many ways you can define a crisis. i would say it's politics. i am thinking about advanced countries, but also about europe where you can hardly find a country where according to the polls or recent election results there is dissatisfaction with what is going on for some time. i think christine made it very clear, it's about objective change in wealth and income distribution. increasingly so, it's about expectations. the middle classes disillusioned about the future. it is disappointed about the job prospects for their kids and the security they can get out of the welfare system that may become unsustainable. it is expressing this disillusionment in terms of saying no to whatever the policy leaders suggest. we all know very well it's much more difficult to hold up a solution that is to say no. no is dominating the political landscape. it calls for a rethinking of what leade

for the mexican economy, because of the financial crisis, it has not been a growth economy. t people do not know this. geoffrey: the yellow ring is when nafta was passed and when the expression happen, since the crisis, mexico has not been a strong economy, growth between 1.5% and 2% this year, mexico is not in a great position to deal with a threat of increased trade restrictions. francine: i had a great conversation, an exclusive conversation with the executive chair of sense and their common how bad will be trade war between mexico and the u.s. get? geoffrey: we are concerned it may get quite significant and it depends on what we mean by trade war. we are modeling and potential border taxes. the firm put out a report yesterday modeling the potential impact of 20% border tax across the board for mexican products going to the u.s., talk in the administration previously of a 35% tax on auto imports. things will not be wide as that but great concern in mexico that this could get very significant. this is on the back of a mexican economy not doing that well. even though the con

this is going to impact negatively on the economy. is a chance here and there will be more chances going ahead and we should not push ourselves and we should manage the risk. is the riskou think coming out of the presidency? many of these things will be implemented. look at us at ubs and we have market access and we are on the and we can move capital within the group with europe, asia, and the business and this would be to the detriment of everyone. the chairman of ubs will have great interviews throughout the day. , we will have the ceo of dp. >> thank you. stability and the chinese say they do not want that. hearing about the subject of globalization and the case for globalization needs to be articulated better in the context of what donald trump means for global trade. coming up, a relatively calm market. >> we will head back in here nsa on the first interview of the day. ahead of the speech in the eu. this is bloomberg. >> welcome back. and guess what is making the front pages this morning? a 12 point plan and she ins she has no in

how will trump lead the economy and where? president trump represents the hope of globalism. >> saying you're going to do things and getting them done are different things. erik: brexit comes into sharper focus. theresa may comes to make her case. >> i want to negotiate a free-trade trade agreement with the european union. erik: business and financial leaders share their outlook for the year ahead and their insight into changes on the global horizon. >> there is an expectation that 2017 will be better than 2016. >> we are placing bets on technology. >> the middle class is disillusioned about the future. >> the eurozone may not survive. >> the most influence in the world right now is populism. erik: it is straight ahead on "bloomberg best." ♪ erik: hello, i'm erik schatzker. welcome to davos and welcome to "bloomberg best." your weekly roundup of the most important business news, analysis and interviews from bloomberg television and around the world. here at the world economic forum, we had the chance to discuss the week's bigg

this most beautiful town in the alps is a window to look at the global economy. people from around the world come here to exchange 80 is which will broaden the vision. this makes the annual median a cost-effective brainstorming even to that i would like to call schwab economics. [laughter] [applause] so the chinese celebrate the chinese new year. around this time people visit their relatives and friends. into say greetings to the overall world. >> it was the best of times it was the of worst of times these are the words used by a dickens and on the of one hand of science and technology followed as never before on the other hand however those challenges like terrorism and refugee and unemployment have added to the uncertainties of the of world. many people are wondering what has gone wrong with the of world? but some people blame economic globalization. and the chaos in the world. with uh globalization founded by a highly bob the and the arabian nights. but now to become the pandora's box the international community and to wish to address the economy and economic g

if the economy, if the u.s. economy saw the history and had grown at today's growth rate, we would not, today, have the per capita income of the strongest country in the world with the major economic force in the world. relate have it similar to new guinea, so growth matters and it is a big deal. and we can the fact, buy legislation give the federal theire direction about mandate, with employments, and with price stability, but maybe we also should have instructions for the fed that says you cannot just have a system in which liquidity goes to large companies because frankly what we have seen since the financial crisis is the large corporations, they have been in the position where low interest rates have been a bonanza and they buy back their own stock, and now, corporate dad is going through the roof. i am not necessarily -- i do not concentrate on populist, anticorporate jargon, but during this time, the community and regional banks, and workhorses for this month economy, have been financially suffocated and i

economic data boosted the economy. investors continue to have high hopes for donald trump's expansion policy. the nikkei starting the first trading day of 2017 in the positive. up by 1%. the index is being led by financials. export related tstocks are highr on a weaker yen. it had hit the mid-118 yen level on tuesday. it touched a two year high and construction spending hit a 10.5 year high many the month of november. that's a euro dollar. let's move onto markets at this hour in the asia pacific. we're seeing other markets modestly higher. seoul is trading flat. china markets opened in about half an hour. >>> as we start 2017 we're expecting to see big changes around the world. this week distinguished figures in the world of business an economics will be giving us their outlook for the global economy. and we're going to start with president of the institute for international monetary affairs. you are, of course, heading the japan bank for international cooperation until june. >> now, when we asked you about possible ris

not just for his business, but for the global economy. also sat down with john micklethwait. >> she has made it very clear that she is prioritizing immigration over the single market and does not want to give a particularly special deal for financial services. you are a global bank based in london. you hire a lot of non-british people to work there. shortly, generally, britain is heading in the wrong direction for jpmorgan and other banks. one of the things, not just with banks -- london is a fabulous financial center, huge economies of scale that include the people of europe. it is passed on to the customer. when they change the rules, move some of the people, yes, it will reduce my the jobs there. the brits will decide how we want to compete around the world. it's not up to me, it's up to the prime minister and the parliament, at this point. it looks like there will be more job movement then we would hope for. john: coming back to new york as opposed to -- jamie dimon: we don't know yet. it depends on the equivalency and the requirement

the trump economy is our cover story. >> under our plan the economy will average 3.5% growth. >> president trump's growth is to spur that growth with a new tax plan, reducing the current seven tax brackets to three. on the business side trump wants to cut the corporate tax rate from 35% to 15%. >> a trump administration will change our failed trade policies, and i mean quickly. >> trump also believes current trade deals are hurting american workers. he wants out of the transpacific partnership, or tpp, a planned trade deal with asia. and he wants to renegotiate the north american free trade agreement, or nafta. that's a trade agreement that was enacted 24 years ago with trump has also proposed a moratorium on new regulations and plans to roll back existing rules on industries from banking to mining and manufacturing. >> i am going to cut regulations massively. >> joining us now is ben white, politico's senior economic reporter. and from washington, sarah fagen, a former bush-cheney aide and partner with ddc advocacy. thank you both for being here today. >> thank you. >> thank you. >> ben,

we expect that the growth will boost employment and virtually eliminate the rain to the remaining economy and drop the unemployment rate to 8.4% by the fourth quarter. further ahead according to the projections, gdp will expand at an average annual rate of 1.9% over the second half of the coming decade. that represents a significant slowdown from the 1980s, 1990s and early 2000 mainly because of the slower growth for the supply of labor which largely results from the ongoing baby boomers and the labor force participation rate. it diminishes over the next few years and we expect the rate to rise to the goal of 2% and two stay there on average. we also anticipate the federal reserve will raise the target for the federal funds rate and it will be significantly higher than it is now. the current economic projections are different and thos than thot were published in august of 2016 and the agency now expects gdp in 2016 to be modestly lower than last summer and expects the interest rates in the next five years that projects a higher rate of labor force participation in the next decade and it p

the economy is recovering very well. d trump in the near term probably is going to see in even better economy than we have seen in the last year. tom: the arch debate is over part-time versus full-time america. alan krueger, there is a small startup school in new jersey called princeton. alan krueger has written with gigence katz about the economy. part-time,ut advanced? is that a good thing? ken: i think there is a certain romance for manufacturing jobs. we saw that in the election. it reminds me a lot of the way when i was growing up or even as acollege student, there was romance for agricultural jobs. manufacturing jobs are going to disappear, too, with or without donald trump. ,om: the creative destruction you and i witnessed. we both grew up in rochester, new york. in the last two or three years, they destroyed the kodak manufacturing buildings of my childhood. what is it about the present economy that will be transient and not permanent? rochesterhappened in is that it got hollowed out by globalization. lot, are les

but as caroline said, the economy has to wipe everyone, those at the top —— said, the economy has tod at the bottom. when you are talking about the impact on the economy, you have to take care of business, yes, that wants to have free movement, but you also need to think about people whose wages are being undercut, about housing, public services and so on. if it was necessary for the economy to have more immigration rather than less, you would favour that? yes, but only do if you do the corresponding thing, to make sure that migrant labour cannot be exploited and that people's wages are not undercut and that you do all the things to ameliorate the impact on people lower down the economic scale so that free movement isn't something that is just benefiting people at the top but not benefiting people at the bottom who feel that migrant labour is being exploited, that they don't have homes and access to schools and hospitals and so on. the economy has to work for everyone, which is why the stuff about wages fits completely in with this policy. it can'tjust be about brexit but about what

." >> the legacy on the economy is the conversation over the next hour. with research tamposi director institute as well as the upper datacenter and co-director of globalization to economist from two different views in his own words talking about what he did with the economy. >> it will not work without a sense they have economic opportunity today that wages are growing again poverty is falling again. stock market s to share the effects even as the stock market shatters records during a 10 year low dan >> how you respond? >> i may disappoint of poolsides but i think has been mediocre and not remarkable but his criticsen contend the lead gdperaged 2.1%s averages 2.1% in the post war era it has been about 3% grs in the growth is like 4 percent with the most important economic indicatorthe the president did inherit a deep recession and he deserves credit for that.s beene by the historical standards. with $7 trillion of deficit spending with monetary policy of american history and that has fueled some of the frustration. >> obama as economic legacy boom or bu

downgraded turkey's debt rating as political turmoil ways on the economy. e rating was cut to bb plus from bbb negative. that puts the country breaking at par with azerbaijan, bahrain, and portugal. moody's also has juncker grades on the nation's debt. angela merkel has taken aim at starbucks for excluding tax loopholes of the expense of german companies. the chancellor singled out the coffee chain during an attack on those who engage in avoidance schemes, saying it was unclear anywhere. taxes starbucks is appealing an order by eu watchdogs to repay $32 million in taxes. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. tracy: thank you so much. later in the show, the turkish lira slums as fitch cuts turkey's debt rating to junk, but next, we look at how markets in the middle east will react to trump's immigrant band. -- ban. this is bloomberg. ♪ tracy: welcome back. you are watching "bloomberg markets: middle east" live from dubai. alloway.y oil prices dropped on rising doubts that o

the global economy is doing well. is about the rustic demand in china picking up decently and that would be helpful for multinational operating in china and companies selling into china. what china buys as a domestic economy than what it sells to the world. boeing.eaking news on boeing winning a $22 billion order from india's budget carrier spice jet. 205 planes including purchase rights for 50. all of this in a statement in order for boeing aircraft. 22 billion, looks to be higher than had previously been expected. big questions about the china story. depending on what he wants to do with any terrorists. where is china do you think? be the exportsd into the u.s. and it's all depends on the trade policy that the trump administration is going to put in place. we brought hoping to hear more about that this week i think we still have to wait for a couple of where -- weeks as we -- at least. ,or the chinese economy itself or to be looked at this self, from a negative trend in it imports. if you look at the orange line you

the economy is still slowing down. ry to increase interest rates now, consumer indebtedness is at its highest. that will really hurt and with the uncertainty of brexit and the trade negotiations still there, i'm very surprised people are still pricing in a rate hike. of policy possibility error. stay with us, alex. news coming in for our viewers 's view of to the s&p china. aa minus to that. their outlook remains negative. the talk about growth in the next few years at or above 5.5%. so that is the top line coming from s&p. ng there reaffirmi outlook at a growth level above 5.5% over the next three years. of next, we'll talk about banking. what can we do? rbs is set to take its $20 billion charge tied to u.s. mortgages. we discussed banks. that is next. this is bloomberg. ♪ matt: welcome back to the european market open. and matt miller in berlin. 23 minutes into training. royal bank of scotland says it will take a 3.1 billion pounds charge in its fourth-quarter results as it moves closer to resolving a u.s. probe into

is that a good thing for the economy or a concern also? itative easing of this magnitude is something we have never seen before. no matter what administration is in there, the issue is how do you back out of that and get into more normalized interest rates. >> in terms of the investment environment, is it a positive thing, the talk of deregulation that we're seeing or is that on a relative basis a bad thing for investment firms? it will benefit the banks as opposed to people like yourselves? >> i think it's selective. depends on what type of deregulation. making it easy for businesses to start, gain share, create businesses is positive. the beauty of private equity, we can take a long-term approach. bane capital, which stemmed from consulting analytics in the '80s is a business that's prided itself on building and growing great businesses that can withstand these cycles. we've been through republicans, democrats, all sorts of administrations, sticking to that knitting served us well. >> some people say the animal spirits are getting woken u

the world is changing and economies are dynamic. i know you are working to that now but what do you see happening in the global economy that now we should be thinking about looking forward here assuming we have future allowance. >> i think one of the issues that we are quite innovative around with the economy and i think you heard from victoria about this this morning but that is, it is a new issue that is a cutting-edge issue and it's only going to grow in importance as data flows and grows exponentially. this isn't just an issue for internet companies are technology companies. every manufacturing company in most services companies are increasingly dependent on flows of data and the free flow of data across borders. establishing rules that allow it is critically important around the digital economy. i think we are having in interesting conversation with the wcl after we have gotten out of our dough hot cold is back called a sack about issues like e-commerce and the digital economy are certainly among those. i think that's critically

imposing hundreds of billions of dollars in costs on the u.s. economy, and millions of hours of compliance, busy -- compliance busy work on employers and employees across the country. all of that excessive red tape places a huge burden on small and medium-sized businesses that create jobs in new jersey, the state i represent, and across the nation. i have toured quite a few businesses and the consensus is clear. let american workers innovate, build and create and not spend time complying with regulations that are impractical and often a waste of time and money. the reins act is constitutional. it does not violate the doctrine because it does not permit congress to overturn valid regulations. also, a joint resolution satisfies the bicameralism and presentment requirements of the constitution. the reins act will bring an important check against out-of-control federal regulations and foster stronger economic growth. it is an important start to the agenda for the 115th congress and i urge all of our colleagues to support this important piece of legislation.

analysis of the badgett -- budget in the economy. >> washington post. with discussions in the past that reiterate most of the growth looking at, comes from programs like medicare and social security. talk about making changes. can you talk about whether that is an effective approach or to have a significant impact on long-term care? >> the sort of change we need to change the future 20 or 30 years down the road are pretty significant. discretionary spending, taxes, mandatory spending, pretty significant needs to be done. when demographics kick in, we start for a high level of debt which to give some idea of the comparison, the interest payments alone are about 1/5 of mandatory spending. and we 10 years over half the size of mandatory spending under current law so we have some really serious problems, the issue of outlays. >> the report shows the cumulative debt, $8.7 trillion, the same as it was in the august report. is there anything in this report that strikes you as a significant change from august? >> not really a significant change. that is notable