a sign that the fed saying the economy is strong enough to stand on its own. i think the fed saying that it hopes it's strong enough to stand on its own but at the said same time the fed is showing us that our in the our actual g.d.p. growth is below two percent in the first quarter was what a one point two percent the atlanta g.d.p. now is expecting it to be one point nine in the second quarter and then the forecasting one point five in the third quarter that's below two percent you're barely treading water and we're seeing a lot of economic signs are actually rolling over and you're seeing consumer credit demand is slowing you're seeing corporate demand is slowing and any fracturing levels are back where they were in two thousand and five you're seeing the auto they used car prices are really plummeting so you have all these signs that the economy is actually slowing significantly and on top of that we have a ten year interest rate that's what really really well i won't point two percent and that's after three point five trillion dollars in stimulus doesn't s

we're watching very carefully how the actual economy performs. and, you know, i continue to believe, though, that with job growth running well in excess, even with a moderation of the level that's needed to provide for new entrants in the labor market, we do have a strengthening economy, with policy accomadative, all we're doing in raising rates is removing a bit of accommodation heading toward a neutral pace. i see that as appropriate. we're not moving to aggressively as to put a break on continued improvement in the labor market. but i think that that's a prudent move, to move in a gradual way to remove accommodation with unemployment now, and not only i should say the unemployment rate, but i think any indicator of labor market performance and tightness that you could look at, whether it's household perceptions of the availability of jobs, difficulty that firms report in hiring workers, the rate at which workers are quitting their jobs, the rate of job openings. all of these indicators do signal a tight labor market. now, with inflation below 2

>> the u.s. economy is rolling over. our sincere hope is that that doesn't happen. , the fed isat telling you their data dependent. but when you have inflation rolling over and then seek to unwind the balance sheet at the same time without any recognition of the fact they are not looking so hot, if that is not data dependent -- tom: what is the question you want to ask janet yellen at the conference in six minutes? is, whyuestion to ask do you continue to hike rates in such a low inflation environment? there is no risk to keeping them low. tom: and your question? there was a lot of talk. >> to move down in inflation is temporary. i would ask what is the reasons why you think inflation moving down is temporary. why should it not just be down? scarlet: transitory, is that still the way for inflation? tom: what do you want to know? >> what would it take for you to get off the path of tightening? what do i have to show you for you to give up on the path you have agreed on. tom: this is critical. vice chairman fisher sevier al

we're watching very carefully how the actual economy performs. and, you know, i continue to believe, though, that with job growth running well in excess, even with a moderation of the level that's needed to provide for new entrants in the labor market, we do have a strengthening economy, with policy accomadative, all we're doing in raising rates is removing a bit of accommodation heading toward a neutral pace. i see that as appropriate. we're not moving to aggressively as to put a break on continued improvement in the labor market. but i think that that's a prudent move, to move in a gradual way to remove accommodation with unemployment now, and not only i should say the unemployment rate, but i think any indicator of labor market performance and tightness that you could look at, whether it's household perceptions of the availability of jobs, difficulty that firms report in hiring workers, the rate at which workers are quitting their jobs, the rate of job openings. all of these indicators do signal a tight labor market. now, with inflation below 2

the benefits our economy would be huge. ed sectors like manufacturing, the car industry, financial services, pharmaceuticals, and emerging industries, in the housing sector, in travel, in companies large and small right up and down the country, employing between that millions of people, our departure from the eu is underway, but ensuring that it happens via a smooth pathway to a deep and special future partnership with our eu neighbors, one that protects jobs, prosperity, and living standards in britain will require every ounce of skill and diplomacy that we can muster. yesterday was a positive start. it will get tougher. but we are ready for the challenge and confident that we can deliver for british jobs, british business, and british prosperity. thank you. [applause] >> and now i am pleased to hand over to the governor of the bank of england, mark carney. [applause] >> my lord mayor, chancellor, ladies and gentlemen, in recent weeks, we have been reminded of find balances. balances in decisions, in parliament, and in life

but we're looking at the continued growth in the u.s. economy. but also worldwide, we're having a recovery in europe. and we think we still have more room to run on the upside, sue. >> all right. on that note, jimmy lee with the wealth consulting group. thanks so much for joining us tonight. >>> and as we continue, coming up, the future of airport security. >> it is a new 3d look inside your carry-on bags that could change ow quickly you get through airport security. i'm phil lebeau. that story coming up on the "nightly b >>> here's a look at what to watch for tomorrow. the philadelphia federal reserve will release its business outlook survey. we'll see if the labor market is still strengthening with weekly jobless claims. and a fresh read on homebuilder sent sentiment. that's what to watch for on thursday. >>> a new lawsuit contends that wells fargo made unwarranted changes in loans even as it was trying to recover from its fake accounts scandal. according to "the new york times," the changes typically lowered monthly loan payments but the bank c

it wants to raise rates but the economy may not allow it to. on top of it, one other factor that you didn't mention which i think is very significant as we move forward into the year and 2018, the political environment and policy inertia that is existing in d.c. i think it means a weak economy, policy inertia, means very slow if he normalization process. trish: we have the market he reacting a little more postively, nicole up 35 points right now. the fed delivered. they did exactly what investors thought they were going to do but again i think there is a conundrum here as jay points out, they may want to raise rates but can they? >> that is a great question. economic reports they know oh so welcoming are tepid, going back to early 2016. retail sales today. inflation report. we know that they're watching inflation so closely. we are seeing markets right now at 21,354. so you now just at this moment, we're at all-time record highs. so the market sold off, digest ited moved right back here to the record highs. he keep a close eye on the 10-year bon

the real economy struggled. d companies that attracted investor interest, we need to clarify the situation. much of the economy do you think is still in the dark, in the shadows? would you say 30%? simos: i am not sure what that would account for. if you are talking about the economy, i would say the numbers are much less than that. if we are talking about the economy that is burdened by dbet itt might be about -- debt, might be about this area, yes. matt: what does the sustainable debt picture look like? how much debt can greece sustain going forward? the payments are such that until 2021, debt -- the servicing of the debt is considered quite sustainable. if we take some measures that will extend the payments, you know, better payments to 2021, i do believe it is sustainable. regardless of the ratio, we do expect the economy will grow significantly after that. not -- i am not sure if it can grow at 3% per year, which is quite high. but at least the 2% growth looks to be achievable, and this will bring variation

backbone of the economy. accounting for more than half of all u.s. sales, according to the small business administration. they've also created 66% of all net new jobs since the 1970s and that's created some 8 million new jobs since 1990. but running a small business is no easy task. just ask tamara kennedy. she started as a secretary for a franchisee and eventually bought one of her own in 1999. before the recession, she had grown to 14 sessions but had to close four during the downturn. >> the hardest part was letting 50 people go. never an easy thing to do knowing that those folks had people that counted on their income. part of communities that that income made a difference in. >> reporter: but she has persevered with nine locations across minnesota and iowa. this is important for small companies. the national federation of businesses for 2016 found the cost of health insurance the greatest concern followed by regulations and taxes. despite those hurdles, new ebt p entrepreneurs are optimistic. he's bringin

can massive attacks have an effect on the economy? in the sectors we talk about but the encouraging thing is the market has remained resilient despite many attacks we have seen in europe in 2017 alone. dagen: the 30% number we are looking at is higher than it was after 9/11. >> another number, 60% of americans believe a terror attack could happen in the next few weeks, at any time. i don't think stopping americans from going to events, i was at an event last year and someone -- anonymous hack and isis website, isis targeted the attack, security was phenomenal, unbelievable the extra security. the place was sold out, everyone showed up. when you ask americans are they reticent to do something, the answer is yes but i don't think it is stopping them from going to these events. arthel: do you worry about these events hurting the economy? >> the intention of attacking soft targets like this is to have the greatest psychological impact possible on people to make people feel they could be targets at any time. there is reluctance to these bi

million small businesses are truly the backbone of the economy. accounting for more than half of all u.s. sales according to the small business administration. they've also created 66% of all net new jobs since the 1970s and have created some 8 million new jobs since 1990. but running a small business is no easy task just asktamara kennedy she started as a secretary for a franchise and bought a taco john's location in 1999. she'd grown to 14 restaurants but had to close four during the downturn >> the hardest part was letting 50 people go not an easy thing to do. part of communities that that income made a difference in. >> but she's persevered with nine locations across minnesota and iowa resilience is important for small companies which face a myriad of challenge from the economy to corporations. they found the cost of health insurance ranked the issue of greatest concern followed by regulations and taxes. new entrepreneurs are optimistic >> the refugee is bringing his culture to the windy city selling products made with the gluten free grain. >>

secondarily, i mean, i look at the u.s. economy right now and i did a lot of analysis on the broad economic data and where they're telling me we are in the u.s. economic cycle and we're in the eighth inning. so, look, i never said we're the bottom of the ninth, but we're late they're more mid-cycle right now. s so i just thinking notwithstanding the last six months, and you can always pick your points, that the u.s. market has kept up, i think there's less risk in those markets and certainly less policy-related risk. i actually think despite all the chatter about, you know, what the house and senate are going to achieve in the united states, i would hazard to say that emmanuel macron and the right-wing coalition in the national assembly are probably going to get reforms done more quickly in france, the second largest economy in the eu, than will see them in the u.s so i think that's a less-risky market, more upside potential, a friendlier central bank. look, we can't have it both ways for so long, we talked about how friendly the f

for years, an optimist on the american economy. ical turmoil in washington? drew: i am still an optimist. it is hard not to be optimistic. we are moving toward the longest had.ery the u.s. has ever when people talk negatively about the u.s., i don't know what they are looking at that i am missing. tom: for those of you on radio, this is a twin deficit chart. a combination of the budget deficit along with the trade deficit. i would suggest all the economists would suggest this is malarkey. is this going to be a story discussion in the next two or five years? drew: i think it will be. i think the budget will be back in focus in the next 2-5 years. if we get tax cuts, the question is how big and what that will do and then, of course, everyone is paying attention to trade because there has been a lot of noise, but not a lot of movement in terms of the different things that have to happen on the trade front. francine: if or when. when are we going to see this? if it gets pushed -- if tax reform gets pushed into 2018, are cfos going to be

the economy is starting to grow again. been in one of the deepest recessions in living memory. and inflation is coming down. they are cutting interest rates. on the ground a lot of things are looking quite well in brazil. you have to say they are riding out this bear market in commodities. francine: justin, thank you so much. still with us is brian coulton and mark gilbert. rbrian, what do you make of all this? again, this is a crisis that is steepening, but as justin laid it out, the economy is getting better. >> the economy has been through a massive adjustment. the source of the declines in brazil allowed the economy to come back a little sseff'st after rou impeachment, there was a surge in risk confidence. shaped any chance of a v recovery in brazil, which you might expect, i think this puts a damper on that. >> if you look at the mscis function on bloomberg, the brazilian currency was the second worst performing currency against the dollar this year. foreign investors just don't like the concert. tom: we will come bac

broadly speaking, the japanese economy has been doing better so the answer is the global economy is doing is there is very little coordination among central banks. it does not matter too much for the fed what's going on around the world other than if it has an impact on the dollar and given that the dollar is moving sideways, we don't see that as a major affect on the decision of the fed today. the boe meeting is on thursday and we got some disappointing weight data out of the u.k.. tom: we got real inflation out of the u.k. scarlet: what does that mean for mark carney? >> the key issue is that there is quite a divergence on the inflation front in the u.s. including the information we got today. not showing much signs of inflation. they's data dependent, should say the inflation data is not strong. tom: we are three minutes away from the fed decision. within your research report, it's stunning the lack of investments in this nation. is it because the fixed income jersey is so messed up because no one knows what rate structure to use? >> the simple explanation as we are still below full ca

when does it become a problem for the economy. what's the critical number?> $500 billion is a lot of money still. so nobody -- you struggle to find someone who would tell you this is really critical, you know, it's in danger. agencies look at the net assets of the kingdom, and it's around 100% of g.d.p. so it's strong. the concern is people don't know why the reserves are ede-- are declining and it's heading in one direction. that's creating uncertainty. when will this decline ease? when -- because the fwoth says we'd rather spend through raising debts rather than reserves. and the government isn't -- there aren't really that many signs of the government increasing spending in the economy. that's the concern. people don't know what's realy driving this decline. >> we've got more on this from bank of america-merrill lynch managing director and managing director of frontier management research. >> this is something we've been expected, we expect the saudi economy to continue facing some head winds and growth, to be lackluster this year. and looking forward, we

first the economy, it is always the economy stupid. maybe not this time. say they will balance the budgets by 2025 and will balance the budgets by 2025 and will stick with plans to raise personal tax allowances and cuts to corporation tax. labour say they will inject £250 billion into the economy over ten years. there will be no increase in personal national insurance, but a top rate of 50 pence and higher income tax for those who earn over £80,000. if there is a hung parliament, the snp would support plans to balance the budget over five to seven years and pledge to protect the low paid, but there would be a top rate of pence. and the liberal democrats have, everybody would spend extra on income tax and they will inject an extra £100 billion into infrastructure, house building, broadband and schools. now the devolved issue, health. ukip would give the nhs an extra £9 billion a year. this was there in 2015. cracking down on foreign nationals who are not eligible to use if the —— the who are not eligible to use if the -- the nhs. who are not eligible to use

by tying the issue of regulatory burdens on our businesses which slow the economy with the fact that e need a thriving economy in order to address our debt crisis. and so the idea that we've come up with is this. if we're face and we will be faced with increasing the -- increasing the debt limit in this country again, then in order to increase that debt limit, shouldn't we then face -- shouldn't we put in place some kind of a mechanism to spur economic growth at the same time? because if you're just increasing debt without economic growth it's a spiral that results in more broken credit. so the idea would be this, that you take -- say you increase the debt limit by a trillion dollars, then would you at the same time have a regulatory reduction, reduce the regulatory burdens on businesses by some percentage. so maybe have a 15% reduction in the -- in the cost of regulations for every "x" amount that you increase the debt. so what do you think about that kind of approach to find the regulatory cost, to limit that and use that? >> i think anything you can do to reduce regulatory burden w

the british government sets out its legislative programme for the coming year today, and the economy set to take centre stage. ancient custom means it's actually announced by queen elizabeth, hence the name of the occasion — the queen's speech. the recent general election left the governing conservative party without a parliamentary majority. so it is currently working on a deal to get the support of northern ireland's democratic unionist party. but that minority status could limit how bold the government wants to be, at a time when economic growth in the uk is slowing down and it is negotiating its exit from the european union. there are plans to stimulate the economy so measures to boost major travel infrastructure projects are thought to be on the cards. but plans to reform pensions, and social care for the elderly have proved very controversial and could be left off the government's wish list. with me is lorenzo codogno, london school of economics and political science and lc macro advisors ltd good morning. thank you for coming in. let's have a talk about what is likely to be in

>> technology is changing the economy. s certainly replacing jobs, and technology can also be used to grow jobs. it is our responsibility to help small businesses and large businesses all over the world use technology to grow their businesses so they can grow jobs. shery: you can see much more of that exclusive interview at bloomberg.com. and coming up, more conversations with leaders in politics, policy, and the markets. bruce berkowitz has advice for investors who feel that they have to buy today's hottest stocks. >> a couple of problems and it is going to be difficult for investments to recover over a period of time. shery: this is bloomberg. ♪ . i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your business. strong and secure

is part of his approach to grow the u.s. economy. >> but he has said repeatedly during the campaign, he said very often that it was a hoax. at one point he tweeted the concept of global warming was created by and for the chinese in order to make u.s. manufacturing noncompetitive. he tweeted ice storms roll from texas to tennessee and it's freezing. global warming is a total and very expensive hoax. does the president still believe that? >> wolf, as i said, what the president is committed to doing is protecting the united states and growing our economy. we started out talking about regulation and regulatory reform. we moved on to tax and tax reform and he is committed to growing our economy and providing better job opportunities for american families and american workers and that is what the president is committed to doing. >> but with all due respect, you're not answering the question. do you know, have you discussed this with the president, does he still believe that climate change, global warming is a hoax? >> i'm answering what t

about the risk for the economy. ter this decision, we saw the spread fall below 80. 188 showsberg chart 9 how the spread is falling if you layer it up with economics, it is falling. is the treasury market sending warning signs on the u.s. economy? traditionalu use a view that a flattening yield curve is a warning sign of economic weakness slowdown or recession or close to recession, that would be a traditional view as we are seeing it. there is another force of work in the world, coming out of the eurozone. at that is affecting the intermediate and of our treasury market. when you look at the spread, i cannot see the chart. i do not know if you can get the spreading yield over the last five years between the 10 year government bond and germany versus the 10 year treasury here , you would find the spread is widening. why? the negative rates in europe are pulling down our intermediate rates. there was a force at work that blends the yield curve from its traditional work. i believe that is still in play. draghi has said

a risks to the global economy right now. ency adjust? what would you expect from renminbi as the pressure cooker teakettle? dr. el-erian: i expect them to allow it to slowly weaken again. tom: we believe that as a short answer, we need an essay from bloomberg view from mohamed el-erian on the renminbi outcomes of all this in china. this has been wonderful, thanks to malcolm scott in china for his perspective. in the next hour on the fed, jonathan. this is bloomberg. ♪ ♪ tom: this afternoon, look for forward guidance from chair yellen and this morning we consider wage growth, a lack of inflation, we consider the path to july 26 and september 20. it was a test the attorney o jeff sessions showed up to speak to the senate intelligence committee. republican supported and , aocrats sparked outrage senator from california cannot get a word in. prime minister may consider's too hard and not to soft brexit. this is "bloomberg surveillance." from new york, i am tom keene. i tried to write the script and it went down in flames with jef

♪ >> the secret is the u.s. economy is doing fine. update --loomberg his upbeat about the u.s. onomy. meanwhile, the u.s. weighs stay with the paris agreement. >> the prime minister cannot be bought. so why should you? by othera may slam leaders. the election one week away. data.ng it is the final reading for the month of may. the preliminary estimate and 57 is where we are right now. a shows it is expanding at pretty hefty rate. here's what is happening to european markets. we've had five consecutive days of decline for the stoxx 600. euro rising yesterday. german 10 year years old is 30 basis points. crude is rising. datad show stockpile climbing for an eighth consecutive week. trump willt donald announce his decision on whether to leave the harris climate agreement or not. he is leaning towards quitting. meanwhile, china and the european union commit to the pact. according to a statement, the two -- may's decision to skip and event -- televised event her night was seized by rival. he announced he would appear. minister is not here tonight. she can be bothered, so why should y

both ways. >> where is the u.s. economycond quarter? we got another disappointing read in the form of durable goods yesterday. business investment was supposed to be picking up along with this increased confidence after the ae l election the u.s. economy the last six, seven years th s has grown 2% some thought it would pick up this year. the any rebound we've seen is in the soft data or sentiment data. the hard data and the economy is pointing to another year of about 2% growth. >> quick comment on mario draghi's comments earlier, the euro popping 6.7% off the back of them. >> the ecb is having its version of jackson hole this week. europe has grown more rapidly than the u.s. over the last several quarters the focus on the ecb is whether or not they begin to taper their qe program and the euro will respond to that. >> rich clarida, thank you very much for joining us. >> you bet >> before we go, you're headed off to europe tonight for a good cause. tell us about it. >> i'm off to cycle from milan to monaco over the next four

he was also tackled on the economy and tax. e pay an extra 1p of tax. you will have attitudes from people to say they will solve this problem without any money or we could be brutally honest and say by the price of a cup of coffee a week, we can have the best nhs and social ca re we can have the best nhs and social care in the world. snp leader nicola sturgeon was also asked how to deal with terror threats. we have got to tackle and address and challenge extremism wherever we find it and i believe very strongly that we have to do that with the muslim community. we must not scapegoat the muslim community. she's faced several hostile questions about her demand for another referendum on scottish independence. you have lost a lot of boats full snp voters by going on with this referendum at this time. i am not proposing it fiow. this time. i am not proposing it now. i accept that point. when you proposing it? at the end of the process. it should be our choice will stop when the time is right and we know what brexit means for the futu

go up whenusually the economy is down. china, beer sales were down over 4%, still had over 5% of decline, and russia's all beer sales fall by nearly 8%. more beer for the rest of us. laura: we're taking a short break. stay with us. 06/05/17 06/05/17 [captioning made possible by democracy now!] amy: from pacifica, this is democracy now! >> since the emergence of the threat from islamist inspired terrorism, our country has made significant progress in disrupting plots and protecting the public. but it is time to say enough is enough. amy: 12 people have been arrested in london after three attackers killed seven people and injured 48 more on saturday night after attackers rammed a van into pedestrians on london bridge and then stabbed people

that's undercutting but what's good for the market is not good for the global economy. times two million dollars are you filling in for lindsay france you're watching boom bust broadcasting around the world from right here in washington d.c. coming up tonight c.e.o. see the ride sharing app is on the hunt for a new chief the founder resigned amid sexual harassment claims that the company and other complained and the shareholders revolted and business in the e.u. the queen has spoken now britain's prime minister is promising to listen more closely to business concerns about britain leaving the e.u. finally bitcoin moves on up the crypto currency surges back in a big way and it may have india to think that a whole lot more on boom bust it all starts right now. the ride is over for over founder and c.e.o. travis colonic who stepped down from his position late tuesday the new york times broke the story early wednesday morning after learning that several major investors delivered a letter to callan and demanding new leadership the embattled former chief executive founded the

. >> the paris accord would undermine our economy, hamstring our workers, we can our sovereignty, impose unacceptable legal risks and put us at a permanent disadvantage to the other countries of the world. i was elected to represent the citizens of pittsburgh, not paris. >> dropping out of the paris climate accord to help out our workers and economy. donald trump's critics say the opposite will happen. who is right? this is bulls and bears. gary smith, john wayfield, lee carter and julie, welcome to everybody. what impact will withdrawing from the paris climate accord have on american jobs? >> as trump would say. it would be hugely positive. this is just the kind of liberal boondoggle that we elected donald trump to get us out of. this was always they used to say in my day sleeves out of the best. other countries gave up nothing. china said we will reduce our emissions in 2030 just when we would have estimated even without the paris accord they would reduce emissions. pakistan said they would reduce emissions to the fullest extent possible which means nothing. those countries gave up not

what worries you about the economy. it almost seems like inflation was the key word, inflation is the power of prices to rise, and that 1.7% that is significantly lower than the two plus we've seen for inflation back in january. >> you hit it right on the money the uncertainty by the data is also compounded by the uncertainty that chair yelled yellen is discussing. there's no need you need to address the balance sheet. it causes people to say how are they going to normalize it. is it rates or the balance sheet and what's the combination. one thing most concerning is that the verbiage says we are going to fit focus on rates, but at same time will drop the balance sheet. there's nothing in theory that said the balance sheet should stay where it is. reducing uncertainty is something that they should be doing and yet you see from the market reaction she is actually introduced more uncertainty. >> we agree. i completely agree, especially in the point where she disagrees with the president. the president says we will have 3% g

. >> the economy needs the boost. if not, the economy will stay in a rut. the first thing they need to worry about is not revenue neutrality and stuff like that, but what helps the economy immediately. we know what does it, it's radical cuts on tax rates, on the corporate side and the personal side, you just do it and the idea that you can forecast ten years out, hey, weather people can't forecast five years out, it gets dicey. get the job done. david: the idea, bruce, you have to pay for it with certain things. bill clinton didn't buy that, he went ahead with a dramatic cut in the capital gains tax from 28% down to 20% and look what happened. the revenue increased dramatically after the cap gains tax was cut. a major increase in revenue. you cut tax rates and you get more government revenue. >> well, i think the problem is concerned here, and donald's tax cuts would blow a hole in the deficit. i think that paul ryan gave a little bit of a forecast here when he said that, whether the president asked flynn to drop this investigation, he said something about--

and mixed in a jobs report for the u.s. economy. e unemployment rate a 16 year slowerntrasting with forecast hiring and wage growth. they don't obsess over one number. and then count down to elections in the u.k., polls show prime minister theresa may will likely fall short of a parliamentary majority, meanwhile, jeremy corbyn attacking the prime minister for her response to america's paris accord exit. and speaking of climate, everyone from world leaders to reacting to present at all trump's decision to leave the paris accord. we examine the global fallout this hour. we have a look at where european equities are trading right now 30 minutes until the end of the friday session. stocks arising across europe for a second day, up over the week. the first weekend for as well. the ftse 100 at a record high. by .5% today, up to levels we haven't seen since last september ahead of the big one, the ecb meeting on thursday. bonds, commodities, and cbs is your final three columns. volatility, how's it looking ahead of the u.k. election on thur

you don't expand the economy by lending to the top borrowers, you expd the economy by lending the smaller medium size businesses that are hiring people to grow their businesses. we all know that the very credit worthy borrowers in the world have access to capital and bank loans and capital markets. that's not where economic growth comes from. economic growth comes from this sole proprietier ha has ten employees to 30 employees. >> you think that -- >> they triple their employees. that's how you create employment growth. we know that. the facts are out there, small and medium sized businesses drive employment growth. >> they have not been able to get loans? >> they have not been able to get loans because the credit worthiness of those institutions doesn't score well enough for the highly regulated institutions to give them loans and they don't have access to the capital markets. >> we do need smart regulation, correct? >> of course we need smart regulation, we're very pro smart regulation, not anti-regulation, we're pro smart regulation that helps the economy grow and creates jobs. we're i

largest block in the global economy for the foreseeable future is the north american economy. ze nafta us so we can do better. we think there is scope. many things are happening today that would be natural to include in that integration program. either they don't exist or we do not have the economic ability to put on the table in 1994, but now we do. >> we had a rocky year last year. i think that a lot of the correction that is taking place has been the result of reactions that have been taken in the monetary side, the foreign-exchange side, the fiscal side. basically, we are going to look at dynamics, keep it consistent with the one off week inflation shock. we are expressing some confidence of what we have done being sufficient, and it will be sufficient for from now on until the end next year. it is hard to say. >> right now the volatility in the treasury market and the volatility for the peso by historical standards is right now very low. >> yes. >> is the market optimistic or realistic? >> you would have to ask the market. [laughter] >> i think in general, markets have bee

a more efficient tax quotes can get the economy going again. can you expand on the administration viewing on tax reform and economic growth? >> sure. >> let me first say fundamentally we believe that we can get back 3% sustained economic growth. that's not this year and next year but we can get there and that's going to be a combination through tax reform regulatory relief and trade. on the tax side, our fundamental principles, we need to simplify personal taxes and cut down the number of brackets and cut down special interest deductions and make it so most americans can fill out their tax returns on a large postcard. on the business side, we have a very uncompetitive system. our taxes are some of the highest in the world, we tax our companies on worldwide income, we have a system of deferral which leads our company to leaves trillions of dollars of offshore. we want to correct that and make our companies competitive and brings back trillions of dollars so it can be invested here in america to create american jobs. >> thank you, a good lead into

we have been one of the faster growing major economies of the last three yea rs major economies of theyears or so, so major economies of the last three years or so, so i think we can build on that. butjust briefly, david, for businesses whether they be small, medium or large, i mean the situation with europe and leaving is one of their key concerns and they are very concerned about the commitment you've made to net migration of the tens of thousands and what that will do to the labour market, to the skilled workers they're relying on from outside the uk? well, what i would say to they will, look,er‘ not going to end immigration, but it is —— look, we're not going to end immigration, but we are looking to move to a different model because it is not sustainable. what is important is that we train up our people that we do more on skills, that employers are engaged with that's a key part of our modern industrial strategy so we have got our own skilled workforce so that employers have got the people that they need. all right, david gauke, thank you. the uk's chief secretary to the treasury

i do my best on the economy. i'll leave the stock market. >> and i just, i was just going to say that i've been at conferences all week. and companies sound really good. they really do. across the board. >> financials don't sound great. >> they've been at conferences all week. >> i've met with brian moynihan and was at the conference where he lowered guidance slightly. trading is volatile in interest. the rest of his book, book, what they're doing is very good. productivity, cost controls, et set area. it's not effort at the banks. across the board, from caterpillar to estee lauder to some of the banks, they said good things at this conference, so i think they feel good and again, we don't even have any real trump policies in place and yet, they fell pretty good. >> you have one policy in place. the end of war on business. from kudlow, the end of the war on business is why this market is not going down. >> stop. >> no, i'm not going to stop. >> was there a business when the s&p -- look at this. how do you know it

and the structural changes in our economy, sot is happening inside russia is much more important. >> i can't imagine that sanctions don't matter. >> it may be important for the u.s., but not for russia. we are concerned with what is happening in our economy, the problems we have in the labor market in terms of financial investments. >> you are concentrating on this issues? >> we are not dependent on the capital flows here like other emerging markets. we have learned to live without huge flows from international markets. no follow-up for the sanctions, and no fallout from the investigations taking place in the u.s. congress? >> it doesn't matter much for us. fed: there was plenty of speak on wall street this week as the fomc is widely expected to raise rates at its upcoming june meeting. with hard and soft data sending mixed signals and concerns about winding down the balance sheet, there is still room for surprise. this week, three pet presidency spoke at length with bloomberg television, starting with our exclusive interview wit

is the world's's largest economy. we have companies in the current tax scheme that do not pay taxes in the u.s. that are not u.s. companies. if we switch to a destination-based tax code like we would get with a border adjustment tax, like we would get with other reforms we are the factthe tax code, that you are participating in the united states economy would drive revenue growth. idea thatook at the the government will do punitive things if you don't to this, we are going to do that to you, it goes to the premise that we are just a country full of peasants that do what we are told and that is not the country founders created. the money is your money. the government has a texas do because we agreed collaboratively to be part of a ision, so the idea that it the government has his money is the premise from which it originates. the government will say if you don't do what you're told, we will take your money. host: if you miss more left with warren davidson, republican congressman. david, -- pamela, go ahead. caller: in r

but, there could be some fiscal moves to help expand the economy. thes a fine thing for lawmakers to pressure the bank of japan to taper but they have to do their bit about stimulating the economy. the other thing is structure reform. there has been very little in japan. that is the third arrow of abenomics. they are not going to do it by monetary accommodation alone. more moore fiscal boost -- fiscal boost. on the structural side, the third arrow. has abenomics delivered much? all, on the fiscal side, there is quite significant fiscal the rest. -- fiscal thrust. 4.5% of gdp. fiscal policy is at the margin, net positive here. the more important thing is that the private sector is very slowly starting to kick in as an engine for growth. on track.eing exports most importantly, you see domestic business investment expenditure starting to kick in so you find that private risk takers am a and turner's come for the first time in about 10 years, committing public capital into japan and that is where growth is going to come from. matt: what do you think the

, the u.s. economyts improve, etf's go up in value, and there is a direct correlation. but an etf is only as good as the constituents within the etf. and it doesn't take into account the illogical extremes. there is a point where it makes no -- no sense to buy etf, and general markets are overvalued. they are highly capitalized and part of etf's are overvalued. so it does bother me that a lot of sort of blind decisions have been made, and thinking as being delegated to a mathematical equation, that everything should average out ok over the long the last time people got caught up in this, they were and itmoney for 13 -- took 13, 14, 15 years to recover, and that's not thinking about the valuation of that bottom line. >> are we at that point now, where it doesn't make sense to buy an etf because the underlying valuations are two rich?o >> it doesn't make sense to me. i'm not a growth investor. i am not a visionary. i am the guy looking to buy a dollar for $.50. if i'm wrong, i get my $.50 back. if i'm rig

confidence in the economy is returning. the government bond issuance, it is equities in ofh -- as well, billions dollars, but the biggest concern for the egyptian economy is the inflation which is expected to fiscal year.n the here is what the prime minister had to say. >> we need to move fast on bringing down the inflation. if we succeed in the coming six to 12 months, we are under control and in a position to be able to deal with anything. anything less is risky for us. haslinda: if you remember, betty, they raised rates 200 basis points recently, and the government is planning to remove subsidies for electricity, fuel, which means the people in egypt could be in for tough times ahead. the finance minister said the move is necessary to ensure the economy recovers fast. all right, thank you so much, great interviews from aiib . lots of big news coming up. we will speak to the general electric vice-chairman at the paris air show. we are also hearing from qatar .irways ceo that is at 6:30 a.m. eastern. don't miss our intervi

traders say the economy will survive. t steve was just talking about, that says business confidence has evaporated as theresa may clings to power in the hope of staying in downing street. mark cudmore is here. is further volatility on the way? reporter: i think absolutely there will be more volatility this week. the market will remain sensitive to headlines and we will get more of these headlines of the former government. the final agreement to have a majority coalition. that is the biggest factor. there is negative sentiment about the fact it seems theresa may is weakened. and she has had to welcome back former rivals from the other side of the party. i think sterling will remain a little bit vulnerable, but that does not mean there needs to be sudden moves. it is in portage remember the long-term macro fundamentals -- it is important to remember the long-term macro fundamentals for sterling are fundamental. the election provides the excuse to sell, the catalyst to sell on the long-term stories that were in place already.

>> technology is changing the economy. ing jobs, and technology can be used to grow jobs. it is our responsibility to help small and large businesses all around the world use technology to grow their businesses so they can grow jobs. shery: you can see much more of that exclusive interview at bloomberg.com. and coming up, more conversations with leaders in politics, policy, and the markets. bruce berkowitz has advice for investors who feel that they have to buy today's hottest stocks. >> a couple of problems and it is going to be difficult for investments to recover over a period of time. shery: this is bloomberg. ♪ ♪ >> the world is not these four countries. we have a lot of new destinations we are launching, and we will expedite those lunches, continue to grow. we do not get intimidated. and we will find new markets and there are many markets that are longing for qatar airways to fly into their airports. >> just in the near-term, what effects are you having operationally in terms of running the business? >> it is having a