the economy shrank. pefully his agenda is to make the rich get richer and the poor get poorer and all these people who voted for him, i hope you get exactly what you asked for. you ask for the devil, you got the devil. host: when it comes to the economy, have you personally felt a change in the last six months in how the economy is affecting you? caller: i've been a truck driver for 30 years. i have no pension, i have no retirement. i probably won't have social security. that's how the world has changed. during the 1980's when they were having the drug war, they were shifting cocaine with old man bush. at the same time, they are giving the death penalty to people who done less than they did. i'm very mad at the democrats, too. they haven't given us nothing. universal health care, none. they didn't give us the popular vote through the leadership of obama. it's not because he's black -- i will vote for someone who's purple. all they gave us was gay rights, which is against my christian beliefs. you cannot d

why might the economy react that way? the reason i think that you could give is that with the election of donald trump, we had the promise now that hillary clinton's foot would not be obama's foot on the regulatory break. one thing president trump was able to do at the beginning of the administration is bring a strong stop to the regulatory outpourings that were underway under president obama. those regulatory outpourings had a distinct chilling effect on economic growth. we saw in the second quarter that the economy accelerated up to 3%. you don't want to make too much out of a single quarter but that's a promising figure. it's a strong and balanced representation of the economy. there is some hope that that will continue for a while. it will not go on indefinitely, however. ellen blinder, the former fed vice chair recently wrote an article in which he observed that economies and their expansions don't and it just because they get tired. they don't come to a conclusion just because you have run out of string. they end bec

guest: we are talking about the conditions of money, interest rates, spending in the u.s. economy. the federal reserve manages it and guides it, so when we talk about monetary policy, we end up with the federal reserve. host: how can they manipulate or change it? control overave short-term interest rates. long-term interest rates are controlled by the markets. what they can do is ultimately limit or change price stability. if they want to keep prices stable, they have to guard their own behavior. they do not want to go reckless and flood the markets with too much money, but at the same time, they do not want to be excessively in the other direction. they have to guard their own behavior. host: when you say they have control over short-term and long-term interest rates, give an exemplary of how they have or could manipulate the economy. guest: what they do is they controlled the creation of the dollar. at the end of the day, they have the day, they have to printing press, so they do not create physical dollars but they can airate money out of thin and that gives them to control. when

where we've seen weakening of the u.s. economyhe first quarter of the year and a slight rebound in the second quarter but the u.s. economy is operating at full employment as we mentioned and obviously still growing at the pace of oughly 2% at the moment. jonathan: we have a problem with vincent, the story of the federal reserve, the idea they'll have to wait until the end of the year because they don't have an idea what's going on with the inflation data and it was softer and softer when they were expecting it to get better. >> in ohio they zreased the question of the low and she has to take her number down. we have a bit of that sound to lay for you. >> i expect over the next year the unemployment rate will stay below the estimate rate which i estimate at 4.3/4 of a percent. i lowered my estimate from 5% and though it's not significant, it's time to acknowledge even as labor markets continue to tighten, inflation has remained moderate. >> vincent, one of our fed presidents was saying we have to readjust what we're expecting in te

they ever have since the two thousand and eight financial crash that should mean good things for the economy let's take a look americans on average are spending one hundred nine dollars a day according to gallup polling that's the highest spending average of nine years and the sixth straight month where daily spending is more than one hundred dollars meanwhile small business owners optimism is at a ten year high they're generally more optimistic about the future than present conditions these phrases coincide with americans confidence in the economy which jumped four points in july on gallup's economic confidence index. while an improvement from the past couple of months it's still near the low for twenty seventeen still july marks the ninth straight month americans rated the economy more positively the negatively the longest streak above zero since gallup started tracking it in two thousand and eight. view the current economic conditions more positive with thirty three percent describing it as excellent or good and only twenty two percent saying it's poor but looking ahead more americans see

vote backing the strongest economy sanctions. they coincided with a call to stop missile tests as a precursor to the talks. according to the official korean central news agency, the sanctions were "a heinous u.s. plot to isolate north korea" and said the country would not be forced to negotiate over its nuclear weapons. the secretary of state, rex tillerson, traveling, was in thailand talking and addressing these sanctions, talking about the potential talks with north korea, the recent sanctions that were imposed by the security council. here's rex tillerson from monday. >> the best signal that north korea could give us that they're prepared to talk would be to stop these missile launches. you know, we've not had an extended period of time where they have not taken some type of provocative action by launching ballistic missiles, so i think that would be the first and strongest signal they could send to us would be to stop the missile launches. obviously we have other means of communication open to them, to certainly hear from them

sharanjit about the help of the chinese economy. e economy. sharanjit leyljoins us. the numbers are looking good for china, following hot on the heels of the us revision upwards as well? absolutely. you said it. most markets in the region are going up asa markets in the region are going up as a result, because of all this good news. china, as you said, posted stronger than expect the factory sector growth in august. the purchasing managers index, that is the official one, it is a gauge of the official one, it is a gauge of the help of the manufacturing sector, and it came in at 51.7, crucially above the 50 point mark that separates growth from contraction. analysts had expected it to actually be fairly little change from july. so china's resilience is giving something of an extra boost to the global recovery, especially, like you said, at a time in the us economy also seems to be bouncing back. you just said us growth would be revised up to register growth, the fastest pace in more than two years. china has had to manage its economy

now we are seeing an acceleration of the economy. point i would make about everybody looking at right now in the washington times" i think trump has to get the tax cut passed to keep the momentum going. you see a record high stock market. anticipate a tors tax cut. if not you will see a selloff. calls are on the bottom of the screen and we will in a few ng calls minutes. they will be here most of the 8:00 hour. on taxes.ntinue heidi shierholz, if you could tax bill and ect send it to congress what would -- main planks be? guest: we are seeing record but investment is extremely low. is last thing we need to do cut corporate taxes. if we do, that will give perfect profit but they are sitting on the profits they have. make sure we can get money into the hands of people who will spend it. in the hands of regular people most people live you eck to paycheck, when give them more money you will -- they are likely to spend it and the economy needs. hen people spends that means demands for goods and services hard.p and workers get host: stephen

only by doing those things can we boost the economy. nounce that is what going to happen. independent of negotiations with the eu, the government, once we leave, we can implement them and the economy will boom. many people say a transitional deal might just carry us transitional deal might just carry us through and take away uncertainty. that would mean we faces state where everything changes. that simply produces more uncertainty. it lengthens the process. if the government make an announcement that autumn of what the post brexit economy for the next five years will look like and what the comic policy will be, businessmen have over 18 months to prepare for brexit. —— business has over 18 months. the only transitional period we need is to deal with administrative issues which naturally take time to play out. we should not exert any transitional deals are renting at inventing things boosting the economy like trade deals, for example. what will it take the chancellor to do in the autumn statement for you, at the end of it, to say you can k

americans are spending more than adverse since the financial crash nearly a decade ago does it mean the economy is back on track plus banking blunders wells fargo plan to win and we keep. hearing about scandals how it cheated customers out of cash this time. starts right now. stock markets around the world took a hit wednesday reacting to rising tensions between the u.s. and north korea global markets are used to inflammatory remarks from pyongyang but usually the u.s. days while more diplomatic president donald trump's valid tuesday to unleash fire and fury on north korea if it continues its threats that was enough to make markets dip all over from the u.s. to europe japan china india most markets reacted negatively to the news tokyo's nikkei index dropped to its lowest point since june first while south korea's plunged to seven week lows on set of heating trump's warning to stop threats just hours after his comments north korea announced it was considering a missile strike on guam a u.s. territory that's home to a military base the u.s. and north korea have not yet made good on any threats an

. >> the us economy is doing pretty well. o people in wall street now, ahead of the big things and so on, they are very happy with the way the ministration is going. and more positive than i have ever seen them in the last 10 years. respect, i think it is still going ok. but the rest of the world is sort of catching up and benefiting from the. hat. yvonne: your views on china have always been quite bullish. possibly some more opportunities in the mainland for you. how do you view china at the moment even this branch off in deleveraging efforts in beijing? >> they are doing all the right things. i have just come from beijing and sentiment there is pretty good compared to print his visits there. -- two previous visits there. to previous visits there. i'm positive on china and the economy in china. where we find it more difficult is to find the companies to invest in in china. that has always been the difficulty. yvonne: the latest crackdown from china we saw, reportedly asking anbang to sell some of their overseas assets. it is

i would say inheritance tax is could be the economy. ood for the economy. but inheritance tax has built—in benefits for businesses. economy. but inheritance tax has built—in benefits for businessesm doesn't raise that much money. half per cent of doesn't raise that much money. half percent of gdp. doesn't raise that much money. half per cent of gdp. now you get a tax for only those people without knowledge to pay for accountants to hide it for them. if people see 4096 of what they leave will effectively be taken by the revenue, it does not encourage them to live their lives and spend. that is good for the economy. i think inheritance tax is marginal to business. it does remove potential investment capital from the economy. relatively small businesses is what we are talking about. a few hundred pounds is something you could invest in a business. it could be reinvested. something you could invest in a business. it could be reinvestedlj business. it could be reinvested.” don't think it takes away from business. you could put it in the busin

the economy is still on solid footing. you wonder, we have heard hawkish rhetoric from the bank of korea governor. can they continue this type of language if this north korea issue is not going away? it could start riling up markets and consumer sentiment, delay investment plans from businesses. that is the key question. we are looking to that press conference from the governor. a big day today with the u.s. gdp report and china pmi and india gdp coming up this morning as well. betty: in terms of trade today we started cautiously but ended the day higher and risk on, giving economic numbers. gdp end job numbers. at friday jobs are poor a lee kiefer markets. setting up for a bid today in asia. yvonne: 3% gdp. i am sure president trump patted his back a bit about reaching that number. but is it really sustainable? that is the key question. new zealand pretty flat when it fors to the nzx 50, .7205 the kiwi. harvey making landfall in louisiana, the crude seeing downside in the price. well.for the aussie, as something to think o

[laughter] as china's economy begins to slow growth while the southeast asia economy grows themselvesand maintains this restriction on the market access, political restrictions and considerations while these new and emerging economies find their own voice in my opinion it will lean more toward taiwan who show themselves to be a beacon of growth in asia for both the democracy. >> i would like to add one point on the cell phone policy that due to the geographical proximity and cultural closeness and so on taiwan should have done this a long time ago and i wish the policy well and i hope that it will be implemented not in an instrumental way. for example, if you ask most taiwanese students what foreign language they would like to learn the first choice would not be the invoice or indonesian. right? in fact -- if you look at the demographics that there are many new immigrants in taiwan and one in four children in taiwan have a mother who is not taiwanese and so society is changing. the point i'm making is that it should have been done a long time ago and it's a very natural thing to know

his comments reflect a lot of what we see, we focus on the economy, the economy, the economy. they rolled out the agenda a few weeks ago trying to make the conversation about that, but it is difficult. you have something that happened have -- like what happened in charlottesville this the weekend, you can't ignore that. a few weeks ago it was the transgender ban in the military. democrats feel compelled that they have to respond to this but it takes them away from what they want to be talking about politically. greta: steve bannon said keep talking about that. we win every time democrats do that. have they brought democrats into the trap? alex: we will see if democrats can turn out voters, if it is an issued that gets new voters to turn out. if there are voters that look at what the president said about charlottesville and say i'm going to go register to vote. i have never voted in a midterm and that what mr. bannon said is wrong. if they don't, it can be difficult for them. it is interesting. alex pointed out that j.b.'s focus on the economy, it is difficult for democrats to m

tax code and reinvigorate the economy. s comments came as he kicked off his efforts to sell the american public on his tax plan with a rally in missouri. >> i am committed to working with congress to get this job done. i don't want to be disappointed by congress, do you understand? understand. juliette: the ceo of bank of america has said donald trump's tax reforms could help the u.s. achieve growth of 3%. speaking exclusively to bloomberg, he cautioned that it would still be a struggle to hit that target. >> when you think about that time in the 1990's and 2000s when you have economic growth, you had a publishing growing. now it is hard to estimate. that difference is a lot of people and demand for houses, for food, for cars. economy. good, solid without publishing growth, you are going to see this thing fight to get between 2% to 3%. downtte: harvey has closed 23 -- 22% of u.s. oil refineries. the lowest since 2010. gasoline futures rose to the highest in two years and the fuels premium to crude is at a 17 month high. war

a slightly gloomy outlook on the economy generally. would be that this year as a whole and said it would hit 3% in october later this year. if you consider wages are going up 2%, we are getting poor every day as prices outstrip our wages. consumerspending every day as prices outstrip our wages. consumer spending power is constrained and dwindling and that has a knock—on effect on the economy. the squeeze on real incomes is going to get a little bit tighter and the big question is when are they going to raise interest rates? this is the 120th month in a row that they have not raised interest rates. they say they have this balancing act. inflation is higher thanit balancing act. inflation is higher than it was but putting the rate of borrowing means they will put people are pressed. sometime this is —— sometime in the second part of next year, wages will go up faster than prices and you would expect there to be the likely moment where they will put interest rates up. at the moment, borrowers can relax and save rs moment, borrowers can re

we saw that economy and the eurozone economy at large stalling when it came to the last july pmi numbers. there was a sense of plateauing, but the german pmi numbers, the manufacturing print, that saw quite a bit of a jump that led to this slight rise in the euro/dollar. what do you make of the pmi numbers? we thought there would be slowing, leveling off. are you surprised there is a pickup sooner rather than later? >> i'm not surprised you're right to highlight the point that some softer economic data recently has made people question whether the economy i losing traction, whether the currency is having an effect i think it's premature, but the fact that the pmi bounced, the numbers are elevated, it's a reiteration of where we are. as long as demand globally is solid which it is shgt the euro should be doing well the currency is a headwind, but it's the demand side that matters. for the moment, the news there looks good it's a comfort for the market that things are not tailing off. the ecb has communicated clearly since the middle of the year, as long as the economy is growing above tre

maybe some of the profits that go into their will help grow the economy. they do need to work a little harder. that's what they're doing. you are a fellow a texan. i'm glad you're on the show. but i could not disagree more. i think they would have to improve to be awful. i looked up the worst congresses in history. these guys absolutely blow it away. for seven years they ran on repealing obama care. these guys cannot get it done. they are awful. ♪ what should i watch? show me sports. it's so fluffy! look at that fluffy unicorn! he's so fluffy i'm gonna die! your voice is awesome. the x1 voice remote. xfinity. the future of awesome. the fcc tackling a legal robo calls. he wants to slap one company with that 82 million-dollar fine without the house insurance company allegedly made over 21 million of those annoying cause. i don't need a security system. i get mad at the government because it is the amount of agencies that company selling services. have a thing like the fcc does. this is absurd. this is going on this long. we love picking on you. they have an u

maybe some of the profits that go into their will help grow the economy. they do need to work a little harder. that's what they're doing. you are a fellow a texan. i'm glad you're on the show. but i could not disagree more. i think they would have to improve to be awful. i looked up the worst congresses in history. these guys absolutely blow it away. for seven years they ran on repealing obama care. these guys cannot get it done. they are awful. if they were better they would be awful. one woman's loyal support led to a shocking split. mike and i are both veterans, both served in the navy. i do outrank my husband, not just being in the military, but at home. she thinks she's the boss. she only had me by one grade. we bought our first home together in 2010. his family had used another insurance product but i was like well i've had usaa for a while, why don't we call and check the rates? it was an instant savings and i should've changed a long time ago. there's no point in looking elsewhere really. we're the tenneys and we're usaa members for life. usaa. get

the economy growing far faster than thought. this is bloomberg markets: asia. ♪ rishaad: uncertainty of geopolitics affecting sentiment out there. having a look at the volatility index, going to show you what is going on, because we've got levels being elevated. ofe risk since the end october. this is where we are at the index.with the vkospi we have missile tests that elevated risks, but not quite like this. normally south korea is sanguine when it comes to the threat from the north, but nerves are creeping in, haidi. haidi: that's right, and just as well that the japanese markets have closed. to latest public holiday appreciate the beauty of the terrain in japan. that does not mean the yen is not trading. we are seeing further demand as a result of the safe haven that picked up pace overnight. we are 15 minutes out from the opening of china and hong kong. dave will take a look at the markets. dave: we went from 112 to 109, i guess keeping with your mountain day theme. we are off-peak. far, inrkets opened so the past hour. three

can the president take credit for the state of the u.s. economy? and the russian investigation counselrward as special robert mueller hopes a list another grand jury to collect information. whateak with one analyst the latest news means for investors. we hear from him in just a minute. >> president trump pats himself -- we back after the asked economists what kind of credit the president deserves. anything on done economic policy site on a high you can take credit for the economy's performance. the economy was performing well before the election. even if they -- were enacted not a lot has changed. >> the markets are benefiting from enormous liquidity. it comes from the corporate buybacks. share it comes from households. income inequality means a big proportion of incremental income goes to people who invest in the market. as long as the markets are comfortable, they will fade every single pullback based in politics. >> are not sure how they apply in each particular state. regulations and the regulations have been the main boost. >> here now to discu

at the u.s. economybill: not much. lowave seen inflation stay and maybe take a little bit lower, which i think is significant. we have seen strong earnings growth in terms of corporations. that has propelled the stock market and we see continuing participation by central banks and not by the fed, but by central banks up to a trillion dollars annually by the ecb and the boj. my way of thinking is that yes, the u.s. economy is important, is the euro land economy more important in terms of what the ecb plans to do in terms of the timing and in terms of quantitative easing procedures. it's really the money and the checks that are being written and have been written for the past five to six years that are important in terms of financial markets. once that stops to move in at the same pace, then i think we will begin to see t some chang. until then, onward and upward. janice henderson recently curve ball with absolutely superb. concept thatp a stanley fischer lead without the economic club of new york well ove

down.y orders what is happening with the economy? i'm concerned that the investment on that front. earlier that week, we saw a slowdown in demand in business lending. it could be due to uncertainty that is are not sure what to expect from washington dc and they need more certainty on that front. vonnie: thank you. lineup, billl-star gross, and economic advisor gary cohn. is am a. -- emma. of dishes raised of retaliation by beijing. officials are gearing up for a probe on whether china file its laws. the warning that ties with the u.s. are getting worse. the economic war with russia could last for decades. he accused of -- president trump -- jeffg to congress sessions can keep his job for now. john kelly has told sessions that president trump does not intend to fire him according to a person familiar with the matter. he publicly attacked sessions last month for being weak. rouhani starts his second term as president this week. the optimism of his victory in may has been eclipsed. made -- on iran and landmark agreement. global news --g

i would say that yes, it is good for the economy. iously pays for various things, including various necessities. but inheritance tax also has an inbuilt protection for businesses. good points. i don't think eventually raises much money. that quarter to 0.5% of gdp, it is a few billion pounds. at the moment it isa few billion pounds. at the moment it is a chance tax. it is only those people who do not have the knowledge or the large enough state to pay for the accountants, lawyers and wealth manages to hide it for them. i don't think it works. if people see that 40% of what they leave is effectively going to be taken by the revenue, it does actually encourage them to go out, live their lives, enjoy themselves, go and spend, and clearly that is good for the economy. i think inheritance taxes are really marginal to business owners. inheritance tax does actually remove potential investment capital from the economy. we are talking about relatively small businesses here. if you are going to receive a few hundred thousand pounds, that is som

we didn't know what a negative impact it would have on the economy at that point in time. but we covered the others on spending, tax reform and energy policy. >> you talk about regulatory reform in the book. can you give an example of what he would like to see as a former corporate ceo? >> you can to get the state, local or federal level. i was in california at the time, so we could spend the entire segment talking about one tenth of the problem in california with regulations. on the federal side, it was a constant influx of new regulations such as that in the department of labor. it's putting in place new requirements making it easier to unionize. they had the blacklisting legislation or regulation, the regulations that were going to require attorneys to disclose the discussions they were having with their employer clients during the course of attempts to unionize and that was called blacklisting, then the standard where they tried to make the franchise liable for the employees of the franchisees which would have completely destroyed the franchise business with devito that

we have the japanese economy in focus. cannot with retail sales and fixed asset investment there is well. there is more mobile of the economists thinking. japan as well, the economy revving up to 4% annual growth, marking the largest gains in 11 years. let's got -- let's get more on this. james, what was behind all of this? james: that is right. the initial data that cannot is very strong. spending from households was up more than expected and so is business spending. government stimulus had an effect. those things combined meant much stronger than expected. is this a sign that this is working? we were talking to a guest earlier from goldman sachs. she is getting the sense there is more optimism. this is probably a decisive confirmation of final or long-lasting transition away from reliance on external demand and a transition that is more sustainable to domestic demand. a lot of people forget that domestic demand, consumption, makes over two thirds of japanese gdp. supercritical that this are just part of the economy start

we get the latest snapshot of the u.k. economy. can samsung's new smartphone restore its reputation and extinguish the memory of the note 7 debacle? this is "bloomberg surveillance ." let's check in on the markets. asset classes have been a little depressed when it comes to politics and the turmoil in d.c. about trumps administration ability to enact the fiscal agenda on the back burner. stoxx 600 gaining 0.2%. a lot of the focus today and tomorrow will turn to the start of the central banks meeting in jackson hole. you can see the dollar strengthening. the one thing that i'm watching out for is possible parity in 0.915.und, currently at nymex crude at 48.26. u.s. crude stockpiles extended declines yesterday. that is your asset classes. let's get to the bloomberg first word news. nejra: the death toll from typhoon hato has risen to 12. it is the most powerful storm to hit the region in half a century. macau says it people were killed in the gambling hub. another 153 were listed as injured. the city of charlottesville has covered two

this is seven years of lack investment in the economy. europe. we have the perfect storm of brexit, the government's economic policies all coming together to slow down. it's not just the last six or 12 coming together to slow down. it's notjust the last six or 12 months since the referendum vote, it's what's happened over the past seven yea rs, what's happened over the past seven years, frankly. you pointed out at the beginning that people's credit cards are maxed out, you are suggesting people spend their way out of this? i am not saying that. we have to invest in our economy, the government have used borrowing to pay our day—to—day running costs, the equivalent of a family borrowing to pay its food bill. that has to stop and has to be turned around. you have to have investment, not just to pay the —— not to pay the electricity bill but investment in capital and country. that is the way forward. our productivity levels is rock bottom, 30% less than germany and france and italy. that is down to the government's lot of investment in the ar

maybe some of the profits that go into their will help grow the economy. hey do need to work a little harder. that's what they're doing. you are a fellow a texan. i'm glad you're on the show. but i could not disagree more. i think they would have to improve to be awful. i looked up the worst congresses in history. these guys absolutely blow it away. for seven years they ran on repealing obama care. these guys cannot get it done. they are awful. potsch: you each drive a ford pickup, right? (in unison) russ, leland, gary: yes. gary: i have a ford f-150. michael: i've always been a ford guy. potsch: then i have a real treat for you today. michael: awesome. potsch: i'm going to show you a next generation pickup. michael: let's do this. potsch: this new truck now has a cornerstep built right into the bumper. gary: super cool. potsch: the bed is made of high-strength steel, which is less susceptible to punctures than aluminum. jim: aluminum is great for a lot of things, but maybe not the bed of a truck. potsch: and best of all, this new truck is actually- gary: (

the year. jonathan: you inherited an economy where the headline numbers for the economy look solid. e thought we would over the next few years and it is starting to create in. -- the next few years and it is starting to creep in. do you think there is some spare capacity, some slack in the labor market? gary: i think there is. i think we can bring more americans back to work by creating jobs, creating incentives that make it easier for smaller and medium-sized businesses to go. making credit available, getting rid of regulation -- we do think there is much more of a potential to bring people back into the labor force. jonathan: you pointed out some structural issues, do you think the issues are quite cyclical predominantly? gary: we argue that all the time. what we are committed on right now is to create the best possible jobs environment we can create and we really do know that when people think about investmentapital and capital is what you need to grow the economy, people look at regulation and taxes, two of the main driving factors. those are two factors that we are spending enor

we should not overstate the degree of openness of the u.s. economy. the u.s. conomy is a massive economy. it is not that open when you look at the eurozone or japan. the passing through from the currency to the inflation is more modest. what really matters for inflation is, if we try and pin down that relationship in the phillips curve, and try to figure out how much of that output gap is actually pushing inflation higher, but i don't think -- the dollar is down 10% this year, but it was up 30% between 2014 and the end of 2016. we still have a lot of offsetting forces, which i think are going to wash out and not leave any visible mark on inflation. francine: thank you both. in the meantime, let's get straight to the bloomberg business flash. nejra: car for shares have plunged in paris after it warned the second half of the year will be as tough as the first. france's biggest retailer said full-year operating profit will decline a similar amount as the first half. that gives the ceo an even bigger challenge to turn around the company. ubs is leaning towards fran

we were the capitalist economy. we couldn't really explore in our own country the real nature of manufacturing. after that ended, i started to realize -- look. i would go to a place like revere copper in rome, new york, and i would sit there with them. look, we use a lot of electricity in making copper rolls. we can't afford that electricity unless we gate break. so every year we go to new york state power authority and ask if we can buy the electricity at cost. as a discount. that's the subsidy. that's my idea of a subsidy. there's also -- the word "subsidy" is not a good word. i'd rather use public spending. in that $2 trillion of manufacturing value added, a huge share of it is weaponry. the defense department ordering weapons, and very often production for -- under buy america clauses, if you get arrested -- if you get stopped by a policeman and he gives you a ticket you might get out and take a look at his car, probably made by a manufacturer in america. scarsdale are owl fords where i live. don't note about new

what's it's been suggested that people actually take these pay cuts in order it is sort of helps the economy the result being that an influx of workers to fill these positions will then you know they'll spend their money is a wishful thinking or is there more merit behind it because if you're just filling filling seats with no one no ability to really support yourself on the other end i mean what is the good of this sort of a you know age situation so so fed chair janet yellen is all about the labor force participation rate she wants to see i told workers come off the sidelines but if you look at the most recent unemployment if you look at the look at the most recent labor report you'll see that forty four percent of the jobs forty four percent that's two and a half times the historic norm where in sectors that i call the eating drinking and getting sick sectors this is these are bartenders these are waitresses these are home health care professionals they're not high paying jobs and often times when you're not making enough you have to turn to the government for supplemental assistance and

the u.s. economy is doing exceptionally well. l reserve is talking about continuing the normalization -- albeit at a slow pace. earnings are very strong. it is a robust picture. there are challenges in investing in the u.s. right now. it is valuations, not donald trump. if you are struggling to find value in the u.s. market, it is because of elevated valuations, rather than a president causing a lot of uncertainty. matt: why has the u.s. stock market continued to march along unfettered? we have a great chart that takes a real historical look at the s&p 500 here. it is 2851 in the btv library. the blue is the s&p 500. those white pyramid are days without 5%s drawdown. up can see they are getting back to pretty high elevations historically. we can feel it also in the market, mouhammed. there has not been any real correction. every week, we hit new highs. why is that? obviously, we are in a low volatility regime. our research shows that low-volatility regime's persist. you can expect volatility to remain low. the reason for that is b

it looks like growth is spreading to the broader economy. can it last? this is what the fed has to ask itself. vince reinhardt says he thinks it will help the fed feel more confident about normalizing later this year. first half growth that 2.1%. the fed looks at potential gdp at 1.8%. ? will this boost inflation the august core pce, the fed's main gauge. it is expected to fall 0.1% to that five months in a row it has pulled away from inflation. looking at average our earnings of 2.6%. 4.2%,mployment falls to maybe that will embolden the fed. the moves and markets today, dollar coming off the have suggesting investors got more confident after seeing that gdp report. now we have to wait for the inflation number and the big payrolls on friday. rishaad: nice one, kathleen. let's look at the floods in texas. why? they have halted shipments of liquid todd -- liquefied gas. ben sharples has a look at the fallout. >> harvey has gone global. it is rippling through. rishaad: could we be faced with lpg shortages? asian buyers have to look for alternative supply. yo

pension accounts this is the third or fourth generation people meanwhile the wages are stagnant the economy is being undercut the chinese germans and russians are taking over and americans are sitting there with their foam up their is venturing watching politicians in washington who are in the pocket of these regulators and the result is catastrophic of course we all went to the voting booth in two thousand and eight and we're like obama says hope and change and he's going to change is an approach these people and tell him we keep on going to the voting booth and say yes we're going to elect politicians that will do something about and of course they did something about that they introduced the dot frank because we're never going to let this happen to you again but these are elected regulators at the f.c.c. say oh we're going to get a donor who have just exempt it so anybody who might be out there ordinary americans who want to create a bank to compete with these horrible banks they're all they'll have to abide by those rules they can't cheat so of course they can't compete with you because

the governor of the bank of england mark carney outlined how he saw the uk economy. economy, even a limited pick—up in growth is likely to have consequences for the stance of monetary policy. that is because, as the mpc has previously emphasised, the mpc has previously emphasised, the process of leaving the european union is beginning to affect potential supply in the uk. brexit related uncertainties are causing some companies to delay decisions about building capacity and entering new markets, and the uk ‘s eventual new markets, and the uk ‘s eventual new trading arrangements will require a period of fully allocation in some sectors of the economies expand and others contract. moreover, prolonged low investment will restrain growth in the capital stock and increases in productivity. indeed, if the mpc ‘s current forecast comes to pass the level of investment in twenty20 is expected to be 20 percentage points below the level which the mpc had projected just before the referendum. as a result, the supply capacity of the economy is likely to expand in only modest rate

cut ratesay, the rbi and called for measures to spur india slowing economy. published leaked transcripts of a phone call between president trump and malcolm turnbull. it confirms a tense discussion. trump called a proposed refugee swap deal stupid and described the call with turnbull the worst of his day, however praise austria's offshore refugee detention system saying, you are worse than i am. a fish market destroyed by fire that broke out in the outer market after shops a close for the evening. tsukiji is a popular market for seafood. no one was injured in the fire. some of china's midsized technology companies say the governments campaigned against leverage could push them out of business because they are finding it increasingly hard to secure loans and an environment of plunging credit conditions. malcolm scott is watching this. what is going on here? it does seem to be a situation where banks will lend, but not to these companies. the would rather have government and stay safe. tough foralways been the small and medium-sized end of town, and it is gettin

the golden egg. that is really important to our well-functioning economy. host: about five or 10 minutes left, thomas is in cincinnati, ohio. line for democrats. go-ahead. thomas: yes, the president didn't give us any confidence in his abilities to lead. he said that he would shut down the government to build a wall. how does that make investors feel? i --zandi: >> he is referring to the president comments last night at the rally in phoenix. mark zandi: you know, i don't think investors are listening too hard because they don't take it seriously at this point. to say you are going to shut the government down to induce congress and taxpayers to pay for the wall between mexico and the united states doesn't seem like a winning strategy. so i do not know that investors are really paying attention to that at this certainly, if the point. president sticks to his guns and actually does engage in that brinkmanship, investors will take notice pretty quickly, especially as we get to the end of september, in particular as he shut the government down. i think he will lo

over the last 24 hours or so. japan's economy has grown for the six order, expanding for more than 10 years. 4.0% in the second quarter, beating all forecast by economists. domestic demand compensated for softer exports. let's see james, great to speak to you. job growth in private domestically in japan. now the story, the weakness in the currency boosting exports. >> we saw a big pickup in private consumption. there is also a nice boost from government stimulus into the domestic economy. all those things combined made up for a week pitch. weakness of imports as well. the economy is doing quite well. sort of leaving aside the trading position. generally it looks like gross -- growth. throughnot bringing higher wage gains for japanese workers. the introduction 11 years. are people in japan taking this as a sign that it is working? this is a culinary release for gdp and corrections show the first release gets revised by an average of 1.3 percentage points. in six weeks times -- in six weeks time this is not going to be 4%. the seco

again it is connected to the economy. n many countries, and france is a very good example, where although macron won the election and defeated the national front, a significant proportion of the population voted for a nationalist party, because they feel the economic opportunities are eluding them. is it not people looking for scapegoat5? people feeling dissatisfied and unhappy about their lot, and looking for people to blame? they are looking for people to blame, and they are looking for comfort. i think there i5 looking for comfort. i think there is some comfort in putting up the drawbridge, building a wall around your country and saying it is easy for us to fix our own problems, rather than other countries. and identity politics. and there is a belief that the only way to get rid of the problem is to deal with it on a nationalist basis, and deal with it in nationalist term5. a nationalist basis, and deal with it in nationalist terms. and in european countries there has always been a lot of nationalism, but more than mut

--might get close to parity the eurozone economies on the up and u.k. just meandering along. in terms of the dynamic of the challenges, let's be fair, the problem is the europeans have a slightly easier job in terms of the way they do things where is the u.k., they have to go back to square one in terms of their whole trading relationship or their international relationship. jon: we talk about a strong european economy and a week u.k. one -- weak u.k. one. do you take that consensus view? jim: i think that consensus view is right. the uncertainty around brexit will keep the u.k. economy somewhat depressed. you can hardly go a week without some executive talking about moving a bunch of jobs to ireland or germany or brussels. that will take its toll on their economy. once they get through this article 50 period and once we get to the other side, there will be some certainty. the u.k. economy can then move forward from there. until that cannot we are all stuck in this wait and see mode. what will the rules of the road trade? it will continue to lag. david:

the economies are doing well on global trade. as been very much in g7 and north asia has the hallmarks of good value, good earnings, and central banks which will remain accommodative. china and money market rates, that spike last week, what did you make of that? was that a policy missteps, what you watching for? >> these types of jobs are mainly to do with banks finding a sudden shortfall. is running open market operations, so it has changed how it moves short-term rates, and you will get these blips now and then. >> great to get your view there. one feature we like to bring to your attention is our interactive function where you can watch his life and watch previous interviews or dive into securities or functions we talk about. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪ ♪ >> some breaking news out of uber. to pick itsting next ceo. reports from re-code saying the person that has been chosen has been coming from, not from meg imelt.n and jeffrey m ou this is a surprise from left field. we

stephen: so what are the biggest risks to the global economy? ut that question to the twittersphere. 46% said geoeconomic tension. 30% said rising debt burdens. and 15% foresaw weak productivity growth. the deputy secretary-general of the oecd, the deputy managing director of the imf, the economics professor at george mason university, and the head of chinese equities at blackrock. >> i think the respondents hit a really, really good topic, which is the geopolitical or geoeconomic tension. i absolutely agree that things like productivity and debt burdens are a threat, but these are not things that were built up overnight. they were built up over a number of years, and to some extent we may even see -- let's say artificial intelligence, technology offset some of these concerns over the medium-term. i do believe that is the biggest issue to consider, the geoeconomic issues. that really brings us back to the unpredictable nature of some of these driving forces. for example, what's happening in north korea, what's happening in the middle east. a lot