u.s. economy headed i think that after the. horrible first quarter i think we're looking at something closer to three percent this quarter q two as well as in q three i think the fiscal drag has become less so i think american consumption has been pretty steady and been being done up until now with very little use their credit cards so i think that this is a healthy sign but i think it means that the u.s. economy i don't think we should be expecting several quarters of above three percent growth which the federal reserve is if it coming years i think we should be looking for something with relatively low labor force growth and ultimately low productivity i think we should be looking for growth to be about two and a half percent on average for the next for the next year or so i don't think there's much impact for fed policy in terms of inflation expectations i think that the federal reserve so the u.k. is saying look inflation may be falling but we're getting close to our capacity in the economy that is more of a european and a

u.s. economy actually headed and have we officially laid the financial crisis these markets are back on the program to answer those questions and in today's big deal edward harrison is back and it is studio and today and word and i are talking about financial crisis this past and present time not to get to. like many milestones marriage home children however those traditional milestones don't seem to be happening for the millennial generation and the reason is lack of money today yet many many young adults are unable to launch their lives and leave the safety of their homes following college graduation now according to an annual study that polled one thousand young people going through the transition from college to post-graduate the majority of young adults are struggling to achieve financial security in their transition from college to adulthood and the reason for this seems to be directly related to financial well being about half of the services respondents continue to need financial support and it isn't just a problem of on employ. the survey also found that half of those still getting

u.s. economy i don't think we should be expecting several quarters of above three percent growth which the federal reserve is it for the coming years i think we should be looking for something with relatively low labor force growth and well to the low productivity i think we should be looking for girls to be about two and a half percent on average for the next the next year or so i don't think there's much impact for fed policy in terms of inflation expectations i think that the federal reserve so the u.k. is saying look inflation may be falling but we're getting close to our capacity in the economy that is more of a european and the u.k. attitude i think the usa attitude is sort of like for the people from missouri the show me state why should the federal reserve be raising interest rates when inflation is still well below their target and unemployment is still too high and so i think the federal reserve is willing to let this little experiment go on provided that there's no major financial instability and provide that is inflation expectations you mean what they say is incurred and so i

u.s. economy bullish on gold and other metals aaron first asked them if the economy is looking good or if it's looking weak here's what he had to say. it's looking weak you know the reason that consumers are spending more is because prices are going up it costs more to eat it costs more to heat your house or drive your car insurance costs more health care costs more mean everything is more expensive than it used to be so that's why spending is up and unfortunately savings are down because americans are still have savings are having to dip into their savings to afford the higher cost of living and get is up credit card debt is up because a lot of americans are having to borrow to pay the higher prices that are falling incomes really can't support. the weaker industrial production numbers they don't point to lots of business investment coming on line so where do you think the u.s. can get growth. we're not going to get growth not as long as the fed is stimulating the economy what the fed is doing is inhibiting legitimate economic growth we're both blowing up all these bubbles and in order t

u.s. economy and now the fed is going to have to come to the rescue of course everything the fed is doing to rescue the economy is going to make it worse but that's not going to stop them from doing so what segments of the market are showing the most value in your opinion oh it for investments i mean clearly the gold sector the gold stocks i think are priced for a collapse in the price of gold and not only do i not expect gold prices to collapse i expect them to skyrocket and so obviously these gold mining stocks are dramatically mis priced based on the expectations that investors have that are wrong they think the u.s. economy is recovering it's not they think the fed is going to tighten it won't and of course in the fed minutes that came out yesterday the fed said they weren't worried at all about inflation despite the fact that the p.p.i. and c.p.i. numbers that came out. last week show year over year c.p.i. at two percent and p.p.i. of two point one percent meanwhile they stay still think we're well below two percent we're already at two percent right now and you know when the fed is n

u.s. economy the u.s. department of commerce released its final estimate for gross domestic product in the united states for the first quarter of this year and while analysts. had expected down revisions this latest revision was a shock it was the largest down revision in the history of g.d.p. reporting instead of contract at and your lies one point zero percent pace the economy contract at a two point nine percent pace that is a severe slowdown notable facts in april the government estimated spending on health care grew at a prodigious nine point nine percent rate due to the implementation of the affordable care act actually health care spending contracted at a one point four percent pace in total final sales which exclude inventories declined at a one point three percent annualized pace in q one two thousand and fourteen and inventories subtracted one point seven percent from g.d.p. in q one two thousand and fourteen this is rearview mirror stuff though analysts are boosting their estimates for growth in

u.s. economy is by no means firing on all cylinders the situation. it is improving for many business executives this makes the obama administration saying things against russia problematic to top u.s. business lobbies the u.s. chamber of commerce and the national association of manufacturers plan to run newspaper advertisements tomorrow in the new york times wall street journal and washington post warning that more sanctions risk harming u.s. workers and businesses companies from the united states represent the largest source of foreign investment in russia and these companies fear sanctions will hurt their bottom line however as the eight to nine billion dollar fund against french bank b.n.p. perry for violating sanctions against iran and sudan shows us foreign policy objectives will claim business interest victims in the west now that we're taking we're talking about the business interests of the u.s. firms and not just some foreign bank we will have to see if foreign policy aims to america to the will of american the best.

u.s. economy. the u.s. central bank says it expects growth this year to come in at 2.2% compared to a forecast -- previous forecast of 2.9%. the fed seems fairly upbeat on the state of the u.s. economy. economic activity has rebounded in recent months." they're looking to reduce their bond buying program by another $10 billion. that program has been in play for years now to boost the u.s. economy. the federal reserve seems to think it is time to lessen its bond buying program. let's see how the markets have been responding to the news on that forecast from the federal reserve. we saw earlier the markets turn from negative into positive territory. that development is continuing this hour. about 14 minutes left to go on trading on wall street. the dow jones industrial average is up by 1/4 of 1%. seeing a similar figure for the nasdaq. the s&p 500 is up by even more than that, almost 1/2 of 1%. let's talk you through the european close earlier. the european markets closed in the vicinity of a flat line. the lo

u.s. economy in this latest a book. it was compiled by the new york federal reserve information 23rd.h may all 12 districts report economic activity expanded. seven report moderate growth. only kansas city reported growth slowing during the. consumer spending helping to drive that growth. especially car sales around the country. growth with aof mixed performance among non-auto retailers. risk growth in vehicle sales and moderate growth in tourism. sales did lag behind somewhat. words and picking up on the eastern seaboard. service sector activity grew -- most districts. there was good news on the manufacturing front. manufacturing activity expanded in all 12 districts since the previous report with a pick up in the pace of what was reported in several districts. you had activity expanding robustly in the boston am a new york, atlanta and kansas city districts. chicago, st. louis and philadelphia -- lending activity increased with two thirds of districts reporting rising loan demands. make signals in housing. -- mixed si

u.s. economy?ave revised downward the 2014 numbers but we do not think it will be a downward spiral. we believe that 2015 will be up three percent. however, we have revised our gross trend on an ongoing basis from where it was on average in the last 50 years or so, three percent to 2% and we have done that on the basis of the aging population and the basis of lower productivity based on the latest trends. yes, we have revised downward but it does not mean we are downbeat for 2014. >> olivia blanchard walked by and i think of his work in global economics. are looking at potential gdp for all the nations. is the u.s. of the locomotive of the global economy? >> yes, it is, because it's one of those very large advanced the largest economy today. we believe some of the emerging markets are going to slow down as china has begun doing going forward. the advanced economies are still driving the show because of the high base they start from and the growth percentage they displayed. >> the phrase subdued inf

u.s. economy added 217,000 jobs during the month of may.hat is seen as a pretty solid figure, even though it is a fall from the number of jobs added during the month of april, and it seemed to highlight that the u.s. market is on its way back. for four straight months now, we than 200,000 jobs being added every month. the official unemployment rate, meanwhile, held steady in may, coming in at 6.3%, the same as in april. that is significantly lower than the current euro zone rate, , so theands at 11.7% u.s. is ahead there when it comes to the recovery in the labor market. is stepping up the pressure on american officials to reduce the potential fine for bnp paribas. the penalty for skirting u.s. sanctions could be as high as $10 billion. the foreign minister says that amount could hurt negotiations for a transatlantic trade he'll. >> bnp paribas has elicited the support of a powerful ally -- the french government. france lost largest bank faces fines for violating sanctions between 2002 and 2009 -- france's largest bank. the government has r

u.s. economy than u.s. steel.an issue for the s&p at all. >> the biggest ipo since facebook, talking about alibaba, but could that spell trouble for yahoo!? dan, what do you say? >> they own 24% and likely have to sell 40 to 50% on the ipo. it traded two and a half average daily volume. and a good chunk were in the calls, taking profits, sold 90,000 of these today, and that activity caught my eye in a week where yahoo!'s newsy. we had the news she slept through a meeting with ad customers, and also alibaba chose the nyse to list the ipo when it's new. when we get back from the holiday, the chatter leads to the road show for the ipo. speculation the ipo comes in early august. talk about yahoo! for a second. 2013 rumored all yearlong about alibaba ipo. it was wratch etted up and what it met. look at the chart here, okay. the stock up almost a 100% last year, 45 degree angle, bottom left, upper right. it's 2014. it's gone sideways here, okay? the stock is down 15% on the year. here's the year to date chart. what's in

u.s. economy.

u.s. economy, it was actually a bit of both. the federal reserve upgraded the u.s. economy in the statement today saying it was rebounding from the severe winter weather swoon. at the same time because of the economy's contraction, in the first quarter, much stronger than expected, the fed had to downgrade its forecast for the full year, by 7/10ths of a percentage point to 2.2%. still janet yellen said she saw gathering strength in the economy. >> i think there are many good reasons why we should see a period of sustained growth in excess of the economy's potential swrech potential. we have a highly accommodative policy, the fiscal drag, we have using credit conditions. we have households who are becoming more comfortable with their debt levels. we have raising home prices and rising equity prices and an improving global economy. at least in high estimation, too. i think all of those things ought to be working to produce above train growth and for a number of years which admittedly growth has come in at a disappointing level, we've still seen the labor market broadly

u.s. economy. >> we haven't had a plus 3% growth for the u.s. y for almost ten years. >> the job numbers will be slow and low. >> out on thursday. >> and they're not going to be great again. >> and they're not the kind of jobs people thinking are meaningful for the long-term. food prices are going up, inflag prices are going up, interest rates are going up. and my sense is nothing will make this economy move. >> he's james bullard said inflation is going to be above -- in 2015. what does this mean? we are getting 200,000 plus jobs. few have been created since the last numbers. >> we've had that 200,000 job growth number for the last few months. the implications on of that, maria, as you know, with very little growth in the economy but with growth in jobs is very, very weak productivity growth. that's what we've had for the u.s. for quite a long time now. the economy is not generating the kind of productivity that will benefit us in the long run. we are still in a long-term stagnation. >> yep. we'll take a short break. we want to get to the one th

u.s. economy shrank sharply during the winter. >> simonetti, thank you. >>> 25 minutes after the top of the hour. he brought down his political career sexting things like that. yuck. wait until you hear the real reason anthony weiner is keeping his mouth shut. >> we will tell you how he spoiled his own greatest scape. but first on this day in history, something we are all thankful for, 1498 that was the year the tooth brush was invented. >> you have the latest cyclone? we have more on coney island. ♪ yeah, girl ♪ you know, i've been thinking about us ♪ ♪ and, uh, i just can't fight it anymore ♪ ♪ it's bundle time ♪ bundle ♪ mm, feel those savings, baby and that's how a home and auto bundle is made. better he learns it here than on the streets. the miracle of bundling -- now, that's progressive.

u.s. economy. do you foresee that now? >> we very much hope that it doesn't happen again.epidation about the budget, the trepidation about the debt ceiling, it could arise yet again in 2015. but, you know, if we learn anything from what has happened in 2013 and early 2014, that it should not be repeated. it's unnecessary uncertainty right at the time when the economy's picking up, when the recovery's firming up and when people are getting back to work. there is still so much to be done. liz: what's her track record? well, it depends. here in the u.s. she was spot on with her team last year. they anticipated -- nobody was really calling, david and cheryl, for a slowdown in the late second half. she did. the team one year ago here stood before us and said we will see a slowdown because of is sequestration. sure enough, we saw it. it's up for debate as to whether it was because of sequestration, but the team was correct on this, so this is a report to which some people feel everyone should pay attention to. i found it very interesting, but you can see the entire interview on

u.s. economy the u.s. department of commerce released its final estimate for gross domestic product in the united states for the first quarter of this year and while analysts had expected revisions this latest revision was a shock it was the largest down revision in the history of g.d.p. reporting instead of contract at an annual lies one point zero percent the economy contracted at a two point nine percent pace that is a severe slowdown notable facts in april the government estimated spending on health care grew at a prodigious nine point nine percent rate due to the implementation of the affordable care act actually health care spending contracted at a one point four percent pace in total final sales which exclude inventories declawed at a one point three percent annualized pace in q one two thousand and fourteen and inventories subtracted one point seven percent from g.d.p. in q one two thousand four.

u.s. economy so that gives a big boost i think part of it is the view that at the u.s. going to be energy efficient it's going to be able to supply itself and the prices will be low i'm not convinced that that's true i think energy prices are going to surprise us they're going to go up in the coming few years even in the u.s. but the belief that the u.s. has a privileged energy position definitely supports investment from outside coming in and i think also the oil price is still pretty high so if you can eliminate the transportation cost from other parts of the world to the u.s. which is still the biggest consumer market even if it's not as dynamic as it was prior to the bust happening then that really saves you a lot on your margin so the other thing that's interesting is seeing chinese companies beginning to build production facilities in the united states companies like foxconn have announced they're going to build production facilities in pennsylvania and frankly they're moving to automation i think the financial times is covered quite extensively the shift to robot

u.s. economy? >> it doesn't hurt the economy.t that the economy would be helped a lot more if we were building houses. to build a house generates over 2 1/2 times more jobs than to build a single unit in an apartment building. so that, you don't use as many resources to put up the apartments as you do on the houses. so there's a limit to how many more construction jobs and materials, production jobs you're going to get when you build all the apartments instead of houses. normally, would you see more people going into new houses rather than apartments. so, the problem is that we're not getting nearly as much as we potentially could out of construction employment. david: maury, is this a trend that we're going to be seeing more of? is this a temporary blip? >> oh, i think, if you look five years down the road, some of the people who are moving into apartments are going to be in a better position to move into houses. but if you look out over the next couple of years, just how much improvement we could have and in those construction

u.s. economy and the markets. i am i mean i'm i'm worried about the imbalances in the way that this recovery has occurred and i don't think that anyone really knows what it means because what's going on and what's been so unusual about this recovery is that you've seen huge gains at the top so the top you know one percent have seen enormous gains in their net war if the you know even their or their wages are increasing substantially whereas at the median level the median household income in the median net worth has been much more moderate and nowhere near where it's back to or you know back to the pre-crisis levels and so yeah i think that that's disconcerting i think that we're seeing and again that a lot of this goes back to what the fed is doing the fed has directly boosted asset prices and i think it's it's making people feel better and it's particularly helping those people who obviously own financial assets and but at the same time you know we're seeing the middle class is very very weak you know so i. that

u.s. economy shrank in the first quarter of 2013.dp fell 2.9%, the biggest contraction since the death of the last recession. me --s. economist joins laura, welcome to "bottom line." good to see you. >> thank you, mark. that afternoon. >> the markets seemed to shrug off this news today. why were investors not worried? >> one reason investors might not want to be too worried is that so far we are really getting off to a very solid start in q2. it looks like it is going to be a very solid quarter for growth. we are looking for at least 3.5% at an annual rate, which would be quite a good performance. we also know that q1 was disrupted by weather, which played a large role. it was not the only factor, but it did play a large role in depressing activity. >> mohamed el-erian wrote the following today -- while the economy has resumed many of its normal functions, the recovery is only tentative. it is in fact still healing, an economy that can walk and do so more briskly than his european counterpart, but the u.s. economy cannot run fast and

u.s. economy and the international economy with the most common reasons for corrections. geopolitics and ,undamental price to earnings 2002 was when the fundamentals were ahead of the market. as of right now there is never a shortage of people calling for corrections, but it is very difficult. >> we look back at the continuing run that we had and we look at what field it. you can pick economic data better, look at continued fed involvement. are there things to tell you that were the most important element? sooil prices rallying strongly because of the violence in iraq and the russian situation. energy producers were the biggest gainers in that quarter, about 11%. otherwise it was a pretty broad rally. consumers, technology, all about four percent or more. >> all right, mike. we've got to leave it there. "street smart" is next. ♪ >> it is the final day of the first half. it was a good six months for investors. bonds are up. how long can these asset classes rise together? i am trish regan. "street smart" starts now. welcome to the most important hour of the session. ruling

an economy somewhat smaller than the u.s. korea also does three to four times more than we do. we probably have the smallest footprint of any export credit agency to the size of our economy in the world. >> thank you. i see my time has just expired. >> indeed, it has. the chair now recognizes the gentleman from alabama, the chairman emeritus of the committee, mr. bachus. >> chairman hochberg, you and i met in my office on march 27th when we were considering reauthorization of 2012. at that meeting, we expressed some concerns to you about transparency, accountability, and also the mandate requiring the bank to review the economic effects of its financing to take into account any -- i'm reading the statutory language -- take into account any serious adverse effect of any loan or guarantee on the competitive position of the united states industry. then we had some follow-up conversations as late as may 9th about delta's concerns. we voted that bill out on may 15th, and i've really never had an explanation of -- that the sale of wide-body jets to the emirates did not hurt u.s. airli

u.s. economy. that has not happened for a number of years. the administration says it is supposed to grow by and the economy actually shrank and it is because of the policies of this administration. and now because of the cost of the health care law and the cost of these regulations affecting energy, it is a one-two punch for an economy that is already on the ropes. >> we're within six months of the election. what are the chances that the republicans win the senate? >> too much to tell. there are many more forces in play that he might have thought six months ago. the opportunities are therefore a very good here year, but you're talking six-month out. we would have to pick up a net of extended the -- of six senate seats. we have real opportunities, and there are a number of states where the candidates that we have been able to recruit have gone through the primaries and are doing very well. >> if the republicans do win back the senate would republican leaders pass an immigration bill? >> with so muc

u.s. economy or any other economy around the world. energy is a key component to any nation's economy.he administration acknowledges that and realizes that. they will continue to utilize the resources that the united states as to benefit the u.s. economy. >> we began this with you telling me about the steps you're taking to improve the financial performance of your company. you were encouraged to do some of that by well-known investor carl icahn. what it was like dealing with him and the relationship you have with them now. he invests in other companies and makes life difficult for other ceos. think it is important to talk about the things where we are in violent agreement. we agreed that it is important to improve the operating performance of transocean and whilenancial results creating value for our owners and shareholders. the actions we take our perfectly in line with that. execute theto transocean strategy in pursuit of that. we have enjoyed a good support from mr. icon. -- carl icahn. >> are you a better company because of the steps carl icahn urged you to take? >> i welcome carl

u.s. economy for the rest of this year, to a rate of just 2%. that's down from 2.8%. in a real surprise, it suggested that the u.s. start paying its lowest earning workers higher wages. steve liesman has the story. >> reporter: the international monetary fund taking on a step today, in its annual review of the u.s. economy, a supporter of raising the minimum wage saying it would have an impact of reducing poverty. >> you have 15 million people living below poverty level, many of whom are actually working people, not many of whom are just not doing anything. that's why we're recommending it. as to give you a number, is it 10.10? this is something that needs to be decided by the legislators clearly. >> the imf office steers clear of economic issues, especially the u.s., which is the fund's biggest shareholder. the u.s. has the third lowest minimum wage among industrialized countries. hiking it could help the millions of americans out of poverty, even though it could reduce total jobs. >> certainly there's an employment tradeoff, the congressional budget office recently e