u.s. is such a closed economy and the u.s.able to whether that thing -- weather that thing better than china or the eu? is makingdonald trump a short-term bet that in 2018 and potentially in time for reelection in 20, that the economic benefits that are being seen right now aren't going to be curtailed to the point of causing in political trouble. thosek whether or not policies are good economically in the longer term post-november 2020 isn't really necessarily at the forefront of trump's thinking right now. it there.ll leave kathleen, thank you very much indeed. bloomberg's u.s. political editor. simon french is going to stay with us. next, we will bring you the movers this morning. gaining after the ipo of the stock. roaring up another 3%. this is bloomberg. tradingminutes into the session this wednesday morning in europe. interesting movers this morning. let's find out the details with nejra cehic. adyen processes: payments for uber, netflix, spotify and 67% rise in net revenue for the six months june 30. the results give c

u.s. economy. i know your mandate is the u.s. economy, but how much of a risk do you think that is? n, we had been going very slowly with a rate increase. i think these foreign economies have had ample opportunity and what.understanding of was going on in the u.s. you do have some countries that have special situations of one kind or another involved in foreign currency. not enough reserves. so, i would take those as special cases. countries that are having trouble, but i will keep an eye on it. michael: on the list of things that officials have been concerned about is the decline in home sales. and also median prices have been falling. is a fed killing the housing market by raising rates? james: housing is one of the most ultrasensitive factors, so you would think it would have some impact there. if you talk to real estate people and they say it is because of limited inventories and prices, you are median prices went down, but some of the year-over-year figures are still positive. and they have risen quite a bit and have been rising. they have been rising at a fairly good clip. mich

u.s. economy. are leading the world in terms of growth, the dollar is very strong and the confidence is with the u.s. and what our policies are. those are the policies achieving this growth. you could argue whether that's true or not. the u.s. is doing very well. we don't need to be the first ones give up anything here in this trade skirmish. >> the flip side of that is what happens to the offshore -- we are hearing from a bank, we need to be talking about eight. does the picture change there. >> it changes in the sense that ultimately the goal when it comes to china and other nations is to reduce the deficit. the stronger dollar will make it -- use the term of trade in u.s.'s favor. consumers may want to demand more goods coming from china. if we don't get the tariff, the currency is working against what they are hoping to achieve sort of long-term. >> what does it mean for the fed. if these tariffs get implemented on the full 200 million that 200 million that will light a small fire on the calcul

u.s. economy the u.s. is still the biggest and most important economy in the world to assume a certain extent we all have to dance to the u.s. is chewed the trade issue is much bigger than the sanctions issue we worry over here in europe a lot about trade wars of course we're in some thirty percent of our g.d.p. from exports the u.s. it's some fifteen good news is the u.s. and e.u. seem to have seen signed some kind of truce since the younker trump meeting some two weeks ago now we have to focus on the u.s. china issue latest news there is there's no real progress so we could see some more escalation of the trade war between the u.s. and china that will be tough for markets to deal with. bearing that bank in london well saudi arabia does not take kindly to being lectured on human rights by other nations canada recently plunged into a diplomatic spat with riyadh over the release of saudi activists from detention in germany stands to lose out on new critics business contracts in the kingdom following criticis

u.s. economy. that is correct, except the rest of the world affects the u.s. so that gives him a good reason to carry -- care about turkey, argentina. >> no reason to care about the rest of the world until september? >> fully and then suddenly is the way to describe it. thank you. coming up next, has $.10 earnings failure change the outlook for chinese text? this is bloomberg. headlines some more about president trump and has interview with reuters. he says there are no concessions with turkey, so this goes back to the idea that the u.s. had written to put tariffs on turkey because of this american pastor that is being held by the government. much --not seeing a much of a reaction on the dollar lira because the government has made changes for the way it is funded. tencent disappointing second-quarter as policy on chinese tech titans. shery ahn today why he is optimistic. lot of big players nce anda like alibaba, te then you have thesent regulatory aspectsooking at key such as tencent gaming business, but these effects are regarding small parts. , they arebig p

u.s. economy vulnerable?talian bond investors run for cover ahead of what is potentially another month of political -- political turmoil. we start with the big issue. paying in emerging markets. >> emerging markets has been hit quite hard. >> globally quiddity is actually on the retreat. that will definitely lead traces in emerging markets. >> some of them are in good shape, some of them are not. tarred by theeing same brush. investors who are careful about looking for the nuggets are going to find some really good opportunities. >> you do see some selective value there. what has hurt the emerging markets has been the strong dollar and the fed tightening and higher u.s. interest rates that has caused capital move out of emerging markets into the u.s. but the point is that a lot of thethe dollar strength, most of, who knows when the dollar will take? a lot of that has happened. >> we will see points in time where investors start splitting their interest between the good, bad, and ugly. with regard to emerging

u.s. economy. fairly dull terminology, but that is quite pronounced, saying quite a bit about the fed's signaling going forward based on their view of the economy as it stands today. his comments are understandable. we went through the great recession, followed by the great meandering. has accelerated markedly. we grew at 4.2% in the second quarter, the first half of the year, over 3%. there was expectation in some quarters that the economy was responding to somewhat of a fiscal sugar buzz and it would slow down going forward but apparently not so. the atlanta fed is telling us they are projecting the third quarter to come in at 4.6 percent. if we keep accelerating like this, this will become the great acceleration, a remarkable event when you think about how far we are since the recession. this many years into an expansion, you don't expect an acceleration but it is not a surprise. we talked about the reasons for the great meandering for many years. we talked about these events in prior years, how

u.s. economy is really strong at this point are we just on tuesday got new figures on consumer confidence sitting the highest mark in about eighteen years there was the strong u.s. economy it was stronger consumers was an unemployment rate at almost a fifty year old people by more consumer more so it's also the strengths of the united states so why people. buy more and import more so there is in that sense a positive reason why the deficit increased by so much financial correspondent yens kota thanks very much. adding to his criticism of the press u.s. president donald trump on tuesday said his eyes on and you enemy the internet and social media in a series of tweets the president complained that google search results for trump news would only show the reporting of fake news media wondering if that might be illegal child went on to quote he had a very serious situation that will be addressed later trump singled out google facebook and twitter during a presentation at the white house very important yeah i think google is really taking advantage of a lot of people and i think it's a very se

u.s. economy obviously is driven by a large number of factors. ective comes from watching china and the u.s.-china tensions as well as watching the general international trade world, if you will, with all of the very disruptive policy position scomms approaches that trump has taken. there's a lot of uncertainty, i think, which will end up potentially having an impact on the u.s. economy. ramy: yeah, slowing growth and business investment as well as government pumps there. one interesting thing that was reported earlier today is that donald trump is using a combination of sanctions as well as tariffs and it seems to be working but only in certain case, for example with turkey on one side but china not so much. explain the china aspect and the restill yens si. >> i think it's important to us understand that, from the chinese perspective, there's going to be no way that they're going to just, if you will, kowtow or give in to the united states on this trade matter because the economies are intertwined but not so desperately dependent on each other th

a far smaller economy they do depend more on the u.s. and then the other way around is that will actually lead to an agreement as we've seen it was mexico on monday remains to be seen. talking trade unions the u.s. trade balance numbers are out and i don't think they like he's made the president specially happy all they. know donald trump won't be happy when he sees the figures or on the other side he might find another argument for his tough a trade negotiations so the trade balance actually increased the deficit increased by a good six percent and reached the highest level since february but to a certain degree there is a good reason why america why the u.s. is importing much more than they're exporting because the u.s. economy is really strong at this point are we just on tuesday got new figures on consumer confidence sitting the highest mark in about eighteen years there was the strong u.s. economy it was stronger consumers was an unemployment rate at almost a fifty year old people by more consume more so it's also the strengths of t

u.s. economy, as you know very interesting -- as you know. e he interesting comments about passing cost on to consumers. there has been a close watch on inflation in the u.s., it has been creeping up to the extent that wage gain turned a little negative. those are all factors, economists keep them in mind, and so do president trump's advisers, i am sure,. once again, it suggests that if there is a time to work on a solution and pullback from the abyss, now might be the time, but we just know. -- we just do not know. yvonne: thank you. meantime, let's get caught up with first word news. >> former -- a former cricket star has been sworn in as prime minister of pakistan. he has called on workers to invest at home. enron has named a finance minister. he has said pakistan may need to find $12 billion to plug the hole in its budget. the malaysian prime minister has told china that investment in his country can help reduce the trade deficit. he admitted malaysia had previously borrowed chinese money and not repaid, and used it on unnecessary infrastr

u.s. economy. stay with us we'll be right back.

u.s. economy and can impact on the u.s. economy in the form of inflation.y can't impact global developments, we've had plenty of instances in the past when it has even altered the course of fed policy i think in terms of the discussions over the next few days, i don't think we'll be making it on the fringes, but there won't be a lot on the agenda that relates to emerging markets. this joackson hole gathering, there are not many central bankers on the agenda for the next several days. it's more about leave the controversial statements to some academics producing the papers related to technology, banking structure. if there's anything it may be on the balance sheet. that's where we could hear emerging markets come into discussion the third area on the agenda is banking policy in terms of the u.s. impact on policy, that impacts what the fed does the next few years where we may see relevance for short-term market views. >> a lot of musing around inflation, what the united states is looking at you have record lows on unemployment, but not much of a wage growth s

u.s. economy is pushing forward nicely. we will see maybe 4% for the third quarter. the medicine is still being taken by a very sickly patient. as you are indicating, when his

u.s. economy is that inflation is low for this late in a recovery.nk it's convincingly picking up if is not already high and destructive, we're in good shape. >> are we talking enough about the change in the depreciation schedule if i said to our viewers you can go out and buy a car this year, there will be zero sales tax on that car theoretically that might insecet them to buy that car there could be a wave of business investing that we have not expected >> i think the tax cut is more important. >> that's a nice way of saying you're wrong >> well, okay. there's a permanent way to make the u.s. economy more competitive for domestic production, that's to cut the corporate tax rate on the depreciation, if you pull some things forward we had that on and off over years. not to say it doesn't help at the margin, but business investment is strengthening because we have a decent demand outlook and this improvement in competitiveness. >> often when we had it, we had it after financial crisis and companies were struggling to stay in business now we have a str

u.s. economy.ank repeated that the labor market has continued to strengthen, but added that economic activity has been rising at a strong rate. that was a bit more bullish view than the solid growth described in its june statement suggesting the fed remains on course for a rate hike in september. >>> the bank of england is widely tipped to raise rates for only the second time since the financial crisis members are expected to vote in favor of hiking the bank rate to 0.7 0.75%, however uncertainty surrounding brexit and global trade could be a problem for governor mark carney jes staley discussed the rising interest rates this morning on cnbc >> rising interest rates are constructive for banks we also need to balance what we do for our consumers in terms of bassi in passing those rates on we think rising interest rates, to the extent they reflect a growing economy are positive for the uk and u.s we have a high net interest margin as a bank it's been coming down slightly mostly because we've been cha

u.s. economy. it was not there under president obama. businesses did feel they were , feeling it was not a fair economy for them to be working in. they are much more optimistic under president trump. you are right, we need to wait it out. surveys arenk these measuring the intentions of investors. something should show up. there should be some sign. what has shown up? corporate stock buybacks. see is a sign of they don't profitable investment opportunities, real investment opportunities, so they are taking this huge windfall and giving it to shareholders. i see the opposite. it will take a wild to -- a while to see the full effects, but you should see something. a huge tax cut like that, all this survey data, you should see a significant increase in employers and corporations wanting to invest more. hear: we do here that -- that in the news all the time. , the look at the bonuses administration saying look at these 400 companies paying bonuses -- that's not how the tax-cut is supposed to work. the corporate tax cut makes certain existing i

u.s. economy boosted by fiscal stimulus of supply-side reform. you have a china economy which is experiencing what is a normal slowdown in its underlying natural trend growth rate as it becomes more advanced. it is also from a potential bank policy point of view having to manage this credit excess. tweets,ee mr. trump's trade tariffs are working, if you look at the headline numbers, you might think that was true. he may actually just hit on this ail, the trade war nail,. little bit harder. anna: thank you. more on the u.s. economy in just a few moments time. down. jamie dimon doubles the jpmorgan ceo makes a new warning about u.s. views. are exclusive interview with the hsbc cfo right here. ♪ anna: good morning, everybody. bright and early this monday morning. a beautiful sunrise over westminster. we see weakness in the pound. the trade minister over the weekend talking about his estimate of the likeliness of brexit. it is more likely than not. here is debra mao in hong kong. hsbc has beaten analyst expectations for second quarter profit, posting

u.s. economy continues to power ahead. equities continue to power ahead. ed by tensions. the u.s. is approaching the end of it cycle. the u.s. economy has been growing strongly for a while. unemployment is low and likely to go lower over the next few months. we expect unemployment to fall to 3.5% or below by next year. that is anyone's guess. targetflation already at and likely to go above target, we think the federal reserve will keep going. that does mean at some point, the u.s. will be do for a parent of performance. -- paritive performance. many tech companies are on companies in that they are not moved around by the ups and downs of the u.s. or global economy and slightly different forces. matt: rupert, will we see a recession before we see a peak in stocks? we hear from mark had more that you do not get the peak in equity indexes until 18 months after a recession kicks in. rupert: it is difficult to know. in some ways it depends on what you mean by recession. recessions take many different flavors. there is a gut wrenching recession we saw in 2007 to

u.s. economy had been too short-term oriented, that was a problem, today u.s.nies should be in terrible shape and, you know, as you just heard, we're hitting all-time records on the stock market. u.s. corporate profits to gdp are at historic highs. and so it is very hard to understand this short-term story because u.s. companies frankly have just been crushing it. cheryl: they have been but they don't always do that and i've got to bring up tesla to counteract what you're saying because this is a company that missed several production goals. the ceo is frankly, let's be honest there has been some erratic behavior we've seen by him on twitter. we've got the funding, no, never mind. these kind of events as investors this is the leadership may or may not be the best place to put our money, our dollars, that are hardened from us. can't you agree with that point? >> no, i'm not agreeing with it. on the tesla case what is also really interesting, the valuation of tesla is phenomenal. he is, tesla since it went public has been a terrific investment for shareholders. t

u.s. economy.nto conception, but it ultimately is a very important power to the u.s. economy right now. experts, do they factor that in now in the short-term or do they look beyond that as mr. colander just said to the chronic nature of trillion dollar deficits? catherine: right now, they are focused on short-term gains coming from both the tax cuts and spending. that is what we are seeing. i think we are seeing that reflected in a market dynamics. we're seeing it affected in the activity.t we are seeing it in low and employment rights but also high profits. rates, but also high profits. are the markets taking about 2020 and beyond, and the implications for what might be interest rates and so on. i think they're probably not discounting that correctly. if they are not -- stan: one of the bigger problems here is that these trillion dollar deficits are going to make it very difficult for the u.s. to look at new policy initiatives. we have a retirement crisis coming. we have infrastructure issues. tho

u.s. economy despite those hikes? trick: there have been hikes that happen and a lot more coming over the next year and a half. the economy is performing very economicong real growth, low unemployment, fiscal stimulus coming through. the only real worry is at trade wars may disrupt that. i think it is the fed themselves in trade, the only two possibilities that you will see an end to this expansion right now. showsi have a chart that the market fairly convinced about september, convinced about the end of this year, but much more uncertain about next. on the risks back from the fed, talking about trade and a host of factors that could cause downside. patrick: that has been consistent for the last two years, basically. everyone expecting the next height and then doubts about the next one down the line. noah knows what is happening in the long-term. the fed themselves don't know. the fed has invited -- advised that will get to what is normal but we don't know if this is going to continue. this is just a continuation of th

u.s. economy. is going to become a chip to be negotiated away by the united states. rishaad: thank you so much, minister joseph wu. he is the taiwan minister of foreign affairs. newstalking about other going on in the background, this political crisis in canberra appears to be heading toward some sort of endgame at the moment, with a leadership vote expected. here is rosalind chin with that and the rest of the first word news. rosalind: yes trillion liberal party is in a closed door meeting -- the australian liberal party is in a closed door meeting over who should be prime minister. malcolm turnbull was australia's sixth prime minister since 2007, but the job will now go to right-winger peter dutton. -- peter dutton, scott morrison, or julie bishop. president trump says there is no -- he told fox he cannot see how he could be toppled for doing a great job, adding that ordinary americans would be hit in the pocket if he is forced out of the white house. it is the longest bull market on record, bols

u.s. economy, the great u.s. omy always tends to outperform in the long-term. >> so bob, i'm going to put you on the spot. who deserves the most credit for the longest bull market ever is it president obama? president trump? ben bernanke janet yellen >> no, look, i'm not going to get trapped into that game there's no way but first of all, the resilient u.s. economy and the way our economy is structured still is the envy of the world. partly there's lower amounts of regulation, we see the stock market tend to constrict a little bit when there's more regulation, do better with less regulation, i won't get into that too much. but the nature of the economy is the primary issue. yes, a tax cut could matter in the short-term, but in the long-term, with the way the u.s. mindset and u.s. businesses are set up -- go to italy and talk to the italians about opening a cappuccino shop versus here in new york city. you'll get an earful i have, i have talked to isleal ans who can't open a cappuccino shop in italy. why are the re

u.s. economy is doing. war, butning the trade when you have somebody like the , i think that way kind of message does not get heough to washington, so said the u.s. would bear the brunt of the tariffs. extent, things that he shares get filtered into earnings calls and things like that and ultimately, must hide -- find a home at the white house remains to be seen. certainly, u.s. markets responded positively. how this weekee goes. certainly, a very key week in this. ruth carson has more on this. halt.e come to a like ay for sounding broken record, but this is all about the trade war. u.s. base fun is morning -- asian currencies exposure that she overlooks in this is quite a dramatic change from a couple weeks ago. obviously, there has been reports of low-level talks resuming between beijing and washington. they're waiting to hear what is going to come out of it. else is right now? they are turning increasingly bearish on emerging markets. it is not just because of turkey. hoffenheim refunds is one of .hem the

u.s. economy gets hit by its own trade tariffs in terms of inflation, business sentiment and as the fed continueso hike for this side of this year, i still am quite positive in the u.s. equities. >> what is your biggest concern then we talked endlessly on this program and others on cnbc about how corporate earnings are great. profits are up buybacks are strong. tax rates are cut. we get that. you're paid to worry what's the biggest worry out there? >> i wish i could be a bit more exciting, but i think the strayed wtrade war is concerning. many people think trump will pull back from the protectionist agenda he has the midterm elections coming up. this is a great way of exciting his base there is a protectionist streak in him he has been talking about it for several decades. this is not just the last two years. i don't see he will push back from where he is now i feel like this will continue to be ramped up until the end of the year >> seemseema, we look at that ae keep showing that, china had its biggest one-day gain in over two years, a nearly 3% gain. does that one-day move make you more confide

u.s. economy the global sector even in the u.s. continues to do well. e are pockets of weakness in em and even there you have to be selective. there are economies that may continue to do well, depending on their current account deficits, exposure to oil, et cetera similarly in the u.s., global sectors that continue to do well what we see playing out is the u.s. economy remains robust. versus the global economy there's a little divergence there. >> a six-year high we had this discussion about whether you see a 2019 pause in the fed. reuters has a piece about a more aggressive fed as they try to ramp in expectations where are you? >> well, markets will take about 6 to 12 months to sort that out. very interesting the markets are in a way they were from 2004 to 2006 the last tightening cycle. for about 18 months markets decided the fed will go into the low four so let's keep the u.s. ten-year in the low fours. and then it changed it to a 5.25 rate then peaked at 5.3 so it's a same decision point coming in the next year by next summer the market will have to

u.s. economy vulnerable?ors run for cover ahead of what is potentially another month of political -- political turmoil. we start with the big issue.

u.s. economy. giving us a sneak peak of what we can expect from the galaxy note nine. >> good morning, tracey. >> just days to go until the galaxy note nine is officially unveiled in new york city. samsung posted the video for the smartphone on its youtube channel practically confirming it will be the first phone to support one terabyte flash memory so it will have 512 gigabytes of built-in memory as well as support for a 500 gigabyte micro xt card. that is something the iphone doesn't support them by comparison offers 256 gigabytes giving a run for its money. was there a winner for this weekend? >> for a second weekend in a row at the box office, mission impossible moving on to first place. >> how many times has the government betrayed him? casting aside. how long before man like that. >> disney is christopher following chart of expert patients with an estimated $25 million. despite attempts make coming in third with an estimated $12.35 million in rounding out the top-five mamma mia mia here we go

u.s. economy and mobilizing u.s. society. finding roles for women and minorities, and rethinking war production. marshall then is chief of staff of the army and is fdr's right-hand man during the war had ample experience with harnessing the u.s.'s economic and human capital to fashion an army capable of winning world war ii. marshall's diplomatic credentials encompassed his most recent mission to china, a special mission, ultimately a failure. that marshall had been present at all of those great conferences. he brought with him unparalleled reputation for absolute honesty and integrity, and the habit throughout his career speaking truth onto power. but fdr addressed him as george and one of his first meeting, he said, mr. president, please address me as general. that is how fdr a trust him. marshall consciously never engaged with the president in a social setting. leave the had to be passionate throughout the relationship. now as secretary of state he faces the similar's challenge he faced in 1939, but now how to win the peac

u.s. economy the u.s. is still the biggest and most important economy in the world to assume a certain extent we all have to downs to the us is chewed the trade issue is much bigger than the science issue we worry over here in europe a lot about trade wars of course we're in some fifty percent of our g.d.p. from exports the u.s. it's some fifteen good news is the u.s. and e.u. seem to have seen signed some kind of truce since the young trump meeting some two weeks ago now we have to focus on the u.s. china issue latest news varies there's no real progress so we could see some more escalation of the trade war between the u.s. and china that will be tough for markets to deal with talking of markets and what they have to deal with because president donald trump in an interview said that if he was to be impeached or that will be a big problem for markets let's just listen to what he said exactly. i'll tell you what if i ever got a ph i think the market would prayer. i think everybody would be very poor. because

u.s. economy at the consumer level. so it's an important input it also plays into the consumer confidence which is high now if the consumer becomes concerned, starts saving more, we'll have the u.s. equity markets start slipping quickly >> how did you read powell's comments at jackson hole last week some people saw them dovish, in the sense that he's willing to slow down if the economy warrants it. >> i think i agree they were relatively dovish. that was given to the equity markets this week, a boost that the fed is tightening but at a gradual and controlled pace. he's setting the stage for how much is this fiscal and tariff impulse into inflation going to affect will it push core higher, pce higher or have a marginal affect i think that will also play with a key tail risk of 2019 which is what happens if trump flips the script his first year has been dominated by trade tensions, pushing them, tweeting about them, putting the fear of god into many exporters. but what happens if he changes his tune yesterday or two days a

u.s. economy is doing very well.ed up, the labor markets are doing very well and employment is growing, unemployment is diminishing, wages are going up, inflation which is its targets, what else do you need? imbalancesthere are in the pipeline. of course there is the issue of large debt, of course there is a issue of large budget deficit. however, if there is any attempt to continue in the process of normalization, namely raising interest rates and creating ammunition that will be needed if there is a future turnaround, this is the time. kathleen: jacob, is this possible, a lot of people have made this comment that the fed, if the not trump keeps complaining publicly about rate hikes, may have to move rate up faster, or have more rate hikes just to move to investors that they will not be called but a present of it -- they will not be cowed by a president of any kind? jacob: we're not going to see a debate. that is not the issue. it is a people issue. if there is silence, even a whisper come be heard. if there is nois

u.s. economy is doing well. above 4%.wth if this trade escalates, the u.s. ively impacted. over the next all months, it seems unlikely. the economy is solid, the u.s. is winning and this is one of the factors that is weighing on emerging markets. from turkey, you have specific negative domestic factors that contribute to outflows from emerging aspects and capital is being shifted to u.s. stocks. francine: thank you for joining us. coming up, j bryson at wells fargo at 6:30 in new york. this is bloomberg. ♪ guy: guy johnson in london and francine lacqua in london. tom keene having a new york. -- a day off. named ben smith as chief executive. he will take the reins of -- by the end of the month. the biggest carrier casting aside union objections to a foreign ceo. global business europe joins us well. perceive thiswe as a strange choice? >> in some ways, yes. it is an experiment. this is a departure from the way corporate france normally takes. if you look at it from a french point of view, there is a group of executives that is moved around, especially when it

u.s. economy i mean. the u.s. is a huge trading country. both as an importer an exporter is it imports more than exports but a lot of businesses in the united states depend on selling their or their goods and services and not being in the w.t. you know it means that there will be a slap with tariffs. means everything they try to sell be more expensive. it means an end to a lot of protections for things like copyright theft and other things so i think that would be a. huge pushback first of all from the companies that are exporting in the u.s. to that kind of a move and. as i said i think india logically most of congress is in favor of free trade so they are going to support just. pulling out of a yes an organization that really started in one thousand nine hundred four and has been working pretty well by all accounts in terms of not just the global economy but the u.s. economy david trump has said in the past that the u.s. has been unfairly treated in the organization and the administration is voiced similar sentiments about the u.n. kind o

u.s. economy under his leadership, but it appears to -- as it appears to go from strength to strength. t one crucialumr seems stuck, potentially holding back the u.s. consumer. paul blake reports. pres. trump: we have the greatest economy we have ever had. we're setting records in every respect. en the u.s. economy is booming, the pres is right about that. our average americans feeling benefits? pres. trump: wages for the first time in 18 years are rising. paul: wages have been stagnant for tickets, but let's look at the last five years. some ups and downs, but it is generally heading north. since last year, wages are up 2.7%. pres. trump: we have c so many jobsing in, but they are raising wages. paul: here's the problem --alhat is what nominal wage growth, meaning we have not adjusted for inflation or the gorising prices of everydas. pres. trump: did you see the prices? paul: over the past year average prices for consumers have gone up 2.8%. paychecks mayon look like they are going up, when you factor in costs, wages are essenti'y flat. let'look at that wage growth graphic again. let's

u.s. economy is the greatest ever. >> the economy is maybe better than it's ever been. >> that may be a stretch. but unemployment is low and markets are doing well. so why haven't people's wages budged? we'll get to the bottom of the mystery. >>> but first, here's my take. we're approaching the ten-year anniversary of the global financial collapse in september. and financial systems around the world appear healthier than anyone could have imagined. turkey today is a rare exception. but even greece is doing well enough that on monday, after eight long years, the country will finally emerge from its bailout program. it certainly seems like the global financial crisis is a thing of the past, safely put behind us. and yet in a sense, that crisis never really ended. steve bannon made this point when i interviewed him a few months ago in italy, where populist forces had won the recent elections. >> the implosion of those world capital markets, right, has never really been sorted out, that the fuse that was lit then that eventually brought the trump revolution is the same thing that's happened here in

u.s. economy in the global and u.s. economies.aroline: in terms of huge capitalizations, we had that and the disparity is enormous. they have upped their terms of profit cap. romaine: it really does. tech is not only dominated the market for several years but let's put this in perspective. the economyinated and it is the economy that has lifted apple. they have gone up hand-in-hand. you are talking a $1 trillion market cap on a company and in an economy in the u.s. valued at $19 trillion based on last year's gdp, so you are talking the market valuation that would represent almost 5% of the u.s. economy. that is the coincidence. the issue here is that what apple was a part of over the jobs atades, received the helm, and now tim cook was directly tied to changes in consumer habits and behavior, he rode that way but now we are talking about a company that could be valued at $1 trillion. vonnie: we should keep talking about it because it is going higher. 206.31 right now. thanks to romaine bostick. caroline: quite fascinating. we will

u.s. economy but the global economy to thank you sophie. the former soviet republics now thank you so much been a german our americal has kicked off a three day tour of the caucasus starting in the germany and the georgian capital excuse me of chief lee see she has she was welcomed by the georgian prime minister back at sea who is pushing for his country to join the european union and nato as protection against potential russian aggression but the west is reluctant to antagonize moscow and today chancellor angela merkel rejected any fast track membership while in the run up to. visit calls for a more liberal georgian society have been growing louder tbilisi's l g b t community is spearheading a push back against what it regards as conservative values they're pushing for l g b t rights and a liberalization of the country's strict drugs laws the w.'s emily sherman takes a closer look now at the movement in georgia where drug possession could lead to life in prison. this is the soundtrack for social change in georgia. tech no clubs like he did

u.s. economy declaring on its web site quote jobs jobs jobs the american economy is booming. but buried underneath all the news bold headlines and talking head fawning something feels i don't know something is feels a little off because while the economy booms for some we are also seeing some very disturbing trends and things that we don't like to talk about at parties like the news that a homeless census in seattle washington recently uncovered the number of people residing in campers and other vehicles surged forty six percent over the past year in fact according to governing dot com americans living out of their cars isn't unique to just the city of seattle washington matty quinn reports that there's been a boom in vehicular homelessness especially out on our lovely left coast where rents some skyrocketed in the number of homeless people who don't live in shelters is up twenty thousand from twenty seventeen but with more and more u.s. citizens being forced to live out of their cars due to increasing rent heavy debt low wages and an affordable cost of living one of they goi

u.s. economy. james, on the money as ever.uing his thoughts on markets on bloomberg radio, as of 7:30 a.m. u.k. time. let's get back to the turkish story. said imposings capital controls on turkey is a real possibility. he spoke about his concerns earlier. i have much deeper concerns due to this standoff. i did not realize trump would be so tough in getting his return. we now see a real bargaining taking place between the two leaders. both of them are probably not willing to compromise. mark, has erdogan. himself into a corner by saying he will not take end international bailout or raise interest rates -- an international bailout or raise interest rates? him: the only opening for would be to give up and return the pastor to the united states. that would be the best alternative. you may see that happening. there may be a face-saving effort on both sides. it remains to be seen. i cannot be too optimistic. >> a question about turkish banks and u.s. bonds trading on $.50 of the dollar there. if you had eight deposit in a turkish b

u.s. economy.hey are effectively exporting tightening around the world and it's always problematic for emerging markets when you have a strong u.s. economy. and the tax cuts deregulation and the 4.1% gdp we will probably get the fourth rate hike this year but that's tough for emerging markets. we can see the end of that improvement. there is no more that can be done in terms of stimulus. possibly an infrastructure program but we have to get through the midterms first. i think from now on, most isnomists see that 4% number actually going to start to soften and the fence will hopefully be done after that fourth rate hike area it doesn't need to be on such an aggressive program anyway. maybe that will give a reprieve for emerging markets. closer to the end than the beginning so you have to think about your moment or two start getting back in. is a 20% selloff is something else? it's not a crisis. of the stock all markets are down and there's contagion to western markets. thelira is not at 20 to dollar

u.s. economy. remember we still have vibrant sectors such as technology, consumer in retail and consumer sentiment. investment is strong. real estate is strong. there are a lot of the parts of the economy that are doing well and can hold up right now against selective tariff increases. >> all right, guys, thank you all very much. president trump, his strategy for winning 2020, some believe is lose 2018? could that be possible? we'll discuss that. fact is, every insurance company hopes you drive safely. but allstate actually helps you drive safely... with drivewise. it lets you know when you go too fast... ...and brake too hard. with feedback to help you drive safer. giving you the power to actually lower your cost. unfortunately, it can't do anything about that. now that you know the truth... are you in good hands? retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers

u.s. economy. the u.s. economy has been pretty strong. romaine: that is a good point. his is about the economy and consumer spending. slowdown inng a growth and cracked in europe and when you think about what is happening in the u.s., the economy is on an upward trajectory. shery: tracks especially in china. that was a good breakdown of the earnings season. it is time for the bloomberg business flash. more fallout from the fatal bridge collapse in italy. the company whose tollroad license includes the bridge atlantia is in talks to pay a fine to the italian government. there are talks to company would million.$570 they would also have to replace apartment buildings that were under the span. learned the ceo of google told workers at a staff meeting the china plans are exploratory and in the early stages. there are reports google is developing a search engine that would censor results in compliance with the chinese government. bloomberg learned pierre on run lost more than 16% in july when -- his hedge fund is in the red for the year. he has almost $1 billion under manage

u.s. economy. i know your mandate is the u.s. economy, but how much of a risk do you think that is? e have been going very slow with the rate increase, well telegraphed. i think these foreign economies have had ample opportunity and ample understanding of what was going on in the u.s. we do have some countries that have special situations and special political situations of one kind or another. not enough reserves. so, i would take those as special cases, the countries that are having trouble, but i will keep an eye on it. michael: on the list that fed officials have been concerned about, the decline in home sales. but also median prices have been falling. is the fed killing the housing market by raising rates? james: well, housing is one of the most sensitive factors, so you would think he would have some impact there. if you talk to real estate people, they would say, well it is because of the limited , your singnd prices beating prices went down, but -- you are saying median prices went down, but they had been rising. housing prices have been rising at a fairly good clip. michael:

u.s. economy thus fort penalties imposed are likely to shave off a couple tenths of a percentage point, butant to continue down this pathway. we have an economy bouncing around 2.5% growth yes, we did see an above-trend activity level in the second quarter, but we are still at that pace, so we can't be giving away tenths of a percentage points >> are we in peak earnings >> i think we are. from here on i think we'll see a slowdown in momentum i think the u.s. economy has been reliant on temporary factors, particularly looking at the consumer sector, looking at drawing down savings, ramping up credit we have not seen the meaningful gains in income that are needed. as a consumer based economy, if we don't have a happy, healthy consumer it will be difficult to maintain even this 2% growth, which will translate into maybe less optimistic outlooks >> are we at peak markets? >> i think that's not the same thing. for risk assets we could continue to see a bit of a run up as we see companies buying back stock, reducing debt, but longer term, if we don't see fundamentals improve to justify the levels

what good is a booming economy have only a small small percentage of the population can actually enjoy it because that's what i think is happening here in the u.s. everyone says oh the economy is going great everyone can get a job but i don't see a lot of people really enjoying this economy the way i saw it back and like the i'd say the eighty's or the ninety's like what people are buying and having a great time yeah i would say that you can't have it's not a booming economy if only a small percentage of your population which is in our case mostly the one percent or that top one point zero zero percent or whatever the ninety the rest of the ninety nine percenters are not. they're not doing as well and that to me is like you don't have a booming economy as you said there's tons of jobs. but there are people to fill them you know were there are so many issues at play here with child birth. immigration and a lot of other things that i think that it's it's absolutely to chris to ask the american people to think agree that there's a booming economy and to believe that while we still have all these what will who are clearly not getting anything out o