on deficit feels the economy. i think we're in a conundrum. what might be a good thing for our country is the interest rates are low. some kind of infrastructure funding. where refund bridges and roads. and help those kinds of systems in our country, which would put many people in the country back to work. thank you for letting me comment. guest: well, i would not say that any baby boomer are anybody retiring is useless or anything like that. it is true the aging society will create some jobs and is creating jobs and home health care and other areas. host: the dim outlook is the ap survey of 30 some economists you talk to. this is not your personal -- guest: yes, thank you. ase of it is inevitable that population growth slows. it is not about any particular group. as far as the comment on infrastructure, some of this breaks down on party lines. you will see democrats pushing for that kind of infrastructure spending because interest rates are low. there is that you out there. with gridlock in washington, not a lot

so the global economy will adjust. but people will panic because there is this perception that china is critical to everything. i think that that's wrong. but that's the way the world works these days. so therefore there will be problems when china has even more difficulties that are more evident. alix: in terms of the actual stock market, do you think that actually has an effect on chinese consumption? they can still grow that? they're really invested in more real estate than they are with their assets? guest: it has a marginal effect on consumption. we've seen reporting about people not buying luxury cars and not buying midsized cars because of the flaws in the stock market. people put their nun there, they'd hoped it would rise, they take it out when they get something they want to buy, that's not happening right now. but also consumption really hasn't been as vibrant as the retail numbers suggest. i think it's been growing but not at the rate that everything thinks. it's not been the pull for rest of the world. we

economy of the debtors into dust. what we haven't had enough of in this particular negotiation is the recognition by the creditor, the chief creditor which is germany it has to play a big , part in the adjustment of the greek debt. as long as it doesn't understand that, not only is greece not going to recover but europe is not going to recover and it will hit germany as well. scartlet: jeremy corbin is either resuscitating or destroying the labour party depending on your perspective. he is polling well. 53% versus the runner up and his 21%. when jeremy corbin be good for the u.k. economy? robert: everyone, i think there are two questions on whether he would be good for the labour party, and whether he would be good for the economy. which can be separated. everyone thinks he is lefty ian and almost a communist. there is one sensible thing he is saying, which ought to be taken fairly seriously. which is about the monetary financing of an investment program. if for one reason or another, you can't do that through orthodo

data showed the economy -- gaining after data showed the economy grew less than expected. let's see what other markets are doing. that's it for "trending business ." stay tuned for "asia edge." angie will recap the big stories of the day so far. angie: it's the middle of the asian trading day, and that is a live look at the imperial palace in central tokyo. second-quarter gdp came in with a resounding -- falling less than expected. that's good news for the economy there. it's one of the major markets we are following closely for you. this is "asia edge." the top stories this hour -- signs of stability. the yuan fluctuates the least in a week as the pboc brings calm back to the markets. but, ouch, feeling the pain, the ringgit slides once again, extending its fall through levels not seen since the asian financial crisis. and a call to arms means shinzo abe must refocus his efforts on the economy. it's election day in sri lanka. rajapaksa, mahinda bidding for a dramatic comeback. will he do it? all that and more in this monday edition of "asia edge." jule: i'm keeping an eye

so the global economy will adjust. but people will panic because there is this perception that china is critical to everything. i think that that's wrong. but that's the way the world works these days. so therefore there will be problems when china has even more difficulties that are more evident. alix: in terms of the actual stock market, do you think that actually has an effect on chinese consumption? they can still grow that? they're really invested in more real estate than they are with their assets? guest: it has a marginal effect on consumption. we've seen reporting about people not buying luxury cars and not buying midsized cars because of the flaws in the stock market. people put their money there, they'd hoped it would rise, they take it out when they get something they want to buy, that's not happening right now. but also consumption really hasn't been as vibrant as the retail numbers suggest. i think it's been growing but not at the rate that everything thinks. it's not been the pull for rest of the world. w

concerns with is job and the economy. i think this kind of volatility in the stock market is going to play into that and could potentially affect voters' decisions heading into 2016. >> chuck, usually when someone is running for re-election, a president they will try and juice the economy, stimulus, make it look good before the election year. that's not the case this year. so is the president just going to sit back and just say, hey, hillary, try and run on my record now? >> i think you'll see them concentrate on the positive things i started with, unemployment rate, how many jobs they've created. this week i was in the keys doing some fishing with a lieutenant colonel of mine. he was doing a lot of trading of stocks. he said, chuck, you i've worked hard, you have liquid atsz ets. here's the first time to invest, which is the first time i thought why would i want to invest you now? he said this is the time to get back in. it will readjust. it made me step back and say, oh my gosh i can talk to gary b. and john. then he ta

the real reading is in the economy. the economy is not the stock market. and the stock market is not the economy. >> the president didn't get that much political credit for it. if it's forward looking that would suggest it would be good for republicans who want to be a change from the democratic party that the situation was getting worse. on the other hand the market seems divorced from the real economy and the real economy matters from the voters. >> they haven't seen when they talk about the people that have benefited from the overall market trend, that's not your average voter. so there's a bit of a disconnect. >> if you were hillary clinton and you were the democratic nominee would you rather have a down market and a up real economy? or would you have the real economy trending downward but the stock market's booming? >> i think for the people she's trying to reach, you want a real economy that has some tangible feel that it's getting better. >> she's got to make the argument that she's going to be an extension with some modification of barack obama's p

economy. the one caveat is that the u.s. economy just is not what it used to be. we would be grateful if the u.s. economy could grow, say, 3% instead of 2.5%. that's not enough to be a locomotive of global growth. the import share of gdp in the or. has been flat for five six years, so we're not getting any sort of huge growth bonus, and my conjecture is exit code was probably getting the bulk of that. joe: our next chart looks at canadian compared to mexican exports. we have an talking about canada and the weakness related to commodities -- we have been talking about canada and the weakness related to commodities. what's the story? who hasif you look at been grabbing north american export markets, the answer is that canada's exports have been flat or falling. 2008, the peak of the previous cycle, they were 50% higher than mexico. mexico has made that up and more . the relationship between the canadian dollar and the mexican dollar has been flat, so the canadian dollar's depreciation has not gained them any competitive advantage. scarlet: is this because mexico div

, the economy. he said that his government has been very successful in calming a volatile business market, which he had inherited from his predecessor. he said that his goal in the next two year is to bring inflation to a single digit. and he was very keen to bring foreign investment and foreign technology to iran. saying if foreign investment came here it can be both beneficial to foreign companies and for iran in its regional market. there's a lot of room for them to make money. and in turn, iran's youthful population will find a lot of jobs. he was very keen to push forward but careful to say that iran wasn't going to be with producing consumer goods, he said iran has to be independent and export them. the tone that he had was that this deal is done. even if congress is unable to kill this deal, iran has sailed by most of its problems they probably wouldn't secretly mind if congress killed this deal. they now it has political ties with europe. it has the backing of germany and russia and they can

economy. the one caveat is that the u.s. economy just is not what it used to be. we would be grateful if the u.s. economy could grow, say, 3% instead of 2.5%. that's not enough to be a locomotive of global growth. the import share of gdp in the u.s. has been flat for five or six years, so we're not getting any sort of huge growth bonus, and my conjecture is exit code was probably getting the bulk of that. joe: our next chart looks at canadian compared to mexican exports. we have an talking about canada and the weakness related to commodities -- we have been talking about canada and the weakness related to commodities. what's the story? steven: if you look at who has been grabbing north american export markets, the answer is that canada's exports have been flat or falling. 2008, the peak of the previous cycle, they were 50% higher than mexico. mexico has made that up and more. the relationship between the canadian dollar and the mexican dollar has been flat, so the canadian dollar's depreciation has not gained them any competitive advantage. scarlet: is this becaus

the economy. >> this is one subject on everybody's mind as the election approaches, the economy. >> we have dangerous economic wind flowing in canada. >> the country's economic health is shaky. we are coming out of a mild recession. oil prices have slumped, exports are weak. what ottawa's proper role in the canada? that's the context of our discussion. mr. wells: as the luck of the drug would have it, the first question goes to the liberal leader, justin trudea. mr. trudeau: good evening. mr. wells: canadians are feeling anxious about the economy. manufacturing is hurting. the price of oil is down. your economic plan is built around the middle class tax break. is that really enough of the response given the challenge that you say canada faces? mr. trudeau: one of the things we seen, paul, is that for 10 years the approach that mr. harper has taken has not worked for canadians. he has consistently chosen to give opportunities and tax breaks and benefits to the wealthiest canadians in the hopes that

economy -- the u.s. economy is always written off. written off in '81, '82:19:90s, the jobless recovery, and it's -- it's resuscitated once again. the fundamentals are pretty strong. asian corporates were lauding up the past years. u.s. corporate balance sheets are in cringes condition, low debt and capability to spend money on hiring over the next two or three years. the question is in taiwan -- i was in taiwan nine months ago. we are concerned. we used to be by far the largest trading partner for tie one. during most of -- taiwan, during most of the postwar period, and this his completely reversed, a lot of it because of the proximity. china is so big now, and 40% is tie one's experts -- taiwan reside experts go to china, many cases they're assembled and exported again. so have to be careful with the figures and the value added, but you have the case where 70% of taiwan's outward-begunked foreign direct investment goes to china, and then if they end up approving the cross-straits service agreement, that could go both ways for tie on

they will softly in the economy. -- soft landing the economy. they have many more tools than what people give them credit for. will they stabilize around 6%? yes. will they continue with the hesitant move towards a market-based economy, yes. we are to observe the financial instability. on that we get almost not just daily numbers, hourly numbers. that is what we are going to be obsessed with. but on the economic side, they have a lot more tools than what people give them credit for. alix: you listed a of things that worry you. what else keeps you up at night? what is the thing no one is talking about? guest: i had a attention to the currency markets. that is the most difficult market to control in terms of central bank policies. it is the one that started flashing red early on and not many people paid attention. the result of that is it started contaminating other markets. the bet the market had is that central bank's would be able to repress volatility and central banks had been able to repress volatility. now, central banks are having tremendo

bank and the government doesn't have the ability to prop up the economy? and the realrket economy. on the market, they face serious challenges. promote ahelped massive bubble. the mentality was similar to what we did with housing. there was a time 10 years ago where we believed rising ownership levels was a good thing from society. they believed having more and more people participate in the stock market was a good thing in terms of transition to a market economy. we created a bubble in housing. they created a bubble in the stock market. they are finding it difficult to control. have amarket side they major challenge. it is not one they are going to overcome quickly. on the economic side i'm more confident. they will softly in the economy. they have many more tools than what people give them credit for. will they stabilize around 6%? yes. the they continue with hesitant move towards a market-based economy, yes. we are to observe the financial instability. not juste get almost daily numbers, hourly numbers. that is what we are going to be assessed with. the

what impact is it having on the economy is -- on the economy? >> it is having a negative impact on the economy. interest ratetwo increases by the end of the year, taking them to the highest level since 2010. that puts pressure on consumers and companies as borrowing costs rise. at the same time, the depreciation threatens to increase the interest paymentsr that the government makes on its foreign debt. all of this adds extra pressure on a country facing a 25% unemployment rate and the aspect of losing another 60,000 jobs by the end of the year. head where does the rand from here ? >> we have seen it fullback from those record levels -- fullback -- pull back from the levels yesterday. what happened with china and what happens with the fed? a lot also depends on what the central bank does to reignite .he growth on the economy there is focus on their national development plan to reignite growth and get clear policies on labor productivity to boost the economy. anna: thanks for joining us this morning. good to get your thoughts. some of the look at

the opposite way of the economy. were they closer to where the economy is right now? >> our opinion is we are in a slow growth methodical grinding so stocks to want to go up but i do think we could go a little higher more in line with the economy fourth quarter. david: some people say it goes back to europe or china but deal get a sense this storm is over? >> it is a mystery wrapped inside a conundrum. i argue is of mysterious investors from back into thousand seven. not really injecting that note of uncertainty but the debate of the u.s. on a sugar high and also the debate with high-frequency trading. david: and some of that sugar has been scraped off. there is a sense of relief but what has changed between monday when we use of a panic and today? >> there was a moment if you were putting money into a broad u.s. stock but if you sneezed you missed it. they feel like china will not drag the economy down. if you put money into the market isn't as cheap as there is such a wide divide. there are many cheap stocks out th

a major global economy on the edge of recession. >> canada was once the darling of advanced economies but the slowdown has put the resource dependent country on the verge of a recession at a time when the u.s. is recovering. a 24-pack of beer is now more expensive than a barrel of oil here in canada. the canadian bench mark fell below $40 a barrel. its lowest price since 2008. analysts say that is heaping more pain on to the economy. >> it is starting to sink in and i think affecting other areas of the country. trade data is following and a recent survey found many canadians feel less financially secure than a year ago. many say they are scaling back on big purchases and trips to the u.s. >> i would say the salary is almost the same. the prices of food and everything going up. >> my daughters who work in the industry of the restaurant, they see less people coming in. >> i have cut back on a number of items that i thought were necessary. now i have to cut back. >> home prices have plunged 25% in calgary 25 years to date. >> a lot of my high end buyers were instantly on hold. my first q

the yuan and the economy have been an anchor of stability for the global economy. it survived the 1997, 1998 asian globalal crisis and the financial crisis in 2008 and 2009. it used to be 1% or 2% of the move is a big deal. for the chinese yuan. it looks like a daily move. -- that is almost like a new normal. long-term it is good for the global economy. in the short-term, it creates volatility. angie: the pboc's chief more about the yuan. what can we expect from the pboc? thethey are trying to calm market. there is a limit that the central bank will tolerate. they do not want to create a very volatile, violent move. it is not a free-floating currency yet. the second message they tried to send to the market is that we have things under control. we have enough of a capacity to deal with this kind of volatility. the message they tried to send to the market is we are not engaging in competitive devaluation. we are not engaging in a currency war. we are not going to achieve our ofget by the devaluing currency. these are the messages the are trying to send to the market

he says the gut -- the economy is still growing and expects the malaysian economy to grow 5% this year. touchingthe ringgit 17-year lows, people say their money isn't going as far as it used to. one malaysian person telling me that he has to withdraw more money more often. he is especially upset about the goods and service tax imposed in april to reduce the budget deficit. and of course, we had the former prime minister mohammed also joining the protests yesterday and over the weekend. are seeing this division, not just among racial lines, but also within the ruling political party here. guest runs axt state agency that aims to attract foreign investment to malaysia. shaw -- venalin amenshaw joins us via webcam this morning. how tough has your job become these past couple of months? zenal: there have been some challenges, more from the global economic move we have seen. the first half of this year, we announce our foreign direct investment. it has been tough. it has been challenging. we do expect a good second half of the year. we have a strong funnel. there is a very strong interest t

volatility of the economy. you know, you might have it in for the whole ay thing. host: you're calling in our line. $50,000 has your income fluctuated over the years because of the economy you -- in the business that are? caller: wildly. as i said, i've made -- you averages out to about $45,000 a year. it's been $10,000, $60,000. host: thanks for your comments this morning. comments aboutur the economy, your consumer confidence, 202-748-8000 for you who make more than $100,000 a year. 202-748-8001 for between $50,000 $100,000. 202-748-8002.,000, and unemployed, 202-748-803. headline of the washington wants to build a wall along the mexican border. mr. trump who's driven much of immigration conversation announced the candidacy two onths ago said he would simply demand mexico pay new fencing by illegal g the wages by immigrants here in the u.s. to ave tax breaks some illegal immigrants claim to pay the new deportation. policy of d the birthright citizenship that grants full american status for here including immi

to the economy? >> i have heard that argument. there are some -- there is some basis for that argument. when we begin to normalize the signal will be that these are more normal. move, doest a rate that have any kind of negative impact on the economy that you are concerned about? >> you can never say never. there are always unintended consequences. the way i think about it is we are calibrating the industry level to where the economy is and what the outlook for the economy is. and if we make that calculation pretty close to correct, we should not see unintended consequences. 25what would it the, with basis points be appropriate for an economy like this or should you be higher but you are constrained by what you can do? >> we start with 25 basis points. i think that is pretty obvious. the committee has communicated several times that the expectation is the path of interest rate rises going forward would be very gradual. >> the markets seem to have a different view. why have they come together? >> there

save the economy. yeah, they give the default. what would have happened if we would have done it? the assistance nobody knows. but nobody expects the economies to be this week and soared as much as they have. so they've created a bit of a distortion, and i think that's been the problem. >> rosy, that's part of the problem with what the fed now faces come september. i mean if you're janet, how do you move interest rates higher when the rest of the world is doing, including china, the opposite >> well, i think that the contract in the front-end of the right, which is basically that the fed rate hike is a low odds bet at this stage. i know they desperately want to get off zero. maybe they should have done it last year. but this is not -- i don't think you add morin stability on top of this instability by hiking interest rates unless things by september 17th turn around materially. there will be time to raise rates. there's not going to be an urges. the fed has to fight like it has in cycled past >> well,

be good for the economy. people say he is almost a communist. there is one sensible thing he is saying, which ought to be taken fairly seriously. which is about the monetary financing of an investment program. one reason or another, if you can't do that through orthodox monetary policy or fiscal policy, why not borrow for the the bank? fund an investment program? it can only be the case under special circumstances. it would have to be in deflationary circumstances. the idea that this is mad because it will lead to runaway inflation is wrong under the circumstances. it is something worth considering. that bit is anti-austerity, hat as reasonable credentials behind people haveown backed it and not to be considered, and not written off as a recent of this -- rescinded this version of socialism. has proposed this idea of qe. aggressive monetary financing of investment. the bank of england creating money to invest. is that a proposal you believe can be supported? guest: i don't know. i don't think he would have re

when the stock market goes up, the economy is going up. but the economy is not going up at all. somehowncial sector defeats itself as the brains of the economy and it would like to replace government. what larry summers said is what governments have to pay their debts by privatizing more, essentially, by doing what margaret thatcher did in england. that is his solution. all the governments have to do is balance the budget, selecting to wall street on credit, and we won't have any more problem. that is basically the financial sector is almost at war not only against labor, as most of the socialist talk about, but against government and against industry. it is a cannibalizing industry. so now most of the corporations in america are using their income not to do what industrial capitalism did a century ago, not to build more factories and employ more people and make more profits, they're just using it, as i said, to push it to pay dividends and buybacks their shares and a somehow manipulate the financial sector in the stock prices, not the economy as a whole. there is been a diverge

he talks about the gig economy. rather than sign on to a company for a full-time job, people collect a bunch of gigs to create a full-time income. however, that does not come with health insurance, a 401(k). what happens when the economy turns south and all of those gig laborers find those jobs no longer exist? who picks up the bill? aneesh: this is an area of great passion for me. senator warner is my mentor. i would suggest the following. the conversation needs to begin in washington and with the public and private sectors together on how we move forward. one of the most powerful secondary effects of improving access to health insurance was the creation of these marketplaces that decoupled what was a traditional employer in the last 50 years -- not buried in our dna, but to decouple that from the employer, that once individuals can be free to choose their own health insurance plans, then they can make better choices. to take that analogy further, you can start to ask yourself the question -- might there be a marke

the economy, isn't it? >> no, because the government takes from private enterprise and then tries to put it back in the economy and that's the same group of people that brought us the worst recovery since world war ii. that brought us unemployment that is actually much higher than the number being reported. brought us employment participation at three or four decade low. brought its obama kaz. thank you, don't want to revisit that. >> why don't they say, we have to spend more money? they dress it up by saying investments. >> that's what they do. the reality is investments are putting capital infrastructure, against people and education, and giving people the tools to do better jobs more productively, and i think government just likes to take money and throw it back at a problem and the issue is that it never works. didn't work in japan when they had their issues. hasn't worked in china thus far and won't work in the united states, and i think it's just i states. i think it is just another way to curry favor

so lets begin with our first topic the economy. >> one subject on everybody's mind the economy. ♪ ♪ >> the first question goes to liberalof leader justin. cad -- can -- >> the price of oil is down. your economic plan is by middle-class tax break. is that really a response? >> the approach that mr. harper simply not works for can -- canadians. that's not happening. that goes to the heart of the question that's being posed in this election campaign. is steven harper's plan working for you? we're the only country in g-7 in recession right now. there's no plan to get out of it and we just found out that wages are falling as well. i know you feel that at home. that's why we put a plan to strengthen the middle class. we are theth only party that's committed t in lowering taxes by asking the wealthy to pay more tax. i'll be glad to talk about tonight. when you put money in the pockets of middle-class canadians the economy grows. >> median has been on the rise since 1990. do you have a solution to a problem that isn't really there? >> not at all. if you spend any time crossing the country as

others are adapting to the economy, while washington is holding onto the old economy. as a result, america is no longer the best place for the henry ford's of today to create the businesses of tomorrow. while innovations keep trans forming our world, our economy is struggling to translate them into opportunity for our people. so that makes this election a generational choice about what we do next. hillary clinton believes the way to win the race is to drive in reverse. to revert back to more regulations, higher taxes, bigger government. i believe the way forward is to embrace the future. modernize our government. i believe we will once again make america the best place to create jobs. if we empower americans to fill those jobs, then our generation will embrace the american economy. that will lay the foundation for a new american century. today, detroit is an example of what can happen under probe business leadership. other governor snyder, corporate drive -- orbit taxes have dropped significantly. thanks to numerous progrowth reforms, michigan now has one of the best e

i think this is only really going to benefit sentiment in the markets and the economy at the margins and this has been a consistent pattern to try to restore the liquidity balance in the money markets. remember as a result of the devaluations we saw earlier this month we've seen capital outflows and that's meant to drain on liquidity as well. here in lies the problem with currency reform. you have the unintended consequences of capital out flows so the aim is to try to restore the liquidity balance as i said and this will probably only have a marginal impact on the broader economy. however, what is helping to restore confidence in the longer term i think is the fact that about a week ago the pension funds got the all clear to deploy capital into the stock market. we got a figure today on the wires and this is from the initials in beijing saying about 2 trillion yuan should be deployed into the market as soon as possible. this is good news because this is patient capital, sticky capital as opposed to the hot money in and out retail investment crowd so rounding off the week on a very p

they don't want to derail the cautious recovery in the u.s. economy. at the same time, they don't want to be delaying the rate too much, in particular the fact that they do see the economy is not enjoying a strong recovery. however, they do want to move away from the zero. the recent comments to suggest that the september hike could still be on the table in terms of what payrolls we will need to get anything above 200k, which could encourage investors to bring back the september rate hike. manus: which brings me, then, to your domain. volatility in the dollar over the past 11 days. ar trace on the dollar -- little bit of resurgence in the past couple days -- is the market long dollars? do you want to belong dollars? valentin: long dollar is still the strongest conviction. it has been the case that investors were adding to them for the last 18 months or so. that is the biggest position out there in the market. seeinghing, what we are is that investors could be encouraged if we see a hike in september. that would come as a surprise. that said, if anythin

as concerns grow beyond the market to the broader economy. barclays pushing its expectations to march 2016. the delay stems from fed fears of destabilizing markets, tightening financial conditions and lower inflation than the fed wants to see. john silvia at wells fargo says its considering a move to spring 2016 because the melt down on business. >> business conference will be negatively impacted. clearly firms are going to look at this and be less sure about their sales numbers and certainly less sure about any export growth they have into asia, especially emerging market asia. so i would suspect business confidence will be reduced and that will reduce capital spending. >> reporter: consumer confidence could take a hit with americans pulling back three to six months after what they opened promising to be depressing statements on their stock, mutual fund and pension holdings. the erosion in confidence could hurt housing as well with uncertainty prompting some families not to take the plunge into a new home even though mortgage rates declined.

transfer to the consumer economy. now obama has come in full throttle, $21 trillion of stimulus. now even though private-sector conservatives might come in and run the country, you're still going to have the fiscal drag, and then once the transition completes you'll have a nice positive free market addition and contribution. >> how do you reconcile that with the fact that the big drag on hiring all these years has been government austerity, federal and state and local workers for government agencies. not being hired at the same pace that private payrolls were adding and now it's starting to reverse a little bit. you're seeing the trend flatten out. what if we have yet to see that boost from government hiring? >> well, the numbers, i mean i'm sure you can look at hiring in certain spots, allky tell you is, the government spending as a percentage of gdp, is at 37% today versus 29% in 2000. so and i know we have 21 trillion of new deficit, new spending and the fed is a contributor to that with the qe. so we've, we just h

economy? what does this say about the u.s. economy? and what we're talking about there is really fundamentals and the u.s. they're pretty strong. we have to put it into perspective. we had 200,000 job gains over the last three months. that's good. we have strong housing. that's good. the optimists in this market would say, look, the u.s. is the best of the bad lot. the rest of the world there are concerns. and the u.s. is holding steady. at least when it comes to the fundamentals. as we know, sometimes oftentimes the markets are really disconnected from the fundamentals. if people will be asking what do companies do in this environment? ceos get nervous and start to question their business models and question whether or not their sales will drop overseas because we have a global potential global economic slow down on our hands. with the many companies that have major sales overseas, you know, could we see job cuts? could we see a slow down in the u.s. economy? all of that plays into it here. >> and just for context here, again, about 2

he talks about the gig economy. rather than sign on to a company for a full-time job, people collect a bunch of gigs to create a full-time income. however, that does not come with health insurance, a 401(k). what happens when the economy turns south and all of those gig laborers find those jobs no longer exist? who picks up the bill? aneesh: this is an area of great passion for me. senator warner is my mentor. i would suggest the following. the conversation needs to begin in washington and with the public and private sectors together on how we move forward. one of the most powerful secondary effects of improving access to health insurance was the creation of these marketplaces that decoupled what was a traditional employer in the last 50 years -- not buried in our dna, but to decouple that from the employer, that once individuals can be free to choose their own health insurance plans, then they can make better choices. if you take that analogy further, you can start to ask yourself the question -- might there be a m

good news about the economy, the u.s. economy grew at a 3.7% rate in the second quarter. higher than expected. that is a healthy sign that the american economy hasn't been hurt too much by chinese slowdown. shanghai's benchmark rising almost 5%. the index is still down almost 8% for the week because of the frantic selling monday and tuesday. let's get more on this by bringing in andrew stevens live from hong kong. it has been one tough week. one thing that hasn't changed is the situation in china. why this comeback? >> reporter: good morning, alison. it does appear this comeback is related heavily to buying of government into the stock market. we can't say for sure because it is difficult to prove. we know the government has given instructions, alison, for insurance companies and pension funds to actually buy the local market to prop it up. we saw a 5% pop in shanghai. most of that coming at the end of the day's trade. we saw the same thing happen today. 5% gain toward the end of the day. big buying coming into the market making sure things finish on a positive note. you

the u.s. economy grew faster in the second quarter than previously estimated. the gross domestic roddick rose -- product rose at 3.7%. they were saying last month it was 2.3%. ever biggest gains in consumer and business spending and a record increase in inventories. that may be a sign that strong growth will be a challenge to sustain. they have to sell all those inventories out. there is a sign of momentum in the housing market. the report says it rose in the last seven months. one half of 1%. mortgage rates still expensive by historical standards, around 4%. consistent drop growth also helping the real estate market. matt: first-time jobless claims fell to a three-week low. since march, the estate below 300,000 and that is a level that economist always talk about consistent within improving labor market which we know we have. the president of greece has appointed the head of the supreme court to lead a caretaker government as the country moves one step closer to an earlier election that had been planned. -- will become the first female prime minister, the head

it should be about the real economy. the real economy is not doing great. a 20 point hike in the funds rate will not change that very much. we had to get back to a more normal bonds rate policy as a way of getting financial markets in better shape going forward. tom: we have a lot of younger students coming out of our schools that we have never seen -- that have never seen a rate increase. that is something that you and i do not know from decades ago. it is not that important whether they raise in september or not. i think they should, but suppose they don't. the real question is, what do you think things will look like in december of 2015? it is going to be altra accommodative. normal is successes rate increases. dearth ofve this productivity. i will address that with chairman greenspan. ourdoes the success of fiscal policy fold into the surprise of no productivity? doug: we do not succeed without growth. without not succeed growth and productivity. if it goes worse than predicted, you take trillions of dollars off the table in terms of revenue that the go

the chinese economy influence the -- influences the global economy, is demand. this process other people are worried about, i see as part of the necessary adjustment to a more sustainable global economy. scarlet: how do you measure that? do you look at first and second tier cities? patrick: part of the problem is china has had a lot of inflation. it mainly went into asset inflation. part of the corrections we are seeing in the stock market, in the housing market in china, are essentially this inflationary bubble deleveraging and collapsing. but again, this is part of an adjustment china needs to move away from investment and export driven growth, more toward consumption driven growth. joe: david, if a big problem for the chinese economy is the linkage to the dollar and being at the mercy of the fed, is this cut enough, or will we have to see more? david: i feel like we will have to see more. the real exchange rate is up 1.8%. i think there will be more to come. this is maybe a signal is happening. if i can respond to patrick, i think this is more than rebalancin

the government is looking for ways to kickstart the economy. donald trump is leading by a wide margin where the voters will go to the polls first -- iowa. backed by 22%. ben carsonrosurgeon is the only other republican with double digits, 14%. scott walker faded into third at 9%. iowa's presidential caucuses are less than six months away. joe biden reportedly using his vacation to think about his next job. "the wall street journal" says the vice president is talking to friends and family this morning about a white house run. it would be the third try for biden. associate say he will announce in a decision next month. shares of cisco higher in the premarket. the maker of computer network year reported strong sales in the americas. and jordan spieth the favorite heading into golf's final tournament of the year. it starts today in wisconsin. won this year's masters. he would make more than 11 nine dollars in one season if he wins. -- more than $11 million in one season if he wins. tom: tesla offering a secondary offering, by definition a solution

size of the economy. outlays in those categories would fall to the lowest percentage of gdp since 1940, the lowest year for which comparable data has been reported. federal revenues as a share of gdp are expected to rise to 18.9 percent of gdp in 2016, primarily because several tax receipts would increase relative to gdp, largely a result of real bracket creep with smaller effects of changes and other factors. payroll tax receipts would decline relative to gdp, especially over the next several years. reflecting several factors, such as declined to unemployment trust funds. corporate tax receipts would decline, mostly because of an anticipated drop in estimated profits as a percentage of gdp and the effect of recently expired tax provisions. remittances to the treasury and federal reserve, which have been written -- have been very large since 2010 would decline to more typical levels. beyond 2025, is current laws remain in place them same pressures that contribute to the rising deficits in the next decade

japaneset of the economy and the stimulus. the economy is struggling to emerge. >> it is rising from down in the previous month. imports are less than expected. of $2.2 a trade deficit billion and it would be more than three times the deficit we saw in june. it adds pressure on the economy, which shrank in the last quarter. act in negative territory . the consumer confidence tumbled to the lowest in six months. will boostmic data calls for stimulus. to the minister says that a package of 28 lien dollars is needed to lower the income on households and he suggested that it should be delivered as a subsidy and that the additional spending can be funded from a higher-than-expected tax revenues. earlier this week, he did not expect to add the fiscal stimulus and he said it would be more effective than the central banks. we should be on the alert because of further declines causing the boj to act. deadly calming attack threatens economic growth in the vital tourism industry. it has been under serious correspondenthe is in bangkok an

the economy. this is one subject on everybody's mind as the election approaches, the economy. >> we have dangerous economic wind flowing in canada. >> the country's economic health is shaky. we are coming out of a mild recession. oil prices have slumped, exports are weak. what ottawa's proper role in the canada? that's the context of our discussion. mr. wells: as the luck of the drug would have it, the first question goes to the liberal leader, justin trudea. mr. trudeau: good evening. mr. wells: canadians are feeling anxious about the economy. manufacturing is hurting. the price of oil is down. your economic plan is built around the middle class tax break. is that really enough of the response, given the challenge that you say canada faces? mr. trudeau: one of the things we seen, paul, is that for 10 years the approach that mr. harper has taken has not worked for canadians. tohas consistently chosen give opportunities and tax breaks and benefits to the wealthiest canadians in the hopes that it wo

the underlying weakness in the chinese economy. they are suggesting those interest rates cuts that we had it is failing to spark a recovery in the chinese economy as witnessed by the july numbers. again for a consecutive month. octoberest fall since 2009. down 5.4%. it issuing a continuing weakness demand. inflation is up. pork pricet was inflation. nonfood prices continued to remain fairly tame. exports were out over the weekend. significantly weaker than analysts had forecast it. we came in minus 8.3%. shipments were down 2.5%. some of the regional economies as well as a eurozone has been weakening their currency while the yuan has remained fairly flat. that has weekend china's export. imports, ninth month in a row. what can policymakers do? another interest rate hike? back to you. >> qe with chinese characteristics. we want your opinion. #trendingbusiness. both of those are missed estimates. >> good morning. the current account has managed to remain in the black. they are missing estimates. japan posted its biggest current accou

he talks about the gig economy. rather than sign on to a company for a full-time job, people collect a bunch of gigs to create a full-time income. however, that does not come with health insurance, a 401(k). what happens when the economy turns south and all of those gig laborers find those jobs no longer exist? who picks up the bill? aneesh: this is an area of great passion for me. senator warner is my mentor. i would suggest the following. the conversation needs to begin in washington and with the public and private sectors together on how we move forward. one of the most powerful secondary effects of improving access to health insurance was the creation of these marketplaces that decoupled what was a traditional employer in the last 50 years -- not buried in our dna, but to decouple that from the employer, that once individuals can be free to choose their own health insurance plans, then they can make better choices. to take that analogy further, you can start to ask yourself the question -- might there be a marke

helped the economy. >> well, they needed adjust lt and clearly because the economy was slowing and the yuan was overvalued. they're acting very reactively at this point. they were caught off guard because it didn't anticipate the economy to slow down this much. there's been so much investment in the chinese economy that finally the case they have been making the last three or four years may finally be coming true and a lot of the unwind of the bad nonperforming loans is going to hit china harder than everybody thinks. >> we've seen massive risk off reaction to this off the back of the chinese move. is there a bigger effect to come? will this effect the u.s. economy as well as the stock markets? and is it something therefore that the fed should be taking into consideration ahead of potentially it's first rate hike? >> in my opinion no doubt the fed is very focused on what's going on here. the euro is up today primarily because the market is feeling that the fed is not going to raise rates in september. china is the second largest economy in the world and if they start to contract, it's

the issues in the -- in the chinese economy. currency -- global currencies have moved against the american multinational. i think wall street is slow to adapt. dollar is much stronger versus other currencies. when we miss our numbers because of currency changes, the perception for investors is it is an excuse. in the last six months, it has been true. i think the currency shift is reflective of the u.s. doing pretty wealthy there are issues in many other countries around the world, but the u.s. is doing pretty well. benioff told me he thinks there will be a lot of dead unicorns ahead. how do you think the shakeout looks when it comes to private tech? startups.e are some of them are going to work really well and some of them are not going to work at all. it makes sense to prepare for environments in which it is not easy to make money. to me, that does not translate into a call for panic. of -- thethe head rip, goodf sequoia is times, what does that say about the market? >> 2008 was not good times. our general attitude, i do not k

. >> the key is is the china economy going to get bad enough to effect the global economy. the reason we had the big correction is the fear of the possibility. >> so we're not worried about it anymore? >> no, but i think if you look at the effect of the u.s. economy that there is a decoupling. in other words, the united states economy is not that dependent upon china. in some ways the devaluations might actually help u.s. consumers. so i think that the u.s. economy is better able to weather the storm than say germany is because they're more dependent on the exports to china. so is this the bottom? i don't know. but we think that stock offer pretty good value. >> was there any -- do either one of you think that the september rate hike which seemed to be a certainty two weeks ago, did that start to come into play over the last week or was it all china? >> it's a secondary issue in recent days but it's in play and it's not so much are they going to do it or not, it's the confusion around it and disunity in the fed. if they told us they're not going to raise rates or they are g

economy are an indication of the strength of the u.s. economy right now and whether you evaluate job creation or the unemployment rate or just broader measures of economic growth people can feel confident. at the same time there's more that congress can and should do to build on some of this momentum the u.s. economy has built up and the resilience that this economy has demonstrated. and we're hopeful that when congress returns for from their recess they will be focused on passing a budget on time that reverses the sequester that will reauthorize the xm bank in a timely fashion, already a couple months overdue and that we'll -- we can hopefully get congress to finally overtake action on an increasing long-term investment structure. >> reporter: would you say the fundamentals of the economy are strong? >> well, that's been a phrase that has been used by others in different settings. i think there's no doubt that the u.s. economy is far stronger now than it was in 2008 and there are a variety of ways to measure that. one way i would measur