willem: there really is not one. politically palatable is sort of anything that stimulates demand, -- rate cuts are dim in us are dim minimus. balance sheet expansion does not get to the real economy anymore. really out policy is of oomph. and we have to raise the fiscal policy for the discovery of animal spirits, which is not too likely. forget monetary policy. it has had its day. guy: so donald trump is on the right track when he talked about some sort of a new deal? willem: i do not know about donald trump. i do think we need fiscal stimulus, preferably one that is monetized because that could not impair the future stability of the country, engaging and fiscal stimulus. real rates being as low as they are, even non-monetized fiscal stimulus would be desirable. tom: professor, we were growing to do the single best chart. -- we are going to do the single best chart. normalized balance sheets, the fed, the ecb in blue. do you assume their balance sheets expanded in perpetuity? is that the only way out? willem: most l

that is sort of a willem buiter willem: itsn't it? is a slow decline in the growth rate of employment, yes. not a sign of strength. the u.s. economy i think is -- say, a global growth recession. to find that for our audience, please. willem: a growth recession is is below capacity and the growth rate of output is also below capacity. the fact that the momentum is slowing is important, but it still equates to about a 1% fall in the unemployment rate, even 2% year-over-year. but the question is what happens when we get to the point of labor shortage? tom: 4.9% is not 5%, is it? willem: no, but it really matters a lot, whether any unemployment comes out of jobs or through declining participation. did you see how professor buiter just lectured me there? he says do not ask me stupid questions like that. francine: if you look at wage growth, why is wage growth in the u.s. so difficult to achieve? willem: well, there may well be long-term structural factors that in the past combination of globalization and technological pressure onecular the

willem buiter is with us. all the textbooks of all these people we speak of, including what you taught. if we are zero bound, how do we get off of it? willem: with helicopter money. that is the only guarantee. infrastructure investment in the u.s., finance -- tom: but that comes from washington, from capitol hill, not from the fed, right? willem: absolutely. it has to be a combined fiscal policy action. vonnie: you are saying that we need congress? not shooting ourselves in the foot by raising rates too soon, yes. tom: everyone i know, such as willem buiter, needs infrastructure. your history can lean on that, right? tobias: there are parts of infrastructure that the industry -- tom: at the end of the day with mr. bernanke trotting out his new book, it is about the model of the art criticism being the old model, the phillips curve model, in the basement, a physical model that a w phillips came up with -- that a w phillips came up with. does that model still work? do you believe in the phillips curve? the phill

willem: absolutely. brendan: the other trend is the move away from theory and the move toward a data sets. this is one of the things that seems so attractive about stanford, that they have access to people who understand data and program and algorithmic thinking. it is a different kind of economics. that the datation is a west coast invention -- that has been going on for a number of years now. an enormous promise, but as long as you have wi-fi you can do it -- that is the case in calcutta. tom: for the parents listening this morning, and for many of the students who listen to us worldwide, you get through it, knocks -- you get to economic 101, is it economic history? what is the next desk course? willem: there are three. , economicmics history, and accounting. the one thing economists do not learn at a phd level is to distinguish debit from credit. a fast learning process to get a proper job. it is like the -- we have much more coming up. michael mckee is just off the set. he is wired and looking at his

do you agree, willem buiter? willem: yes. it has to make sure that what is a nasty shock, a self-inflicted wound, does not become a financial crisis. thether, the lines between ecb and the fed have to make sure that liquidity in all necessary currencies -- willem: i hope the helicopter money does not hit the big ferris wheel in parliament as well. willem buiter of citigroup and seth masters from bernstein. as we look at the jobs report, the former chairman of the president's council on economic advisers, alan krueger. this is "bloomberg surveillance." from new york and london, this is bloomberg. ♪ tom: "bloomberg surveillance." francine in london, i am tom keene in new york. we are going to rip up the script in a big way. "rk gilbert wrote a brilliant bloomberg view" column today. here is mark gilbert. thank you for mentioning me. i guess that would help the gray vote. tom: willem buiter with us with citigroup. this is not stanley fischer, this is irving fisher. james tobin of el and milton friedman in chicago all loved the

willem: absolutely. to the extent that the market fears a funding crunch, you have a proven track record with the european central bank as a lender of last resort. there is no question of self-fulfilling fear driven collapses. it is not part of the picture. tom: bring up the "morning must-read" right now. it would be inappropriate for me uiterk professor b about this. tom: michael moore, do you see any indication in bloomberg reporting that merges will occur? michael: not in the near term. i think the tone from regulators is shifting. you are seeing regulars so focused on banks building up capital over the last few years, and now they seem more open to consolidation in the banking sector, and some mergers happening. the problem is, banks are catching up to those capital rules, and no one feels so comfortable in their capital positions and their profitability picture that they want to take on a major merger, which is often possibly especially upfront, and can drag on for a long time. every bank is working

willem: they cannot file for chapter 9. it also cannot call the imf to come in and provide them with funds. it is the worst of all possible worlds. tom: bring up the chart here. i do not -- madame lagarde is not going to come to the rescue here. this is just one of their bonds from 100, down to 40. they cannot call on madame lagarde or president obama. who do they call on? michelle: they call on their citizens. their citizens will have to endure less public services and pay more in taxes and fees. they will have to learn to live with -- tom: don't they have the limitation of a minimum wage structure? issues where their hands are behind their back tied, because of washington? washington will not bail them out. what is the outcome now that we are finally at this point? michelle: the outcome is that they are going to have to -- they are going to have to start some austerity measures, cut spending even more, and maybe something can come out of washington in terms of -- you mentioned the jones act. maybe that can be changed. cha

willem: no. i know that there are times that a flattening, a slope reversal in the yield curve has predicted near-term future recession. of course there will be a future recession at some point. some years before that flattening curve or reversing slope curve, but there is nothing in the moment that looks like there is an internally generated u.s. recession on the horizon, no. francine: thank you so much. little bit later today on bloomberg radio and tv, . combination with gary cohn that is at 9:30 a.m. in new york , 2:30 p.m. in london. ♪ ♪ "surveillance," a historic day for the brexit. francine lacqua in london. we have willem buiter leading our coverage this morning. kevin cirilli is our chief washington correspondent, and we get a pre-weekend briefing. you are exhausted, i am exhausted. i suggest the president is exhausted. will he play golf this weekend? what is the agenda for president trump to regroup? kevin: there will not be a government shutdown. until decembern 22 and president tru

i like it, willem. i like it. as i was looking at this, i thought about a conversation i had with steven spielberg one time years ago. and i've been thinking, what -- i'm missing one of the things he told me. he told me there were three things -- i must have asked him what advice do you give to young filmmakers. steven spielberg says three things, there are three things not to do -- do not do your first film with kids, with water, and the third one -- i'm blanking on right now. maybe it will come to me before the conversation is over, but the point is that you worked with a bunch of kids in this project. >> yeah. >> and in your case -- >> i had just come from a project about water. >> water. yeah. >> i got a nose. >> but you're a veteran now, academy-nominated veteran. by the way -- >> veteran of what? >> for you, hollywood trivia buffs, willem dafoe is the only actor, i think i'm corrected about this, the only actor nominated for an academy for playing a vampire -- for those of you who like trivia stuff. here you

willem: i think they will support. leyen?. von der willem: yes. there is opposition but it is not related. francine: thank you so much. we will get back to willem buiter of citi. more on our conversation with philip hammond, chancellor of the exchequer, talking about legally challenging any prime minister who wants to suspend parliament to get a no deal through. this is bloomberg. ♪ ♪ parliament is dead set against no deal and the european union has not changed. the position of the european union remains the same, so the challenge for the new prime minister is to try to work with the same cards that the previous prime minister had, but to play them in a different way that hopefully gets to when a great deal. we have excellent candidates in the diplomatic service and i hope through the normal processes -- i was foreign secretary for two years -- a normal process that takes place one and ambassador retires or resigns, to employ -- replace within our diplomatic service, and i hope that will happen in the case of washington. francine: that was phi

willem: we are. certainly in the last few months of the year, we had a significant correction and price-earnings ratios. what we are currently concerned about in the short-term is this concern about growth and whether earnings have come down enough. we7%, 8% earnings growth, have concern we need to go a few points lower. we are going to get about 10% earnings growth. the longer term outlook for u.s. equities for the year is quite positive. the valuations are the area we feel most comfortable with, given that we feel earnings downward trend still, we are in quality stocks to whether it's volatility. nejra: one thing you pointed out is you had the ifn manufacturing against the s&p 500, and you pointed out that there's in this decoupling that's happened and use of the gap needs to be closed. i'm wondering what you think the cap would close with equities moving up to meet the ifn, rather than the ifn moving down. why is it equity markets should be repricing? willem: that's the whole question. what we do

willem: we will see. today's payroll is going to be important if we get something probably -- means it is a lagging indicator, and the first quarter was terrible, and you cannot blame it on the , as if -- because historically mild winters affect gdp growth. policy uncertainty has been up so much. tom: we have to go to break here. it is a most interesting jobs day. michelle meyer is with us from bank of america merrill lynch, and professor buiter from citigroup. 's chairman of the president's council on economic advisers. will we see a lower unemployment rate, and 8:30? this is "bloomberg surveillance." ♪ francine: i am francine lacqua in london. tom keene is in new york. this is what i picked for our morning must-read. --s is david focus landau david full kurtz landau -- he says -- francine: willem buiter from citigroup is still with us. his main point is that basically so itb is doing too much, structural reform or encourage fiscal spending, so it is the ecb's fall. is not the ecb's fall. they have to

professor willem bauder -- professor william bauder. -- willem buiter. the conversation on gold coming up. this is bloomberg. ♪ francine: this is bloomberg "surveillance." we just had breaking news out of spain, opposition parties voted to block the prime minister's budget bill. the approval was blocked by 191 votes out of 350 cast. we were talking about the possibility of a snap election. if you cast yourself back to the protests over the weekend, protesters in the heart of the spanish capital are demanding an election under accusing the prime minister of being soft in alans of talks with cat separatists. tom: what else do we have? francine: let's stick with spanish banks, santander reminded investors the juicy bonds can come with nasty surprises. they rattled the 81 bond market by saying they will skip an option to call 1.5 billion euros of notes next week. the bank cited the need to balance the interests of all investors. joining us is jonathan tice. first of all, thank you. this seems like an important decision for santander, which could reprice in

government and willem buiter stays with us. across all bloomberg platforms, we will be joined by jamie dimon global chinan's summit in beijing. this is bloomberg. ♪ kailey: this is bloomberg "surveillance." elon musk followthrough and his promise to take part in tesla's capital increase, buying $25 million in shares. he is the biggest holder with about 19%. creaseock sales in the -- increase liquidity. steep declines in the past two concerns thetoked german manufacturing -- will linger. losinga six quarter streak, aig's profit more than doubled in the first quarter, helping their overall earnings beat estimates which had not happened in a year and a half. tom: it has become an interesting soap opera, anadarko to be taken out by occidental. they will take over african on dollars.a gagilli what are you looking for today? at the ceo of chevron, but what are the next set of headlines? kelly: the thing we want to see now is how chevron will react to all ofth. anadarko has excepted occidental's bid and that gives chevron four days

willem: we will see. data is -- ment way, there is a concern if the under indicators -- if the other indicators are more forward-looking. that thehere is risk u.s. economy is softening. i do not think i have heard the word "recession" quite yet for the u.s., but there is a risk of a slowdown that seems to be underway, not just driven by external demand and distractions. it is domestically driven through excessive corporate leverage and capex. tom: i want to go back to caroline hyde. can you reaffirm the likelihood of global recession? recessionll, a global -- it is a global growth recession. we are close to that. of 2015, ifquarter you correct the chinese data for the obvious factor that is in there, you get about 2% global growth. -- ihat is well below think that is as close to the recession as you can get. tom: caroline, in the econometrics undergrad course at factor, the fudge factor is one of the detestable ideas. pick it up, please. caroline: talking more about the dollars -- we have seen some dollar

--willem buiter. worry about populism taking over, leading to an anti- euro sentiment coming from italy? willem: there is some risk of that. we should not overestimate the result of elections. populists get the a majority. the real power lies with the heads of state. that you see a majority of populists taking over. yes, the european parliamentary elections are a concern but it is not as significant as some would argue. professor i can green talked about the immediacy of europe getting its house in , given the migration immigration debate. how do countries deal with this? what does the netherlands do? willem: one needs to things. a common policy for the external border. funding of programs in the countries of origin to reduce the flow and attention paid to the integration of migrants into those countries. they have gone easy on that in europe. tom: conrad adenauer would not want the lazy man's out. the lazyey get beyond man out? willem: they have to start spending on integrating new migrants in the ec

willem marx joined the onset. the people you spoke to, how concerned are they about this infestation spreading? willem: it has paid, but they've lost 60% of the harvestable pine. in alberta and east, their huge concerns that this beetle is moving to new types of pine, a good spread as far as the atlantic coast because there is an arboreal forest that spreads 3000 miles from alberta to the coastline. mark: what about factors besides the beetle moving to the united states? willem: rushed them into the u.s. because they were running out of mature timber in british columbia. but there are other factors. the u.s. housing market, the demand in areas like atlanta. there's a huge market viable to produce process lumber down in the south east of the u.s., much closer to where they need to be for the market. mark: how do you get rid of them? willem: good question. there's no way of stopping the infestation. they can travel 50 miles a year. in 2006, 2007 the made over the rockies from british colonial. that was unexpected. s

willem: they have had to withdraw from yemen. now, the question is -- they say they are providing logistical support. what kind of support can they offer? certainly nothing on the ground. mark: willem marx with an update on yemen. u.s.-iran nuclear talks. we will discuss how close the sides may be to an agreement. "bottom line" continues in just a moment. ♪ mark: welcome back to the second half-hour of "bottom line." i'm mark crumpton in new york. thank you for staying with us. let's get you the top stories we are following on this tuesday. let's begin with a check of the price of crude oil and the close of floor trading. new york crude is up about 4.4% trading at $51.39. french prosecutors hate was not a next and that brought down the germanwings airbus. the copilot locked the pilot out of the cockpit and then deliberately flew the plane into a mountain. that was the conclusion after investigators listen to conversations and other sounds from the cockpit voice recorder. they heard the pilot tried to break down the cockpit door

willem: indeed. that could be the negative supply shock that could force the bank of england to raise rates. guy: what will it take to close this gap here? this is a chart we produced u.k. unemployment. i inverted that. this is the wage data. they used to track each other reasonably consistently. do you expect that gap will close anytime soon? seems to be aere lot more effective slack in the than the official data on capitalization and unemployment seems to suggest. that is not indefinitely and infinitely so, but for the moment, i see no evidence that it is showing a pulse. matt: i was in frankfurt show, thefor the auto world's biggest auto show, and i was talking to the ceo of and they recently bought vauxhall, so they have a big interest in the u.k. as well. he said he is getting no answers from brussels or the u.k., not hearing anything that is helping it make decisions as far as is concerned, and as a result, decisions are basically paralyzed. is this going to be the case for a lot of big compani

willem marx, bloomberg, los angeles, cal 20. mark: get the latest headlines at the top of the hour on bloomberg radio, streaming on your tablet, and bloomberg.com. that does it for this edition of "bottom line" on bloomberg television. i am mark crumpton, reporting from new york. "street smart with matt miller" is next. matt: welcome to the most important part of the session. this is street smart will. stocks --"street smart." stocks rising back to record highs. we are counting down to results from twitter, go pro, and kraft foods after the bell. plus, economist nouriel roubini will join us, and billionaire investor jeff glen rock gives us his call on european sovereign bonds. "street smart" starts now.

willem: it is both. clearly, the refugee deal that was negotiated, even though it , is a bigally binding positive because migration is in excess special -- existential issue for the entire euro zone. italy faces a special problem of being a key member, one of the three elephants in the eurozone. proposals are so out of whack both from what brussels will accept and what markets will accept that if they get through with anything like proposal that is still officially part of the government's program, and we will have another sovereign debt exits around october or possibly -- crisis around october or possibly even sooner. it is going to be extremely contentious and difficult. francine: are we over the euro crisis, or can we go back to the existential question, whether these countries actually stick together. willem: we will never be over the euro crisis until they reform the eurozone in a way to make it if properly functioning central bank rather than a system of currency boards as it is now. problem is mos

willem: absolutely. when i say global recession, i mean that global gdp growth at a rate of 2% or less for a year or more. that is perfectly consistent with advanced economies, not just the u.s., but the u.k. and eurozone are doing reasonably well. japan, of course, hasn't been performing too well recently, but this is very much and anand emerging-market -- emerging market recession with spillovers and negative impact, but not to the point of recession in the advanced economies. so there is no decoupling, but there can be significant divergence of performance both on the real economies of advanced countries and of the markets. joe: to what extent should the fed take into account this global weakness when it considers whether to raise rates? willem: clearly, the fed has to look at the evolution of aggregate demand relative to potential output and external demand as a component of demand. not so much for the u.s. as the euro area and u.k. but it is significant. clearly, a greater weakness of external deman

willems has not totally lost himself in the pleasures of paris. wherever mo willems goes, he plans to take the rest of us along. >> i want to continue to make my life an adventure. i'd love for people to enjoy watching the results of the adventure that i'm on. >> osgood: still to come. >> that saved my life. >> osgood: batting practice. >> osgood: but next, meet the fighter. ,,,,,, ,,,,,, >> osgood: elizabeth warren is freshman senator from massachusetts who some democrats are talking up a presidential candidate. mark strassmann seeks her out for some questions and answers. >> if you ask many progressive voters from harlem to hollywood a woman should run for president in two years. this woman. senator elizabeth warren. the massachusetts democrat is both revered and reviled. her style is aggressive and her message is economic populism. >> where everyone who works hard, who plays by the rules should have a real chance to get ahead. are you ready? >> main street she says is under siege by wall street. >> how can it be that if you're just big enough a

willem: i don't think so. this is the manifestation of the learning process, central banks -- theye to relearn the have to undertaken on a daily basis this will be a daily event. francine: let's go to wendy schiller from brown university, chair of political science. when you look at the world and the uncertainty because of geopolitics, trades, korea, brexit, now there is iran. which is the one that markets misunderstand or are too complacent about. nobody likes uncertainty. business does not like uncertainty, but politicians do not like uncertainty either because it makes voters nervous. that is a big concern for everybody, at least in washington these days, how will voters perceive it? right now the republicans are holding firm. they still believe in trump there they are not unduly affected by the trade situation. by the tradected situation. they are still not abandoning the republicans. as long as that partisan filter holds, the republicans do not feel as nervous or at however, it seems to be cracking overal

i'm willem marks and these are your headlines this monday morning. the critics get closer the british newspaper suggests even more conservatives mps have submitted letters of no confidence in prime minister theresa may as she begins a crucial day of brexit. >> these next seven days are going to be critical they are about the future of this country it's about people's jobs, it's about their livelihoods. >> the a pac future summit fails to deliver a declaration members are split over trade. >> we have great respect for president xi and great respect for china, but in the president's words, china's taken advantage of the united states for many, many years and those days are over. >> and the right call. shares in telecom italia rally on the news that there will be a new ceo. >>> just to bring you some market developments over the last half an hour or so, shares in renault have hit the newest low after they say carlos ghosn will be arrested there's been a potential violation of the financial exchange act we await comment on the report let's check in on th

please welcome willem defoe. [cheering and applause] hey, mr. defoe, thanks so much. please, sit down. god, i'm torn is what i got to say. i'm absolutely torn to have you here. you have an amazing career. all right. you were in platoon, what a performance, incredible. shadow of vampire, spider-man, finding neemo, last temptation of christ. you are not forgiving. okay. you want... if you're here for forgiveness, you don't have it. >> okay. okay. >> stephen: a lot of people still mad at you about that one? >> last time i checked, it kind of goes away. >> stephen: not here. [laughter] like most christians, i hold a grudge. now, sir, your new movie is called "john carter." >> yeah. >> stephen: all right. you play a nine-foot-tall alien with four arms. >> that's right. >> stephen: you're a method actor, right? [laughter] how do you prepare far nine-foot-four armed alien? do you a ride along with what? >> it's called motion capture. you get a little help from animators. >> like ping pong balls on your body. >> partly that. also we actually filmed all the scenes because... >

willem: nowhere. evenally stable to 2021 because it depends what part of the economy those economists are looking at. if you look at manufacturing, it is very weak and it is good to remain weak for a while. you need quite a substantial trade deal to improve that sentiment. on the other hand, the consumer is quite strong. as we have seen in the labor markets figures last week. so basically, what it means is that central banks in terms of interest rates is too glum. the solution is not there. in the case of the fed, i think that there is no need for the cuts. matt: is there any need for fiscal -- there's so much talk about fiscal stimulus being necessary in europe. it has me starting to think about the times when we used to talk about infrastructure spending in the u.s. we did get a tax cut package. we did not get infrastructure spending there. do you think that that is something you see on the horizon? willem: it is what people are hopeful for. it is a political decision, which is one of those difficul

>> willem: what's that? >> you were in the lion room. >> willem: the lion room's beautiful. >> yeah. >> jimmy yeah, you like it? >> willem: kind of a bordello motif. [ laughter ] >> jimmy: yeah. we designed all of our dressing rooms, today was -- 'cause we were off for a week, and they re-did all our dressing rooms 'cause all the dressing rooms i've gone to on talk shows, they look like you're in a hospital ward. [ laughter ] but no one sees it, because no one has to spend money, because no one sees it back there. but the guests see it. and i know what it's like to be a guest so, i just wanted to make it like norman bates and pee-wee's playhouse. [ laughter ] >> they're wonderful. >> jimmy: they're cool, right? oh, yeah, and the music room is cool, too, we got like -- anyway, we'll talk later. but, yeah, i'm so psyched for halloween, do you dress up for halloween, or there must be a lot of pressure for you? >> you know, i love the holiday but i'm not a halloween dress up person, but i have to say something f

♪ >>> welcome to "street signs" i'm willem marx in london with my colleague in japan. these are our headlines this monday morning >> european stocks soar hitting their highest level in a year as president trump and xi jinping call a time-out on fresh tariffs. >>> chip maker surging as president trump softens his stance on huawei. >> one of the things i will allow, however, a lot of people are surprised, we send and we sell to huawei a tremendous amount of product that goes into the various things that they make, and i said that that's okay that we will keep selling that product. >>> china logs the highest close since the end of april hopes rise for an end to the u.s./china trade war >>> deutsche bank shares also jump as sources tell cnbc the german lender will consider up to 20,000 job cuts as part of a major overhaul >>> and crude extends its gains after iran signs off on a saudi/russian plan to continue production cuts, but some oil ministers are unhappy the decision was made without them >> if opec wants to be alive, should decide inside opec, not to receive their i

ago and an admirer of willems' first film"" the man who yell."oo >> mo was veryat branding. he was already mo willems even before he was doing doing his picture books. >> reporter: well he in that in that film. >> yeah. >> reporter:e must mention his name. i don't know how many times. >> not just in that film and everythi he does, he mentions his name over and over and over again. yes, yeah. that was that was just the start. >> oh my goodness! a sheep! th reporter: over the year two collaborated on the cartoon network's short-lived "sheep in the big city." >> when we would look at the ratings, you would get a five. that was the number ple watching it. it was an unpopular show >> reporter: but their show codename kids next door was a hit. willems went on to write for sesame street, for which he won six emmys. the musical poses a different problem. >> how do you take a 40 pageut book a pigeon not beg able to drive a bus and turn it into an hour long musical. >> reporter: stick to a good story for kids, says deborah wicks la puma, who wrote the musi

>> mo willems. >> that's right! mo willems is on the show. don't let the pigeon drive the bus. >> you know "city dog, country frog". >> that's from mo willems. >> mo willems is on the show tonight, and he is going to draw with daddy isn't that fun >> uh-huh. >> what are you guys eating? where did you find a tic tac wow. way old. are they soft? ♪ we in the house >> tonight join jimmy's guests, chris evans, mo willems, musical guest kane brown, and the legendary roots crew "it's "the tonight show" home edition. >> we in the house >> jimmy: a >> and here is jimmy. >> jimmy: let's get to jokes today more experts testified before congress about the coronavirus, but who wants to follow dr. fauci ladies and gentlemen, that was the beatles reunited now give it up for the modern dance trickery of the jabber k wokk wokkies. >> what are you doing? >> jimmy: i'm dancing. that's right today vaccine expert dr. rick bright said without better planning, 2020 could be the darkest winter in modern history. it's not a good sign when our experts sound like the

plus, stephen welcomes willem dafoe rupaul charles and roy wood jr. featuring jon batiste and stay human. and now, live on tape from the ed sullivan theater in new york city, it's stephen colbert! ( cheers and applause ) >> stephen: please, have a seat! ladies and gentlemen, welcome to "the late show." i'm your host, stephen colbert. hey, hey-- ( cheers and applause ) how's everybody doing? ( cheers and applause ) i gotta say, you guys-- you guys are looking good. you're looking good out there, america. i've got to ask-- have you lost weight? like, maybe 239 pounds? because donald trump has left the country. ( cheers and applause ) yeah. a weight off your chest. >> jon: get it off! get it off your chest! >> stephen: as we speak, the president is jetting to davos, switzerland, for the world economic forum, an annual gathering that draws the world's eliteses from the world of business, finance, politics and public affairs. basically, it's what lex luthor would point his space laser at. ( laughter ) now, for those of you who haven't been invited, like i

willem-alexander become the first dutch king in more than 100 years. >> the man who became known as the spanish and doping dr. is handed a suspended one-year sentence. >> netherlands have been a monarchs after 33 years on the throne, queen beatrix has handed the throne over to her son, willem-alexander. >> the ceremony took place at the royal palace on the famous square. thousands of orange cloud well- wishers were on hand as they stepped out on the balcony to greet a cheering crowd. >> hoorah! hoorah! >> the country playing all monster with king. -- aying homage. they all watched dawes willem- alexander swore an oath of allegiance to the country and the dutch constitution in the amsterdam's new church. he thanked his mother. >> i have a clear vision of my ffice. no one knows what the future brings. wherever the path leads and however far it goes, i will carry your wisdom and words with me. >> the new kingdom was not actually crowned. he officially became king when his mother signed the abdication act in a ceremony in the royal palace. >> today, i make way for a new generation, for my s

willems went on to write for "sesame street," for which he won six emmys. the musical poses a different problem.yo >> how dtake a 40-page book about a pigeon not being into an hour-long l?and turn it >> reporter: stick to a goodst y for kids, says deborah wicks la puma, who wrote the music. c >> y't linger in a moment for the sake of lingering in the moment or soundi beautiful. you know, the kids want to know what the story is and what's happening. >> what if i don't like school? >> reporter: wilms' work has always kept the child's point of view front and center. >> childhood is inherently unpleasant. and nothing is to your scale, right? the chairs, these chairs, are saying... >> reporter: immense, yes. >> they're giant. they're saying, you don't beng here. you really shouldn't even be sitting here, right? and everything is big, because you don't ewow. you're n and the grown-ups, they take you out of situations. like, if you're doing sothing, and you're having fun, some git pair of hands grabs yo and picks you up, and puts you in anoth room. and you get in

willem marx reports. willem: an expansive new enterprise of american enterprise may be donning among the ancient rooftops of old havana. for michael connors it was another entertaining day at the office. >> these are the mail drops. you would just put your letter in there. [laughter] willem: he has been leading his fellow americans around this world heritage site for 15 years. sharing his love of cuban culture and his fascination with the unique architecture. >> baroque, rococo neoclassicism. willem: these are high-priced tours. >> there is a lot of bureaucracy and a lot of history between the two countries, but we have so much more in common. willem: to appreciate the common ground many required travel licenses from the u.s. government. how tricky is it to get the license to visit here in terms of bureaucracy? >> it is tricky. we apply every year for this license to take people to cuba for educational, humanitarian cultural, people to people exchange. willem: while these tours constitute tourism in every

willem: yes. both employment and wages, both employment and wages, especially for inflation, are actually up. we actually may be seeing a slight reduction in inequality last year, median household income increased for the first time since the 1980's probably. we are not at the end of the troubled road in terms of the sharingof globalization unequally, but there is hope. julie: it seems like there is hope even if you do get some of the disruptions in europe we are about and the uncertainty with stimulus packages in the u.s. the backdrop is strong. willem: as long as we don't get into trade wars. some really big caveats. willem: i think we will be fine. david: explain one thing to me. oth wayseard it b that wage growth hurts margins because you pay your employees more and that it helps because the consumer spends more. willem: both. obviously. remains --onstant lower wage growth. case, itis weak in any is probably more helpful to have consumption growing faster than have investment coming out of the

willem marx, bloomberg, riga, latvia. willem joins me now in studio. what is the status? >> the big headline here is the department of justice here in the u.s. is investigating. , -- theyto david king have talked to david kane and other victims of the scam. that is a big change. less of a convinced that latvia not a backdoor for these types of activities? the eurozone now, latvia is seen as one of the soft spots. it is easy to open an account there. the diligence is not done. it is important to note that some of these domestic banks, the smaller banks, rely heavily on foreign money, largely russian. >> standby. we will get back to you in just a minute. joining me for more on this global financial scam is cftc former commissioner bart chilton, now a senior policy advisor at dla piper. how difficult is it for regulators in the united states like the cftc to follow up on stories like this, and then investigate these kinds of schemes, which do impact american retail investors? like pulling teeth without any dental tools whatsoever. first, there are limited resources. in therd

willem defoe, "john carter," in theaters this friday. thank you so much. we'll be right back. your contact lenses fast, so you walk to your mailbox, not to your car. you also save money so you can buy a new shirt. mailbox no car (game show buzzer) new shirt order now at 1-800 contacts, also at walmart.

willem: it is not financial repression. tom: o, come on. willem: it's unpleasant for retirees. it's an equilibrium out,. there is investment weakness. this is part of the secular picture of the low to negative risk-free rate for years to come. that's not going to change unless you get much faster growth and much higher investment rates. tom: this is a huge deal for savers and retirees in america. i am off my podium here. hear the you can helicopters circling above us. we are less than half a mile from downing street. , it is herjaguar jaguar. we expect her to go see her majesty the queen and we're expecting the prime minister to tell her majesty she can form a government. robin: yes. i think it will be a relief to the country if she can do it. people would rather work with the uncertainty around theresa may than the uncertainty without her. there has been enough chaos in the united kingdom. francine: how long can she last? more legitimacy. she got the opposite. roland: she can last, but in a different way. she has to embrace the reality of the new parliament and be much more ac

willems went on to write for sesame street, for which he won six emmys. the musical poses a different problem. >> how do you take a 40 page book abo a pigeon not being able to drive a bus and turn it into an hour long musical. >> reporter: sck to a good story for kids, says deborah wicks la puma, who wrote the music. >> so you can't linger in a moment for the sake of lingerinr in a momenounding beautiful. you know, the kids want to know what the story is ind what's happ >> reporter: willems' as always kept the child's point of view front and center. >> childhood is inherently unpleasant. nothing is to your scale. right. the chairs, these chairs are saying.th 're giant. they're saying you don't belong here. you really shouldn't even beg sittre. right. and everything is big because right.n't know you're new. and the grownups, they take you out of situations like if you're doing something and you're having fun, some giant pair of hands grabs you and picks you up and puts you in another room and you get in trouble for complaining? >> reporter: from beethoven

willem: the decision was mildly expansionary. made was --nge they 4.5% of last year's gdp. 1%, kept bank rates at which is a missed opportunity for going negative, and they did not engage in yield curve control. the fact they had one dissent is , but andyurprising has been marching to his own drum for a long time. am not mildly surprised. the optimism -- thinkou sound like you the bank of england should have gone negative today and should have considered yield curve control. why do you think that? willem: the currency is in dire shape. 30% plus of the labor force is not working properly. the actual benefits collecting is 2.8is $2.8 million -- million. 20%.gdp in april is down the bank adds 4.5% to its balance sheet through q. week. modest, not significant expansionary response. good the government will 3.5% ofto borrow more gdp work with qe. it is the worst performing country in the world. i would've expected more, including willingness to go negative. is not already in territory seems to be teaming on that course of action. guy:

back to willem and joumanna. make sure willem doesn't have one of those beers hiding under the desk >> i wouldn't put it past him. thank you for that i'm struggling to pronounce the name of that company hijos de rivera. >> perfect >> i got it in the end >> let's look at how european markets are look on this final trading day of the week. cac 40 trading in the green. everything else is tipped to red. even dax is trading below the flat line. ftse 100 is the laggard down 0.6% let's also take a look at yields we've seen a big bounce in fixed income this week we have ten-year germany trading at about 40 basis points 10 basis points lower than the ecb meeting. ten-year u.s. back down to 2.92. never broke through the 3% mark. ten-year italy is back through 2.60, trading at 2.58. continuing to get love u.s. futures, today is a big day on the trade side. we can see the dow is seen opening up about 100 points lower. triple digit losses expected there. s&p slightly in the green. >> that's it for today's show from us. i'm wi

>> reporter: yes, willem dafoe. but he's still taking roles like this one, in "the life and death of marina abramovich." he picks his projects based on whether he feels challenged. the production was directed by his wife, italian actress and filmmaker jada colagrande. they live in rome and new york. dafoe's son jack from a previous relationship is a lawyer. spend any time at all with willem dafoe and you understand that he likes to disappear into his roles and his life. >> i like hollywood fine. but i don't live there. >> and that's because? >> that's because i love new york. i like being in california when i'm there because i'm usually working and i see friends and the weather's nice and all that. but i feel like i die a little. because i like the streets. i like being out. you know, it's pretty heavy being an actor in los angeles because you're always reminded of yourself. where here it's much easier to get lost. >> please welcome willem dafoe. >> reporter: so for this consummate shape shifter to emerge and play t

i'm willem marx. "worldwide exchange" coming up next >>> we are following three major developing stories for you at this 5:00 a.m. hour. first, rescue and recovery operations are underway in wilmington, north carolina flood waters continue to rise in the wake of hurricane florence we are live on the ground with the latest. >>> incredible pictures and video out of southeast asia. typhoon slamming into hong kong. you are looking live at washington, d.c., where today the president could announce tariffs on $200 billion worth of imported

then my guest, actor willem defoe has a new movie about war on mars. i didn't know mars had oil. [laughter] happy 100th birthday, oreos. in your honor i'm eating 100 oreos today. same as every day. [laughter] this is "the colbert report." captioning sponsored by comedy central [theme music playing] [cheering and applause] >> stephen: welcome to "the report," everybody. good to see ya. [cheering and applause] thank you so much. thank you, ladies and gentlemen. [audience chanting "stephen"] i can't stop that. i can't stop that. thank you so much, ladies and gentlemen. i cannot stop your love any more than i can stop the incoming tide. nation, as you know, i have been committed from day one bringing you up-to-the-minute news on the large collideer. i have done countless story on this. [laughter] well, now, folks, dramatic developments as physicists are getting closer to finding the so-called god parliament, the elusive subatom cal particle is clearly theoretical. i read it in today's "new york times," whose continued existence is also purely theoretical. [laughter] evidently it seem