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Europe's sovereign debt problems really hanging like a cloud over the slopes of Davos Germany's on the long Markel gave the opening keynote speech -- did not offer any new solutions to the debt crisis.
But the leader of the United Kingdom's largest bank is also in -- And Liz Claman got.
And you know what ticket and -- -- here we -- speaking of that club the sun goes down in Davos Switzerland.
We have our Fox Business -- on trying to keep us warm but really what heated up was my conversation.
With the UK's largest bank leader and that is Bob Diamond of Barclays and we asked him.
Not only about the situation in Europe because a huge amount of business there but also he makes a bold prediction may be surprising to many of your viewers.
Opt out US growth sometime this year here's what he had to say.
During the fourth quarter number of things have happened I think the the change of government and Spain it's been very positive.
I was down there are a couple of weeks ago visiting with the finance minister -- very very serious about labor reform.
Restructuring of the cost cost the progress we're seeing in Ireland news substantial.
By the change in government to Mario Monti in Italy.
I think the governor brought his first actions as the governor of the Central Bank in terms of the three year.
By half a trillion yen in repo facilities.
Has made a big difference in confidence that the banks will be suitable so.
I think -- a better position today I think there's a lot more to do put in the -- a better position.
It's far from your perspective -- was a global thing -- what kind of have to because it's coming most people believe.
Would and default on Greek default cause on the financial system globally.
I think we need to take Greece as a specific situation away from a lot of the discussion of zero.
I think whatever transpires for Greece let's -- -- something that is thoughtful.
But I think Greece faces a number of years of difficult austerity.
Doesn't -- -- shrink growth.
You -- the perception right now is that all these austerity plans that.
Italy and Spain Greece would be imposing have now -- contraction in growth that's.
The twin challenge -- challenge for Europe which is no difference in the UK in the US over time his -- we reduce the public sector.
Deficit levels debt levels of public spending levels are too -- in the US and the UK and across many European countries.
How do you reduce which by definition reduces the percentage of the economy and contributed by the public sector.
What getting economic growth and it means we have to be positive on the private sector.
US corporates UK corporates European corporates are very healthy balance sheets are -- We need to pass the mantle of growth to the private sector.
We need to have confidence that the banking system has.
Becoming safer and sounder.
Being able to lend and -- -- part of this move working with a company so.
This is very much about.
A focus of -- Private sector -- -- the United States Federal Reserve yesterday announced that not only what they keep -- rates at near zero for 2013 but now through 2014.
Is that part of the way to go.
I think its zero interest rate policy or or -- -- -- -- I think the approach that governor Bernanke has taken.
On monetary policy has been fine.
I think the biggest.
-- refine doesn't seem to me like a real endorsement you know when you ask your husband how to I look this is -- women go off -- And that's not good enough I wanna look you don't know look fine on behalf -- So that was a submarine found -- I was trying to look what I was trying to -- lives his list let's move -- to the side I think governor Bernanke has been very very clear from the beginning.
That he's not gonna take his -- off of us.
And in -- -- economic growth so the question is.
If if governor Bernanke is serious about keeping rates -- how -- we get economic growth.
And where we're gonna get economic growth is -- confidence in the private sector.
I think that's what the election debate will be about this year once received a formal decision on Republican candidate -- President Obama will be about the economy.
And I think one of the key things there is the private sector and it's about the corporate tax rate the US today.
That's the second highest rate of taxes for corporates in the world is second only to Japan.
We have a lot of special interest exemptions that are for remove those we could take the corporate tax rate down to fifteen to 20%.
And answer the question of the repatriation of income.
US companies US corporates are very healthy we're gonna be surprised to GMT in the fourth quarter I think it's gonna have a three handle.
So the resilience of the US economy we know it's there if we have.
The correct direction from governor Bernanke on the monetary pols -- side.
The question in my mind is how to we get this is going.
So 3% in the fourth quarter and -- -- -- we'll -- -- three -- very -- -- very well how.
That's just touching -- a very nice we haven't seen a three handle one.
Two years ago taken -- -- Bob Diamond was one of the few new bankers who was brave enough to come to Davos because it was at that point that.
Everybody was beating up on the bankers and and he is a man who just faces the music says okay we'll try to figure something out he embraces regulation not entirely in its current form their issues he has with that but.
It was a very realistic banker when it comes to doing business all over the globe I thought his opinions are very interesting about that but -- coming up in the next hour juicy we have Bob -- felt the CEO of the NASDAQ speaking in the -- show and I got reaction from him about the word that Duncan Niederauer his.
Most of his his big time competitor -- -- the New York Stock Exchange.
Is in essence calling are crying uncle and saying you know what.
Our merger and I see with the -- to force in Germany is probably not gonna happen because of regulator resistance.
And he has an interest in thoughts on that Bob -- coming up in the next hour and don't miss the 3 PM hour day I think although when I go inside the occupied -- -- igloo.
With billionaire Jeff Greene who made his billions.
Shorting sub prime.
He also had gone to Occupy Wall Street during the summer kind of -- you don't he wrote an -- that's a sympathetic to the protesters back then you'll get his reaction to the protesters here in Davos are send it back to you.
All right occupied job also look forward to that lays claim in their lives from Davos force meantime back.
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