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To central banks as we said announced rate cuts today but are these moves enough to stop a global economic slowdown.
Todd Buchholz is a former White House economic advisors author of the book rush.
Why we thrive in the rat race -- center is that this senior US economist at more.
We thank both of you for coming in -- first US as we've been mentioning this huge de -- coordinate coordinated Central Bank activity try to.
Save the world from going in a recession and yet the market just kind of dog why do you think.
And that the market is tired and and let's face it from the American worker's point of view.
He's like character in the Spiderman movie trapped in a web.
A web -- the threat of significantly higher taxes come the wintertime.
Debt and regulation.
The fact that the Supreme Court upheld Obama care.
Means that these regulations just seemed to gather more momentum.
And it's very difficult for entrepreneur orders to feel.
Successful -- feel enthusiastic about the future when they know that their taxes you're going up the regulations are going up.
And it discourages them from higher and so the job market is looking pretty darn dreary at the moment regardless of what takes place in China where the European Central Bank.
Elin forgive us for not allow hiring total negativity to take over I guess because I'd look at this nation and I say.
What's come up in the past couple of years.
The Smartphone total genius here of the iPad a lot of this coming up here in the United States not to mention a lot of other innovations -- orasure this company that we're going to be -- the CEO.
They've just gotten approval for an over the counter HIV tests that millions of people may now by.
I look at that I say okay fine.
Yes we have regulations yes we have difficult things but -- the whole world being in a total global recession or at their pockets of strength.
Well of course there's always pockets of strength in here in the US you mentioned a lot of those we have a lot of technological innovation and that is driving jobs.
In those sectors but unfortunately the majority of the jobs were creating are still.
In those low wage paying sectors that's what's been driving.
Households to spend only the money -- in their pocket their wage and salary and come which has been seen little to no growth.
And holding consumer confidence back in a more robust consumer recovery back -- if we don't have that increase aggregate demand.
We don't have businesses jumping out there to hire more and kicking our labor market recovery and -- higher gear.
Are we talk about demand talk I want to talk a little bit about supply first second here because in addition everything it was mentioned.
We also have trillions of dollars of cash not only held by corporations but held by.
Private equity -- by individuals just waiting to do what's gonna -- what's gonna jiggle led cash.
Loose on the judgment -- and its economy.
Which of course President Obama promised a few years ago look there are pockets of strength great story today in the state of Alabama.
Attracting a new manufacturing plant from Airbus.
The state of Alabama the state of South Carolina.
I have been able to attract Mercedes-Benz.
Airbus Lockheed -- There are many states in this country that are improving and they are states that are focused on exports.
Focused on energy production.
Hot and they tend to be -- that are not strangled by unions so we -- this instance where Alabama tracks Airbus went bowling tried to build a plant in the south.
It was told by the White House the Obama white -- it cannot it must put that plan.
Near the administration's brands in the unions it is in the state of Washington so there are pockets of strength.
But they are pockets of strength -- -- insulated or at least trying to hide from government regulation I'm a look.
Get back to the news of the day -- we have the ADP report which is the precursor to the government jobs report coming up tomorrow -- surprise to the upside by a big number so we got.
More than a 170000.
Growth where the expectation was closer to around 90000.
I do what do you expect for tomorrow.
Tomorrow we're looking for about 80000 net new jobs.
ADP report does.
You raise some of the the risks to the upside for tomorrow's nonfarm payroll report.
But we do caution anyone that -- -- to revise -- their forecasts that.
The difference statistically the difference between a 175000.
On ADP report.
And say a 100000 for nonfarm payrolls is just statistically not significant.
And we certainly don't expect that magnitude -- surprise in tomorrow's payroll report a lot of economic indicators of the come out on the labor market for June.
Just start pointing to a noticeable acceleration in job creation I just don't know where the impetus for that is is Todd says.
Business uncertainty has prevailed and business -- -- are in an environment where they're not gonna add.
Existing workers to payrolls they're not gonna make those capital outlays and tell the outlook becomes more certain.
By the way -- you look a little north of the border don't you talk to Canada and and what Stephen Harper's government is doing there.
They -- they're looking for a balanced budget three years we're looking at one and maybe twenty.
Will they -- -- Canada has demonstrated a fiscal rigor or responsibility of the fact that it cares about its future to a far greater extent in the US government has.
It was back in fact in the early 1990s -- Canada had its big fiscal crisis its fiscal -- And -- slash spending its last public pensions and now what's on a path where many of us should be envious of Canada -- got a great currency a diversified economy that got positive GDP growth.
And we're lucky to have them on our northern border in fact you know what David Mexico's fiscal dynamic or no matter like -- right.
None of that -- I've gotten out.
The one thing about Mexico they could not tell us they go to the books like it's fried tortilla that it Canadians don't do that at least -- -- their -- thank you very much tied good to -- -- Ellen thank you get to see him on him.
Thank you agree what we have been dealing with slow growth here in the United States but.
How about no growth at all we have economists who says the end of growth is coming and rising oil prices are divided -- what.
He's not worried questionable -- -- -- gonna make his case coming up.
And orasure the company we were just mentioning -- winds FDA outright approval for the First Act called HIV tests no -- personnel required.
Shares jumping today by more than 10% -- CEO to tell us why he thinks this product.
Could be a game changer.
Also the FBI is warning of malware that could knock thousands of people off the Internet on Monday you wanna stay tuned for these details -- -- Gloria.
Got an -- also as we go to break.
Take a look at some of the pharmaceutical stocks also today's Dow losers.
And closing bell he sponsored by TD Ameritrade.
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