Onomists were so wrong on this very strong month of november for jobs . Murray a couple of things, first of all we know we have this big midwest storms during the month and a lot of people, let economists think that subjects in the number. Anywhere from 30 to 40,000 because of the weather. I looked the numbers, and these numbers are not seasonally adjusted so you have to compare to the year before in the year before that. Virtually no impact. Nothing significant on the weather. So additionally, everyone got spooked by the avp report because that came into the week. If you look at the avp, theres a lot of volatility there almost 70,000 with standard deviation. But when that that comes them below hundred thousand its usually historically leaves to a blowout number thats about 60 to 70,000 above the market expectations. So the signs were all there. So the difference between the surveys, the Household Survey used with the Unemployment Survey has no impact from the strikes. And of course you got the gm workers returning. The household is going to be weaker. To the bottom line, this is a great number, tells of the economy is doing well. But if you want to explain why the number was above the market expectations, those two factors are the primary target. Look at these headlines might, got 266,000 jobs created in the month of november. If got hourly wages up better than 3 . Unemployment rate of 3. 5 . This is a really solid report. How do you want investor on better than a solid report at the blowout. In a country that so divided right now between republican and democrat, for the people of Middle America who are seeing, getting jobs, and seeing wage increases, this is a positive for them. So one thing is gonna bring us all together, we want to earn more money, we want to keep more money in our pockets. Cc Consumer Spending very strong, so this can bring us altogether that the economy is working. Not just for a certain piece of it, its working for everybody. So where do you want to invest . I want to and vest long in United States of america pair you dont need to look into europe or emerging markets, focus on whats working right now and thats the u. S. And we have more weak Economic Data out of germany. This week we continue to see europes inability to generate any growth while the u. S. Keeps just rocking and rolling anthony. So have a fed meeting last week and the feds been on hold as this change the feds movement anyway . Nodded all theyre basically standing still and theyre not going to alter policy. Which is one of the reasons why the equity market can actually celebrate a strong employment report without fearing that somehow the federal reserves gonna take that punch bowl away. They told us that knocking to take the punch blow away so we can actually celebrate. Do you think that market expects the fed is on hold and when they meet the second upcoming week. I think theres some nervousness because of what happened last year in december in the market. There are some people who wanted to take a little bit of money off the table. I think the set up right now, for maria, is the until something changes we have a strong economy, we have great innovation, we have new companies coming into the market, so rather than timing the market, and or say weve been going through a long expansion let me pull some out a way to the sidelines. Stay invested in the nine states of america. I want to ask you both are 2020 is looking we know the economy has slowed this year versus last or certainly. But youre still talk about growth, not recession. How are you looking at 2020, mike. Especially look at the private sector, weve got all of these companies that have evaluations skyrocket and that has caused some questioning. Yeah okay, good economy, good backdrop, bar valuations getting stretched . In certain cases yes. But someone running a Venture Capital fund looking for places to invest, you want to find the companies that are going to be able to continue their growth plate. You seek Companies Like overcome public and not done so while others have done well. You want to build find the companies that once they do come to the public market, they come public whether its a 10 billion or 50 billion valuation, theres going to be growth there in the future. So for people looking at the markets, find companies you know, find companies you believe in. Buy a basket if youre not sure what to buy, and sailing the u. S. I know a lot of stuff comes across your desk, brian, because youre a Venture Capitalist investing in private companies. Where do you see the growth in the economy, what sectors or areas . One area is spin tech. You look at the big banks and banking hasnt changed to much of the last ten or 20 or 30 years. And i think thats about to change traumatically. With technology, with everybody having a smart phone or a computer in their pocket, so looking for areas where banking is going to be easier for people. Having access to credit, having access to money, is going to be easier for people. So we want to be at the forefront of that finding companies that are going to make it easier for people to start businesses and grow business. And anthony are out, lets talk 2020, your estimate and expectations for the economy whats most important . I think right now we need a positive capitols whether its reaching a trade agreement, the u. S. Mca or with china, those things are important. Because my look at the consensus of some p5 hundred earnings at 9. 1 , that makes mila nervous because if any of these positive catalysts that i just discussed dont come through, i think theres a real threat to the Earnings Fund for 2020. s is a blowout number on friday we had a good Market Performance as a result are there areas you want to avoid . Or do you want to be all in an equity here in the u. S. . I want to be all in on u. S. Equities. You can look smallcap largecap midcap i prefer largecap. And i think looking out to 2020 if we stay the course, there wilson be symbolic serial to gillaspie and headlines on china and whatever the headline comes out, youll get spikes, you get follows, but stay the course because the u. S. Economy is the best place to be in the country now. Final word i still like financials because of you look at profit margins, there far enough away from the peak, and by the way the number one profit margin expectation and hype is technology. Mike chan thank you both. My oneonone with David Rubenstein is next. Stay with us. The epson ecotank. No more buying cartridges. Look at all this ink it comes with. Big ink tanks. Lots of ink. No more cartridges. Incredible amount of ink. The epson ecotank. Just fill and chill. What shines forever . Diamonds. What is as rare as true love . Diamonds. 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Liberty. 1 in 5 people you meet wear yeah. That many but right now, is not the time to talk about it. So when youre ready, search my denture care. Poligrip and polident. Fixed. Fresh. And just between us. Hey fred its medicare open enrollment. E. Time to compare plans. Were fine with what we have. Thats what the johnsons thought until they tried medicares new plan finder. The johnsons . We saved a lot on our prescription costs and got extra benefits. How bout it, fred. Plans change every year. Use the new plan finder at medicare. Gov. Comparing plans really pays. Look how much we can save. This is the epson no more buying cartridges. Big ink tanks. Lots of ink. Print about. This many pages. The epson ecotank. Just fill and chill. Welcome back to 19s been a strong year for the economy in the market. This week the reserve expect to hold steady on Interest Rates. When it meets this week were looking ahead to 2020. With Carlyle Group cofounder rubenstein with over 220 billion in assets. I think 2020 will be a reasonably good year. Were knocking to grow three and 4 will probably write 2 . And thats pretty good. Weve grown now first ten straight years. Normally since world war ii weve had a recession every seven years. But were now three years past the average and i dont think theres any chance for a recession in 2,020. Based on what i now see, it wont be highgrowth but reasonable growth. Low employment as well. Of course during president ial election years economies usually do really well. So the consumer has been one of the bright spots in this economy, but there is some worried about capital expenditures, ceos with this uncertainty about china, and the trade deals are sitting on capital. Is that how you see it . And do you worry about cap ex . Capital expenditures have been down because it at there has been some uncertainty. I did the china resolution will be helpful and that gets done. And in the usc u. S. Megabyte what Business People like a certainty. We tell what the rules arnold deal with the rules. And now there some uncertainty about the rules and trade. By think that will get resolved in 2020. Ith you just mentioned some the things that havent got done and maybe well get done in 2020. At the market is at record highs. Time and time again. Weve had a good year in terms of the economy and the stock market. Is that the best time for realization in terms of private equity . You want to sell into this right now . Its better to sell them to buy, and this is one of those points. Prices are very hi, but they may go higher. But when theyre near the peak is probably a good time to sell. So in 2020 at think you see a lot of private equity realizations and i expect youll see more realizations than new deals getting done. Because prices are very high. Telling about the growth right down the economy. A lot of stuff crosses your desk, would you see in terms of interesting and growth stories out there . Will clearly that technology assist sector still has its opportunities there. Because of some of the problems with some of the tech ipos, i expect the bloom is off the roads on some of the unicorns. But theres no doubt theres a lot of good Young Companies are being starred in this economy. I do think some of them will come to realization and ipos the next year or so. I am very optimistic about the economy in the United States, i think Interest Rates and stayed low. I think theres a fair amount of confidence in the business community. About the administration of what is gonna do. I think if theyd like to see more action by congress and a cooperation between administration and congress. But given about the situation its okay. And the youth got a lot of dry powder carlyle, how much cash you sitting on and how do you expect to deploy that . Id say theres over a trillion dollars right now and thats not burning a hole in her pocket, we dont go to jail for dont get invested. But we want to invest it sensibly. So i do think theres money to be invested and i think as we sealed see deals coming along we went to get a 15 to 20 net rate of return. Thats uneasy to do, but thats were looking for. But thats what youre doing year after year at these doubledigit returns and private equity which is been an incredible growth story for the economy. Putting people to work, creating new jobs, creating new value, and yet private equity is under attack in this 2020 election. Senator Elizabeth Warren once to take a knife to private equity. It will how do you view some of these socialist programs were talking about . Ive worked and i do recognize say things and campaigns it dont come to freshen. Right now think congress recognizes that private equity has been good for the u. S. Economy, its not perfect but its in pretty good. I dont see anything happening in congress its going to damage the industry is been so good for iconic and good for the public fun. Most of the investors who benefit from private equity are obliged large public pension funds. So i dont think congress is ready to just throw that away. Yes for sure. And yet youve got, you got elizabeth more insane lets attack the billionaires but then she basically capitalizes on it by making these. There and as many billionaires as voters its easy to check billionaires. But the truth is the people make a fair amount of money, like me, came from fairly recent meager background. My mother and father not graduate high school i got very lucky in the business world. And now giving away the bulk of my money so i dont think its a terrible thing to be able to give away money. And i dont thing attacking people as a class is a good thing. Which brings me to the next issue in that is you cant pay for these policies by just attacking the billionaires. Youre not going to get the money you need to pay for 60 trilliondollar ideas like in medicare for all or the Green New Deal by just raising your taxes. Youre gonna have to go to the millionaire and ask for aspiring millionaire racks ranks to get their taxes. The average and family forget 65 to 70,000 thats the middle class. So if you go after people who are above the middle class there just arent enough of them. The truth is the only way youre going to get enough money to pay for these programs is to go to the people who have 65, 50,000 30,000 dollar incomes and thats not desirable. More of my onenenene may 1 of 75. The magic moment. Congress really democratized wall street. I wanted to have a firm that wanted to get everybody in. Because people couldnt access wall street. We wanted to be agents of change. For the better. Welcome back, campaign 2020 is in full force now. Well hear lots of plans from all the candidates about healthcare, taxes, wealthy, weve heard very little about education. Something David Rubenstein is very passionate about. Let me give you example. Right now 14 of the American People are functionally illiterate. 14 quest meant. 32 cannot read past the fourth grade level. 1. 4 Million People drop out of high school every year in our function illiterate. Two thirds of our delinquency system are illiteracy lead. You take away the money of the wealthiest people he nine states, thats i can save solve the illiteracy problem. You can have to deal with education. Taking money away from the top is not gonna solve those proms overnight. Youre so right i think is a country in the u. S. We need to look at education were like 28 or 30, which on my middle school in grammar school. Not university. The literacy in the unites states is not as high as we should be. We have a k12 system that is not working very well. Its not going to work better all the sudden if we take money away for the top people in the forbes list or Something Like that. And thats what i want her on the campaign trail. I want to hear but education. Education is the thing that enabled me to it come from very modest circumstances. My parents and not graduate from high school i went to graduate from High School College and graduate school. And thats the dream many people have is to do better in the parents. And parents now are worried now that their children will be able to do better than them because of many of the problems we have in our country. But right now the Great American dream is what has driven me, and you, and others to try to make something of ourselves. You know we have tailored swift combination, heres an artist who wants to own her masters, only she created, but she decided not to do it. Now she saying its carlyles fault. Well. Taylor swift is a good artist i listen to music i like it all assigned. And i continue to hope she will perform great music. But when you do interviews of me, you dont on the masters here. You are owned by the company you work for. And this is very true in many businesses. Its true the music business in that particular case i think there will be a resolution and that in the near future. Hopefully she can continue to very good music, but something more than my being able to resolve it right here. Yes i understand that david. Its interesting to look at you, youve done a lot of different investments across business and its not necessary in a specialty field. You wouldnt specialize in energy field. Where are your specialties now. We have a large energy and technology and were also special centering things around the world. We are very global and we have a large presence in china and in india, large presence in europe. So would like to be not only the unites states but global. You are in china most recently and you were at that meeting were gigi and paying also talked about the trade deal in front of people like henry kissinger, gary cohen, and others. What your take on china and United States . These are completely different cultures. One culture is a communist country and it is tracking its citizens using facial recognition, another country wants freedoms, and how do you do a Dealer Partnership with such different approaches to life . It throughout the last five years or so whenever you have two gigantic economies in the world they have not been partners, they are usually rivals. This not unusual that the two biggest economies in the world are revived rivals in some respect. But i dont think organist solve this by military means, for chilly working to solve it by peaceful means some type of trade group. I think a trade agreement is in the near future can happen. I do think President Trump wants it, i think shes a pain once it, i think opie a phase one it wont solve all our problems, itll make some progress in a bigot for 2020. How much of the pressure was hong kong with all this . I mean you had six straight months of protesters in the treat streets in hong kong. You had a bill that passed the senate and the house in terms of tying together chinas authoritarian rule and how far it will go with hong kong. To trade business the United States. Why think most businesspeople would like to resolve these trade disputes and not get in the middle of hong kong issues. Hong kong is a very complicated issue and i dont think thats going to get resolved the near future. I dont think the trade agreement will be held up over hong kong. He wrote an incredible book, the american story and you have several people we now interviewing or doing interviews on some of our founding fathers. Some of the great originals of our world like Martin Luther king jr. And of course john adams, abraham lincoln, and Lyndon Johnson and more. Tell me why he wrote this book. I know youre patriot in our countrys history is important to you. Let me talk about the background of it. Right now we dont talk of about history and civics much in our school. Right now three quarters, 75 in a recent survey can name the three branches of government. One third of the government could not answer one branch of government. Fortynine out of 50 states citizens could not pass the basic citizen test the naturalized citizen test have to pay past. 91 of those that take that test pass. Recently the native born citizens and 49 out of 50 states cannot pass that test. So what i want to do is educate more people at history. In one subject im interested is members of congress could because they pass our law spirits i start a program six years ago to have a great historians, let me interview them in front of members of congress. We just once a month, we get 20300 member shot. And i think i have had some of the best interviews in this book. Its really a good way to learn more about American History through reading interviews. Its not the full text is not a 900 page textbooks but its an easy reading book. And you have an incredible collection of some of the most Important Documents of our countries dont you . Yes one day i bought the magna carta the next day is on your tv show talking about that. I think the magna carta is signum bolick of the things i like to do. The reasons i buy these documents is not so i can say i own them but to put them on display so people can see you then. It turns out that if you see historic documents are more likely to learn about the history of them and be a more informed citizen. Very famous harvard historian once said this people who dont remember history are condemned to relive it. So if we dont relive remember what happened in the past were to make the same mistakes he made in the past. And we should do that. My thanks to Dave Rubenstein rubinstein more wall street raptor the show break. Im your 70lb st. Bernard puppy, and my lack of impulse control, is about to become your problem. Ahh no, come on. I saw you eating poop earlier. Hey my focus is on the road, and thats saving me cash with drivewise. Whos the dummy now . Whoof whoof so get allstate where good drivers save 40 for avoiding mayhem, like me. Sorry hes a baby ugh, another electronic signature. You have to print, walk, sign, scan, recycle, walk, email yourself. Really . More walking, try again, waiting, recycle, walk, email yourself, then get back to your day. Or not. This isnt working. Introducing samsung paperless workflow solutions. With the galaxy tab s6, you can sign Digital Documents onscreen, with a finger or your s pen. Samsung business solutions. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Doctor bob, what should i take for back pain . Before you take anything, i recommend applying topical relievers first. Salonpas lidocaine patch blocks pain receptors for effective, nonaddictive relief. Salonpas lidocaine. Patch, rollon or cream. Hisamitsu. Welcome back join me next weekend coming up on the Program Special interview with the cofounder of paypal, he is a ceo of the firm. Selection are my special guest in that exclusive. This weekend we will see over and Fox News Channel for sunday morning futures. Got a big show this future Senate Judiciary chair Lindsey Graham my special guest spirit along with minority leader kevin mccarthy. On fox news. Plus right fox news start smart tuning every weekday for mornings with maria right here on foxbusiness hope you have a great rest of the weekend everybody thanks so much for joining us. Thank you elsie again next t hello welcome to the wall street journal at large. 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