Real money. The world breathes a small sigh of relief because Economic News out of china was not as bad as feared and that gives you a sense of how nervous investors are right now. Chinas gross domestic product, the broadest measure of a countrys Economic Health rose 7. 3 cam compared to a year ago, down from 7. 5 . The slowest rate since 2009. All of this is way down from the 14 growth back in 2006 before we even started this chart. 7. 3 was better than what many economists expected. Now, we are living in a world with so many unknowns that expectations take on huge importance. Now, i want to remind you why what happens in China Matters do you meanly because chinas spectacular growth helped to prop up the rest of the world. You are invested in Chinese Companies through 401ks and irks. China is the biggest foreign holder of u. S. Trsh ris. We are all interconnected and china is so big and important that any slowdown or recession there will be felt by all of us. We are nowhere close to a recession, but moodys analytics recognises that a 1 point growth in china shaves 2 tenths of a personnel in american growth. The International Monetary fund expects the u. S. Semi to grow 2. 2 this year. We need every 0. 2 growths we can get. Here is the problem china is at a crossroads. The leaders want to wean the economy off dependence of selling independent goods to the world, and lean on chinese consumers to fuel the economy with spending. That may work for china in the long run, in the short it means Slower Growth than what the world comes to expect from china. Remember what i said about expectations. The signs of chinas Slower Growth are numerous. Inflation is at high levels. Debt is rising. Commodity is plunging. Foreign investment is shrinking. Another area of concern is how the Chinese Government will deal with a slumping real estate market. Mary snow has that story. Reporter real estate and construction fuels chinas economy, making up 20 of gross domestic product. Because its so big the slowdown poses risks to the broader economy. Housing dropped 10. 8 for the first eight month compared to 2013. In the real estate sector in 2018 boomed. Banks became cautious. Lending and declining prices comes in may, on top of a glut of empty homes and buildings. In chinese urban areas, one in five homes are empty. 49 million homes sold but vacant. Consumers had bought multiple properties seeing it has a safe investment as the economy soared. The market cooled. China stepped in to count it. It cut some Mortgage Rates and downpayments boosting financing for developers. Now the question becomes will china avoid a painful bursting of what some are calling a real estate bubble. Soft landing its a favourite phrase of economists to describe the ideal scenario of bringing an economy like china that has been flying sky high down to earth without crashing. When it comes to China Engineering a soft landing from 14 g. D. P. Back in 2007 to something more sustainable, no one should take a soft landing for granted. Thats the view of a prominent economist. Professor of economics and public policy. Ken served as the chief commist at the International Monetary fund from 2001 to 2003 and joins me from watertown massachusetts. Good to see you, thank you. In is partly a chinese problem and the world. We have depended on China Growing at a fast rate. Ultimately what does it matter how china affects its landing, and do you think its managing it . Well theres an economic aspect and a political aspect. The economic aspect is yes, a lot of countries depend on china a lot, and we do indirectly. Germany, for example, depends on china for the Capital Machinery exports. We do as well. Many countries export commodities. China doesnt have a lot of timber and metals and oil. At least they consume more than they have. So in china, when they slow down it slows down demand for things. Canada produces brazil produces germany, i mentioned, and, of course the whole world is slowing, it hits us a bunch of ways. They buy our stuff, like the chinese do. It hits markets, because it a lot of our Companies Sell goods all over the world. China has been a big part of Global Growth for many many years. They are almost as big as the u. S. In many ways. They are bigger than others and when they slow down it could be a big number. They were growing 14 to 7 . Thats huge. They could be growing a lot less. I have to say, the world breathes a sigh of relief when they set the g. D. P. Numbers, you never quite know what they really are. I dont think they do. So when they report you know, it was 7. 3, and the analysts were expecting 7. 2. It could be. A lot of people look at you know hate maps of chinas, you know energy out put to see whether theres more hate generated by factories from satellite images versus less to see whether their factories are working. The electricity consumption is down this year. They say its because they are turning to more services. Les dependent on experts. Im not sure. It reflects the economy growing. Let me ask you this. You study global economy. China has gone from a planned economy, centralized, where the government makes all the decisions, and and they are trying to emerge into an economy like ours in which consumers choose to buy things and make choices. What is the ipp herpt difficulty inherent difficulty going from one to the other. You want the spending to take place, but move if from the government to the consumer balance sheet. What is the trick . The government is good at doing big project, building a big railroad or a big road a big set of buildings. They are less good at subtle things like improving a toaster, all these things which are very important, you know in our lives, and so there are areas where you need to have the market and at a certain point you have built enough bridges, built enough buildings, and you have to fill it in and they are less good at that. They are better at exports because there the rest of the world judges them they say this firm produces good socks, this firm does not when you try to become more inward looking to be more dependent on domestic consumption, politics weighs in you can see this in giant ris around the world countries around the world where in germany the Domestic Services is less efficient. A lot of it is from lobbying and politics and monopolies. Let me ask you this. They have to stimulate behaviours. They need people to make money, people to be employed and stimulate spending. We struggle with it in america, what is the best way to stimulate spending tax cuts giving people checks or stimulus project. China needs to figure out ways to get the consumer to play a bigger role and stimulate spending in the right way. They do. Its not easy. There is a week social safety net. A lot of people have to pay for their kids education. When the parents are old, they have to pay for taking care of them. The government doesnt provide a nanny state at all. Not like in europe not like the United States. So people see that, and it makes them want to save. They are cautious. They have a one child policy. It gives them less of a cushion to fall back on. It makes them keep to save and its hard to coax them in spending. They dont have electricity, they are things you cant sell. Its not something where you can make a transition to say typhoon haiyan we have invested hey, we have invested knew now you consume. People have fear of not having enough savings, its part of the reason that most people think they do well to grow at 56 over the next 10 years, much less than 10 , as they did for a long time. A pleasure to talk to you. Yahoos report card is out. The pressure is on the boss melissa mire i look at her changes. And ebola rules that can keep tourists and dollars out of america. Tell me what is on your mind. Keep it right over the next 10 years, much tell me what is on your mind. [ music ] yahoos c. E. O. Melissa myer is breathing easier yahoo reporting profits thanks to growth in its mobile. Earning more than a billion dollars. One good quarter may not be enough to take the pressure off myer. Yahoo is losing to facebook and google. Last month it was recommended that it mermg with aol to boost value. Meier has been under attack over her ability to lead the giant. A defense of meier is featured in wired. Jessie, you know the cop well. Company well. True. You are not a blind cheerleader for yahoo or meier, you expressed doubts. Yes. The merger between yahoo and aol made me think two mules do not make a race hours. What is the answer. I dont think anyone nose what the answer is. Yahoo the business is a bizarre think. Anold business in a new industry. One of the oldest. Thats right. One of the oldest surviving names. When you think of the names from the days of the internet. Theres few left. Aol is not aol. Absolutely not. The only reason yahoo has survived this long is because of Smart Investments in yahoo japan. Alibaba went public last month. The pressure is on marisa to say what shell do with the core business. Its reasonable that by now yahoo would be saved. I think a lot of people are asking more marisas head. Do you think thats fair . Well fair or not, i think its the wrong time to ask for her head. Shes two years into the turn around c. E. O. For two years with the company. A lot of things are its like a garden where the flowers are coming up. You dont know if theyll survive. Lots was broken when she got there. Right. Just about everything was broken, right. And so i think that she has said look, i need more time. She has shown us and its fair to say in the earnings that she shows us with a little bit more time she could make some growth happen apt the company. Most important, she has created a board to support her in that. This is interesting. When we talk about yahoo competing in mobile growth in the end, when i think of the trouble, i think of a line you have written, and it says yahoo must once again become an idea factory fuelled by a hyper growth business. Mobile ads are interesting and important for the analyst and bottom line. That doesnt make a company romantic interesting and cutting edge. Thats right. That could be translated yahoo has to be struck by lightening thats how much that happens. They buy companies. They buy companies, and its possible theyll buy the next big company that has that. We have seen other Big Companies do that with acquisitions like facebook and instagram. The reason why marisa is the right c. E. O. Is she believes that could happen. I think you need the ambition to play the game. Theres few people with it. When you talk to people in the industry and around Silicon Valley what is the mood around yahoo. We think of a lot of these Companies Based on the mood around them. Are they ipp aniesive do they ipp aniesive inquisitive. Do they have the best engineers, to they have a vision of themselves. Facebook fought to be your knew curator of the internet. Right. Yahoo actually has a remarkable following. Yes. Its not clear what they do. The mood is two fold. They are a grand group of people in Silicon Valley who came of age and have fondness for yahoo. Im one of them. I dont want to see something i used and love for so long not work. The problem is marisa has not said what she wants yahoo to be. Most people are scratching their heads. They dont know what yahoo is. It has been buying a lot of companies. They contributed to the bottom line who nose. That is marisas fundamental challenge. She has to tell investors, the people buying the advertisements and those she is hiring what they want to be. Your bottom line is she believes in the company, and deserves more time. Thats right. You know what. From your lips to investors ears, and users ears lets see what happens, always a pleasure to visit with you mcdonalds didnt deliver supersized earnings the Fast Food Company said earnings fell july though to september. They were dealt several blows. Namely russia closing some of its restaurants, and a meat scandal in china. It led to sales falling 3 globally. But the story is no better here in the United States. Salesdeclined more than 3 thanks to stiff competition. Cocacola lost some of itsified reporting flat soda sales in the july through september period leading the company to announce a new costcutting plan to save 3 billion by 2019. It intend to refranchise the majority of the north american bot lipping territories bottling territories by the end of 2017. They lowered the earnings target for 2015 warning that Exchange Rates wont be in its favour. Harley davison sparked a 3. 8 gape in sales for three monthsnding in gain in accepts for three month ending in september. Profits fell dealers were left with too much invent ris, meaning showrooms needed fewer bikes. When it comes to bigpicture plans, harleys strategy may be overseas. David osow has this report. Reporter Harley Davison has built it is as synonymous with the open round, an american icon. It has captured consumer imagine nations with a brand so distinctive that harley tried to trademark the sound of its bikes exhaust. That led to an imaging, lionizing films like the wild one and easy rider. Harley is freedom, an iconic name plate like the Harley Davison bar and shield. And the best part chicks dig it. Reporter it wasnt always easy riding. Bordering on bankruptcy they took a hit. They were forced to lean on a 3 million high interest loan from billionaire investor warren buffet. The company hit bottom from the 2008 2009 downturn. Since then sales have bounced back. The real Success Story may be overseas where First Quarter sales soared 20 in asia and 9 in latin america, and 8 in europe. Harley davison is known for building big powerful bikes. To win over new riders, the company is switching gears. It may be looking at what Companies May be accustomed to. They realised that theyd have to take down the size and the price point. The line of street 500 and street 750 bikes are smaller, lighter and affordable and shipped to markets in shane and italy and india. Where harley is building moses from scratch in overseas factories. Yet roughly twothirds of Company Revenue comes from north america, where baby boomers have long driven up sales. The prop now is demographics. Baby boomers is a shrinking segment of the population. A big concern is harley is so big among the ageing white male and that group is getting older, gosh will there be demand as we look forward. Despite the surge, sales in the u. S. Are low. And that led some investors to say not so fast in deciding whether harleydavidson is truly on the road to recovery starting tomorrow new rules go into effect for ebola screening at americas airports. I tell you who is affected and how. Coming up, why the first time home buyer is like app endangered species in todays america. Nearly 70 million tourists came to the United States from other countries in 2013. About 2 million of them came from china, here is why im telling you this. The average chinese tourist spent 6,000 during a trip here 21 more than the average international visitor. That was before people worried about chinas economic slow down. It was before we started to worry about europes economy, i. S. I. L. And ebola. I want an update on the outlook for u. S. Tourism. Im turning to chris thomp sop, the c. E. O. Thompson the c. E. O. Of brand u. S. A. A private company. Good to see you. Travel into the u. S. At the beginning of this year the First Six Months before i. S. I. L. Was a big deal and ebola was a big deal i think it was up more than 9 compared to the same time last year. Correct, it was. Up over 9 . We have a National Travel and tourism strategy calling for 100 million visitors and we are looking for growth the 4. 6 . Those are great numbers. If we continued on the trend, 2014, we will have record numbers. People coming to the United States and record spending in the United States. Im wondering, however, if with an airline nerve shut down earlier in the year and terrorism threats, and ebola, whether people are just not pulling back on interNational Travel not that they dont want to come to america. Is there a concern they are pulling back and staying home . You know one of the great things that has occurred since we came into existence four short years ago is we have a National Travel and tourism strategy. It has nine federal agencies engaged in growing our nations Number One Service export. When crises like these come up and the agencies that are responsible for responding to those, we have a voice here in washington that ensures that what they do how they react to those things is measured and its responsible. And so we are confident in their ability to be able to take on any. Crisis that we had, and any that may come down the road. The good news is most International Tourists coming from america. The mexicans and the canadians dont spend as much as the ones we want from overseas. No they dont. To get to the 100 million visitors, that is our goal. We have a path looking at 20 major markets around the world, plus two. We have established and merging markets. Canada and mexico are established markets. We have participation from merging markets, like china, india, brazil. These are markets whose visitors have to travel a longer distance. The ability to grow the emerging markets to where visitation to the United States is a dream is something that we are focussed on. Visitation in the United States changes from a dream to a pain in part of the body i will not say, when you get to the airport. P