Take a look at the map, there is a sea of green. Real estate is the smallest winner. Of only. 5 . Industrials on the rear. But telecoms and health care all are up and there is optimism about apple and of the new phone. , you can seen weib that the doubt is showing all 30 dow is a showing all 30 stocks up on the day. And the nasdaq, as well. Of biggest gains, the least the three major indexes. Joe a quick look at the Government Bond market, quieter today. We saw a decline for the twoyear, and an increase for the 10 year that was hovering around the seven level for a wild. Not much action. And take a look at the five and 30 spread, 11 Straight Days of widening on this. We talked about yesterday. This is the longest widening street sense august 2012 streak since august 2012. Keep an eye on this. Scarlet taking a look at currencies, the dollar affected by the retail sales. I want to highlight the pound because it fell after all nine members of the committee voted to keep those rate and quantitative easing unchanged. And there could be another cut this year even though it is not that. Are positive on the session. Looking at cable, which is the sterling versus the dollar over a threemonth period it is in line with where it was in late july. Joe finally lets take a look at oil, that has been volatile lately by oil standards. Gaining 0. 6 . Much ending without change, below 44 a barrel. Scarlet and we have some breaking news. Adjusted earnings at . 55, missing the estimate of . 58, so that is a three cent miss for oracle. Dollars inlions of revenue. And they were looking for a . 7 billion, so that is a mess a miss. Million in a 969 business and they say they added new Software Services for customers in the first quarter. Eventually, they will come through to regular revenue. We will keep an eye on this in the afterhours, but in the meantime we have more coverage. Joe i want to get the daybreak asia anchor betty liu who has an exclusive interview with stephen schwarzman. Betty great to see you. Great to see you. Betty you just got back from china, you launched the Scholars Program with the university. And i know that you spent quite a few days in china. You are at the g20. , what was tell me, what was your impression of china . Betty stephen china is always changing. Things seemed to be stable. At the currency is south of the range. The economy is still being reported in the 6 growth area and there is a sense of at the world thought about china in the first mother to of this year in the first in the first mother two of this year incorrectly. Everything seemed to be going wrong financially, whether it markets,ncy stock economy, but that moves behind them. Now it is ok. The economy is moving, doing better than people thought. Itconsumerbased and is consumerbased that they are trying to move to. It seems to be doing ok. Wages are up, hiring is up. Ok, wee is a sense that are at another level. We are at a satisfactory level. Lets see how we can build. Betty does it feel fragile or solid . Stephen more solid than it did. I do not know why. Betty you met with the Deputy Governor of the peoples bank of china when you were there. What did he say to you . Did he give you confidence about the central bank . Stephen i cannot share with you what people say to me sometimes. [laughter] stephen i think there was a sense that was somewhat pervasive that there is not a risk in the system there is a risk in the system that people were coping with. Betty the chinese currency really signals that everything you said, the economy is stabilizing, things seem like they are on the up and that is what we see with the exchange rate. Do you expect that to continue . Thaten i do not think anyone is looking for the currency to be depreciated. It where it is, slightly less, i am not a currency manager but i think there is a sense that things are in a good zone. Betty how did the g20 go . How do you think the president did . Stephen i think the president of china made a good impression. He made a speech for 50 minutes and he was confident, he had a vision of an inclusive asia. It was very much tech focused, which is a big change. 34 years ago, the major driver betty that is surprising. Be more china seems to of an innovative economy, so it was very interesting. It was a powerful vision and also he was laying out a peaceful vision of inclusiveness. And also within his own country. Because they still have a significant number of very poor people, somewhere around 75 million. How it wased about the countrys obligation to take care of these people and move poverty as aut of responsibility. So it was an interesting speech and a very selfconfident speech. And so he is growing into his job for sure. And to an outsider i think everybody was nodding that was a good sendoff, the start of the big meetings. Betty you used the word confident. Do you think it was not as confident before . Stephen i think everybody that starts a new job does not know it as well. Until they do it for a few years. There is a firm vision. He started with the china dream. Very much like the american dream. That was his first speech, i want my people to be wealthier, i want them to have Better Health and have them live in a better place. They are working on that. And to the Real Estate Market has done well, so people have more of a sense of wellbeing from a year ago. Met president s c hi, and the government has supported the Scholars Program. He wrote a letter for it, you had the opening of the program and device for me or their vice premier there. So how did it go . Is in their program interest. When i started the program, i thought it was in the worlds interest. I certainly thought it was in. He interest of the west china has adopted this, they realize it is an important place brightest can and come to china and learn about china. You know, for 200 years it was not a good bunch of centuries for china, for a culture that is 5500 years old it dominated the gdp. With 25 of global by 1976 they were down to about 2 of global gdp. So it has had a huge rebound. And i think part of the program is that it is one of the few times that the best and brightest have come to china, over a long period of time, with no desire to exploit it or have it just be a market. It is really to learn from the chinese. Betty learn to innovate. Stephen yes. So this is very much valued in china. Betty are you worried that that will become my do not want to say broken, but it will be in jeopardy given what is going on in the politics here and at the rhetoric we have seen out of both candidates at are you worried about that . Stephen i am not surprised by it. One reason why i wanted to start this is i could sense of the populism in the u. S. Certainly and is spreading to other countries after the financial crisis. It is only a matter of time before the people who are unhappy in their own countries start looking for someone to be angry at. And i thought that china would be the number one candidate because they are the second betty for that kind of rhetoric. Stephen the largest country population wise, the wealth transferred there. So i thought it was a high probability that there would be a targeting of china. Betty do you think it will get worse . Cannot tell. It would not surprise me. Because as you have challenged countries like china and challenging the incumbent global power, the United States, that the professor at harvard read about this scenario and wrote about this scenario and 12 of the 16 times you have had a similar challenges, you have had wars between the challengers and incumbents. So i look at that statistic. That 75 probability of outcome. So we have to do something to get in the way of those types of forces you are describing. Betty outside of politics, going back to stability in china and throughout the region, some people say a wildcard is what the fed does here. In terms of, will they hike too early, too late perhaps. We have heard different. Iewpoints in the last few days do you think that is a risk factor at all . Do you think they should move . Stephen a risk to the u. S. Economy or the Global Economy . Betty the Global Economy. Stephen i think the fed will increase rates. This is been a topic of numbing boredom to me. [laughter] betty for years. Stephen one small increase in three years. Thancupies more headspace almost anything i have heard about. Betty you try not to think about it . Stephen not much, because i know that the u. S. Economy is not particularly strong. And Central Banks who are aware that there is no fiscal cooperation in the United States for years they are the only protocol, the only people that can do anything. So they know if they must play misplay their hand and put the u. S. In a recession, this could be a disastrous outcome for them. So i always knew that. You know the people, they are not politically unastute. It is on them. So their desire to be aggressive and potentially have a bad outcome is very low, so that is a reason that all of these people keep saying the fed could increase Interest Rates. We are wrong. We will have a new president and we are going to have a new congress and there may be some room to do some things fiscally to stimulate the economy. And if there are, the fed will have more comfort to raise rates. Anyway it goes, i think the probability that the fed does anything aggressive 25 basis points, 50 basis points it is , but it affect markets will not affect the u. S. Economy. So i look at it in a very with some sense of perspective and realize that markets are volatile and a lot of people make markets, say that they react to the same thing at the same moment. But you should not have much in the way of longterm damage. Betty the markets do not equal the economy, so what you see with the market does not necessarily signal what is happening with the economy. Will you stay with me for a little bit more . We will take a quick break. Stephen schwarzman. We will be right back. betty this is whatd you miss . We are back with stephen schwarzman. Lets talk about politics. When you are in china, did people ask you about donald trump or clinton . Stephen probably eight months ago. Almost nobody mentioned it on this trip. Betty really . Quite curious was about that. One reason that they do not mention it is because they have had a lot of dealings with Hillary Clinton. She was secretary of state. Betty they know her. Stephen they know her. With donald, i think that they sort of,n the pile of this is an American Election and you can say anything. And they are sophisticated and they will articulate, we know how American Elections work. People say what they need to and we do not take that seriously because there is governing and there is running, so i was really amazed that people did as they as animated were, and as americans are. Betty do you think they are right in their interpretation . Stephen time will tell. Betty what did you make of trumps economic plan . Stephen i did not hear it. I do not hear what he had to say. Betty he said he would create 5 million jobs over the next decade. He instituted different tax planets, reformed his tax where he talked about three different tax breaks. A 3. 5 Economic Growth over the next 10 years. I mean, does any of that sound achievable . Stephen all of that sounds wonderful. If you could do that. Andeconomy is complicated you know, there are other parts. His plan, i do not know how immigration really fits in that. Really removing a large number of people, that have to adversely affect the commie. I believe that reducing the number of packets brackets to as few as possible and getting rid of virtually all tax preferences in favor of very low rates, that is the right way to go. Betty you are in favor of a flat tax, right . Stephen as far as one bracket, that is not fair for everybody. But fewer number of with a large number of brackets, use you stay where you are. But simplicity is a good thing. It makes sense to people and it makes fairness sort of transparent and so forth. So that is a good thing. And countries that have adopted that type of policy have done well over time. So i think that is a fundamentally a good idea. Persons plan speaks to that. Betty that framework is the right plan. Stephen i also think that it is really important to do something burden onregulatory the u. S. Economy. I think that feeds into productivity as well, because is likery structure now a major tax on Economic Growth. Without Economic Growth than the regular people in america, they will suffer. Betty yes. So regardless of all of that, taking all of that into consideration, who are you going to vote for . Stephen i am watching this closely, because it has gone from just throwing mud at each iser to actually it venturing into policy. Betty are you undecided . Stephen i am right now. Betty if you had to vote for someone today, who would you vote for . Stephen fortunately i do not have to vote today. I think if there is going to be changes that occur over the next seven weeks as the candidates realize that throwing mud at each other is boring that was an interesting show. Betty that is why we are in a and neck. Neck and neck. Stephen i think people are offng either, i am turned of voting, or i will vote for one i do not want to. So make pretend you are one of those candidates, you would not be doing this exact same thing. Betty if you did not hear what you needed to, would you abstain from voting . Stephen i have not figured out what i will do. I have a sense that things will clarify and usually i do not make decisions in business or any other time until i see the pattern really forming. And we have not gotten there yet and there is going to be change, i think, that is coming up. Betty thank you so much. Stephen schwarzman, the blackstone ceo. Matt, staying on politics, Hillary Clinton is having a rally. Matt she is talking to the press after a rally in north carolina. Lets take a listen. I said it from the beginning, whether i was up or down, i think those are the kinds of president ial elections we have in america at this point in our history. I am proud of the campaign that we have put together and i feel like we are in a strong position going into the last weeks. What matters is who registers to vote and who is motivated to turn out to vote and i will keep doing everything i can to deliver my message about what is at stake in the election. And my campaign is going to continue to work hard every day to turn out to every voter we can. And that is our goal and our strategy. Secretary clinton, the agreement that john kerry negotiated with the syrian violence and reports out of today indicate that assistance is having trouble reaching the city. Was wondering if you think the nextment and what the steps of the u. S. Should be . Hillary clinton this has been a terrible conflict and to the humanitarian cost is incalculable. I applauded secretary kerry and his persistent efforts to try to reach some kind of agreement with the russians in order to nonhostilityof to get assistance into aleppo and other places in syria. I think whether or not this works is up to the russians. It is up to whether or not Vladimir Putin decides it is time to do with the russians can do to bring this conflict into a be thewhere there can beginning of political discussions. They hoped a hoped for protective zone of people who are under Relentless Assault from the air. And a commitment for going after the terrorist groups that pose a threat to everyone. So i am going to watch this itsely, but at the end of it will be determined by whether or not the russians decided it is ittheir interest decide is in their interest to pursue this agreement. It appeared that your running mate may not of been aware of your pneumonia on friday. I am wondering when you informed him . And if you did not inform him on friday, i was wondering how it would be in the white house during your administration . Hillary clinton my senior staff new and knew and information was provided to a number of people. This was an ailment that many people just power through and that is what i thought i would do as well. I do not want to stop, i do not want to quit campaigning and i do not want to miss the 9 11 memorial. The senator as a senator at that time i consider it a sacred moment. I wanted to be there. It did not work out. I got the antibiotics and the rest i needed and we went on from there. [indiscernible] of tim kaine, how often you talk india relationship, whether and your relationship, whether you would be a real partnership. Objectives, where jeopardize byhey you not explaining Hillary Clinton look [indiscernible] Hillary Clinton i communicated with him and i spoke with him last night and he has been a great partner and he will be a great vice president. [indiscernible] Hillary Clinton we communicated , but i am not going to go into her personal conversations and i feel very comfortable and confident about our relationship. And i really look forward to working with him closely. [inaudible] rough can you be more specific about why those are the way you are referring to. And can you talk about your illness over the weekend . Hillary clinton my campaign has a said they could have been faster. I agree with that. I expect them to be as focused and quick as possible. But, i have to say from my i thought i was going to be fine and i thought there was not really any reason to make a big fuss about it. So i should have taken time off earlier, i did not. Now i have and i am back on the campaign trail. Meeting with leaders from other countries, neither they or their citizens can vote in the United States, so why are you taking time off of the campaign trail, what can it get you . Hillary clinton i think it is important to be constantly to,hing out, listening learning from leaders. I was pleased to find the time to meet with several of them, which i intend to do to hear firsthand their perspective about what they see happening in the world today, answering their questions from what i think is happening, whether it is in syria or anywhere else. There is a lot going on in the world and i have a longstanding set of relationships that go back not only to the secretary tostate and senator, but first lady. And i think it is important to tend to those relationships and i will not be able to have as many meetings because of