argentina's central bank has raised its benchmark interest rate to forty percent the move is aimed at putting a lid on soaring inflation and helping the country's plummeting currency will depress is depreciation is partly due to investors moving their money away from the merging economies and into dollars this is the third time in a week that argentina central bank has pushed up its lending right. now they say that diamonds are girl's best friend but what about diamonds grown in the lab scientists in the u.k. have developed a technique to create real ones and in many cases they even purer than the natural gems but for investors that also has risky implications. plus is a diamond ask a scientist and they'll tell you it's carbon in its purest form. ask the advertising world and they'll say it's a girl's best friend but until recently most would have agreed that the precious jewel is something you have to dig deep to find now a lot in london is using new technology to turn that assumption on its head it's actually mount peace in nature i mean what with the fighting and doing it better th

helena: argentina's central bank has raised its benchmark, interest rate to 40%. move is aimed at putting a lid on soaring inflation to help the country's plummeting currency. the depreciation is partly due to investors moving their money away from emerging economies and into dollars. this is the third time in a week argentina's central bank has put up its lending rate. back to fail now and the birth --phil and the birthday of a remarkable thinker. phil: saturday is 200 years since the birth of perhaps the most missiles political figure -- divisive political figure or economic thinker, karl marx. he argued capitalism would only make the rich richer and the poor poorer. some view him as a visionary while others revile him for inspiring authoritarian communist regimes. our reporter hit the streets of berlin to find out what the people think. ♪ reporter: marx's ideas sparked revolutions are those originated in berlin, and they continue to resonate in this city. in 1836, the 18-year-old karl marx came to study at berlin's university. he started studying law but soon f

to try and curb the country's rapid inflation argentina central bank boosted key interest rates to forty percent but even that hasn't stopped investors from pulling out and channeling their money towards the u.s. instead. it is in the interest rates in the united states have gone up significantly and currencies are devaluing against the u.s. dollar. the dollar is putting immense pressure on other currencies including argentina's. the government hopes the emergency i.m.f. loan will stop the crisis and since then poverty in the country has sought. luxury s.u.v.s are pitched at the wealthy who want to project an image of being adventurous those for instance who have three hundred thousand euros spare for a my bath ultimate luxury is evening of room inside this one for a butler to take care of on the road refreshments when you're stuck in the traffic . then there's the bentley bent for two hundred ten thousand which makes even a short jaunt to your tax haven a few pleasure. enter rolls royce even the wildest ride in its new cohen is a smooth as silk looks real on the inside adventure on the

to try and curb the rapid inflation argentina central bank boosted key interest rates to forty percent but investors have been pulling out and diverting the money to the u.s. . the interest rates in the united states have gone up significantly and currencies a d. valuing against the u.s. dollar. the dollar is putting immense pressure on other currencies including argentina's from about. the government hopes the emergency credit will stop the crisis from worsening president mccree has been grappling with the country's high fiscal deficit since he took office in twenty fifteen he made just it cuts to social benefits and since then putty in the country has soared. in off the hurricane memory of passive the island over seven months ago and tens of thousands of people are still without power but despite that cryptic comment the investors are coming to the island i tax incentives and the block chain technology they use could be put to good use in rebuilding puerto rico. darkness on the streets of puerto rico island white blackouts are still part of everyday life even seven months after hurri

to try and curb the rapid inflation argentina's central bank boosted key interest rates to forty percent but investors have been pulling out and diverting the money to the us. the interest rates in the united states have gone up significantly and currency said evaluating against the us dollar. the dollar is putting immense pressure on other currencies including argentina's. the government hopes the emergency credit will stop the crisis from worsening president might create has been grappling with the country's high fiscal deficit since he took office in twenty fifteen he made just cuts to social benefits and since then poverty in the country has soared. if you've got your eye on unexpected commodities look to see if it's a key component of electric cars and with more and more people turning their backs on diesel and going green the price of lithium is rising. lithium is bolivia's white gold the prices doubled since last year and an estimated nine million tons of it ahead in the world's biggest salt flats the sellout the uni the ticks traction is a new korea's process it takes two months

to try to curb the rapid inflation, argentina's central bank boosted key interest rates to 40%. investors have been pulling out and i've hurting that money to the u.s. the interest rates in the united states have gone up significantly and currencies are devaluing against the u.s. dollar. the dollar is putting immense pressure on other currencies, including argentina's. the government hopes that it will stop the crisis from worsening. president macri and has been dealing with this goal deficit since he took office in 2015. he made cuts to benefits and since then, poverty in the country has soared. the british themepark company has just opened a new attraction at the legoland resort in windsor, and england. it is the largest in the global franchise and now features a lego sized interpretation of this month's royal wedding of britain's and tearing and -- prince harry and meghan markle. the miniature wedding is made up of almost 60,000 lego bricks and is now a permanent display at the sprawling themepark. back over to brent. a fully they make a model of us, brent. brent: or a lego w

argentina's central bank has raised interest rates to 40% to try to tackle inflation, and stop the country'sshing up the cost of imported goods, and adding to inflation which is running at 25%. the boss of air—france klm has announced that he is to resign. jean—marc janaillac made the decision after staff rejected a pay deal. just over 55% of workers voted against accepting a pay rise of 7% over four years. weeks of strikes has plunged the airline into turmoil and cost the company some 300 million euros north korea has reset its clocks by 30 minutes to match the time zone in south korea. pyongyang said it was the first practical step taken after last week's historic summit to speed up reunification. in 2015, north korea began operating in a time zone that was 30 minutes ahead of south korea and japan. the move was seen as a protest against the time zone that was first introduced by tokyo a century ago. dust storms whipped up by violent winds have destroyed homes and lives across a wide area of northern india. at least 125 people have been killed though some reports suggest the figure is high

to try and curb the rapid inflation argentina's central bank boosted key interest rates to forty percent but investors have been pulling out and diverting the money to the us that. the interest rates in the united states have gone up significantly and currencies that devaluing against the u.s. dollar. the dollar is putting immense pressure on other currencies including argentina is about. the government hopes the emergency credit will stop the crisis from wessling president machree has been grappling with the country's high fiscal deficit since he took office in twenty fifteen he made just it cuts to social benefits and since then poti in the country has soared. over till now with the latest in a tight election runoff how to thank you for talking about malaysia malaysians voting is what is likely to be one of the country's closest ever elections scandal hit prime minister najib razak is facing a resurgent opposition that by his former mentor country's former prime minister mahathir mohamad critics say the election will be neither free nor fair. few expected to see him back on the nationa

argentina's central bank has raised its benchmark interest rate to forty percent the move is a putting a lid on soaring inflation and helping the country's plummeting it currency the pesos depreciation is partly due to invest is moving their money away from emerging economies and into dollars this is the third time i think we'll think india has been the thank you yes box two hundred years since the birth of that's the most divisive political thinker and economists economic thinkers of modern history called box amongst his many theories he argued that capitalism would only make the rich richer and the poor poorer so that some view him as a visionary others revile him for inspiring wealth or a tear in communist regimes he will be reporting on your show off and hit the streets of berlin to find out what the people think. marx's ideas spot revolutions those ideas originated here in berlin and they continue to resonate in the city. in eight hundred thirty six the eighteen year old car marks came to study at berlin's university. he started studying law but soon found he was far more interest

to try and curb the rapid inflation argentina central bank boosted key interest rates to forty percent but investors have been pulling out and diverting their money to the us. that's. the interest rates in the united states have gone up significantly and currency is that the following against the u.s. dollar this is weapons dollar is putting immense pressure on other currencies including argentina it's a part of. the government hopes the emergency credit will stop the crisis from was singing president mccree has been grappling with the country's high fiscal deficit since he took office in twenty fifteen he made just cuts to social benefits and since then poti in the country has sort. of british the company made in entertainment has just opened a new attraction it's lego land resort in winds that england the winds a leg and is the longest in the global franchise and now features a neck or sized interpretation of this month's royal wedding of britain's prince harry and mechanism at the wheel when set casa which is just a few kilometers away now the miniature wedding is made up of waste s

dealing with soaring inflation while its currency that's the peso is dipping in value last week argentina central bank tried to stabilize the situation by increasing interest rates to forty percent the economic turmoil has sparked protests on the streets of the capital when osiris there are fears among some that the strict terms of an i.m.f. bailout could lead to another crisis many blame the i.m.f. says there are two measures for a financial collapse in the early two thousand years that left millions in poverty mark weiss province is the co-director of the center for economic and policy research in washington he says the argentinean government could have avoided going to the i.m.f. . they're not facing the kind of situation even that they were facing in that depression from one nine hundred ninety eight to two thousand and one which of course the i.m.f. is is quite a bit of fault for our times very much worried about going back to the i.m.f. you know poverty rose during those few years from eighteen percent to forty two percent of the population and that was a country that was you know not long befor

argentine is dealing with soaring inflation and its currency the peso is losing value last week argentina's central bank tried to stabilize the situation by increasing interest rates to forty percent. well they call it a number of turmoil has sparked protests on the streets of the capital want to set its tester's a worry that strict terms from an i.m.f. bailout could lead to another crisis many blame the i.m.f. susteren team measures for the financial collapse in the early two thousand that left millions in poverty. to the workers they will not stop on and all the storm we workers are not going to like congress to accept the interference of the international monetary fund the increase of tariffs or labor reform and we are going to fight until the end so that those infamous resolutions of the next week government to turn back the workers have a memory we know that policies like these lead us to hell and we will not allow it well earlier i spoke to mark weiss broad who's been whiting about argentina's economy for fifteen years he says the country's government could have avoided going to the i.m.f. . they'

is dealing with soaring inflation while its currency the peso is losing value last week argentina's central bank try to stabilize the situation by increasing interest rates to forty percent or the economic turmoil has sparked protests on the streets of the capital but in a xyron is there are fears among some that the strict terms of an i.m.f. bailout could lead to another crisis many blame the i.m.f. source territory measures from a financial collapse in the early two thousand but left millions in poverty. about their workers they will not stop nor the storm we workers they're not going to like congress to accept the interference of the international monetary fund the increase of tariffs or labor reform we are going to fight until the end so that those infamous resolutions of the macro government to turn back on their workers have a memory we know that. lead us to hell and we will not allow it. to stay with us story. is the co-director of the center for economic and policy research in washington he says argentina's government could have avoided going to the i.m.f. . they're not facing the kind o

central bank credibility? lisa mentioned she thinks argentina has regained central bank credibility.kish leader out today saying he wants lower rates even though inflation is climbing higher. this makes things difficult. do you look at pockets of e.m. where typically you think there might be value, and then you look at the situation as to whether it has credibility and then you back away? >> yeah, i mean, there's no doubt central bank credibility and central bank policy plays a key part in emerging markets. you look at brazil right now, lisa mentioned brazil. we also like it. you have a reform-minded central bank. the paths for rates have been lower. they've gotten to inflation that a it's the lowest that they witnessed for at least 20, 25 years. you have to evaluate not only the macro factors with respect to the economy, but central bank policy is crucial. dollar-denominated or local? >> depends where you are. i think the case for local currency is, from our standpoint right now, the most compelling because we think that the real yields when compared to real yields in developed mark

this is having a reaction in argentina most spectacularly but also in the entire emerging market economy they are now suffering catastrophe and so a either the central banks get together and drop interest rates once again or be as you've noted argentina is a place of adoption for a bit coin as are all these countries that are suffering from this as well and then as well and the u.s. dollar had gemini so not only is china iran and germany exiting the u.s. dollar by creating a competitor swift but then you have argentina venezuela and some of these other countries probably turkey soon running to bitcoin. so you have got and then russia's running to gold so you've got bitcoin and gold are becoming the go to assets while the us dollar hits the buffers and simply cannot support this ponzi scheme any longer on the individual level it makes sense to perhaps hold some big queen because there are a geo political insanity it's only going to get worse because it always happens throughout history whenever any empire collapses look at. europe from pre-war the war on through world war two that was essentially a part of it was due to the british empire collapsing and th

this is having a reaction in argentina most spectacularly but also in the entire emerging market economy they are now suffering catastrophe and so a either the central banks get together and drop interest rates once again sheria or be as you've noted argentina is a place of adoption for bitcoin as are all these countries that are suffering from this as well and then as well and the u.s. dollar had gemini so not only is china iran and germany exiting the u.s. dollar by creating a competitor swift but then you have argentina venezuela and some of these other countries probably turkey soon running to bitcoin. so you have got and then russia's running to gold so you've got bitcoin and gold are becoming the go to assets while the u.s. dollar hits the buffers and simply cannot support this ponzi scheme any longer on the individual level it makes sense to perhaps hold some bitcoin because there are a geo political insanity it's only going to get worse because it always happens throughout history whenever any empire collapses look at. europe from pre-war the war on through world war two that was essentially the part of it was due to the british empire collapsing

this is having a reaction in argentina most spectacularly but also in the entire emerging market economy they are now suffering catastrophe and so a either the central banks get together and drop interest rates once again sheria or be as you've noted argentina is a place of adoption for bitcoin as are all these countries that are suffering from this as well and then as well and the u.s. dollar had gemini so not only is china iran and germany exiting the u.s. dollar by creating a competitor swift but then you have argentina venezuela and some of these other countries probably turkey soon running to bitcoin. so you have got and then russia's running to gold so you've got bitcoin and gold are becoming the go to assets while the u.s. dollar hits the buffers and simply cannot support this ponzi scheme any longer on the individual level it makes sense to perhaps hold some bitcoin because there are a geo political insanity it's only going to get worse because it always happens throughout history whenever any empire collapses look at. europe from pre-war the war won through world war two that was essentially the part of it was due to the british empire collapsing

to try and curb the rapid inflation argentina central bank boosted key interest rates to forty percent but investors have been pulling out diverting their money to the u.s. but. the interest rates in the united states have gone up significantly and currencies are devaluing against the u.s. dollar. the dollar is putting immense pressure on other currencies including argentina's. the government hopes the emergency credit will stop the crisis from worsening president mccree has been grappling with the country's high fiscal deficit since he took office in twenty fifteen he made just it cuts to social benefits and since then poverty in the country has soared. business news coming out first to sarah palin i thank you so much and we're going to take a quick check now of some other news that has been coming in around the world because we have for example a series of large explosions which have hit the afghan capital kabul at least five people reportedly killed and several injured when a suicide bombers targeted two police stations the death toll is likely to climb and authorities say that the

to try and curb the rapid inflation argentina's central bank boosted key interest rates to forty percent but investors have been pulling out and diverting their money to the u.s. but. the interest rates in the united states have gone up significantly and currencies are devaluing against the u.s. dollar. the dollar is putting immense pressure on other currencies including argentina is about. the government hopes the emergency credit will stop the crisis from worsening president mccree has been grappling with the country's high fiscal deficit since he took office in twenty fifteen he made just it cuts to social benefits and since then poverty in the country has soared. british theme park company met in an statement says just opened a new attraction at its legoland resort in windsor england the wins a lego land is the largest in the global franchise and now features a lego sized interpretation of this month's royal wedding britain's prince harry to make an markel the real wins a costal just a few kilometers away now the miniature wedding is made up of almost sixty thousand lego bricks and i

turning to argentina, the central bank has been fighting a run on the national currency. brian: the measures appear to have had some effect as the argentine peso has stabilized momentarily. a run on the currency saw the peso hit a historic low against the dollar. the central bank raised the key interest rate up to 40% and reduced dollar reserve requirements. the company has sold off $8 billion from its currency reserve, and pushed others to do likewise. the most severe turbulence in the currency market since 2015. the government has forced banks to sell approximately $1.8 billion to the market, and this has calmed momentarily the exchange rate. let's get a check on the markets. how are they looking? brian: mixed at midday. travel and leisure stocks making some games. energy concerns lose ground. london's ftse 100 managing to stay positive. dax each offac and by 0.6%. oil is looming large on the minds of investors as donald trump gets set to announce whether the u.s. will stay in the iran nuclear deal. prices falling a bit from three-year highs yesterday. the beauty i gett

this is having a reaction in argentina most spectacularly but also in the entire emerging market economy they are now suffering catastrophe and so a either the central banks get together and drop interest rates once again sheria or b. as you've noted argentina is a place of adoption for bitcoin as are all these countries that are suffering from this as well and then as well and the u.s. dollar had gemini so not only is china iran and germany exiting the u.s. dollar by creating a competitor swift but then you have argentina venezuela and some of these other countries probably turkey soon running to bitcoin. so you have got and then russia's running to gold so you've got bitcoin and gold are becoming the go to assets while the us dollar hits the buffers and simply cannot support this ponzi scheme any longer on the individual level it makes sense to perhaps hold some big queen because there are geo political insanity it's only going to get worse because it always happens throughout history whenever any empire collapses look at. europe from pre-war the war on through world war two that was essentially a part of it was due to the british empire collapsing and

is dealing with soaring inflation while its currency the peso is losing value last week argentina's central bank tried to stabilize the situation by increasing interest rates to forty percent the economic turmoil sparked protests on the streets of the capital want to save its protestors awarded a bailout from the i.m.f. could lead to another crisis many blame the i.m.f. a stereotype measures for the financial collapse in the early to thousands left millions from the middle class in poverty. to the workers for me they will not stop us nor the storm we work as they're not going to like congress to accept the interference of the international monetary fund the increase of tariffs or labor reform and we are going to fight until the end so that those infamous resolutions of the next week government to turn back the workers have a memory we know that policies like these lead us to hell and we will not allow it if. it's been writing about argentina's economy for fifteen years mes co director of the center for economic and policy research in washington d.c. he's joining us live from there good to have y

argentina is dealing with soaring inflation was its currency the peso is losing value last week argentina's central bank tried to stabilize the situation by increasing interest rates to forty percent well the economic turmoil has sparked protests on the streets of the capital want to say protesters are worried that strict terms from one i.m.f. bailout could lead to another crisis many blame the i.m.f. systemically measures for the financial collapse in the early two thousand that left millions in poverty. to the workers they will not stop nor the storm we work as the not going to like congress to accept the interference of the international monetary fund the increase of tariffs or labor reform and we are going to fight until the end so that those infamous resolutions of the macro government to turn back the workers have a memory we know that policies like these lead us to hell and we will not allow it well earlier i spoke to mark weisbrot who's been writing about argentina's economy for fifteen years he says the country's government could have avoided going to the i.m.f. . they're not facing the kind of

taylor: argentina's central bank has raised interest rates three times in 10 days to 40%. on air and on tictoc, powered by more than 2700 journalists and analysts in more than 120 countries. i'm taylor riggs. this is bloomberg. tom: thanks so much. stability in the markets right now. futures up 12, dow futures up 132, euro is weaker. 14.29, crude elevated. yen weakening since about 10:00 a.m. yesterday. there's the argentinian peso. francine: we are global, which is why we are looking at the turkish lira. it is a chart that matters for me today. overall of net european stocks, they are pretty much up and down. , butld collect zigzagging actually they are jumping around. crude rallying after trump's decision to walk away from the nuclear deal. looking at the 10 year treasury yield topping 3% ahead of the crucial bond auction. creditry quickly, three rated securities, euro trade weighted, normalized back to the ascension of erdogan. this is the curvature of an ever , ther trade weighted lira acceleration of pain in turkey's tangible. francine: this is the chart that matters

argentina. quite a dramatic set of events in the last few days as they ended up going up to 40% interest rates from the central bankn now justice carrigan, joining us from dubai, although based for a long time in latin america. give us a sense of how we got to the situation in argentina. very difficult to point the finger directly at argentina for what is going on. as we've been hearing, this has thea lot to do with what u.s. treasuries have been doing and the general perception about where u.s. interest rates are headed and what that means for global growth. is coming to some extent, an innocent victim of this. by the same token, it has been slow in bringing for some of the acrirms that the m administration pledged to do, and those chickens are coming home to roost as we saw this extreme their episode last week with the central bank raising rates by almost 700 basis points in one go. doubt as i understand, no that the strengthening dollar put the issue to a number of emerging markets. wasn't there a substantial policy missteps in argentina when the reports are that central banks try to go along, and that people re

argentina. the argentinian central bank raising rates twice to try to stem the flow of currency out of their marketas been the plight of the peso in the last week or so? this is the mood we have seen on the right-hand side. thee two red circles are two hikes. , what willar gains that do to the emerging-market? it isis not just latin, across all emerging markets. the biggest change in the emerging-market is the u.s. libor. have an impactto on a lot of the emerging markets. also, let us not forget that emerging markets are very much sentiment driven and flow driven. last fewseen in the weeks, a strong rebound in the alsodollar and you have seeing a big selloff in the emerging-market. thear as argentina goes, next step will probably be for some fiscal austerity. a lot of people i speak to are still positive on emerging markets. what do you see that they do not? we are positive. aret of those countries working on their structural imbalances. tactically, in the coming weeks and months, we are more negative because we see a rebound in the u.s. dollar and a lot of uncertainty around trade for an geopoliti

in countries where the governments have tried to interfere with central bank officials, and let me bring one to the table, argentina. problems that argentina has faced in the last months -- right now, things are stable -- is because the central bank, the central bank was forced to change its inflation target by the government. that obviously affected the market. i do not think that was necessarily a populist movement by the government, but at the same time, it really generated major problems for argentina. i think that to respect the autonomy of the central bank is really important. >> maybe i can add a word in the case of the eurozone, which is a particular set that our is six boardncil members and 19 governors. governors have a dual role. they are voting members of the council and have to vote in the interest of the eurozone. they are also heads of the natural central banks -- national central banks and are part of the discussion, as they should be. there is always the tension of political pressure. that is why the treaty has given us -- in terms of entitlement. difficult in that and will reign for the reasons th

argentina. jonathan: there is an idiosyncratic reason, where there is some string that aligns these two things, it is central banklity. there almost is none. you see that in turkey and in argentina. is that the similarity? has a prettyey loose monetary situation and fiscal condition that isn't construct of. -- constructive. both of those things -- you are going to get a little old-fashioned e.m. central bank and fiscal credibility issues converging at the same time. >> more broadly, the story for e.m. the last year and half has been to get longer yen and pay -- play the currency risk because the dollar will get weaker. the dollar move has made people more uncomfortable than they were relative to a month ago. is there a reason to be uncomfortable in e.m. longs? priya: the dollar is in structural decline mode. hase is a diversion that come back. u.s. data has been ok. hasrest of the world decelerated and everyone came into the year short dollar. adjust, why the markets but very soon, the dollar will go back to its secular decline, so e.m. should be ok barring the idiosyncratic issues. consistent the most features o

argentina now? >> it is a good thing. the central bank faced challenges the macri administration has been seeing a gradual approach that granted access to external financing. with a stronger dollar, that is no longer assurassured. >> isn't it a fnk shunction of credit line they are getting they were hoping to get a flexible credit line, but many analysts are thinking that's unlikely >> macri and his team were not specific about what kind of credit line they were looking for. the terms don't seem suitable for argentina at the current time the important thing is the access to resources. availability and financing is the key. he'll pay a high political cost for this domestically. i think the fact they're turning to this and sticking with the same policy of fiscal adjustment and orthodox policies is a good step >> do you think the central bank will succeed at supporting the currency here? >> this provides help. they still have fairly significant levels of reserves that they can deploy it's expensive to debt against the peso at these levels >>

butencies have taken a hit, central banks cannot let the currency rolloff due to inflation. vulnerable countries are the likes of turkey, argentinaca, which have the lowest amount of foreign exchange reserves. central banks were preparing for the dollar appreciation. --y were prepared for hire higher inflation rates and oil prices. this, coupled with an increase in the dollar. this is a big challenge for central banks. data coming out later on today from the u.s. jay powell talked about the fact the market is reasonably aligned four.he dots, close to are the data going to push the four, and what is the dollar story going forward? >> i think the data will push the price to four. with the underlying inflationary trend, inflation is picking up. pickinglation has been up and the underlying strength in the core inflation data isn't necessarily as strong. that will be the big test. the relationship of the imac to the dollar, -- imap to the dollar, i struggle to see the fed is going to hike three or four times, how that would happen with the rest of the world also hiking. it will be tough for the united states to grow while the rest of

. >>> michelle caruso-cabrera has breaking news on argentina, michelle, what's going on? >> the central bankmaintaining the benchmark interest rate at 40% that's correct, 40%. argentina is emblematic of what happened to the weakest emerging markets as we've seen a spike in the dollar as well as a rise in u.s. interest rates. money is leaving the countries like argentina with large current account deficits so they forced to raise interest rates dramatically to protect the currency it's not helping as well that the new president did not cut spending, in fact, the deficit as a percentage to gdp is up under him compared to his predecessor. the peso weakened dramaticallicaldramatically in six months, and these efforts are to try to stop that, and why they went to the imf for precautionary line of credit back to you. >> a sad turn of events. he came into the office with opportunities to shake things up unlike those before him and had a mandate from the population to do so, and now i wonder, is time quickly running out? he did not make changes fast enough >> absolutely the question right now becaus

whether or not argentina has stabilize of these levels, i don't know. the central banks regaining credibility and they have taken the monetary rate up to 40% and they are working with the imf and try to get it in order. think they are making the right steps. there was a tremendous amount of influence and that had to be washed out for we can stabilize. jonathan: would you consider buying a century bond here? ms. hornby: no. buy aan: would you century bond from argentina now they repriced? mr. buchanan: is relative value. right now, now we are not buying them. we are buying local currency bonds. yield and you get paid for the risk. recognize that there is volatility there. i think there's a price for most assets and right there with a century bond we haven't had any recently. i adequately , lastsated for the risk year we weren't, are we now? mr. rusnak: emerging-market debt is backed up to 360, 370 spreads. when you come back down and you're looking at yields roughly at the 6.5% range which you haven't seen since the 16. we think overall there are good areas of opportunit

argentina is being slapped around. alignss some string that these two things, central-bank credibility.here almost is none for their ability to contain inflation. is that the similarity? >> turkey has a loose monetary situation and a fiscal condition that is not constructive. things, you will have a little old-fashioned em central bank and fiscal credibility issues converging. >> more broadly for e.m., the story of the last year has been not,t local currency, why the dollar will keep getting weaker. this has made people more uncomfortable than they were relative to a month ago. is there reason to be uncomfortable? >> our view is that the dollar is declining more. we see a day versions rate. u.s. data has been ok. the rest of the world has cameerated and everybody in. why the market adjusts, we think very soon the dollar will go back to declines. e.m. should be ok. consistenthe most features of late cycle pre-recession u.s. economy is a rally in the u.s. dollar that catches everyone by surprise. i am not saying that we are seeing the start of that but that it be one more example of these

the central bank monetary policy lose at the moment. and argentina- rate hike of 40%. turkey is in the same situation. monetary policy is to lose. there is a repeated overshoot of inflation over the target. the central bank should raise rates to reestablish more credibility in the market. at that point in time, if the government questions the independence of the central bank, or their ability to act, and actually puts on the table in move that goes in the opposite direction, namely characterizing rates as already too high, that is an insufficiency -- inconsistency in macro markets. i would think that in those cases, it was an inconsistency of domestic policies that caused the markets reaction. the only way to do with the bet to correct the inconsistency. what turkey clearly needs, i would not call it orthodox monetary policy. it would need appropriate monetary policy. that has been a late cycle credit boom. it is not a general emerging-market weakness we see here. is look at the south african currency, the russian ruble, and a general dollar strength

argentina is being slapped around. in turkey as well. where there is some kind of string that aligns these two things, central-bank credibility. almost is none among investors about their ability to really contain inflation. you can see that in turkey and in argentina. is that the similarity? >> turkey has got a pretty loose monetary situation, and the fiscal condition that it's really not very constructive for them. i think, you know, both of those things, yeah, you will get a little bit of old-fashioned em central bank, and em fiscal credibility issues converging at the same time. jonathan: more broadly for em, the story over the last year has been to get local currency, why not, the dollar will keep getting weaker. the dollar move over the last couple of weeks has made people a lot more uncomfortable than they were relative to a month ago. is there reason to be uncomfortable? dollarview is that the is declining more. what we are seeing right now, there is -- the divergence rate has come back. u.s. data has been ok. the rest of the world has decelerated and everybody came in to the short dollar. we think very soon the dollar