tom: christine lagarde says the u.s. is the central banker of the world. janet yellen is the central banker of the world right now? robert: i was it is a bit of an overstatement. but psychologically the u.s. is the hope of the world. it has the finest new technology ahead of this fracking business. things are happening here and it's looking all right. tom: bob schiller and charles ellis with us. olivia: we should have asked if janet yellen will lose her patience. ♪ tom: good morning, everyone. it is fed day at 2 p.m. this afternoon. mr. crumpton will make you smarter. peter cook will be there as well. here is brendan greeley. brendan: this morning, i read a columnist based in tokyo who wrote that the doj should be based on wages, not inflation. robert shiller, this is what is supposed to happen when you ease that it creates wage inflation. it's been fascinating. in japan, he saw this coming a month ago and he talked to industrials, saying to be prepared to give wage hikes and then they did not do it. is there any kind of what that you can hold over a compa

the central bank governor put the case before christine lagarde. ristine has got more from beijing. he wasn't scheduled to talk about this, was he? christine: he was supposed to talk about monetary policy and the new normal, but he successfully steered the discussion to what he wanted to talk about. he wants the imf to include the one, which makes it a reserve currency. currently it has four currencies. remember, back in 2010 the imf said the one was not a good candidate because it was not usable. he says china plans to make the one convertible. there is a reason this fits into china's plan. she said the yuan completely belongs, but the timing is an issue. it looks like there is a possibility we may see the you want included without china opening its capital account, if not this year perhaps soon. >> why now? china is very busy performing its economy and seeing growth slowdown. it seems out of kilter. >> it does actually fit in with china. a lot of governments hold reserve currencies over a longer time frame, so it could stabilize the yuan at a time

here with us now managing director of the international monetary fund christine lagarde. equality laws. you say equality laws are good for economies. explain. >> from a macroeconomy point of view look at the global economy of any country, if you actually improve the state of play, if you make the job market accessible to women as it is actionax accessible to men you reduce the gender gap almost by 5 percentage points a big difference and can help growth it can, in my view reinforce the social fabric of societies as well gts. >> so it's not just the right thing, it goes beyond that? >> it makes economicsmacropoint of view. if you look at microview, it's demonstrated over and over companies with significant number of women in the executive group or on their board actually generate much higher profits than companies that don't. so you know it's now demonstrated, and i don't know why it's not happening more often. it should. >> there are a lot of company, a lot of countries, that still hold women back. >> yes. >> and on many different levels. >> yes. >> access to capital. get

christine lagarde outlined the plan for the disbursement.is a much-needed lifeline for the economy. it is struggling because of the conflict in the eastern part of the country. let's get to moscow. how badly does ukraine need this money? tony: the answer is very badly. it is limping along in the dictation of receiving help from the imf for some time. the government itself has said that the economy could shrink as much as 11.9% this year. the reason the local currency is taking a puddling -- pummeling and hitting an all-time low and reserves are down to below $6 billion. they very badly need the money. they say they will use the funds to support an economic reform program that will help turn the economy around. as you say, this is taking place against the background of conflict in eastern ukraine which ukraine's president said 20% of the productivity economy is struggling. help is viewed as a lifeline. mark: is this paving the way for much bigger aid package? >> that is the expectation. the imf has hopes with other contributions and with nego

you mentioned christine lagarde earlier. as well as new normal with the ford ceo.mean for industries though? ramy: for industries, there will be an almost across the board fall into growth. this will go to barclays -- which you shared with me yesterday. [laughter] so, hopper is going to fall. aluminum is going to fall. wheat is going to fall. this is in terms of growth. but on the flipside gas volumes, they are going to rise 75%. alix: interesting. i love when people read the barclays report. "street smart" will be right back. stay with us. ♪ alix: this is "street smart." i am alix steel. another blast of snow on the east coast. you are looking at a live shot outside of our offices in new york city. forecasters calling for six inches of snow in the northeast and mid-atlantic states. boston has seen a record 108.6 inches of snow and could have another inch or more. a suit over the value of a rare pink diamond. the family is saying that christie's failed to investigate the rightful ownership of the prince diamond before auctioning it off in 2013. christie's blames th

christine lagarde said the authorities have showed a commitment to reform. the economy has been devastated because of the conflict with pro-russian rebels. there is more money for wall street bonuses, rising 3% according to estimates from the comptroller. the average bond $172,000. the banking industry added jobs the first time since 2011 even as revenue fell. a major outage hits apple's itunes today, starting about 2:00 a.m. in cupertino, california. users were unable to download apps or log into their accounts. the cause is unknown. apple shut the store down on monday during its smart watch event. now to the lead, can radio thrive in the digital age? or does streaming radio mean the end of terrestrial radio? howard stern rocked the world in 2004 when he bolted from fm to sirius but his contract is up at the end of the year and he has not committed to renewing. sirius and stern and the future of radio are featured in this week's bloomberg businessweek. felix, let me start with you. your piece is terrific. run to the newsstand. get a copy. check it out onlin

then you have christine lagarde. we have seen john kerry, and the secretary summoned. he had the great, the good mentioned those from the region pledging huge amounts of money to the bolstering of the egyptian economy at the moment. that surely will have a favourable impact upon him in the short term if not in the longer term. >> definitely. then again. all these investments are supposed to be in egypt. egypt lacks a lot of things. to translate all these promises into realities on the ground. and first and fore most security stability, and the stability in real political lives, politics have been killed in egypt during the last two years. i believe secretary - u.s. secretary of state when he said yesterday that economic policies are political policies and vice versa. is this happening in egypt. i doubt it. >> a quick word a new capital for egypt. >> this is important. a lot of people have been calling to setting up a new capital. but a new capital should be set up - be set up in at least 200km away from the old capital. according to experts. the new capital is just abo

christine lagarde says the minsk cease-fire is largely holding for now.he package is a four-year arrangement. that's a look at the top stories we are following on this wednesday. coming up, the university of kentucky's wildcats are having a great season and that's making some people very nervous. we will tell you why, next. ♪ mark: welcome back. the university of kentucky's basketball team has been undefeated in the regular season. this is causing some bookies to break into a sweat. we've been following this story and our reporter joins us live. >> a lot of bookmakers put out odds at the beginning of the season for kentucky to go undefeated throughout the entire season. the odds were long because it didn't seem that plausible. they weren't particularly great even know they did get into the ncaa finals. but there was a lot of action and a got that down to 20 21 as they kept winning and william hill, a sports book in las vegas is looking at a high six figures of exposure just on that that alone. certainly, there's interest in vegas for kentucky to finally l

now the head of the imf international monetary fund christine lagarde, has pledged cooperation with the new lender. she's just wrapped a four-day visit to china. we'll have more the rest of the day on twitter. follow me on twitter. you can get me @bbcaaron. more business report coming up in about 17 minutes. i'll see you then. thanks kasia. >> aaron, good to see you. thank you very much. aaron coming back very shortly. >>> now turning to other news, it is a grim statistic. in the years since the first death from the ebola outbreak in west africa it was confirmed that more than 10,000 people have been killed by the disease. well the charity medecins sans frontieres says there is no slowing. it blames a global coalition of inaction at the start of the outbreak for making things worse. our global health correspondent reports. >> reporter: slowly and very cautiously, life is returning to some degree of normality. schools have reopened in liberia after six months of children being told to stay away. but at the height of the outbreak guinea liberia, and sierra leone were under siege. our bbc

now the head of the international monetary fund the imf, miss christine lagarde, she has pledged cooperation with the lender. she has just wrapped a four-day visit to china. lots going on follow me on twitter, you can get me me @bbcaaron. that is it for the business but "gmt" coming up just over an hour's time. >>> now let's bring you up to date with some of the day's other news. some election news for you. the french far right has taken just under a quarter of the vote in local elections. they were beaten into second place by conservatives, led by nicolas sarkozy. the united states says it won't participate later today when the humane rights debates in the palestinian territory. washington normally defends israel on such occasions. the u.s. has given no explanation for the planned absence this time, but recently signaled it's reassessing its relations with israel. >>> the republican senator of texas, ted cruz has become the first major candidate to announce he'll stand in next year's presidential election. mr. cruz a conservative, who battled against president obama's health care reforms, p

one, angela merkel and two, christine lagarde of the imf.a quite impressive argument, isn't it? >> i absolutely can understand why women will feel that enough is enough. it's time to make a real change. what quotas do is they bring about change very quickly. what they don't do is create that sustainable pipeline of executive female talents, who are going to fill those senior-level leadership positions over a longer period. and there's a lot of national even the german legislation is supplemented by the 3,500 companies beneath the top 100, that have to actually provide more transparency around disclosure of the proportions of women. >> but take the norwegian example. it's working there, isn't it? there are many more -- we're up to about 35%, aren't we? >> yes and no it's working. it's working -- >> of course, you're always going to get yes and no running together. there's always going to be some mistakes and some failures. but the point is you're pushing the whole argument forward. >> not necessarily. what you're actually doing, and norway's

zhou was pushing to christine lagarde last week. we will see more in the coming weeks. ahn: definitely well. china pushing for the yuan. christine hah. other stories we are following. india has cut interest rates twice of this year but it may not fully be passed on to borrowers. 43 out of 47 banks have refrained from cutting hikes. they are urging the r.b.i. two/-- to slash reserve requirements per some say it would free up more than $70 billion. mercedes-benz is pushing the limits for market share with plans to develop a midsized pickup truck by 2020, according to "the wall street journal." and talks with the nissan it would be based on nissan's pickup truck. facebook is looking to add more friends in china as setting to wage a charm campaign to attract chinese advertising. wall street journal said they are hiring in hong kong. ceo mark zuckerberg is trying to raise facebook's profile by meeting with regulators. let's take a look at product. like this.ing at the slow down in china hurting areindustry as fewer people less likely to splurge on handbags. reporter: that is

christine lagarde is miffed about a new organization.ied the chinese are driving architecture that will undermine u.s.-led global institutions like the imf. the asian and the structured investment bank. tom: what is that? ian: created by china to throw billions of dollars at countries to build infrastructure which is underdeveloped. it will help chinese in their backyard. americans worked hard to convince all sorts of countries like south korea, australia and allies not to join. they think it will have less conditionality towards liberal democracy than american institutions. they are right, of course. a week ago, the brits said they would ignore us and they are becoming a founding member. the europeans signed on, the asians are going to sign on. it is an enormous loss. in terms of grand strategy in a part of the world lee kuan yew if he were alive today, this would have been the single thing he was most concerned about. anywhere in the world. brendan: did we make a mistake. ian: absolutely. the important thing is do not draw a red lines

while it fights pro-russian rebels, imf chief christine lagarde said ukraine will get money if it makesess on economic reform. chief lagarde: i can assure you that ukraine has satisfied all of the prior actions that were expected and required of it in order to start moaning running the programs. olivia: ukraine hopes to get back $40 billion. the u.s. and the european union are expected to control the -- to contribute the money for stop in florida, there was a candlelight vigil for seven marines and four soldiers who are feared dead after their black hawk helicopter crash after a routine training exercise. the weather forced another helicopter to turn back just before the crash. and shake shack shares fell more than 8% after its first earning report since going public. fourth-quarter revenue did beat estimates, but shake shack predicted same-store sales will only grow in the low single digits. shares had more than doubled since the company's ipo in january. in boxing, floyd mayweather says get ready for the fight of the century. floyd mayweather and manny pacquiao held a press conference

the idea was pitched to christine lagarde and up panel this weekend and it may have worked.me to discuss more, the head of currency strategy and robin brooks from goldman sachs. robin, what is this and why does china care? robin: fdr is an accounting unit the china uses that is composed of four currencies, currently. the eligibility or being part of the sdr is basically that the currency going in is widely traded, so it has to be liquid and reflect an economy that is open so that people can buy and sell the currency freely. as you said, the euro, the yen the british pound, the u.s. dollar are in that. alix: is this something that china could actually accomplish? is this realistic? what would trading have to be for that to happen? jens: part of that criteria would have to be a freely traded currency. there is no doubt that the way it has been traded has gotten more free over time, but it is still difficult for you to buy a chinese government bond if you want to, there are restrictions on that, so we have a little more work to do on that. the 1.i will make is that if you think

it shows the most important negotiating partner is christine lagarde.a fixed exchange rate, this is defense of their currency. brendan: they wanted a free flowing currency. olivia: the unofficial inflation rate is 270%. the official rate is 28.5%. tom: brian, here we are. they give us an uncertain neon u.s. markets do you ignore whether it is switzerland or ukraine? brian: you have to think about that and talk about what it means with respect to global portfolios. we are not there. we think most investors are applying the same template to europe. we do not believe that is the right one. america was able to set itself up. we have not seen that type of change in europe at all. if the front and is what everyone agrees upon, consensus is going to chase that. where are the earnings and the cash flow going to come from? that is the major question. people are having a hard time answering it. brendan: all of these countries have tremendous exposure to their sovereign death. do you see a bubble? brian: there has been a reach for yield. is there a bubble, bubbles

christine lagarde thing it will be hit hard? >> the reality is the consumers nearly 70% of the u.s.. it is the strongest it has been in years. the income proxy, job growth, income and hours worked. income proxy is upset -- 5%. the reality is we are very close to the point where you will see wage inflation. the bottom-up suggest it is happening more broadly across a lot of industries. the reality is you want to stay overweight dollars. you want to favor housing and housing way sectors. finally you want to own inflation-protected securities. inflation we think we gradually -- will gradually had higher. tips are for winners. alix: that is like your slogan. do you miss bill gross >? >> of course we missed bill. he is a legend. pimco is strong 2400 employees around the world and 13 offices in 12 countries. we are routine united, and we are working very well. the performance as you said, is good. alix: we miss them, but good without him. thank you. the u.s. chamber of commerce is hosting the annual aviation summit and easy, and matt miller has been talking to bury the layers in the future

the yuan's readiness to get that reserve status from the imf into the past couple days when christine lagarde was visiting china. they all pitched the resonance and finally, coming out with a statement saying that they welcome and share the objective of having it be included in the basket they can count toward official reserves and they will work closely with chinese authorities. there is still a long way to go for the approval of the yuan. the review is due out later this year and that hinges partly on the imf reversing a 2010 decision that said the yuan wasn't fully usable. jonathan: thank you -- ryan: thank you, that was shery ahn. caroline: greek and german smiles at a press conference yesterday. but tsipras did not walk away with anything concrete. while rolling out the red carpet, angela merkel did not unlock any of the 7 billion euros in emergency aid that greece may need to stave off bankruptcy. did tsipras witness anything at all from her? hans: he got that military honor roll goodwill and mr. tsipras has a better relationship with madame merkel which in some ways was the point of th

taking that conversation overseas, christine lagarde warning about possible capital flight from emergingarkets. we are already seeing that. bloomberg created a proxy to track prices to see if demand for emerging-market assets are rising or falling. it is falling big time. significantly more than 2013. >> may be janet yellen is sensitive to this as well. she is focused on steering the domestic economy, but if we look back to history rate raises from the fed have not been kind. we have the latin american debt crisis in the 1980's. we had the asian currency crisis in 1997 and 1998. >> we have known this is coming right? >> it depends on the speed and how aggressive the fed is. >> it took some people by surprise. when you look at emerging markets, they had about $9 trillion of outstanding dollar denominated bonds that they will have to service. they will have to pay it back with depreciating currencies and creates a risky bet it could be a systemic issue beyond weaker exports. they need to be aware of it. >> what puts other central banks and a hard spot is you have to raise rates to keep cap

and also, the leader of the imf, christine lagarde, who's warning that if you raise interest rates, this has an impact on other countries around the world. >> yeah, i'm sure they're listening. i'm not really sure how she's going to approach that. part of the slow approach, i think, now that we saw yesterday is out of concern that other countries are cutting rates, cutting rates below zero as we saw in sweden yesterday by the way. and her feeling that you can't totally decouple from the rest of the world. that said, those countries have their own monetary policies and they can adjust. that was bernanke's view. i think yellen has further to define herself on this. we'll see if she goes forward. >> all right. craig torres reporter with bloomberg news. appreciate your time. >> sure. >> well, we're still planning to take today's white house briefing when it begins shortly. also looking to return here to the senate budget committee's markup of the gop's 2016 budget. this is live picture inside the heart senate office building a committee room there. the committee expected to resume shortly at

and christine lagarde, euro centric ideas. i'm afraid this may not be a one off episode. the timing of the interest rate lift off can still surprise markets. who is going to be surprised at this point. >> i love the headline in the wall street journal, the fed no more promises except for that we're promising this will be a very slow raise if we actually do go ahead with it. >> i see a lot of the people that talk about being delicate it's like a circle meeting. is that what it's referred to? a circle meeting? let some economies -- the notion -- let economies, let's go. let's take away the training wheels. let's do what we used to do. we didn't have zero for years and years and years. the idea that charging an interest rate for lending money is somehow going to -- but this is what everyone worried about when we went so all in on this that we wouldn't be able to get out. is it going to be a problem getting out? >> you saw what he said in 1937. >> he manages money. >> everyone has a dog in this fight he is sets himself up because he expects they will be raising. >> this is th

christine lagarde warning tuesday that markets could be heading for a repeat of the 2013 taper tantrumn which interest rates rose around the world. but that considered winding down its bond buying. guest: this might be one point where i agree with the caller. there is just too much reliance by the financial marketplaces on what the fed does and what the fed chairwoman or chairman does every day instead of looking at actual market fundamentals. the price of oil, so on and so forth. instead of looking at those things, too many people are doing what you just said and looking to see what the chair is saying. their newest gambit, forward guidance. as our committee has pointed out the guidance is not much guidance because it does not always portend to what happens. people respond to what the guidance is. bottom line is there is too much reliance on the fed. a should not be having such a market influence that they have. host: larry, tuscaloosa alabama. caller: good morning. i have some questions in a comment. my question is pertaining to health insurance. my comment is also pertaining to heal

host: does chair yellen listen to leaders of other countries and also to christine lagarde the leaderf the imf, who is warning about raising rates and its impact on the rest of the world? guest: yes, i'm sure she's listening. part of the slow approach we saw yesterday is out of concern that other countries are cutting rate, cutting rates below zero as we saw in sweden yesterday, by the way. and her feeling that you cannot totally decoupled from the rest of the world. that said, those countries have their own monetary policies and they can adjust. that was bernanke eastview -- bernanke's view. we will see how she does going forward. host: craig torres from bloomberg news, we appreciate your time. coming up, we will talk to rick larsen of the intelligence committee. and later on, chris stewart republican from utah. we will be right back. ♪ >> now, isis rears their ugly and we are very shaky. you can't undo the decades of soviet and saddam era stuff especially when you are going to have advisers and partners with them. afghanistan, according to announcement, we courtney -- we currently h