expectedyou say, much news on christine lagarde. here is what is happening in european equity markets. the stock 600 is down by 1.5%. one industry group is rising. real estate. i want to show you banks, one of the worst performing groups. the news today from the banking sector was binary. the ecb said that five lenders under its supervision missed a key capital right and 2016 -- 2013. it also is that it would curtail its own demands on individual lenders winning some reprieve from regular tears -- regulators post crisis to pile on capital requirements. 1.76%.own by for the week, we are up. the best week since october of last year. -- doesn't look like my chart is going to work. i want to bring up some other chart. the curse of modern technology. what i can tell you, brendan, to beginners. europe's biggest insurer missed estimates for fourth-quarter profits because it claimed a natural catastrophe. gucci reported revenue for the fourth quarter that beats estimates. the gucci brand as showing some signs of a turnaround. -- mixed fortu

christine lagarde is the only candidate for her succession. she has the backing of several countries as well as the u.s. treasury. chasing after migrant smugglers .n the aegean sea three warships are being deployed. turkey is trying to the suspected smugglers involved in the death of -- trying to double suspected smugglers in the death of aylan kurdi last september. time now for the business news with kate moody. kate: global growth -- fears about global growth are continuing to wreak havoc on the market around the world. we are going to go through the numbers and take a look at what's behind them. in asia, the hang seng fell nearly 4%. the nikkei fell nearly 2%. the dax losing nearly 3%. 2%. ftse, an we saw sharper losses in other parts of europe as well. fell as much as 6% earlier in the session, recovering a bit at the close. wall street has been paring back , ony very sharp gains reports of the opec cartel may be getting closer to an agreement to cut or cap oil production that would help the problem of global oversupply. the dow jones down

christine lagarde, the managing director at the imf.ang xinghai, vice chairman of china's securities regulatory commission and director general at the intercontinental economic department. gary cohn, president at goldman sachs. zhang xin, chief executive officer and co-founder at soho china. and ray dalio, chairman and chief executive officer at -- chief investment officer at bridgewater associates. thank you so much for joining us. ray dalio, is there something that the west misunderstands about chinese markets? and does that exacerbate the volatility we have seen the last few weeks? mr. dalio: i think there is a lot the west does not understand about chinese markets. i think the essence of what's going on in china is an adjustment. they have four major challenges. they have a debt restructuring challenge. they have an economic restructuring challenge, so they have to come up with a new model for the economy. they have a capital markets challenge. to build in an efficient way that circulates capital through the system better. they have

her christine lagarde, it was not an easy five years, and it will not be an easy five years ahead. she asked herself whether this .as another 2009 moment she said she does not think so. when she talks about 2009, that is the major market and financial turmoil that the world saw. there will be plenty in her inbox, the likes of the debt crisis increase, financial reform in ukraine, and general market turmoil around the world. today in washington, she seemed confident going into the next five years ahead. >> thank you so much for bringing us up to speed from washington. group called the kurdistan freedom hawks said it was behind the deadly bombing in a turkish capital on wednesday. the turkish president says eu u.s.-supplied weapons were used to carry out the attack in which 28 people were killed. let's get the latest. shell, and ypg militia positions are targeted here the goal is to stop the kurdish group from taken the town, the last stronghold of turkish-backed current rebels north of aleppo before the border. it is a missing peas in a large swath of territory already held by the k

meantime, imf chief christine lagarde is warning large capital outflows from china do pose risks to the global economy. in corporate news, apple is fighting back against the u.s. government. the company argues the fbi's demand that it unlock an iphone belonging to one of the san bernardino shooters violates free speech rights and overrides the will of congress. we'll have more on that story in just a bit. and deal or no deal. top executives from sharp and foxconn plan to meet in china today. this is just a day after foxconn put its takeover of the japanese electronics giant on hold, saying it wouldn't sign the deal due to previously undisclosed liability. sharp shares down about 11.59%. despite that move, asia is green. >> it is indeed. that's not quite eradicating the big decline in shanghai yesterday. the other big story this morning, the republican slug fest. the dplgloves coming off last night. ted cruz and marco rubio attacking gop presidential front runner donald trump. >> he hired workers from poland, and he had to pay $1 million in a judgment. >> that's wrong. totally wrong. >>

christine lagarde, the managing director at the imf. fang xinghai, vice chairman of china's securities regulatory commission and director general at the intercontinental economic department. president at goldman sachs. zhang xin, chief executive officer and co-founder at soho china. and ray dalio, chairman and chief executive officer at bridgewater associates. thank you so much for joining us. ray dalio, is there something that the west misunderstands about chinese markets? and does that exacerbate the volatility we have seen the last few weeks? dalio: i think there is a lot the west does not understand about chinese markets. i think the essence of what's going on in china is an adjustment. they have four major challenges. they have a debt restructuring challenge. they have an economic restructuring challenge, so they have to come up with a new model for the economy. they have a capital markets challenge. to build in an efficient way that circulates capital through the system better. they have a balance of payments challenge. having to

. >> international monetary fund boss christine lagarde is being confirmed to a second term as managingirector. lagarde was the only candidate for the post. lagarde address the instability that has gripped much of the world's financial markets. she acknowledged the chinese economy was undergoing a difficult transition and sit open communication between policymakers was key to avoiding future instability. it has been a spectacular fall from grace, the russian economy has been plagued by the falling oil price and western sanctions. those have both dragged down the value of the ruble. of course, economic crises don't happen in isolation. they also affect trading partners. the german chambers of industry and commerce have held a russia conference in berlin to try to keep the trade ties taut. reporter: the political move between moscow and berlin might be frosty, but politicians and business leaders hope to put that behind them and get back to work. since 2012, german exports to russia have tumbled by half. 1/3 of german companies have put their investment plans on hold and around 80% of com

last summer, christine lagarde says, help me, help me, help me. yellen says, that is not my job. tom: that is true. christine lagarde is looking for janet yellen to solve the financial challenges. krishna: the fed is the largest central bank in the world. if you look at the position of the dollar, she has special responsibility at the risk bank does not. if she ignores it, the dollar will depreciate and that will lead to a slower economy. tom: can i be rude? and oppenheimer funds, with your massive international deal, how do you adapt to unicredit trading for a martini price, or a deutsche bank? if you have a three to five-year view, some of these financial stocks are extraordinarily a good value. you should be looking to buy them. stephanie: you have to let matt miller and here. matt: it shows in white, the stock 600 banks index. the chart is normalized, but you can see we are trading at the -- european banks are trading at half at what they were last year. question is do you buy quality u.s., or fishing internationally for the beleaguered who ha

chief christine lagarde was reappointed today to a second five-year term as managing director.ch represents the 188 member countries said no one else was nominated to oppose her. she listed financial challenges from lackluster global recovery to dealing with financial hotspots, including greece and ukraine. fairway maybe on the break of default according to moody's. in new york grocer could be breach of their credit obligations. the capital structure is also unsustainable. analysts agree the company should shelve plans to expand beyond new york and concentrate on fixing their financials. the grocer has yet to report a profitable quarter. mark zuckerberg may have something explain to do when he returns to barcelona to the mobile world congress. appsom companies they say like facebook and whatsapp are eating into their bottom line. zuckerberg assured the blaster that he was building a profitable model with more subscribers for carriers. that is your business flash update. let's go over to the markets desk where julie hyman has a look at the days underperformers. we talked about t

christine lagarde said that he was doing a good job.ndan: showing fiscal discipline, but at the same time, this infrastructure spending will have to come from somewhere. when you look at the balance of trade, there is a yawning gap that has showed up over the last two years with the drop in commodities. he said something funny off-camera. on the record, i said, are you confident the super cycle will return? he said there are three things that are certain in life, death, taxes, and business cycles. is that misplaced hope in a new commodity cycle? you could equate them as the countries that are most likely to do well, coming out of any kind of downturn. colombia, in-- particular, has a lot of appeal to north american investors. that is why it is considered a dark horse in the group, the one that has perhaps the most potential. an extraordinary and underrated soccer team as well. thank you, matthew winkler. as africa's biggest mining weference kicks off today, will hear from the ceo of anglo-american platinum. and before we go, equities, s

guy: christine lagarde did not have the seat -- did not have a seat on the fmo see.hey are talking about that we need to see an evidence-based approach to policy. is a.s. jobs number conversation we need to get into. rob carnell joins us now. how important is the payroll data today. how does it compare to yellen delivering testimony next tuesday? rob: it is important. it was looking as if it was not important a couple weeks ago. a very weak gdp data that we had a week or so ago. this is the coming quite important. there are questions we have about the u.s. which is is the u.s. heading to a recession? no economist is going to go out and say for sure it is. the labor market is one of these. that starts to turn down, they might be serious problems. guy: the data looking good. what really caught my eye this non-manufacturing and the fact that the nonmanufacturing is looking like it is going to turn down. rob: if you can look at the u.s. economy in say overall it looks relatively strong. it is a very weak manufacturing sector. things are not holding together as well as th

european region and germany as well. 1.1028.see euro at we are getting breaking news out of christine lagarde. we will monitor the news we get from her purchase talking about the gcc countries. stocks falling overall globally. over renewed concern over the strength of the chinese economy. stoxx 600 down 0.2%. the shanghai composite was led lower by a lot of the financial and industrial companies. after the central bank in china weakened the yuan. the pound declining. crude slumping. let's get on to the second board. rick off mo -- risk off moved. the pound had to do with brexit. i want to show you two stocks that reported earnings. cutting its dividend. standard chartered down 3.7%. better than just about 10 minutes ago. let's get straight to the bloomberg first word news. nejra: bhp billiton has made a larger than expected cut to its for the, lowering payout for the first time in 15 years. as the world biggest mining company seeks to protect its credit rating amid a price collapse. share price has fallen 40% over 12 months. david cameron's campaign to keep britain in the european union has b

christine lagarde says the $18 billion bailout of the country makes sense unless -- until they overhaul the economy. she is set to win a second term as the imf managing director after no candidates emerged to challenge her. the u.s. and russia are disagreeing over a truce in syria. the u.s. was the cease-fire to begin immediately and russia begin -- proposes a begins march 1. underway in are iran to mark the islamic revolution. they seized power 37 years ago today. global news 24 hours a day powered by eric to 400 journalists in our 150 news bureaus around the world. let's dive deeper because stocks in europe are going to multiyear lows and mark barton is in london with more on the selloff we saw in europe that carried over from asia. unrelenting, we are down for the eighth day and yesterday's respite have a gain of 1.9%. we have given back the losses and we have taken more. we fell as low as 4% earlier. there are so many statistics i could bombard you with. at least five of the worst-performing stock markets in the world are european. the stoxx 600 and it's at its lowest level since 20

also speaking at the summit, christine lagarde said china has contributed to the recent market jitters. >> growth in advanced economies remains modest and some large emerging markets are showi inin signs of distress. on top of this, china's necessary transition to a more balanced growth model has added to market volatility. and all of this has unsettled financial markets, which in turn depresses consumer and investor sentiment. >> will ballard is with us. so lagarde speaking as many leaders have done over the last couple months saying china's definitely a part of why we've seen all this volatility out there. do you think g-20, they're going to be talking more about stabilizing china or focusing on potential coordinated efforts to try and maintain some type of stability or equilibrium. >> when you look at the g-20, look at this meeting taking place right now, i don't think i should expect a huge concerted, sort of global decision or global action to come out of it. this isn't 2009. it isn't the april 2009 meeting where you saw an agreement to try and rescue the global economy. we're goi

. >> 36 hours today and has a news alert on christine lagarde. >> the biggest headline she made was not on the imf view of the global economy, pretty downbeat, an optimistic note she sounded about china addressing the question that every global investor wants to know now. listen. >> china is going through that massive multifaceted transition. and we do not expect a hard lending of china as has been talked about for many years, actually. >> so there she is with a vote of confidence. she went on to talk about how china is trying to transition its economy to what she calls quality and sustainable growth. but did say that the chinese authorities need to be careful when managing and changing their monetary policy and their currency like the weakness that has been spooking global investors this year. that it is, quote, well communicated. just the latest politician to tell the chinese authorities to communicate their policies. but overall, she said this transition should not be a negative, keep in mind the background here, the imf recently announced it is opening the process of appointing a ma

people really noticed when it was christine lagarde from -- >> gerri: right, imf. >> from the imf.n they were protesting against her, they were like, really? who is allowed to speak? gerri: my knee-jerk reaction is this has to be unconstitutional, right? >> well, yeah, at a public college. at a private college they're not bound by the constitution, but you've got to call out the ridiculousness of the university -- gerri: where does this come from? you say this is going all over the country and it's on university campuses. are these kids just so scared of hearing a different point of view, so fragile that they possibly couldn't hear anything else? >> i honestly think it's the fault of administrators. they've been teaching students that they have a right not just to not be offended, but now it's moved to the right where you have the right to be agreed with if we like your politics. and they're doing students the disservice of saying, by the way, you might be damaged if you hear opinions you disagree with. gerri: but campuses were always the place where you could have a free and open

next, christine lagarde says central bank calls these are becoming less effective.nkers have to result -- resort even more drastic measures to stimulate growth? we're talking about this on bloomberg . ♪ >> welcome back. this week, earnings an annual loss. reports, that they may be cut by the s&p. the units may be cut by s&p. i will give you an update when i get the breakdown of that particular report. our chief us, strategist. the g 20 meeting is well underway. it kicked off with a warning tone. cautioning against pushing interest rates too low. >> nonetheless, when negative rates are implemented in ways that insulate retail customers, shutting off channels that affect domestic demand, that allows wholesale rates to adjust. the main effect can be through the exchange rate. from an individual country perspective, this may be an attractive weight activity, but for the world as a whole, this excess savings and transfer of demand weakness elsewhere is a zero-sum game. resort,e option of last you look into the effect of lower bound. how much further can they take thi

christine lagarde of the imf said china express no intention to devalue their there is a great deal ofnterest in what the chinese are doing with their currency, isn't there? whether this is a point of tension that will at some point have to break. you think it will have to be a big devaluation of the chinese currency? >> i hope not. , peoplepened in august read it as, hang on, do they really do that? anna: in terms of the losses, there are expanding. you have emerging-market currencies slipping. had you look at the world between developed markets in terms of exposure. we haven't added any new money to emerging markets. the story looks great from the top of the underperformance of the emerging markets worries us. it will not be until we see a real stabilization of across-the-board. i have taken that out to five years. that makes it even more tragic. save yout that would if stability comes? relativei look at the performance of the emerging markets. some stability and perhaps reaches three months of relative highs, then i would say it is time to buy. there has been no sign of that for mon

this was the final par 4 christine lagarde and her committee in accepting the yuan to then quickly reversing that position and limiting capital flow would take them negative by markets. one of the concerns you would have about the comments over the weekend's other people talking about currency pays -- pegs. markets being very concerned that it does not provide any assurance over long-term commitment to a currency peg. manus: there is a great article on bloomberg this morning that says the net -- the negative rates story were -- worked very well for the swedes. but it does not deliver growth. this is where the markets were hugely antagonized. on one hand, they are sending a message that negative rates are destructive and do not create any value. on the other hand, listening to this need for more stimulus from the bank of japan. the advantage the swedes and the danes had was the first mover advantage. now everyone else is signing up to go negative and further negative. it is a comparative story, not an absolute story. we need to look at -- negative rates in the context of what central banks sa

voices, theies of most poignant is the special responsibility that the federal reserve has from christine lagarde receive another piece of evidence from the u.s., a jobs day. bob parker senior adviser at credit suisse. sit back, it could be a bumpy ride. how relevant is the estimate of 190,000 jobs? bob: very relevant, indeed. you said that we have seen this week expectations of what the fed will do. those expectations have changed. we had this conversation two weeks ago, we had guidance from the fed saying they would reprise the fed rate four times this year. the market two weeks ago discounting only one, possibly two increases on the fund rate. we had a weak fourth-quarter gdp number. and we had a weak export numbers. energylook at the u.s. and mining sectors, investment in production is down very sharply, indeed. and i think growth expectations are being pulled in to now discount probably only about 2% growth this year. so yes, that is better than the fourth quarter. but i think expectations of 2.5% growth this year have been brought back. what happened this week is that the market is now sayi

christine lagarde came out and said that central bank still need to be fairly accommodative because whated is that conditions have heightened because of all of the safe haven. that brings us to this one which is central banks are not superheroes. they can only do so much. it is now up to governments to provide the additional support, in case things to worsen from here on. angie: what about currency wars? what do they say about that? especially with negative interest rate here? david: that was a key topic. what was interesting was people wanted to know what china's intentions were with the yuan. i think the japanese arrived late saturday, and the focus shifted to them. because, obviously there was a need to clarify attentions. i think a key message when it comes to currency and currency wars and currency devaluations was that it is ok to have a policy that might have a side effect of driving down your currency. but, it is important to communicate it with others. overall, the message that they put forward was this, we reaffirm what the committed to before, we will not involve ourselves in

francine: i spoke to christine lagarde, first of all, she is making the point. is that fair?s that the kind of rhetoric we should be talking about? rick: i think seeing men and women in a simple way is not helpful. i really don't think we should think about people in that way. francine: do you think it would change for other firms. will more women be in finance and five to 10 years? rick: in the u.s. there is a prominent process of networking that is helpful. when i think of the progress we have made, you do rely on what you do yourself. that is more prominent in the u.s. francine: rick stays with us. we would be talking about negative rates. up next on bloomberg surveillance, we are joined by tina fordham. she is the city's chief global finance analysts. in the u k, they believe if the the union, itexit would increase the chance of a recession. ♪ tom: turns to the market, fragile markets. china hammered overnight. hammered is the right word. down 6% when you seek shanghai move 3%, 4% and the now -6%. he is caroline hyde. caroline: tom, thank you. the u.s. has described as ha

that is what christine lagarde said, maybe this is just a promise -- something the chinese authorities- there was a lot of turmoil in the markets before then, begging for this kind of thing. amongst all of this noise, is basically -- ample liquidity at home. pboc had been pumping cash into the financial system for quite some time. , we that is out later today will get aggregate financing that will show an -- a significant uptick in basic liquidity in the market. the aggregate finance data is out today. this chart is telling. as the fx reserves have clients to a four-year low of 3.3 trillion u.s. dollars, and one, the money supply has risen. here is foreign-exchange reserves. this is where liquidity is going, money supply is rising. they have been doing something right. that has been lost because nobody has been talking about it. angie: he is talking. it is the first day of the trading week after that lunar holiday. we will be seeing whether or not we will see the yuan rate. >> the markets open up as well. .ngie: very good, thank you you can get more on all of the day's top stories at o

i think it's definitely the uncertainty and the global picture is really on people's minds, christine lagarde said i think we can avoid a hard landing in china and talked about the bank stocks and a lot of bad debt. this is being looked as a major drag on the economy. >> i wonder if this this is in a way, guy, i don't want to paint with a negative brush, but just trying to think through the price action, were these moves actually kind of a little bit of risk off moves because the data just -- you know, ain't that great? >> well, i don't think -- you know, avoid a hard landing in china, we're well beyond that. but that's another conversation. i think the data has been mixed. i would look at it and say it's been mixed to housy and other people would say the opposite. we can all agree it's been mixed. what happened unfortunately is the central banks around the world have made themselves front and center in terms of the conversation. you said it at the top of this, they are walking back rate hikes. that's exactly what they are doing. you know why? because they desperately need a weaker dollar. yo

. >>> the international monetary funds board is set to confirm christine lagarde for a second term ass according to a french newspaper. she was virtually assured of a second term when nominations closed with no challengers. >>> john kasich meeting with a group of campaign volunteers in mt. pleasant, south carolina. he discussed his campaign and how to move forward over coffee and bagels. >>> the first of two explosions to demolish the daniel boone bridge in missouri took place today. a new bridge opened to traffic last june. the explosion forced the closure of all lanes on the new bridge to clear debris. >>> and the nhl stanley cup champion chicago blackhawks visited president obama at the white house. obama calling the stanley cup the best trophy in sports. he also noted it was the team's first visit to the white house in the last six years. and that's cnbc's news update at this hour. back to you. >> sharon, thank you very much. >>> let us now talk oil with the "trading nation" team. today your team is todd gordon and boris schlossberg. todd, we will give you some props because three

with christine lagarde, they probably begged janet yellen to pay attention to the situation in europeat here and said, that is not janet yellen'job. what is her job? none of these operate in a vacuum. >> that is exactly right. if as job is also to keep employment growing and keep inflation under control. i would argue they are still more worried about deflation and the disaster that deflation really brings on an economy and a society and all of these are deflationary policies abroad and the fed has to react to that under their mandate, which is u.s. centric, but it is impacted by the rest of the world. >> to go back to the internet you -- the interview with the treasury, they need to do more. the reform package has not come. the economy fell off a cliff. do we need to see more from the prime minister? >> one of the biggest problems they have is a demographic problem and they have to grow the workforce and the labor force. they have not used to that arrow, so to speak. they have talked about it but you have not seen it yet, not dissimilar to the u.s. where it is all monetary policy all

christine lagarde is way out front with this in terms of this idea of new mediocre. a search for growth. stephanie: wall street has become lazily addicted to central bank intervention. , there is not a strategy. jonathan: i would say policymakers, officials like jack lew had become addicted to what the federal reserve is doing. stimulusd not have the , could you imagine what would've happened with the fiscal tightening? looking ats to stop the central bank and start look at what they are doing themselves. david: tom, you have other responsibilities back on radio. take you for being with us. next, we will talk with one of the top hedge fund managers in 2015. ♪ jonathan: coming up in the next hour, david lichtenstein. >> fourth-quarter profit was better than expected at dreamworks animation. they been restructuring their struggling sales operation. last year, the ceo cut 500 jobs and put movies on the shelf pencil the company -- and sold the company. gdp may expand by 1-2% this year , hong kong's worst performance since 2012. a drop in tourism and a slump in exports ar

meanwhile, imf chief christine lagarde warning large capital outflows from china pose risks to the global economy. back here in the u.s., a couple data points to watch today. second read on fourth quarter gdp out at 8:30 a.m. eastern. growth expected to be revised lower from 0.7% to 0.4%, which would mean the fed hiked rates in december when the economy was still slowing down. also, look for trade deficit numbers as well as january personal income and spending. in political news, a republican slug fest. the gloves coming off last night during a debate in houston. ted cruz and marco rubio attacking gop presidential front runner donald trump. >> here's a guy that buys a house for $179,000. he sells it to a lobbyist who's probably here for $380,000 and then legislation is passed. you tell me about this guy. >> here's a guy that inherited $200 million. if he hadn't, you know where donald trump would be right now? selling watches in manhattan. >> i really find it amazing that donald believes that he is the one who discovered the issue of illegal immigration. i can tell you when i ran for senat