earlier in washington i spoke to imf managing director christine lagarde. she had a few surprising things to say about president trump's economic policies. we'll have that for you. talks about how he gets it right on certain issues. you will find out exactly what she had to say later on in the hour. start it off with kevin hassett, kind enough to join us on what is a very nice washington afternoon. on the north lawn on of the white house. i will start you out with breaking news. four republican senators would be opposed to herman cain's nomination to the federal reserve board. that means he wouldn't have enough votes if things hold up like that. what is the reaction, do you know, from the white house? >> i've known herman for a long time. i first met him in the presidential campaign. president likes herman a lot. he has ample experience in the federal reserve space. on the board of kansas city fed. we're on the process, everyone gathering their paperwork, do it, send it up. i think senators should wait until the nomination is sent, until they get to see all

coming up, christine lagarde and managing imf director.g to fail, so would she support consolidation in that space? 10:30 a.m. in new york, 3:30 p.m. in london. this is bloomberg. ♪ this is bloomberg surveillance. at and francine in d.c. today for the imf spring meeting. grappling with uncertainties, that is the message from the most recent fomc minutes. the next rate move could be in either direction and they suggest u.s. growth is going to slow to around 2% this year. and that will put the fed at odds with president trump. he says expansion at 3% is unacceptable. tom, talking about central bank independency and the trump remarks and the administration's dealings with the fed it, whether it makes -- with the fed, whether it makes jay powell good at his job or not. should we worry about central bank independence? >> what we're talking about will be notable. my old days of the board, the board staff pretty much sets the framework and the set -- and sets the tone of the discussion. i think we can keep these guys on track. tom: it is mass pol

stephen: so no recession, but we are at a delicate moment, the words christine lagarde is saying.nuary, i mentioned them cutting the outlook, they lowered growth projections to 3.5% for 2019, 3.6% for 2020. it was the imf's second cut in outlook in three months. as i said, the new outlook is out on april 9. the wto also slashing its outlook for growth, to the lowest level in three years. the intact, of course, of what it called rising commercial tensions and tariffs. that's trade war. it will slow to 2.6%, world merchandise trade growth, according to the wto in 2019, and 3% in 2020. it was 3% in 2018. director said it is increasingly urgent we resolve tensions and focus on charging -- charting a positive path forward for global trade. haidi: in the meantime, we are seeing signs of stabilization. too earlyonomy, is it to talk about whether authority should stop easing? stephen: that's the question leading to debate. we have had economic indicators showing the growth decline, if you will, has pretty much bottomed out. we are also later, on april 17 be get first quarter gdp figures t

sara eisen is on stage right now with the imf's christine lagarde.is profit warning out of walgreens alliance shares of lyft under pressure today after a brutal second day of trading yesterday. >> walgreens boots alliance lowering its 2019 outlook. >> as we said, imf managing director christine lagarde with us for a first on cnbc interview ahead of next week's world bank spring meetings. the second quarter kicked off with the dow saying the best day in about six weeks joining us, jonathan goll leb. good to see you both you're among the most bullish on the street i don't know if we'll get much of a debate. >> having me with jonathan is a waste of time. when i get bearish, i listen to him. the bottom line is, everything is playing out according to plan the second half, up hift we're looking for, you're seeing the green shoots or green sprouts as fred smith of fedex would say, all over, and policy remains supportive >> jonathan, you recently tripled your earnings for the year, but lifted your target is this on the fed pivot or something else >> first of

that sounds pretty darn good, so is christine lagarde just wrong? she think we are really hanging in the balance. peggy: the reports covering the imf team last week showing that there is some concern. trump is basically saying to other parts of the world got to do more for us and america first, but at the same time, because he's picking battles on multiple fronts when you're in europents between , china and japan, it is causing concern among investors. out: steven mnuchin coming during those imf talks and saying i would expect that the enforcement mechanism works in both directions, and we would expect to honor our commitments. this also coming out of the china/u.s. trade negotiations. at the end of the day, the u.s. understands they are also going to face repercussions. how much is this a positive step in moving towards some sort of agreement? peggy: i think it is an indication of a deal potentially coming because each side has to feel like they are getting something. it seems like there's a door open to the u.s. saying if you agree to have potenti

furniture private new terrorists and trade barriers are threatening free trade according to christine lagarde of the spring conference of the international monetary fund. so we need to better addressed unfair trade practices and distortions in the system including through a w t o. system reform. and we need to avoid self-inflicted wounds including tar ifs and all the barriers. it would be on those areas are having a real effect on trade the i.m.f. expects the world economic growth rate to decline this year to three point three percent but god also warned the developing countries are not benefiting from growth in industrial nations to the same extent they have in the past. as to our top story here are. issuing documents ahead of its much anticipated i.p.o. and let's get more on that where our financial correspondent conrad who isn't in frankfurt conrad is poised to be one of the biggest i.p.o. zynga years yet is not making any money how does that go together. that's job dropping kristoff that's jaw dropping in particular for conservative market people conservative investors who are used to eva

you for breaking it down for us from westminster as always >>> well, the imf managing director christine lagarde has told cnbc that brexit poses a clear down side risk to global growth speaking in an exclusive interview, she add thad a no deal exit would weigh on the u.k.'s economy >> absent a deal, it will -- it would certainly be very, very sad for the economic situation of that country and would have negative impact on consumers, on producers, on the supply chains, on pretty much all the trade relationship that exists currently between that country and the rest of europe >> let's get back to hattal, senior european economist from legal investment management. it looks as though theresa may is going to pursue a softer path for brexit in terms of the extension, it seems increasingly likely it's going to be on the longer side in terms of impact on the euro zone economies, how do you think about the long-term extension versus some of the other alternatives we were considering before today >>i think in longer extension should keep european growth roughly where it is now, so at trend. i think anythi

we welcome the grandmother christine lagarde.er] carol: newly minted grandmother --francine: newly minted grandmother. tom: everyone fine and well? christine: everyone doing well, now we will look to the future. what is delicate at the moment is moving from what we had assumed would be a synchronized growth a year ago to what looks like a synchronized slowdown at the moment. you actually try to understand the roots of that and identify the policy that countries can apply in order to go back to roaring growth, which we are still hoping for in 2020 because we believe that while this year will be at 3.3% global growth, next year we will focus on 3.6%. francine: how much of a concern is it when they have to roll this back? christine: they will probably have to do that in a very gradual way. does that monetary policy which, remain view, should accommodative. at some stage when growth picks up, when the respective mandates are properly delivered upon, they will have to look at the balance sheets and start dealing with it. francine: we'

christine lagarde fleshed out those forecasts in an interview in washington, d.c.m the moment, moving what we had assumed would be synchronized growth roaring a year ago to outlooks like a synchronized slowdown at the moment. trying to understand the root of that and identify the policy mix countries can apply to go back to roaring growth, which we are still hoping for in 2020 because we believe while this year will be 3.3% global growth, next year we are forecasting 3.6%. longer for monetary policy. how much of a concern is it that they will have to roll back? >> they will probably have to roll back in a gradual way. gradual is a word that applies to fiscal policies. view in policy in our many countries could remain accommodative. we welcome the ecb and the fence recent -- fed's recent decisions. they will have to look at their balance sheets and start dealing with it. >> how dangerous is this fed?eying around with that tha ? >> they have a mandate which was given to them constitutionally or bylaws. beir mandate is going to either price stability and unemployment,

christine lagarde was reminiscing to me about her childhood in northern france and the ease with which she wants a deal done as quickly as possible. she is concerned really about prolonged uncertainty and the damage she says that could do to uk growth. her newly appointed counterpart at the world bank says it could spill over and hurt european growth and asian growth. the stakes are high as phillip hammond arrives and is looking forward to sitting down with his counterparts from the us, china perhaps talking about future trade relationships. but he will face plenty of questions about his government's handling of these negotiations. what some here are calling a matter of national humiliation. dharshini, thank you very much, dharshini david, our correspondent in washington. after months of popular protest in sudan, president 0mar al bashir has been removed from power in a military coup. tonight, he's being held in what the country's defence minister called a safe place. it was an abrupt end to 30 years of his dictatorial rule. a military council is now in charge in khartoum. it's announc

christine lagarde puts the forecast in perspective. >> the outlook at the moment is moving from what we assumed would be a synchronized growth to what looks like a synchronized slowdown, at the moment. abigail: it is all straight ahead on "bloomberg best." hello, and welcome. i am abigail doolittle. this is "bloomberg best," your weekly review of the most important business news, analysis, and interviews. let's start with a day by day look at the top headlines. on monday, investors watched with intense interest as world's most profitable company took orders for its debut bond sale. >> saudi aramco has received orders worth $75 billion for its debut bond sale. the deal is one of the most anticipated of the year, showing investor hunger for high-quality credit after major investors briefly shunned the kingdom after the killing of journalist jamal khashoggi. >> right now we have orders standing at $75 billion. that order book continues to build. yesterday we were talking about saudi aramco selling $10 billion worth of debt, but now people are talking about at least $15 billion. that is

from thements christine lagarde and washington, d.c.h indicating that the global economy has lost momentum even from january. keep in mind, in january that was a downgrade from an earlier downgrade that we got three months prior. potentially, we could get another downgrade in global growth outlook coming on april, i believe it is nice, yes come april 9 come a new forecast is coming from the imf. we are inlagarde says a precarious position in the global economy. lowered theanuary growth projection to 3.5% for this year, 3.6% in 2020. now she is indicating that while not in recession, we could be seeing lower numbers going forward in the new outlook. here's what she had to say. >> we do not see a recession in the near term. some pickupexpect in growth in the second half of 2019, and into 2020. so you see what i mean by unsettled. and indeed, the global economy is at a delicate moment. stephen: delicate moment indeed, including the wto saying they are slashing the global growth outlook on trade to 2.6% for world merchandise trade growth. t

or furniture private new tariffs and trade barriers are threatening free trade according to christine lagarde of the spring conference of the international monetary fund. so we need to better addressed unfair trade practices and distortions in the system including through a w. two. system reform. and we need to avoid self-inflicted wounds including tar ifs and all the barriers. it would be and those areas are having a real effect on trade the i.m.f. expects the world economic growth rate to decline this year to three point three percent but god also warned the developing countries are not benefiting from growth in industrial nations to the same extent they have in the past. joining us now is our washington correspondent of the first holiday he was at the i.m.f. world bank news conference i'll have a good see you now the guard's warnings there against punitive trade measures but of a side swipe at donald trump no. well she did not mention donald trump's name and neither did she mention the united states but it became pretty clear what she was actually talking about when she said that one of th

what christine lagarde said was driving that pessimism and where the u.s. fits into the global picture right now, it's outlook for 2019 see you then. >> sara, thank you see you in just a bit. less than 30 to go, edging on 20 minutes before the closing bell. dow jones off its worst levels of the day, still down about 66 points as we've been saying all show long it's really due to the weakness today in walgreens, one of its worst days ever otherwise the market is holding up pretty well the s&p is marginally in positive territory auto sales coming in we'll tell you what's driving slowing sales, next. >>> plus shares of gamestop are down around 20% so far this year we'll get a read on the gaming consumer when itepts ror earnings after the bell. feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow. so, servicenow put your workflows immhm

christine lagarde says it has lost momentum. is chief investment officer still with us. look like there is a lot growth. does that encourage you to search more for yield? >> to some degree, yes. what is worth talking about is what growth actually is. policy that is dovish, as we have seen. that does give us a bit of confidence. itple talk about when acceptable level of growth is. 1-2% is fine for us. allied is to generally central banks in a dovish state. giving some of the better valuations we have seen, we think there are pockets of value and areas we should be exploring foreign investment. eu flag u.s. high-yield, having returned 7.5%. you see that outperformance continuing. giving that pivot from the fed. can it continue in the u.s.? high-yieldertain looks relatively attractive. we are not going to see lots more spread tightening. if you see the u.s. and global growth picture improve, which you may do if we get a positive seeome, you could potentially another boost to that. seeing flows into european high-yield. confident total returns will be positive. >> one of the

the thingsup on christine lagarde was saying. is there a belief in risk markets central banks have the tools to manage slowdown? >> there is a general toectation have the capacity if back quantitative easing. what is not clear is whether trade is delivering the results we see in china and also interest rates have a very adverse implication for economies like germany where savings are rising, not falling on the back of monetary policy. nejra: we are seeing the euro up in today's session. what is your outlook for the rest of the year? theomewhat bearish in dollar. maybe on the growth slowdown i anticipate later in the year. on the euro, i think you get to levels of 117 consistent with what forbes is telling us. zone, ifok at the euro we see any stabilization in chinese data, the eurozone should not deteriorate. consequently, we have seen -- from euro this year. nejra: the headlines on u.s.-china quiet today. if we do see any kind of deterioration or any affect on the chinese economy around expectation, is the impact going to be gre

keeps lowering their economic growth forecast and on a positive note christine lagarde is still not talking about recession so that's at least a little bit of good news and so wall street hardly reacted to this forecast and here's shares of right healing service list fell below their i.p.o. prize in just their second day of trading what happened there. well for instance there was one analyst coming out with his cell rating on the stock and giving a price target of forty two dollars a share well the stock started trading on friday with seventy two dollars apiece so obviously there is quite some skepticism and maybe it has been too optimistic when they gave out their stock on friday not that they gave up the stock but maybe the price was just too high and that could be a telling for the next big companies waiting with their i.p.o. in the next next couple of weeks leg for instance or interest so i'm quite certain that the next i.p.o.'s will be a bit more conservative than what we've seen was a lift in court in new york thank you. and here are some of the other business stories making the news.

the imf boss christine lagarde has been telling darshini david about her concerns.use we we re it's a delicate moment because we were under the probable illusion that everything was fine, momentum was up, growth was in the air and i did saya was up, growth was in the air and i did say a year ago, when the sun is shining, that was growth. please fix the roof. that was structural reforms. forward one year and we have adjusted our growth forecasts. we are hoping for some improvement. do those risks expect those risks include anything from a hard brexit to renewed trade tensions. those are big clouds on the horizon. you examine the potential economic shock that could come through for various scenarios. where we are at the moment, we could also see prolonged uncertainty. how does that spill over into risks for the uk economy? if there was a prolonged uncertainty, we can suspect the impact from whether you are talking about investors, talking about decisions as to how to organise supplier, people are going to wander. how will it settle. you are a former finance minister.

the imf and world bank spring meetings are under way in washington with christine lagarde and othersarning of a quite uncertain outlook. hays is in d.c. for the meetings. we continue to hear this pessimism growing among policymakers around the world over the state of the global economy. what are we hearing now? kathleen: a number of different things. i think everyone agrees that broadly, the global economy is slowing and broadly, the biggest risks are the u.s.-china trade war and the risk of a no deal brexit, but everybody knows -- the stories have been different for every country, and when i the new chief of the central bank about his concerns about growth and inflation, he was pretty sanguine on the onnomy, pretty sanguine borrowing a lot from china and japan from some of their important infrastructure spending. he also seems that despite all of that, inflation is low enough that maybe the bsc could consider cutting their rates at the may meeting. let's listen to what he said in an exclusive bloomberg television interview. is the agenda, we increase interest rates by 1.75% , 175 ba

austerity you know a very conservative way of handling state debt and the state spending well christine lagarde and her people at the i.m.f. want both the governments in china and germany to be more proactive to make more progress policies in the case of germany for example this means be less concentrated and less focused on you know financial stability or you know the south as of the state budget and more focused on infrastructure spending and domestic demand and conrad another delay of bragg's it is on the agenda today in brussels where e.u. leaders are gathering now the governing council of the european central bank is also meeting today what rican what can we expect there in regards to the braggs drama. well of course the e.c.b. council members must be very concerned about the negative impact that breaks it already has had on businesses in the euro area. now of course bankers in frankfurt are hoping that this means that the e.c.b. council also becomes a bit more you know understanding of the problem that the banking sector has for example those negative interest rates that banks have to pay

or furniture private new tariffs and trade barriers are threatening free trade according to christine lagarde at the spring conference of the international monetary fund. so we need to better addressed unfair trade practices and distortions in the system including through a w t o system reform. and we need to avoid self-inflicted wounds including tar ifs and all the barriers it would be on those barriers are having a real effect on trade the i.m.f. expects the world economic growth rate to decline this year to three point three percent god also warned the developing countries are not benefiting from growth in industrial nations to the same extent they have in the past. to talk more about the challenge for the world economy i well come to the studio fed and fish here is a professor for macro economics at berlin's university for applied of applied sciences sorry welcome to the program foreign and are you worried by the i.m.f. straw's or pessimistic view of the world economy. it doesn't worry no more any more than anything we've seen over the last few months we've seen a pronounced slowdown over

christine lagarde as well as the governor of the bank of italy and the south african reserve bank. bloomberg radio is live on your as well as serious xm. there we see nejra. tune in. this is bloomberg. welcome back to bloomberg markets. this is the european open. we see a mixed picture in terms of futures. little changed at the moment. let's talk about cars. we may be witnessing the end of the internal combustion engine as more and more make the shift to electric vehicles. will germany's automakers be able to adapt in time? the m.w.p. and volkswagen looking to expand their offerings. our european autos editor joins us. the biggest problem with the shift for german automakers is they waited so long to make the change. is that going to make the future difficult. >> very good question something that is not answered yet. of other ahead carmakers. the car turned out to be a little early for most consumers. have flicked the switch to get into electric cars. they are rolling out major model lineups. these cars will be returning less than combustion models currently selling. consumers are

we just heard from the imf christine lagarde moments ago. let's head back down to d.c.nd sara eisen who joins us with another special guest. hey, sara. >> reporter: hey, morgan. i'm here with tom donahue recommending 3 million businesses across the country. thanks for having us here today. >> glad to be here. >> top of mind is the president threatening to shut down the u.s./mexican border. you guys have advised strongly against this. what would the economic fallout look like? >> first of all, you have to wonder because it hasn't been specific, what would be shut down, for what purposes. surely we don't want to shut down the people that come to the united states every day to work here, cross the border that we need, we don't want to shut down the trade that allows us to make automobiles and related products between the two countries, we don't want toshut down the movement of tourists, but the president has a legitimate concern about these migrations of people and what are we going to do with those going forward because we've sort of -- the house is full. >> have you call

economic but also as they kind of play into the stock market, connell's full interview with christine lagarde of the imf, nobody does that like connell. connell and melissa will also speak with the white house council of economic advisers chair kevin hassett live, all "after the bell." don't miss it. >>> rite-aid, a little wrong. with the closing bell ringing in 45 minutes, the dow down 53 points, the drugstore chain is tumbling to a near ten-year low after posting its first sales miss in a year. what hurt it? flat retail pharmacy sales and a negative impact from new generics coming out on the market. good for consumers, not great for rite-aid. most heavily traded stock at this hour, rite-aid at the moment is just 51 cents. >>> up next, is alexa really big brother? reports say amazon has thousands of employees listening in. does that equal spying? you get to decide. our tech panel will weigh in on the latest controversy, big tech privacy intrusion and what it might do to amazon stock. we'll be right back. ♪ ♪ i can do more to lower my a1c. because my body can still make its own insulin. and i

also, we will he get a preview into the world bank spring meeting later today when christine lagarde speaks to her u.s. colleagues. >>> coming up on the show, fee at chrysler responds to sports it's prepared to merge with one of its french rivals we'll discuss whether the nsidioor is ripe f coolatn after the break. there is wisdom in how nature protects and it inspired an all-new toothpaste from burt's bees®. it fights cavities and freshens breath. made with ingredients you can trust. for a smile that's a true force of nature. new burt's bees® toothpaste. >> after the u.k. parliament once again rejects a series of alternative brexit professionals. the e.u.'s chief brexit negotiator michelle barnier says no deal is becoming increasingly likely >> no deal was ever our design or intended scenario, but u.k. is now prepared. it becomes day after day more likely >> european stocks lack direction at the open as gains made in the u.s. and asia fade following strong economic data stateside. >>> engine troubles for rolls royce. shares in the british company decline after a singapore airlines g

one of the big reasons i'm on the show i will interview christine lagarde, imf managing director, thenwhite house, kevin hassett, white house counsel of economic advisers chairman. todd buchholz is here. bring up imf not only for self-promotion of our show on thursday. they cut their global outlook, three times in six months. if there is anything today, u.s. wasn't immune. it wasn't like the rest of the world is a mess but the u.s. is okay. >> the u.s. is doing far better. the u.s. has the goldilocks scenario, cliche everyone keeps using. the rest of the world is like lox, dead smoked salmon sitting there not moving. when you look around the world, countries are bringing down the average. argentina is a mess. turkey is a mess. china has been skidding. in fact by context u.s. is best in class but it's a pretty weak class at the moment. connell: the question whether that class is pulling us down or do we have our own issues, self-inflicted ones particularly trade? will the trade war not only with china but today europe is in the news, usmca trade deal, that is still not passed, is that s

matt: christine lagarde speaking with bloomberg.he chair ofw is the finance committee in the german bundestag. let me first say thank you for coming in, really appreciate your time this morning. this is just seems to be not a good look. merging two banks that both have extraordinary problems and a plan that would result in maybe 30,000 or 40,000 jobs cut. how can berlin support this? >> well, as you know, we have six parties in the parliament, and there are some differences in the views on the merger, but there is an agreement on the fact that for most it should be a business case and not a political driven solution. of course, it is difficult, and you heard angela merkel, who already stood back a bit from merger plans because of the layoffs they would create -- having said that, i think there will be a restructuring of the banking market. me ask first off, you are a member of the free democrats. olaf schulz is a member of the spd. he is a member -- the head of the finance ministry. we hear that this whole plan was backed by he and

also in the programme we'll be hearing from christine lagarde, a warm welcome to the programme — briefingyou need to know in global news, business and sport. big tech admits its products are recording you and those recordings are being listened to by workers overseas. does this cross the line? or do you regard it as a necessary evil of machine learning? join the debate — just use the hashtag #bbcthebriefing. thousands of demonstrators have remained on the streets of the sudanese capital, khartoum, defying a curfew imposed by the military council which deposed president bashir. there have been weeks of demonstrations against mr bashir‘s thirty—year rule but his opponents want a civilian government to replace him. the military council said the army would oversee a two—year transitional period followed by elections. but there are many questions about how much will really change in one of the world's poorest nations. our africa editor, fergal keane, reports. the revolution isn't over, it simply has a new enemy. the new boss, general to past atrocities, declaring the old boss, president omar a

christine lagarde says there is a quote synchronized the celebration around the world.ut that a recession is unlikely in the near term. of that sentiment, slashing global trade growth forecasts. >> those uncertainties are holding back investment so on and so forth. the investment dampen the numbers for trade. to a largest that, u.s.-china extensions are the main source. >> algeria's president has resigned after weeks of mass protests and growing pressure. of the opece thrust member into uncharted territory. it is not clear if his resignation will be enough to call demonstrators. crowds in algiers are celebrating, chanting quote this is a start, but there's more to come. global news, 24 hours a day on air and on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. francine, back to you in london. francine: thanks so much. theresa may is signaling a change to her strategy. the prime minister is abandoning efforts to build support in her own party, instead reaching out to the opposition leader. the move drew criticism f

christine lagarde warns that even the patients that need it much more regulation and. we don't want innovation that would take them so much that we would lose the ability that we needed a teaching years a little here while the i.m.f. tried to help on helping developing countries for a need of large. personnel back in february the i.m.f. reached a four point two billion dollars deal with ecuador south american countries is already struggling with a large fiscal deficit and a pretty heavy foreign debt other country will also receive an additional six billion dollars in loan or a multilateral institutions this includes the world bank in or american development bank and the d.a.'s and development bank to predict what we need to feel as a potential factor in ecuador revoking the limit on the island just this month and today's meeting the i.m.f. is also expected to address it right then and now the head of the i.m.f. and the world bank are now faced with the big challenge on whether or not to recognize the opposition leader and self-proclaimed president as the country's lead

lets hear from christine lagarde.probable illusion that everything was fine, momentum was up, growth was in the air. and i did say a year ago, when the sun is shining, that was growth, please fix the roof. that was structural reform. forward one year, and we have adjusted our growth forecast by a significant amount, compared with a year ago. are we now forecasting 3.3% growth. which is far less than what we had hoped. and we are hoping for some improvement in the second half of 2019. but only if certain risks do not materialise. and those risks include anything from a hard brexit to renewed trade tensions, to financial market trepidations. those are big clouds on the horizon. she had some interesting things to say about finance? the imf will put out, in addition to the general global economic forecast, an assessment of the state of global financial stability. no immediate panic, but there are a couple of building concerns, three building consents they have. us corporate debt, in relation to the size of the economy, th

christine lagarde was asked about this. to president xi jinping's speech on friday, where he switched gears and started talking about all of the issues that are on the table in these negotiations. let's listen to christine lagarde. >> if you read very carefully at the end of the speech, there were a couple of paragraphs in which he is discreetly broadcasting what i believe will be announced in that deal. i mechanism between governments to make sure there is ample notation, and if there is implement asked if there is a pulmonary -- implementation, there is enforcement. we are being told that president trump could still walk away from the table if he is not satisfied with results. president she's -- x'i's right-hand man will can thank you -- continue to try to hammer home these deals. in terms of leverage and pressure, agricultural income income wast farmers' the weakest in three years. it's a small part of total but it's a important constituency for any elected official. especially for president trump, especially when his tr

christine lagarde with an uncertain outlook. in d.c. for the meeting.rry blossoms are out but when it comes to the global economic outlook, it is not breezy. -- pretty. kathleen: the nice cherry blossoms but bleak and gray monetary outlook because so many are saying including the imf and world bank is that the downside risk -- not upside, not balanced, to the downside. -- china-u.s.r trade war is one of these things. governor ofis what the bank of japan said. i had the opportunity to sit down with the new head of a bank, five weeks on the job. has come down, your currency not being beaten up like last year. when you meet in may, to you think you can cut the key rate? he didn't say yes but opened the door. >> anybody who works in government should look up to growth. [indiscernible] pricely have to focus on -- price ability. that is a priority. kathleen: are you concerned about that or inflation? >> inflation was 5.8%. right now it is under control. will belation this year in the neighborhood of 3%, plus or minus at this point. that will be the outlook fo

we heard from christine lagarde who is concerned about the e deceleration.he acceleratio >> we all worry how this implies for the global economy. we see in the last quarter of 2018, the deceleration is already detected and being discussed during our meeting, that this needs to be something that needs to be addressed by all policymakers. 2019 will be a different game from 2018. we are looking at more weakening global economic growth, and the theination of risks between u.s., also showing weakening, china, the second largest economy is already in the path of adjusting their rate at a the u.k. is and struggling, especially with brexit. we are anticipating the global economy will be in a weakening level of growth. the problem we will address is whether each policymaker in those regions have a policy space to respond, because if you remember, facing a weakening economy, do we still have fiscal space to do stimulus? do you on the monetary site have space for you to countercyclical? because the interest rates are still low, that is another concern about the ability of the policymakers. >> for i

world's second largest economy was regaining momentum >> on a related note, imf managing director christine lagardes told a milkin institute she expects the u.s. and china to reach a trade agreement. blackstone steve schwartzman echoed this view he is positive they will come up with something that works. he warned it would not be a deal that resolves all tensions between the two nations and says that a process of normalization would require more time. u.s. consumer spending in march, meanwhile, grew by the biggest level in nine and a half years data from the customers department showed that personal spending rose 0.9% last month, but the fed's preferred inflation measure, the personal consumption expenditures index, that rose 1.6% in march, and that is, of course, well below the central bank's 2% target >> larry kudlow said the slowing inflation opened the door for possible rate cuts the fed begins its two-day policy meeting in a few hour's time the u.s. central bank is widely expected to keep rates on hold as it sticks to a patient's stance we turn to -- pgim we are looking at the fomc's meeting k

i loved when christine lagarde said today, a year ago, we were talking about synchronized growth and now, we are talking about a synchronized slowdown. of course, you can look at the slowdown in europe and the risk it poses. ,hristine lagarde had hers trade tensions between the u.s. and china. you've got a buildup of debt, corporate and public debt and of course, the fallout from brexit. she said the extension granted by the eu to theresa may has averted -- she didn't say catastrophe, but something that could have been bad for the u.k. and the eu is not the world. on a brighter note, governor kuroda at the boj talking to reporters said the global economy is slowing down but he thinks the chinese recovery will start showing up in the second half. same thing for europe. fed officials speaking to bloomberg television today said the focus now for the fed is on hitting the 2% inflation target. there is a sense the fed is not going to move. you've got to get over the 2% rate or maybe there is no rate hikes for the rest of the year. the focus oneen, negative impact of the trade war between

christine lagarde saying it has weakened more since its last update.arious position for the global economy. global growth has lost momentum. the wto also slashing its outlook for growth to the lowest level in three years. it will slow to 2.6% world merchandise trade growth according to the wto. and 3% in 2020. ♪ >> today we have seen data showing german factory orders drop by the most in a decade. the german government slashed their own forecast. a bloomberg report says the italian government will do the same to it economic projection. half of the growth has been exports to china directly or indirectly. it will be several months more until we see a pickup in the chinese economy. that means the european situation remains dull on the economic side. >> you remember the enormous pressure untying assets because the government promised the european commission they could 1% and wouldomy keep the deficit below 2% of gdp. we understand the government will change and will cut the forecast a 0.1%. the italian economy will not grow in 2019, and the deficit will go