i.m.f. christine lagarde signaled that the i.m.f. will likely to downgrade their global growth growth all costs for next year two or three weeks ago but nonetheless at a time of escalating trade tensions high valuations for u.s. stocks particularly the tech sector and the fact that u.s. bond yields are on the rise and likely to push quite a bit higher investors of looks at the gap between u.s. bond yields and the dividend yield the trailing dividend yield on the s. and p. five hundred the nasdaq and basically concluded not on reasonably that that gap is too wide it's time for a little bit of profit taking head at the start of the earning season in the us which starts at the end of this week and i think there's a concern that an awful lot of these companies could well be guiding lower their guidance for the next twelve months and now is as good a time as any to take some money off the table and obviously that has affected the u.s. markets quite markedly now michael you mentioned the international monetary fund that has come out with a

i.m.f. christine lagarde has now pushed her trip to attend an international investment conference in south.

i.m.f. christine lagarde signaled that well it's a downgrade to global growth growth for costs for next year two or three weeks ago but nonetheless at a time of escalating trade tensions high valuations for u.s. stocks particularly the tech sector and the fact that u.s. bond yields are on the rise and likely to push quite a bit higher investors have looked at the gap between u.s. bond yields and the dividend yield the trailing dividend yield on the s. and p. five hundred the nasdaq and basically concluded not on reasonably that that gap is to why it is time for a little bit of profit taking head at the start of the earning season in the u.s. which starts at the end of this week and i think this. concern that an awful lot of these companies could well be guiding lower they guidance for the next twelve months and now is as good a time as any to take some money off the table and obviously that has affected us small case quite markedly now michael you mentioned the international monetary fund that has come out with a whole array of threats to the world economy we have the trade spat between the

i.m.f. christine lagarde and the u.s. treasury secretary. the business figures who pulled out are big names. the bosses of french energy giants e.d.f., j.p. morgan, and black rock, and the c.e.o. of uber. some of these companies will be represented by lower level staff. the list for those who confirmed they are going is shorter. pakistan's prime minister. also the french oil company total. they recently signed a $9 billion contract saudi aramco. the saudi minister admitted times were tough. >> we're going through a crisis of sorts resulting from the very regrettable and abhorrent incidents that took place in turkey. nobody in the kingdom can justify it or explain it. from the leadership on down, we're very upset. >> many american companies have chosen to stay away from the saudi conference. there are still major economic ties between washington and riyadh. namely in the trade of oil and weapons. emeril maxwell has more. >> saudi arabia has promised to retalant sanctions leveled against it. a threat that donald trump seems to have taken to he

i.m.f. chief christine lagarde even made a veiled reference to trump's remarks by defending central banks it's clearly. a necessary development for those economies that are now showing. much improved growth. inflation that is picking up the falling into the range or reaching the threshold and employments that of extremely low it's inevitable that. central banks make the decisions that. clash in ideals between the head of the international monetary fund and the u.s. president warnings that the global economy is slowing down and becoming unstable not to mention a continuing trade war between the us and china against this backdrop investor jitters are likely to enjoy. a chat about that with conrad bulls an avalanche a correspondent in frankfurt can read there's no doubt there are jitters but does this have the potential to get worse. well yes it does but despite all the assurances by so many economists that the fundamentals of the economy remain strong if you talk to people here on the trading floors they also remind everyone that the markets are navigating in uncharted territory for years prices

i.m.f. christine lagarde said yesterday she was asked if she thought about the world ahead of us which she really worried why she optimistically she concerned and she came back and said that she was desperately optimistic i you know i'd rather say that i perhaps or. let loose the optimist but pragmatically optimistic i think business is in this region business all around the world will be very pragmatic and the group will be the long term implications of these growing tensions between the us and actually i'm no fan of trade wars but my hope is that now this will become again even worse sustainable relationship between china and the u.s. and that will be a good thing going to see it thank you very much for your time so there are now we see that there are some growing pains that the global economy will face yes because of what's going on in attention to the united states and china but also just the evolving economy and the different economies that might have different place once this trade tension is finally subsided and we can move forward there scott thank you. bob and police arrested several lab

i.m.f. chief christine lagarde even made a veiled reference to trump's remarks by defending central banks. it's clearly. the necessary development for those economies that are now showing. much improved growth. inflation that is picking up the falling into the range or reaching the threshold unemployment that of extremely low it's inevitable that. central banks make the decisions that. they clash in ideals between the head of the international monetary fund the us president warnings that the global economy is slowing down and becoming unstable not to mention a continuing trade war between the us and china against this backdrop investor jitters are likely to enjoy or. there are clouds on the horizon for europe's leading economy germany slashing its growth forecast for this year and next to one point eight percent coming minister peter myers cites a weaker international trade environment as one reason that economic expansion for this year now stands at huff a percent lower than before half a year ago when was expecting growth of two point three percent this year. so a growth downgrade and fo

i.m.f. chief christine lagarde. what it is tempting to be a bit depressed about this perspective i am actually hopeful because there is a clear up or tight to improve and expand trade think of the flurry of welcome discussions and proposals to strengthen the w.t. you all think of all the new trade deals such as d.p.p. eleven. the regional african trade agreement and the progress made on the us mexico canada deal. progress in some areas yes but all this against a backdrop of a trade war between the united states and china. the world bank had a sober message about how the tit for tat tat response between the world's top two economies could top the contagion effect. protectionist trade policies can cause a chain reaction as more countries adopt similar measures. the global recovery is built on investment and there's a real danger that businesses will decide to wait for more clarity before engaging in new projects ten years after the last global financial crisis there's a whole new set of risks to the world economy. whe

i.m.f. christine lagarde many prominent c.e.o.'s have already pulled out of the conference nicknamed dark horse in the desert france also suspending political visits to riyadh leafy. the facts we know today are mr g.i. extremely serious and worrying we expect to throw light on this matter we have had exchanges with saudi authorities to clarify all this but in the current circumstances we have decided to postpone political visits including that of our economy minister. one other top story for you today thousands of palestinian protesters are expected to turn out for weekly friday protests along the gaza israeli border fence and this comes as an egyptian delegation met both israeli and how mass officials with hopes of mediating a lasting cease fire in the region brokered talks calm after a rocket was fired from the gaza strip that destroyed a house in bush on whedon's day up next it's mine in nigeria then i'm back with the news out a see that. al-jazeera . swear every. other. word. about. it. and it a screwdriver. and then the sun va

i.m.f. chief christine lagarde promised to supply funds. i agree but you are going to. go. soon after it was back to the usual order of business with the release of the i.m.f. salacious reports on the act look for global growth the spot between the world's top two economies drawing consequences not withstanding the present demand momentum in the us we have downgraded its twenty nine hundred growth forecast owing to the recently enacted tariffs on a wide range of imports from china and china's retaliation china's expected twenty nine thousand growth is also marked down another factor worrying economists is the rise in global debt in the last decade average national borrowings have risen from a brand a third of economic output to more than half that's an especially big concern for emerging economies many of which have seen money leave as a result of a rise in interest rates. with economic titans at loggerheads and developing countries under pressure the threats to global growth appear very real. or for some more analysis let's bring in our financial correspondent conor eyebrow

i.m.f. chief christine lagarde. what it is tempting to be a bit depressed about this perspective i am actually hopeful because there is a clear up or tight to improve and expand trade. think of the flurry of welcome discussions and proposals to strengthen the w.t. all think of all the new trade deals such as d.p.p. eleven the regional african trade agreement and the progress made on the us mexico canada deal what progress in some areas yes but all this against a backdrop of a trade war between the united states and china. the world bank had a sober message about it had a tit for tat terrorist spot between the world's top two economies could tap the contagion effect. protectionist trade policies can cause a chain reaction as more countries adopt similar measures. the global recovery is built on investment and there's a real danger that businesses will decide to wait for more clarity before engaging in new projects ten years after the last global financial crisis there's a whole new set of risks to the world economy.

i.m.f. chief christine lagarde even made a veiled reference to transfer remarks by defending central banks it's clearly. a necessary development for those economies that are now showing. much improved growth. inflation that is picking up the falling into the range are reaching the threshold and employments that of extremely low it's inevitable that. central banks make the decisions that. they clash in ideals between the head of the international monetary fund the us president warnings that the global economy is slowing down and becoming unstable not to mention a continuing trade war between the us and china against this backdrop investor jitters are likely to enjoy your. best friend in all markets correspond. conrad markets are plunging around the world how bad is it in frankfurt. well because of the german share in the stacks is down around about one percent this morning after having lost a bit more than two percent yesterday which is a lot but it's a lot less than the slump which happened on the market in the united states or many markets in asia that's one reason why a majority of this sea o

i.m.f. . chief christine lagarde have both canceled their planned attendance so as a joke as a c.e.o. of the german industrial john john simmons he has pulled out as well albeit only reluctantly. seaman c.e.o. decided to pull out of that conference only after criticism is growing louder especially from politics a little earlier i must. go he's a member of parliament for the business friendly f.t.p. and liberal party and i asked him if business should be voting itself with more also strictly stick to making money. specially be ensuring many. want to be new what it means if politics as it to extreme affiliation business and business respectively business politics i do not believe in milton friedman same the business of business is doing business business has also political responsibility business leaders arm are also moral leaders in our belt now with this. donald trump's latest threats over a new nuclear arms race as well as the full of following the murder of saudi arabia and journalist have made investors nervous also the looming standoff between roman brussels over italy's budget an

i.m.f. chief christine lagarde even made a veiled reference to transfer marks by defending central banks. it's clearly. a necessary development for those economies that are now showing. much improved growth. inflation that is picking up and falling into the range or reaching the threshold unemployment's that of extremely low it's inevitable that. central banks make the decisions that. a clash in ideals between the head of the international monetary fund and the us president warnings that the global economy is slowing down and becoming unstable not to mention a continuing trade war between the us and china against this backdrop investor jitters are likely to enjoy. a chat about that was conrad booze enough financial correspondent in frankfurt conrad is no doubt there are jitters but does this have the potential to get worse. well yes it does but despite all the assurances by so many economists that the underlying fundamentals of the economy remain strong if you talk to people here on the trading floors they're also remind everyone that the markets are navigating in uncharted territory for

i.m.f. chief christine lagarde weighing in on why all trump was wrong to criticize the fed it's. a necessary development for those economies that's all no showing. much improved growth. inflation that is picking up and falling into the range or reaching the threshold unemployment to the top of extremely low it's inevitable that. central banks make the decisions that they make. their mess christine legarde speaking there now for more let's cross over to our correspondents at the i.m.f. world bank meeting in bali florian how are people reacting to the head of the i.m.f. essentially telling the u.s. president you don't know what you're talking about. well i would say that christine legarde is in very good company here at the i.m.f. annual meeting she has basically just voice what everyone here has been saying yesterday who was the french the e.u. commissioner who we see used to be for prime says finance minister show he did so he also knows what he's talking about and he basically said that the trade war bad donald trump has started is stupid so even though donald trump is not here

i.m.f. chief christine lagarde even made a veiled reference to trim three months by defending central banks. it's clearly. a necessary development for those economies that are now showing. much improved growth. inflation that is picking up and falling into the range are reaching the threshold unemployment. extremely low it's inevitable that. central banks make the decisions that. clash in economic theory between the head of the i.m.f. and the u.s. president warnings that the global economy is slowing down and becoming unstable not to mention a continuing trade war between the u.s. and china against this backdrop investor jitters are likely to endure. let's go straight over to our financial correspondent yens cotton now he is on the wall street yen for the blame game is afoot chump hitting out at the federal reserve and its interest rate policy are they the guilty party here. well it is possible that the rising interest rates might be a damper on economic growth here in the united states but the big question is the why of the federal reserve increasing interest rates and that is partly becaus

i.m.f. chief christine lagarde both council attendance joke a c.e.o. of german industrial john siemens has pulled out as well albeit reluctantly. so what to do with saudi arabia let's bring in thomas not about he's a member of parliament for the normally business friendly opposition liberal party which has business leaders to pull out of that conference misses of a bag as opposed to ok as i said if we stop talking to countries where people go missing we can stop doing business altogether china for example isn't exactly friendly with a position journalist neither is to the philippines is your party now saying we should stop doing business with china for example. well i'm not only talking as a politician at all the us talking is somebody who of us serving for fifteen years on the board of management of major corporations. i think kayser even at the beck that the whole public opinion the political scenery all around the world distance itself from saudi average saudi arabian king to be all trying to take jams. to distance itself from participation. doing b

i.m.f. chief christine lagarde even made a veiled reference to trump's remarks by defending central banks it's clearly. a necessary development for those economies that are now showing. much improved growth. inflation that is picking up and falling into the range are reaching the threshold and employments that of extremely low it's inevitable that. central banks make the decisions. a clash of ideals between the head of the international monetary fund and the u.s. president warnings that the global economy is slowing down and becoming unstable not to mention a continuing trade war between the us and china against this backdrop investor jitters are likely to enjoy. the road for more let's bring in our correspondent corner booth and standing by at the frankfurt stock exchange corner of stocks are down across the globe give us the word from there frankfurt trading floor. well here in frankfurt the german share index stacks of a is really one percent that's adding to a loss of two point two percent yesterday which is of course a lot but it's a lot less also them what happened in the united states o

i.m.f. and christine lagarde the people of palu what the future for them must still be pretty bleak. it is at this stage peter now it's very it's you know this marks now that at sunset it marks the end of the transition of the rescue search operation it now goes into the rebuilding operation it is as you heard from in terms of the good that is the second general the united nations there and if we've been speaking with here they see that it's very important that that transition is made obviously it's a sad moment because that means they have decided there will be no one else found alive so they're transitioning now from searching to rebuilding but what is important a lot of people here say and that is that that rebuilding process starts local economies start rebuilding and mo and people start going back to work to slowly get back to normal life because if money they say here this is an economic conference they say is critical to get these villages even the small small villages back up on their feet is the economies need to get going people need to be working so they can make money so

i.m.f. says that christine lagarde is deferring middle east trip which was to have included her attendance at the event dubbed force in the desert. one palestinian has been killed three others injured after israeli forces launched airstrikes on gaza according to the israeli military they were targeting a group of fighters who. of firing rockets towards israel overnight rockets were fired from gaza into southern israel where a house was hit injuring at least three people israel's defense minister ordered the closure of the tears and killing abu salim crossings following the attacks let's go live to west roustabouts there is harry force that can tell us more what's sparked all of this well that if course is a major unanswered questions so far at a time when obviously the situation the security situation between israel and hamas is extremely sensitive israel is responding very forcefully to what took place overnight this rocket strike on a house in the city of bush over some forty kilometers away from the gaza strip they see this as a major escalation so a second time that a rocket has been fire

i.m.f. chief christine lagarde even made a veiled reference to trump's remarks by defending central banks it's clearly. a necessary development for those economies that are now showing. much improved growth. inflation that is picking up the falling into the range are reaching the threshold unemployment's that of. extremely low it's inevitable that. central banks make the decisions that make a clash in ideals between the head of the international monetary fund the us president warnings that the global economy is slowing down and becoming unstable not to mention a continuing trade war between the us and china against this backdrop investor gestures are likely to enjoy or. well any respect to our financial correspondent quality that was in their front foot and asked him how european markets were fairing. if you talk to people here on the trading floor they also remind you. that our. territory. and the market. monetary policy is more or less take the ball out of that. nobody can predict what's going to happen. to prefer extraordinary. our financial correspondent ali had a bruise in that whole germ

i.m.f. chief christine lagarde even made a veiled reference to trump's remarks by defending central banks it's clearly. a necessary development for those economies that are now showing. much improved growth. inflation that is picking up and falling into the range or reaching the threshold and on time and that of extremely low it's inevitable that. central banks make the decisions that. a clash in ideals between the head of the international monetary fund and the us president warnings that the global economy is slowing down and becoming unstable not to mention a continuing trade war between the us and china against this backdrop investor jitters are likely to enjoy. and there are clouds on the horizon for europe's leading economies germany slashing its growth forecast for this year and next to one point eight percent economy minister peter i my side so weaker international trade environment is one reason projected economic expansion for this year now stands at one percent lower than before half a year ago but there was expecting growth of two point three percent this year. so a growth downgrade

i.m.f. says that christine lagarde is deferring her middle east trip which was to have included her attendance at the event dubbed davos in the desert. one palestinian has been killed three others injured after israeli forces launched airstrikes on gaza israeli military says that it was targeting a group firing rockets israel's defense minister ordered the closure of the edges and chem abu salam crossings following the attacks in which three people injured. chinese state media has released video of internment camps for weaker muslims in the western province of shin journey despite international criticism the government has defended its treatment of the minority group it claims that it's really educating people so that they can be part of a modern civilized world up to a million weekers of reportedly been detained in the camps and election candidates has been killed in a bomb attack in afghanistan as violence threatens to disrupt saturday's elections the blast happened in the southern province of helmand at least ten candidates have been killed in the run up to the election but hundreds of peop

i.m.f. essentially telling us president you don't know what you're talking about. well i would say that christine lagarde is in very good company here at the i.m.f. annual meeting she has basically just voice what everyone here has been saying yesterday who was the french the e.u. commissioner who we see used to be francis of finance minister so he did so he also knows what he's talking about and he basically said that the trade war bad donald trump has started is stupid so even though donald trump is nonsense here he's basically taking center stage at these meetings here and there's a lot of consternation about what he might do next time for a new mention of one of the big topics of this meeting is the trade dispute between the united states and china what ways of solving the problem are being discussed. well as head of the. all who is also here yesterday said he says i don't see any light at the end of the tunnel right now apparently there is no direct bilateral talking between the u.s. and china so the am i am happy that the world bank here that. they might be able to create a forum where these two su

i.m.f. christine lagarde has now pushed phoned her trip to attend an international investment conference in saudi arabia she did not specifically state that it was because of the shock she case but has said that she was horrified by his disappearance a number of global business and media leaders have already announced they are boycotting the event. european council president donald two scans demanded that british prime minister theresa may make concrete proposals for ending the brics that impasse said new facts really needed to move forward the e.u. has twenty eight leaders begin a two day summit in brussels on wednesday may's cabinet has been holding talks in london to prepare we're going to deal with three. officials in morocco say at least seven people were killed and dozens more injured in a train derailment near the capital rabat the train was traveling on the busy coastal line connecting the capital to the town of kony tra the cause is still under investigation. turkish investigators say they have evidence that these all the journalists from all concepts she was murdered inside the sa