the imf had praised efforts to deal with the euro crisis but said the work is far from over. >> from the imf perspective, we believe that more needs to be done in order to really complete the architectural job of the eurozone. and monetary union, a banking union, followed by a fiscal union. >> christine lagarde warned that the imf believes the world economy will continue to weekend, it would cut its growth forecast in its upcoming global outlook. >> in the market here in europe ended the week on a sour note. investors are concerned about a slowdown in the united states after it posted weaker than

the imf director called on the u.s. to review its belt tightening measures and pointed out downside risks for the global economy. her statement follows the imf release of an annual study of the u.s. economy. >> too strong a contraction of the u.s. economy as a result of say the realization of the fiscal cliff will have significant spillover effects outside of the united states. >> the imf report says the u.s. recovery remains tepid and growth is likely to remain modest in the next few years. the u.s. tax breaks and cuts in government spending are downside risks. both measures are schedule ford early 2013. the imf cites it could push the u.s. economy into negative groechlt growth. it is critical to assure fiscal development in the short run so ongoing recovery will be supported. >>> ir leland is to return to t bond markets this week first time in two years. the guchlt under a ballout plan says it will offer three month bills thursday and will raise $630 million. the move comes as irish government bonds are selling well i

. >> meanwhile, the head of the imf is issuing a sharp warning that europe is not doing enough to get its debt crisis under control. >> speaking in doug kolk, christine lagarde says the local economy is slowing as a result, and of the organization would lower the economic growth -- >> what is needed to get this edition under control? she's pushing for europe to integrate even more by completing its monetary, banking, and fiscal union. >> are we safe for today -- safer today than at the time of the lehman brothers crisis? i would say not quite yet. >> christine lagarde said banks should be financing the economy and helping to stabilize it. she criticized banks that failed to reform following the lehman brothers collapse in to douse any. the imf had praised efforts to deal with the euro crisis but said the work is far from over. >> from the imf perspective, we believe that more needs to be done in order to really complete the architectural job of the eurozone. and monetary union, a banking union, followed by a fiscal union. >> christine lagarde warned that the imf believes the world eco

up next, a stern warning to the america from the head of the imf. what she says we need to do and when we need to do it. and then taking stock of america's mojo. meeting with ed rendell. how the stock market ended the week. [ male announcer ] this is the at&t network. in here, every powerful collaboration is backed by an equally powerful and secure cloud. that cloud is in the network, so it can deliver all the power of the network itself. bringing people together to develop the best ideas -- and providing the apps and computing power to make new ideas real. it's the cloud from at&t. with new ways to work together, business works better. ♪ stay in the moment sanya focus lolo, focus let's do this i am from baltimore south carolina... bloomington, california... austin, texas... we are all here to represent the country we love this is for everyone back home it's go time. across america, we're all committed to team usa. >>> welcome back. christine he will forward, the director of the international monitor fund and former finance minister of france. i spo

the imf is not a passive observer there. you're going to have to put the credibility of the organization on the line if spain or italy asks for a bailout. what are you going to do about greece? the reports are it's failed to implement 210 of its 300 budget-saving requirements. three-quarters of the country in a poll overtime weekend want to rewrite the deal that you already have with them. moody's says greece may exit. how far are you willing to bend for greece? >> well, we're not at that stage yet. we had a mission on the ground. they have come back. it's clear they didn't quite fully satisfy everything we wanted in the recent past. i think the first issue is how to get the program back on track and then we can see whether there are any adjustments to be made. >> but there are bills due in greece and way off track. that's the issue. can you give them more wiggle room? >> well, we'll see. we're going to discuss with them. >> over what sort of timeframe? >> we have a team going there, i think, on the 24th and they will be the

imf managing director christine lagarde spoke in tokyo on friday. she said japan needs to cut spending and further increase taxes. earlier last week, the lower house of parliament passed bills to raise the consumption tax. >> this is a very good, solid way to address fiscal consolidation needs. it's not, in and of itself, sufficient, even at not only 8% but 10% or other measures -- other fiscal measures will have to be considered. >> lagarde also reiterated the imf's view that the yen is moderately overvalued. >> if there was further deterioration in the world economic situation, particularly arising out of developments in the euro crisis, this might have an unwelcome currency effect on the yen, which would yet again be used as a safe haven and, therefore, would be even further overvalued. >> the imf now expects the global economy to expand less than the 3.5% annual growth it anticipated in april. lagarde said the lower growth estimate is due to deteriorating economic activities, not only in advanced countries, but in emerging economies as well. >>>

. >> what's interesting in the imf forecast looking at sub2% global growth this year and next embedded in that was the belief that there's going to be massive stimulus in europe, which we still haven't seen. so i think the way you trade this is continue to stay away from stocks like cummings. it had a great pop. now it's trading down today. stay away. it's not that cheap. caterpillar maybe we'll talk about that a little more. that's the global growth stock.

. >> that's imf managing director, christi christine lagarde. don't miss my interview coming up right here. accolade overdrive. zagat just gave hertz its top rating in 15 categories, including best overall car rental. so elevate your next car rental experience with the best. it's just another way you'll be traveling at the speed of hertz. >>> welcome back. sound like barclays ceo, bob diamond was face battingle for his job. in two letters he said he was disappointed about the rate fixing scandal despite signs he and other senior management were involved. >> that letter to reassure employees only turned out to anger them and some even began plotting to force diamond to step down, which he ended up doing anyway. our senior editor, john carney, learned more about that. what was happening in the u.s. >> when he released the letter, which proclaimed multiple time, i love barclays and his commitment to stay on board and right the ship. i think he meant to strengthen his position at the bank and reassure the employees and had the exact opposite effect.

the imf sees a slight recovery in europe next year. but it warns there could be a problem if the eurozone fails to rein in its spiraling debt. >> the jailing of a german citizen in beijing has caused questions about the rule lot. >> the man has been sitting in prison for months now and has yet to be charged. >> he has lived in china for five years. he has been the last 100 days in beijing prison -- in a beijing prison. he categorically denies all accusations of wrongdoing. his friends in germany are working. >> we feel so helpless. we can do anything. we wake up at night, we dream he has been set free. >> his friends have set up a facebook page in his support. german officials are refusing to comment. >> i can say anything about it. especially our talks with chinese officials. >> justice ministers will bring up the case in meetings with chinese interviewer's. >> a scandal that has rocked germany's intelligence services has cost it another top official his job. >> it goes back to the discovery domestic intelligence failed to notice a se

imf chief christine lagarde warns some of the world's major developing and emerging markets are slowing. >>> okay, so, we're off to the last trading day of the week. we finished with a bang, and what a week it's already been. >> i'm going to start calling this show "anchor exchange." >> yeah. >> it's finally to be back here, the two of us hanging out, just like old times. >> it is. i like it, i like it. and do you like the uncoordinated/coordinated action yesterday that didn't get anybody going? >> that's what to me was quite amazing, that you had such action from so many global central banks and markets still went, eh, we want more. >> markets are high this morning. >> spain in particular. >> planning to get through, as well. >> and coming up, we are live from seoul with details on samsung's record quarterly performance. >>> and one of the stocks today that is in focus is listed as a buy. find out what other names he's bullish on. >>> tokyo is where christine lagarde is meeting with the japanese government as finance minister azumi warns the state will run out of money unless lawmakers

a former imf chief rodrigo rato. we speak with organizers of the historic may 15 movement, the indignados. >> maybe, eventually, maybe one of these guys will pay. we have this impression that no one -- they do what they won. they still, like, nothing happens. today, maybe, something will happen. i'm very happy. >> all of that and more coming up. this is "democracy now!," democracynow.org, the war and peace report. i'm juan gonzalez filling in for amy goodman. nato supply convoys have resumed in pakistan after the u.s. finally apologized for a deadly attack that occurred last year. pakistan had barred the nato trucks that carry supplies for the afghan war after u.s. forces killed 24 pakistani troops in november. on tuesday, the obama administration dropped its longstanding refusal to apologize, ending a more than seven-month standoff. the pakistani information minister said the apology had met pakistan's demands. >> america has accepted pakistan's principled stand on an apology and has agreed to work in unison with pa

her statement follows the imf's release of a study on the u.s. economy. >> too strong a contraction of the u.s. economy as a result of the realization of the fiscal cliff. >> the report says the u.s. recovery is likely to remain modest over the next few years. the end of u.s. tax breaks as well as cuts in government spending are cited as downside risks. both these measures are saying this could push the u.s. economy into negative growth. it's critical to have fiscal adjustable in the short run. >>> executives are struggling renesas electronics have come up with a restructuring plan. renesas will cut jobs at their firms. it will slash more than 5,000 jobs in september mainly through voluntary early retirement. thigh also plan to close eight of the plants. the company aims to sell some of those factories instead of closing them to minimize the damage to regional economies. the company will also divert resources from unprofitable divisions to its core businesses. it hopes to begin negotiations soon to consolidate its loss making lsi chip business wi

imf, christine laguardia in a first on cnbc interview.ited states and a lot more. first rick santelli, what have you got? >> i'll tell you what we're working on. on the mark, get set, pursuit of this camera. the entire santelli exchange today is going to be about the word pursuit and how it is at the epicenter in what, in my opinion, we need to fix with regard to the country and happy birthday, america 236. god bless america. come back at the top of the hour. [ male announcer ] now you can swipe... scroll... tap... pinch... and zoom... in your car. introducing the all-new cadillac xts with cue. ♪ don't worry. we haven't forgotten, you still like things to push. [ engine revs ] the all-new cadillac xts has arrived, and it's bringing the future forward. zagat just gave hertz its top rating in 15 categories, including best overall car rental. so elevate your next car rental experience with the best. it's just another way you'll be traveling at the speed of hertz. we believe the more you know, the better you trade. so we have ongoing webinars

even the imf projects china's growth rate will be more than 8%. and you have -- and the sort of sociological game which i find very quarrying is this thing about when china will overtake the u.s. all sorts of arguments which are going on around this in terms of 2018, 2021. all based on this straight line extrapolation, 8% gdp growth. currency will appreciate a bit. so in dollar terms it is only a matter of time that china overtakes the u.s. economy, and this is completely ignoring the fact that we have gone through this entire time in economic history that often at this stage of economic development things get much tougher. the middle income trap. a separate concept in the much debated concept. i'm talking about a middle income deceleration. the world is not prepared for some of this, it's especially some of the commodity exporting countries. they have now come to believe that where it in some sort of massive commodity cycle. back to, you know, these arguments about how the world is running out of everything from oil said it reached a corn because

questions about the ongoing involvement of the imf. they need to see debt to gdp down to 120% by 2012. that also raises questions about the next installment tranche, if the imf can be involved. if there cannot be writedowns there will be need for additional financing and additional writedowns. it's where they come from. back to you. >> thanks very much for that. it doesn't help moody's has cut outlook on eurozone's temporary bailout fund to negative from stable. they say the move follows on from a similar action taken against germany, netherlands and lument u luxembourg, all guarantors of that. >>> meanwhile, in europe you can see dow jones stock behind me, just about weighted to the upside. we saw this morning, they came out and said there were good reasons for discussing debating whether the asm should be given a banking license. that took us up to the session high today. but you have to remember, this follows losses, ftse down 3.7% the last three days. it's down today. dax down up 0.3%. ibex up 1.8% after heavy losses. let's talk ab

. >>> i think it is critical for two reasons, the investments from the imf to the banks, as a result it does not impact on the sovereign debt level of that sovereign, which is what spain was so concerned about. that is number one, number two, it goes directly to the bank, i mean they're going to define how it is organized and whether they hold shares, or any other instruments that would be convertible into the capital banks, depending on the status of the banks. it will consolidate the banks and help them to lend appropriately to the real economy. and it is what the esm should be doing wiwith its money. >> what else needs to be done in terms of creating that confidence that you have been talking about so much, to stabilize th markets? >> so direct involvement from the esm into the banks. that is under way. banking union, that is clearly the target. it is not enough. we think that fiscal union is the next step that they need to explore. ththe one step at a time proces is a annoying, disconcerting, we would like more to happen, because that is the spirit of the times, to move fast, and

. >> lagarde also reiterated the imf's view that the yen is moderately overvalued. >> if there was further deterioration in the world economic situation, particularly arising out of developments in the euro crisis, this might have an unwelcome currency effect on the yen, which would yet again be used as a safe haven and, therefore, would be even further overvalued. >> the imf now expects the global economy to expand less than the 3.5% annual growth anticipated -- it anticipated in april. lagarde said the lower growth estimate is due to deteriorating economic activities, not only in advanced countries, but in emerging economies as well. >>> japan's key economic indicator fell in may for a second month in a row. this was partly due to a drop in car output for the european market. the cabinet office says coincident index showing the current state of the economy fell 1.2 points from april. the index is derived from economic activity such as corporate production and employment. looking ahead, the forecast for the economy, however, looks a bit brighter. the leading index was up by 0.3 points. th

imf lowering 0.1%, credit suisse tugt 2% and goldman cutting tracking estimates by .2%. this was a similar question last week when deutsche bank ahead of everybody in this group we particularly mentioned and cut his by a full point. the street taking their estimates down. this should come as no shock. >> since march. we peaked in march, lower jobs data. the only good piece of the economy is housing. that's actually held up pretty much. it will be interesting to hear from some of these companies in housing, was it a pull forward in the first quarter or does the momentum continue throughout the year. we're betting it stays strong. >> steve weiss, how do you trade pulling down of growth forecast. >> what's interesting in the imf forecast looking at sub2% global growth this year and next embedded in that was the belief that there's going to be massive stimulus in europe, which we still haven't seen. so i think the way you trade this is continue to stay away from stocks like cummings. it had a great pop. now it's trading down today. stay away. it's not that cheap. caterpillar

domestic effects would be severe with negative spillovers to the rest of the world. >> so basically imf is saying that if you don't come off of this fiscal cliff and by you i mean congress, it is going to add to uncertainty, and there are certain things like obama care and regulations, fine and you won't get the democrats to agree on that, but something that congress could do is to do something about the on coming train that everyone sees coming, but yet, no action. >> what is going to happen is that the house is going to do is to extend the current tax rates this year, which deals with part of the problem. >> the president said he would veto it. >> but he shouldn't veto it, because he signed it two years ago saying that it would make the economy worse. look, the principle reason that we have an economic trough is what the government is doing to the private sector and the president is talking about public sector employees and that is 4.2% employment, and that is only the way you have job growth to create revenue for the government. everything that the administration has done,en us i dir

domestic effects would be severe with negative spillovers to the rest of the world. >> so basically imf is saying that if you don't come off of this fiscal cliff and by you i mean congress, it is going to add to uncertainty, and there are certain things like obama care, you've mentioned it, regulations, not going to get the democrats to agree on it, but something that congress could do is something about this oncoming train which everyone sees coming. and yet there's no action. >> well, what we could do, what they're going to do this week, i believe, is extend the current tax rates this year, which deals with part of the problem. >> the president said he would veto it. >> but he shouldn't veto it, because he signed it two years ago saying that it would make the economy worse. i mean, look. the principle reason that we're having this economic trough is what the government is doing to the private sector. the president keeps talking about public sector employees. unemployment in the public sector is 4.2%. we've got to get the private sector going. that's the only way you have job growth wh

imf managing director christine lagarde said america's economy mapindcea si r. euantcr a exngs ad effect at the end of the year. e presented the report's findings at imf headquarters many washington c. w g mnger m jic

now, this figure is even lower than the estimate by the imf. also lowered next year's gdp forecast to 3.8%. the deputy governor says downside risk outweighs the upside factors as exports look weak against china, europe and the u.s. a private consumption is also looking sluggish on the back of a growing household debt and the slumping market. market experts say all of this signals more room for another rate cut in the next few months, especially as the bok slashed this year's headline inflation to well within the central banks' target ban. import prices for june also posted their sharp et fall in 27 months. of course, easing inflation pressure. back to you. >> thanks very much. >>> now let's get a quick check on what's on the agenda next week. on monday, they'll release foreign investment figures. the country is also expected to hold a bond auction. india, meantime, will post its june whole sale prices. >>> peugeot shares being hit after the group posted a 13% drop in first half sales. now, the ceo has asked the government to lower labor costs f

the imf releases its outlook today. lower estimates for lower economic growth could fuel fed action. in earnings the last four big banks, citigroup, goldman sachs, bank of america and morgan stanley. investors will watch for struggling yahoo! tomorrow. without a ceo since may, the company suffered a massive hack exposing log-in information for half a million users. >>> general electric, considered a bellwether for economy, and retail sales figures are due out today that and cpi should give a gauge of current consumer karma. jobless claims would bring it back into focus on thursday and ipo are slalted for palo alto, fender and derada therapeutics. palo alto is expected to attract the most interest. the price of a gallon of gas dropped seven cents over the last few weeks snoou. >>> comcast has acquired microsoft 50% stakes in the website msnbc.com. it is now nbcnews.com. >>> one man does it all for the nationals and one man is posing problems for the new york knicks. >>> plus, one yankee slugger loses his grip. your early

the former spanish economy minister and the ex-head of the imf testified. >> spain's property bubble has taken a heavy toll on the property sector. >> the 's biggest banks without $2.8 billion in bad loans. >> the banks are hesitant to approve the new mortgages. >> many people can only dream of living along the coast of catalonia. of the many apartments there are vacant, interested buyers often face hurdles. >> when you go to a bank to apply for a mortgage, they put up a lot of obstacles. they make it seemed unobtainable. -- seem unattainable. >> despite low prices, many properties remain unsold. there's a reason why many prospective buyers are rejected by banks. three hours later, they call my clients and offer them a loan of 200,000 euros instead of 150,000. in the end, they sell them apartments owned by the bank. a total of 700,000 homes better currently on the market in spain -- a large number of them belong to banks. >> the 70-day olympic torch relay was carried across london's landmarks today, dashing street, shakespeare's globe theater. -- downing street, shakespeare's globe t

will -- [inaudible] money from imf. under a similar crisis as the ropeoues fng cutlas tna disir d coueon t dend imf has made great progress over the recent g20 summit regarding raising more contribuon from member uns. wesot d ri i ndd t cseba meman etsra concerns about the fact that u.s. government decided to shy away from such responsibility. diormf ws ctor,sa en u of rionhou ks >> you know, i'll look forward to reading this book, of course, quonteain , uxact tme owenre in bant dei - an w asked by one of ur colleagues, you know, is the u.s. going toorrow from the imf? un ri- edothwas we woun'tve atmerun any kind of progm. but clearly, that shows that that was a very far-fetched and very, very hypothetical question. aneihe -- to avoid the obstacles, the hures and the traps that arein any yoe pou tn rionirf i ryas v grateful to all those who contributed that we could actually increase the reurces of the fund 56liyayfat an ciofat l voluntary. whoever wants to participate participates, and the amounts are not predicated on

. >>> a warning from the imf about the economic recovery or lack there after.with what this means from the rest of this. from ali's playlist, a little brun no mars. >>> welcome back, poppy harlow with today's top stories. >> the heat wave and power outages continue. more than 1 million waking up without air conditioning, when they need it the most. temperatures expected to be in the mid to high 90s with even more stifling humidity from st. louis all the way to philadelphia. at least 20 people have died since thursday when deadly storms slammed the east and the midwest. meantime, police in france are looking into whether former president sarkozy received illegal campaign contributions. they raided his home and offices yesterday while he was vacationing in canada. they are investigating loreal cosmetic's betten court and the staff to see if they helped during the presidential campaign. >>> the runner up in the election in mexico is demanding a recount. suggests the vote was plagued by irregularities, nieto is the president elect. they are verifying individual pol

of decline but orders are still down for the year and today the international lending organization, imf.s. economy could fall back into recession next year if lawmakers don't work to cut spending and avoid tax increases. ed henry is live at the white house. we are scheduled to get the june unemployment report later this week. with the election looming there are folks that are paying close attention. >> reporter: they are because you are right. this is going to be a big issue to shape the fall campaign, frankly, between the president and republicans. the may jobs report that came out at the beginning of june was pretty devastating for the administration and set them off on a bad month. you mention the imf chief, she gave a news conference in which he basically said the unemployment situation is such in the u.s. right now that it shows it's a very, very slow recovery. >>> u.s. economic recovery is tepid. it is recovering we are in positive territory but it is tepid. >> reporter: problem for the administration some economists are saying that if there is another bad employment report on fri

there is the issue of the imf loans and other ways that certainly we would not hold them hostage, but certainly egyptians have to understand that the american congress controls the purse strings would be frankly disinclined if we see some kind of serious breakdown here. do you see my point? >> i do. basically, unless democracy proceeds in a way that congress approves of in egypt, aid to egypt might suffer. >> it might, but you want to be careful how you use that cudgel because it could spark a very adverse reaction with the egyptians and make things worse rather than better. i think our attitude has been correct towards egypt right now. president obama and secretary clinton. we want them to move forward and resolve these issues, but we also have an obligation to our taxpayers as well. >> let's talk about syria. kofi annan said that iran can play a positive role and should there be -- should therefore be part of the solution in the syrian crisis. can you imagine the u.s. working with iran to stop the bloodshed in syria? >> they have had people on the ground, as you know, if they lose s

the imf shows its report today. >>> in earnings the last four big banks report this week, citigroup, goldman sachs, bank of america and morgan stanley. investors will also watch for struggling yahoo tomorrow. without a ceo since may after a resume scandal the company suffered a massive hack earlier this month exposing log-in information for half a million users. >>> finishing off the week reporting friday general electric considered a bell weather of the economy. as for data, retail sales figures are due out today. that and the consumer price index up tomorrow should give a gauge of current consumer karma. weekly jobless claims will bring employment back into focus on thursday. >>> this week ipos are slated for palo alto network, guitar maker fender and durota therapeutics. palo alto is expected to attract the most interest. >>> the average price of a gallon of regular gas dropped about 7 cents over the past three weeks. >>> finally, there's a big change on the web this morning. comcast, the owner of this network, has acquired microsoft 50% stake in the site msnbc.com. it is now nbc

the imf gives its world economic outlook at 9:30 a.m. eastern.what rhetoric they use around stimulus and austerity. may business inventories are out at 10:00 a.m. and on the earnings front, charl charles schwab, gannett, jp hunt and contributeas all world. >> and citigroup reports second-quarter results at 8:00 eastern, forecast to earn about $18.7 billion in revenue. citi may be hurt, though, by lower trading revenue because of the slowing global economy. finalchael and mary jo as well. what will citi give investors today? >> it's the middle of the month, middle of the week,dle of the year. this is the kind of market that starts to trend and really show you where we are going forward and i think citi will show they had the chance to at least run with the ball with lower rates and massive revenues and they're starting to drop it, and i think the financials will drag the market with it. >> what do you mean they had the chance and dropped it? >> i mean, too big to fail was a gift, and citi was one of the many recrip cants of that and they grew the

are we supposed to be paying attention to what the imf i warning or not? >> the imf has not been particularly the best source of views of the next six to nine months. they are bringing up the key point, which is when we had a 4% economy, maybe we could dillydally with this brinksmanship we had last summer. you know, where we were not going to extend the debt limit, and therefore we were going to shut government down. look what happened. the markets convulsed and we were literally up the brink. we can't do that now because we have 2% economy, if that. and we never really ever addressed the issue. these people signed their names, signed their land, there will become they took risks. right now our leadership is not taking risks and. megyn: the imf is saying that we are headed for a fiscal cliff in this country, and that even if we keep taxes low, and continue spending so that there is more and more money coming into the economy, we will still be in trouble. they're talking about how that will avoid a depressed economy. it will not even avoid it. >> we had a b

at 7:00 eastern, imf's report.7:30, challenger job cuts. 8:30, weekless jobless claims out there, expected to drop by 1,000 to a total of 385,000. and then at 10:00 a.m. eastern, the june ism services index is released. looking for a reading of 53, down around 0.5 point from may. beccy. >>> the shard set to open in london. some suggest the opening of tall buildings are followed by economic downturn. one of you e-mailed in says i believe the tall building and the olympics work hand in hand to predict gloom and doom for the economy. if you want to join in on the conversation, a couple ways to get in touch with us, e-mail, worldwidecnbc.com or follow the show @cnbcwex or contact us directly, @rosswestgate or get in touch with me directl directly @beccymeehan. >>> head along to twitter and let us know what you think about that. >>> still to come, we hear from the executive chairman of the jamir group in dubai. more when we come back. and there's lots of cool stuff happening with progressive mobile. great! tyler here wi

debt ceiling was raised congress demanded certain tax increases and spending cuts, if that happens the imf says that that will be too sharp of a hit to the economy. >> you mean they want sensible behavior from american politicians? thank you, john. >> can you believe that? [laughter] >> they you very much. >> pleasure. >> today the obama administration announced that pakistan is reopening its vital supply line into pakistan, the decision comes after pakistani troops were killed in a nato airstrike, prompting the closure and opening a major rift with the united states. then they formally apologized for the strike and the pakistani is reversed course. >> park and i go, this has been the picture since last november, convoys bound for afghanistan at a standstill. vitally needed supplies going nowhere. now the traffic starts moving again thanks to one long awaited word from washington -- sorry. the u.s. apologize for the killing of 24 pakistani troops in air strikes near the afghan border. hillary clinton called the pakistani foreign minister to say sorry for the losses suffered by the pakistan

a national association of business economists survey and an imf warning on europe. trickling through somehow. >> yeah. so the retail sales data is not isolated. it is out there. with the imf downgrading the world outlook but that's because essentially q1 came in better. q2 is the problem and the big declines not so much in the advance markets but there are some there but the emerging markets, brazil, india, to a lesser extent china with 8% growth this year expected. we're cutting because of retail sales and other data, cutting back on the q2 forecast and two thirds of companies in the survey expect sales hurt by the european financial crisis and the u.s. fiscal cliff, 8% plan to hire down from 26% in april. >> thank you very much. sue? >>> well, an already weary consumer might have another reason to think twice before shopping. more and more states moving to new sales tax of purchases made online. you can blame it on struggling state budgets. many republican governors s opposed to the taxes are giving in. courtney, a lot of people thought it was inevitable. how much