imf managing director christian lagard. at the international monetary fund headquarters in washington d.c. with the latest imf report, specifically on the united states, its recovery, growth, and independence of cider downside risk that the imf sees in a fox business exclusive. we are here with christine lagard who is, of course, the managing director of the imf. thank you for joining us. >> my pleasure. cheryl: - >> in this report i see a bunch of optimistic revelations, but some pointed observations about everything inved, the sequestration, our growth. let's start first with the u.s. recovery specifically. you say in the report that the nature of it is changing. why and what you mean by that? >> well, we believe that there is recovery, and that the recovery is much more stable and durable than we have seen before. we forecast the u. s economy just under two and two dozen 13, and the housing market significant improvement in particular there will be a more durable recovery. could be better. clearly the unemployment number

the imf forecasting growth of just under 2%.ill hear from one money manager who thinks that is complete rubbish. he will tell you which we think the numbers should go straight ahead. black rock could be taking drastic measures. what is the world's largest money manager doing to over all its underperforming equities unit? waited till you hear this. the details coming up next. ♪ if you've got it, you know how hard it can beo breathe and ma you know how th feels. copd includes emphysema and chronic bronchitis. spiriva is a oncdaily inhaled copd maintenance treatment that helps opemy obstructed airways for a full 24 hours. you knowspiriva helps me breathe easier. spiriva handihaleriotropium bromide inhalation powder does not replace fasacting inhalers for suddesymptoms. tell your ctor if you have kidney problems, glaucoma, trble urating, or an enlarged prostate. these may worsen with spiriva. discusall medicines you take, even eye drops. tstop ting spiriva and seekva. immediate medical help if your breathing suddenly worsens, your t

because that was already in breach of some of the imf's own criteria for what would trigger imf aid. so this one looks to be a bit of a storm in the teacup of the imf's own making, but it obviously won't change the minds of those who already think that much of the policy direction that's been taken on the eurozone has been wrong in the first place. >> yeah. and you just talked about, you know, this pause that the ecb have got. and it is worth pointing out that activity indicators are still -- although they're better are still point to go contraction and gdp. we've got labor market indicators showing very little signs of improvement. money and credit growth remains weak. so one wonders if the trends at ecb will still be -- and in whatever form that may take. >> yeah. what you've got is a staff report at this meeting. even the ecb today is likely to acknowledge that the direction of travel is uncomfortable, that the narrative is still one of weak bing economic growth in the eurozone. they would also argue they've done a lot to try to stimulate growth. we don't need to move every month.

liz: in this imf report you specifically say, repeal the sequester. quote, excessively rapid and i'll designed. it exert as heavy toll on growth in the short-term the then you went on to say it should be replaced with a backloaded mix of entitlement savings and new revenues. we have, at least in the united states, in a way, felt like we dodged a bullet. that the sequester wasn't as bad as everybody thought..3 and yet you're worried enough. is there some other leg you see downward on this? another shoe to drop with sequester in the second half of this year? >> i think a lot of people thought that sequestration was ill designed. i think it was put in place3 precisely to be avoidedded. so what saying now is, slow down but hurry up. what do i mean? slow down, there is no need to contract the deficit by 2.5%. it is very heavy on growth and really impacts by about 1.5%, maybe a little bit more, particularly if it picks up in the second, second quarter of 2013. we also are saying hurry up because there are long-term measures that will be critical for the u.s

the imf managing director spoke after releasing an annual report on the health of the u.s. economy. she said the feds quantitative easing helps the recover ne the u.s. and supports the global economy. >> there is no need to rush to exit from monetary accommodations given the still large output gap, gishton subdued growth that we have, and given the well-anchored inflation expectations. >> lagarde says the monetary easing should continue at least through the end of the year. the fed is buying $85 billion in bonds and other assets each month to lower borrowing costs and stimulate employment, but investors speculate it may start tapering off these stimulus measures. the imf report notes markets could overreact leading to a sharp increase in long-term interest rates and volatility of international markets. >>> united nations officials say they expect average life spe expectancy around the world to rise to almost 82 at the start of the next century and they expect the global population to reach more than 10 billion. the u.n. officials released their forecast in a report called world popu

is the imf on the verge of pulling aid from greece? we'll hit direct from the deputy head of the fund, david lipton. >>> a fall in the value of samsung shares. $27 billion sliced off the company's market cap 1020 ct. in around ten minutes we'll ask if a new mini smart swrn phone can spur sales. >>> emerging market currencies have continued to take a hammering on fears over the fed's taper talk. the rupiah -- ask if a recovery is possible. >>> plus, oracle subscription numbers dwindling. the compa disappointment post their report yesterday. we'll be state side on that 11:45 ce terks. >>> all that coming up. first, russia's second biggest bank vtb says it needs more protection against a worsening economy. let's get out to st. petersburg for more on the picture and how vladimir putin's government is doing. jeffrey. >> ross, you just catch me. i'm having a well earned break here in st. petersburg. i've been rushed off my feet, i tell you. >> i saw those pictures earlier. my only question, i hope you beat -- >> we didn't have a chance to fi

and the imf admitted the impact spending cuts and tax hikes would have on the greek economy as part of a massive bailout three years ago. the result -- one of the worst economic collapse is seen ever in peacetime. that incomes have dropped by 1/3. unemployment has hit 25%. suicides have soared. protesting has not stopped. >> a unique alliance outside the health ministry in downtown athens. greek doctors and health care workers were joined by colleagues from portugal and belgium in a loud protest against crippling austerity cuts. >> we know that the situation in greece is catastrophic compared to ours, but back home, health care is also beginning to be privatized, so we want to show solidarity and stand up for a continent that takes care of its citizens. we stand by the nurses, doctors, and health-care workers of greece. >> the international monetary fund has admitted to notable failures in the handling of greece's bailout, saying it has worsened the country's economic plight. some say the cuts will lead to the collapse of the creek health system -- greek health system. >> we as health

the eu commission and european central bank, which manage the bailout with the imf, reject criticism of the austerity regime. >> some sports news now -- the libyan national soccer team is gearing up for its first home match in more than two years. libya will play the democratic republic of congo in a world cup qualifier. the national squad has been undergoing final training ahead of tonight's match. since the 2011 war that toppled muammar gaddafi, libya has been unable to post international matches because of security concerns, but in april, soccer's world governing body lifted the ban. authorities have promised beefed up security around the stadium. formula one fans will be steering their attention this weekend to montreal for the canadian grand prix. >> the german team mercedes is hoping to add to the momentum from a win in monaco, despite controversy surrounding a tire tests conducted before the race. >> nikko is in top form after securing three positions in a row, he finally managed to win last month's monaco grand prix. until now, mercedes had more where on the back tires than a

the imf cutting their forecast for the u.s., that is not good news.le waiting on the fomc on june 19 to see what happens there. look at a dow, one-week chart. the dow is down 1.2% this week. still holding the 15,000 mark, to 15,051. let as look at s&p and nasdaq. the nasdaq is the worst of the butch here. you can see there, all down arrows for the week. you have names that are winners like gamestop and groupon but are to the most part a lot of red on the screen and thin volume as well because people are waiting to see about the fed next week. bbck to you. tracy: or they're in the hamptons already. either of the two. see you in 15 minutes. ashley: that would be a smart move. investors are on edge fearing that day when the fed actually begins easing its stimulus program. ittwill happen one of these days. and it comes just before the fed's next meeting as nicole was talk about. peter barnes in washington, ddc. with latest. peter? >> investors are slightly on edge over the fed's plans on reducing bond purchases as part of its quantity quantity program. on

the imf report that shows serious errors in the 2010 bailout for greece continues to cause shock waves. the international monetary fund now says it would have been better to restructure greek debt earlier instead of waiting for the second bailout the forced private creditors to take losses. the european union has firmly rejected the findings, and people on the streets of greece have reacted with fury. >> greek pensioners are angry. many have lost half their income due to cuts in pensions. they accuse the government of robbing them of their last crust. >> every month, my pension is being butchered more and more. when will we get it back? who will listen to us? who is going to save us? >> for many older greeks, it is devastating that their children have no way of earning a living. 27% of working age greeks are without a job. 60% of young people have no work. the imf's conclusion that the first greek bailout worsened the country's plight has outraged many people here. >> what does this admission bring? they did it. now they say they should not have. what is the point? will the admission c

the imf report that shows serious errors in the 2010 bailout for greece continues to cause shock waves. the international monetary fund now says it would have been better to restructure greek debt earlier instead of waiting for the second bailout the forced private creditors to take losses. the european union has firmly rejected the findings, and people on the streets of greece have reacted with fury. >> greek pensioners are angry. many have lost half their income due to cuts in pensions. they accuse the government of robbing them of their last crust. >> every month, my pension is being butchered more and more. when will we get it back? who will listen to us? who is going to save us? >> for many older greeks, it is devastating that their children have no way of earning a living. 27% of working age greeks are without a job. 60% of young people have no work. the imf's conclusion that the first greek bailout worsened the country's plight has outraged many people here. >> what does this admission bring? they did it. now they say they should not have. what is the point? will the admission c

give 100 to ben bernanke, 100 to the credit crunch in china and the latest headlines about the imf, notiving them money back to greece now, so you have a lot of things in the air. cheryl: that headline. that's something that they're talking about right now? >> reporter: a stronger dollar and the news read don't get the funding right away. so we're talking about. the biggest deal, but it does not help the situation when you're selling off. this does not mean that this is the worst ever. is to be the greatest ever where you pick up your favorite company. cheryl: that's a good point. you sound like charles. let's get right to our floor show. we have trader standing by at the new york stock exchange and the nymex. standing by at the new york stock exchange. pick up if you will just for a moment what nicole was talking about, the imf headlines, potential changes in greek funding spirit is that something the factors and today? >> that is is kind of the icing at the cake. clearly the of the nation yesterday out of washington, with some of follow-through. we have had no real positive headlines

with the global economy with the positive changes we have seen over the last few decades indeed the imf has just produced its for a one china to suggest it will be 7.seven 5% something that we in the west would be thrilled to have. that is the first great lesson from china over the last few decades with the other lesson is they have read their market carefully and they have insisted in contrast to the eastern bloc's that while they free the market they try to promote competitive markets as much as possible collapse into oligarchy and the lesson there is without a framework it is difficult to have a strong market because this is emphatically not a libertarian doctrines before a strong framework that the free market can operate. >> i think your conclusion was right the crashes the basic cause of human behavior but the analysis of that would be the bubble that caused one of the major causes the bush administration ran a bad management of human behavior with some criminality then comes the obama administration but the left doesn't see any problem and other criminal group to endorse it so wh

the chief economist at the imf spoke out at jackson hole of the dangers of a bonus feeling irresponsible risk-taking on a precedent of scale. in all three cases they were to write it or are by the global economic establishment and again, this is common in psychology and the listen state to be. i don't now how many in the audience are watching our big mountaineers, but if you ever go up a big mountain, the psychology literature offers some important ways. don't go in a big group. mountaineering groups of more than four are more likely to suffer fatalities. so this is slightly unexpected. you would have thought more people save for your work, decrypting and the social pressure of the shared goal makes people more effective to suggest heading back when the weather starts to turn in bad weather is the single greatest cause of fatalities i'm not climbing expeditions. this dynamic was replicated in bank workers and finance ministries across the world. those of private misgivings kept to to themselves and the few to speak out or ostracized. and masters of nothing but some pools fools in the cor

i understand the imf produced its annual forum on china suggesting growth in china will be 7.7 # 5%,ngrade from 8% next year, something that we in the west would be thrilled to have the market carefully, and they have insisted in contrast to some of the eastern block in the early 1990s that once they free their markets, they try to promote competitive markets and not as much as possible collapse into algarchy and the lesson there, without a framework, it's difficult to have a strong market because -- this is emphatically not a libertarian doctrine. it's a doctrine for the system in which free markets can operate. >> from the safe foundation. i think your conclusion was right the crash was t

it doesn't normally do that on imf commentary, but that did happen today. when i say it's a tough week for emerging markets in japan, the s&p is down a little bit for the week. told bonds, agg, that's actually up for the week. a little bit of a rally. emerging markets, the eem, and japan hedged equities, japanese stock market, the dxj, a big down week again. the hedged equities down almost 30% at this point. you want to see the battle between international and u.s. investing. i want to show you the reit business, because investing in reits was very, very hot. look at that for the week. the international version of that, the international real estate, it's down about 3%. the similar battle between domestic and international. could you beat restoration hardware? the numbers, first quarter up 38%. same-store sales up 41%. look at this stock. remember, the company only went public again back six, seven months ago. they had a secondary, just a short while ago, priced at $50 when the stock was 40. there's the move up. the stock's gone from $40 to $70 in about two

the imf says its assumptions about the country's growth were wrong. the failure meant greece susser and -- greece suffered a much deeper recession. the unemployment rate increased further, to almost 20 seven percent. flooding in central europe, which forced tens of thousands of people from their homes, has reached slovakia. parts of the capital, bratislava, have been underwater. floods are also expected to hit hungary in the coming days. people in parts of germany are still struggling with the floods. how are people coping in dresden? >> i am standing on a long line of sandbags that stretches about two kilometers in that direction, maybe another three kilometers in that direction, too. what this line of sandbags is doing is separating the fog one -- is separating the floodwaters on one side, which have been engulfed by the river, with one of the busier areas of dresden on this side. it has been built by an army of volunteers. the people you can see in the background here are the people who have been doing that. every 20 minutes or so, they will leap u

the imf has cut france's growth forecasts, and is urging the country to reduce its labor costs. fears are running high that the country could become less competitive due to a lack of economic reforms. unemployment stands at 11% in france, and is expected to grow. the european union is joining the u.s. in an attempt to stop china from taking over the solar panel industry. china is the world's largest producer of solar panels. european officials accuse china of selling the panels way below cost to remain number one. starting in august, europe will impose a 12% tariff. in 2011 alone, china exported $21 billion in solar panels to europe. wall street firms are accused of propping up the housing market. large investment firms have been spending billions buying up depressed properties in las vegas and phoenix. there is concern it might be squeezing out individual buyers. a couple of examples: the blackstone group has purchased 26,000 homes, and colony capital, which already owns 10,000 properties, is said to be spending $250 million every month. lululemon is attempting to end the sheer

and while i don't think they will go down to the sort of level that the imf was forecasting at 1.9 last friday, down grading that forecast of gdp, downgrading their inflation forecasts to levels which they previously described as sub optimal should offer markets some reassurance that as much as bernanke will stress tapering probably is going to happen, it's a matter of when. and he won't pre-judge his options. it's not something which means immediately that interest rates are going to rise. one of the things that markets seem to have to gotten, that when the fed outlined its qe exit plan in 2011, it did actually say the first thing it would do was not raise interest rates but stop rolling off or reinvesting maturing debt. >> the other thing of course is they won't be buying any fresh stuff even when they stop. and tapering doesn't mean they stop buying, just stop buying 85 billion a month. if they went from 85 to 75, who would notice, right? >> hardly anybody. >> exactly. but even if they do stop buying, they will still be sitting on a lot of stock. >> a huge amount of stock. >> so that

they may not get the imf loan. tell me what's going on?hings that very few people acknowledge. greece hasn't been spending as much as it should have to the point that people love their jobs, it hasn't been in the public sector at all. there's been a lot of private sector austerity in the form of higher taxes. a gigantic burden on the private sectorr and they're just not getting their house in order. and they look, and there's just, kind of somewhat rioting in the street because they're going to put an end to public broadcasting. these people, i don't know what they're thinking about, and i mean, i think they, they truly believe that they can go on, live the way they've been living, which led to their demise and that everyone is going to pay for them. and the imf is saying, i don't think so. >> you and i have been talking about this for at least two years, this endless problem with europe and the euro and the rest of it. and when are we going to come to an end point where either things are definitively settled or the euro breaks up? have yo

obama is on the record saying that inequality is the defining issue of our time and the head of the imf said that inequality is corrosive and many of the world leaders say we have to do something about inequality. what we have not had is anything more really than tinkering. we've had a bit more regulation of finance. we had president obama's call for the minimum - wage and more taxes on the rich and in the united kingdom we had a little bit of tinkering on the bonus payments and the corporate governance, but this does not add up to a major shift and isn't going to make very much difference and indeed what happened to the crisis is the best evidence is that inequality has grown. during the 1930's, the rich, the super rich took a battering, the wealth shrink and the political climate became very much colder. that hasn't happened in this crisis so in a sense the rich have gotten richer. we know the growth of the last two years, 90% has gone to the top 1%. we are continuing the trend. something similar has happened in the united kingdom. the global figures, the billionaire has shown the num

the imf released a report that sequestration is hurting the american recovery.can recovery that we've gone through this type of quasiausterity at the moment? >> we believe there has been too much deficit cutting, if you will. if you couple the normal fiscal consolidation, plus sequestration, it's really a break on american growth. while the economy's probably going to end up with a 1.9%, maybe 2% growth this year, it would be probably, you know, another .5% had it not been for this very strong fiscal consolidation. which means, you know, more jobs. now, i'm not saying that the government is going to create the jobs. but certainly the reasonable fiscal consolidation can create the conditions for the private sector to actually, you know, develop growth, create value and open new positions in companies. that's what we are saying. slow down the fiscal consolidation. don't stop it. it has to be done. slow it down. but make sure it's done also for the median term. we're not seeing well-anchored deficit-cutting policies going forward and that's important. >> on the top

going house today -- telling the house today she is content with the delay in the implementation of the imf procedure? this delay is frustrating, frustrating the security services, putting billions of pounds -- and importantly helping us against organized crime. what he going to do about it? >> mr. speaker, we are doing everything we possibly can. are we frustrated? yes, we are. are the police frustrated? yes, we are. we have to make sure it is robust and it is legal, and we will get there. >> order. questions to the prime minister. >> number one, mr. speaker. >> thank you, mr. speaker. this morning i had meetings with ministerial colleagues and others, and in addition to my duties in this house, i shall of further such meetings later today. >> thank you, mr. speaker. three years ago the prime minister promised borrowing would fall to 18 billion in 2015. will he confirm that the failure to get growth going means he will now borrow 96 billion instead, yes or no? >> three years ago we said we would cut the deficit and would cut the deficit by a third. that is what has happened. but on the iss

we had said earlier that greece right now, the imf is taking a look at it, saying what did we do. did we give them too much money. we also have the government that looks like it could possibly be overthrown. liz: tensions between japan and china. let's talk about were content to be a very tense economic time. we know that those two countries are better. >> china's production is down. you know, the lowest in nine months. also, they are starting to pull back a little bit. where we are seeing some about pulling back as they are not spending on gold and some of the other issues. they're going to start tightening their belts. it's about time that they really did do it. liz: hold on, mark. that brings us to gold. one minute we were talking about oil at $99 per barrel. now, look out at it. it is just a stunning move. >> it really is. quite a bit of problems economy wise that could come to fruition in the next couple of months. however, i think right now we have overcome it. in the next couple of days we are going to get back above $95 in crude oil. >> all rightquickly on japan. >> you kn

the prime minister requested more time from the international monetary fund and the imf approved that request. >>> important news if you own an suv made by general motors. a circuit board could catch fire. fires from the 2006 and 2007ed model years. chevy trailblazers, gmc envoy, buick raniers, saab 97-xs, and izuzu ascenders are included in the recall. >>> top heads of state all in one place. what is expected to dominate the conversation. >>> a near disaster >>> our wednesday's child this week, a young child who dreams of playing baseball. >> we met rodney last year, he's waiting for the right family to adopt him. >> are you excited about being here? >> yes. >> 16-year-old rodney definitely excited to be here at nationals stadium. pitchers invited rodney to play a little catch. rodney came dressed up, because he cares a lot about making a good impression, although he has some developmental challenges, he is a wonderful young man with a lot of hopes and dreams. >> he loves to investigate things, wants to know what everything is about. an intriguing and interesting young man. >> we did

it was to try to get organizations ke the imf o support.o you can see that he already has part of this export ssue. melissa: tht is a great point. obviously, you know, the environment all around the world, we all shre the same error. if we are not on same page with whawe are doing, we are still going to see co2 emissions. how plausible is it that we start exporting coal? we are a nauralresource n al. we start exporting rightway? >> we have two your supply here in america. but let's keep in mind if we turn off coal, we are ceding competitiveness in the global economy. it is disappointing for american business. let's say that. melissa: that's right, you need cheap energy for the manufacturing sector to rebound and consumers touy che goods. but natural gas is providing cheap ener right now. we have seen a boom in natural gas from shale and tracking for the one thing i was thinng is well, it's good for natural gas and natural gas drille and anyone who depends on that. that'sreat for natural gas, isn't it? >> probably about half of that is ol. i

they ha reached end of the rope, they cannot get more bailouts they raised taxes to a point where the imf said you get less revenue, so, amazingly, like,al greeks made a tiny spending c. >> why all o the publicity about draconian cuts, people there experiencing it believe it. >> the fight in europe is between so-called austerity crowd and growth crowd, but the growth crowdrr paul krugman, keynesianing and ing and big sed austerityeople want higher taxes, there is nobody in europe that's advancing the position that senator rand paul was talking about. we have a big expensive inefficient government. if we' more growth we have to shrink burden of government spending. the transfer of resources from private sectoro the government that is what hurts your economy. john: theovernment has no money of its own. >> and all likelihood they will not spend the money as efficiently. >> and the coverage is so insane. the atlantic, a respectable magazine, editor matthew o'brian, the more country has cut, the more unemployment it has, a recovery is worth t deficit. >> i bit he agrees with paul krugman and t

we speak to him at the imf conference in an hour's time. some u.s. banks are still too big to fail according to regulators heading to capitol hill today. the former controller of the currency under president bill clinton also joins us from the imf meeting that's live at 10:30 cet. australia's prime minister is calling for a leadership vote. we'll bring you live updates from sidney including the ballot results in the next hour. >>> now as george osborn scrambles to find 11 1/2 pound of savings on the uk balance sheet we'll hear from the former chancellor. live from be abington green. monsanto took a hit on the back of gm wheat fears in the united states but we'll hear from one analyst who holds a buy rating on this company. find out why as we preview the group's earnings. that's around 11:50 cet. >>> now, it hasn't been good to be the bond king this month. the biggest bond fund has been the hardest hit. total return fund is down 3.6% in june through monday. that makes it the 12th worst performing fund among the 177 intermediate investment grade bonds

imf says it needs to be taking care of, otherwise you don't get your rescue money by the end of next, turning back into the headlines because of lack of money. it is a tough day on wall street today. let's take a look at what the dow is doing. it was down 300 points are a little bit more than that. still up by 282 points. same on the s&p. we close the session. that could be a very bearish signal for the markets. we'll keep an eye on that as well. tracy: let's talk a little more optimistic year. small business, big ideas. start out with a passion for custom-made clothing. in four years custom-made has turned into an online community connecting viruses. more than 12,000 acres. treating everything from cavernous to motorcycles. co-founder and ceo joins us now. hey, i love this. you were making custom shirts and said, we have to go by is custom-made website to and come taken over. >> yeah. my co-founder and i were both -- we love custom stuff, so we had custom shirts and belts. we really saw this opportunity to bring tustin we stumble across website. the owner of that site actually was w

in fact, in order they have to sign programs with the imf and european union to make sure they do not go bankrupt, that they do take measures that are enough to make them solvent. >> and joining me in the studio is the vice president of intelligence at karsten. any investor risk from the court hearings? >> no, i wouldn't overestimate this. we have to keep in mind what are we talking about today? one part is the question of the constitutionality of the zen right. today is the follow-up, the main proceedings following up on last year's verdict from september when the constitutional court cleared the way for the bounds stock to ratify. on that front, it is inconceivable that the court would roll back or fall behind its verdict from september when it cleared the way for the parliament to ratify. the other question is the omt. and the really interesting question here is if the german constitutional court actually sees itself as being in the right position, having the authority to make a proper and full verdict here or whether it will pass on this case to the european court of justice, whic

inflation, imf is estimating 5.5%.ething they're going to have to keep a close handle on? >> inflation is not a threat this morning, but the pressure would increase on the inflation front. so what is important for the country is to have good constitutional set up to -- with the risks. what i'm talking about is the macroeconomic monetary policy which is not -- yet so the imf is working to beef up the monetary policy so that they can fight against inflationary pressure that might come in the future. >> you are a former japanese government bureau accurate, a very senior one, i might add. i just want to get your take quickly on abe-nomics, what people are calling abe-nomics. is it going to work? >> well, it's a very ambitious comment that has been made. you know japan has been experiencing stagnation for the last two decade easy. and i think it is very bold. you have to wait and see what is going to happen next. it is too early to come to a conclusion. >> the latest numbers we see is that that push is starting to happen wh

the imf and european union forced greece to slash public spending and benefits in exchange for an economic bailout of the country is now mired in a much deeper recession. the unemployment rate increase is 27%. president obama is meeting with chinese president at a summit in california today amidst a growing dispute between the two countries over cybersecurity. washington has accused china of cyber spying, including snooping on advanced u.s. weapons designs. but the white house said little publicly about its own hacking abilities. bloomberg businessweek recently disclosed how a secretive unit inside the national security agency called tailored access operations conduct cyber espionage on overseas computer networks. the pentagon hackers harvest nearly 2.1 million gigabytes every hour. that is the equivalent of hundreds of millions of pages of text. the pentagon recently promoted the deputy chief of the secretive nsa unit, rear admiral willie metts, to become director for intelligence of u.s. pacific command. mexican authorities said they rescued 165 migrants who were apparently kidnapped for

and now you know the news for this tuesday j the 182013 imf the factor. >> ext, have a great night. >> bill: the o'reilly factor is on. tonight. >> if you are a u.s. person. the nsa cannot listen to your telephone calls and the nsa cannot target your emails. >> bill: president obama says the u.s. government is not reading private emails. the nsa whistleblower says they are. who do you believe? charles krauthammer will weigh in. >> in particular obviously a crucial way of reproducing whiteness, white supremacy, white privilege. >> bill: far left university of pennsylvania teacher says opposition to late term abortion is driven by white racism. incredible. we will show you what's going on. >> money for heroin. >> also tonight undercover reporter exposes fraud in 2 billion-dollar telephone entitlement. largely paid for by americans. this situation might shock you. >> people on drugs. they get this phone and they go get $40. >> caution, you are about to enter the no spin zone. the factor begins right now. ♪ ♪ hi, i'm bill o'reilly. thanks for watching us tonight. do you believe president

>> i learned that christine legarde, director of the imf is as grand in person as i've seen her on television and in print, newspapers and things. >> top of the hour. >> it is. all right, if it's way too early, it's "morning joe." stick around right now. it's time for the fix, baby, straight ahead. >> have a good day. >>> supreme change. the high court's decision will make california the 13th state with same sex marriage in nearly one-third of the country's population will now live in states allowing those unions. we'll have the latest reaction this morning from president obama in africa. texas two-step. a lone star emerges in austin with a fiery filibuster against restricting abortion rights as governor perry vows to bring lawmakers back for another special session to try again. >>> in south africa, family and friends gather at the pretoria hospital where former south african president nelson mandela is in critical, but stable, condition. >>> good morning from the interns at the republican national committee in washington, d.c. it's thursday, june 27th and this is "the daily rundown." here's

and now you know the news for this tuesday j the 182013 imf the factor. >> ext, have a great night. > the o'reilly factor is on. tonight. >> if you are a u.s. person. the nsa cannot listen to your telephone calls and the nsa cannot target your emails. >> bill: president obama says the u.s. government is not reading private emails. the nsa whistleblower says they are. who do you believe? charles krauthammer will weigh in. >> in particular obviously a crucial way of reproducing whiteness, white supremacy, white privilege. >> bill: far left university of pennsylvania teacher says opposition to late term abortion is driven by white racism. incredible. we will show you what's going on.

the imf said austerity is causing more damage in you're than they had initially thought., to the points that jarod was making. austerity. the case for austerity should be dead. this all seems to help make the case for more investment. >> absolutely. the economic case for austerity is crumble. we always thought it was a bad way to go. the political case is holding firm. the only way to really explain that incredible contradiction that you pointed out where republicans and conservatives are embracing something that has been damaging to europe while saying they don't want to be like europe is the fact that it is not coherent if you think about it in terms of austerity. it is if you think about it in material of politics, not economics. if you just basically follow the money. fortunately, conservatives and peel in the right wing in this country have always lined up their interests with those of the wealthy and their corporate donors so it seems completely coherent to say we want to shrink government but also raise taxes. also cut taxes which of course would increase the defic

that's the time the imf report came out on the united states. this is not normally market-moving information but they lowered the 2014 gdp estimates, 2013 they maintained it, fairly anemic. it shouldn't move markets but appears to have done so. take a look at the dollar/yen which is what everybody locks at these days. the yen strengthened, and the market is moving to the downside. although we're getting choppy behavior this week, up and down, we're continuing to see weakness in the cyclical areas and international areas. financials, energies, materials stocks are leading to the dunn side and the international sectors we've been talking a lot about, emerging market fund, for example, or chinese funds. here's the wisdom tree, dxj, this thing is down close to 30% in the last few weeks. china, fxi, not hit as hard, down 3% and there's the eem, already a 10% correction in that one. that's down another 1.7% today. overall, the last two weeks, that's what i mean by cheap action. this is the s&p 500 in the last two weeks. i guess the bottom line here is

this was part of the imf insanity. england tried to raise the income tax. guess what in the reverse laugher curve, why don't they get it? actually why don't we get it here? >> i don't understand why they get it and now the agenda on tax reform is really a disguised tax increase hoping to raise taxes on u.s. firms, not their own. >> oh, right. >> none of this is going to work. >> the tax safety havens. >> yeah. >> don't need them if your tax rates are low and fair. >> i agree with that. >> it's really on the fear of deflation. we haven't seen inflation expectations start to drop. they have been pretty well anchored, so i think the fear of deflation has always been overrated. >> if you look carefully, look carefully. >> interest rates have moved. >> look carefully at break-even spreads here. >> i acknowledge that. but i think we shouldn't encourage the fed tock printing more money. they have done everything they can. >> i want them to stay on track. >> i want them to hold on to a couple of bullets in case the incompetence grows elsewhere. >> milton friedman 1

the imf came out, lowered its growth forecast for the u.s. normally, that does not move markets, folks. around 11:00, it did move it down. maybe it was coincidental, but saw a definite move up in the dollar. the dollar weakened, and the dollar-yen, we all watch that now. the yen strengthened, moving down, means the yen strengthened. generally the markets move to the downside. the story of the week has been about bonds dropping and emerging markets having trouble. here's where we are so far for the week. generally s&p is down fractionally. that's the agg total bonds, actually up, a two-day rally, a little more stability in some of the bond fronts, but not in emerging markets front. the eem, the dropping down, and over the week, japan hedged equities, down 4%. that thing is approaching 30% down in the last month. finally, you want some clear example of this battle going on between international investing and u.s. investing, look no more than reits. it's a monster. it's the main way people invest in real estate investment trust these days. it's

the imf did approve the request. >>> own an suv made by general motor, we have news for you. and dealers will make repairs for free. >>> he can't vote, doesn't have a driver's license, but that isn't keeping a 15-year-old from graduating in a degree in mathematics. >> in his tiny apartment office playing classical piano, he uponers the summer ahead. on sunday, at 15 years old, he graduates from a bachelor of science degree in mathematics from ucla. light reading on lectures on linear patient different equations. instead, he's going to take a year off and get some stuff op his bucket list ow the "much check. >> author a section book? >> check. >> a pilot's license? sure, why not? >> i joke with people, i will get to fly before thrive. >> when first met him when he was 12, but he was just a kid then, he chuckles when classmates ask him? >> what can't you do? and i are always say get a girlfriend. >> reporter: not because there is no idea, he just doesn't have time to date. most peers are masters candidates in their 20s. but that's okay. he loves masht arts and soccer, the bucke

the imf is reporting that the nature has

plane over to europe, okay, they're going to be in a recession not only in 2013 but i think that the imfcontinue to be in a recession in 2014 and in asia you're starting to see a deceleration. you're seeing a deceleration of economic growth coupled with the infectiveness of the federal reserve because as they're continuing to monetize, you're starting to see inflakes expectations go lower. that's somewhat troubling for us and that's the reason why we're somewhat more neutrally weighted at this point and we would be moving up the quality spectrum. >> that is a well-reasoned, thoughtful analysis, chad. i don't know what we're going to do with you. >> thank you. >> take care, guys. >>> strong words from one of the biggest names in hollywood, steven spielberg. listen to these comments that he made onned f the future of the industry. >> there's eventually going to be an implosion or big meltdown where three or four maybe even half a dozen of these mega budgeted movies are going to go crashing into the ground and that's going to change the paradigm again. >> spielberg and george lucas speaking

the president on down to the strategic and joint commission on commerce and trade, and the go 20, the imf, it creates an unlevel playing field between us. we are dpowsed on making progress whenever we can in term of pushing for desk reform in china and liberalization of the policy, reform of the financial sector and the enterprise sector to ensure our companies competing around the world have a level playing field in which to operate. we work through the enforcement agenda. we have brought several cases again china. eight cases again china from manufacturing to agricultural to the service. we only case against china regard to tires. and see that sector in the u.s. rebounding and more tools. we have to use every tool at our disposal. >> yeah. we have more time right now. i encourage you -- [inaudible] more time thinking about this in an effective way. we have to start standing up for ourself for the country. more than we have in the past. it means leverage. i believe that both countries all truisticly never will a trade barrier. they only do it for leverage if they have to. and we're have