china has never been under the imf program. it's exceptional in the developing world and they're the real powerhouse. i think for bricks to be effective they'll needs a leader. an until they see a country ready to step up in that leadership position they'll have a hard time accomplishing much. how are they going to deal with that that? >> yes, there are big problems here. iraq is the most anti-western country today. you could say that russia's primary interest is to stand up to the united states. it needs support and do something against the sanctions. china is in the big picture here. china has an opportunity to play multi lateral, and the question is whether it will be able to do as suggested. brazil and abou and india, they have very few interests in common with russia and china. >> how are these country going to benefit themselves with that lateral effort. >> i do think that every single country benefits from being at the bricks it was a clear sign of the dissatisfaction of the russians regarding the international order and

china is currently ranked sixth in voting strength at the imf. but we know that it's economic presence in the world ranks second and soon may surpass the size of the united states. it's been a long time that we should reform the votes at the imf and the world bank, and these countries didn't get what they were supposed to a long time ago. >> and take us back into the history. how has this not reached adequacy from these countries. we received assurances from christine la guard as she was ankling to become head of the imf for these emerging economies, how have we gotten here? >> it's taken a long time for the shares and the seats and the counts that would be give out. primarily the european countries have been reluctant to do so. but most recently it has been the united states congress that has not approved of the reform that were agreed in 2010. this is a direct protest against the united states rather than the european. >> how do you see theocracy of the world bank and imf with what bricks is doing? >> the new development bank, as they call it,

at the imf. why is central banking so crucial? obviously, because the monetary stability is a key component of he common good, the global commons, as they say in new york. yes, and by stability we mean ow and stable inflation, and we know from bitter experiences in the archives of the imf about the damage that high and volatile inflation can do. we no much better now also the effect of deflation. we also understand clearly now that in order to achieve price stability, we need some policy framework directed towards the financial sector, something which was not that all that familiar when i joined the imf. the financial sector was an area where we were were not allowed to go. i remember a tremendous conversation about that when we started discussing about suggestions i wanted to make to the banking community, and then she told me, never lecture the bankers. never! f course, we continued lecturing a little bit, but nevertheless, we were wearing difficult counts -- gowns. something which is very uniq

imf was much more important to the united states. the reason is this, president truman had intended to nominate white to be the first managing director of the imf in january of 1946. but right before he did so, he received a long memorandum from fbi director j edgar hoover saying don't even think about it. i got credible witnesses and information that will corroborate my allegations that this man is a soviet spy. now, truman didn't trust hoover but he knew he had a big political problem on his hands. they said we decide add r after all we really want the world bank to quote-unquote secure the confidence of the american investment community, and it would be rude of us to take both institutions. now, both institutions, mind you, were in washington, despite the fact that the british objected violently to this for years, but suddenly they decided they wouldn't touch the imf because they didn't want information about this particular scandal coming out. so it sort of lives onto this day. that point i should probably stop and open up the fl

this is to my judgment the imf. so thank you, thank you again for this great pleasure and for the great honor, totally undeserved honor of giving my name to this lecture. totally undeserved. but this is something between you and i we will have to discuss further later on. [ laughter ] i am proud of that and the presence with us today of the chair of the federal reserve, add her prestige to the event and to the series of lecture. i will have to get used to seeing my name on that. okay. but, but, it makes great sense to devote further efforts to the issues around central banking. even if many of you know here that i have not been all my life a central banker, as i even started in the minister of finance in my country. at the time, it wthe bank of fr was not independent and we had to say the bank must be in the hands of the state, but not too much. and be sure that i made everything i could to comply with the second part of the sentence. then, but, okay, the bank of france finally got independence in 1993, and many oth

at the imf. why is central banking so crucial? obviously, because the monetary stability is a key component of , the globalood commons, as they say in new york. yes, and by stability we mean low and stable inflation, and we s in from bitter experience the archives of the imf about the damage that high and volatile inflation can do. also theh better now effect of deflation. we also understand clearly now that in order to achieve price stability, we need some policy framework directed towards the financial sector, something which was not that all that familiar when i joined the imf. the financial sector was an area where we were were not allowed to go. i remember a tremendous when wetion about that started discussing about togestions i wanted to make the banking community, and then she told me, never lecture the bankers. never! of course, we continued lecturing a little bit, but nevertheless, we were wearing difficult counts -- gowns. something which is very unique, their ability to respond quickly

>> i think so and we have to think about the way we see the imf.so long imf was that superpower that went in there and gave them these antiquated loans to get these countries up. charles: they were top. >> they were awful. now these countries are coming together and i think this is one way they can come together and fix their problems in their country. >> i can't blame them for coming together. they are kind of like the stepchild, they sit at the other table and not allowed to be at the big table. i don't blame them for doing that. are they going to come together and work together? no, not anytime soon. >> they haven't been able to decide where they were to headquarter this thing and it has been years in the works. i know you think this will happen in our lifetime-- charles: absolutely in our lifetime. they already are doing some amazing-- >> this is keeping you up at night? you can't be serious. charles: what keeps me up is our waning influence. there is but-- something special to having the dollar as the world reserve currency. our stature in the

the imf predicts slower growth next year.nd russia's economy is seen growing just .2 of a percent this year, and investors yanked money out of the country since the developments in crimea. the prospect of increased sanctions against russia as the conflict in ukraine continues has some analysts predicting an outright recession in russia and as you can see it is planning to grow .2 of 1% so recession is not too far off. the imf warned that conflict in the middle east and other political risks could lead to sharply higher oil prices. back in this country the risk of long-term rising interest rates could also destabilize an economy is only now getting back on its feet. the imf called for more investment and infrastructure. joining me to now to explain what other specific steps governments can take to improve the outlook for global growth is the division chief of the research department at the imf. thank you for joining us, and thank you for this report. >> thank you, ali. >> first of all to put it into context, this is the second

it could pass legislation to modernize and reform the imf.forms were negotiated in 2010, they are supported by almost all 188 imf members and just this april, the g-20 gave congress an ultimatum of sorts, pass the reforms to give emerging countries a greater say by year end or we will move forward without you. maybe the creation of this brics development bank will be just the wake-up call the united states congress needs but given that it is the united states congress, i wouldn't bet on it. next on "gps," the american economy. is it as rosy as it seems? is it a facade? what about obamacare? paul krugman will tell us how he sees things when we come back. when you run a business, you can't settle for slow. that's why i always choose the fastest intern. the fastest printer. the fastest lunch. turkey club. the fastest pencil sharpener. the fastest elevator. the fastest speed dial. the fastest office plant. so why wouldn't i choose the fastest wifi? i would. switch to comcast business internet and get the fastest wifi included. comcast business. b

the imf is only one source of pessimistic forecasts for russia. fully half of all german firms doing business there now predict recession. that forecast comes from a survey done by a german business association. exports to russia were down sharply in the first four months of 2014. a breakdown of the figures shows german trade with russia reached a volume of nearly 77 billion euros in 2013. analysts estimate trade with russia secures some 350,000 jobs, and german firms have invested some 16 billion euros in russia. the imf also points out the ukraine crisis has puts the ruble under pressure, with the result the capital is being transferred out of russia. an estimated $100 billion worth in this year alone. >> israel has launched air strikes on hamas in the gaza strip. the attacks come after the bodies of three missing israeli teenagers were found in the west bank. >> thomas is denying any involvement -- hamas is denying any involvement. >> the boys' families have been thanking well-wishers for their condolences. >> thousands converged on the central

it could pass legislation to modernize and reform the imf.ed in 2010, they are supported by almost all 188 imf members and just this april, the g-20 gave congress an ultimatum of sorts, pass the reforms to give emerging countries a greater say by year end or we will move forward without you. maybe the creation of this brics development bank will be just the wake-up call the united states congress needs but given that it is the united states congress, i wouldn't bet on it. . next on "gps," the american economy. is it as rosie as it seems? is it a father said? paul krugman will tell us how he sees things when we come back. y? is it a father said? paul krugman will tell us how he sees things when we come back. e? is it a father said? paul krugman will tell us how he sees things when we come back. ? is it a father said? paul krugman will tell us how he sees things when we come back. [ female announcer ] we help make secure financial tomorrows a reality for over 19 million people. [ susan ] my promotion allowed me to start investing for my retirem

they want more change at the world bank, the imf.he russian president gave an interview late yesterday. place wherewant a countries being punished because they do not agree with the u.s. foreign-policy can come together and push back. that is sort of what he is seeking specifically right now with his problems with ukraine. he thanked the other leaders for their support on ukraine. none of those countries voted to punish russia for annexing crimea. it is not just the imf and the world bank, but the ebrd were russia has a vote, but not much of one. a possible new round of sanctions in russia is halting ebrd financing. the russians will tell you that is because of the u.s. and its allies. the russians would argue the only reason ukraine is getting imf funding is because ukraine .s allied with the west they will never have the money to return to the imf. this is about geopolitics. trying to balance and level the playing field. >> what are the leaders going to do? does it matter? >> they have $100 billion currency reserve fund. the second

the imf is always going to be somebody from europe. and they said hey, the west is the one that caused the financial crisis, and we have been able to be resilient and we should have our own people at the head of these things, but they were shunned by the imf and the brics created their own institutions, and they give more leverage in these institutions. now they have a moral model that they can juxtapose in the world bank, and they can say, well, if you're not going to do it the way went, we'll do it the way for our own institutions. >> is it good for the world to have competing organizations like this. >> well, i think on the rhetorical end, they will compete, but when it comes to function, the more the better. we need a plurality of different institutions, and we have one. there's the interamerican development bank, the cif. and the bricks bank comes in right away at that sort of mid-level type of bank. it's not as big as the world bank, and not as big as the imf or it's reserve fund, but there are a number of these things, and the c

lagarde, head of the imf and briefly we'll hear their q&a. of the ish a ysues has alwa been selective hearing when it comes to things they're paying attention to. any parent knows what selective hearing is. try to talk to your 10-year-old when a favorite program is on tv and whisper silently, want to go out and have ice cream, they can hear that. inflation and deflation, definitely selective hearing. i think ms. lagarde would use a magnifying glass of size of idaho to hold up to see if she could find a smidgen of deflation. anybody who wants to truly see what deflation looks like, read the great books from the 1930s and the depression. back to ed today's number, adp, strong. expectation of tomorrow's number, i did work from january to may, here's the bls numbers. when i find it interesting, the last look was very similar, 282. the main number dropped to 217. i think the sequential notion, how it stacks up to the 280 and two teens significant, also the bigger question, i remember screening in 2009, it's all about jobs, jobs, jobs! i'm not sure

>> the imf has agreed to give ukraine $17 billion. they have given them one trench today and then they will be giving them another half. that will be over two years. today things look ok so far in terms of ukraine meeting up to the expectations of the imf in terms of their commitments, but the imf did say ukraine will probably need more money because of the wars in the east. that is something the prime minister was also talking about, saying that he reckons this war will cost them $1 billion just in terms of increased military expenditures, he for the end of the year, and then more next year. that is not even taking into the fact that this is their industrial heartland where the fighting is going on. basically the news from ukraine is, it's great to have the $17 billion, but we will need more. >> ryan chilcote on the phone from kiev, thank you so much or the work you are doing on the ground there. we will be right back with more "bloomberg west." ? >> it is 26 minutes past the hour which means bloomberg television is on the markets. l

there's been a series of crypto imfs. when egypt had problems that gulfis played imf, russians said we'll bail out your banking system if you give us a naval base. there is an asian self-insurance imf. there's a world bank side to this bric bank and imf side to this new bric bank. a lot of problems, what currency? they want to create some new currency. good luck. i don't think they are going to use yen given the participants involved. don't think they'll use euros. hard time imagining they will use the dollar. i'll be curious to see if they will do this in rubles. don't believe it. i know there's lots of press releases about this. i don't think it's real. i would say the other interesting things are the agreement that talked about human rights. lots of words about human rights in that declaration. maybe it's me, i'm thinking russia, china, human rights. figure that one out. i'm highly skeptical. it's great, but i'm not going to hold my breath. finally on things like what happens, as dr. dukule was talking about relations

we'll check in with you in a few hours. >>> now, let me tell you a little bit more about that imf repo. analysts there make a prediction every few months. their prediction for 2014 back in april was 3% 7%. now they're saying it will be 3.4%. they blame slowing economies in the u.s. and in russia: >> they downgraded their forecast for the u.s. by more than one percentage point to 1.7%. they downgraded their forecast for russia by the same percentage point now they expect the economy to grow. they did revise its projection upwards. the fund sites strong consumer demand ahead of the construction tax hike in apri due to further tensions in the ukraine and middle east. a shift in future policy might integrate the risk. >> on wednesday, they issued a recall to comet to a total of almost $29 million. now, they've taken a toll on their second quarter profits. they say the cost of repairs and compensation has come to more than $1.1 billion. but they have some good news for investo invest 2.2 million worldwide. up 2% from last year. that's the latest in business. i'll leave you with a check on m

after her remarks, she was interviewed by imf director christine lagarde. this portion of the event is one-hour. [applause] >> thank you, christine. it's an honor to deliver the inaugural central banking lecture. with distinction of longestwas one of the serving directors of the international monetary fund. the interconnections were apparent in the latin american debt crisis, the mexican peso crisis and the east asian thereial crisis to which -- the imf responded. leadership. these episodes took place in emerging market economies, but since then, the global financial crisis and, more recently, the euro crisis have reminded us that no economy is immune from financial instability and the adverse effects on employment, economic activity, and price stability that financial crises cause. the recent crises have appropriately increased the focus on financial stability at central banks around the world. at the federal reserve, we have devoted substantially increased resources to monitoring financial stability and have refocused our regulatory and supervisory effort

it is part of the reason the imf is cutting its forecast for the global economy this year predictingwth worldwide to come in at 3.4%. it attributes we could expect it growth in the united states. for the u.s. was cut to 1.7%. let's listen in. the downgrade from 3.7% to 3.4% for 2014. what is behind that is what happened in the u.s. in the first quarter which was negative growth. is bright for the eurozone with business activity picking up. saw its biggest monthly jump in business activities since 2007. the eurozone is growing at its fastest pace in three years. french business activity is lagging behind. let's take a look at the figures. over 50 signals and expansion. contraction. france is falling behind. let's talk you through some of unilevert results from sales, falling short of expectations. reported of dove soap a 3.8% increase from april to june but analysts were hoping for a higher figure. its lights a slowdown in emerging markets for the lower-than-expected growth. lvmh jobbed in dropped into -- comparison to last year. sales increased during the first half of the year by un

> so the imf >> a french broadcaster just saying now the visibility on that is very limited.o you think you have some visibility in ad spending? we have a very, very broad base of clients. one sector is down and another is up and it balances out nicely for us. we have a massive number of clients. >> we will bring you back third quarter next year. >> most economists have made mistakes in their lives. >> unfortunate to hear the economic forecaster --i should not say this -- they are not as pretty as some of the models. i said it. models managing director. brand not to run your into the ground. don't miss that conversation. ♪ >> welcome back. time for today's company news. the virgin group is seeking more than half a billion dollars in financing. people familiar say some virgin branded companies to be taken public within the next year and including virgin active and virgin money. considering offers for its portfolio of older off-patent drugs. and others all showing interest. internal documents values the portfolio at 6.3 billion euros. soda stream is said to be in talks with an

and others.oh, and i went to go back to the imf getting ready to downgrade.ing a which is looking at the global economy. altitude. at full i like it. i will leave you with this other one stock. i find it interesting. and have a look at next. has not owned this stock since 1999. any says he has invested in the retailer as a stocky is not owned since 1999. at first class, it does not fit with our overall cautiousness, but there is a perspective on capital allocation. about the next directory, and now it is about the next in line. coming up on the break, it is 7:48, before the first trading day of the week, and we will look at thoughts before we get started in trading for this week. stay with us. ♪ >> welcome to "countdown." i am ryan chilcote. >> and i am anna edwards. david, so early on a monday. >> i am sorry. good morning to you. we have had records in new york, the s&p and the dow, triggered onthe nonfarm payroll friday, coming down to 6.1%, and john said in the previous section that janet yellen is very, very uncommitted, but we have got to a point now whe

then janet yellen speaks at the imf conference. on the next washington journal, former u.s. ambassador to iraq, james jeffrey. here is here to talk about the latest developments on iraq and options regarding the terrorist group isis. then a look at a proposed $.12 increase in the federal gas tax. our guests are curtis dubay and beth osborne. the conference of bank supervisors on the emergence of electronic amen systems and efforts to regulate the industry. is liveton journal" every morning at 7:00 a.m. eastern on c-span. you can join the conversation on facebook and twitter. >> our week of "american history with theme time" gettysburg conference on the civil war in 1864. at 8:00 p.m., robert e strategy against the union and the potomac. grant0 p.m., ulysses s. concerning robert ely and forces in virginia. i 10:00 p.m., a look at the sand creek massacre tom an attack on an indian village in the colorado territory. p.m., confederate general john bell hood campaign in tennessee that resulted in the almost total discretion of of hisy -- destruction army. that is in prime time on

more important probably are the lessons which were learned from them, by them and by the imf, in that occasion. one was that financial vulnerabilities can even be when macroeconomic fundamentals appear sound. this was the surprise of that moment, one of them. another was that the risk from large and volatile capital flows create larger foreign exchange offers. we had some difficulty in convincing our membership that you had to add a zero to the numbers of our loans in several countries. we had some problems with that, but we did it. then we had the change in central banking policy frameworks introduced with enormous effort from the staff, and they have paid off. we had a demonstration of this in the fact that all of these countries have been extremely quick in weathering the recent global crisis. of course, one could regret that the advanced economies have not realized deeply enough after the asian crisis that their own financial systems might be vulnerable. another surprise in this world. we have paid a certain price for that. a very certain price. after expressing this regret, i mus

the imf pointed to insurance oversight.t now, the underwriting in leverage loans, the fed has pointed to what could come out of that discussion potentially that could give the markets here pause for thought, do you think? >> i think it's going to be a fascinating discussion as it's between two of the most powerful women in the economy. there's not much that janet yellen has the potential of saying about how the fed sees financial stability that will change the way people view the fed. it's unlikely, for example, that she would endorse the idea of popping a bubble. on the other hand, she has been saying financial stability is something that should be something we think about. >> do you think there's anything she could say as far as the data is concerned right now that could potentially give the market pause for thought? i know you're saying she's going to stick to the script here, but there does seem to be a lot of optimism in the markets right now. they read across some of the data, at least reading between the lines on som

imf growth projections have been downgraded twice this year and are currently close to zero. the uncertainty created has led to challenges for russia's economic outlook, its most prominent companies and economic policymakers. president putin himself has said western sanctions imposed on russia have had real impact on domestic businesses, including limiting to access to funding for many russian companies. as recently as this week, russian deputy finance minister conceded western sanctions are having significant impact on the russian economy. he said, quote, the effect of sanctions has intensified because of the imposition of sanctions coincided with the fall in the growth rate of the russian economy. indeed, we have witnessed more than $50 billion in capital fight this year and the imf and russian central bank projected net outflows for the full year. increased risk premiums caused a spike in borrowing costs shutting many russian companies out of external debt markets. their government's actions show otherwise. the russian central bank has raised key interest rates twice this

plus one day because the anniversary was yesterday at the beginning of the imf. you've been a terrific speaker in this. thank you so much. >> thank you so much. [ applause ] >> on the next washington journal, we'll look at some of the key issues before congress, including immigration. with grofre northkwift president of tax reform. we will take your questions about recent supreme court rulings regarding abortion and contraception and we will look at global oil production and a report the u.s. has surpassed saudi arabia and russia as the world's largest oil roe deucer. >> the washington journal is live on cspan everyday and you can join the conversation on facebook and twitter. facebook. >> now you can keep in touch with current events using any phone any time on cspan call to hear congressional coverage, public affairs programs and everyday listen to a recap of the day's events at 5:00 eastern on washington today. you can also hear audio of the five public affair programs beginning sunday noon. call 202-626-8888. long distance or phone charges may apply. >> accor

the imf treaty is a cornerstone of the european security. the treaty sought to eliminate the nuclear threat to western europe and the european parts of the soviet union, the fact that russia is violating its obligation is another sign that under president putin, russia is operating in a manner that threatens the security of all european states. we cannot delay in sending someone in view of that reality, in view that president putin enjoys soaring approval ratings, but doubles down on his reckless course in ukraine, a lot of innocent life with the downing of the malaysia flight 17 by prorussian levels. not when the ukrainian army is making advances in the east. putting weaponry into the irresponsible hands of militias. i signed a letter to president obama last week asking for immediate sanctions against russia's defense sector, including preventing russia from providing weaponry to the ukraine. we need an ambassador in moscow as events continue to unfold. i hope both sides of the aisle will agree to accept officer taft's ambassador. he's a li

and imf put money where our mouth is. otherwise as the chinese say, big noise upstairs nobody coming down. and that is very much a possibility given the nature of western behavior which has been lots of rhetoric some sanctions which are, you know a very specific, targeted area but not much in my view of a larger strategy. and that is where the role of energy, i think, becomes very important. i'm reminded that the prime minister of the u.k. said recently we have to realize that energy is not a fifth level consideration, it's a first level consideration. and i'm glad that our european friends are coming to that conclusion. we, some of us here in this town have been feeling this for quite a long while, and i'm glad that there's some statement to that effect over there. so what about this role? i'd say it's crucial but in the past it was crucially negative and in the future it has to be crucially positive. in the past, corrupt middlemen siphoned off with gas revenues ukraine's gas came at exorb stand prices and russia pressed

the violations of the imf treaty have been known on the hill for quite some time. i think the administration finally decided they had to fess up to one violation and, by the way, there is another that they don't mention in the report that they issued today because, otherwise, it would leak and be even more embarrassing to them. but there is no indication that president obama understands the gravity of this violation or for what it means for the larger issue of u.s./russia relations or russia's broader efforts to advance its interests around the world. >> all right. so you talk about -- what does it mean for the broader picture? i mean if they're violating this? >> well, the president was asked today is there a new cold war between the united states and russia? and he said no, this relates to a specific issue we have with them over ukraine. when he proposed additional sanctions. now, these sanctions and the entire obama administration policy on ukraine have not deterred the russians one iota from using military force to try and change borders in europe. they have al

he suggested that the imf is on the same page providing that money. froman chilcote joining us kiev. president obama said the evidence shows that malaysian airliner was likely shot down over ukraine via russian-made missile fired from separatists held territory. he called on vladimir putin to and russian support for the separatists. peter cook has more from the white house. >> the president called it a global tragedy that has claimed nearly 300 lives. one of those lives is an american. the president went on to call for a cease-fire calling for a credible international investigation of the crash site. he went on after that to talk about exactly what the u.s. believes happened. specifically saying the u.s. is confident it was a surface-to-air missile fired from within rebel controlled area that took down the malaysian jetliner. he stopped short of assigning blame to the russians for what took place there but he did say there is some measure of responsibility for vladimir putin because they have escalated the tensions. take a listen. again, russia has re

the imf plays an important role on this process as a forum for representatives from the world economiesed with promoting financial and economic stability locally. i expect to both contribute to and learn from ongoing discussions on these issues. thank you very much. ♪ [applause] charles: as you can see, janet yellen sitting down now. christine lagarde is going to conduct a q&a session right now. are we going to listen into some of this? >> i am offended of the currency situation. monetary policy and credential tools could be used in sequence, in parallel, different circumstances. i would like to maybe talk about this to say loyal. what would you say? would you say the tools are second fiddles? or would you say that depending on circumstances, that growth prudential tools become this. they have to deal with the issues as a first line of defense. >> i think my main thing here today is the macro prudential policy should be the main line of defense. i think the efforts we are engaged in in the united states brought all countries. the efforts that we are taking to globally transform the resi

the guard at the imf pulling the imf for one or two years over to the new neutral.he new neutral, or can we be more optimistic? >> i am on the optimistic side. the biggest scar from the great recession will be the smaller labor force, less investment in the u.s. from that new level, we will see continued expansion and growth. >> what drove the image -- what drama janetday, the image of yellen and christine lagarde. angela merkel it would have been great. >> it was a very substantive speech. i listened to it this morning and i was impressed with the depth that she went into with her speech. she made it clear that macro prudential relation is a first tool, as i think it should be, and when it comes to battling financial bubbles in the financial sector. i thought she could not have been more clear. >> its frame the debate. she believes that the fed cannot fix bubbles, right? >> i would not go that far. the fed is a major regulator. she talked about underwriting standards were the fed played a major role. she talked about capital standards where the fade that's where th

that worked for world bank and imf. that is diplomatic work for the u.s. and leverage we're trying to give to ukraine to promote those kind of reforms. until you do that, you have countries, companies like shell and chevron that want to develop shale bass in ukraine who they hope can export to countries that can make market price. only when you get internal reform in ukraine that the domestic market will be attractive. there is lot of work to be done. absolutely you can do more on energy efficiency and pricing but no one will invest in energy efficiency unless you save money on electricity bill to to invest higher technologies better windows or thermostat, until you pay the for the electricity you're consuming you don't have a price signal. and that is important to do. >> i might add a comment here there's a real problem and challenge in terms of the timing of these issues. when you talk about shale gas development in ukraine, and i hope that there will be plenty available pause if, to the extent there is, the development of resources also a little bit on

>> we are still in the program with the imf. we agreed to a new austerity package.xpect that the imf is going to support ukraine. this is within the same loan deal. the last question i have is everyone was discussing this just a few weeks ago. the idea of an energy deal between ukraine and russia is something we contested by now. >> we brought them to court and they brought us to court. a few weeks ago we had talks with the coo. russia theto market-based approach. in low season, the price for the gas is $300. in high season it is 325. this is entirely market-based. russia refuses to accept the deal. it is all about politics but not becoming. they use gas as a weapon against ukraine. >> the prospect of a deal looks less likely? plan on hown action to survive. it is very difficult. 7 billion cubic meters of gas. it is quite supportive for us. on the other hand, it is not enough. we have also seen another press conference with the prime minister. he made it clear that it is now almost certain that the weapon was supplied by russia that downed that plane. the training w

come, a fresh debate on recovery and the imf is having second thoughts.are joined about that. >> the semifinals and the world cup this week. the netherlands and argentina. viewers are watching the games by the millions. the exclusive interview. we have elevated interest and more than that in the game. >> our average television rating is 39%, despite the fact that that is up that much. is up.ital viewing this will be the most watched sporting event of all time. we are beyond the sochi olympics and the sochi olympics before this was over. that was the previous high water mark. that was john skipper. text that tomorrow on bloomberg. -- catch that tomorrow on bloomberg. in yorkshire, of all places. ryan caught up with a russian millionaire and found out how is going to shake up the sport. >> he put the champion of siberia before he made hundreds of millions selling credit cards. now, pumping his money and energy into his own team. he wants to talk to me about it while doing writing. -- riding. >> to what extent is this about making money and you being a rich

that worked for world bank and imf. that is diplomatic work for the u.s. and leverage we're trying to give to ukraine to promote those kind of reforms. until you do that, you have countries, companies like shell and chevron that want to develop shale bass in ukraine who they hope can export to countries that can make market price. only when you get internal reform in ukraine that the domestic market will be attractive. there is lot of work to be done. absolutely you can do more on energy efficiency and pricing but no one will invest in energy efficiency unless you save money on electricity bill to to invest higher technologies better windows or thermostat, until you pay the for the electricity you're consuming you don't have a price signal. and that is important to do. >> i might add a comment here there's a real problem and challenge in terms of the timing of these issues. when you talk about shale gas development in ukraine, and i hope that there will be plenty available pause if, to the extent there is, the development of resources also a little bit on