imf. china came to the imf and said, what to we have to do to get into there, right. the imf said, do these things, we'll put you in. hopefully it moves forward. >> there's a lot of focus this week not only on the chinese market which has been turbulent yet again over the last few days but in the markets in general, lots of economy data on the calendar, the ecb meeting this week, the big jobs report of course. joining us now, adam parker, the chief u.s. equity strategist at morgue stanley. live from new york city with us once again. welcome back. i hope you had a good thanksgiving. it's good to see you. >> good to see you too. >> all right. your note for 2016, your headline, feeling worse but not sure we can explain it. i'm going to ask you to explain it now. what does that mean? >> it's kind of a buzz kill, you know. i came into the process. we do collaboration with our strategists around the world. as we kind of went through our normal diligence over a few weeks together, i think the collective team came out of it a little more cautious. it's about 4% a year. on top

what does it mean for the imf, if anything?overnor of india's central bank coming to china's defense about a week and a half ago. he said that it is unfair to blame china for the stock devaluation on august 11. this is unusual. china and india compete for investment and trade. changesd for governance at the imf and the world bank. is part of the emerging market block seeking more representation. can he for some changes? rishaad: thank you very much indeed, robin. china's first domestically designed passenger plane being handed over to its new owner. r.j. 20 12red a new chengdu airlines. of over 3000ge kilometers. it is competing with rivals from other airlines. in a transaction worth more than $4 billion. from aainder will come shared sale to its holders. a trading hold since the beginning of june. china -- as china's market gets underway, we have climate changes. pollution is at its worst in 13 months. pollution in china and other countries is the issue on the agenda. let's have a look at what we can expect as these talks get

the imf could be including the yuan in the basket. see more devaluation and the yuan in 2016? see --robably expect to i do not know if you can use the word devaluation anymore. almost everybody is pricing in that the imf will add in the yuan to its reserves currencies. the question becomes, how much? devaluation and the methods of intervention does need to be taken out. i think you will see that shift naturally. clearly, still concerns that exports of chinese goods are sliding. concerns,europe, big big double-digit declines. they do need to see a little more competitiveness. angie: a good point. meeting let you go, ecb this thursday. how significant is that? evan: significant enough. the question is whether the markets overpriced it. if you look at the two-year bond, 41 minus. u.s. dollar is saying heavily that there will be shock and awe. angie: we are watching it here at bloomberg. live.ucas joining us we will take a look at the weakening rupee ahead of india's gdp figures. ♪ haidi: these are your headlines. it is a crucial week ahe

the chinese yuan got a big boost from the imf.l tell you what this means for the currency and the global market. ♪ scarlet: you are watching bloomberg. i am scarlet fu. here's what we are watching right now. in imported milestone for china's yuan after the imf approved adding it to the reserve currency basket. what is the global impact of this decision? in order for the megamerger between sab miller and and death to go through, a few beer brands need to be kaluz. and cyber -- need to be cut loose. and cyber monday continues growing get what amazon is the leader in this space. let's start with china. the imf has approved china's request that the yuan be considered a reserve currency. the fund added that the yuan would have a 10.92% weighting in the basket. christine lagarde explained the global impact of this decision. lagarde: it will clearly better represent the international community based on those criterion of trade and freely usable currencies. a pair of beer brands could be sold so that the biggest brewers could merge. peron

the imf has been generally supported. came during the visit to washington in september of this year when president obama said the u.s. would support inclusion if the imf decided the currency met the technical criteria. >> i think this is bigger issues. on the currency issue, there seems to be pretty much a line in terms of inclusion. changewhat is going to once we see this vote? what changes for the currency market? >> not very much changes. i think what we will see in the short-term is global central binding is a little bit of r&b to the reserve portfolio. not a very liquid currency. most central banks do not need them for very much of anything. i think we will probably be high-fiving -- see high-fiving in beijing but no major change in trading pattern. betty: so there is no literal market impact, then why is it so important in china? why is it so important to have this? >> the chinese see themselves as being the co-anchor of the international financial system with the u.s., and probably as being the more responsible par

to imf is deciding whether include the yuan. we will look at china's feature -- future on the global stage. good morning. we have tom keene. it's a treat. tom: we brought rain with us. i was told this weekend there was no sun in london since september. what an exciting week in the end up in paris later this week. a few things are going on. jobs data onhave friday. it's going to be a very big week. here is vonnie in new york. vonnie: good morning. more than 140 leaders will try to reach the first company to deal to curb greenhouse gases. president obama and other leaders are in paris. there is broader support for a deal that was the last conference six years ago. one sticking point is how much power countries will cut their omissions. a demonstration turned violent. the french president and police were involved. police arrested more than 200 demonstrators. france had been demonstrations as part of security members -- measures. the eu and turkey have agreed on a deal to slow the flood of refugees to your. turkey will increase his

a big day for beijing as the yuan expected to be promoted to the imf elite reserves. china sea as a potential driving force find a new global deal to cut greenhouse gas emissions. foreign investors helped fuel a three-year rally in japanese fuel chips. plus, timeless elegance. could set a world record when he goes under the hammer in hong kong. we're talking about 2 million u.s.. all that and much more on this monday edition of "asia edge." >> keeping an eye on asian markets. we are looking at a mixed slower picture. cuting to expand qe and deposit rates. payroll data from the u.s.. they.hey or won't we are taking a look at where we are sitting ahead of that midday break. hong kong shares sitting exactly flat caps on high gain back -- as shanghai gaining back earlier gains. we had the worst weekly performance last week or china. take a look elsewhere around the region. up 1.5%. the nikkei up by 4/10 of a percent. sales growth were the surprise on the upside. the 200 down by just about 3/10 of 1% on account of a bit of a selloff in commodities prices. we are seeing on

also for the imf, it's seen as a very huge step because it's seen as a way for the imf to appear more inclusive of the emerging world. the big question is just what it all means for global investors in the yuan in particular or in the emerging market currencies. in theory there should be more demand for yuan assets. in practice because of the way the government restricts asset classes here and also heavily controls the currency and other assets, many investors have been put off. now there's even some concern that actually the yuan could depreciate just because of the way the economy is headed, it's slowing down, and also because u.s. interest rates are set to rise. so overall we could see not much of a bump, at least not in the short term. >> all right, eunice. thank you so much for that. >>> want to take you back out to paris where french president francois hollande is speaking at the opening plenary session of the meeting. >> translator: we need to wake up to the severity of the threat posed to balances in the world. climate change will bring conflicts just like clouds bring storms.

it's also important for the imf because the imf has been criticized for not being inclusive enough of the emerging world. the other points you had made about the impact on the yuan, whether or not this is over behind, and that is very much up for debate because on the one hand in theory what should happen in the global markets with the inclusion of the yuan into the global basket of currencies by the imf would be to have an appreciation and demand for yuan denominated assets. so you would have a lot of investors out there interested in buying up stocks and bonds or including the yuan in their portfolio in some way, but at the same time in practice it's all very limiting. chinese markets are limited, restricted and also just because of the -- a lot of the heavier handed tactics have made them weary of chinese plays. so those two forces really run counter to each other where you have on the one hand a big push to try to buy into a lot of these chinese assets. on the other hand, in practice the fact that the access is so limited and the fact that it's so risky has made it very difficult

to imf is deciding whether include the yuan. look at china's feature -- future on the global stage. good morning. we have tom keene. it's a treat. tom:we

the former head of the imf china team was quoted as saying he thought the imf bench uan,s of including stretch the criteria because it is not one of the freely traded currencies for a big currency. do you agree? i agree. the imf has spent to the chinese demand. on the other hand, we have to be realistic. china is the second largest economy in the world, the biggest trading nation in the world, and i think it is very not in absurd that it is the basket, so i think they basically faced up to the reality. the reality is that this is a very important trading nation, and it will become very important in terms of global finance, so if you do not have it in the basket, it will have a long-term problem going forward. joe: so everybody basically says that this particular recognition is kind of symbolic, but in terms of hard steps that china needs to take on the reform front to make itself an international destination, to open up its accounts, to liberalize the currency, what are the key things we should be watching for? n: well, they have to remove a lot of capital control. right now, if you ar

guy: up next, we will talk about china and the yuan, and the imf.he big move, we will come back and a moment. ♪ we live in a pick and choose world. love or like? naughty or nice? calm or bright? but at bedtime ... why settle for this? enter sleep number. don't miss the ultimate sleep number week going on now! sleepiq technology tells you how you slept and what adjustments you can make. she likes the bed soft. he's more hardcore. so your sleep goes from good to great to wow! give the gift of amazing sleep, only at a sleep number store. this week only, save 50% on the ultimate limited edition bed. hurry, sale ends monday. know better sleep with sleep number. let's get to our bloomberg first word news with ryan chilcote. reporter: turkey and eu leaders agreed on a deal to stem the flow of refugees to the nation. turkey will get a package of 3 billion euros in assistance. this as the eu is tangling rewards that could bring them closer to potential membership then at any point in the past decade. vladimir putin announced measures in the downing of that j

attention to the imf currencyhe reserve basket. an outright yes is the most probable according to the biggest banks. china has ticked most of those boxes there. china wants to join the currency basket to underline growing influence in the global economy. j.p. morgan chase thinks it is a done deal. standard chartered saying something unexpected and surprising would have to occur for china to miss out on approval. it could be the plot of a bond movie. eight shadowy web of stock manipulators and online considers. american prosecutors described a widespread, multiyear criminal enterprise that helps financial companies steal information. suspects have been identified, conspirators in more generateden countries hundreds of millions of dollars with stock schemes and online gambling. the hackers also falsified passports and took control of a new jersey credit union. the global network stretched from the middle east to the u.s. itself. will try to get you back to the singles day headquarters at alibaba, which g.s moved to beijin where are w

. >>> the imf just voting to add the u.n. to its basket of reserve currencies as expected. sara eisen is looking at the impact of the move and i think what's quite incredible, it has a greater weighting than the pound and the japanese yen even. >> absolutely. this is a big deal, even if expected. it is a vote of confidence in china's growing economic power and influence. the head of the imf christine lagarde saying china's currency, the rue wan will be added to th basket. it is an acknowledgment of china's many reforms it's taken to open its markets and economy and it's assent to economic super power. though the dollar is still king. it makes up about 41% of the imf reserve currency. 30% is the euro. 11% will be the chinese yuan and the japanese yen and british pound making up 8% each. so yes basically china takes the number three spot in terms of the world's most important currencies. it is a milestone for china's effort to become a global power player and a safe place to attract investment from around the world though the imf did acknowledge there's still more work to be

next up on this program, the imf is set to announce whether it will add china to its basket of reserve currencies. jon: good morning and welcome back to bloomberg tv. but you caught up on bloomberg's top stories. jpmorgan believe it's bonus pool roughly unchanged from 2014. the banks push to reserve the bonus pool bucks the trend of which a bank which is preparing to cut payouts. the chairman and ceo of brazil has stepped down after he was jailed indefinitely. andre estevez was jailed after the country's largest corruption probe. he has denied the accusations made against him. turkey and eu leaders agreed on a deal. they will get a package of 3 in exchange for meanwhile,ugees and russia has announced measures against turkey in response the downing of one of its military jets. another big story today, in china, the imf officials gather today in washington to find out if they should make them one of the reserve currencies. if approved it sits alongside the dollar. our chief agent economics correspondent will be joining us very shortly. julian chillingworth's alongside me to discuss it. d

as we just heard christine la garde talk about, now that it's time for this imf system, there's goingto be more pressure for china, even at the time that their economy is slowing down and struggling a bit, that will be a promise for china. china has been pushing for this move and they are sure to be very pleased by this move which does not officially go into effect by the way until september of 2016. >> thank you, kristin saloomey, at the ne new york stock exchan. >>> burkina faso, parliamentary elections, the new people in charge will take over from a transitional government put in place after the ousting of blaise compaore. delayed by an attempted coup. pope francis has ended his tour of africa with a visit too a mosque in the central african republic. heavy security there, called for peace and reconciliation between the christian majority and muslim minority population. years of division have recently grown into a conflict that has forced millions of people from their homes. gerald tan has those details. >> the pk 5 neighborhood is surrounded by armed christian groups. speaking ins

. -- imf. is a fiscal, monetary? what are your analysts telling you?anus: well, -- nick: well, the big one is the interest rates. globally, china's interest rate is currently at a benchmark of 4.25%. there is a lot they can do their. what they are worried about is that old line that warren buffett gave -- when you throw too much money from helicopters, at some point you will see adverse effects. the question is if they really step on the gas, are they going to be creating a monster or creating problems that they can solve later on? what they are hoping to do is to tap the accelerator, take little stimulus numbers, but really over slamming it down and stimulating the economy and flooding it with new money. that is the tension we are seeing right now. manus: nick, thank you very much. we know what to do with the extra money -- spend it on alibaba. simon is still with me. simon, you and i touched on the data, and i asked to is that stopping investors -- give me the feedback on that. i think it is fascinating what you said to me in the break. simon: first

congress would have made the money to the imf to allow a reform of the imf so china can get more than belgium's vote. >> the u.s. has like 40% of the votes. >> the key then is we in the west and high-income countries, we want china to not just set up its own institutions, like the aaib, but want them to join the multilateral institutions we already have. >> don't you think -- the chinese aren't stupid. won't they see through that? they don't have the votes, but longer term, is the west on board with china's big ambitions? >> i don't know about the big ambitions, but this is the real issue. china, i think, wants the recognition -- when i talk to chinese officials, i'm struck by the sense that they think the u.s. and europe have done them a disservice, haven't given them the respect they think they deserve. getting the recognition is what they want. but i agree with you. they have bigger issues. and bigger agendas. but the short piece is they want respect and acknowledgment of how far they have traveled. >> you're looking for sustained dollar strength in '16 or '17? does dollar index go

this isn't linked with the imf, the imf allowing it to be within to the imf, the imf allowing it to bereserve currency status. the imf wants china to be more flexible. moreng it lower would give stimulus to china but it would be detrimental to some of the trading partners of china, who would feel on the other side of that. not an easy balance for china. francine: as a final thought, fxt is your favorite pairing? jane: probably euro-sterling. a big story. francine: linked to brexit? jane: boe and ecb. francine: what is your call? jane: i think it will go lower, mark carney does not want it to sink too far, too fast. francine: a high pound is probably his biggest headache at the moment. jane foley from rabobank. i don't know how the diversions between the ecb and fx pairing? jane: probably euro-sterling. a big story. francine: linked to boe is playing out in the states pit we boe official saying we have to look through the price shocks. tom: the basic idea, they like to look through the price shocks. that ban-- that banner on the german negative yield was something. a really good time to

particularly how does the imf sdr basket or special drawing reserve how does it work?> for the average person the sdr doesn't mean very much. it is essentially an artificial basket of currencies that the imf generally uses when it borrows money from its member-states and as such is really sort of an intragovernmental thing that doesn't affect the man on the street. but on the other hand, what can you view the sdr as is essentially an attempt to create a single global currency. what should that currency look like and which national currency should be included in it? now it has been decided rightly in my opinion that the chinese yuen should be included in this best prkapproximation of the gll currency. >> what does this allow china the do? >> it doesn't really allow china to do much different today. it will probably create demand for certain banks, but the real issue in china is first of all one of national prestige. this is clearly something that the chinese government wanted, in place before china becomes or takes the chair of the g-20 next year and it's also an import

betty: thank you so much, our currency reporter, on china's inclusion in the imf basket.ill ahead, the nasdaq 100 closed at a record high earlier this month. our more games ahead, or is it time to take some profit off the table? how to risk less and save more. ♪ betty: welcome back. matt miller is standing by. kelly.'m here with kevin kind of a tame day, at least in equities. how does the broader options market look? kevin: it's kind of ho-hum. trading near the 2100 level or less. not much trading, everyone is positioned out into next year and that's what they are really looking forward to. i hate to say something is the highest it's been in two weeks, that isn't very long. abovell trading a little its level for this year but still below its average over the last 20 years. 19-20 level is historical for vix. is thehe anticipation -- iss been pretty much going to raise rates 25 basis points and figure it out later on in the year. it's a position of what they want to be in for next year. matt: so how do you position for next year? it's only november 30. of people have a lot

giving the yuen a reserve status means it can be used for transaction between central banks and the imf. only the u.s. follow the yen and the euro are part of the imf basket. >> the inclusion is clearly an important milestone in a journey that has begun months if not years ago. a journey which is a transition towards more market-driven principle of the macroeconomic framework of china. it's a milestone in a journey that will continue, indeed, and will include certainly more reforms that will add to the existing reforms that have been decided by the chinese authorities in the last few months. >> india is trying to convert mastif mass--massive amounts of gold in funding of its economy. it began issuing gold-backed bronze, but the indian public does not seem to buy it in more sense than one. here is the report. >> gold is big business in india. it's used in daily life and on special occasions. as security and a sign of prosperity. now the government wants some of that wealth to be put into the financial system. it has created several new m mcmechanisms such as depositing gold in exchange f

once we get past the imf, people will think about next year.he ongoing struggles with the trade positions. simply to avoid the appreciation in the currency, if other asian current seas are beginning against the rest dollar, it doesn't make sense to have a strengthening currency at the as you cut interest rates. it would not be a surprise to see a weaker yuan over the next few months. qatar coming up next, airways has its eye on an indian company. ♪ shery: welcome back. you are watching "first up." is trying to spark interest in a new model. speaking of the dubai airshow, to potential customers are looking at the double-decker. he said the deals may not be signed until next year. he doesn't expect any orders to be announced in dubai. 25said he was aiming for -8080 orders this year --a3 orders. ftnhasa canceled flights. 100,000 passengers are expected to see disruptions. it says it is always ready to resume negotiations. it has an eyesays on indian airfare carrier indigo. they could seek 49% of indigo, valued at $2 billion. last month, 10% sales

the head of the imf christine lagarde said her staff had recommended the chinese currency be added to the special join bright market. standard chartered estimates the move would yield was in $1 trillion to chinese assets in the next five years. japan is officially back in recession that came after its economy. contracted in the third quarter and investment fell. gross domestic product declined an annualized 0.8%. a 2%mists estimated decline. let's get more on that story. we are joined by bloomberg's jodi schneider who is in tokyo for us. what were the key factors in this worse than expected gdp reading? jodi: the business investment number was a big part of it. it was down 1.3% from the previous quarter, and that shows companies are not investing in the economy, even though they had record stockpiles of cash, and many of them, very strong stock market returns. shrunk, whichso is another big factor in the decline. anna: is the recession expected to be long-lasting? this has been for four or five years, the second since abe took charge. jodi: right, the second during abenomics. it's act

the imf recommending the yuan be included in the basket of reserve currency.st needs top level approval now. this is a huge vote of confidence. >> this is a decision in the home stretch. that goes to a vote to the imf executive board. a lot of expectation it will go through. it only gets reviewed every five years and there has been campaigning, during a number of financial and currency -- doing a number of financial and currency reforms. there could be some sort of political wrangling. the u.s. has 17% of the voting power. there were some concerns that diplomatic issues that arose over the south china sea. sayinga g-20, jack lew if the yuan meets its criteria, the u.s. will support its inclusion into the basket. it depends on who you talk to. any movement in the upside of the yuan would be a knee-jerk reaction. traders want to see greater volatility. tightlying ban is still managed. on the other hand, this move could result in inflows into chinese assets. that would be enormous. overall, the sentiment is at the very least, a vote of encouragement for chinese p

imf is at risk to be bending over backwards to china.lly, the wto trying to bring an end, is this part of a larger trend of bringing china into the full of international economics? milton: china was a back order country a few years ago. it is unheard of in the history of the world to they're going from a non-developed country to a developed country. the currency deserves to be recognized. i think it's inevitable that it happens. david: should it put some constraints on china and what it does with the yuan? be careful what you wish for. milton: the fact is that they are a world economy can affect economies that the world. they deserve to have a currency recognize. it's really simple. it's what's going to happen. stephanie: corporate defaults in emerging economies have hit a high as 2009 and are up 40% from last year. s&p says emerging-market companies are defaulting more than their u.s. peers. that is not a surprise. there are some signs that tensions with lenders are grown too awful. the institute of international fil finance says there

the timing has been interesting because we have the imf decision on the fdr inclusion or not as the case may be in beijing wants a part of that. it has a huge incentive to keep currency stable ahead of that. after that, if we get more easing and if we have the state putting through the first of many state hikes, that divergence from policy many analysts saying we will continue to see more f flow from china with that money going to be seeking high yields. rishaad: thank you shery: very much, indeed. shery:disappointed or from china has been high on the agenda for our guests today. sean callow, take a look at the impact on currency. uncertaintynote of to the outlook. if you are bullish, the u.s. dollar on the back of the rate hike in december then you should be looking for higher levels really and yet the fixings have tended to be on the low side of where models would indicate from a strictly trade data point of view so i think stability is probably the best that in terms of the short-term but if you are looking into next year i think we do have to look at higher levels on dollar china and

the imf says it meets the standards and it will have a 10.9% weighting.ly, let's talk about samsung. they are preparing for a shakeup. the annual reshuffle is expected to be more wide-ranging than usual and will include samsung's construction at ship holding arms after suffering losses. it is the first chance for the vice-chairman to make results after the executive phase last year. he is there because of his ailing father and he is expected to take over one day. emily? do we have any idea what to expect with the executive changes in samsung, in the mobile division? david: in a recent report coming sayingkorea, this is that the mobile heads will be in place. we are getting word that we are expected to see these headlines drop in the next 30 minutes. it is important to see which guys will be put in place. emily, back to you. david inglis in hong kong. that is the first word news. ♪ emily: welcome back to "bloomberg west," i am emily chang. helper starting companies like airbnb at dropbox. i sat down with the y combinator ceo sam altman. sam: there is no cl

the imf has to review it special rights. china's going shopping again. waldorf-astoria hotel agreed lift for nearty 30% premium on the price. that is when the insurer announced it will be exploring a sale. it will include expansion into the u.s. group is on the way down about 1.4% overnight. yum brands facing more disappointed. the october sales in china have been deteriorating. last month, a string of new measures -- they included a new menu for pizza hut and kfc stores with high prices. yum shares on the way down. let's have a look at what is causing a stir at the month. shopping.going anybody that likes to shop on the internet. joining me on singles day. this is set to eclipse what we have seen on cyber monday. thanksgiving day holiday. 11throw, the 11th of the and a massive online sale. $9 billion spent last year alone. >> not bad for a completely made up holiday. >> absolutely. it is couples day in hong kong, singles day in mainland china where everyone go shopping. people are saying -- the economists coming through with stats. money cannot buy you

the imf is suggesting it be included. a pretty powerful vote of confidence. >> it is high on the agenda. it is the strongest sign yet that getting the yen in is a significant thing. currency has met the criteria of being freely usable and shows -- it is not fully convertible. it is meeting the criteria. whether the board members for the imf will share that opinion, we will have to wait until november 30. the u.s. has 20% of the voting rights on that board. it will be interesting to see how they feel. there are some expectations -- it is only reviewed every five years. this is now or never. if it gets the nod, it will be the first developing country's currency to make it into that basket. it is really significant. people are asking if it is purely political. tell me a little bit about what happens next. >> talking about it being political, on the other side of the point, there are political implications because the u.s. and china have had diplomatic issues over activities in the south china sea. a u.s. warship has been sai

the imf is expected to announce that it will include the chinese yuan in the currency baskets. eunice yoon joins us live with a look at why this is so important. good morning, eunice. >> reporter: good morning, andrew. i'm not going to apologize for finally breaking up the conversation and bringing it over to china, but the inclusion of the chinese yuan into the imf's basket of reserve currencies is seen as a badge of honor as well as a milestone for beijing. it is an indication that the chinese currency has arrived. it's significant for the imf which has been criticized for not being inclusive enough of the emerging world. the big question is what kind of impact this is going to have on the global markets, in particular on the chinese yuan as well as on chinese stocks and bonds. because in theory the inclusion should create a lift in demand of chinese yuan denominated assets. however, in practice the chinese government restricts foreign access to the markets here. it also controls capital flows. in fact, there are even concerns now the chinese yuan could actually depreciate af

you talked about the news we have this week, starting with the announcement from the imf. let's start with that. how big a deal was this? it was a foregone conclusion for a lot of people. weighting is close to what people expected. 10% was banded around. it would have been some thing like 15% in the past. it is a big deal, but it is more than sterling, more than the japanese yen. it is the third most important enough five currencies. it is a big deal and beijing in terms of prestige. there will be a few champagne corks topped, i guess. there will be some demand for the currency global deserve managers, but there is no obvious correlation between w weigi -- you are hting in the sdr. there will be little selling of euros and a little buying of the renminbi. people might use this as an excuse to sell the euro, because they were doing that already. it will not alter the fact that probably theuan is most overvalued of the major currencies right now. david: this is some think people will have to address at some point. when we talk about over evaluation, when will we get to that?

they could become an imf currency i the end of the decade. off, we want to check in with matt miller for a glimpse at the markets. it looks like we are at session lows with a lot of central-bank activity this week. matt: we expect a lot from mario draghi and we may be expecting too much from mario draghi. in any

if you look to the imf data, the recent imf data, they anticipate a 3% growth in the years to come andall don't know whether that will exactly happen but i base myself of course on those expectatio expectations. >> let's talk about moodies. they see sovereign credit ratings remaining stable. in the global sovereign outlook for 2016 which is just published this morning. credit quality looks stable overall with major economic engines, the u.s. and china expected to continue to perform reasonably well in their words but the credit ratings agency highlighted risks with the outlooks they had about a year ago. joining us with more is in studio. good to have you today. >> good morning. >> busy, aren't you? what do you think is the most important part of this that we should take away with us? >> the fact that there's been a lot of talk recently about the implications of global growth and capital market flows. we don't think that's going to disrupt the broadly stable sovereign credit trend. >> let's talk about the negatives. you're seeing more tail risk on the horizon. which one is keeping you

i would start with the imf agreement and the 50% cut and pursue the cuts aggressively. the senate and the congress are going to insist on it and i think it's a real opportunity to do it. if gorbachev is serious about much deeper cuts, i think that is an opportunity to pursue. i think the combination is a significant achievement since i don't think star wars is in our national interest. >> [indiscernible] mr. dukakis: we have an interesting situation where the democrats are going to be the president's allies. i'm proud of the fact all of the democratic candidate -- none of the democratic candidate's are supporting it and only one of the republicans is. the democratic majority in the senate i think needs to be commended but shortly after the debate, i said that radical right has had a stranglehold on the republican party and it's one of the reasons only one of the six republicans support them. in any event, it is for the national interest. you have the responsibility to step up to the plate and support the president on the issue of this kind where he has done the right ha

you have an opec meeting, ecb and china getting into the imf strategic reserves. we'll talk about that later on the show. a lot of big picture events. could there be a santa claus rally and did we already have it. and the ibb move is not that big of a deal when you consider the volatility that tracked biotech. and if i look at biotech shares, they've been sideways since july. and we've talked about loss of leadership for this market. none of this -- this narrowing is very consistent with that. >> down 1.5% doesn't sound that bad when you look at big biotech. those moves were pronounced to the down side. talking about celgene, town 3% -- down 3% on the day and no new news. >> and they have been going sideways for months now, as tim mentioned. but once we turn the calendar year, we are in a presidential year and drug prices is a hot, hot topic here. so i think you have the situation where this sector was outperforming almost every other sector in the market as of this summer and now it has come off 20% or so and there is dispersion between the results. there was mid

among the former imf economist's recommendations - even more cuts to education. >> but it shows the expenditure and school enrollment, how it has declined, school enrollment and how education expenditure has increased enormously. we have been very careful to say that we believe that this is a decision that has to be taken by the authorities of the island. education is too important to be played with and be cut in a irrational or discretional fashion. >> but your co-author briefed reporters that puerto rico is massively overspending on education. >> i mean, that was the message, that came out from the report. >> this is true. people-- i mean, this is for the government to decide. >> that they're massively overspending? >> if you look at the expenditure in education, it is high. >> and do you also need to close schools? i mean, the government has closed around a hundred already this year so far. is that something that you think is helpful? >> i don't want to get too much into this. i'm not an expert on education. what is essential is that they were living beyond their means. i mean, this is somet

the imf executive committee scheduled to meet to discuss if an and reserve currencies.enjoyed being with you for the market close. julie, well done. i will see you all on monday. have a great weekend. ♪ new york and in 1:00 a.m. in hong kong. >> you are watching bloomberg markets. from bloomberg world headquarters in midtown manhattan, good afternoon, i am erik schatzker. >> and i am alix steel. here is what we are watching. by 5 p.m. in new york on wassday, $1.1 billion already spent online. we are going to check out if the rick and mortar situation -- check out to the brick-and-mortar situation. and another dark day for our glaze -- barclays. they are facing an accusation of financial misconduct. we will discuss. erik: let's find out how the financial markets are shaping up. julie: about an hour left in the trading session on this

-- if you look, since the second world war, not a single recession was predicted by the fed, by the imf, or by the consensus of professional economists. so one should not take the fact that people are not so anxious about recession as evidence that necessarily it will all be ok. anthony: we will be back with more. " is sponsored in part by coke >> "wall street week" is mounted in part by morgan stanley. gary: you are on twitter, you were on facebook, what do you think of the whole social media world, and what does it say about the economy in the sense that many people say it is changing the dynamics between people that actually work, and people that do other things. sec. summers: look , i think things that bring people together are presumptively good. i think things are positive socially, i think they are positive economically, they let people target advertising, to let people target products in a better way. gary: so you would disagree with lower the overall output of what an economy would do. they are saving people money, but are disrupting existing technologies, but in doing it of wo

the head of the imf is recommending the yuan be added to the special drawing rights.uld yield more than $1 trillion to chinese asset the next five years. japan is officially back in recession after its economy contracted third quarter and business investment fell. gdp declined 0.8% through september. economists had estimated .2%. let's get back to our conversation with richard tise. leave.euhair of the movement. is saying -- we won't leave the u.k. if there is a brexit, but it might influence their investment strategy. isn't that something your side of the debate needs to listen to? >> i don't think so. companies, all of o these people have said that it won't impact on their british businesses. they won't impact their investment plans. ground ince on the terms of what people are investing into the u.k. sibley doesn't back that up at all. the reality is we have such loquat for a, good -- such cooperation, there is no reason. --a: one specific reason was for example, electric cars. that requires a great deal of investment, and if you link together the various research a

there is another strong link between the economy and security , and that is an alarming report from the imf that came out a few months back, that said at present, oil prices, and at present, fiscal policy, it continues, saudi arabia is going to run out of money and savings in five years time, and that is a politically and economically dangerous thing given the young demographic, given the radicalization that exists, and given the millions of unemployable young men. anna: as ryan was saying from the g20 in turkey, the g20 is concerned about the on equitable distribution of wealth in the middle east and north africa -- inequitable distribution of wealth in the middle east and north africa. is there room for hope at all? war: i mean, the syria essentially started four years back, and what has been shocking is a completely inadequate response from the world. more than 300,000 people have been killed. millions have been displaced. it's only this year that suddenly because of the number of refugees coming to the european borders, or seems to be a perk up in political interest to do something, and

magnus: people keep going on , the risks on emerging markets from china, the imf talked at great lengthacing company debt it emerging companies, more and more of which is in bonds and u.s. dollar denominated. the dollar will go up. interest rates are translated along the yield curve. it is not share the world is prepared. they would be less prepared if the third set on its hands for too much longer. tom: let's talk about aggregation. guys like you, going back to when you were at westminster, deal with a big aggregation. we shouldested that break it apart and look at micro economics, the individual cities, etc. how a part is the united kingdom, the united states, as ?e go to this jobs day how apart are the haves and have-nots? mr. magnus: there is that dichotomy. it is ubiquitous. the trouble is from the point of view of policymaking, i'm not sure that we understand how we can incorporate that into policy , macroeconomic policy, which deals with aggregates. we are talking about the jobs report tomorrow. not small, but a classic example. what is going on underneath headline numbers of job

no, i got it from the imf grant thing and did you hear of it?the offer seems too good to be true, but...you can trust your friends, right? leslie went to the link her friend gave her and was told she too qualified for some cash. leslie: "it says international money fund. this is to certify that leslie sanzo has been awarded the sum of 50 thousand usd and has been cleared of due process and other related issues" a man named scott kimberly went back and forth with her about how much the 'transportation' fees were going to cost. they settled on leslie paying 600 dollars. she wired the money. then he told her they needed more - because the truck had been pulled over by the i-r-s . she started asking questions, and that's when more than her money disappeared. "i kept checking his facebook and his facebook was still there and kept checking my messages... and all of a sudden his facebook disappeared." "it is very clever, but we are seeing new scams develop every single day." christopher miller with the i-r-s says he isnt surprised leslie was told the m

sunday only the '50s and head toward monday morning half inch of it may be their will to the cluster imf and eddies and saturday cuttable but later in the day/ than in the '40's, the mid-60s seventh discovered near 70 for the west in the spot and looking ahead here fully considered in light the morning a few showers in the afternoon when: sunday. then another storm moving monday morning with a little more rain check the we. it had after that an extra strain of the 70 forecast ahead fixing scandals involving have scandal. >> pam: from the blood showing the musketeers bar and you found inside the mother reported her daughter was not her but very shocked that triggered trading in concord we spoke with some people in the area of think anyone from this neighborhood would think about doing such horrible things that kids like her appear mother for who wish to remain anonymous urging parents to check children's candy before the kids take a bite still had to save big security changes travelers heading into the ad states warning for lawyers than for the organization wanted to know for you by next

but the imf has a difficult task, and a difficult balance to strike in trying to protect those clean athletes as much as they can, but to send a message and punishing russia for the sins that it has committed and trying to reform them as much as they can. >> it will be interesting to see what comes out of the conference call. live from moscow, thank you. >>> russian police are taking dramatic action after discovering a load of contraband caviar, worth more than $100,000. the kilos of black sturgeon caviar was discovered hidden under flowers and inside of a coffin in the region of eastern russia, close to the chinese border. >>> india's prime minister is currently addressing an audience of 60,000 people in wembley stadium. >> the prime minister! >> prime minister david cameron introduced him to the stage. at a venue that's used to hosting rock stars and politicians. you can see the live pictures of modi speaking, the 1.5 million strong community is intending to welcome the event. prime minister modi is on a three day visit to the uk. and so far, $14 billion in business deals have been

. -- that the imf released three years ago.s if youhere penalize those banks too much, that may lead to negative retail deposit rates. it could destabilize financial systems. the idea is to strike a balance between maintaining an adjustability and keeping the pressure on the euro. the irony is however, to the extent that euro was sold by the depositary's, fearing lower deposit rates, the irony is if those new measures world shielding such banks at the banks, thewholesale point being investors , theyoking the details are looking at a reason to sell the euro. euroghlights how bearish sentiment is in the markets. jonathan: coming up, to russia, frenchpresident along -- president along -- ♪ the reports also said the steps taken by the companies to prevent -- were not sufficient. the spanish were noble energy company is facing tough choices. they have to decide whether to chances one their settlement. on the edge of coming spain's biggest corporate bankruptcy case. the french finance ministers says it is possible the paris terror at

it is something the imf has been pushing for.any voices in your that are not so keen on that conversation. reminder tois is a greece that debt relief issue. bank recap was the thing to resolve at the moment. into --er we get [indiscernible] the issue with the imf here is they say we don't want general reassurance that these will be tackled, we need a strict plan on how risk will get -- on how greece will get that relief. problemwould not have a on a cut on the nominal debt of greece. europe zone peers -- euro zone peers say lowering interest rates is what we can see, but --st has to take the ball but first greece has to take the ball out of its court. always a pleasure. thank you very much. , hsbcstaying with banks reported a jump. great to have you with us, what did you make of the numbers? they benefited from they do not have to pay so many fines. give us the true picture, david. david: good morning. i think the results are remarkable, because we are a 4.4 -- in spite of reduction. an increase of 33% on the compliance costs whi

if they keep spending at the current rate, the imf reckons, saudi arabia will eat through its reservesfive years. they can keep borrowing and spending after that. aat you're likely to see cutting away of some subsidies. energy subsidies. you will see baby steps toward that to rein in the deficit. for the most part, he will be praying the oil prices will start to hans backe where they were so they can continue to spend without record deficits. jonathan: thank you for bringing that down. for a bigger picture, look at the oil market. let's bring in will kennedy. look at the noise coming from saudi arabia it at the push back against this call from s&p. call.look at the s&p a lot of people are looking at it saying it doesn't make much sense. doesn't make much sense to you? will: not really. i think this is going to be key to saudi policymaking going forward. whether their policy is working there oil market. oil remains at a very low price. we are starting to see signs that american production is falling back. are going tothings lessen production going forward. jonathan: when you look at wha