imf.he main risks are persistent market turbulence and tighter financial conditions. sharper than expected slowdown in china, weighing on markets including turmoil. then, a further drop in oil prices that will exacerbate the problems these economies are having. recommended suggestions in the janet, to the fed, yellen, must have clear evidence of inflation for any further hikes. japan, if you go into negative rates, complement that would support of policies. china, clear communication. hopefully they will say something that will be useful. , asaad: i tell you what were talking i'm looking at sharp. no confirmation, just nikkei reporting that flash headline that foxconn has one out. up, then down 5.2% -- 5.8% up, then down 5.2% -- bybig block cell, big block big blockck sell, live. rishaad: let's look at some other stories. there could be a big announcement from china's richest man. he is planning to invest in a retail development outside of paris that will include a theme park and hotel. sp

the imf is likely to cut its outlook in april.n has said it would postpone any signing of a definitive agreement with sharp as it is reviewing new material information. earlier it, it was announced that foxconn would buy a 55% stake in sharp. global news 24 hours a day, powered by our 2400 journalists in 150 news bureaus around the world. fran: let's talk more about the u.k. economists surveyed by bloomberg say the property ability -- the probability of recession rises to 40% if the u.k. votes to leave the eu. scaroni,ng in paolo deputy chairman at rothchild, and our tonio -- and antonio garcia pasqual. just a quick comment. do you think ceo's would leave the u.k.? i've lived here for a very long time. theill find it crazy that london mayor says london will be fine outside the u.k. paolo: i'm not expecting the brexit. i think at the end, brits are very reasonable people and they will be reasonable in economic terms. therefore i don't think brexit will happen. the position of the mayor of london, the mayor of london is always kind

there are two things the imf does.they are responsible for hectoring governments into more responsible actions. the other thing is they have to wade income will roll up their sleeves, and work on the details. how has she been with the details of negotiations that have happened on her watch? tom: i would suggest she has high marks for that with one careful note. william lee of citigroup who is a first-order economist has been that theical stormtroopers aren't there anymore. when william lee was at the imf, this was an institution that went in and said excuse me, here is the way we are going to do it. as you reported in europe, you haven't done that in europe. you haven't talked to europe like they would talk to a given country in south america. it has maybe been the number one criticism. brendan: the other thing they do is they are responsible for forecast. they have been a job and looking at what they got wrong and changing their models. can we place that? tom: that is an important question. i worship the blue book, th

the imf want some sort of fiscal push to happen. the u.s.e are kicking up and kicking back of the europeans. it is not looking good or harmonious right now. being made byoint the imf but also by the chinese deputy finance minister saying the west cannot rely just on monetary policy alone. we need fiscal policy to help it. that is a swipe at the europeans, the americans. it's become something that is more important part of the narrative we will be dealing with in the coming weeks and months. it doesn't point to a g-20 meeting where we will have peace and harmony and some coordinated effort to deal of problems at the moment. hans: you follow currencies closely -- more closely than i do. it seems like every time there's a battle for the communicator to figure it will get there first. have you ever seen a communique actually move the fx market? richard: i would say it is a rare thing. these things are well telegraphed. it is not something way gets a massive surprise out of the blue. i say that, and the stomach could get something for a surprisin

christine lagarde, the managing director at the imf.ang xinghai, vice chairman of china's securities regulatory commission and director general at the intercontinental economic department. gary cohn, president at goldman sachs. zhang xin, chief executive officer and co-founder at soho china. and ray dalio, chairman and chief executive officer at -- chief investment officer at bridgewater associates. thank you so much for joining us. ray dalio, is there something that the west misunderstands about chinese markets? and does that exacerbate the volatility we have seen the last few weeks? mr. dalio: i think there is a lot the west does not understand about chinese markets. i think the essence of what's going on in china is an adjustment. they have four major challenges. they have a debt restructuring challenge. they have an economic restructuring challenge, so they have to come up with a new model for the economy. they have a capital markets challenge. to build in an efficient way that circulates capital through the system better. they have

it is the elusive currency of the imf.u asked me, if the chinese authorities would complete the reforms, that they had to take in order to satisfy the criteria of that currency, i would've said i don't think so. yet, when the authorities put their mind, and are determined for strategy, we have seen in that case an absolute -- i would not say perfection, nothing is perfect in this world. but, determination and ability to deliver what frankly what have considered as undeliverable to begin with. so, if the same determination is applied to the reform of state-owned enterprises in relation to the clarity of messages concerning the transition, clarity of communication concerning the framework, in which they will define their policies going forward -- even if the growth rate is not 7% and closer to 6%, it will take a little bit of time as we said earlier. but, we believe they will deliver. it's a massive undertaking. reforming state run enterprises is going to require a fund for these issues. they have done that in the past alrea

it is the elusive currency of the imf. if you asked me, if the chinese authorities would complete the reforms, that they had to take in order to satisfy the criteria of that currency, i would've said i don't think so. yet, when the authorities put their mind, and are determined for strategy, we have seen in that case an absolute -- i would not say perfection, nothing is perfect in this world. but, determination and ability to deliver what frankly what have considered as undeliverable to begin with. so, if the same determination is applied to the reform of state-owned enterprises in relation to the clarity of messages concerning the transition, clarity of communication concerning the framework, in which they will define their policies going forward -- even if the growth rate is not 7% and closer to 6%, it will take a little bit of time as we said earlier. but, we believe they will deliver. it's a massive undertaking. reforming state run enterprises is going to require a fund for these issues. they have done that in the past

. >> and in that imf report the agency said china's slowdown was adding to those global economic persons. the world's second-largest economy which is growing at the slowest rate in 27 years is also hosting the g-20 summit in shanghai. that's where we find eunice yun. >> reporter: g-20 finance ministers and central bank governors have arrived in shanghai to discuss ways to support global economic growth. imf called for the g-20 nations to take bold action and conversations have large by centered around fiscal policy or the use of structural reforms to try to offset some of the pressure on monetary policy as well as exchange rates. now china has come up as largely a risk, the slowdown of course has roiled the markets over the past several months. i spoke to the pboc, chinese central bank's chief economist, who said investor concerns have largely been overblown. >> investors are overly nervous about various aspects of the chinese economy. but if you look at the more fundamental aspect of real economy, for example, the consumption, it's actually quite robust. what i saw recent statistics is

stephen: more business headlines, the imf has warned the vulnerability of the global economy, calling on the biggest economies to boost growth amid turmoil in the financial market. detailsis set to give at a meeting in shanghai that begins tomorrow. toconn says it is not ready sign a takeover plan with sharp. they announced they were postponing the four point $4 billion deal until they have a satisfactory understanding of the situation. apple working on ways to strengthen the encryption of its icloud services. it would make it impossible for companies to comply with encryptedo unlock phones. the fbi has uncovered a massive e-mail scam involving chief executives. stephen: there has been a sharp increase in ceo fraud involving some 12,000 victims. the scam involves ticking someone a fake e-mail account for chief executive, which tells employees to send money to an overseas bank account. the fbi says some firms have lost as much as $90 million because of this. the losses altogether add up to some 800 million euros. check beforee sending your bank account info. claire: thank you very much

maybe not as high as the imf believed.ut i am not that worried. >> you are managing a lot of assets for a lot of people. what are you hearing from them, and what are you telling them? >> it has been so fast, this correction that we are in the middle of, and in many ways, that is more helpful and more cathartic rather than if it were slow and painful. and i think that is allowing people to hope that it is just an asset price recovery and not something more to do that has to involve the economy, and the can actually be quite helpful in some of all of the cash on the sidelines in many portfolios. and as you begin to find better entry levels, perhaps we can get back to normal. but what we don't hear is our clients panicking. you got some money coming out. not a lot of money jumping in at any particular point in time. >> how much of this is china, how much of this is oil, and how much is this something else? mary: there are a lot of conversations here about china and oil. our those two things alone are -- i does two things alon

o change is expected that the imf, however. christine lagarde is the only candidate for her succession. she has the backing of several countries as well as the u.s. treasury. chasing after migrant smugglers .n the aegean sea three warships are being deployed. turkey is trying to the suspected smugglers involved in the death of -- trying to double suspected smugglers in the death of aylan kurdi last september. time now for the business news with kate moody. kate: global growth -- fears about global growth are continuing to wreak havoc on the market around the world. we are going to go through the numbers and take a look at what's behind them. in asia, the hang seng fell nearly 4%. the nikkei fell nearly 2%. the dax losing nearly 3%. 2%. ftse, an we saw sharper losses in other parts of europe as well. fell as much as 6% earlier in the session, recovering a bit at the close. wall street has been paring back , ony very sharp gains reports of the opec cartel may be getting closer to an agreement to cut or cap oil production that wou

overtime, the imf has a problem.never looks like an immediate catastrophe, but there is a slow burn that is dangerous. you can get governments to work together like in 2008. they are trying to manufacture an emergency. the output gap, the longer it stays there, do we see a permanent shift lower? is that what they are worried about? >> there is a chicken and egg which is that labor is so cheap that employers are not because it capital is easy to hire cheap labor. to that no solution unless there is economic growth coming from somewhere else. see his writwe large globally here they are not investing as much. and yes, eventually, that takes a whole growth curve and visit down three notches. the -- john: global manufacturing is up. >> are is a slowdown in global trade and that affects the markets more because you actually have companies that make goods that are overrepresented in equity markets. we are seeing the slowdown in global trade affected right now in a last months. they showed the composition of growth in the u.

it is usually a european who gets the role of the head of the imf. her christine lagarde, it was not an easy five years, and it will not be an easy five years ahead. she asked herself whether this .as another 2009 moment she said she does not think so. when she talks about 2009, that is the major market and financial turmoil that the world saw. there will be plenty in her inbox, the likes of the debt crisis increase, financial reform in ukraine, and general market turmoil around the world. today in washington, she seemed confident going into the next five years ahead. >> thank you so much for bringing us up to speed from washington. group called the kurdistan freedom hawks said it was behind the deadly bombing in a turkish capital on wednesday. the turkish president says eu u.s.-supplied weapons were used to carry out the attack in which 28 people were killed. let's get the latest. shell, and ypg militia positions are targeted here the goal is to stop the kurdish group from taken the town, the last stronghold of turkish-backed current rebels north of

echer'rtorathfl wt, ali yr lest noyo g yothinliakhe die t usper poli f hoe turefit weberehoittl wouget wey nt imf eventtdein fd rtleju f dabofgrreis clilly proven to almorepaicles sot'kein entureinsuper lire>>rod: ziksrnbe cate in wle tr h meen t itit es kajerian >> repor toe 20 bplai oa vith m bihcaaika" bn fit.a mp vehe motoxpts t. cpray ll bee pea vidscato stat los,ne e cli taman f'rtaeconnstoepinemfdeed thient niofrom ju ant wobuardngendie. in a.arepe- sp. r >>orr:ngtoateahtmtseestasn svi bos r ambiansounc sincning ofhana od yo u ameno fulkindrtenert a lingure.eyayulspl k ur w frroatto tesowans u inbe red in ne burch! work on't tzrn y ret g.se ail d stofi boo lirilve ad ei' taroreunctio can be moo goeqy .ter medal c anme askyoisea eh r otakalniathe orulhyon it d lcssts m, stinalnd a whuse k ou seanr $2gs in y,upiswht lier y h vus is already ie u. 1 in 3ingles in te t.ow odocda abvae p s axelr: w eni awerful ofcap a 6ci's rteus an butasc ch phasnle. ngthem rt t t 26 iendegmartyeochunur come g-tites doen supdts ntaidheunhinkor m t ofrs ngto s>>ep thegtoe hi t>> wnumbofeporirement prepo. rorinto

. >> the biggest headline she made was not on the imf view of the global economy, pretty downbeat, an optimistic note she sounded about china addressing the question that every global investor wants to know now. listen. >> china is going through that massive multifaceted transition. and we do not expect a hard lending of china as has been talked about for many years, actually. >> so there she is with a vote of confidence. she went on to talk about how china is trying to transition its economy to what she calls quality and sustainable growth. but did say that the chinese authorities need to be careful when managing and changing their monetary policy and their currency like the weakness that has been spooking global investors this year. that it is, quote, well communicated. just the latest politician to tell the chinese authorities to communicate their policies. but overall, she said this transition should not be a negative, keep in mind the background here, the imf recently announced it is opening the process of appointing a managing director when christine lagarde's term ends this sum

isovso er mingws imatt wh'sexfofaesee the imf lalidelo sbu..we'll tehy some only cro arop iroc t 1ki wet for yo injured an eroo. we he crthe ion. n rn le okt... 'sd g now so people oc nehbhos y theyre yi t mh gyfan s r toar nbod s ra ghbls s tha tngey s an eir tricey 0:sethras, abackn paicmand crgwhic.tvee flil ty y, tm e e w bree,retff ople'shumacomeariovontre ba as bue s leu ppnext. ndhis r isemlegoorng ay u adhiing.emperatus teento ddwihe bitil ki ma co hesses f l s temperat wi cmb tthtod rein md ththe f the ay py throwo ariciraync us ithwe it oks t e stus r ag,kempes in sarderl reman caor su mdao g storm systems heouthroug 7-10 days, ishou k om meus mng e.lot nite wn. in te ar wn d f in oacroh . 35n rs onebelkkyot up comis. anndluck mi up onne t rn urinend rageup a c. nw has.but t earth g deme therinrmatt ome to nth morna li l it and m ?? loind usto nd filiehaesed oloprins fy adethdastof tymarellpped homellart.st stctalame. e owncobeelle two meingsre ion out th atauat. ths tht fe ater ni t b wakior as statstlebratinbi suveparsouhe tduringme. e elme h as theved cente geinupwddaren

meantime, imf chief christine lagarde is warning large capital outflows from china do pose risks to the global economy. in corporate news, apple is fighting back against the u.s. government. the company argues the fbi's demand that it unlock an iphone belonging to one of the san bernardino shooters violates free speech rights and overrides the will of congress. we'll have more on that story in just a bit. and deal or no deal. top executives from sharp and foxconn plan to meet in china today. this is just a day after foxconn put its takeover of the japanese electronics giant on hold, saying it wouldn't sign the deal due to previously undisclosed liability. sharp shares down about 11.59%. despite that move, asia is green. >> it is indeed. that's not quite eradicating the big decline in shanghai yesterday. the other big story this morning, the republican slug fest. the dplgloves coming off last night. ted cruz and marco rubio attacking gop presidential front runner donald trump. >> he hired workers from poland, and he had to pay $1 million in a judgment. >> that's wrong. totally wrong. >>

i spoke with the president last week at the imf in washington, d.c.re is a law in the books in colombia requiring a balanced budget. do you believe that will need to be suspended, as you make this transition? >> on the contrary. i have made a commitment to myself. i will be very disciplined in our fiscal administration. my government, the first amendment to the constitution includeroposed was to the concept of fiscal responsibility. this was a big discussion strange foras very everybody but i see that as a way to protect the rights of citizens. an economic crisis affects the citizens. after that, we approved a fiscal rule that is a way to maintain discipline. we have been complying with the path, and will continue to comply for the future. brendan: you are an economist, so looking at the balance of trade, it seems there is some adjustment in the economy. the highest negative balance that you have ever had. u.s., -1.9 billion dollars. how do you make that adjustment? you have a healthy middle class that is consuming. ultimately, this is not sustainable

talking to countries like nigeria, the imf will come to countries,of some but what's going to happen is they are just going to extend the agony. they will keep oil production higher for longer. because of the low interest rates, people can sustain bad business models for longer and the imf is going to do it here. these are all reasons why these markets are going to be in havoc for a. . -- a period. central banks are look much less effective than they have been. ,avid: that was axel merk speaking earlier today on bloomberg television. coming up, following the selloff and headed to break, session lows for the major indexes, 3% down. the s&p 500 down 2.5%. 45 points. the dow at about 2.25%, 336 points. more markets after the break. ♪ david: stocks are selling off and gateway and the nasdaq is leading, down three point 1%. abby doolittle's live in the marketplace. that's a big selloff, the nasdaq is less than 1% away from entering of their market, feels like a waiting game at this point. following garishly in the biotech sector, they've entered thethird bear market from july 2015 record

i wonder what he makes of the imf comments.ened to the interview and said g-20 needs to take bold action on global growth. it is fascinating because you have half of the world leaders saying we are not in crisis, the market is doing their thing. and the central banks are looking at currencies. tom: i'm glad you bring that up. in the last 24-48 hours, once again, markets are telling officials what to do. i totally disagree with that assessment. riskts are discounting for and there is no question that the risk is increasing. as sam fisher would say, the uncertainties abound out there. up 26.ures are a constructive tone to the market. willrow, robert hormats join us in the 5:00 hour. this is "bloomberg surveillance." ♪ >> volatility returns to china. chinese stocks fall the most in a month as finance ministers prepare to meet in shanghai. investors are loving lloyd's today. payment forpecial pay holders. tim cook is not backing down. the apple ceo says unlocking the iphone would be bad for all of america. welcome to bloomberg

in these situations, it that yoully the imf run two.the case of venezuela, this is really going to be a political question. the right thing is often politically very difficult to do in a country like venezuela where you have this very serious problem between the president and the new congress. francine: what are the dynamics -- tom: what are the dynamics of stable oil prices or if we were than $30, what does this do to the beleaguered nations? down would be leg another heavy straw on the camel's back. there is a major adjustment that needs to be made. it is not just about the lifting cost with the profitability, it is really about the fiscal breakeven. budgets in many oil exporting onntries have become hooked a much richer price in oil. there is an adjustment that has started and is underway. if we go down from here -- francine: they can figure it out, right? will it ever happen? or do they just want to squeeze everyone else out? arnab: it is their stated intention to squeeze a lot of people out. i think coordinating and enforcing a pro

maybe not as high as the imf would believe. i am not worried. you're are managing a lot of assets for a lot of people. what are you telling them? this correction that we're in the middle of, it is more cathartic than it were slow and painful. we hope that it is just an asset price recovery and not something more to do with the fundamentals of the economy. that can actually be quite helpful. as you begin to find other entry levels, perhaps it can get back to more normal. we don't hear our clients panicking. not a lot of money jumping in. at any particular point in time. much of this is china, how much is oil, and how much is something else? >> there's a lot of talk, oil, is it's going to cause the next global recession? but i don't think it will cause another global recession. >> a few weeks ago, he said that we should be much more careful because there is a risk of repeating what happened in 2008. 2008, we are repeating. it was a time of financial crisis and deadlock -- bear market. we're the same as you today. thethe source of 2008.brium in the

ryan: the imf says growth will come in at 1.2% but the imf's assumption when they came out with the oilere higher than they are. it is an economy that is extremely dependent on the oil price and they have to do what they can, where they cam. it is not one magic lever that these commodity-based economies have that they can use to make things right at home so they are spending their reserves to the tune of $115 billion last year. they will be out of reserves in five years time if they keep up at that pace. prices,e raising fuel they are decreasing spending, and yet the imf says they will have a 14% budget deficit, their widest in a couple of decades. christmas, every other question seem to be is the saudi peg going to go. marvin: not as much as before christmas, but it is still definitely a hot topic. i think that is unlikely to be an issue for this year. -- saudithat the sardi monarchy is ruled by conservatism. they do not gain a lot highlighting the exchange rate a go. when your main export is oil and denominated in dollars, it does not actually help a lot. result, particularly given th

people really noticed when it was christine lagarde from -- >> gerri: right, imf. >> from the imf.n they were protesting against her, they were like, really? who is allowed to speak? gerri: my knee-jerk reaction is this has to be unconstitutional, right? >> well, yeah, at a public college. at a private college they're not bound by the constitution, but you've got to call out the ridiculousness of the university -- gerri: where does this come from? you say this is going all over the country and it's on university campuses. are these kids just so scared of hearing a different point of view, so fragile that they possibly couldn't hear anything else? >> i honestly think it's the fault of administrators. they've been teaching students that they have a right not just to not be offended, but now it's moved to the right where you have the right to be agreed with if we like your politics. and they're doing students the disservice of saying, by the way, you might be damaged if you hear opinions you disagree with. gerri: but campuses were always the place where you could have a free and open

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 reports warns that the resilience of the global economy is weakening in the face of market instabilities, the g20 must make a coor natesed effort to support demand using available fiscal space to boost public investment. this is in addition to implementing a strategy of using infrastructure investment to boost the over you'll con me by 2%. also urging the g20 to consider a new framework for providing emergency financial support to oil producing countries, which have been hit by low oil prices, and emerging countries, which are facing outflows of cash. the meeting begins on friday. >> officials from japan's transport ministry and a private firm have carried out the first test of using a drone to deliver daily necessities to elderly people in rural areas. the experiment took place in southwest japan. they want the drone technology to spur regional growth. bread, milk, boiled eggs. flight path kept it at least 30 meters away from people, in line with aviation law. >> it took the drone about four minutes to reach its destination, some 500 meters away. it delivered the goods successfully with

meantime, the imf has called for members of the g-20 to prepare a coordinated stimulus plan. this comes as g-20 leaders meet in shanghai, where much of the focus will be on the health of the chinese economy. >> investors are overly nervous about various aspects of the chinese economy. if you look at the more fundamental aspect, consumption, it's quite robust. what i saw in recent statistics is during the change in the new year, retail sales were growing 11%, which is a quite impressive number. >> here in the studio at the top of the hour, we're joined by the head of market strategy at swiss bank. thank you for coming in to visit with us. i think what the imf is saying to the g-20 leaders is just maybe talk amongst yourselves about the potential for some type of coordinated action if need be, if we see more volatility. >> correct. >> or am i reading it wrong? >> no, i think you're reading it correctly. the likelihood of a coordinated action is significantly low. they have to find a consensus among 20 nations about missed valuations within the fx market. the g-20 really talks i

$3 billion total has been requested from the world bank with approval subject top endorsement by the imf. julia caught up with the nigerian vice president in davos. she asked him about opec's importance. >> we're not saying that opec is irrelevant or anything. but there's a general atmosphere of fair out there, and everyone seems to be rushing their own particular interests. >> well, joining us to talk more about nigeria is the senior vice president at taneo intelligence. welcome back. good to see you. the 3.5 billion requested now, many are categorizing it as emergency loans. yet, the finance minister, she hangs on to her line that it's not emergency loans, it's just the best way of financing nigeria's needs. >> well, i mean, here we're talking about sort of how do you color a fairly bad story. we do know that the nigerian government's fiscal resources have been hit as a result of the oil price drop. but is this actually a surprise? not really. they made it quite clear as far back as december that they were going to borrow close to $9.4 billion in total, a combination of domestic borrow

the imf has canceled some of the government's requests.they still have not gotten this problem fixed. we are still in a position in greece where they are having to negotiate every last little bit. you wonder whether angela merkel, who moved heaven and earth last time around to make sure greece remained in the ozone, whether she will try to make those terms is eager. manus: in terms of china and in terms of post g-20 -- it is interesting. the number of times they are delivering continuity in terms of maneuvering with the yuan is dissipating. it are trying to wrong foot the market in terms of keeping at guessing. how does china fit into your story? guy: china is saturday. you move forward to saturday and you get these targets. is 6.5%-7%. guy: this will be a focus during the front end of the week with these big drops. i am curious why this is happening. do you think that is the g-20? or is it the lack of stimulus? i would be surprised if that was the case. number,s the payroll's i think the market will have a number of big stories to focus o

the imf chief earlier was talking about restructuring. that is going to be painful in terms of manufacturing to the service industry, and changing the economy for 1.5 billion people is not going to be easy. she also mentioned vulnerability. not this time, but slow growth in emerging markets, with possible war in syria. there are lots of hurdles ahead. china is just one of them. how are the markets responding, will you will: the hope is that something can be published. in the in europe are green with oil and gas being top performers. it should be said that rbs is at 10%, after the bank reported massive losses for the eighth year in a row. the e.u. tries to contain ongoing protests by angry livestock farmers. will: this has been going on for about a month in france. farmers say their profits are being squeezed by low prices. in a bid to get out of the crisis, the french government is putting pressure on the country's supermarket industry over pricing practices. the top agricultural official has more. >> they are targeting france's biggest s

. >> the economic reforms must be carried out on the basis of the dates agreed with the imf. and there must be a policy driven by the principal of zero tolerance for corruption. reporter: and the inability to an act reforms threatens the minsk agreement arbitrated by germany and france one year ago. >> there is still a great risk. that is why we are clearly telling the separatists in russia that the pressure must stop. because, in addition to a stable security situation, a political outlook is needed. and this is where the snag lies. the people in this transition zone have not been able to elect representatives democratically. for this to happen, kiev must pass an election law that opposition is growing among ukrainians. >> the minsk agreement practically legalizes the crimes against the separatists. >> voting in the occupied areas makes no sense at all. reporter: for now, that is what the deal calls for. brent: are you in the mood for a hazardous snack? there's one story in particular to get your teeth into, but you don't want to choke. guest: on chocolate from mars -- they

just to put that 2.5% growth figure into context, the imf is at around 3%. that's a pretty bear uish view the world. though, citi often does have a bearish view of the world. >> indeed. but the bottom line is it's another big bank saying where is the bright spot in the world economy. they struggle to find it right now. another busy day of economic data, earnings, and fed speak. weekly jobless claims are out along with durable goods. best buy, campbell soup, kohl's, and sears holding results before the opening bell. after the close, we'll hear from gap and kraft heinz. let's get a trader's perspective on the day ahead. brian kelly joins us on the cnbc newsline. very good morning to you. thanks for getting up early with us. brian, we assumed overnight all the focus would be on oil. but china really front and center again. big declines for china. it doesn't seem to be contagious this morning. the west managing to shrug that off. the line with brian -- >> sounds like he's in a wind tunnel. >> if he comes back to us, we'll get back to him. that's really the lesso

coming up tomorrow on "bloomberg surveillance," we will be joined by the imf director of monetary affairsut dollar-denominated debt, especially in oil-producing countries. that was at -- that is at 10:00 a.m. tomorrow in london. ♪ tom: i guess it is risk-on after what we have seen here. let's get a forex report. 114, as shock, and awe. the elephant in the room, what has not moved, 6.57 on yen. scathing over the lack of activity by the beijing government. let's get to our single best chart. this is a great chart. this is an american chart. we do this after new hampshire as we go on to south carolina. you just said new hamster. it is very unfair to president carter. he never said the phrase with high inflation, and then up we go to a modest malaise of a 10-13-year period. when you look at that, fred, is it a vector up that you have to be in equities, or can you try to figure out when the malaise happens? latter.od luck on the it is hard to time the market. it is hard to know -- this market, by the way, harkening back to earlier parts of the conversation -- this is not somebody we have a rat

realizing i am from imf. today is very much focused on transfer, clearance. a little move to the sme lending. it is still very limited. security. anti-money laundering issues. knowing your customers. on technologies, it could reach so many customers. you have to think about what if the system broke down? the regulators facing challenges, the regulation function back to roughly 15 years ago, never realized. i would say, at this stage, the regulator, this transfer across the continent, it moves dramatically. we think about security issues on the global volatility issues. it is a serious issue. john: to get back to what you said at the beginning, about money transfer and things like that, surely, these are the bare bones of finance. these are not small things. min: if it moves away from thinking, it could be. what would the banking sector do? john: what about you, steve? you have been a disrupter of banks as well as a beneficiary of them for a long time. when you look at these issues of fintech, what do you see? do you see potential for groups like yourself or b

. >> instagram, snap-chat , everybody is posting you got to try itt back imf and limited, i , love to get in lines but these days they make those that i grew up with, the pizza line or the barbecue,kez these make those look like chump change. >> is it going to be worth that? >> baby may be, don't know. >> many of those waiting in line ,ti say that they will be broadway is known as the great the bright lights of. >> said it could be because of the snow and ice,b while disney's movie frozen expected open to open on broadway as musicalpe and 2018, they will also ride theme music the stage production, includinghe classic music as well as some brand-new compositions, the cast has not been determined . you can make a return trip to the land of hogwarts school of witchcraft and wizardry,e a new harry potter book is coming this summer, it was supposed to be a london plane but they have e-book also be available after the plague premieres in july, continues 19 years after the harry potter and the deathly a few schools closed early today because of the weather, we are under a snow advisory, here

e imf the m ys he wa p "is ononho this yoyoyo e e tthays en mebo e ein s s s." "it'one of fhings see t t tatlways happpps to somebody else in ather sta." atateastighthteople e re killed i ithe storms that rollllugh the southeast yeerday. ststl ead: ap updpde on the pueblblzoo' stddition, a a when he'll in youruelecon watat: the field may y dwiling but the stakes are not. repuican candidates gatherer in houstonor their final debateefore the susutuesday vote. and it w intense tonight... with m mco rub throwing the firit verb jab... challenging front runner donald trumumon i iigration. === "if you're g gng to claim thah you' the only one whlifted thisnto the campaigngnhat you knowledge thatou are the onon onenen stage w's be finin fororiring people to rk on yoyo projectctilgay & e questions touched the hobutton topics at h he fram dhe r re...health care...religious freedom...and appointing a n n supre cocot jue. bue primary focus seed to be on each other...the bickering at times...taking over the batete from here...the caidates hit the campaign trail again to the s

with inflation expected to hit 700% this year, according to the imf, venezuela is perhaps the world's worst performing economy. the government has resorted to printing more money, rendering the currency almost completely worthless, and people have to line up for hours to find the most basic of goods. this feels like a country on the brink. having queued all morning, they haven't won the lottery but just a ticket into a shop where there might be eggs or rice. there is little love lost between the opposition-controlled congress and nicolas maduro's government, a government that accuses venezuela's enemies abroad of carrying out economic warfare. >> its north american imperialism. they have no morals or ethics. they have no respect for international law and will do anything to destabilize us. as venezuela's economy falls apart, so does society. the rule of law is consistently undermined people don't feel safe. all of this in what should be one of the richest, most stable countries in the region. laura: testing times in venezuela. you are watching "bbc world news america." still to come,

>>pam moore: the perjures target accounts with imf friend or promoted if terrorist acts that were either also share with answers for support of the terrorist organization in this five-r known dead including attended old baby it collapsed too high rise apartment buildings we have a special look is some of the ads placed in your phone is busted and not worth anything to think again with their offering you to bring your san next to the ball is here in the bay area is ready to party to have a look at this level is expected at tonight's playboy-bash. for four score and seven years ago, our fathers brought forth-- [train horn blares] ... to the continent... [claps] ... a new nation. announcer: don't wait until presidents day to get a better night's sleep. during sleep train's presidents day sale save up to $300 on beautyrest and posturepedic, get three years interest-free financing on tempur-pedic, plus same-day delivery, and sleep train's love your mattress guarantee. sleep train's presidents day sale is on now. ♪ your ticket to a better night's sleep ♪ male announcer:this is the bay area new

book has put up the imf on financial stability. what will it look like? is there stability? systemic risk. if you look in the core europe or the u.s., other major areas, if that is a problem it is more likely to come in emerging markets. the point i would make is the industry is restructuring. the industry is in flux. always difficult adjustments. the europeans have been slower the we have in to make adjustments on the regulatory side and that has made it more difficult. part of the problem that we face a lack of banks is transparency. one thing we have to work on is improving the way financial reporting works to have a sense of what is going on. one issue that is raised with deutsche bank in this recent episode is questions about their derivatives. i don't follow banks -- the challenges is getting a reporting regime where you can get a sense of what the exposures are directly. william: when i was one of the authors of the green book at imf, a problem is why europe can't get capital markets to come in. it is because of a lack of transparency in the firms. there is a saying i

broader eurozone concerns about lack of appetite for austerity, for reforms by the central bank and imf and the commission is a key issue after inconclusive results on elections in spain and portugal. for ireland it is ski, a country which has grown aggressively the last couple of years. appearing to recover fully from the debt of the crisis of 2010 and 2011. the money markets have confidence again in the irish economy. rates for 10-year paper are under 1%. unemployment has gone down from 15% to around 8.5%. so the appetite of the irish people for more austerity, for more reforms, is a key test for not only this country but the broader you're over ozone and european union. >>> now to our election. there was a surprise endorsement on the campaign trail today. new jersey governor and former republican presidential candidate chris christie endorsed the gop front 1er donald trump. >> america needs someone who's going to make sure that hillary clinton doesn't get within ten miles of the white house. donald trump can do it. >> john harwood has been following this latest twist in a wild race.